A closer look at four popular ETFs

ETFs were a common theme ahead of Ask the Analyst – Christmas Special, reflecting how investors are thinking about positioning into 2026.

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All of these ETFs are pretty vanilla. They do what they say on the box. All low-cost and liquid. No problem with any of them.

That doesn’t mean I want to own them.

This is where ETFs often get misunderstood. Just because something is simple and popular doesn’t automatically make it attractive at the current price or at this point in the cycle. Let’s run through them.

 

NDQ – Nasdaq exposure and the AI bubble question

Buy the bubble. Be the bubble! Not for me!

I believe that the Nasdaq will underperform as the chickens come home to roost, with the AI bubble not bursting, but the air just leaking out as the arms race continues. AI is not Metaverse, but it still has a long way to go before the ROI is justified. The jury is still out. Hence all the bubble talk.

I remember when Mark Zuckerberg spent over US$100bn on the Metaverse. Just because you can, doesn’t mean to say you should! Remember that, Mark! A place where everyone is an Avatar and everything is watched and monitored, and you become an easy target for advertisers.

AI is not Metaverse, but there are similarities – massive spending, huge expectations, and a market pricing in perfection. That rarely ends well.

For now, NDQ isn’t somewhere I want to be.

 

VAS – Australian shares and the bank problem

VAS gives you broad exposure to the Australian share market. Again, it does what it says on the box.

But just over 20% of it is tied up in the big four banks. Low growth. Low dividend. Competitive, with a stagnant market.

Maybe better value elsewhere perhaps.

That doesn’t mean VAS is “bad”. It just means you need to be realistic about what you’re buying and what’s actually driving returns.

 

ASIA – Asian tech and the limits of familiarity

If you have a view on Asian Tigers, then the ASIA ETF is a great place to be. I have to say I know my limitations.

Apart from looking at a chart and reading stuff on the great Asian AI opportunities, I do not really follow Asian Tigers. Samsung, I know, because I have one of their televisions! SK Hynix? TSMC?

I have enough problems trying to cover the little old Australian market, let alone the Taiwan semi market. So, one that requires more research than just looking at a chart, I reckon.

But hey, don’t let me stop you!

 

QUAL – “my precious” (but not quite what it seems)

QUAL has a loyal following. Around $8bn invested.

Not really international quality – 76% US-focused. Not much international exposure.

I know Andrew Wielandt (DP Wealth Advisory) always says it is “the one”. His precious. The “go to” for any investor. But looking at its performance over 2025, it has hardly been stunning.

Long-term, it has done well. Since inception, it is up 16.05% against the benchmark of 16.34%. Passive ETFs will always underperform their benchmark. It is a given that the management fee will always eat into returns. Not much, but they will.

This is a good place to start any investment journey. It does what it says on the box, but it is very US-focused. If the US sneezes, and we all say “Bless you” out loud, this one will suffer!

 

Final thought

ETFs are useful tools. They’re not magic. They simplify access, not decision-making.

Before buying any ETF, ask yourself what’s driving the return, where the risk really sits, and whether the story still stacks up at today’s price.

That’s the real work – and it’s the part most people skip.