Author: openjargon

Not every ASX exchange traded fund (ETF) is designed to be a quiet core holding.

Some are built around faster-moving parts of the market.

That can mean more volatility, but it can also mean exposure to themes that could become much larger over time.

With that in mind, here are three exciting ASX ETFs to watch.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The Betashares Asia Technology Tigers ETF gives investors exposure to major Asian technology companies.

This is an interesting area because Asia is not just where a lot of technology is assembled. It is also home to some very large businesses involved in semiconductors, ecommerce, digital platforms, online entertainment, gaming, and consumer technology.

That gives the fund a different profile to US-focused technology ETFs.

It can provide exposure to companies tied to Asian consumers, regional digital infrastructure, and important parts of the global technology supply chain.

This ASX ETF is unlikely to be a smooth ride. Regulation, geopolitics, currency movements, and sentiment toward China and Asian markets can all have a big impact.

But for investors wanting technology exposure beyond the usual US names, this fund could be one to watch.

Betashares Crypto Innovators ETF (ASX: CRYP)

The Betashares Crypto Innovators ETF is another ASX ETF with plenty of excitement attached to it.

Importantly, this fund does not invest directly in cryptocurrencies.

Instead, it gives investors exposure to listed companies involved in the crypto economy. That can include crypto exchanges, bitcoin miners, digital asset infrastructure businesses, and other companies connected to blockchain adoption.

This makes it a more indirect way to gain exposure to the theme.

The crypto sector can be extremely volatile, and investor sentiment can change very quickly. When digital asset prices rise, companies exposed to the industry can attract strong interest. When conditions turn, the falls can be sharp.

That means this ASX ETF is probably better suited to investors with a higher risk tolerance.

But if the crypto ecosystem continues to mature over the long term, the companies helping build and support it could become more important.

Global X FANG+ ETF (ASX: FANG)

A final ASX ETF to watch is the Global X FANG+ ETF.

This fund gives investors concentrated exposure to a small group of major global technology and growth shares.

These are companies linked to areas such as artificial intelligence, cloud computing, digital advertising, ecommerce, electric vehicles, social media, streaming, and consumer technology.

Many of these companies are already deeply embedded in how people work, shop, communicate, and entertain themselves.

But concentration cuts both ways. When mega-cap technology shares are in favour, this ETF can perform very strongly. When valuations come under pressure, it can fall quickly.

Even so, for investors wanting targeted exposure to some of the most influential growth companies in the world, the Global X FANG+ ETF remains an exciting ASX ETF to keep on the watchlist.

The post 3 exciting ASX ETFs to watch appeared first on The Motley Fool Australia.

More reading

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• 3 growth focussed ASX ETFs that could beat the market in FY27
• 5 amazing ASX ETFs for Australian investors in August
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Motley Fool contributor James Mickleboro has positions in Betashares Capital – Asia Technology Tigers Etf. 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.

Some investors love watching the market. They check prices over breakfast, read broker notes at lunch, and know exactly what the S&P/ASX 200 index (ASX: XJO) is doing by mid-afternoon.

There is nothing wrong with that. But not everyone wants investing to become a second job.

The good news is that a strong ASX portfolio should not need constant attention. In fact, some of the best portfolios are built to be left alone most of the time.

Start with investments that do the work for you

The easiest way to reduce the need for constant decision-making is to own investments that already spread money across lots of companies.

ASX exchange traded funds (ETFs) can help here.

Funds such as the Vanguard MSCI Index International Shares ETF (ASX: VGS), iShares S&P 500 ETF (ASX: IVV), and the Vanguard Australian Shares Index ETF (ASX: VAS) give investors exposure to large collections of businesses in one trade.

That means an investor does not have to know which company will report the best result next month.

They are backing the long-term progress of markets rather than relying on one perfect stock pick.

Choose businesses that can compound quietly

Individual ASX shares can still have a place in a low-maintenance portfolio. But the type of company is important.

I would focus on businesses with strong market positions, repeat customers, pricing power, and long-term growth opportunities.

These are companies that can become more valuable over time without needing everything to go right each quarter.

Examples could include ResMed Inc. (ASX: RMD), Goodman Group (ASX: GMG), REA Group Ltd (ASX: REA), Wesfarmers Ltd (ASX: WES), and TechnologyOne Ltd (ASX: TNE).

They will still have weaker periods. No company avoids those. But if the long-term investment case remains intact, investors may not need to react to every share price move.

Avoid shares that require too much watching

Some ASX shares need constant monitoring. That might be because they carry too much debt, rely on commodity prices, need regular capital raisings, or have business models that are still unproven.

These shares can work out well, but they often demand more attention.

For investors who want a portfolio they can leave alone for longer periods, it may be better to avoid making these positions too large.

A portfolio becomes easier to live with when it is not filled with companies that can change dramatically from one update to the next.

Let dividends help

Dividends can also make a portfolio feel more productive.

Income from shares such as Transurban Group (ASX: TCL), APA Group (ASX: APA), Woolworths Group Ltd (ASX: WOW), and Charter Hall Long WALE REIT (ASX: CLW) can provide cash flow while investors wait.

That cash can be taken as income or reinvested to buy more shares.

Over time, reinvested dividends can quietly add to returns without the investor needing to do much at all.

Set a review schedule

A low-maintenance portfolio does not mean ignoring everything forever. It just means checking it sensibly.

For many investors, a proper review every six or 12 months may be enough. That review can ask a few simple questions.

Is the portfolio still diversified? Are the main holdings still doing what they were bought to do? Has any position become too large? Is there enough exposure to global shares, income, and long-term growth?

That is very different from watching every daily move. The aim is not to build a portfolio that never changes. It is to build one that does not need constant fixing.

For investors who want to build wealth without living inside their brokerage account, that could be a very good place to start.

The post How to build an ASX portfolio you do not need to check every day appeared first on The Motley Fool Australia.

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• 9 ASX 200 shares with strengthened buy ratings this week

Motley Fool contributor James Mickleboro has positions in Goodman Group, REA Group, ResMed, Technology One, and Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, ResMed, Transurban Group, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Apa Group, ResMed, and Transurban Group. The Motley Fool Australia has recommended Goodman Group, Vanguard Msci Index International Shares ETF, Wesfarmers, 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.

A decade gives an exchange-traded fund (ETF) plenty of time to ride through market cycles and benefit from long-term economic growth.

If I were choosing two Vanguard ETFs with that timeframe in mind, these would be high on my list.

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

The VAE ETF gives investors exposure to Asian markets excluding Japan.

I like it because some of the world’s most important economies sit within this region, including China, India, Taiwan, and South Korea. The fund provides exposure to businesses across technology, financial services, manufacturing, consumer spending, and other industries.

Over the next decade, I think several long-term trends could work in its favour.

Rising household incomes can increase spending on financial products, travel, technology, healthcare, and consumer goods. Asia is also central to global semiconductor manufacturing and electronics supply chains, while India continues developing into a much larger part of the global economy.

I would expect plenty of bumps along the way. Political and regulatory changes can move Asian markets quickly, while currency movements add another source of volatility because the VAE ETF is unhedged.

But I think a 10-year timeframe gives investors a better chance to look beyond those shorter-term swings and focus on the region’s long-term development.

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

My second choice would be the V500 ETF.

This relatively new Vanguard ETF tracks the S&P 500 Index, giving ASX investors exposure to around 500 of America’s largest listed companies across all major sectors.

I think the attraction here goes beyond simply owning US shares. Many of the companies inside the index sell products and services around the world.

This means investors gain exposure to global spending on areas such as technology, healthcare, consumer products, financial services, and industrial development through one investment.

I also like that the S&P 500 can evolve. A decade is long enough for today’s corporate leaders to strengthen their positions, lose ground, or be overtaken by businesses that are much smaller today. An index fund adjusts as the market changes rather than asking investors to identify every future winner themselves.

For someone who wants a simple core holding with substantial long-term growth potential, I think the V500 ETF makes a lot of sense.

Foolish takeaway

I would be happy to buy both Vanguard ETFs and leave them invested for the next decade.

The VAE ETF gives me access to the long-term development of Asia, while the V500 ETF provides a simple way to own many of America’s leading businesses.

I think both offer compelling opportunities for investors prepared to stay patient through the inevitable market swings.

The post 2 Vanguard ETFs I’d buy and hold for a decade appeared first on The Motley Fool Australia.

More reading

• Why these ASX ETFs are on my watchlist
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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.

Westpac Banking Corp (ASX: WBC) and Commonwealth Bank of Australia (ASX: CBA) shares have both underperformed the 2.3% 12-month gain posted by the S&P/ASX 200 Index (ASX: XJO) earlier this week.

In fact, both of the big four ASX 200 bank stocks are well into the red since this time last year.

With CBA shares recently trading for $157.08 apiece, Australia’s biggest bank stock is down 7.8% in 12 months.

Westpac shares have fared even worse, recently down 11.3% for the year at $33.95 each.

Now we shouldn’t leave out the fully franked dividends both banks have paid out over the full year. CBA shares trade on a fully franked dividend yield of 3.2%, while Westpac shares trade on a fully franked dividend yield of 4.5%.

Though even with these dividends in mind, the accumulated value of both ASX 200 bank stocks has gone backwards over the past year.

And looking ahead, Red Leaf Securities’ John Athanasiou expects they’ll both continue to struggle (courtesy of The Bull).

Here’s why.

Time to exit CBA shares?

“CBA shares deserve to trade at a premium given its dominant retail franchise, strong technology platform, solid deposit base and consistent execution,” Athanasiou said.

Summarising his sell recommendation on CBA shares, he concluded:

However, Australian banking remains a mature industry, with intense competition across mortgages and deposits limiting the potential for outsized earnings growth. At a premium valuation, investors are paying a higher price for quality, leaving little room for disappointment.

After a substantial re-rating, investors may be better served taking some profits and reallocating capital towards businesses offering stronger growth at more reasonable valuations.

Which brings us to…

Westpac shares could be facing competitive headwinds

Athanasiou also issued a sell recommendation on Westpac shares.

“The bank remains well capitalised and continues to generate solid earnings, but the operating environment is becoming increasingly competitive,” he said. “Mortgage pricing is aggressive, deposit competition remains intense, and the scope for sustained margin expansion appears limited.”

And Westpac’s 4.5% dividend yield isn’t enough to tip the scales for Athanasiou.

He noted:

Westpac’s dividend remains attractive, but investors should also consider opportunity cost.

We believe there are more compelling opportunities on the ASX, which offer stronger structural growth or more attractive valuations.

Another expert is bearish on CBA shares

Athanasiou wasn’t the only analyst to advise selling CBA shares this week.

He was joined by Alto Capital’s Tony Locantro.

“The CBA remains Australia’s leading banking franchise and delivered another strong result in full year 2026,” Locantro said.

Commenting on those strong results, he said:

Cash net profit after tax of $10.982 billion was up 7% on the prior corresponding period. The full-year dividend of $5.05 a share, fully franked, was up 4%. Strong lending, deposit growth and a robust capital position continue to demonstrate the quality of the business.

As for his sell recommendation, Locantro concluded:

However, operating expenses and loan impairment expenses increased.

The CBA continues to trade at a substantial valuation premium to domestic banking peers. Although the underlying business remains strong, the premium valuation leaves little room for disappointment and may potentially constrain prospective returns.

The post Sell alert! Why this expert is calling time on Westpac and CBA shares appeared first on The Motley Fool Australia.

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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.

ASX blue-chip shares can be among the most appealing picks for passive income due to their reliably high dividend yields.

The strongest businesses usually have the best balance sheets, highest margins and the best grip on their market share.

I’m going to talk about two ideas for dividends that I’d call ASX blue-chip shares.

Medibank Private Ltd (ASX: MPL)

Medibank is the largest private health insurer in Australia with its Medibank and ahm brands. The company also has a growing healthcare division following multiple acquisitions.

Healthcare is a defensive industry with largely consistent demand, helping Medibank generate defensive profits that then fund consistent dividends.

However, the Medibank dividend isn’t being maintained at the same level. Aside from 2020, its annual payout has increased every year during the past decade.

In the recent FY26 result, Medibank increased its annual payout by 6.7% to 19.2 cents per share. That came after a 6.7% rise in group operating profit and a 27.5% rise in net profit.

In FY27, the business is aiming to grow its market share in a disciplined way, including improved volume momentum for the Medibank brand. It also expects its non-resident private health insurance segment to deliver solid gross profit growth. The Medibank Health segment expects to deliver around 25% profit growth in FY27 thanks to Better Medical.

At the time of writing, its FY26 payout translates into a grossed-up dividend yield of 5.7%, including franking credits.

WAM Leaders Ltd (ASX: WLE)

WAM Leaders is a listed investment company (LIC) that focuses its investments on ASX blue-chip shares. The LIC structure allows WAM Leaders to turn the pleasing investment returns it makes into a growing annual dividend.

Impressively, its portfolio has returned an average of 12.1% per year since inception in May 2026, before fees, expenses and taxes. That level of return has allowed the business to increase its annual dividend every year since FY17. The FY26 annual dividend was increased by 2.1% to 9.6 cents per share.

That payment translates into a FY26 grossed-up dividend yield of 10.2%, including franking credits, at the time of writing. That’s an incredibly high (and attractive) payout, in my opinion.

Some of the businesses in the portfolio that it had a large active position in at the end of July 2026 included Mirvac Group (ASX: MGR), Stockland Corporation Ltd (ASX: SGP), Rio Tinto Ltd (ASX: RIO), Amcor (ASX: AMC) and GPT Group (ASX: GPT).

However, there were also typical names in the holdings such as Wesfarmers Ltd (ASX: WES), Macquarie Group Ltd (ASX: MQG), Goodman Group (ASX: GMG) and BHP Group Ltd (ASX: BHP).

I think its ASX blue-chip share strategy will help it continue to deliver pleasing returns over the long term.

The post 2 ASX blue-chip shares offering big dividend yields 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 Goodman Group, Macquarie Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool Australia has recommended BHP Group, Goodman Group, Macquarie Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Qantas Airways Ltd (ASX: QAN) has just given investors a fresh look at how the business is performing.

The shares have had a difficult year, but I think the current weakness has created an attractive long-term opportunity.

So, would I buy Qantas shares today? My answer is yes.

The business still looks healthy

Qantas’ FY26 result was not perfect. Higher fuel costs and disruption from the conflict in the Middle East weighed on earnings.

But I still saw plenty to like.

Demand remained resilient across much of the network, while Qantas Domestic revenue increased 5% and Jetstar Domestic earnings grew 15%. Qantas also reported its highest customer satisfaction levels in a decade.

I think this is encouraging because Qantas has spent the past few years working to rebuild its relationship with customers while improving operations.

Qantas Loyalty is another valuable part of the business. Underlying earnings from the division increased 12% in FY26, and management expects further growth in FY27.

That provides another source of earnings alongside the airline operations themselves.

Fleet renewal could improve the business

I am also positive about Qantas’ major fleet renewal program.

Seventeen new aircraft arrived during FY26, with up to another 31 expected in FY27. The airline is introducing newer A321XLRs, A220s, A350s, and 787s across its network.

New aircraft can improve fuel efficiency, reduce operational complexity, and provide a better passenger experience.

They can also open routes that were previously difficult to operate economically.

I think Project Sunrise is the most obvious example, with Qantas preparing to begin non-stop Sydney to London flights using its new A350-1000ULR aircraft.

I think this investment could leave Qantas with a stronger and more efficient airline several years from now.

The price looks attractive to me

Qantas shares are trading around $9.61 on Friday and are down approximately 20% over the past 12 months.

According to CommSec, consensus earnings per share forecasts are $1.16 in FY27 and $1.15 in FY28.

That puts the shares on a forward price-to-earnings ratio of just over eight times.

I think that looks attractive for a business with strong domestic brands, an international network, a growing loyalty operation, and significant investment underway to modernise its fleet.

Income investors have something to consider as well. CommSec forecasts dividends per share of 44.8 cents in FY27 and 56.2 cents in FY28. This represents dividend yields of approximately 4.7% and 5.8%.

Foolish takeaway

I would buy Qantas shares at around $9.61.

Airlines will always come with risks, particularly from fuel prices, economic conditions, and geopolitical disruption.

But after a 20% decline, I think the current price leaves enough room for those risks while giving investors exposure to a business that could become stronger as its fleet renewal progresses.

The post Would I buy Qantas shares today? 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 think the best ASX dividend shares can provide investors with a mixture of capital growth and dividends, which could suit grandparents, children and anyone in between. Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) could be the best pick of the bunch.

Past performance is not a guarantee of future performance, but over the last four years, the Soul Patts share price has risen by around 70%. That’s a pleasing level of growth, and that’s before we’ve even talked about the dividend.

Soul Patts is an investment conglomerate. Let’s get into why it’s such an appealing option for dividend income.

Diversification

As an investment house, the business has built up a diversified and impressive portfolio.

The company has a flexible mandate to invest in almost any assets in different markets.

For example, Soul Patts is currently invested in resources, energy, telecommunications, swimming schools, agriculture, water entitlements, electrification, financial services, retirement living, industrial property, building products, credit and plenty more.

This portfolio provides Soul Patts with a defensive and largely uncorrelated source of cash flow to pay dividends.

I like that the ASX dividend share regularly adds to the portfolio (and occasionally divests) to ensure the portfolio is future-focused and has a compelling future.

Longevity

To make any investment for a grandparent, I’d want to invest in something that has a long track record and is unlikely to result in a permanent capital loss.

The diversification of the ASX dividend share’s portfolio is useful, but I think its longevity is even more impressive.

It has been listed in Australia for more than 120 years, making it one of the oldest businesses on the ASX.

If there was going to be one business within the S&P/ASX 200 Index (ASX: XJO) that I’d bet would still be around in another 20 or 30 years, it’d be Soul Patts because of the ASX dividend share’s ability to change its portfolio.

Reliable ASX dividend share

I think its reliable dividend is the top reason to like Soul Patts as an ASX dividend share.

The business has increased its annual ordinary dividend every year since 1998. No other ASX share has a record like that.

Perhaps just as impressively, Soul Patts has paid a dividend every year for more than 120 years, including through wars, pandemics, economic crashes, and so on.

I have a high level of optimism that the company can continue its dividend growth record for grandparents and every other aged investor wanting an ASX dividend share.

The post The 1 ASX dividend share I’d buy for my grandparents appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When it comes to ASX ETFs, investors are spoiled for choice. 

The record net flows of investor allocation to the sector have pushed providers to list more and more funds. 

Today there are hundreds of exchange-traded funds. These cover everything from Australian shares and global equities to artificial intelligence, cybersecurity, uranium and gold. 

For experienced investors, that variety provides more ways than ever to build a portfolio tailored to their goals.  

But for many, all those choices can also lead to paralysis by analysis. 

It can be difficult to decide where to start and how to diversify your portfolio. 

According to Vanguard, a growing number of investors are turning to diversified ETFs, also known as ready-made, multi-asset or asset allocation ETFs to solve this problem. 

What is a diversified ETF?

Unlike traditional ETFs, which typically track a single market or sector, ready-made ETFs invest across multiple asset classes within a single fund. 

They offer the advantage of providing diversification in one trade, instead of buying separate ETFs for Australian shares, international shares, emerging markets and fixed income.

Investors can generally choose between conservative, balanced or growth-oriented portfolios depending on their investment objectives, risk appetite and time horizon. 

In simple terms, it also allows investors to not actively manage their portfolios. These kinds of ASX ETFs can be set-and-forget equities. 

Why are investors choosing diversified funds?

According to a report from Vanguard, diversified ETFs are gaining traction. 

At the end of June, Australia’s diversified ETF category managed more than $9 billion across a range of funds. That’s up from $6.3 billion a year earlier – an increase of around 44% – with the category now accounting for approximately 2.5% of total ASX-listed ETF assets.

The strong growth suggests more Australian investors are embracing ready-made portfolios as a simple way to build a diversified investment strategy without having to construct and maintain one themselves. 

Australian investors also have billions of dollars invested in unlisted diversified funds, highlighting the longstanding appeal of professionally diversified portfolios. 

For investors seeking a diversified portfolio in a single investment, diversified ETFs can provide exposure to a range of asset classes.

Vanguard’s investing philosophy emphasises diversification, regular investing and staying the course through market ups and downs, while periodically reviewing investments to ensure they remain aligned with long-term goals and circumstances.

Why this could be the top option

For investors looking to target a diversified ASX ETF, one stellar option is the Vanguard Diversified High Growth Index ETF (ASX: VDHG). 

Rather than investing directly in individual companies, VDHG invests in a range of underlying index funds and ETFs. Each provides exposure to a highly diversified mix of equities and bonds from around the globe.

At the time of writing, its exposure is: 

• Australian Shares (36%)
• International Shares (26.5%)
• International Shares Hedged (16%)
• International Fixed Interest Hedged (7%)
• International Small Companies (6.5%)
• Emerging Market Shares (5%)
• Australian Fixed Interest (3%)

Overall, 90% of the portfolio is allocated to growth assets, while 10% is invested in defensive assets. 

Rather than investors determining how much to allocate to each of these building blocks and when to rebalance them, the portfolio manager monitors and rebalances the portfolio to maintain its target asset allocation over time.

The post Is this the best diversified ASX ETF on the market right now? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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.

It’s been a tough year for most ASX tech shares.

Not to mention their stockholders.

Indeed, while the All Ordinaries Index (ASX: XAO) was recently up a bit more than 1% in 12 months, the S&P/ASX All Technology Index (ASX: XTX) has fallen almost 27% over this same period.

ASX tech shares have faced headwinds on several fronts.

First, the last year has seen central banks the world over pivot from lowering interest rates to hiking them, or at the very least staying put. And growth shares like tech companies, which are often priced with higher future earnings in mind, tend to be sensitive to any moves in borrowing costs.

The tech sector has also taken a hit from a development of its own devising. Namely AI.

In what you may have heard called the ‘SaaSpocalypse’, a lot of Aussie and global technology stocks came under pressure amid investor concerns that AI could potentially replace the services these companies currently provide.

Now, that’s the year just past.

Looking ahead, Red Leaf Securities’ John Athanasiou has drilled into two ASX tech shares he believes are well-placed to outperform (courtesy of The Bull).

ASX tech share primed for a rebound

First up we have Atturra (ASX: ATA), whose shares were recently down around 52% over 12 months, trading for 39 cents apiece.

Which could make now an opportune time to buy.

“Atturra is an AI-driven technology integrator,” Athanasiou said. “It’s focusing on organic growth after integrating a number of acquisitions.”

Turning to some key financial metrics, he noted:

Underlying EBITDA [earnings before interest, taxes, depreciation and amortisation] in full year 2026 is expected to range between $30 million and $30.5 million, which is in line with guidance, while second half operating cash flow is expected to reach between $22 million and $23 million.

Summarising his buy recommendation on the ASX tech shares, Athanasiou concluded:

Atturra plans to invest an additional $3 million in AI, while its SAP business is forecast to grow by more than 50% between fiscal years 2026 and 2027.

If management successfully executes its fiscal year 2027 strategy, Atturra’s earnings profile should materially strengthen.

Which brings us to…

Tech company on the growth path

Athanasiou also issued a buy recommendation on DUG Technology Ltd (ASX: DUG).

Shaking off the broader malaise dragging on the tech sector, DUG shares were recently up around 26% over 12 months, trading for $2.00 apiece.

“This software solutions company is building strong momentum in response to improving revenue, margins and cash flow,” Athanasiou said.

Explaining his buy recommendation on this ASX tech share, he said:

Revenue of US$62.7 million rose 39% in the first nine months of fiscal year 2026. Normalised EBITDA almost doubled to US$20.9 million. Operating cash flow reached US$23.7 million and DUG moved from net debt a year earlier to $US11.4 million in net cash. The earnings mix is also improving.

Demand for DUG’s proprietary MP-FWI imaging technology remains strong, while recurring 4D projects add further revenue visibility. Given accelerating growth, improving cash generation and a stronger balance sheet, DUG remains an attractive technology exposure.

The post Expert names 2 ASX tech shares to buy today appeared first on The Motley Fool Australia.

More reading

• DUG Technology share price sinks 22% on FY26 results
• DUG Technology scores US$9.3m software and HPC contract

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

The share market naturally draws attention towards businesses promising rapid growth or the next major breakthrough.

But building wealth does not always require that sort of excitement.

I think some of the best long-term investments can be companies doing fairly ordinary things, provided they keep doing them well for many years.

Coles Group Ltd (ASX: COL)

Selling groceries is hardly a new business idea.

But that is one reason I like Coles as a long-term investment. Australians need food regardless of which technology trend is dominating the headlines or where we are in the economic cycle.

The opportunity comes from improving a huge existing operation.

Coles has invested heavily in automated distribution and fulfilment centres, which can help move products more efficiently through its network and support the continued growth of online shopping.

Even modest improvements can become meaningful when they are applied across hundreds of stores and millions of customer visits.

I think Coles can continue growing earnings by making its operations more efficient, improving the shopping experience, and serving a gradually expanding Australian population.

Transurban Group (ASX: TCL)

Toll roads are another business that may not generate much excitement, but I think the economics can be attractive over long periods.

This ASX share owns and operates major roads in Australia and North America.

These are pieces of infrastructure used by commuters and businesses every day, often in cities where congestion makes additional road capacity valuable.

Traffic can grow as populations increase, while toll prices generally rise according to agreements attached to each road.

Transurban can also invest in expansions and new projects when suitable opportunities arise.

I think that gives the business a fairly straightforward way to become more valuable over time.

For shareholders, dividends can provide income along the way, while the underlying road network remains difficult for competitors to recreate.

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare provides pathology and diagnostic services across several countries. Again, I wouldn’t say there is anything fashionable about this.

Doctors need tests to diagnose illnesses, monitor patients, and make treatment decisions. As populations grow and age, I think the amount of diagnostic testing required over time should increase.

This ASX share has built a large global network of laboratories and medical professionals, allowing it to serve healthcare systems at significant scale.

The company can also continue expanding through M&A, an approach it has used for many years.

For me, this is the sort of business that does not require extraordinary assumptions about the future. If demand for healthcare keeps increasing and Sonic continues operating well, there should be opportunities to grow.

Foolish takeaway

I would never dismiss an ASX share investment simply because the underlying business sounds boring.

Groceries, toll roads, and pathology testing all solve needs that are unlikely to disappear anytime soon.

If a company can keep serving those needs, reinvest sensibly, and increase earnings over many years, shareholders can still end up with an excellent result.

That is the type of quiet compounding I would be happy to have working in my portfolio.

The post Why I think these boring ASX shares could build serious wealth appeared first on The Motley Fool Australia.

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• How much passive income can I earn off a $1 million superannuation balance?
• 37 ASX shares going ex-dividend next week

Motley Fool contributor Grace Alvino has positions in Transurban Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Transurban Group. The Motley Fool Australia has recommended Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.