Australian investors have plenty of opportunities for capital growth with domestic stocks.

However, some investors might not be aware the Aussie market is heavily weighted towards big banks and mining companies.

In reality, the S&P/ASX 200 Index (ASX: XJO) is one of the most concentrated developed-market indices on the planet.

According to VanEck, the top 5 securities account for roughly 32% of the ASX 200 Index. 

This means that many investors might be overexposed to the performance of these blue-chip stocks without realising. 

Why international ETFs make sense

A key point to remember is that diversifying internationally doesn’t necessarily mean abandoning the ASX. 

An Australian investor can retain domestic exposure while using ASX-listed international ETFs to broaden their portfolio.

This can transform a portfolio that is heavily dependent on Australian banks and miners into one with much broader exposure to the global economy.

Sectors like technology and healthcare are underrepresented here in Australia. 

By targeting international ASX ETFs, Aussie investors can gain exposure to these underrepresented markets. 

In short, the more concentrated the home market, the greater the potential benefit from looking beyond it. 

For Australian investors, international ASX ETFs can complement domestic holdings by diversifying sectors, companies, economies, and sources of growth.

With that in mind, here are three international funds that can provide instant geographic diversification. 

Vanguard MSCI Index International Shares ETF (ASX: VGS)

This is one of the most popular internationally focused ASX ETFs. 

It complements an Australian-dominated portfolio as it includes 1,300 companies from 23 developed countries, excluding Australia. 

The fund offers greater access to sectors such as technology and health care that aren’t as well represented in the Australian share market.

In the last 5 years, it has risen more than 54%, vastly outpacing the ASX 200. 

iShares S&P 500 ETF (ASX: IVV)

Another popular fund focused on overseas equities is this ASX ETF from iShares. 

The fund aims to provide investors with the performance of the S&P 500 Index (SP: .INX), before fees and expenses. 

The index is designed to measure the performance of large capitalisation US equities.

Its high growth profile is heavily weighted towards technology companies, including Nvidia and Apple. 

In the last 5 years, it has increased by an impressive 70%. 

BetaShares Nasdaq 100 ETF (ASX: NDQ)

For investors looking for a more highly concentrated US exposure, this fund is an ideal candidate. 

It aims to track the performance of the NASDAQ-100 Index (NASDAQ: NDX) (before fees and expenses). 

The NASDAQ-100 comprises 100 of the largest non-financial companies listed on the Nasdaq market, and includes many companies that are at the forefront of the new economy.

In the last 5 years, it’s enjoyed a rise of roughly 75%. 

The post Why every Aussie investor should own one of these ASX ETFs appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in BetaShares Nasdaq 100 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 BetaShares Nasdaq 100 ETF and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Woodside Energy Group Ltd (ASX: WDS) share price is in focus after the company reported a 13% rise in operating revenue to US$7,446 million and declared a fully franked interim dividend of 57 US cents per share for the half-year ended 30 June 2026.

What did Woodside Energy Group Ltd report?

• Operating revenue rose 13% to US$7,446 million (H1 2025: US$6,590 million)
• Net profit after tax (NPAT) was US$1,672 million, up 27% from H1 2025
• Underlying NPAT of US$1,334 million, a 7% increase year-on-year
• EBITDA (excluding impairment) was US$4,647 million
• Free cash flow of US$352 million, up from US$136 million a year ago
• Fully franked interim dividend of 57 US cents per share (80% payout ratio)

What else do investors need to know?

Woodside delivered strong production of 86.5 million barrels of oil equivalent, although this was a 13% decline from last year due to planned turnaround and cyclone impacts. Unit production costs rose to US$8.8 per barrel of oil equivalent. Key major projects progressed well, with Scarborough 98% complete and on track for first LNG cargo in the fourth quarter of 2026. The Trion project offshore Mexico reached 64% completion, and Louisiana LNG reported 28% completion.

The balance sheet remains robust with liquidity of US$8,189 million. Gearing increased slightly to 20.6%, just outside the target range, due in part to new lease liabilities and hedge settlements. The interim dividend represents a yield of 5.9% and the dividend reinvestment plan remains suspended.

What did Woodside Energy Group Ltd management say?

Woodside’s CEO, Liz Westcott, said:

We once again delivered strong production, cash flow and shareholder returns, while continuing to execute the next phase of growth. Keeping our people safe remains our highest priority… The Scarborough Energy Project is now 98% complete and remains on track to deliver first LNG cargo in the fourth quarter of 2026.

As we focus on Woodside’s next phase of disciplined delivery, we have announced a series of actions to lift performance and sharpen our focus on value. We have set an annual cost savings target of $350 million from 2028 to be delivered through the structured review of our business.

What’s next for Woodside Energy Group Ltd?

Looking ahead, Woodside reaffirmed full-year production and capital expenditure guidance. The company expects to complete key projects including Scarborough, Trion, and Louisiana LNG in line with previously announced timelines. Woodside continues work on asset portfolio optimisation, decommissioning activities, and expansion into lower-carbon and new energy opportunities.

The company is targeting cost savings of $350 million per year from 2028, with a renewed focus on operational discipline. Woodside is also progressing regulatory and development work on the Browse and Sunrise projects, as well as sustainability initiatives—aiming to underpin long-term returns for shareholders.

Woodside Energy Group Ltd share price snapshot

The Woodside share price has beaten the S&P/ASX 200 index (ASX: XJO) with a gain of around 25% over the past 12 months.

View Original Announcement

The post Woodside Energy half-year results: US$1,672 million profit and 57 US cents dividend appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. 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.

The Vanguard Australian Shares Index ETF (ASX: VAS) is a leading exchange-traded fund (ETF) for Australians wanting passive income.

The S&P/ASX 300 Index (ASX: XKO) is weighted towards a number of businesses with large dividend yields, which means VAS ETF investors get decent diversification as well as a solid dividend yield.

Many international-focused ETFs have very low dividend yields because the businesses inside those portfolios also have low dividend yields. ETFs simply pass through the dividends they receive to unitholders.

Thanks to the VAS ETF’s holdings, the investment can provide a pleasing distribution yield.

The Vanguard Australian Shares Index ETF has a large dividend yield

Dividends are not guaranteed of course, but payouts can be much more consistent than capital growth because dividends are funded from earnings but capital growth requires share prices to rise, which can be unpredictable at the best of times with the share market.

The Vanguard Australian Shares Index ETF regularly tells investors the fund’s dividend yield, which is the weighted average yield of the shares it holds. In other words, its largest holdings of BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA) play a much more important role in the yield of the VAS ETF than the two smallest positions.

Nearly all of the top 10 holdings inside the VAS ETF pay pleasing passive income, in my view. That includes BHP, CBA, Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), ANZ Group Holdings Ltd (ASX: ANZ), Wesfarmers Ltd (ASX: WES), Macquarie Group Ltd (ASX: MQG). Rio Tinto Ltd (ASX: RIO) and Woodside Energy Group Ltd (ASX: WDS). Goodman Group (ASX: GMG) is the only one with a low yield.

According to Vanguard, the VAS ETF had a dividend yield of 3.1% at the end of July 2026. Compared to many other broad-based ETFs, that’s an attractively high dividend yield.

How many VAS ETF units to pay for $10,000 of passive income?

With a dividend yield of 3.1%, an investor would need to own a sizeable amount of VAS ETF to generate $10,000 of dividends each year.

Currently, an investor would need to own 2,867 VAS ETF units to generate that much passive income.

I think the Vanguard Australian Shares Index ETF is a solid investment option for the long-term, with low management fees, around 300 holdings and a track record of decent returns, though it could be helpful to look at other ASX shares with strong growth potential.

The post How many Vanguard Australian Shares Index ETF (VAS) units do I need to buy for $10,000 of passive income? appeared first on The Motley Fool Australia.

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