S&P/ASX 200 Index (ASX: XJO) stock Fletcher Building Ltd (ASX: FBU) is charging higher today.

Shares in the New Zealand-based building and materials company closed on Friday trading for $3.16. In early-morning trade on Monday, shares are changing hands at $3.21 apiece, up 1.6%.

For some context, the ASX 200 is up 0.1% at this same time.

Fletcher Building shares have been on a tear since plumbing a one-year closing low of $2.26 on 28 April. Indeed, with today’s intraday lift factored in, the share price is up 42% since that low, giving the ASX 200 stock a market cap north of $3.4 billion.

Here’s what’s catching investor interest today.

ASX 200 stock jumps on New Zealand support

Flether Building shares are outperforming today after the company announced a milestone agreement between its Golden Bay Cement business and the New Zealand government.

The ASX 200 stock reported that the government has granted up to NZ$60 million (AU$50.4 million) to support Golden Bay Cement’s Northland operations.

The company noted that the one-time grant will provide certainty for Golden Bay Cement’s continued domestic manufacturing capability and planned decarbonisation pathway.

Golden Bay Cement operates New Zealand’s only domestic cement manufacturing facility, supplying around 60% of the country’s cement.

Fletcher Building said that the agreement recognises Golden Bay Cement’s role as the only domestic manufacturer of a critical building material.

As part of the agreement, Golden Bay Cement has committed to continue producing cement at its Northland plant until at least 2040. The business will also invest at least NZ$150 million through to 2040.

What did Fletcher Building management say?

Commenting on the government grant helping boost the ASX 200 stock today, Fletcher Building CEO Andrew Reding said, “Domestic cement production matters for New Zealand’s resilience as much as for its economics.”

Reding added:

An onshore source reduces exposure to shipping disruption, supply shocks and price volatility, an increasingly important consideration as global supply chains become more unpredictable.

Reding also addressed the higher carbon emissions costs the company faced in New Zealand compared to its international competitors.

He noted:

Without government support, increasing costs, including carbon emission costs that our competitors importing cement from overseas do not currently incur at the same level, would likely have required us to close the plant and move to an import-only model from 2030.

This agreement removes that risk, providing the certainty to keep investing in domestic manufacturing, operational resilience and lower-carbon production. It’s a strong example of business and government working together in the national interest.

The post Up 42% since April, guess which $3.4 billion ASX 200 stock is charging higher again on Monday appeared first on The Motley Fool Australia.

More reading

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• Here are the top 10 ASX 200 shares today
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• Fletcher Building lifts FY26 profit guidance as quarterly volumes rise

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 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.

Vanguard ETFs remain among the most popular investment choices for Australians looking to build long-term wealth.

ASX ETFs have surged in popularity over the past decade, offering investors a low-cost, diversified way to invest without having to pick individual shares.

Few providers have benefited more from that trend than the Vanguard Group. Its focus on low fees, broad diversification, and a simple buy-and-hold investing philosophy has made its ETFs favourites among first-time investors and retirees alike.

Here’s how two of the fund manager’s biggest ASX-listed exchange-traded funds (ETFs) – the Vanguard Australian Shares Index ETF (ASX: VAS) and the Vanguard MSCI Index International Shares ETF (ASX: VGS) – are performing so far this year.

Vanguard Australian Shares Index ETF

The Vanguard Australian Shares Index ETF aims to track the performance of the S&P/ASX 300 Index (ASX: XKO), giving investors exposure to around 300 of Australia’s largest listed companies.

The ETF is heavily weighted towards Australia’s biggest sectors, with Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) each accounting for more than 10% of the portfolio. Other major holdings include Wesfarmers Ltd (ASX: WES), Macquarie Group Ltd (ASX: MQG), Rio Tinto Ltd (ASX: RIO), and Telstra Group Ltd (ASX: TLS).

That concentration in banks and miners can be both a strength and a weakness. Investors benefit from exposure to some of Australia’s highest-quality companies and attractive dividend yields, but the portfolio is less diversified across sectors than many global funds.

VAS charges a low management fee of 0.07% per annum, helping investors keep more of their returns over the long term.

At the time of writing, the ETF has returned around 2% over the past year and is down approximately 1.6% over the past month, trading at $108.92. Over the past five years, it has delivered a total return of around 16%.

Income remains one of VAS’ biggest attractions. Investors recently received a distribution of 48.99 cents per unit, reinforcing its appeal for those seeking regular passive income.

Vanguard MSCI Index International Shares ETF

For investors wanting to diversify beyond Australia, the Vanguard MSCI Index International Shares ETF offers exposure to more than 1,300 large and mid-cap companies across developed markets outside Australia.

Its largest holdings include technology giants Microsoft Corp (NASDAQ: MSFT) and Nvidia Corp (NASDAQ: NVDA), both of which have benefited from the rapid growth of artificial intelligence.

Unlike VAS, VGS has relatively little exposure to Australian banks and resources companies. Instead, it provides investors with access to many of the world’s leading technology, healthcare, consumer, and industrial businesses. The ETF also charges a competitive management fee of 0.18% per annum.

Performance has been particularly strong. VGS has gained around 11% over the past year and has significantly outperformed VAS over the past five years, delivering a return of approximately 62%.

Investors also recently received a distribution of 80.11 cents per unit.

For Australians seeking greater global diversification and exposure to many of the world’s highest-quality companies, VGS continues to be a compelling long-term core holding.

The post VAS vs VGS: Which Vanguard ETF is winning so far this year? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group, Microsoft, Nvidia, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended BHP Group, Macquarie Group, Microsoft, Nvidia, Vanguard Msci Index International Shares ETF, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The South32 Ltd (ASX: S32) share price is in focus today after the mining giant delivered FY26 operating results, exceeding several production guidance targets and announcing major progress in pivoting towards base metals.

What did South32 report?

• Announced sale of aluminium value chain (excluding Mozal) to Alcoa for up to US$5.6 billion, plus around US$1.2 billion in rehabilitation provisions
• Sierra Gorda (copper) exceeded FY26 production guidance by 2% and delivered record annual distributions of US$401 million
• Manganese production across Australia and South Africa both surpassed FY26 guidance by 1% and 4% respectively
• Group sales volumes increased by 15% in Q4 FY26, unlocking circa US$200 million in working capital
• Returned US$327 million to shareholders during FY26 through dividends and on-market buy-backs
• Major progress at Hermosa, investing about US$710 million in the zinc-lead-silver project

What else do investors need to know?

South32 completed a CEO transition, with Matt Daley taking the reins from Graham Kerr as of 1 July 2026. The recently announced sale to Alcoa, which excludes Mozal Aluminium, is expected to be finalised in the second half of FY27 pending shareholder approval. This transformational move accelerates South32’s strategic shift towards becoming a leading producer of base and precious metals.

The company highlighted robust production from Cannington, Sierra Gorda, and its manganese operations. Meanwhile, Hermosa’s development continues on schedule with crucial US permitting milestones achieved. South32 also reported effective cost control despite higher raw material and freight costs due to geopolitical impacts.

What’s next for South32?

With the pending sale of its aluminium value chain, South32 expects about 85% of pro-forma earnings to come from base and precious metals. The business is targeting 55% production growth from approved projects, with expanded copper capacity at Sierra Gorda and further construction at the Hermosa project.

South32 plans to continue optimising its core assets and progress open-pit development at Cannington, while closely managing water impacts at its Australian manganese operations. Revised guidance for Australia Manganese FY27 output will be provided with upcoming results.

South32 share price snapshot

Over the past 12 months, South32 shares have risen 29%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 1% over the same period.

View Original Announcement

The post South32 reveals FY26 operating results appeared first on The Motley Fool Australia.

More reading

• Deep Yellow announces major construction contracts for Tumas Project
• Fletcher Building secures $60m for local cement production in NZ
• 5 things to watch on the ASX 200 on Monday
• Here are the top 10 ASX 200 shares today
• Alcoa smashes Q2 revenue record, boosts portfolio with South32 acquisition

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 summary of the company announcement. 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.