If I were starting fresh with $50,000 to invest today, I would keep things fairly simple.

I would want a portfolio with exposure to different parts of the economy, some global diversification, and businesses I would be comfortable holding for many years.

Rather than spreading the money across dozens of investments, I would use one broad exchange-traded fund (ETF) as a foundation and build around it with a handful of ASX shares I particularly like.

Here is how I would allocate the full $50,000.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

I would start with $12,000 in the VGS ETF.

The fund gives investors exposure to a large portfolio of companies across developed markets outside Australia, including major businesses from the United States, Europe, and Asia.

For me, this provides an important diversification base. Instead of relying entirely on the Australian economy and a handful of individual companies, part of the portfolio would be spread across over a thousand global businesses and numerous industries.

That would make the Vanguard MSCI Index International Shares ETF my largest single allocation.

Commonwealth Bank of Australia (ASX: CBA)

I would put $8,000 into Commonwealth Bank.

CBA gives the portfolio exposure to Australia’s banking sector through a business with leading positions across home lending, deposits, and digital banking.

I also like the combination of earnings resilience and dividends it can bring to a long-term portfolio.

The valuation can become stretched at times, so I would not want to make the position too large. But I would still want CBA as part of my starting portfolio.

BHP Group Ltd (ASX: BHP)

Another $8,000 would go into BHP shares.

The mining giant adds exposure to commodities including iron ore and copper, providing a source of earnings quite different from CBA and the global companies held through the VGS ETF.

I am particularly positive on copper’s long-term outlook as investment in power networks, renewable energy, data centres, and electrification drives demand.

BHP would also add some dividend income to the portfolio, although payouts will naturally move with commodity conditions.

CSL Ltd (ASX: CSL)

I would allocate $6,000 to CSL shares.

The healthcare giant has global operations across plasma therapies, vaccines, and specialised medicines.

After a difficult period for the shares, I think there is an attractive opportunity if CSL can continue improving earnings and margins over the coming years.

It also gives the portfolio another source of growth that is less dependent on Australian economic conditions.

ResMed Inc. (ASX: RMD)

I would put $6,000 into ResMed shares.

The company is a global leader in devices and masks used to treat sleep apnoea, giving it exposure to a substantial healthcare market.

For example, management estimates that there are over 1 billion sufferers of sleep apnoea globally, with the majority undiagnosed.

As a result, ResMed is the type of high-quality global business I would be comfortable owning for many years.

Wesfarmers Ltd (ASX: WES)

I would allocate $5,000 to Wesfarmers shares.

Through businesses including Bunnings, Kmart, and Officeworks, Wesfarmers provides exposure to some of Australia’s strongest retail operations.

I also like its history of disciplined capital allocation and willingness to invest across different industries when opportunities arise.

That makes it a strong long-term portfolio holding in my view.

Xero Ltd (ASX: XRO)

Finally, I would invest $5,000 in Xero shares.

Its accounting software is deeply embedded in the operations of small businesses and accountants, while its international presence gives the company plenty of room to grow.

This would be one of the portfolio’s more growth-focused positions and provide additional technology exposure alongside the global holdings inside the VGS ETF.

Foolish takeaway

If I were investing $50,000 from scratch, this is the sort of balance I would want.

The VGS ETF would give me broad global diversification from day one, while CBA, BHP, CSL, ResMed, Wesfarmers, and Xero would let me put additional money behind individual businesses I believe can perform well over the long term.

I think that gives the portfolio a strong foundation without overcomplicating it.

The post How I’d build a $50,000 ASX share portfolio today appeared first on The Motley Fool Australia.

More reading

• Fortescue vs Wesfarmers: Which ASX share is better for passive income in 2026?
• Xero shares have crashed 64%. Here’s why I’m buying
• Fund managers are loading up on CSL shares. Here’s why
• 5 ASX 200 shares upgraded by experts this week
• CBA vs Telstra: Which ASX blue-chip is better for passive income?

Motley Fool contributor Grace Alvino has positions in CSL, Commonwealth Bank Of Australia, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, ResMed, Wesfarmers, and Xero. The Motley Fool Australia has positions in and has recommended ResMed and Xero. The Motley Fool Australia has recommended BHP Group, CSL, Vanguard Msci Index International Shares ETF, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Fortescue vs Wesfarmers shares: Which is better for passive income?

Weighing up Fortescue Ltd (ASX: FMG) and Wesfarmers Ltd (ASX: WES) shares is a classic fork in the road for Aussie investors hunting for passive income. Both are giants of the ASX and reliable dividend payers—but that’s about where the similarities end. With one rooted in iron ore and the other sprawling across retail, energy, and healthcare, the choice between Fortescue and Wesfarmers shares could shape the nature of your dividend stream and the risk in your portfolio. Here’s how they stack up for those of us keen on generating income from our investments.

The case for Fortescue

Fortescue is one of the world’s largest iron ore producers, operating huge mines and infrastructure assets in the Pilbara region of Western Australia. Since getting its ASX start in 1987, Fortescue has built a global reputation for exporting iron ore, with expansion into integrated infrastructure like heavy haul rail and port facilities. This scale makes it a powerhouse among miners.

What stands out for Fortescue is its juicy dividend—boasting a market-leading fully franked yield of 6.46%, if you take the most current snapshot. Dividends have historically been consistent, fully franked, and generous, with recent payments including $0.62 interim and $0.46 final dividends (all at 100% franking). The company’s P/E ratio of 12.81 suggests the market isn’t pricing in runaway growth, but that’s typical for resources—what Fortescue delivers is strong cash flow, fuelling those dividends. Bear in mind, though, the shares are down 19.1% in 2026 year to date, reflecting the ups and downs tied to iron ore prices.

The case for Wesfarmers

Wesfarmers is Australia’s quintessential conglomerate, with interests spanning Bunnings Warehouse (the hardware titan), Kmart and Target, Officeworks, Priceline (health and pharmacy), plus chemicals and fertilisers. Since its origins as a farmers’ co-op, Wesfarmers has become a fixture in many Aussie portfolios—appreciated for its diversification and steady management.

Dividend lovers take comfort in Wesfarmers’ consistent and long history of payments, also at 100% franking. Its current yield sits at 3.05%, which is solid but less than half that of Fortescue’s on paper. Recent dividends include $1.02 interim and $1.20 final declared for 2026, also fully franked. The P/E, at 28.71, is much higher than Fortescue’s—a function of its diversified earnings and the stability the conglomerate offers. Shares are down 7.6% year to date in 2026, which is less than the slide seen at Fortescue.

Valuation comparison

With both companies sitting among the ASX’s top names, their market caps are hefty: Wesfarmers at $83.20 billion and Fortescue at $51.57 billion. But the numbers that shine for income investors are dividend yield, P/E, and franking. Here’s a quick look:

Metric	Fortescue	Wesfarmers
Market Cap	$51.57 billion	$83.20 billion
P/E Ratio	12.81	28.71
Dividend Yield	6.46%	3.05%
Dividend Franking	100%	100%
Earnings Per Share	0.931	2.534
Dividend Per Share	1.08	2.22

Note: Wesfarmers’ P/E ratio is much higher than Fortescue’s, reflecting its diversified and arguably more stable business mix. Both companies offer 100% franking, so the tax advantage is even.

Recent share price performance

Looking at how the shares have moved recently can highlight sentiment and risk. Comparing the period of 25 August to 22 September 2026:

• Fortescue shares slid 19.1% year to date and experienced periods of volatility over the past month, with swings both up and down. Standouts include a sharp 4.6% dip on 2 September and several other days with moves over 2%—reminding us that resources stocks are always at the market’s mercy when it comes to commodity prices.
• Wesfarmers shares are down just 7.6% over the same period in 2026. The volatility has been notably less wild than Fortescue, with changes mostly under 1% for most days. The steepest daily move was -4.6% on 27 August, but otherwise Wesfarmers’ price chart is a much gentler ride.

Which is the better buy?

If my main goal is passive income, my pick would be Fortescue. That 6.46% fully franked yield, backed by a long streak of generous dividend payments, is hard to overlook if dividend flow is my top priority. Yes, there’s a trade-off—the ride can be bumpy, and much depends on iron ore prices. Investors in Fortescue need to accept that resource shares will always be at the mercy of the commodity cycle.

Wesfarmers, by comparison, offers stability and sector diversification, but at a much steeper P/E and with only half the yield. If I were after more defensive exposure and lower share price swings, I’d lean toward Wesfarmers—but my dividends would be notably smaller, at least for now.

For pure passive income, Fortescue takes the cake for me. But as always, diversification and risk appetite matter—so it’s worth thinking about how either of these fits within your own portfolio goals.

The post Fortescue vs Wesfarmers: Which ASX share is better for passive income in 2026? appeared first on The Motley Fool Australia.

More reading

• How I’d build a $50,000 ASX share portfolio today
• 5 ASX 200 shares upgraded by experts this week
• Super Retail Group vs Wesfarmers: Dividend showdown for Aussie investors
• What do brokers tip for Fortescue shares over the next 12 months?
• Could Wesfarmers shares reach $100 in 2027

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

It was a rather depressing end to the trading week for the Australian share market this Friday. After opening sharply lower this morning, the S&P/ASX 200 Index (ASX: XJO) stayed in red territory all day, closing with a 0.43% loss. That leaves the index at a flat 8,665 points as we head into the weekend.

This sad end to the local trading week for ASX investors comes after a more nuanced night of trading over on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) was in a bad mood, losing 0.31% of its value.

However, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) managed to hold its own, rising a slight 0.012%.

Let’s get back to ASX shares now though and take a closer look at how the various ASX sectors traversed today’s tough trading conditions.

Winners and losers

There were only a couple of sectors that held their value this Friday. But first, let’s get to the far more numerous red sectors.

Leading said losers this session were tech shares. The S&P/ASX 200 Information Technology Index (ASX: XIJ) had a rough one, tanking by 1.66%.

Consumer discretionary stocks were in the firing line today too, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) plunging 1.36%.

Joining them were utilities shares. The S&P/ASX 200 Utilities Index (ASX: XUJ) cratered 1.25% today.

Industrial stocks were also on the nose, as you can see from the S&P/ASX 200 Industrials Index (ASX: XNJ)’s 0.87% dive.

Mining shares had a day to forget as well. The S&P/ASX 200 Materials Index (ASX: XMJ) suffered a 0.84% swing against it this Friday.

Healthcare stocks didn’t live up to their name this session, with the S&P/ASX 200 Healthcare Index (ASX: XHJ) shedding 0.79% of its total.

Communications shares matched that result. The S&P/ASX 200 Communication Services Index (ASX: XTJ) gave up 0.79% as well.

Gold stocks were no safe haven, evidenced by the All Ordinaries Gold Index (ASX: XGD)’s 0.48% tumble.

Real estate investment trusts (REITs) weren’t much better. The S&P/ASX 200 A-REIT Index (ASX: XPJ) ended the day down 0.33%.

Even energy shares weren’t spared, with the S&P/ASX 200 Energy Index (ASX: XEJ) dipping 0.3%.

That’s it for the red sectors though, so let’s get to the good stuff.

Leading the winners this Friday were consumer staples stocks. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) was a harbour in the storm, shooting 0.73% higher.

Finally, the other sheltered corner of the market was financial shares, illustrated by the S&P/ASX 200 Financials Index (ASX: XFJ)’s 0.27% jump.

Top 10 ASX 200 shares countdown

Defence stock Electro Optic Systems Holdings Ltd (ASX: EOS) took out this Friday’s top index spot. Electro Optic Systems shares surged 5.995 hgiher today to finish the week at $11.32 each.

This big leap came after the company announced a new procurement for one of its weapons systems.

Here’s the rest of today’s best:

ASX-listed company	Share price	Price change
Electro Optic Systems Holdings Ltd (ASX: EOS)	$11.32	5.99%
Block Inc (ASX: XYZ)	$108.33	2.08%
Develop Global Ltd (ASX: DVP)	$5.32	2.11%
Auckland International Airport Ltd (ASX: AIA)	$6.87	1.93%
Genesis Minerals Ltd (ASX: GMD)	$7.65	1.19%
A2 Milk Company Ltd (ASX: A2M)	$6.65	1.22%
Coles Group Ltd (ASX: COL)	$23.19	1.27%
Karoon Energy Ltd (ASX: KAR)	$1.79	1.13%
Resolute Mining Ltd (ASX: RSG)	$1.22	1.67%
Ansell Ltd (ASX: ANN)	$44.21	1.14%

Enjoy the weekend!

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• ASX 200 sinks to June lows as investors brace for another RBA rate hike
• EOS shares jump 7% as ASX 200 falls. Could $15 be next?
• Is the Coles share price a buy for its 5% dividend yield?
• 5 things to watch on the ASX 200 on Friday
• How to top up your superannuation if you’re 40 and falling behind

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block and Electro Optic Systems. The Motley Fool Australia has recommended Ansell. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.