The market has been incredibly volatile recently. This has left many stocks from across the globe trading at deep discounts to what investors were willing to pay just a matter of months ago.
The team at Bell Potter thinks that this has created a compelling buying opportunity for investors.
What is it saying?
The broker highlights that there are high-quality stocks trading at attractive levels. It notes that this valuation reset comes despite earnings remaining robust and fundamentals not weakening. It said:
A wide range of quality companies are currently trading at valuations that are attractive relative to historical norms and their long-term earnings potential. These companies have strong balance sheets, providing insulation against both the rising cost of capital and geopolitical volatility. Importantly, the structural tailwinds for some of these companies from AI and digital transformation remain largely independent of Middle Eastern tensions or fluctuating oil prices.
This valuation reset is underpinned by robust earnings rather than weakening fundamentals. While not cheap in absolute terms, this shift represents an attractive entry point relative to recent history. Importantly, earnings revisions remain positive despite higher oil prices; the S&P 500 has seen 2.5% upgrades in the past month. The recent sell-off appears indiscriminate, but we expect a rotation towards quality given positive fundamentals and the heightened uncertainty we expect to persist.
But if you’re not a fan of stock picking, don’t worry. That’s because Bell Potter thinks two ASX ETFs could be a way to take advantage of the weakness.
Global X Fang+ ETF (ASX: FANG)
The first ASX ETF it is recommending is the Global X FANG ETF. It gives investors access to 10 of the best stocks from across the globe. It explains:
The Global X FANG ETF (FANG) provides concentrated, high conviction exposure to the leaders of the modern economy. It tracks the NYSE FANG Plus Index, which is composed of 10 highly traded growth stocks across the technology and communication services sectors. This includes the original FANG names alongside other innovative giants such as Nvidia and Microsoft. With a management fee of 0.35% per annum, it offers an efficient way to target the specific mega cap tech names that have seen the most significant sentiment-driven de-rating despite their robust balance sheets and leading roles in the AI revolution.
VanEck MSCI International Quality ETF (ASX: QUAL)
Another ASX ETF that the broker is recommending is the VanEck MSCI International Quality ETF.
It gives investors exposure to 300 of the best stocks from across the world. It said:
For those preferring a more diversified approach, the VanEck MSCI International Quality ETF (QUAL), offers exposure to approximately 300 of the world’s highest quality companies. This fund follows a rules-based methodology that selects stocks based on three key fundamental factors: high return on equity, stable year-on-year earnings growth, and low financial leverage. While still heavily weighted towards US technology giants like Apple and Microsoft, QUAL provides a broader safety net by including high quality names across healthcare, industrials, and consumer staples.
The post Bell Potter names 2 of the best ASX ETFs to buy now appeared first on The Motley Fool Australia.
Should you invest $1,000 in ETFs Fang+ ETF right now?
Before you buy ETFs Fang+ ETF shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and ETFs Fang+ ETF wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 20 Feb 2026
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More reading
- 5 of the best ASX ETFs to buy in April
- Here are 5 ASX ETFs that I would buy with $50,000
- Why I’m seriously thinking about buying these ASX ETFs in April
- Should investors be targeting growth or value ASX ETFs right now?
- You can aim to beat the Age Pension for the price of a daily coffee!
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.