• Why I rate these Vanguard ETFs as strong buys for 2027

    Cheerful boyfriend showing mobile phone to girlfriend with a coffee mug in dining room.

    With 2027 approaching, I’ve been thinking about where some of the best opportunities for long-term investors might be.

    There are several areas of the global share market that I think have particularly promising prospects, and Vanguard has some excellent exchange-traded funds (ETFs) for gaining exposure to them.

    Here are three I would be happy buying today.

    Vanguard Global Technology Index ETF (ASX: VTEK)

    One thing I’m particularly interested in heading into 2027 is how businesses will continue investing in technology.

    Artificial intelligence (AI) has attracted enormous attention, but I think the opportunity extends well beyond the companies developing AI models.

    Businesses are also investing in more powerful computing infrastructure, better software, and the systems needed to manage growing amounts of information.

    The VTEK ETF offers a way to participate in that spending across several parts of the technology industry.

    It holds approximately 300 technology stocks from developed and emerging markets, giving investors exposure to businesses involved in everything from semiconductors to enterprise software.

    I like that approach because it reduces the need to predict which individual technology company will become the biggest winner.

    Of course, technology shares can be expensive, and investors may face considerable volatility if earnings disappoint.

    But I think the long-term potential of this industry makes the VTEK ETF a strong buy for 2027 and beyond.

    Vanguard S&P 500 US Shares Index ETF (ASX: V500)

    Another Vanguard ETF I would buy for 2027 is the V500 ETF.

    What I like about America’s biggest businesses is how many of them have become part of everyday life around the world. Whether it’s the software people use at work, the payment networks handling transactions, or the healthcare products people rely on, American companies have built enormous international businesses.

    That means investors can benefit from their global success through a fund focused entirely on the US share market.

    The V500 ETF tracks the S&P 500 Index, providing exposure to approximately 500 leading American companies.

    I think the combination of established businesses, innovative companies, and opportunities to reinvest profits makes this a compelling market to own over the long term.

    US shares aren’t cheap across the board, and the index has significant exposure to large technology companies. Nevertheless, I would be comfortable buying the V500 ETF today and holding it for many years.

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

    The third Vanguard ETF I would consider is the VAE ETF. I think Asia offers some fascinating opportunities for investors willing to look beyond the US and Australian share markets.

    For example, India has considerable scope for economic development as incomes rise and more consumers use modern financial services.

    Taiwan and South Korea also play important roles in the global technology supply chain, while China remains a huge market with significant industrial and consumer businesses.

    The VAE ETF provides exposure to approximately 1,400 stocks across Asian markets, excluding Japan.

    There are risks, particularly around China’s economy, geopolitical tensions, and currency movements.

    But I think the region has the potential to become an increasingly important contributor to global economic growth over the coming decades.

    Foolish takeaway

    I would be happy buying all three Vanguard ETFs ahead of 2027.

    For me, I like being able to participate in some of the world’s most important businesses and economic developments without having to pick individual winners.

    And with a long investment horizon, I think these funds could reward patient investors handsomely.

    The post Why I rate these Vanguard ETFs as strong buys for 2027 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.

  • 3 reasons why this top ASX 200 share is a buy

    A young woman's hands are shown close up with many blingy gold rings on her fingers and two large gold chains around her neck with dollar signs on them.

    The S&P/ASX 200 Index (ASX: XJO) share Lovisa Holdings Ltd (ASX: LOV) could be one of the best options to buy within the index for the growth potential.

    Lovisa is a retailer that sells “on-trend fashion jewellery at ready-to-wear prices”. It says its trend spotting departments around the world take inspiration from couture runways and current street style to deliver new, must-have styles to customers.

    Following a decline of more than 30% in Lovisa’s share price over the past year, I think it’s a good time to look at the ASX 200 share.

    I think there are three great reasons to look at the business.

    Store network expansion

    A lot of ASX 200 share retailers are focused on Australia (and New Zealand). Lovisa is truly a global business with stores across more than 30 countries.

    It has more than 10 stores in Australia, New Zealand, Singapore, Malaysia, South Africa, the UK, Ireland, France, Germany, Belgium, the Netherlands, Poland, Italy, the USA and Canada. It also has a Middle East and Africa franchise, as well as a South America franchise, that both have at least 15 stores.

    The company’s store expansion is a major factor that makes me believe it can grow significantly in the next five years. In FY26, it added a net 105 new stores to its global network (a rise of 10% year over year) to reach 1,136.

    Countries like the USA, Canada, the UK and Germany saw the biggest increases in the store network. With the wealth and population sizes of those countries, I think there’s room to plenty more stores across those markets considering Australia and New Zealand have 217 stores between them.

    Good profit growth

    The key financial metric that many investors focus on is profit growth. Current and future profitability drives the (Lovisa) share price higher or lower. A growing net profit will help send the ASX 200 share price up over the longer term, even if there’s some volatility along the way.

    In FY26, the company grew its net profit after tax (NPAT) by 10.7% to $95.6 million and the net profit before tax (NPBT) rose by 13.5% to $134.1 million.

    I’d say that’s a solid rate of profit expansion considering it’s investing significantly each year in growing the store network. In cash flow terms, its net cash used in investing activities was $58.5 million in FY26.

    The Lovisa share price is currently valued at 24x FY27’s estimated earnings and earnings are projected to rise by 25% between FY27 and FY29, according to the forecast on Commsec.

    Rising dividend

    The company isn’t necessarily known for paying large dividends. But regular profit growth allows the board of directors to regularly increase the payouts to shareholders.

    In FY26, the company hiked its annual dividend per share by 11.7% to 86 cents. In other words, a dividend payout ratio of just under 100%. The company’s dividend has grown by 160% since FY19.

    Lovisa’s dividend is projected to increase by another 39% between FY26 and FY29.

    Based on the FY26 payout, it has a dividend yield of 3.4%, excluding the franking credits, which I think is a great starting point for the passive income from the ASX 200 share.

    Lovisa and a few other ASX shares are very attractive to me right now.

    The post 3 reasons why this top ASX 200 share is a buy appeared first on The Motley Fool Australia.

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    Motley Fool contributor Tristan Harrison 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 Lovisa. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Perpetual posts record Corporate Trust FUA and navigates Asset Management outflows in Q1 FY27

    Middle-aged woman working on a laptop.

    The Perpetual Ltd (ASX: PPT) share price is in focus today after the company reported record Corporate Trust FUA of A$1.4 trillion and stable Wealth Management funds, despite continued outflows in Asset Management for the first quarter of FY27.

    What did Perpetual report?

    • Corporate Trust Funds Under Administration (FUA) reached a record A$1.4 trillion, up 2.8% for the quarter
    • Debt Market Services FUA grew to A$773.5 billion (+2.6%), driven by new issuance and client wins
    • Asset Management AUM fell 5.5% to A$212.0 billion, mainly due to net outflows of A$9.6 billion
    • Wealth Management FUA held steady at A$22.1 billion
    • Digital and Markets Assets Under Administration rose 9.5% to A$699.2 billion, boosted by the Interfi Systems acquisition

    What else do investors need to know?

    Perpetual’s diversified business model showed its value this quarter, as growth in Corporate Trust and Digital offset Asset Management outflows. Debt Market Services was particularly strong, helped by higher market activity and onboarding a major global bank.

    In Asset Management, most outflows were centred on US and global equity funds, particularly Barrow Hanley, though some strategies saw momentum with inflows, including emerging markets and global fixed income products. The group continued developing new ETF offerings for the US expected to launch after regulatory approval.

    The sale of the Wealth Management unit to Bain Capital progressed, with completion targeted for the final quarter of 2026, subject to outstanding approvals.

    What did Perpetual management say?

    Chief Executive Officer and Managing Director Bernard Reilly commented:

    The first quarter of FY27 highlighted the importance of the complementary structure of our business, with growth in Corporate Trust offset by outflows in Asset Management, while Wealth Management remained stable as the sale process to Bain Capital progressed… As we mark the anniversary, our focus remains on our clients and the work ahead across our business.

    What’s next for Perpetual?

    Perpetual expects to finalise the sale of its Wealth Management business to Bain Capital by the end of 2026, which should further sharpen its focus on Asset Management and Corporate Trust activities. The company plans to continue growing its Corporate Trust client base and expand its digital and fixed income offerings, while stabilising Asset Management flows through new products and initiatives like the upcoming US ETFs.

    Management remains focused on delivering for clients as the group enters its 140th year, aiming to leverage its diversified platform to navigate changing market conditions.

    Perpetual share price snapshot

    Over the past 12 months, Perpetual shares have declined 14%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 3% over the same period.

    View Original Announcement

    The post Perpetual posts record Corporate Trust FUA and navigates Asset Management outflows in Q1 FY27 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 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.

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