
Over the past few years, or even perhaps decades, passive investing has become one of the most widely-implemented strategies when it comes to building wealth on the stock market. ASX investors simply love index funds, with the ease of access, cheap management fees, and hands-off approach resonating with many Australians.
In years gone by, there were only a handful of index funds available to Australian investors, making the choice, if one had decided to go down the index fund road, easy. However, that is not really the case today. If you are searching for index funds on the ASX, there are now an overwhelming number of options one could go for. This situation, whilst good for the discerning investor, can make life tricky for those just wanting a set-and-forget strategy.
With that in mind, today, let’s go through three ASX index funds that I think amount to the best choices our market has to offer a passive investor in 2026.
Three top ASX index funds for passive investing in 2026 and beyond
First up, we have the BetaShares Australia 300 ETF (ASX: A300). This ASX index fund tracks the largest 300 stocks listed on the Australian share market. That includes everything from Commonwealth Bank of Australia (ASX: CBA) and Telstra Group Ltd (ASX: TLS) to Coles Group Ltd (ASX: COL) and Ampol Ltd (ASX: ALD).
Like most index funds (and the other two we’ll discuss in a moment), this fund is weighted by market capitalisation. That means the larger the company, the larger its slice of the index fund pie.
Full disclosure, I own an S&P/ASX 300 Index (ASX: XKO) fund, but it’s not A300. This fund only launched in August of last year, and I have held the Vanguard Australian Shares Index ETF (ASX: VAS) for many years. But A300 would be my choice for new investors, simply because it charges a lower management fee of 0.04% per annum.
Our next fund worth considering is the iShares S&P 500 ETF (ASX: IVV). This fund is similar in nature to A300. However, instead of holding the ASX’s 300 largest stocks, it holds the 500 largest companies in the American markets. That includes big tech titans like Nvidia, Tesla, Amazon, and Microsoft, as well as other American companies such as ExxonMobil, Coca-Cola, Walmart, and General Motors.
I think most ASX investors will benefit from expanding their portfolios beyond Australia’s borders, and IVV holds many of the world’s best companies. It also charges a management fee of 0.04% per annum.
Last but not least
Finally, investors may wish to consider the Vanguard MSCI Index International Shares ETF (ASX: VGS). As its name implies, this ASX index fund represents access to a number of international stock markets. That includes the US, but also Britain, Canada, Japan, Spain, Israel, Singapore, and many others. In addition to IVV’s top holdings (which VGS largely shares), this fund’s portfolio includes stocks such as Nestle, Toyota, AstraZeneca, and Shell.
If you wanted a US-centric index fund that also grants exposure to a diversified supplementation of advanced economies’ markets, VGS is a fabulous option to consider. This ETF charges a management fee of 0.18% per annum.
The post What are the ASX’s top 3 index funds for passive investing? appeared first on The Motley Fool Australia.
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More reading
- 3 of the best ASX ETFs for beginner investors in 2026
- 5 ASX ETFs to buy in April and hold until 2036
- A simple 3-ETF portfolio I’d use to build long-term wealth
- Why this looks like a great time to buy the iShares S&P 500 ETF (IVV)
- Own ASX VAS or other Vanguard ETFs? Dividends just announced
Motley Fool contributor Sebastian Bowen has positions in Amazon, Coca-Cola, Microsoft, and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, AstraZeneca Plc, Microsoft, Nvidia, Tesla, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended General Motors and Nestlé. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Amazon, Microsoft, Nvidia, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.








