Last month's top ETF became June's worst performer

Sydney, 15 July 2026: Analysis by online wealth management platform InvestSMART, shows that June's performance tables highlighted the risk of theme chasing. The Betashares Space Industry ETF (ASX: RCKT) was the top-performing ETF in May with a return of more than 30%, becoming the weakest performer in June, falling 33.5%. 

InvestSMART CEO Ron Hodge said the reversal was a useful reminder that more ETF choice did not automatically lead to better results. 

"There has been much fanfare around the record number of ETFs admitted to the ASX over the past 12 months, giving investors more ways to access markets, sectors and investment themes," Mr Hodge said. 

"But more choice can also be confusing and encourage investors to chase hot themes or be swayed by marketing, rather than focusing on a clear long-term investment strategy. 

"Last month's hero can quickly become this month's headache." 

ETF market growth and inflows 

The Australian ETF market grew to $361.6 billion in June, up $8.1 billion, or 2.3%, over the month. 

The number of ASX-listed ETFs rose from 451 in May to 458 in June, 70 more than a year earlier. 

Net ETF inflows totalled $3.3 billion, down from $5.3 billion in May. Global equities attracted the largest inflows at $1.7 billion, followed by Australian equities at $993 million and fixed income at $703 million. 

"Investors are still adding broad global exposure, while also showing interest in income and defensive assets," Mr Hodge said. 

"Flows into fixed income and high-dividend ETFs suggest some investors are placing more weight on income, capital preservation and after-tax outcomes as they work through the practical implications of upcoming CGT changes. 

"That is understandable, but investors still need to look at the whole portfolio. Income, growth and defensive assets all have a role to play, but the mix needs to match the investor's goals, timeframe and risk profile." 

June performance tables 

June's best performers were led by biotech, cybersecurity and semiconductors. 

The weakest performers were space, lithium and silver. 

Mr Hodge said thematic ETFs could be useful for targeted exposure, but should not be confused with a long-term investment plan. 

"Some investors buy thematic ETFs hoping for quick gains, then sell when the value falls. That is the opposite of long-term investing." 

Commodities lose their shine 

Commodities were the standout weak spot in June, falling 12.2% over the month and investors pulling $288 million from the category. Gold ETFs were among the casualties, with Global X Physical Gold (ASX: GOLD) down 7.96% for the month. 

Crypto ETFs fell slightly further in market-size terms, down 13.5% in June. However, the flow data tells a different story; crypto ETFs still attracted $10 million of net inflows, suggesting the decline was largely driven by market performance rather than investors heading for the exits. 

Despite the June pullback, commodities remain one of the stronger categories over the past year, with assets still up 34.5% year-on-year. The data shows how quickly sentiment can shift in more volatile parts of the ETF market, and why investors should be careful about chasing strong recent returns without understanding the risks. 

"Commodities can play a role in a diversified portfolio, but investors should not treat them as a shortcut to safety. They can move sharply and are not defensive in the same way as cash or high-quality bonds." 

"A good portfolio usually starts with the basics: broad diversification, sensible fees and an asset mix that will grow when markets are up and cushion the falls when markets are volatile," Mr Hodge said.