By now, you’d probably be aware that the Reserve Bank of Australia (RBA) increased interest rates yesterday. The RBA’s 25-basis-point hike was the third time interest rates have been increased in 2026. The new cash rate of 4.60% is the highest Australians have seen since late 2011. This move has profound implications for ASX shares and Australian investors. So let’s get into how we should be investing in a high-rate world.

Most people associate an interest rate hike with higher mortgage payments. Whilst that is probably the most obvious and painful consequence of a rise in interest rates, there are other consequences as well.

The RBA made this move in order to tame the sticky inflation that has crept into the Australian (really the global) economy. Yes, higher interest rates mean that banks and other lenders must charge higher interest rates of their own on mortgages, business lending, and other lines of credit. But it also works to encourage saving over spending by bumping up the interest rates we can receive on products like term deposits, savings accounts, and government bonds.

As such, higher rates have traditionally been bad news for the share market. For one, they slow economic activity, which increases pressure on any company trying to extract profits from the Australian economy. For another, investors have a higher incentive to leave their cash in a safe investment like a term deposit, rather than risking it on the share market.

Higher rates also tend to have an impact on how investors value ASX shares, and not in a good way. But we’ll leave that for another time.

So how does one invest in this kind of environment? Well, I can only tell you what I’m doing.

ASX shares or cash?

For starters, I am not selling out of any of my high-conviction ASX share investments. The data consistently tells us that the share market is the place where the best investing returns are generated. That’s irrespective of how high or low interest rates are.

Saying that, I have slowed down my buying. With a safe, risk-free return of what is now approaching 5.5% from many savings accounts, I am keeping more of my cash in the bank. I think this is prudent, given what is going on in the world right now. I don’t know what the future holds. But I do know that periods of high interest rates have often ended in recessions in the past. Thus, it makes sense to take advantage of these high rates while we can, and perhaps deploy that cash into more ASX shares once rates start falling.

I won’t be putting the majority of my capital into cash. International and ASX shares will remain the core of my investing portfolio for a long time to come. However, I do think that the relatively high returns that cash offers today are something to note. Depending on your own circumstances, it might be worth another look at the structure of your own portfolio.

The post Cash rate at 4.6%: Here’s how I’m investing in ASX shares 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.

Global X has announced the estimated distribution amounts for a variety of its ASX exchange-traded funds (ETFs).

The ex-dividend date is Friday, 2 October.

In order to be eligible to receive an upcoming distribution, you must own the ASX ETF before it goes ex-dividend.

Global X reveals next lot of dividends for ASX ETFs

Here are the distribution amounts, rounded to two decimal places.

Global X will confirm the final payment figures tomorrow.

Investors will receive their distributions on 19 October.

Global X is offering a distribution reinvestment plan (DRP) for all of these ASX ETFs.

If you would like Global X to use your dividends to buy more units, you must complete a DRP election form.

Global X registrar, Computershare Ltd (ASX: CPU), needs to receive your DRP election form by 5pm AEST tomorrow.

ASX ETF name	Distribution amount
Global X Australia 300 ETF (ASX: A300)	44.32 cents per unit
Global X S&P/ASX 200 Covered Call Complex ETF (ASX: AYLD)	11.14 cents per unit
Global X Australian Bank Credit ETF (ASX: BANK)	6.34 cents per unit
Global X Australia ex Financial & Resources ETF (ASX: OZXX)	9.32 cents per unit
Global X Nasdaq 100 Covered Call Complex ETF (ASX: QYLD)	8.54 cents per unit
Global X Russell 2000 ETF (ASX: RSSL)	1.43 cents per unit
Global X USD High Yield Bond (Currency Hedged) ETF (ASX: USHY)	12.42 cents per unit
Global X USD Corporate Bond (Currency Hedged) ETF (ASX: USIG)	10.44 cents per unit
Global X US Treasury Bond (Currency Hedged) ETF (ASX: USTB)	8.13 cents per unit
Global X S&P 500 Covered Call Complex ETF (ASX: UYLD)	6.29 cents per unit
Global X S&P/ASX 200 High Dividend ETF (ASX: ZYAU)	16.52 cents per unit
Global X S&P 500 High Yield Low Volatility ETF (ASX: ZYUS)	12.81 cents per unit

Vanguard has also announced its next batch of estimated distributions for its ASX ETFs.

They include the most popular ETF on the Aussie market, Vanguard Australian Shares Index ETF (ASX: VAS), as well as Vanguard Australian Shares High Yield ETF (ASX: VHY), and Vanguard MSCI Index International Shares ETF (ASX: VGS).

The ex-dividend date for Vanguard distributions is tomorrow. Vanguard will pay investors on 16 October.

BlackRock has also announced its next lot of estimated distributions for iShares S&P 500 ETF (ASX: IVV) and many others.

Those ETFs have already gone ex-dividend. BlackRock will pay its ETF investors on 9 October.

A group of 15 other ASX stocks and REITs are going ex-dividend this week.

The post ASX ETF dividends: Global X reveals next payments appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has positions in Vanguard Australian Shares High Yield 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 iShares S&P 500 ETF. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF, 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.

There has been a sell-off among some of the real estate investment trusts recently, which analysts argue is creating a buying opportunity.

I’ve selected two research reports published this week that make the case that the trusts in question have been oversold and are now worth a look for investors.

Let’s see who the analysts like.

HomeCo Daily Needs REIT (ASX: HDN)

HomeCo is down nearly 20% on a 12-month basis and is trading not far above its low for the period.

The shares have been sold off, particularly since the release of HomeCo’s results on 13 August.

Bell Potter has run the ruler over the company and believes the shares now represent good value.

One major selling point is the dividend yield, which is now sitting at 8.2%.

Bell Potter also argues that the sell-off in the shares has been overdone.

The broker said:

The stock has fallen 13.3% since results and underperformed peers over 3 months, a reaction we view as disproportionate to the underlying 2.2% FY27 earnings decline.  

Bell Potter said they expected earnings to trough this financial year, with growth returning in FY28 as the cost of debt reduces, assets are sold, and developments are completed.

The broker added that retail supply was lagging demand, “driving vacancy down and rental growth up”.

Bell Potter has a buy recommendation on HomeCo shares with a price target of $1.20 compared to $1.08 currently.

Charter Hall Group Ltd (ASX: CHC)

UBS believes Charter Hall has been oversold since early August and calls the company a “top pick” in the real estate sector.

The broker said:

Of the large cap REITs, CHC’s relative returns are most negatively correlated to bond yields which are up ~50bp in the past two months. While rising yields are clearly a headwind for the business (e.g. via lower valuations and transaction volumes), we think the market is assigning too much weight to a downside outcome despite a more resilient earnings base this cycle.

UBS said the market was likely wary of the shares, which were heavily sold off during the last interest rate increase cycle in 2022-23.

But the broker said the current rate cycle is far less dramatic, and “property values should hold up better given sharp devaluations booked across 2022-24”.

UBS has slightly reduced their price target on Charter Hall from $24.50 to $24, but that’s still well above the current level of $18.56.

Charter Hall is valued at $8.38 billion.

The post 2 ASX real estate funds that could return 23% to 35% appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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 HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.