Looking to put $10,000 to work on the ASX this October but not sure where to invest?

Exchange traded funds (ETFs) could be worth considering. They offer an easy way to invest in a collection of stocks without having to pick individual shares.

Here are four ASX ETFs that could be worth a closer look this month.

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF could be an excellent option for investors wanting exposure to the US share market.

This fund tracks the famous S&P 500 Index, giving investors access to 500 of America’s largest listed companies.

Its holdings include Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and Amazon (NASDAQ: AMZN), alongside major businesses operating in healthcare, financial services, consumer goods, and other industries.

Many of these companies generate significant revenue internationally, which means investors are gaining exposure to businesses that operate across the global economy.

With a long investment horizon, this ASX ETF could be well worth considering.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Another ASX ETF to consider buying in October is the Vanguard Australian Shares High Yield ETF.

This fund focuses on Australian stocks that are forecast to provide higher dividend yields than the broader share market.

Its portfolio includes businesses from sectors such as banking, resources, telecommunications, and consumer goods.

This could be particularly attractive for investors looking to generate passive income while retaining exposure to potential capital growth.

Another positive is the fund’s distributions also include some franking credits, which can provide additional benefits to eligible Australian investors.

Vanguard FTSE Asia ex Japan Shares Index ETF (ASX: VAE)

The Vanguard FTSE Asia ex Japan Shares Index ETF invests in companies across major Asian markets, including China, Taiwan, South Korea, India, and Singapore.

This gives investors access to businesses operating in technology, manufacturing, financial services, healthcare, and consumer markets.

Asia is home to some of the world’s largest economies and most important technology companies. It also has growing consumer markets and a rising middle class that could support economic growth over the long term.

This makes the Vanguard FTSE Asia ex Japan Shares Index ETF an option to consider for investors seeking opportunities outside Australia and the United States.

Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

A final ASX ETF worth considering in October is the Betashares Global Robotics and Artificial Intelligence ETF.

This fund invests in stocks involved in robotics, automation, artificial intelligence, and related technologies.

From manufacturing and logistics to healthcare and agriculture, robotics and intelligent machines have the potential to change how numerous industries operate.

As technology improves and adoption increases, the companies developing these solutions could enjoy significant growth.

This could make the Betashares Global Robotics and Artificial Intelligence ETF an attractive option for investors seeking exposure to a long-term technology theme.

The post Where to invest $10,000 in ASX ETFs in October appeared first on The Motley Fool Australia.

More reading

• My top 3 Vanguard ETFs for October
• 5 excellent ASX ETFs to buy in October
• VGS vs IVV: Which ETF would I buy with $10,000?
• How much must I invest in IVV ETF shares to earn a $1,000 passive income in 2027?
• Own US ETFs like IVV or NDQ? Here’s why your dividends are so low

Motley Fool contributor James Mickleboro 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 Amazon, Apple, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Amazon, Apple, Microsoft, Nvidia, Vanguard Australian Shares High Yield 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.

I’m backing ASX dividend stock WCM Global Growth Ltd (ASX: WQG) as one of the best picks for passive income on the ASX.

In my own portfolio, I’m building positions in businesses that pay strong dividends and have a track record of returns. I’m utilising dividend income to pay for certain discretionary expenses in life, and that’s helping boost my household’s finances.

Thankfully, WCM Global Growth is also delivering dividend growth and long-term capital growth, which means it’s giving me a trifecta of what I’m looking for financially – dividend yield, payout growth, and capital growth.

Let’s run through why the listed investment company (LIC) is a strong pick with a $3,000 investment for passive income.

Compelling investment strategy

WCM Global Growth is a California-based investment manager that specialises in global and emerging market shares. WCM specialises in global shares and emerging market shares.

The fund manager looks for two key criteria to be considered for inclusion in the WCM Global Growth portfolio.

First, it wants to see a rising competitive advantage (or expanding economic moat).

Second, WCM wants to see that the company has a corporate culture that supports the expansion of this moat.

The WCM investment team believe that the ‘direction’ of a company’s economic moat is of more importance than its absolute size. The research focuses on identifying companies with a positive moat trajectory, as measured by rising return on invested capital, rather than those with a large but static or declining economic moat.

Since its inception in June 2017, the LIC has delivered net returns of 15.6% per year, after fees, and is more than 2% per year stronger than the global share market benchmark return.

Those good returns allow the business to pay a rewarding dividend.

Large dividend yield

The ASX dividend stock has provided guidance that it will pay an annual dividend per share of 10.1 cents over the next 12 months.

At the time of writing, that means it’s going to deliver a dividend yield of 4.9% excluding franking credits and 7% including franking credits.

In my view, there are few businesses that are going to pay a dividend yield as good as that over the next 12 months and deliver growth.

Passive income growth

The LIC has a “progressive quarterly dividend policy”. In other words, it delivers a payout every quarter, and that dividend is growing every three months.  

Its latest quarterly dividend payment was 2.35 cents per share, paid on 30 September 2026. The LIC has shown how the dividend will progress over the next 12 months.

It plans to pay a quarterly dividend of 2.45 cents per share in December 2026 – that’s 4.25% higher than the September payment.

WCM Global Growth expects to pay a quarterly dividend of 2.5 cents per share in March 2027 – that’s 6.4% more than the September payment.

The LIC has guided that it will pay 2.55 cents per share in June 2027 – that’s an 8.5% increase compared to the September payout.

The ASX dividend stock plans to pay a quarterly dividend of 2.6 cents per share in September 2027 – that’s a year-over-year increase of 10.6%.

Its dividend has regularly grown over the last several years. I expect the business will be able to continue hiking its dividend at an inflation-beating rate in the coming years.

Capital growth

When LICs generate investment profits, they can decide to pay some of it as a dividend and smooth out the passive income returns for shareholders.

How much of the profit they pay will decide how much is retained to generate more returns. Retained profits help deliver capital growth as the LIC’s net tangible assets (NTA) grow.

The bigger the dividend yield LICs deliver, the less that’s retained for future growth. So, LICs need to strike the right balance between short-term dividends and retaining some profits for long-term performance.

Thankfully, WCM Global Growth’s investment returns have been sufficient to deliver a good dividend and add to its NTA over time. Over the past three years, the WCM Global Growth share price has risen by around 70%. Past performance is not a reliable indicator of future performance, of course.

$3,000 investment

By investing $3,000 at the time of writing, an investor can buy 1,463 shares of this ASX dividend stock, which I think would be a smart choice for passive income investors.

But, it’s not the only business I’d be willing to put $3,000 (or more) into to generate returns.

The post $3,000 buys 1,463 shares in an impressively reliable ASX dividend stock appeared first on The Motley Fool Australia.

More reading

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• How much is needed in superannuation to target a $10,000 monthly passive income?
• I’d buy 99,010 shares of this ASX stock to aim for $10,000 of annual passive income
• How much do I need to retire on $75,000 a year at 45?
• 33 ASX shares going ex-dividend next week

Motley Fool contributor Tristan Harrison has positions in Wcm Global Growth. 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.

It’s been an important week for the Australian economy.

Usually, in this space, I pick one issue and try to do it justice.

But today, I’m going to do something different.

Because three things happened that are worth talking about: the Reserve Bank raised interest rates again; we got another uncomfortable inflation number; and Trade Minister Don Farrell made some interesting comments about the role of our Superannuation savings.

They’re different issues.

But there are some threads running through all three.

So, let’s take them in turn.

First, interest rates.

Unless you’ve been living under a rock, you’ll know that on Tuesday, the RBA lifted the cash rate by another 0.25 percentage points, to 4.60%.

It was the fourth increase this year, taking the cumulative increase in 2026 to a full percentage point.

That hurts. 

For someone with a $500,000 mortgage, the four increases together mean roughly an extra $300 a month in repayments. On a $1 million mortgage, it’s more than $600.

Now, it’s tempting to blame the RBA.

But I think that risks missing the bigger issue.

The RBA has a job to do. Inflation is too high, and its mandate requires it to do something about that.

The problem is that we’ve effectively decided that the Reserve Bank should do almost all or just ‘all’?) of the heavy lifting.

And its primary tool – the official cash rate – is incredibly blunt.

It disproportionately hits people with mortgages. Renters can get caught in the crossfire. Savers can actually benefit.

Meanwhile, plenty of other Australians barely notice.

That’s why I keep coming back to fiscal policy.

A structurally-balanced Budget – where deficits in some years and offset by surpluses in other years – should act as what the boffins call an ‘automatic stabiliser’.

When the economy is weak, tax receipts fall and welfare spending rises, supporting demand.

When the economy is running hot, the reverse should happen: tax receipts rise, spending growth moderates and the Budget takes some heat out of the economy.

If that second half was working more effectively today, monetary policy wouldn’t have to do quite as much.

Which brings me to inflation.

On Wednesday we learned that annual headline inflation had risen from 3.5% to 4.0% in August. Trimmed-mean inflation – which removes some of the more volatile price movements – remained at 3.6%.

Some of that is coming from things largely outside Australia’s control.

Energy prices have risen sharply. The RBA itself pointed this week to global oil disruptions and the Middle East conflict.

But that’s not the whole story. The central bank also says there are still domestic capacity pressures, and businesses are reporting higher costs and raising prices.

There’s a temptation, whenever inflation comes from something we don’t particularly like or can’t easily control, to say: “Well, the RBA can’t fix that.”

And strictly speaking, that’s true.

Higher interest rates won’t produce another barrel of oil.

But that doesn’t mean we can simply ignore inflation.

Because higher rates can reduce demand, and hence price pressures.

Why does that matter?

Well, one of the nasty things about inflation is that the price rises tend to stick.

If inflation falls from 4% to 2%, prices don’t go back to where they were. They simply increase more slowly from the new, higher level.

That’s why getting inflation under control matters. The longer it remains too high, the more permanent damage it does.

But it also reinforces the earlier point: if inflation is important enough to fight – and it is! – surely we should be making sure we’re using all of the available tools rather than repeatedly reaching for the same, imperfect, inexact and blunt, one.

And that brings me, slightly unexpectedly, to superannuation.

Trade Minister Don Farrell reportedly suggested this week that Australian Super funds could invest in the US lamb industry as part of Australia’s efforts to head off additional American tariffs on our lamb exports.

In doing so, he said Australian superannuation funds had an obligation to the “national interest”.

There’s an important distinction worth making here.

Governments clearly have a responsibility to act in the national interest. That’s why they have powers over taxation, spending, regulation and trade policy.

Superannuation trustees operate under a different set of responsibilities. Among them is a legal obligation to act in members’ best financial interests. APRA has repeatedly reinforced the importance of that duty.

That doesn’t mean super funds shouldn’t invest in Australian infrastructure, housing, businesses – or, for that matter, American agriculture.

They should assess whatever opportunities are available.

And sometimes an investment that is attractive for members will also produce a desirable public-policy outcome.

Wonderful.

The important question is which way around the decision is made.

Does an investment stack up on its merits for members, with a national benefit as a welcome consequence?

Or does government first identify a national objective and then expect trustees to use members’ retirement savings to help achieve it?

Because that’s a very different thing.

And maybe that’s the thread running through all three issues this week.

Institutions have jobs.

The RBA has a job. Government fiscal policy has a job. Superannuation trustees have a job.

Those responsibilities sometimes overlap, and sensible policymakers should absolutely understand how they interact.

But accountability becomes harder when we blur them. Throw in a chunk of politics and self-interest and that blurring gets much worse.

We shouldn’t expect one mob to carry an unfair share of a problem simply because it has a convenient lever to pull.

Nor should we casually ask another group to take responsibility for an objective it wasn’t created to pursue.

Sometimes good economic policy isn’t about finding a clever new tool.

It’s about making sure the tools – and institutions – we already have are doing the jobs they are supposed to do. And not those they weren’t.

More bluntly?

I was pretty blunt in a TV interview this week. We can waste time trying to work out who is to ‘blame’ for inflation and higher interest rates. Or we can turn our minds to the best tools to use to get us out of the mess we find ourselves in.

Yes, the war in Iran has made inflation worse. But there are things that can be done, locally, to make it better.

Yes, interest rates are part of that. So is government taxation and spending policy. 

Yes, the national interest is important, but so are retirement savings. Government shouldn’t be leaning on private savings to replace their own responsibilities and actions.

(And that’s before we consider yet another smelter bailout, this time the Bell Bay smelter in Tasmania. Apparently it’s taxpayers’ money for smelters, but Super for trade disputes…)

And lest you think I’m being partisan, we’ve had leaders from both sides of politics throwing money at bailouts, calling for subsidies and, yes, trying to use Super for their own ends.

What we need, is respect for institutions, and commitment to use the tools at our disposal for the purposes they were intended – that includes interest rates, fiscal policy and Superannuation.

Have a great weekend!

Fool on!

The post A big week: Rates, Inflation and Super appeared first on The Motley Fool Australia.

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