10 investment ideas for the rest of 2025

The past 12 months have felt a little like surfing a choppy break – smooth runs but plenty of unpredictable swells.

But in spite of all the headlines and risks, markets seemed to have shrugged it off. The ASX 200 finished FY25 up 10.2% while the S&P 500 recorded a 15%+ gain. Two rate cuts from the RBA wouldn’t have hurt either.

Now, as a new financial year dawns, we’ve asked the Betashares investment team to share their best ideas for the next six months. Their ideas span four major asset classes and two secular themes – and are all available on Betashares Direct.

While the past doesn’t predict the future, these ideas might just inspire your next investment.

Unless otherwise stated, all fund returns are shown as at 30 June 2025, net of fees. Past performance is not indicative of future returns.

Australian equities

If the ASX 200’s most recent 12 months could be summed up in three letters, chances are it would be “CBA”.

Over the last 12 months to 30 June 2025, Bloomberg data revealed that CBA alone accounted for 33% of the S&P/ASX 200’s total return¹.

Although calling an end to Australia’s big banks’ rally has been a fool’s game thus far, investors would be wise to continue to diversify their portfolios away from the big banks.

One way to achieve this is with Australian Quality ETF (ASX: AQLT). AQLT aims to track an index that holds 40 high-quality companies. AQLT has returned 12.39% p.a. since its inception on 4 April 2022 and has outperformed the S&P/ASX 200 over that same period despite holding relatively fewer CBA shares.

At the other end of the market, there’s evidence to suggest Australian small caps may now be primed for a reversal after a tough run. They’re trading at a steep discount to large caps, and improving economic conditions and corporate fundamentals could support a turnaround.

One way to invest in this space is Australian Small Companies Select ETF (ASX: SMLL). SMLL aims to track an index consisting of 50-100 high-quality small cap companies. Since its inception on 7 April 2017, SMLL has delivered a total return of 6.52% p.a.

US equities

Despite the policy disruptions and geopolitical tensions, US companies continue to report robust earnings.

Most notably, the Magnificent Seven tech stocks collectively added around US$25 billion in nominal earnings for the 12 months to Q1 2025². That’s a mammoth number especially when you consider how large these companies already are. An easy way to access these companies is through the Nasdaq 100 ETF (ASX: NDQ) and its currency hedged version, Betashares Nasdaq 100 Currency Hedged ETF (ASX: HNDQ).³ Currency hedging helps protect your investment returns from the ups and downs of foreign exchange rates.

NDQ provides Australian investors with exposure to some of the US’ largest non-financial companies including the ‘Magnificent 7’. Over the past 10 years, it has returned 20.1% p.a. on average.

Outside the Magnificent Seven, a broadening of US corporate earnings and performance is also occurring. Sectors like industrials, utilities and financials are all experiencing improved earnings growth. They may also benefit from the Trump administration’s focus on tax cuts and deregulation⁴.

A way to access this theme is through the S&P 500 Equal Weight ETF (ASX: QUS) and its currency hedged version, Betashares S&P 500 Equal Weight Currency Hedged ETF (ASX: HQUS).⁵ QUS provides investors with broader exposure to these value-aligned sectors while its equal-weight approach allows investors to diversify away from the highly valued technology companies. Currency hedging helps protect your investment returns from the ups and downs of foreign exchange rates.

To learn more about equal-weight strategies, you can click here. To learn more about currency hedging, you can click here.

Global ex-US equities

While the US has led the AI revolution, Asia’s tech giants are quickly emerging as a formidable challenger. Companies like Alibaba, Tencent and TSMC have become critical to the broader semiconductor supply chain, including chip foundries and memory chip manufacturers.

A convenient way to access all these names and more is through the Asia Technology Tigers ETF (ASX: ASIA). ASIA, which has returned 11.87% p.a. since its inception on 18 September 2018, could also be a suitable complement to investors with US technology exposure.

Individually, India has one of the most compelling long-term structural growth stories around. Apart from its strong economic fundamentals, the growing uptake of regular, automated investing (known in India as the Systematic Investment Plan system) among young people has provided a strong foundation for valuations in that market.

One way to access this investment theme is through India Quality ETF (ASX: IIND). IIND gives investors access to the highest quality Indian companies. Since its inception on 2 August 2019, IIND has delivered a total return of 9.15% p.a. Please note that fund returns are at 30 June 2025 and are net of fees.

Secular themes

Geopolitical fragmentation is likely to continue casting its shadow over markets. This was highlighted recently by a commitment from NATO member nations to spend 5% of GDP on defence by 2035.

One ETF that provides investors with exposure to this theme is the Global Defence ETF (ASX: ARMR). ARMR aims to track the performance of an index that holds many of the world’s leading defence contractors. These companies are set to be some of the largest beneficiaries of governments that implement the 5% GDP defence spending commitment.

Alternatively, if you’re an investor who likes to seek growth and income without much overlap with the biggest large cap tech names, you could consider royalty companies. The easiest way to access this theme is with the Global Royalties ETF (ASX: ROYL).

ROYL has returned 28.34% p.a. in the year to 30 June 2025 and 18.43% p.a. since its inception date on 9 September 2022 (33 months). The fund also recently commenced monthly distributions.

You can learn more about royalties, their risks and why they may be suitable for you in this article.

Fixed Income

The end of the bank hybrid market in Australia has been a hot topic among investors of all stripes. And while its end has been signalled, this asset will likely continue to be a compelling investment until the last bonds roll off in 2032. For investors interested in this theme, you can check out the Australian Major Bank Hybrids Index ETF (ASX: BHYB). BHYB holds a diversified portfolio of ‘Big 4’ hybrids and has a trailing 12-month gross distribution yield of 6.5%⁶.

As APRA’s new rules take effect, we will see banks replace hybrids with mostly subordinated bonds for their funding needs. The Australian Major Bank Subordinated Debt ETF (ASX: BSUB) gives investors access to this market and aims to deliver attractive income from high quality issuers. To find out more about subordinated bonds, you can click here.