Stock Pick

  • Down 16% in 2 weeks: The saga of the ASX’s wildest ETF continues

    A boy is wowed at a surge of water from a blowhole.

    About two months ago, I wrote about what I then called the “ASX’s craziest ETF”. This exchange-traded fund (ETF) had, at least at the time, just come off the boil after a 200% gain in a mere 12 months. ‘Off the boil’ is a little generous. This ETF had, in fact, lost more than a third of its value since peaking in late June.

    The ASX ETF we are referring to is none other than the iShares MSCI South Korea ETF (ASX: IKO). For many years, this index fund largely flew under the Australian share market radar, generating the kind of consistent single-digit returns that one would expect for a product like this.

    However, 2025, and more notably, 2026 have seen that turn on its head. The extreme volatility has continued since we last spoke about IKO, too. Yesterday, we saw IKO units close at $231.11 each. That’s down 16.06% since just 5 October, when those same units finished that day at $275.32 each.

    Today, we seem to have turned a corner. At present, the iShares South Korea ETF has jumped by a healthy 3.3% or so and is back up to $238.70 a unit.

    On paper, the iShares South Korea ETF is an index fund, representing the entire Korean stock market. However, in reality, this fund has become a holding vehicle for just two stocks, with another 78 companies or so tacked on the end for a bit of diversity.

    The ASX’s craziest ETF is hostage to just two stocks

    As we’ve documented before, the unbridled success of chipmakers SK Hynix Inc and Samsung Electronics Ltd has had the unusual consequence of elbowing out most of Korea’s other storied names to dominate any index fund that covers the Korean markets. So while you may think a Korean-themed index fund would at least be heavily influenced by companies like Hyundai, Kia, and LG, these companies are now just window dressing for the main attractions.

    Yes, on current numbers, SK Hynix makes up a whopping 24.54% of the entire IKO portfolio. Samsung contributes another 23.17%. The next-largest stock, SK Square, comes in at just 2.93%.

    So, when we see that the iShares South Korea ETF has made a dramatic move, like losing 16% in just over a week, we know where to look for a culprit, or culprits.

    Thus, it won’t shock you to discover that Samsung shares lost 15.94% of their value on the Korean stock exchange between 5 October and yesterday afternoon. SK Hynix stock has fared even worse, shedding 21.6% of its value over that same span.

    It seems fears that Chinese companies are catching up to these two leaders in the chip space were enough for a correction of this magnitude.

    Let’s see what the next chapter in this wildest of ASX ETFs’ story will be.

    The post Down 16% in 2 weeks: The saga of the ASX’s wildest ETF continues appeared first on The Motley Fool Australia.

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    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 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.

  • Harvey Norman vs Premier Investments: Which founder-led stock is the better buy in 2026?

    CEO leading a board meeting.

    Harvey Norman vs Premier Investments shares

    Deciding between Harvey Norman Holdings Ltd (ASX: HVN) and Premier Investments Ltd (ASX: PMV) promises an interesting founder-led face-off. Both companies are household names in Australian retail, but each brings its own strengths, quirks, and opportunities. If you’re weighing up Harvey Norman vs Premier Investments shares for your 2026 watchlist, here’s a simple, no-nonsense look at which might suit you best.

    The case for Harvey Norman

    Harvey Norman is a stalwart of the Australian retail landscape, famous for its big-box stores selling everything from electronics and computers to furniture and homewares. As the franchisor behind more than 270 company-operated and franchised outlets in eight countries—including Australia, New Zealand, Singapore, and Ireland—Harvey Norman has built scale and a significant property portfolio over decades. Much of its earnings still come from Australia, but its international arm is growing in significance.

    Looking at fundamentals:

    • Market cap sits at $5.15 billion, marking it as a major ASX player.
    • A P/E ratio of 9.80 suggests investors are paying less per dollar of reported earnings than for Premier, although sector differences should be kept in mind.
    • Dividend yield of 6.63%, fully franked, has been consistently healthy with recent final and interim payouts of $0.13 and $0.145 per share respectively in 2026.

    Harvey Norman’s founder, Gerry Harvey, still guides the business, providing the kind of continuity some investors look for in retail. Its extensive history of property ownership also underlines its blend of retail and real asset exposure.

    The case for Premier Investments

    Premier Investments recently reshaped itself after demerging its apparel brands (like Just Jeans and Portmans) into Myer Holdings. Now it’s focused on two growth engines: Peter Alexander, which dominates sleepwear and lifestyle retail, and Smiggle, a favourite among school-aged kids for its playful stationery and backpack range. Both brands are expanding internationally, especially Smiggle in the UK and Asia. Premier also keeps a significant stake in Myer, giving it continued exposure to broader Australian retail.

    Key numbers for Premier:

    • It’s smaller than Harvey Norman by market cap, at $1.98 billion, but packs a punch in yield and earnings.
    • P/E ratio of 15.38, a notable premium, could reflect its stronger growth story or the market’s confidence post-demerger.
    • Dividend yield is impressive at 7.67%, fully franked, and the 2026 interim payout was $0.45 per share, with past years featuring additional special dividends.

    Premier is still under the influence of founder Solomon Lew, renowned for his retail savvy and ability to generate solid returns for shareholders, often through a shrewd capital management style.

    Valuation comparison

    Here’s how some of the standout numbers stack up:

    Metric Harvey Norman Premier Investments
    Market cap $5.15 billion $1.98 billion
    P/E ratio 9.80 15.38
    Dividend yield 6.63% 7.67%
    Dividend per share (2026) $0.26 $1.31
    Earnings per share 0.424 0.902
    Franking 100% 100%

    Note: Both companies are fully franked, which is a major plus for income-focused Aussie investors. Premier’s P/E is higher compared to Harvey Norman, which could reflect its recent strategic reset and growth bets, but the sectors (big-box retail vs. specialist brands) mean caution is warranted on a like-for-like valuation call.

    Recent share price momentum

    Comparing recent share price performance up to12 October 2026:

    • Harvey Norman closed at $4.13, down 0.48% on the day, with its year-to-date return sitting at -36.2%. That’s a hefty slide, suggesting headwinds for the traditional retail model or one-off impacts this year.
    • Premier Investments closed at $12.43, up 0.4% on the day, with a year-to-date return of -7.0%. While negative, it’s nowhere near as steep as Harvey Norman’s decline.

    Which is the better buy?

    If I had to plant my flag on the better founder-led buy for 2026, I’d lean toward Premier Investments. Premier’s portfolio is leaner and much more focused post-demerger, with two high-margin, brand-driven businesses and international ambitions. Its negative YTD return is milder, the dividend yield is higher at 7.67%, and management keeps surprising with special dividends—a sign of strong cash flows and nimble capital management.

    Harvey Norman, by contrast, looks like it’s facing tougher retail conditions, as shown by its much steeper share price fall this year. Yes, its P/E ratio is lower, and it still throws off reliable dividends, but for genuine growth or brand-driven differentiation, Premier now sets itself apart.

    Both companies have storied founders still in the driver’s seat, but for me, Premier’s current trajectory and sharper focus make it the more compelling prospect right now. If dividend income and upside optionality matter to you, my pick would be Premier Investments.

    The post Harvey Norman vs Premier Investments: Which founder-led stock is the better buy in 2026? appeared first on The Motley Fool Australia.

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    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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended Premier Investments. 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.

  • 3 fantastic ASX ETFs for buy and hold investors

    ETF written in white on a multi coloured background.

    Buying and holding investments for the long term can be a great way to build wealth.

    But choosing what to own is important. Ideally, you want exposure to businesses and industries that have plenty of room to grow over the next decade and beyond.

    With that in mind, here are three ASX exchange traded funds (ETFs) that could be worth considering.

    Betashares Global Cybersecurity ETF (ASX: HACK)

    The first ETF I would look at is the Betashares Global Cybersecurity ETF.

    I think cybersecurity is an industry with a very promising long-term outlook.

    Just consider how much businesses have come to depend on technology. From banking and healthcare to retail and manufacturing, enormous amounts of valuable information are now stored and exchanged digitally.

    And as artificial intelligence (AI) becomes more widely used, keeping systems and information secure could become even more important.

    This creates opportunities for companies developing cybersecurity software and services.

    The Betashares Global Cybersecurity ETF provides exposure to a portfolio of these businesses, including companies involved in cloud security, network protection, and threat detection.

    I believe spending on cybersecurity will continue growing over the long term, which bodes well for its holdings.

    Global X FANG+ ETF (ASX: FANG)

    Another ASX ETF that could suit buy and hold investors is the Global X FANG+ ETF.

    This fund takes a concentrated approach to investing in some of the world’s biggest technology and growth companies.

    Its portfolio contains just 10 stocks, giving investors exposure to businesses operating in areas such as AI, cloud computing, ecommerce, and digital advertising.

    What I like about this fund is that many of these companies have already established dominant positions in their respective markets.

    They also have significant financial resources to keep investing in new products and technologies, which could help them remain leaders for years to come.

    Of course, holding just 10 companies makes this a higher-risk investment than a broadly diversified ETF.

    But for investors comfortable with that concentration, the Global X FANG+ ETF could offer substantial long-term growth potential.

    Betashares Asia Technology Tigers ETF (ASX: ASIA)

    A final ASX ETF to consider is the Betashares Asia Technology Tigers ETF.

    While US technology companies tend to dominate the headlines, some of the world’s most important technology businesses are based in Asia.

    This fund provides exposure to leading companies across markets including Taiwan, South Korea, and China.

    These businesses operate in areas such as semiconductor manufacturing, memory chips, ecommerce, and digital services.

    I particularly like the region’s importance to the global technology industry. The demand for more powerful computers, smartphones, data centres, and AI systems creates significant opportunities for Asian technology leaders.

    There is also considerable potential for digital services to grow as consumer spending and technology adoption increase across the region.

    For long-term investors looking beyond Wall Street, the Betashares Asia Technology Tigers ETF could be worth a closer look.

    The post 3 fantastic ASX ETFs for buy and hold investors appeared first on The Motley Fool Australia.

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    Motley Fool contributor James Mickleboro has positions in Betashares Capital – Asia Technology Tigers Etf. 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.

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