A new report from Betashares has provided a snapshot of what is set to be a record-breaking year for ASX ETFs. 

According to the report, the Australian ETF industry closed the financial year at a record $372 billion in funds under management, with $400 billion now firmly in sight. 

Net flows of $30 billion for the half matched the entirety of 2024, while AI-driven tech exposures led performance.

Market insights 

According to the report, global equity markets rallied through the first half of 2026, powered by evidence that AI capital expenditure is starting to convert into profit. 

Microsoft, OpenAI, and Anthropic all reported AI revenue run rates up more than 100% year on year, while Nvidia and the major memory makers, Samsung, SK Hynix, and Micron, were the clearest beneficiaries of the compute build-out. 

Asian semiconductor markets captured this directly, with North Asian chipmakers driving the MSCI Emerging Markets Index to the strongest returns of any major market, even as an Iran-triggered oil spike and a US$1.5 trillion software sell-off tested the rally’s nerve during the half. 

Domestically, the S&P/ASX 200 Index (ASX: XJO) managed just 2.4% over the same six months, the weakest of the major developed markets. 

Three RBA rate hikes in the half pushed inflation and unemployment back into focus, rewarding income and value over growth. 

Materials carried the bulk of the market’s earnings growth, benefiting from elevated iron ore and gold prices and from critical mineral demand driven by the AI rollout. 

The May budget’s proposed removal of the CGT discount added further uncertainty for households already absorbing higher borrowing costs, and the combination has weighed on consumer sentiment through the half. 

Performance – Half Year 2026

The Betashares Australian ETF Review revealed that the half-year performance was led by semiconductors, with AI-related hardware demand driving standout returns over the period. 

South Korea’s technology-heavy market also featured prominently, alongside broader Asian technology exposure, reinforcing a theme of innovation-driven outperformance. 

Hydrogen and clean energy themes made a strong showing, pointing to renewed appetite for energy transition plays. 

Crude oil rounded out the top five, with prices driven sharply higher by the Middle East conflict and resulting disruptions to the Strait of Hormuz, a key global oil transit route.

Top 5 performing funds for the half year to June 2026: 

• Global X Semiconductor ETF (ASX: SEMI) rose almost 102%
• iShares MSCI South Korea ETF (ASX: IKO) climbed 94%
• Global X Hydrogen ETF (ASX: HGEN) rose 70% 
• Betashares Capital – Asia Technology Tigers ETF (ASX: ASIA) increased by 59%
• BetaShares Crude Oil Index ETF – Currency Hedged (Synthetic) (ASX: OOO) rose over 44%

The post The ASX ETF market is set for a record year – Here are the best performers so far in 2026 appeared first on The Motley Fool Australia.

More reading

• Why it’s vital for investors to look to international shares for growth: Expert 
• Own ACDC, FANG, or SEMI ETF? Global X is paying your dividend today!
• 3 ASX ETFs that have returned better than 80% over the past year
• SK Hynix IPOs in the US. Here’s what that means for ASX investors
• 3 ASX ETFs with strong long-term growth potential

Motley Fool contributor Aaron Bell has positions in Betashares Capital – Asia Technology Tigers Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Micron Technology, Microsoft, and Nvidia. The Motley Fool Australia has recommended Microsoft and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Wesfarmers Ltd (ASX: WES) is the kind of ASX share that can be hard to judge.

The business quality is obvious. The price is the harder part.

So, should investors buy, hold, or sell Wesfarmers shares today?

Why selling feels too harsh

I would find it difficult to call Wesfarmers a sell.

This is one of the strongest long-term operators on the ASX, and I think that still counts for a lot.

Bunnings remains one of the best retail businesses in Australia. It has strong customer trust, a dominant market position, and a role in home improvement that is hard for rivals to replicate at scale.

Kmart is also a much better business than it was many years ago. Its value focus has made it highly relevant at a time when households are watching spending more carefully.

I also like that Wesfarmers keeps looking for ways to make the group stronger. Health, data, digital initiatives, OnePass, and other growth options may not transform the business overnight, but they give the company more ways to deepen customer relationships and reinvest over time.

That is the part of Wesfarmers I find most appealing. It is not just a collection of retail brands. It is a management culture that has demonstrated a long-term ability to improve assets, make disciplined decisions, and allocate capital to better opportunities.

Why buying aggressively is harder

The issue is valuation. Wesfarmers shares are trading at around $91.67 at the time of writing, which is close to the upper end of their yearly range of $70.80 to $95.18.

According to CommSec consensus estimates, Wesfarmers is expected to generate earnings per share of $2.55 in FY26 and $2.74 in FY27.

That puts the stock on a price-to-earnings (P/E) ratio of around 36 times FY26 earnings and 33.5 times FY27 earnings.

I can justify a premium for Wesfarmers. I have much more trouble justifying any price.

At this level, investors are paying upfront for a lot of future success. That can work if Bunnings stays strong, Kmart keeps performing, the health division improves, and newer digital initiatives add value.

But the starting point is important for future returns. When a high-quality company is priced this fully, even a good business can deliver more modest shareholder returns if earnings growth is only steady rather than exceptional.

The forecast dividend yield also does not make the valuation look cheap. CommSec estimates dividends per share of $2.16 in FY26 and $2.33 in FY27, implying forward yields of around 2.4% and 2.5%.

That income is attractive enough, but it is not the reason I would own Wesfarmers.

My verdict

My verdict is hold. If I already owned Wesfarmers shares, I would be happy to keep them. The company has too many strengths for me to want to step away just because the valuation looks full.

For new money, I would be more patient. I could understand buying a small amount now for a long-term position, especially for investors who like building into quality companies over time.

But I would prefer to buy more meaningfully during a pullback.

Foolish Takeaway

Wesfarmers remains one of the ASX businesses I would trust to keep improving over the long term.

The company has strong brands, experienced management, and several areas where it can keep reinvesting for growth.

The share price already reflects a lot of that quality. That is why I would hold Wesfarmers shares today. I would keep it high on my long-term watchlist, stay patient, and look for a better chance to buy more when the market offers one.

The post Should you buy, hold, or sell Wesfarmers shares? appeared first on The Motley Fool Australia.

More reading

• How much do I need in my superannuation to earn an annual $60,000 passive income?
• Buy, hold, sell: Coles, Woolworths, Wesfarmers shares
• 3 ASX dividend shares I’d buy for passive income right now
• This blue-chip ASX 200 stock is up 30% in 2 months
• How much superannuation is needed to target a $100,000 annual passive income?

Motley Fool contributor Grace Alvino has positions in Wesfarmers. 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.

BHP Group Ltd (ASX: BHP) released its operational review for the past financial year this week, and it’s fair to say reaction from analysts has been muted, with the company guiding to a drop in copper production this year.

Are BHP shares fully priced at the moment?

BHP shares are up slightly more than 50% for the past 12 months, so given that strong result, it begs the question, do they have further to run?

The team at Macquarie have run the ruler over the company and come up with a neutral recommendation on the stock, and a share price target we’ll get to shortly.

First, let’s look at what BHP reported this week.

Solid operational results

The company said in a statement to the ASX that it had delivered record iron ore production over the year to the end of June, up 1% to 264.7 million tonnes.

Copper, however, was 3% lower than the previous year at 1.95 million tonnes.

BHP Chief Executive Officer Brandon Craig said it was a solid result.

He added:

For the second consecutive year, we produced around 2 Mt of copper and delivered record iron ore production, demonstrating the power of a disciplined operating system and world-class assets. We achieved this against a backdrop of stronger realised prices for both copper and iron ore, with copper prices around 35 per cent higher than a year ago. Cost control was particularly strong, with every asset expected to be within unit cost guidance despite headwinds from inflation, higher diesel prices and global supply chain disruptions.

While Mr Craig said the company had several growth projects underway, BHP is actually guiding to lower copper output this year, with a forecast of 1,650,000 to 1,800,000 tonnes of copper.

Iron ore is expected to stay largely flat at 260 to 272 million tonnes.

Copper output has been impacted by a conveyor belt failure at the Carrapateena mine, impacting output at the company’s South Australian operations for up to eight weeks.

Let’s see what the analysts think

The Macquarie team said in their note to clients that much of BHP’s value proposition was built on copper growth, and that South Australia was a key part of that.

They applauded the company’s record iron result however, in what they said had been a tough year.

But Macquarie said with the risk of strikes looming and significant maintenance work scheduled, they expected it to be a “holding year” for the division.

Macquarie has a 12-month price target of $55 on BHP shares compared to $59.14 at the time of writing. They are also predicting the dividend yield to stay steady on 3.4%.

The post Does Macquarie rate BHP shares a buy, hold or sell right now? appeared first on The Motley Fool Australia.

More reading

• How much do I need in my superannuation to earn an annual $60,000 passive income?
• 3 amazing ASX ETFs I’d buy this month
• Why are BHP shares surging 4% today despite a flat copper price?
• Which ASX copper and gold stock could rocket 200%?
• Up almost 50%, is it too late to buy BHP shares?

Motley Fool contributor Cameron England 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 Macquarie Group. The Motley Fool Australia has recommended BHP Group and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.