S&P/ASX 200 Index (ASX: XJO) shares edged 0.76% higher in May amid no resolution for the war in Iran.
The global oil shock continued, with the Strait of Hormuz remaining effectively closed with scores of oil tankers stranded.
The Reserve Bank of Australia raised interest rates for a third time in 2026 last month due to resurgent inflation.
Softer-than-expected inflation data and 18,600 job losses in April suggest the RBA is unlikely to raise rates again this month.
The market expects the RBA to keep interest rates on hold at 4.35% on 16 June.
Changes to capital gains tax (CGT) proposed in the Federal Budget shocked some investors last month.
The 50% CGT discount for assets held for more than a year will be replaced by cost-base indexation and a minimum 30% CGT rate from 1 July 2027.
Existing investments in ASX shares and property will be grandfathered.
That means the 50% CGT discount will continue to apply to gains accrued before 1 July 2027 on those assets.
After 1 July 2027, cost base indexation will apply for future gains on those existing investments.
There is one exception under the changes. Investors who buy new properties will be able to choose between the two CGT methods.
Private wealth and investment advisory firm, Medallion Financial Group, says the changes may encourage more focus on yield.
For example, investors may prefer to accumulate more franked ASX dividend shares over growth investments.
Drew Meredith, a principal adviser at Wattle Partners, provides 5 tips for investors considering topping up their dividend stocks.
Most bought ASX shares in May
The following ASX shares and ETFs were the most bought by investors using the Bell Direct trading platform last month.
The rankings are based on order of net value of buy orders, minus sell orders, placed by Bell Direct clients.
Given the number of experts discussing the enhanced appeal of dividends under the CGT changes, it’s interesting to see the market’s largest ASX dividend ETF at the top of the buy list.
| Rank | ASX share or ETF |
| 1 | Vanguard Australian Shares High Yield ETF (ASX: VHY) |
| 2 | Accent Group Ltd (ASX: AX1) |
| 3 | Vanguard Australian Shares Index ETF (ASX: VAS) |
| 4 | Vanguard MSCI Index International Shares ETF (ASX: VGS) |
| 5 | Amplitude Energy Ltd (ASX: AEL) |
| 6 | CSL Ltd (ASX: CSL) |
| 7 | Elders Ltd (ASX: ELD) |
| 8 | WiseTech Global Ltd (ASX: WTC) |
| 9 | 4DMedical Ltd (ASX: 4DX) |
| 10 | Vanguard All-World ex-US Shares Index ETF (ASX: VEU) |
Source: Bell Direct
Most sold ASX shares last month
| Rank | ASX share |
| 1 | BHP Group Ltd (ASX: BHP) |
| 2 | Commonwealth Bank of Australia (ASX: CBA) |
| 3 | Fortescue Ltd (ASX: FMG) |
| 4 | Macquarie Group Ltd (ASX: MQG) |
| 5 | Westpac Banking Corporation Ltd (ASX: WBC) |
| 6 | PLS Group Ltd (ASX: PLS) |
| 7 | Smartgroup Corporation Ltd (ASX: SIQ) |
| 8 | Rio Tinto Ltd (ASX: RIO) |
| 9 | Telstra Group Ltd (ASX: TLS) |
| 10 | Woodside Energy Group Ltd (ASX: WDS) |
Source: Bell Direct
The post Top 10 ASX shares bought and sold by investors in May appeared first on The Motley Fool Australia.
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Motley Fool contributor Bronwyn Allen has positions in BHP Group, Vanguard International Equity Index Funds – Vanguard Ftse All-World ex-US ETF, and Vanguard Msci Index International Shares ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Macquarie Group, Vanguard International Equity Index Funds – Vanguard Ftse All-World ex-US ETF, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Macquarie Group, Smartgroup, Telstra Group, and WiseTech Global. The Motley Fool Australia has recommended Accent Group, BHP Group, CSL, Elders, Vanguard Australian Shares High Yield ETF, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.