The Australian economy has a unique profile weighted towards specific sectors. One great way to capture these is by investing in thematic ASX ETFs.
When you look at the S&P/ASX 200 Index (ASX: XJO), you notice it is heavily weighted towards sectors like financials (big banks) and materials/resource giants.
In fact, these two sectors make up more than half of the ASX 200 in terms of market cap.
While it's important to have a diversified portfolio, investing in these markets can also capture strong returns when they outperform.
If you are looking to ride the returns of Australia's largest sectors, here are some thematic ASX ETFs to consider.
This ASX ETF offers exposure to the largest ASX-listed companies in the resources sector, including BHP, Rio Tinto, Woodside Petroleum and more.
Investors should be aware it is heavily weighted towards BHP Group (ASX: BHP) which makes up 33% of the fund.
In total, it is made up of 43 holdings.
A bet on Australian resources over the last 10 years has proved a strong investment.
This ASX ETF is up more than 200% since January 2016.
This includes a rise of more than 30% in the last 12 months.
Australian banks make up a massive part of the economy thanks to the dominance of the big four.
This ASX ETF from VanEck offers a portfolio of ASX-listed banks and financial institutions in one trade.
The fund is made up of 7 holdings:
The fund has an almost equal weighting of 20% each for the big four banks.
Essentially, these four make up 80% of the fund, with Macquarie representing a 17.5% weighting and the final two, smaller banks combining for a 2.6% weighting.
The fund has risen 66% in the last 5 years.
While real estate isn't one of the biggest sectors on the ASX, it remains a vital component of the Australian economy due to its role in investment, employment, and housing.
This ASX ETF from VanEck gives investors exposure to a diversified portfolio of Australian REITs.
A real estate investment trust (REIT) is a company that owns and operates property assets that typically produce income.
This fund from VanEck is made up of 13 holdings, and includes a 4% dividend yield.
It has risen 13% over the last year.
The post Best ASX ETFs to target winning Aussie sectors in 2026 appeared first on The Motley Fool Australia.
Motley Fool contributor Aaron Bell has positions in BHP Group and National Australia Bank. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank and Macquarie Group. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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