ANZ vs Westpac shares: Which big four bank is best for your $5,000?

If you’re thinking about investing in one of Australia’s big four banks, odds are you’re weighing up ANZ Group Holdings Ltd (ASX: ANZ) and Westpac Banking Corporation (ASX: WBC) Both are banking giants with deep roots in the Aussie and Kiwi economies, and both offer investors a slice of the nation’s financial backbone. But if you had $5,000 to put to work, which should you choose? Let’s look at the key differences between ANZ and Westpac shares.

The case for ANZ

ANZ is a powerhouse of Australian banking, tracing its roots back to 1969 and now serving over 8.5 million customers, according to its company profile. ANZ covers just about every corner of the banking world, from retail and small business to corporate and institutional clients, and its operations stretch across 30 international markets, including major presences in Australia, New Zealand, Asia Pacific, the UK, and the US.

A couple of the big-ticket fundamentals stand out:

• Market cap: $115.51 billion – making ANZ one of the largest stocks on the ASX
• P/E ratio: 19.46 – a touch above Westpac, suggesting investors are willing to pay more for each dollar of earnings
• Dividend yield: 4.32% – steady income but not the top among the big four
• Franking: 75% – lower than fully franked rivals, potentially less appealing for those seeking maximum franking credits

Looking at its dividend history, ANZ has a long record of reliable payments, though recent years have seen some reductions in franking levels. The most current interim dividend is $0.83 per share, 75% franked.

The case for Westpac

Westpac is the oldest banking institution in Australia, launched in 1817 as the Bank of New South Wales before becoming Westpac Banking Corp in 1982. These days, it stands tall as one of the big four, serving millions of Australian and New Zealand customers under multiple brands like Westpac, St.George, Bank of Melbourne, BankSA, and BT. The group covers everything from consumer and business banking to institutional services and wealth management.

Key fundamentals for Westpac include:

• Market cap: $118.65 billion – slightly ahead of ANZ, putting it near the very top of the big four by size
• P/E ratio: 17.33 – lower than ANZ, which could suggest better relative value if both banks face similar outlooks
• Dividend yield: 4.38% – slightly higher than ANZ, and every cent counts for income seekers
• Franking: 100% – meaning fully franked dividends, which is a bonus for investors who can use franking credits

Westpac’s dividend payment history is also strong, with regular dividends and, notably, fully franked payouts. Its most recent interim dividend is $0.77 per share, fully franked, plus a $0.15 special dividend in 2024.

Valuation comparison

Here’s how ANZ and Westpac stack up on the main investment yardsticks:

Metric	ANZ	Westpac
Market Cap	$115.51 billion	$118.65 billion
P/E Ratio	19.46	17.33
Dividend Yield	4.32%	4.38%
Dividend Franking	75%	100%
Dividend per Share	$1.66	$1.54
Earnings per Share	1.973	2.029

Note: ANZ’s reported P/E ratio may be based on a different earnings measure than the EPS shown, which can lead to apparent inconsistencies.

Overall, Westpac looks just a little more attractive on both P/E ratio and dividend yield. Its fully franked dividends could also make a meaningful difference for some investors. ANZ edges ahead on dividend per share, but Westpac’s higher franking boosts its after-tax income for most Aussies.

Recent share price momentum

Comparing recent share price performance up to14 October 2026:

• ANZ: Closed at $38.30. Year-to-date return is a solid 7.9%.
• Westpac: Closed at $34.69. Year-to-date return is -6.9%, meaning its share price has lagged in 2026.

Just in the past fortnight of data provided, both shares have seen daily ups and downs, but the real story is in the overall 2026 trend: ANZ is up, while Westpac is down.

Which is the better buy?

If I had $5,000 to invest in one of these banks today, I’d lean toward ANZ. Here’s my reasoning: While Westpac edges out ANZ on dividend yield and offers fully franked dividends, ANZ has meaningfully outperformed in recent months, posting a near 8% gain year-to-date while Westpac’s shares are in the red. The market is putting a slightly higher valuation on ANZ, reflected in its P/E, and while that does often mean higher expectations, I think the combination of global exposure, steady growth, and recent price strength tips the scales in ANZ’s favour. Westpac is no slouch, and its fully franked dividends are a real drawcard for income hunters, but the negative price momentum worries me here. For a blend of reasonable income, international reach, and current momentum, my pick would be ANZ.

The post ANZ vs Westpac shares: Which big four bank is the better buy for $5,000? appeared first on The Motley Fool Australia.

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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 draft. 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.

Exchange-traded funds (ETFs) continue to grow in popularity, and it isn’t hard to see why.

They offer a straightforward way to invest in the share market without having to choose individual companies.

And with $5,000 to invest, I think Betashares has some excellent options worth considering.

Here are three ETFs I would be happy to buy for the long term.

Betashares Global Shares ETF (ASX: BGBL)

The first ETF I would consider is the BGBL ETF, which offers a simple way to invest in some of the world’s leading businesses.

The fund holds more than 1,000 stocks across over 20 developed markets, including the United States, Japan, and Europe.

What I like about this approach is the access it gives investors to industries and businesses that are less prominent on the Australian share market.

Australia has some excellent companies, but many of the global leaders in technology, pharmaceuticals, and consumer products are listed overseas.

The Betashares Global Shares ETF makes it possible to own a slice of these businesses through a single investment.

I think it is worth acknowledging that the fund has substantial exposure to the United States, so its performance will be influenced heavily by American shares.

Nevertheless, I think this Betashares ETF could be an excellent long-term investment, particularly for someone who already has exposure to Australian shares.

Betashares Diversified All Growth ETF (ASX: DHHF)

My second pick would be the Betashares Diversified All Growth ETF. I think this fund is particularly well-suited for investors who prefer to keep their portfolios relatively simple.

Rather than buying separate ETFs covering Australia, the United States, Europe, and emerging markets, the DHHF ETF brings them together in one investment.

It provides exposure to approximately 8,000 stocks around the world, including smaller businesses that might otherwise be overlooked.

Betashares also handles the portfolio’s rebalancing, maintaining its intended allocation across different markets.

For someone who wants to invest regularly without spending much time managing their holdings, I think that is a compelling proposition.

Betashares Global Cybersecurity ETF (ASX: HACK)

My final pick is a little more specialised. I think cybersecurity could be one of the more important areas of technology spending over the coming decade.

Businesses are storing enormous amounts of sensitive information online, while cloud computing and artificial intelligence (AI) are making digital systems increasingly complex.

Protecting those systems is becoming a fundamental part of running a business. And as cyberattacks become more sophisticated, I expect organisations to keep investing in better security.

The HACK ETF provides exposure to the leading companies developing the technology needed to detect threats, secure networks, and protect information.

I think the industry’s growth potential is substantial, though the HACK ETF carries greater concentration risk than my other two picks.

But for investors comfortable with that trade-off, I think it offers a great way to participate in a long-term technology trend.

Foolish takeaway

I would be happy investing $5,000 in any of these Betashares ETFs.

Each offers an opportunity to build wealth over the long term, whether through broad international exposure, a ready-made portfolio, or the growing cybersecurity industry.

For me, the choice would depend on what I already own and where I want more exposure.

The post Why I'd invest $5,000 into these Betashares ETFs 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 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.

I’ve been taking another look at three popular ASX shares.

There are things I like about each of them, but I wouldn’t necessarily buy all three today.

Here’s how I would rate them.

BHP Group Ltd (ASX: BHP)

BHP shares are firmly on my buy list. One reason I like the mining giant is that its portfolio is becoming increasingly geared towards commodities with attractive long-term demand prospects.

Copper is particularly important here. BHP already has substantial copper operations, and I think demand for the metal could increase considerably as the world invests in electricity networks, renewable energy, and digital infrastructure.

The company also has a pipeline of copper growth projects that could help it capitalise on that demand over the coming decade.

I also like the progress being made at its Jansen potash project in Canada, which should eventually give BHP another meaningful source of earnings.

Of course, commodity prices will fluctuate, and BHP’s profits will move with them.

But I think its combination of scale, diversification, and growth opportunities makes it one of the best ASX mining shares to own for the long term.

DroneShield Ltd (ASX: DRO)

DroneShield is another buy for me, although I would approach it with considerably more caution.

The company operates in a market that I think could experience enormous growth over the coming years.

Recent conflicts have demonstrated how drones are changing modern warfare, creating an urgent need for technology capable of detecting and defeating them.

DroneShield has developed a range of solutions to address these threats, and its growing international presence puts it in a position to compete for defence contracts.

I am particularly encouraged by its progress in the United States, where it recently secured access to a major counter-drone procurement programme. The opportunity now is to convert that access, alongside its broader sales pipeline, into substantial orders.

There are still uncertainties surrounding defence procurement, competition, and the company’s ongoing regulatory scrutiny. And with DroneShield shares prone to sharp price movements, I would expect considerable volatility.

Nevertheless, I think the long-term growth potential makes it worth considering for investors comfortable with higher risk.

Lynas Rare Earths Ltd (ASX: LYC)

Lynas is a hold in my view. I recently suggested that the shares could be a buy for investors with diversified portfolios who specifically want exposure to the rare earths industry.

I still stand by that assessment. Lynas has established itself as an important rare earths producer outside China, giving it a valuable position as governments seek to diversify supply chains.

Its proposed acquisition of Meteoric Resources Ltd (ASX: MEI) could also strengthen its long-term growth prospects by expanding its access to rare earths resources.

But developing new projects requires substantial investment, and the company’s earnings remain sensitive to rare earths prices. That creates a more concentrated set of risks than I would ideally want from a core mining investment.

For someone specifically looking to benefit from the growing importance of rare earths, I think Lynas remains worth considering.

But if I were simply looking to increase my exposure to the mining sector, I would prefer a company with a broader commodity portfolio. That is why I would hold Lynas shares rather than add to my position today.

Foolish takeaway

BHP shares would be my preferred choice for long-term mining exposure, while DroneShield offers a more speculative opportunity to benefit from growing defence spending.

I remain positive on Lynas’ future, but I would be more comfortable adding to a diversified mining business at this stage. For me, that leaves two buys and one hold.

The post Buy, hold, sell: BHP, DroneShield, and Lynas shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. 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.