Forget CBA shares and buy this ASX ETF: experts

Commonwealth Bank of Australia (ASX: CBA) shares are a popular option for investors.

It isn’t hard to see why this is the case.

Australia’s largest bank is widely regarded as one of the highest quality banks in the world.

In addition, CBA shares have a strong track record of delivering outsized returns for investors.

But right now, according to The Bull, experts think investors should be taking profit and putting their money into a beaten down exchange traded fund (ETF).

Let’s see what it is recommending.

Sell CBA shares

Sanlam Private Wealth fears that higher interest rates could impact credit growth for CBA.

And given its premium valuation, it thinks this could make it a good time to reduce exposure to the bank. It explains:

The bank is a quality company and a staple in investor portfolios. It has established a strong track record of performance over many years. The company delivered a 5 per cent increase in statutory net profit after tax in the first half of fiscal year 2026. However, the dividend yield was trading below 3 per cent on March 26, so better income is available elsewhere.

The conflict in Iran suggests a possibly slowing global economy likely to impact credit growth in Australia’s higher interest rate environment. CBA is trading at a premium to peers, so it may be time to consider reducing exposure in this volatile environment.

Buy this ASX ETF

Catapult Wealth is very positive on the BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC) after a heavy share price decline.

This week, the wealth management firm named the tech-focused fund as a buy. It thinks artificial intelligence (AI) disruption fears are overdone, explaining:

This exchange traded fund invests in Australian technology companies. ATEC has experienced a material pullback alongside the broader Australian technology sector, creating an attractive entry point for long term investors. Share prices in several of its key constituents, including Xero, WiseTech Global, Pro Medicus and REA Group, have fallen significantly despite stable earnings trajectories and ongoing revenue growth across the sector.

Market concerns surrounding artificial intelligence disruption appear overdone, in my view, particularly given the high costs of switching software platforms. Despite weaker sentiment, fundamentals are largely intact. In our view, an appealing opportunity exists to gain exposure to high quality Australian technology names through ATEC.

The post Forget CBA shares and buy this ASX ETF: experts appeared first on The Motley Fool Australia.

More reading

• How I’d aim to build a $100,000 ASX share portfolio starting at zero
• Here’s the dividend forecast out to 2028 for CBA shares
• How to become a millionaire with a $5,000 investment in ASX 200 shares each year
• Which ASX bank has the biggest dividend yield?
• Where I’d invest $50,000 into ASX ETFs today

Motley Fool contributor James Mickleboro has positions in Pro Medicus, REA Group, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.