Money keeps pouring into two of the ASX’s most popular Vanguard exchange-traded funds (ETFs), and it’s not hard to see why. The Vanguard Australian Shares Index ETF (ASX: VAS) and Vanguard MSCI International Shares ETF (ASX: VGS) now collectively oversee roughly $40 billion in funds under management.

For a huge number of Australian investors, this pair effectively is the foundation of their portfolio. If I were starting from scratch, these two ETFs are exactly where I’d begin.

Building an investment portfolio from nothing can feel overwhelming. There are thousands of shares to sort through, endless opinions, and constant market noise pulling investors in every direction.

For beginners, ASX ETFs cut through all of that. Buy one fund, and you instantly own a slice of dozens, or hundreds of companies, without having to bet everything on picking the next big winner yourself.

VAS: owning corporate Australia in one trade

This top Vanguard ETF gives investors exposure to the 300 largest companies listed on the ASX. It’s a simple, one-click way to own a piece of corporate Australia.

Recent performance hasn’t been flashy. The fund is down around 3% over the past month and roughly 0.5% over 12 months. But chasing short-term returns misses the point of an ETF like this entirely.

What VAS really offers is broad exposure across Australian industries, paired with a genuinely attractive income stream. Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) sit among its largest holdings, each making up more than 10% of the fund.

The dividend yield currently sits around 3.8%. That is solid, but it’s worth remembering that Australian equities lean heavily on financials and resources. Buy VAS, and you’re making a concentrated bet on those two sectors whether you realise it or not.

VGS: the antidote to a home-country-only portfolio

This is where the second largest Vanguard ETF earns its place. It directly tackles the biggest weakness of an Australia-only portfolio: concentration.

VGS provides exposure to developed international markets and has returned around 8% over the past year. it spreads investors’ money across hundreds of companies well beyond the ASX. The US dominates the portfolio, with tech giants like Apple inc (NASDAQ: AAPL) and Nvidia Corp (NASDAQ: NVDA) each representing more than 5% of the fund at the time of writing.

That global reach matters. It reduces reliance on Australia’s relatively small, concentrated share market, and opens the door to industries and business models that barely exist on the ASX at all. Think large-scale semiconductor manufacturers, global software platforms and consumer tech giants.

None of that makes VGS risk-free, though. International markets can correct sharply and geopolitical shocks can hit hard. Currency swings in the Australian dollar can also chip away at returns for local investors.

The post The Vanguard ETFs I’d buy first if I were starting again appeared first on The Motley Fool Australia.

More reading

• Should I buy CBA shares before the end of September?
• Why I’d invest $50,000 of superannuation into these 3 top ASX ETFs
• Soul Patts vs BHP: Which ASX share is best for beginners?
• 2 ASX blue-chip shares that won’t be hit by $100 oil
• How much passive income can I earn off an $800,000 superannuation balance?

Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple and Nvidia. The Motley Fool Australia has recommended Apple, BHP Group, Nvidia, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Commonwealth Bank of Australia (ASX: CBA) shares crashed lower in August, and the declines have continued through most of September so far.

At the time of writing, the ASX bank stock is down around 0.2% to $153.13 a piece. Today’s decline means the shares are down around 5% for September so far and 6% for the year to date.

For context, the S&P/ASX 200 Index (ASX: XJO) is up around 0.3% in Wednesday morning trade. This index is down around 3% for September so far and roughly 0.5% higher for the year to date.

Now the question is, should I buy CBA shares in the dip? 

Could the shares rebound next month or is there more downside to come?

What has happened to CBA shares in September?

After a difficult August, CBA shares started trending higher in the first week of September, but then the tumble resumed. 

The banking giant has faced several persistent headwinds this month, including a cooling property market and renewed forecasts for more interest rate increases.

The Reserve Bank of Australia (RBA) is now widely expected to hike interest rates next week on the 29th of August. All four of Australia’s major banks, including CBA, are forecasting a 25-basis-point increase when the board meets next week.

The change in sentiment is driven by rising oil prices amid escalating conflict in the Middle East, a stubbornly high inflation rate, and a tight jobs market.

RBA governor Michele Bullock recently warned that Australia’s jobs market was still putting upwards pressure on wages, business costs, and inflation. She said that unemployment may need to rise to tame inflation, adding that an unemployment rate of 4.5% to 5% could help ease inflation pressure.

And all this is happening against a backdrop of a highly competitive mortgage market. CBA often has to cut mortgage prices and squeeze its net interest margins to remain competitive. And this eats into the bank’s profits.

Should I buy CBA shares before the end of the month?

Brokers are pretty pessimistic about the outlook for CBA shares over the next 12 months. 

Market Index data shows that all brokers have a strong sell rating on the banking giant’s shares. The average $125.20 target price implies a potential 18% downside, at the time of writing.

TradingView data shows something very similar. Out of 16 analysts, 14 have a sell or strong sell rating on the shares. Another two rate the bank stock as a hold.

They all agree that a downside is ahead, however. The average $128.29 target price implies a potential 16% downside ahead. But some still think the share price could fall by up to 41%, to just $90 a share.

Shaw and Partners rates CBA shares as a sell and warns that, with a price-to-earnings (P/E) ratio of around 23.5, CBA is the highest of the big four ASX 200 bank stocks.

The broker added that Federal Government initiatives to increase housing supply and improve affordability are likely to intensify competition and place even more pressure on lending margins.

Medallion Financial Group also has a sell recommendation on CBA shares. The broker thinks that the bank’s valuation is stretched and that better valuation opportunities exist elsewhere.

With forecasts like this, I think there is a very good chance that CBA shares will fall further in October.

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

More reading

• The Vanguard ETFs I’d buy first if I were starting again
• Why I’d invest $50,000 of superannuation into these 3 top ASX ETFs
• 2 ASX blue-chip shares that won’t be hit by $100 oil
• How much passive income can I earn off an $800,000 superannuation balance?
• Are the BHP and CBA share price headed for parity?

Motley Fool contributor Samantha Menzies 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.

Myer Holdings Ltd (ASX: MYR) shares are leaping higher today.

The All Ordinaries Index (ASX: XAO) department store owner closed yesterday trading for 17.5 cents. In morning trade on Wednesday, shares are changing hands for 19 cents apiece, up 8.6%.

For some context, the All Ords is up 0.3% at this same time.

This outperformance follows the release of Myer’s full-year FY 2026 results.

Here are the highlights.

Myer shares jumping higher

For the 12 months to 25 July, Myer reported total sales of $4.09 billion, up 0.7% from FY 2025 on a comparable basis.

The company’s cost of doing business (CODB) came in at $1.19 billion, which management said reflected the inclusion of Myer Apparel Brands and investments to drive strategic priorities.

Myer shares are soaring today, despite the company reporting underlying earnings before interest and tax (EBIT) of $139 million, down 7% year on year on an actual basis and 23.5% lower on a pro forma basis.

On the bottom line, the department store reported underlying net profit after tax (NPAT) of $42.5 million, down 2.9% on an actual basis and down 32.1% on a pro forma basis.

With profits sliding, Myer will not pay a final FY 2026 dividend. The company paid a fully franked interim dividend of 1.5 cents a share on 21 May.

As for the first eight weeks of FY 2027, Myer’s comparable sales are up 0.2% while actual sales are 2.7% lower than the first eight weeks of FY 2026.

What did management say?

Commenting on the results that are lifting Myer shares today, chair Olivia Wirth said, “The second half of FY26 was characterised by a volatile and significantly more challenging macroeconomic and retail environment than 1H26 or FY25.”

Wirth added:

While our performance in the first four months of 2H26 was mixed, including a stronger May, we observed a material downturn in consumer sentiment. This was particularly evident in June and July, adding to subdued consumer sentiment and weak discretionary spending.

Despite these challenges, we continued to progress our Myer Group Growth Strategy, Value Creation program and integration activities.

Can Solomon Lew revive Myer shares?

Even with today’s gains factored in, Myer shares remain down 60.4% since this time last year.

But the company appears to be banking on the return of billionaire investor Solomon Lew to help turn the ship around.

In a separate announcement this morning, Myer revealed that Lew has been appointed to the board as a Non-Executive Director, effective tomorrow, 24 September.

Lew, Myer’s largest shareholder, was voted off the board back in 2002.

Commenting on his appointment, Wirth said:

We are pleased to welcome Sol to the board. His deep retail expertise and strong economic alignment to Myer Group as our largest shareholder will be important in helping to drive long-term value creation for all our shareholders.

Sol knows the retail sector inside and out. We are confident that the board and Myer Group will benefit greatly from his vast experience and expertise.

The post Why are Myer shares rocketing 9% on Wednesday? appeared first on The Motley Fool Australia.

More reading

• ACCC blocks Insurance Australia Group’s RAC Insurance acquisition
• Down over 50%: 2 ASX shares to buy for global growth
• Ventia wins $110 million WA contract extension
• Electro Optic Systems vs Droneshield: Which ASX defence share wins?
• Is the Woolworths share price a buy in September?

Motley Fool contributor Bernd Struben 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 Myer. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.