This morning, we discussed the most popular exchange-traded fund (ETF) on the ASX for investors wishing to invest in the US markets. The iShares S&P 500 ETF (ASX: IVV) easily takes that crown, with over $14 billion in funds currently under management. But could the Vanguard Morningstar US Total Market Shares Index ETF (ASX: VTS) be a better choice for that slice of America in an ASX portfolio?

In theory, the iShares S&P 500 ETF and the Vanguard US Total Market ETF are quite different.

For one, IVV is an index fund that tracks the S&P 500 Index. This flagship index represents the largest 500 stocks on the US markets, weighted by market capitalisation (size).

Meanwhile, the VTS ETF tracks a far less common index, the Morningstar U.S. Total Market Index. Instead of following just the largest 500 stocks on US markets, this index tracks more than 4,000. As such, it offers significantly more coverage of mid- and small-cap US stocks than IVV.

Is this enough to make VTS the better choice over IVV? Well, diversification is usually a good thing for investors seeking to increase their exposure to an entire market.

However, as we touched on above, the differences between the IVV and VTS ETFs are more theoretical than practical. That’s because, while both funds have different scopes, they both weight their portfolios by market capitalisation. That means the largest shares take up far more room than the smaller ones in both funds. Since both IVV and VTS both share the same stocks at the top of their portfolios, buying either will get you a similar investment profile.

IVV vs. VTS: Top ETF holdings compared

To illustrate, as of 31 July, IVV’s top five holdings, and their respective weightings, were as follows:

NVIDIA Corporation (NASDAQ: NVDA) at 7.53%

Apple Inc (NASDAQ: AAPL) at 7.03%

Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) at 5.85%

Microsoft Corporation (NASDAQ: MSFT) at 5.35%

Amazon.com Inc (NASDAQ: AMZN) at 4.12%

Meanwhile, the VTS ETF’s largest stocks, as of 31 July, were:

NVIDIA at 6.39%

Apple at 6.28%

Alphabet at 5.2%

Microsoft at 4.78%

Amazon at 3.64%

As you can see, there’s not a lot of daylight between these two ETFs’ holdings.

But let’s look at performance.

Over the 12 months to 31 July, IVV returned 9.42%. That rose to an annualised 17.41% over three years, and 13.61% per annum over five.

Meanwhile, the VTS ETF returned 9.82% over the year to 31 July. Over three years, it managed an average of 17.19% per annum, and 12.77% per annum over five years.

So it’s clear we’re doing a bit of hair splitting here. Overall, these two ASX ETFs can be expected to deliver a similar return over time, given their overlapping, heavy exposure to the largest US stocks on the market. It’s my view that ASX investors who are looking for cheap, easy exposure to US stocks can’t go wrong with either fund.

The post Is the Vanguard US Total Market ETF (VTS) the best buy for investing in America? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, Apple, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Microsoft, Nvidia, 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.

There have been many ASX dividend shares that I’ve been impressed with so far this earnings season. Over the past week or two, we’ve seen the likes of Pro Medicus Ltd (ASX: PME), Commonwealth Bank of Australia (ASX: CBA), Telstra Group Ltd (ASX: TLS), Ampol Ltd (ASX: ALD), and many more announce dividend pay rises for their investors.

Today, another income stock joined that party. It was none other than Coles Group Ltd (ASX: COL).

Coles is, of course, the famous name behind the dominant supermarket chain and Liquorland bottle shop network. As we covered earlier today, it was a decent set of numbers that the company had to show for its 2026 financial year. For the 12 months to 30 June 2026, Coles reported revenues of $45.58 billion, up 2.8% over FY2025.

Earnings before interest and tax (EBIT) rose 9.9% to $2.32 billion, while net profits after tax (NPAT) surged 13.7% to $1.26 billion.

Perhaps it is these numbers that have prompted the market to push Coles shares 2.3% higher so far this Tuesday to $23.20 each (at the time of writing). Or perhaps it was the dividend hike that Coles just announced.

Coles: An ASX share with seven years of dividend growth

Yep, Coles has just revealed that its final dividend for 2026 will be worth 37 cents per share. It will come with full franking credits attached, as is Coles’ habit. That represents a 15.6% hike over the final dividend of 32 cents per share that investors enjoyed last year.

Together with the April interim dividend of 41 cents per share, this latest payout takes Coles’ full-year dividends to 78 cents per share. Again, that is a nice 13.04% rise over 2025’s total of 69 cents per share.

So why would I buy Coles shares for income post-earnings? Well, a big reason is this company’s dividend history. Consistent dividend growth over time is difficult to fake. Dividends are a heavy burden on a company’s finances. As such, only the strongest companies tend to be able to keep their payouts growing year in, year out.

2026 happens to be the seventh year in a row that Coles has grown its annual dividends per share. Bear in mind that Coles was only listed on the ASX back in late 2018.

Given that this ASX share is a mature, healthily profitable business in a defensive sector of the market, this dividend pedigree is worth a lot. As such, I would be happy to add Coles shares to a diversified income-focused portfolio today.

The post Post-earnings: Why I’d buy this ASX dividend share for income appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The SkinKandy Ltd (ASX: SK1) share price is in focus as the company reported pro forma revenue up 29% to $90.2 million and pro forma net profit after tax up 41% to $9.0 million, both ahead of Prospectus forecasts.

What did SkinKandy report?

• Pro forma revenue of $90.2 million, up 29% on FY25 and 2% ahead of Prospectus forecast
• Pro forma net profit after tax (NPAT) of $9.0 million, up 41% on FY25 and 5% ahead of forecast
• Pro forma EBITDA of $24.6 million, up 41% on FY25 and 5% ahead of forecast
• Like-for-like revenue growth of 9.6%, ahead of Prospectus forecast of 8.1%
• 22 new stores opened, expanding the network to 109 across Australia and New Zealand
• Net cash at year end of $13.8 million with no drawn debt

What else do investors need to know?

SkinKandy surpassed both statutory and pro forma targets set out at its IPO. Cost management was notable, reducing the cost of doing business from 65% to 62% of revenue, which helped drive EBIT margins higher.

Statutory NPAT came in at $0.6 million, swinging from $8.1 million the previous year but remaining ahead of the Prospectus forecast. The company funded growth without taking on new debt, maintaining a strong cash position backed by term deposits.

The group ended the period with 109 stores after opening 22 new locations, and has already added four more in early FY27. Store rollouts and a disciplined retail approach are central to its steady expansion.

What did SkinKandy management say?

CEO Dain Friis said:

FY26 was an important year for SkinKandy. We listed on the ASX in May and have delivered results ahead of the forecasts included in the Prospectus. Pro forma revenue was $90.2 million, up 29% on FY25, and pro forma net profit after tax was $9.0 million, up 41% on FY25.

Two things drove the result. We opened 22 new stores, taking the network to 109, and the stores we already had grew like-for-like revenue by 9.6%. That combination is what we care about most. The roll-out is repeatable and the existing store network keeps improving.

We now have more than 770 SK Certified piercing specialists, every one of them trained in-house. That in-house training program is what lets us open stores at this pace.

Gross margin held at 89% and our cost of doing business came down to 62% of revenue from 65% last year. We keep the business improving through constant product innovation, development of our piercing offer and a measured approach to promotional tactics. That discipline is a large part of why earnings grew faster than revenue, and revenue grew faster than the store network.

We enter FY27 with the same plan we set out at the IPO: build towards 180 to 210 stores across Australia and New Zealand, keep improving the economics of every store, and take our first steps into a second international market.

Our people are the business, and they held up well in a year of change and acceleration of our growth plans and strategy. I am very proud of what this team has achieved while simultaneously taking the business through an IPO. Thank you to all of them.

What’s next for SkinKandy?

SkinKandy is pushing ahead with its growth strategy, aiming to increase its store count to between 180 and 210 across Australia and New Zealand. Plans are also progressing to enter a second international market, with management targeting openings in the second half of FY27.

Early FY27 results are encouraging, showing 22% revenue growth over the prior comparable period. The company continues to trial service innovations and build its annual events, such as Piercing Culture Week. Management says the business remains on track with store openings and is focused on improving store economics and customer experience.

View Original Announcement

The post SkinKandy: FY26 earnings lift 41% as store growth outpaces forecast 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.