In morning trade on Tuesday, BHP Group Ltd (ASX: BHP) shares are trading for $60.95 each, while the Commonwealth Bank of Australia (ASX: CBA) share price stands at $153.56.

As it stands then, CommBank shares have a 151.9% higher valuation than BHP shares.

Although with a market cap of approximately $310.2 billion, BHP has taken a commanding lead as the biggest company on the ASX. With a market cap of $256.9 billion, CBA comes in at number two.

BHP retook that title from the S&P/ASX 200 Index (ASX: XJO) bank stock on 27 January this year after CBA had held the biggest ASX share crown for almost 18 months. As you may recall, the following few weeks saw the two ASX titans hand that crown back and forth as one stock alternately outperformed the other.

But by April the winds had turned decidedly in BHP’s favour, with iron ore prices remaining resilient and copper prices racing to new record highs.

At the same time, the CBA share price began to come under pressure as investors eyed a potentially deteriorating Aussie economy. With ongoing elevated inflation and higher interest rates, the bank could be facing lower home loans coupled with higher default rates.

With this picture in mind, and their bullish outlook on copper, the team at Regal Partners believe that not only is BHP likely to maintain a larger market cap than CBA, but that both stocks could be trading at a similar price within five years.

BHP and CBA share price matched at $100?

“Phil King and I have often discussed the scenario over the next five years where CBA and BHP are both trading at $100,” Regal Partners investment director Charlie Aitken said (quoted by The Australian Financial Review).

“We’ve generally kept that view to ourselves because it once sounded so outrageous. Today, it doesn’t sound so far-fetched,” he added.

Pointing to the recent growing stresses emerging in the private Aussie credit market, Aitken noted, “I would be astonished if arrears, bad and doubtful debts and credit card delinquencies aren’t all increasing sharply for … banks.”

Regal’s five-year forecast would see the CBA share price fall by almost 35% from current levels, putting it back to November 2023 prices. While Regal expects that BHP’s copper exposure will see the ‘undervalued’ miner outperform over this time amid booming demand for the red metal, spurred in part by the AI revolution.

According to Aitkin:

Where we prefer to invest is where productivity gains from developments in AI and an associated lift in demand for the given product driven by AI: welcome to mining. The modern world simply can’t open for business each day without BHP’s mined products, yet, unlike Jensen Huang, 99.99 per cent of the world wouldn’t recognise BHP chief executive Brandon Craig if they walked past him in the street.

The post Are the BHP and CBA share price headed for parity? appeared first on The Motley Fool Australia.

More reading

• 3 reasons to buy BHP shares for 2027
• Which big 4 bank stock will rise the most before the end of 2026?
• BHP Group vs Rio Tinto shares: Which pays better dividends?
• Up 52% and paying dividends: Are BHP shares a buy, hold, or sell today?
• Macquarie Group vs Commonwealth Bank: Which ASX bank is the better buy?

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

ASX exchange-traded funds (ETFs) are the most popular way in which more than 8,500 investors are investing, new data shows.

A survey conducted by CMC found Aussies are still keen to invest despite today’s market volatility.

ETFs allow investors to buy a basket of stocks in one trade. Part of the appeal is access to international shares via the ASX.

This week on The Bull, Andrew Wielandt from DP Wealth Advisory has two buys and one sell recommendation for us to consider.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The Vanguard Australian Shares High Yield ETF share price is $84.35, down 0.2% today and up 8% over 12 months.

VHY ETF tracks the FTSE Australia High Dividend Yield Index, before fees.

VHY invests in ASX dividend shares that have higher forecast dividend yields than other stocks.

Wieland has a buy recommendation on VHY, and explains:

This exchange traded fund provides exposure to a portfolio of Australian companies selected on the basis of their expected dividend yield.

The portfolio is dominated by the major banks and large resource companies, which should continue to generate attractive income and franking credits for investors.

However, as the portfolio is weighted towards financial stocks, it’s not as diversified as other broader based Australian ETFs on the ASX.

Given quarterly distributions and a relatively appealing forecast dividend yield, VHY is more suited to income focused investors.

Plato Global Alpha Fund (ASX: PGA1)

The Plato Global Alpha Fund share price is $15.31, up 1.2% today and up 18% over 12 months.

PGA1 aims to outperform the MSCI World Net Returns Unhedged Index by 4% per annum, after fees.

Wieland also gives this ASX ETF a buy rating, and comments:

PGA1 operates as a long-short exchange traded fund. Since its inception in September 2021, the fund has achieved an annualised return of 23.5 per cent after fees. It has outperformed the global benchmark by 11.74 per cent per annum.

The fund delivered a return of 18.68 per cent in the past year. Stocks in the ETF at June 30, 2026 included Nvidia, Apple, Microsoft and Amazon.

PGA1 has generated a strong track record of performance and offers a relatively bright outlook in volatile financial markets.

I hold PGA1 in my self managed super fund.

HomeCo Daily Needs REIT (ASX: HDN)

The HomeCo Daily Needs REIT share price is $1.11, up 0.6% today and down 19% over 12 months.

This ASX ETF is a real estate investment trust (REIT) that holds properties in the retail, health, and services sectors.

Wieland has a sell rating on this ASX REIT, explaining:

Occupancy was 99 per cent in full year 2026. The underlying properties continue to perform well, with a steady increase in rental income.

However, like a number of other REITs, I believe the prospect of higher interest rates, finance costs amid struggling consumers may pressure HDN’s performance numbers in full year 2027 in what is a challenging retail sector.

HDN shares have fallen from $1.38 on September 18, 2025 to trade at $1.105 on September 17, 2026.

The post 2 ASX ETFs to buy and 1 to sell: expert appeared first on The Motley Fool Australia.

More reading

• How much must I invest in VHY ETF shares to earn a $1,000 passive income in 2027?
• How to make $26,000 of passive income from ASX shares
• 3 excellent ASX dividend shares with 5.5% to 7.7% yields
• My top ASX passive income stocks for the next 10 years
• 9 ASX shares just upgraded by the experts

Motley Fool contributor Bronwyn Allen has positions in Vanguard Australian Shares High Yield ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, Microsoft, and Nvidia. The Motley Fool Australia has recommended Amazon, Apple, HomeCo Daily Needs REIT, Microsoft, Nvidia, and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Forrestania Resources Ltd (ASX: FRS) recently released prefeasibility studies for four separate mining projects in Western Australia, which, if developed, will keep the company producing gold for more than 10 years.

Bell Potter has run the ruler over the projects and has actually reduced its price target on Forrestania shares, while maintaining a very bullish outlook for the company.

I’ll get to that price target shortly. First, let’s look at what Forrestania is proposing.

Mining projects working through central hub

The company plans to develop four mining projects, which all process their ore through the Edna May processing facility.

The developments are costed with an assumed gold price of $5500 per ounce, compared to the current price of gold, which is $6130 per ounce.

The Edna May project alone is expected to generate $728.7 million in cash flow over a 10-year mine life, while costing only $98 million to develop.

Using a gold price of $6,140 per ounce, the cash flow figure rises to $961 million.

Forrestania said there is potential upside from upgrading inferred mineral resources within the current pit shell, which are currently treated as waste and excluded from the production target.

Forrestania Chairman David Geraghty said:

The Edna May Ore Reserve and Pre-Feasibility Study provide a strong technical and economic basis for the redevelopment of this established gold operation. The study benefits from substantial existing infrastructure, a proven processing facility and a long operating history, while identifying a clear pathway to restart and future production. With a 400,000-ounce Probable Ore Reserve underpinning 100% of the production target and strong projected cash generation at the PFS gold price assumption, Edna May is expected to form a key part of Forrestania’s Westonia Hub strategy.

Three other mining projects will also feed into Edna May. These are the British Hill, Tycho, and Johnson Range projects.

ASX gold shares looking cheap, broker says

Bell Potter said in its research note to clients that the cost of gold production came in higher than they had expected at $3,329 per ounce.

The broker added:

On a filled two-hub configuration we see a pathway to improving on this figure, offering valuation upside. We anticipate further reserve announcements on the remaining deposits and those that incorporate Lake Johnston in due course. FRS is sufficiently funded to first production, subject to completing the proposed $100m facility. FRS remains underrated, in our view, with significant upside through a dual processing hub and >200koz steady state capabilities.

Bell Potter has a $1.05 price target for Forrestania, compared with the current price of 33 cents.

The company is valued at $802.9 million.

The post 4 reasons this ASX gold stock could more than triple appeared first on The Motley Fool Australia.

More reading

• Forrestania Resources extends Zenith Minerals takeover offer again
• Forrestania Resources reports high-grade gold intersections at British Hill

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 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.