While gold and precious metals ETFs dominated headlines last year, several lesser-known exchange-traded funds delivered impressive returns on the ASX. Funds tracking the South Korean sharemarket and the burgeoning green metals sector were among the top performers, with defence technology and hydrogen funds also posting significant gains. These results highlight the diverse opportunities available to investors beyond traditional safe-haven assets.
iShares’ MSCI South Korea fund led the pack with an 81 per cent surge, fuelled by rallies in sectors ranging from arms exporters to artificial intelligence and beauty stocks. The fund benefited from the Kospi Index’s strong performance, driven by significant holdings in semiconductor manufacturers like Samsung Electronics and SK Hynix. BetaShares strategist Cameron Gleeson noted that emerging markets offer a potentially cheaper entry point into the AI sector compared to the US, with SK Hynix and Samsung playing vital roles in supplying US data centres.
BetaShares’ Energy Transition Metals ETF, which focuses on companies involved in the shift to a less carbon-intensive economy, experienced a 96 per cent return, benefiting from rising battery mineral prices. The fund includes lithium producers such as PLS, IGO, and Sociedad Química y Minera, as well as copper miners like First Quantum and Teck Resources. Global X investment strategist Marc Jocum attributed the higher valuations to constrained supply, tariff concerns, declining ore grades, and increased merger activity within the sector, highlighting copper’s crucial role in the clean energy transition.
Despite these strong performances, precious metal funds remained prominent. BetaShares’ Global Gold Miners currency-hedged fund topped the charts with a 149 per cent gain, while VanEck’s Gold Miners ETF followed closely with a 139 per cent return. These funds are heavily weighted towards global gold giants like Newmont and Barrick. Conversely, cryptocurrency funds struggled, with VanEck’s bitcoin ETF dropping 14 per cent and Monochrome’s ethereum fund declining 18 per cent.
