Exchange-traded funds (ETFs) can be a simple way to start investing without having to choose individual shares.

Betashares has plenty of funds available on the ASX, but I think these three are among the best to consider for beginners.

Here is why.

Betashares Diversified All Growth ETF (ASX: DHHF)

The DHHF ETF would be one of my first choices for someone who wants to keep things simple.

Rather than focusing on one country or sector, the fund invests across Australian and international shares.

That means a single investment can provide exposure to thousands of growth companies around the world.

I think this can be helpful for beginners because diversification is built into the fund. An investor does not need to decide how much money to put into Australian shares, US shares, or emerging markets and then continually rebalance everything themselves.

For someone investing with a long timeframe, I think the Betashares Diversified All Growth ETF offers a straightforward way to own a broad collection of businesses and benefit if global share markets grow over time.

Betashares Australia 200 ETF (ASX: A200)

The A200 ETF is another fund I think beginners could consider.

It tracks 200 of the largest stocks listed on the ASX, providing exposure to a large part of the Australian share market through a single investment.

That includes businesses operating across areas such as banking, resources, healthcare, telecommunications, retail, and technology.

I like how simple this makes investing, which is good for beginners. Instead of trying to decide which Australian shares will perform best, investors can own a broad selection and participate in the overall performance of the local market.

There is also an income angle. Many large Australian shares pay dividends, which means the fund can provide distributions alongside potential capital growth.

Betashares Global Quality Leaders ETF (ASX: QLTY)

For investors wanting more international exposure, I think the QLTY ETF is worth a look.

Rather than simply buying the world’s largest stocks, the fund looks for businesses displaying characteristics such as strong profitability, relatively stable earnings, and healthy balance sheets.

I like that approach because it focuses on companies that have already demonstrated financial strength.

The portfolio also gives Australian investors access to businesses and industries that are not well represented on the ASX. That can provide another source of long-term growth while reducing reliance on the Australian market.

For a beginner looking internationally, I think the Betashares Global Quality Leaders ETF provides an easy way to invest in a collection of established global businesses.

Foolish takeaway

I think all three of these Betashares ETFs make investing relatively easy.

The DHHF ETF provides broad diversification in one fund, the A200 ETF offers exposure to the Australian share market, and the QLTY ETF focuses on financially strong global businesses.

Overall, for a beginner, I think the most important thing is choosing an investment that makes sense to them and that they would be comfortable holding through the inevitable ups and downs of the share market.

The post 3 top Betashares ETFs for beginners to buy appeared first on The Motley Fool Australia.

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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 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.

Fortescue vs Commonwealth Bank shares: Which is better for passive income?

If you’re hunting for passive income from ASX blue chips, Fortescue Ltd (ASX: FMG) and Commonwealth Bank of Australia (ASX: CBA) are both giants, yet offer quite different flavours of dividend investing. Let’s stack them up side-by-side to see which could make the better addition to a passive income-focused portfolio.

The case for Fortescue

Fortescue is one of the world’s largest iron ore miners, operating huge integrated sites across Western Australia’s Pilbara region. With a vast mining, rail, and port footprint, it’s a heavy-duty exporter to Asian steel mills. As of its recent company profile, Fortescue sits among the ASX’s top companies, having grown rapidly by tapping into surging global iron ore demand.

The key passive income drawcard? Fortescue’s outstandingly high, fully franked dividend yield — a juicy 6.46%. Fortescue has also consistently franked its dividends at 100%. Over recent years, it’s paid out generous half-yearly dividends, rewarding shareholders in good times.

However, iron ore mining is a cyclical game. The company’s YTD return sits at -19.1%, reflecting both volatility in iron prices and perhaps broader market caution toward commodity exposures.

Notable stats:

• Market cap: $51.48 billion
• P/E ratio: 12.74
• Dividend per share: $1.08 (latest full-year)
• Dividend yield: 6.46% (fully franked)

The case for Commonwealth Bank of Australia

Commonwealth Bank is Australia’s largest bank by market cap – a household name, and a top dividend payer for many years. Its sprawling operation covers retail, business and institutional banking, wealth, insurance and more – both here and overseas. As of its most recent public description, it’s regarded as a pillar of banking stability in Australia, with a reputation for conservative management and wide reach.

For passive income investors, CBA offers a much lower headline dividend yield than Fortescue – at 3.31%. But every dividend since at least 2003 has been fully franked, and CBA has a long track record of payout reliability and gradual growth, having increased its annual dividend steadily over the years.

CBA’s share price is also known for its relative stability compared to most mining stocks.

Key numbers:

• Market cap: $256.02 billion
• P/E ratio: 23.39
• Dividend per share: $5.05 (latest full-year)
• Dividend yield: 3.31% (fully franked)

Valuation comparison

Let’s compare the main passive income and valuation metrics side-by-side:

	Fortescue Ltd	Commonwealth Bank of Australia
Market Cap	$51.48 billion	$256.02 billion
P/E Ratio	12.74	23.39
Dividend Yield	6.46% (fully franked)	3.31% (fully franked)
Dividend per share	$1.08	$5.05
Year To Date Return	-19.1%	-1.9%

Worth noting: Fortescue trades on a much lower P/E than CBA, but mining and banking sectors normally have different valuation ranges. Both companies offer 100% franking.

Recent share price performance

Comparing the past month:

• Fortescue shares dropped from $17.93 on 24 August 2026 to $16.72 on 21 September 2026, a fall of about 6.7% over these four weeks. The YTD return stands at -19.1%.
• Commonwealth Bank shares fell from $156.88 on 24 August 2026 to $152.43 on 18 September 2026, a smaller drop of about 2.8% over this period. The YTD return is -1.9%.

Which is the better buy?

If I’m focusing purely on passive income, my pick would be Fortescue. The main appeal is that much higher, fully franked dividend yield – almost double CBA’s, according to the latest data. That’s hard to ignore for income investors, provided you’re comfortable with the big swings that come with mining stocks.

CBA is the safer, more stable option with an impressive record of steady payouts and lower price volatility. But for someone seeking immediate, generous passive income, Fortescue stands out. I’d stress, though, that Fortescue’s payout can be lumpy, as it’s closely tied to the iron ore price, so future yields may swing around more than CBA’s. If I wanted reliability above all else, I might still lean toward CBA, but on headline yield and franking, Fortescue clinches it for me right now.

The post Fortescue vs Commonwealth Bank: Which is best for passive income? 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 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 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.

Official interest rates are almost certain to be raised when the Reserve Bank of Australia Board (RBA) meets next week, raising the question: what does that mean for your portfolio?

Canaccord Genuity has just released a research report looking into the sectors which tend to do well, and those that tend to suffer as interest rates increase.

Interest rate increase all but certain

The broking house said in its report that expectations for an interest rate hike had increased sharply over the past few months due to persistently high inflation, exacerbated by rising oil prices due to the conflict in the Middle East.

CG added:

The RBA is now very likely to hike the cash rate by 25bps later this month, and markets are also pricing in one to two further hikes beyond September. While accumulating evidence of a slowing economy may allow the RBA to hold rates after September, the policy outlook is nevertheless materially more restrictive than envisaged this time last year.

The broking house said upward pressure on interest rates, a deteriorating consumer backdrop, a softer housing market and slowing economic growth all presented headwinds for Australian shares from a valuation and earnings perspective.

They added:

These pressures have contributed to a ~5% pullback in the ASX 200 since early August, with outsized declines across the rate-sensitive Retail (-18%) and Real Estate (-13%) sectors, as well as growth sectors such as IT (-14%).

CG said the sectors with the strongest negative correlations with interest rates included real estate, retail and information technology.

CG added:

Recent trading updates have pointed to a softening consumer backdrop, with names such as JB Hi-Fi Ltd (ASX: JBH) reporting negative top-line growth in early FY27. Wesfarmers Ltd (ASX: WES) has also shown a negative correlation with short-term rates, consistent with its exposure to discretionary household spending and its sensitivity to the housing market through its Bunnings franchise.

CG said online classifieds companies such as Seek Ltd (ASX: SEK) and REA Group Ltd (ASX: REA) have in the past shown strong negative correlations with rate increases, which, “partly reflects the degree of cyclicality in their earnings, being tied to job ads and property listings, respectively, as well as the valuation impact of higher long-term yields on growth-orientated companies”.

Infrastructure owners such as Transurban Group Ltd (ASX: TCL) and APA Group Ltd (ASX: APA) were also sensitive to rate increases due to their reliance on debt funding.

Small ray of hope in energy

On the positive side of the ledger, CG said energy stood out as the one sector with a clear positive correlation, “with changes in both short-end rates and longer-term yields over the past three years”.

The post Where to invest as interest rates charge higher appeared first on The Motley Fool Australia.

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• How to build a $50,000 passive income from ASX shares
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Motley Fool contributor Cameron England has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group and Transurban Group. 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.