A broad index fund can be a great way to build wealth, but some exchange-traded funds (ETFs) take a more selective approach.

If I wanted to give myself a chance of outperforming the wider market over the long term, these are three ASX ETFs I would consider.

Betashares Global Quality Leaders ETF (ASX: QLTY)

The QLTY ETF looks for global companies displaying characteristics such as strong profitability, healthy balance sheets, and relatively stable earnings.

I like this approach because long-term wealth creation often comes from businesses that can keep reinvesting successfully rather than simply being large.

The portfolio includes companies from several industries and countries, so investors are not relying on one particular sector to deliver the returns.

Quality businesses can still become expensive or experience disappointing periods, of course. But over a long timeframe, I think concentrating more money in companies with strong financial characteristics gives the fund a reasonable chance of producing attractive returns.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The MOAT ETF takes the idea one step further by considering both business quality and price.

It invests in US companies that have sustainable competitive advantages, or economic moats, while also trading below fair value.

Those advantages could come from strong brands, switching costs, network effects, or other characteristics that make it difficult for competitors to take customers and profits away.

I particularly like the valuation element. Owning a great company does not guarantee a great investment if the starting price is too high. The MOAT ETF regularly adjusts its portfolio towards businesses offering the most attractive combination of competitive strength and valuation.

That gives it a different process from an index that simply puts the most money into whichever companies have the largest market values.

Betashares Australian Quality ETF (ASX: AQLT)

I would also consider applying a quality filter closer to home.

The AQLT ETF invests in Australian shares selected using measures including profitability, earnings stability, and financial leverage.

I think this could be a good alternative to simply owning the entire Australian market.

Traditional market-cap-weighted funds can become heavily influenced by the largest companies and sectors on the ASX. The AQLT ETF instead asks whether a business demonstrates strong financial characteristics.

That can result in a portfolio focused on companies that have already demonstrated an ability to generate strong returns from their businesses.

There is no guarantee that those characteristics will lead to market-beating performance, but I think the process makes sense for investors willing to take a more selective approach.

Foolish takeaway

Trying to beat the market is difficult, and even professional investors regularly fall short.

That is why I would want a clear reason for moving away from a simple index fund.

For me, quality, sustainable competitive advantages, and sensible prices are three characteristics worth backing.

These ETFs package those ideas into diversified portfolios, giving investors a way to pursue outperformance without having to pick stocks themselves.

The post 3 strong ASX ETFs I’d buy to try and beat the market appeared first on The Motley Fool Australia.

More reading

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• 3 super ASX ETFs for beginner investors
• Here are 3 top Betashares ETFs I’d buy now
• 3 strong ASX ETFs for smart investors to buy and hold
• 3 Betashares ETFs I’d buy and hold for 10 years

Motley Fool contributor Grace Alvino 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 recommended VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

CSL Ltd (ASX: CSL) has given investors plenty to think about this year.

The biotechnology giant has been through a difficult period, but the outlook now suggests earnings could move steadily higher over the next few years.

So, would I buy the shares before August is over?

The earnings outlook catches my attention

CSL shares are currently trading around $172.79.

According to CommSec, consensus earnings per share forecasts now stand at $9.08 in FY27, $9.53 in FY28, and $10.15 in FY29.

That implies earnings growth of around 5% in FY28 followed by another 7% in FY29.

For me, the direction is encouraging.

CSL has spent the past few years dealing with higher costs, operational challenges, and weaker investor confidence. A sustained return to earnings growth would suggest the business is moving beyond some of those problems.

At the current share price, CSL trades on a PE ratio of roughly 19 times forecast FY27 earnings, falling to around 17 times FY29 earnings.

I think that looks reasonable if the company can deliver the growth analysts currently expect.

There are still good businesses underneath

The long-term investment case still rests heavily on CSL Behring.

Its plasma-derived therapies are used to treat serious and often chronic conditions, creating demand that can continue regardless of what is happening in the wider economy.

CSL has spent decades building the plasma collection, manufacturing, and distribution network needed to compete at global scale. That is not something a new competitor could reproduce quickly.

There are also newer products that could contribute more over time, while continued investment in manufacturing should help CSL serve growing demand for immunoglobulin and other plasma therapies.

I think that combination gives CSL a credible path to increasing earnings for years rather than relying on a short-term rebound.

I would still expect some bumps

CSL has hardly provided investors with a smooth ride recently.

The company has gone through restructuring, impairments, changing expectations, and periods when parts of the business have disappointed.

There are still risks to consider. The recovery could take longer than expected, costs could remain elevated, new products may not grow as quickly as hoped, and currency movements can affect a business earning revenue around the world.

That makes the consensus forecasts important to monitor rather than something I would simply assume will happen.

I would also expect the share price to remain sensitive to any change in the recovery story.

Foolish takeaway

Yes, I would buy CSL shares before the end of August.

The business still has work to do, and recent performance is a reminder that even high-quality companies can go through difficult periods.

But I think the expected earnings trajectory is moving in the right direction, while the current valuation leaves room for that recovery to create value for shareholders.

If CSL can rebuild momentum over the next few years, I think buying at around $172.79 could prove worthwhile for patient investors.

The post Should I buy CSL shares before the end of August? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Aussie mortgage holders and investors may be facing another interest rate rise, with expectations shifting quickly after the latest inflation figures.

The Reserve Bank of Australia (RBA) left the cash rate unchanged at 4.35% earlier this month after 3 hikes in 2026. But the chances of another increase are growing.

Attention is turning to the next RBA decision on 29 September, with several major banks changing their forecasts and financial markets also increasing the odds of another hike.

So, could interest rates really rise again next month?

Inflation keeps the pressure on

The latest Consumer Price Index (CPI) data showed annual inflation easing from 3.8% in June to 3.5% in July.

That sounds like a move in the right direction, but inflation was still higher than the 3.3% economists had expected. Trimmed mean inflation also stayed at 3.6%, which is still above the RBA’s 2% to 3% target range.

On a monthly basis, trimmed mean inflation rose 0.5%, ahead of expectations for a 0.3% increase.

The RBA was already keeping a close eye on inflation. Minutes from its August meeting showed board members discussed another 25-basis point hike before deciding to wait for more data.

And the RBA also got another strong economic reading, with household spending rising faster than expected.

Household spending rose 1.1% in July and was 7% higher than a year ago, with spending increasing across all 9 categories. It’s the strongest annual growth since June 2023.

What are the big banks predicting?

Three of Australia’s four major banks now expect another RBA rate hike before the end of 2026.

National Australia Bank Ltd (ASX: NAB) has the most aggressive forecast, predicting a 25-basis point increase in September, which would take the cash rate to 4.6%.

It also sees a risk of another hike in November if the economy continues to hold up.

Commonwealth Bank of Australia (ASX: CBA) and ANZ Group Holdings Ltd (ASX: ANZ) are both forecasting a rate rise in November, although CBA believes there is also a risk the RBA moves earlier in September.

Westpac Banking Corp (ASX: WBC) is taking a different view and still expects rates to stay unchanged for the rest of the year, pointing to a softer labour market and weaker housing conditions.

According to Reuters, markets are now pricing around a 50% chance of a September rate hike, up from 17% before the inflation data.

What happens next?

The next RBA decision is due on 29 September, so there are still a few weeks of economic data to come before the board makes its call.

Keep an eye on the September and November meetings, as they will now be the ones to watch.

The post Another RBA interest rate hike could be just weeks away. Here’s what the big banks think appeared first on The Motley Fool Australia.

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• CBA vs Westpac shares: Which is the best buy?
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Motley Fool contributor Aaron Teboneras 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.