The Vanguard MSCI Index International Shares ETF (ASX: VGS) and the iShares S&P 500 ETF (ASX: IVV) are two ASX exchange-traded funds (ETFs) I would happily buy for the long term.

Both provide instant exposure to some of the world’s biggest companies, but they go about it differently.

If I had $10,000 and could choose only one today, which would I buy?

What do you get with the VGS ETF?

The biggest reason to buy the VGS ETF is diversification.

It invests in around 1,300 stocks across approximately 23 developed countries outside Australia, rather than concentrating entirely on a single overseas market.

The United States still plays a major role, which is why NVIDIA, Apple, and Microsoft sit among its largest holdings. Fellow technology giants Amazon and Alphabet also feature prominently.

But the Vanguard MSCI Index International Shares ETF also spreads investors’ money across markets, including Japan, the United Kingdom, Canada, France, and Switzerland.

I like that approach because investors are not relying entirely on the US stock market continuing to lead global returns.

For someone who wants one broad international ETF, the VGS ETF would be an excellent choice in my view.

What about the IVV ETF?

The iShares S&P 500 ETF takes a narrower approach.

It tracks Wall Street’s S&P 500 Index (SP: .INX), giving investors exposure to around 500 large US companies. Its biggest underlying holdings currently include NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, and Meta Platforms.

There is clearly plenty of overlap with the VGS ETF.

The difference is that the IVV ETF puts more weight behind these US businesses rather than diluting their influence with companies from other developed markets.

I like that. The US remains home to many of the companies leading major areas of growth, including artificial intelligence, cloud computing, semiconductors, digital advertising, and software.

Of course, that greater exposure to the US also means accepting more concentration. If American shares underperform other developed markets for an extended period, the VGS ETF could benefit from having more money invested elsewhere.

However, I am willing to take that risk because I think the strength of the US businesses inside the IVV ETF gives the fund a compelling long-term growth outlook.

Which ASX ETF would I buy?

The VGS ETF would be my choice for someone prioritising broader international diversification, and I like that it reduces reliance on one country.

But if I had $10,000 and could buy only one, I would choose the IVV ETF.

I am comfortable taking greater exposure to the US market because of the quality and growth potential of the stocks inside it.

The post VGS vs IVV: Which ETF would I buy with $10,000? 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 positions in and has recommended Alphabet, Amazon, Apple, Broadcom, Meta Platforms, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, 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.

Today could be an opportune time to buy Woodside Energy Group Ltd (ASX: WDS) and CSL Ltd (ASX: CSL) shares.

That’s according to Red Leaf Securities’ John Athanasiou, who issued a buy recommendation on both S&P/ASX 200 Index (ASX: XJO) stocks this week (courtesy of The Bull).

In intraday trade on Tuesday, CSL shares were changing hands for $181.88 each. While that leaves shares in the ASX 200 biotech giant down 8.6% in a year, the share price has rocketed a remarkable 96.8% since notching a multi-year closing low of $92.24 on 3 June.

CSL stock also trades on a 2.2% unfranked trailing dividend yield.

As for Woodside shares, trading for $31.27 on Tuesday, the ASX 200 energy stock has gained 33.6% in 12 months. Woodside shares also trade on a 5.2% fully franked trailing dividend yield. That equates to a grossed-up yield of 7.5% once we take those franking credits into account.

Should I buy CSL shares today?

“CSL’s recovery is gaining momentum after forecasting underlying profit growth guidance of about 5 per cent in fiscal year 2027,” Athanasiou noted. “Guidance exceeded market expectations.”

Summarising his buy recommendation on CSL shares, Athanasiou said:

Immunoglobulin sales improved in the second half of fiscal year 2026 amid the company announcing a further share buy-back of $1.1 billion. The outlook for this global health care company is improving after prolonged underperformance. CSL shares have risen from $92.24 on June 3 to trade at $179.19 on September 24.

Successfully meeting or exceeding its targets leaves room for a potentially higher share price considering the stock was trading above $300 in calendar year 2024.

Which brings us to…

Woodside shares benefiting from global energy crunch

Atop his bullish outlook on CSL shares, Athanasiou also issued a buy recommendation on Woodside shares.

“Woodside offers exposure to recent elevated global energy prices amid supply disruptions and continuing Middle East tensions,” he said. “Stronger realised prices should support near term cash flow and dividends.”

On the risk front, Athanasiou added, “A major risk is an easing of geopolitical tensions and a corresponding fall in crude oil prices.”

Explaining his buy recommendation on Woodside shares, Athanasiou concluded:

However, the company delivered a solid interim result. Operating revenue of $7.446 billion in the first half of 2026 was up 13 per cent on the prior corresponding period. Underlying net profit after tax of $1.334 billion was up 7 per cent. The Scarborough energy project is almost completed.

The post Expert names Woodside and CSL shares as top buys today appeared first on The Motley Fool Australia.

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• Woodside Energy vs Ampol: Which ASX oil stock looks better this week?
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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 positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Reserve Bank of Australia (RBA) decided this week to increase the cash rate by 25 basis points (0.25%), which I think has opened up significant opportunities with some ASX share sectors.

I’m always on the lookout for potential buys that could mean strong returns.

Sometimes that means investing in businesses that consistently grow earnings year after year. But there can also be excellent cyclical opportunities when we buy at the weaker point of the cycle.

High interest rates are a headwind for some areas of the ASX share market, and I think that opens up an opportunity to buy during a temporary dip. Hopefully, interest rates will start coming down again at some point, and that could lead to a significant turnaround of investor confidence.

I’m going to highlight three areas that now look significantly undervalued.

Real estate investment trusts

A lot of real estate investment trusts (REITs) now trade at significant discounts to their underlying net asset value (NAV) or net tangible asset (NTA).

I love being able to buy assets for less than they’re worth, and I think, on a long-term basis, that the current unit prices are trading too cheaply.

With how taxes have changed for investing in residential property, I think there could be stronger investor demand for commercial property, which could be supportive for REIT unit prices in the medium term.

I don’t necessarily think that every single REIT is a buy, but I’d focus on the ones with positive long-term outlooks and rising rental income.

I think industrial properties and farmland are two areas with promising outlooks. That’s why I currently really like Centuria Industrial REIT (ASX: CIP), Dexus Industria REIT (ASX: DXI), Charter Hall Long WALE REIT (ASX: CLW) and Rural Funds Group (ASX: RFF).

Each of those four ASX shares has declined recently, but they’re offering strong distribution yields, making them particularly appealing today.

ASX retail shares

The high cost of living and higher interest rates are likely to be a headwind for retail spending, particularly for discretionary retailers.

Retail spending is notoriously cyclical, and it can lead to volatile businesses during an economic cycle.

Even if consumers do reduce spending somewhat, I don’t think the current prices reflect the long-term prospects of the retail businesses, largely just the shorter-term pain.

I’d look at names like JB Hi-Fi Ltd (ASX: JBH), Nick Scali Ltd (ASX: NCK), Universal Store Holdings Ltd (ASX: UNI), Lovisa Holdings Ltd (ASX: LOV), Temple & Webster Group Ltd (ASX: TPW), and Wesfarmers Ltd (ASX: WES).

I think they could be great opportunities to buy today for the longer term.

ASX defensive shares

Higher interest rates can make defensive businesses look less appealing because investors can get a solid return from safe investments like savings accounts, term deposits, and quality bonds.

I think ASX defensive shares could be a great investment amid higher interest rates, and lower rates in the future could make the current valuations very attractive.

After recent falls, I think names like Propel Funeral Partners Ltd (ASX: PFP), Transurban Group (ASX: TCL), Telstra Group Ltd (ASX: TLS), Medibank Private Ltd (ASX: MPL), and Sonic Healthcare Ltd (ASX: SHL) look appealing.

These aren’t the only ASX shares on my watchlist after the RBA interest rate rise, but they’re among my favourite ideas today.

The post Where I’d invest in ASX shares after the recent RBA rate rise appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Propel Funeral Partners, Rural Funds Group, and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa, Temple & Webster Group, Transurban Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Rural Funds Group, Telstra Group, and Transurban Group. The Motley Fool Australia has recommended Lovisa, Nick Scali, Sonic Healthcare, Temple & Webster Group, Universal Store, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.