Stockspot reveals 13 ETFs outperforming savings accounts in a higher rate era

Online investment platform Stockspot has compiled a list of 13 ETFs which have generated returns above 25% in the past year
The Vanguard Australian Property ETF returned above 44%, while gold ETFs surged in line with the price of the precious metal
Stockspot has observed a strong shift among self-directed investors from individual shares and actively managed funds towards ETFs

While interest rates might be at their highest level in 12 years in Australia, with the official cash rate set by the Reserve Bank of Australia (RBA) at 4.35%, online investment platform Stockspot has compiled a list of 13 exchange traded funds (ETFs) to have well and truly outperformed the average savings account in the past 12 months.

Stockspot founder and CEO Chris Brycki said that, based on the latest RBA data, if you had your money in a savings account last year, you would have earned on average 3.5% in interest.

But in comparison, the following 13 investments included in portfolios of Stockspot, which which builds custom portfolios using ETFs, generated returns of more than 25% in past 12 months to September 30.

1. Vanguard Australian Property ETF (ASX:VAP): 44.39% return

Brycki said VAP provided exposure to property securities across the retail, office, industrial, and diversified sectors.

“Over the past year, the ETF has risen due to expectations of falling interest rates from 2025 and increasing optimism that AI will drive significant growth in data centres and other infrastructure over the coming decade,” he said.

VAP is part of a Stockspot theme portfolio designed to provide investors with exposure to specific sectors or themes that align with their market interests.

2. VanEck Vectors Gold Miners ETF (ASX:GDX): 41.5% return

Gold has surged in 2024, reaching all-time highs, driven by global economic uncertainty.

Brycki said that with the surge in gold prices, companies in the gold mining sector had seen substantial gains, making GDX one of the top performers.

“This ETF benefited from strong demand for gold amid market uncertainty, boosting gold mining stocks.”

GDX is part of one of Stockspot’s portfolios aiming to offer higher inflation protection.

3. Global X Physical Gold (ASX:GOLD): 32.32% return

Brycki said GOLD directly tracked the price of physical gold in Australian dollars, benefiting from the sustained rally in gold prices, and contributing significantly to portfolio returns for its investors.

GOLD is held across all Stockspot portfolio offerings.

4. BetaShares AsiaTech Tigers ETF (ASX:ASIA): 30.24% return

The rapid growth of Asia’s technology sector, particularly in markets like China, Taiwan, and South Korea, propelled ASIA to high returns, noted Brycki.

“The ETF provides exposure to leading tech giants, which have thrived due to their dominance in AI, cloud computing, and e-commerce.”

ASIA is also part of a Stockspot theme portfolio.

5. Global X Physical Silver ETF (ASX:ETPMAG): 27.68% return

Brycki said silver’s resurgence in 2024, fuelled by demand in the solar and electric vehicle industries, drove ETPMAG’s strong performance.

“Industrial use of silver, especially for photovoltaics and EV components, has grown significantly, positioning silver as one of the year’s best-performing assets.”

ETPMAG is part of a Stockspot inflation protection portfolio.

6. iShares Global 100 ETF (ASX:IOO): 26.6% return

Brycki said IOO captured the performance of the world’s largest multinationals, including top technology firms like Apple, Amazon, and NVIDIA.

“The technology sector’s continued strength, bolstered by advancements in AI, contributed to this ETF’s robust returns.”

IOO is part of Stockspot’s core portfolios.

7. iShares Asia 50 ETF (ASX:IAA): 26.51% return

Brycki said IAA tracked 50 of the largest companies across Asia with major exposures in China, Hong Kong, and South Korea.

“The region’s rapid technological development and strong economic fundamentals have been key drivers of growth.”

IAA is part of a Stockspot theme portfolio.

8. BetaShares NASDAQ 100 ETF (ASX:NDQ): 26.44% return

Brycki said that NDQ, which was heavily exposed to tech giants like Microsoft, Tesla, and Netflix, had benefitted from the sector’s explosive growth in AI, cloud computing, and high-growth industries.

Tech innovation remained a key factor in the ETF’s success.

NDQ is part of a Stockspot theme portfolio.

9. VanEck Vectors MSCI International Sustainable Equity ETF (ASX:ESGI): 26.02% return

Brycki said ESGI invested in companies with strong ESG credentials, which continued to see growing interest from investors focused on sustainability.

“High-performing ESG stocks were key contributors to this ETF’s impressive returns.”

ESGI is part of Stockspot’s sustainable portfolios.

10. Vanguard Global ex-Australia Real Estate ETF (ASX:REIT): 25.86% return

Brycki said REIT provided broad exposure to global property markets, hedged to Australian dollars.

“The ETF’s geographic diversification and focus on developed markets like the US, Europe, and Japan helped it outperform in a volatile real estate environment.”

REIT is part of the Stockspot income portfolio.

11. iShares S&P 500 ETF (ASX:IVV): 25.67% return

Brycki said IVV tracked the S&P 500, capturing the strength of the largest US companies.

“Strong earnings from US tech, healthcare, and consumer discretionary sectors helped drive this ETF’s robust performance.”

IVV is part of a Stockspot theme portfolio.

12. Russell Investments Australian Responsible Investment ETF (ASX:RARI): 25.36% return

Brycki said RARI invested in Australian companies with positive ESG characteristics. The growing focus on responsible investment has attracted strong investor interest, contributing to its notable performance.

RARI is part of the Stockspot sustainable portfolios.

13. VanEck Vectors FTSE Global Infrastructure ETF (IFRA): 25.13% return

Brycki said IFRA provided exposure to global infrastructure, which offers inflation-linked and regulated income.

“The ETF’s diversification across infrastructure assets, including energy and utilities, has delivered strong returns in an inflationary environment.”

IFRA is also part of Stockspot theme and inflation portfolios.

Strong diversified portfolio returns

Brycki said Stockspot’s portfolio performance for the 12 months to September 30 2024 was among its historical best, with both the Stockspot model portfolios and sustainable portfolios delivering strong returns.

The five core options returned between 16.2% and 21.9% after fees, while the Sustainable options posted returns ranging from 17.3% to 23.1%.

The standout performer was its gold portfolio, delivering 32.2% return for the year.

“All portfolios held a 14.8% allocation to gold, which contributed 4.8% to each portfolio’s overall return,” Brycki said.

Aussie investors turning to ETFs

Brycki said the past 12 months had seen remarkable growth in the Australian ETF industry. According to BetaShares the Australian ETF Industry reached a new all-time high in assets under management of $226.9bn in September.

“Over the last decade, the market has expanded tenfold, and we continue to observe a strong shift among self-directed investors from individual shares and actively managed funds towards ETFs,” Brycki said.

“At Stockspot, we’ve recommended ETFs to our clients from day one, and we’ve witnessed significant changes in the market.

“Investors today are increasingly opting for ETFs due to their simplicity, transparency, and cost-efficiency, moving away from traditional stock-picking and higher-fee managed funds.

Looking ahead, Brycki said the Australian ETF market was poised for explosive growth and anticipated it reaching $500bn by June 2029, driven by a 20% annual growth rate – similar to the rapid expansion seen in Canada, where the ETF market more than doubled from $200bn in 2019 to $500bn by 2024.

“If this trajectory continues, the Australian ETF market could hit $800bn by 2034,” he said.

Brycki added that recent projections from an EY report reinforced this outlook, estimating that the Australian ETF market would reach $230bn by the end of 2024 and grow by 150% over the next five years to $500bn by 2029.

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