Author: openjargon

Self-managed superannuation funds (SMSFs) are a great way to invest in a variety of asset classes, including ASX shares. Residential property is one potential investment, though that area may be less attractive if SMSFs can’t borrow to buy.

Labor and the Greens have reportedly struck a deal to pass the capital gains tax (CGT) and negative gearing changes announced in the Federal budget, while including a new measure to end SMSF borrowing to buy properties.

With that change in mind, I think there are still plenty of compelling investment opportunities, particularly on the ASX share market.

Commercial properties AKA real estate investment trusts (REITs)

SMSF investors could decide to invest in commercial properties instead, which may provide a higher yield than residential properties.

I like investing in real estate investment trusts (REITs) because they’re easy to transact on the ASX. We can buy into a portfolio of properties in a single investment, and the properties are managed for us by property fund managers.

There are various REITs to choose from, including ones based on industrial properties, farmland and so on.

Three of my favourites in the sector include Rural Funds Group (ASX: RFF), which owns farmland, Centuria Industrial REIT (ASX: CIP), which owns industrial property, and Charter Hall Long WALE REIT (ASX: CLW), which owns a diversified portfolio of properties with long leases.

There are other REIT sectors, like shopping centres and office buildings, though they face headwinds, so I’d be very selective about those two areas and only buy REITs at an attractive discount to their net asset value (NAV).

ASX dividend shares with fully franked dividends

An even more attractive area to invest could be companies that pay attractive, fully franked dividends. Franking credits are refundable tax offsets, which are great for Australian SMSF investors.

ASX blue-chip shares could be some of the most reliable businesses to own. I’m thinking of names like Telstra Group Ltd (ASX: TLS), Bunnings and Kmart owner Wesfarmers Ltd (ASX: WES) and Coles Group Ltd (ASX: COL). They each have a solid dividend yield and a track record of increasing their dividends annually over the last few years.

There are a few other S&P/ASX 200 Index (ASX: XJO) shares that have a strong track record of reliability, including Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) and APA Group (ASX: APA). Lovisa Holdings Ltd (ASX: LOV) and JB Hi-Fi Ltd (ASX: JBH) also have an impressive track record of growing dividends over the long-term.

Finally, I’m a big fan of listed investment companies (LICs), which allow investors to diversify and gain exposure to quality assets while also receiving attractive dividend yields and growing payouts.

Some of my favourite LICs for passive income are MFF Capital Investments Ltd (ASX: MFF), WCM Global Growth Ltd (ASX: WQG), L1 Long Short Fund Ltd (ASX: LSF), Future Generation Global Ltd (ASX: FGG), Future Generation Australia Ltd (ASX: FGX), Hearts and Minds Investments Ltd (ASX: HM1) and WAM Microcap Ltd (ASX: WMI).

The post Where should I invest inside SMSFs instead of property? appeared first on The Motley Fool Australia.

More reading

• How to invest $500, $5,000, and $50,000 on the ASX
• Want a pay rise? These ASX dividend shares keep delivering
• 3 top ASX shares to buy for an SMSF
• 3 ASX stocks that should be in every retirement portfolio 
• 3 ASX dividend favourites are hitting 52-week highs today. Are investors getting defensive?

Motley Fool contributor Tristan Harrison has positions in Future Generation Australia, Future Generation Global, Hearts And Minds Investments, L1 Long Short Fund, Mff Capital Investments, Rural Funds Group, Wam Microcap, Washington H. Soul Pattinson and Company Limited, and Wcm Global Growth. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group, Mff Capital Investments, Rural Funds Group, Telstra Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Lovisa and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Woolworths Group Ltd (ASX: WOW) has not been the easiest ASX share to own recently.

Supermarket investing can look simple from the outside, but the reality is more demanding. Customers want value, suppliers want fair prices, regulators are watching, costs keep moving, and competition does not disappear.

Even so, I think Woolworths could be a smart defensive buy for investors looking ahead to FY27.

A business built around repeat decisions

The appeal of Woolworths starts with frequency.

Most households do not think about groceries as an investment theme. They just keep buying them. Week after week, people need food, cleaning products, personal care items, pet supplies, and household essentials.

That repeat demand gives Woolworths a strong base.

The company has a large store network, a major online presence, loyalty data, supply chain scale, and relationships with millions of customers. That gives it many ways to improve the shopping experience, manage stock, personalise offers, and make the weekly shop easier.

I think that customer connection is valuable.

In retail, small gains can matter. A better app, a faster delivery slot, fewer out-of-stocks, sharper pricing on key items, or a cleaner store experience can all influence where people spend their grocery budget.

Defensive does not mean effortless

Woolworths still has plenty of work to do.

Grocery retail has become politically sensitive because households are under pressure. The company needs to balance margins, customer trust, supplier relationships, staff costs, and investment in stores and technology.

That is a difficult balance.

But I think the best defensive businesses are not the ones with no challenges. They are the ones with enough scale, relevance, and cash generation to keep working through them.

Woolworths has those qualities.

It also has a place in the economy that should remain important regardless of market mood. People may delay a holiday, a new appliance, or a home renovation. They still need groceries.

Why I’d consider buying Woolworths shares

For investors, the question is whether Woolworths can turn its defensive position into acceptable long-term returns.

I think it can.

The company does not need to become a high-growth technology stock. It needs to keep earning customer trust, improve productivity, use data well, invest in online and store operations, and return cash to shareholders over time.

That may sound unexciting, but it can be valuable in a diversified portfolio.

Woolworths can provide a different kind of exposure to the ASX. It is linked less to commodity prices or banking margins and more to everyday household spending. That can make it useful when investors want stability.

Foolish takeaway

Woolworths is not a perfect business, but I think it remains a useful one.

The company sits close to Australian households, has scale that few retailers can match, and operates in a category where demand keeps returning. In FY27, that kind of resilience could be appealing if investors remain nervous about the economy.

The investment case is about owning a business that can keep serving customers, generating cash, and adapting to a tougher retail environment. For investors wanting a defensive ASX share with long-term relevance, I think Woolworths is worth considering.

The post Could Woolworths shares be a smart defensive buy for FY27? appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend favourites are hitting 52-week highs today. Are investors getting defensive?
• Are Woolworths shares still a buy at a 52-week high?
• This ASX 200 giant just hit a 52-week high. Is it getting too expensive?
• Woolworths shares soar to new multi-year high: Buy, sell or hold?
• One ASX dividend and one ASX growth stock to buy now

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.

US stocks have set new records this year while Australia’s benchmark S&P/ASX 200 Index (ASX: XJO) has barely risen.

The S&P 500 Index (SP: INX) is up 9% in the calendar year to date (YTD) and hit a record 7,620.9 points on 2 June.

The Nasdaq Composite Index (NASDAQ: .IXIC) reached a new peak of 27,190.21 points on 1 June, and is up 13% YTD.

The Dow Jones Industrial Average (DJX: .DJI) touched a new high of 52,281.19 points on 17 June, and has lifted 8% YTD.

Meanwhile, at the time of writing, ASX 200 shares have risen by less than 1% in 2026.

Here’s why.

US stocks are smashing ASX shares in 2026

Drew Meredith, a principal advisor at Wattle Partners, says the performance gap can be attributed to artificial intelligence (AI).

In an article on The Golden Times, Meredith explained:

The United States market is being driven by a small number of companies with outsized earnings power, almost all tied to artificial intelligence infrastructure.

Nvidia, Microsoft, Alphabet, Meta, and Amazon have delivered earnings growth that justifies, at least in part, the premium valuations US indices now carry.

Meanwhile, ASX shares are being held back by several elements that have little to do with the quality of our listed companies.

Meredith says:

The Federal Budget’s CGT reform package has weighed on sentiment in financial stocks, property, and healthcare.

The US-Iran conflict has created energy price uncertainty that hurts an economy reliant on stable commodity exports.

The Australian consumer sector is also weak, with confidence falling to one of its poorest levels in 50 years last month.

On top of that, the ASX does not have many companies exposed to the AI earnings cycle in the same way that the US markets do.

Our tech sector is pretty small. In fact, tech shares comprise just 2.1% of the ASX 200.

Should you buy US stocks?

Meredith warns against chasing performance, commenting:

If you are sitting with a predominantly Australian portfolio watching the gap widen, you are probably feeling a pull to do something.

That pull is understandable. It is also the thing most likely to cost you money.

Meredith explains a phenomenon called “recency bias”.

When one market dramatically outperforms another for two or three years, investors feel they were wrong to be diversified. That feeling is not evidence. It is recency bias.

The periods of sharpest US outperformance relative to global peers have consistently been followed by periods of mean reversion.

This happened after the dot-com peak in 2000. It happened in the early years after the GFC when US banks were recovering and Australian miners were printing money.

It does not happen on a schedule you can predict, which is precisely why systematic diversification matters more than tactical shifts.

‘Mean’ is a statistical term for ‘average’. Mean reversion is the idea that share prices don’t stay unusually high or low forever. They tend to move back toward their historical average over time.

How switching from ASX shares to US stocks will cost you

One of the biggest reasons not to switch from underperforming ASX shares into outperforming US stocks today is the tax implications.

Meredith, a retirement wealth specialist, explains it this way:

For many retirees who built their Australian equity positions over decades, switching from Australian to global exposure carries a meaningful capital gains tax cost.

Selling a long-held parcel of BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), or CSL Ltd (ASX: CSL) to buy more Vanguard MSCI Index International Shares ETF (ASX: VGS), Global X Fang+ ETF (ASX: FANG), or iShares S&P 500 AUD ETF (ASX: IVV) is not a free transaction.

If those shares have large embedded gains and you are selling them in a year where the CGT discount is already under political threat, the timing adds an additional layer of risk.

What should you do?

Meredith said investors shouldn’t sell ASX shares while they’re soft today to buy US stocks at a cyclical high.

You may end up paying a big CGT bill for what will become a diminishing performance gap as US stocks undergo mean reversion.

The most prudent step is to check how your portfolio’s composition has changed this year.

Meredith advises:

Check your allocation. Not your recent returns, your allocation.

If your target was 40 per cent Australian equities, 25 per cent global equities, 20 per cent fixed income, and 15 per cent cash two years ago, what is it now?

If market movements have drifted you significantly off target, a disciplined rebalance to target is reasonable. That is not performance chasing. It is maintenance.

If you have cash to invest and want more global exposure, a regular contribution into the plethora of global ETFs could be an option.

The post Why US stocks have hit record highs while ASX shares have barely risen in 2026 appeared first on The Motley Fool Australia.

More reading

• How to invest $500, $5,000, and $50,000 on the ASX
• Want a pay rise? These ASX dividend shares keep delivering
• 3 strong ASX ETFs for beginner investors
• How much passive income can I make from ASX shares?
• The retirement ETF portfolio I’d add to super

Motley Fool contributor Bronwyn Allen has positions in BHP Group and Vanguard Msci Index International Shares ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, CSL, Meta Platforms, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, BHP Group, CSL, Meta Platforms, Microsoft, Nvidia, Vanguard Msci Index International Shares ETF, 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.

If you are searching for some new investment options, then it could pay to listen to what the team at Morgans is saying about the three in this article.

Does it rate them as buys, holds, or sells? Let’s find out:

Beach Energy Ltd (ASX: BPT)

Morgans hasn’t been impressed with this energy producer’s operational performance. And, unfortunately, it believes the trend will continue and suspects that it could fall short of guidance in FY 2027.

As a result, it recently downgraded Beach Energy shares to a sell rating with a reduced price target of 81 cents. This compares to its current share price of 85 cents. It said:

We mark-to-market our second half estimates for weaker spot gas prices, while also trimming our Waitsia output forecasts for FY26-28 on continuing struggles. After downgrading our Q4 estimates for daily production rates, we see potential for BPT to fall just short of its FY27 group production guidance.

While BPT’s share price has already been under pressure, its earnings outlook has declined at a faster rate, with its forward EV/EBITDA actually rising. We downgrade our recommendation to Sell (from Hold) with a revised target price of A$0.81 (was A$1.10).

Flight Centre Travel Group Ltd (ASX: FLT)

While this travel agent recently downgraded its earnings guidance, Morgans has been far more forgiving.

It appears to believe that the worst is now behind the company and that a sharp rebound in earnings and its valuation could be on the cards soon.

This has seen Morgans put a buy rating and $14.80 price target on its shares. This is meaningfully higher than the current Flight Centre share price of $11.99. It commented:

Given recent downgrades from other travel industry peers due to the conflict in the Middle East, FLT’s downgrade wasn’t a surprise. Given its balance sheet strength and depressed share price, a new up to A$200m share buyback was announced. We have made only minor changes to our forecasts given FLT’s guidance was broadly in line with our previous forecast.

While a peace agreement and eased travel restrictions are positive, we think 1H27 will still be challenging. We forecast a strong recovery in 2H27. If it wasn’t for this conflict, FLT would have had a great year given its results for the first nine months were strong. We are buyers of FLT because when operating conditions ultimately improve, both its earnings and share price will be materially higher.

Judo Capital Holdings Ltd (ASX: JDO)

Another ASX share the broker is sticking with after an earnings guidance downgrade is small business lender Judo Capital.

It thinks the selling has been overdone and has retained its buy rating with a reduced price target of $1.47. This compares to the current Judo Capital share price of 88 cents. It said:

JDO downgraded its FY26 PBT guidance by c.8% at the mid-point. Even more disappointing was first-time FY27 PBT guidance which was c.16% below expectations at the mid-point. The share price drawdown was vicious (particularly considering the decline that had already occurred since February).

While the earnings growth outlook has moderated, we still forecast c.30% EPS growth across both FY26 and FY27 with the stock now trading on a c.6.8x PER (FY27F) and 0.6x P:BV (end-FY26). A significant risk premium or probability of failure has been priced into the stock. BUY.

The post Buy, hold, sell: Beach Energy, Flight Centre, and Judo Capital shares appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy right now
• 6 ASX shares with upgraded ratings from experts this week
• Why Beach Energy, Ioneer, Solstice Minerals, and Transurban shares are pushing higher today
• Why 4DMedical, Centuria Capital, Judo Capital, and Worley shares are dropping today
• Why DroneShield, WiseTech and Judo shares are leading the ASX 200 lower this week

Motley Fool contributor James Mickleboro 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 Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The amount of money you have to invest can change the best way to approach the ASX.

A $500 investment needs simplicity. A $5,000 investment gives more room for choice. A $50,000 investment allows investors to think more carefully about diversification, income, growth, and risk.

Here is how investors could think about putting each amount to work.

How to invest $500 in ASX shares

With $500, the most important thing is getting started sensibly.

A smaller investment does not leave much room to build a portfolio of individual shares. Brokerage costs can also impact you more when the investment amount is modest.

That is why an ASX exchange traded fund (ETF) could be a useful starting point.

A fund such as the iShares S&P 500 ETF (ASX: IVV) gives investors exposure to 500 of the largest listed companies in the United States through one trade.

That includes businesses across technology, healthcare, financial services, consumer goods, communication services, and industrials.

This can be a simple way to gain instant diversification and global exposure. It also removes the pressure of trying to choose the perfect first share.

The first $500 may not transform a portfolio overnight, but it can create momentum. Once the first investment is made, investors can add more over time and allow compounding to do more of the work.

How to invest $5,000

With $5,000, investors have more flexibility.

One option would be to split the money between a broad ETF and one or two high-quality ASX shares.

For example, an investor could use part of the money for the IVV ETF or the Vanguard MSCI Index International Shares ETF (ASX: VGS), then put the remainder into a quality ASX blue chip.

Wesfarmers Ltd (ASX: WES) could be one option. The company owns Bunnings, Kmart, Officeworks, and industrial businesses, giving investors exposure to a collection of strong brands and cash-generating assets.

Another possibility is Goodman Group (ASX: GMG), which has exposure to logistics property, industrial assets, and data centres across key global markets.

The advantage of this approach is balance. The ETF provides diversification, while the individual shares allow investors to start building positions in companies they believe can compound over time.

At this level, investors should still avoid spreading the money too thinly. Owning too many small positions can make the portfolio harder to follow and may reduce the impact of the best ideas.

How to invest $50,000

A $50,000 investment opens up more choices. At this size, investors can build a more complete ASX portfolio with a mix of ETFs, growth shares, dividend shares, and defensive holdings.

A possible structure could include a core allocation to broad ETFs such as the IVV, VGS, or the Vanguard Australian Shares Index ETF (ASX: VAS). These funds can provide exposure to large baskets of local and international companies.

From there, investors could add selected ASX shares.

For growth, companies such as Xero Ltd (ASX: XRO), Pro Medicus Ltd (ASX: PME), and Goodman could be worth considering. These businesses give exposure to cloud software, medical imaging technology, and global property infrastructure.

For income, investors may look at shares such as Transurban Group (ASX: TCL), APA Group (ASX: APA), or Rural Funds Group (ASX: RFF). These offer exposure to toll roads, energy infrastructure, and agricultural property assets.

With $50,000, risk management becomes more important. Investors can spread money across different sectors, avoid relying too heavily on one company, and keep some cash available for future opportunities.

Build the habit

The best approach will depend on an investor’s goals, time horizon, risk tolerance, and need for income.

But the broad idea is quite simple. Start with diversification when the investment amount is small, add quality shares as the portfolio grows, and build a stronger mix of growth, income, and defensive exposure once the capital base becomes larger.

The post How to invest $500, $5,000, and $50,000 on the ASX appeared first on The Motley Fool Australia.

More reading

• Why US stocks have hit record highs while ASX shares have barely risen in 2026
• Want a pay rise? These ASX dividend shares keep delivering
• 3 strong ASX ETFs for beginner investors
• 3 top ASX shares to buy for an SMSF
• The retirement ETF portfolio I’d add to super

Motley Fool contributor James Mickleboro has positions in Goodman Group, Pro Medicus, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Transurban Group, Wesfarmers, Xero, and iShares S&P 500 ETF. 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 Apa Group, Rural Funds Group, Transurban Group, and Xero. The Motley Fool Australia has recommended Goodman Group, Pro Medicus, 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.

Many companies pay dividends. Far fewer ASX dividend shares manage to increase them year after year, through economic booms, recessions, market crashes, and everything in between.

That’s what makes these three ASX dividend shares stand out. Each has built a reputation for rewarding shareholders with growing income streams over long periods of time. For income-focused investors, they could be worth a closer look.

APA Group (ASX: APA)

APA Group owns and operates critical energy infrastructure across Australia, including gas pipelines, electricity transmission assets, and renewable energy connections.

Its biggest strength is the essential nature of its assets. Much of APA’s revenue comes from long-term contracts, providing relatively stable cash flows regardless of economic conditions. That predictability has helped support one of the most impressive distribution growth records on the ASX.

The ASX dividend share has increased its annual distribution every year since 2004, delivering more than two decades of uninterrupted growth for investors.

The company has lifted its FY26 annual distribution to 58 cents per security. Based on the current share price, that equates to a distribution yield of around 5.6%.

There are risks to consider. APA carries significant debt and remains exposed to regulatory changes and the long-term transition away from fossil fuels. However, its growing exposure to electricity and renewable energy infrastructure could help offset some of those challenges.

Bell Potter expects APA to pay a distribution of 59 cents per security in FY27. Based on the current share price of $10.36, that would represent a forward yield of approximately 5.7%.

Argo Investments (ASX: ARG)

Argo Investments is one of Australia’s oldest listed investment companies.

Rather than operating a business directly, this ASX dividend share owns a diversified portfolio of high-quality ASX shares. Some of its largest holdings include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Rio Tinto Ltd (ASX: RIO).

Its strength lies in that diversification. Investors gain exposure to dozens of leading Australian companies through a single investment, helping reduce company-specific risk.

Argo has paid dividends every year since its inception in 1946. Even more impressively, those dividends have been fully franked since 1995.

While payouts do not rise every single year, the long-term trend remains strongly positive. Since 2010, shareholders have enjoyed dividend increases in most financial years.

The company recently announced an 8.8% increase in its interim dividend to 18.5 cents per share.

Combined with its previous dividend, Argo’s latest two payouts total 38.5 cents per share. At current prices, that translates to a grossed-up dividend yield of approximately 4.3%, including franking credits.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Washington H. Soul Pattinson has become something of a dividend-growth machine.

The investment company has increased its annual dividend every year since 1998, putting it on the verge of three decades of consecutive dividend growth.

A key reason for that success is diversification. Soul Patts owns investments across energy, resources, telecommunications, industrial property, building products, agriculture, financial services, electrification, swimming schools, and more.

That broad portfolio helps the ASX dividend share generate cash flow from multiple sources and reduces reliance on any single sector.

Importantly, management doesn’t distribute all available cash to shareholders. It retains capital and reinvests it into new opportunities, helping grow future earnings and dividends.

This combination of diversification, disciplined capital allocation, and long-term investment growth has enabled Soul Patts to steadily increase shareholder payouts across a wide range of market environments.

Its two most recent dividends currently equate to a grossed-up dividend yield of approximately 3.5%, including franking credits. For investors seeking a growing income stream, that consistency may be just as valuable as the yield itself.

The post Want a pay rise? These ASX dividend shares keep delivering appeared first on The Motley Fool Australia.

More reading

• Why US stocks have hit record highs while ASX shares have barely risen in 2026
• How to invest $500, $5,000, and $50,000 on the ASX
• How much passive income can I make from ASX shares?
• 3 ASX dividend favourites are hitting 52-week highs today. Are investors getting defensive?
• 8 ASX 200 shares with reaffirmed buy recommendations this week

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 Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Apa Group and Washington H. Soul Pattinson and Company Limited. 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.

I think a good beginner exchange traded fund (ETF) should be easy to understand, diversified enough to reduce single-company risk, and connected to a long-term idea that still makes sense years from now.

But which ones could tick these boxes?

Here are three ASX ETFs that could be strong options for beginner investors.

iShares S&P 500 AUD ETF (ASX: IVV)

The first ASX ETF to look at is the iShares S&P 500 ETF.

For beginners, the value of this fund is that it gives instant exposure to the engine room of the US share market.

That means investors are not trying to guess which single American company will dominate the next decade. They are buying a portfolio that includes many of the companies already sitting at the centre of global business, technology, healthcare, finance, and consumer spending.

Holdings include NVIDIA (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT).

These companies are not just names on a screen. They help power artificial intelligence, smartphones, cloud computing, software, app ecosystems, and enterprise technology used across the world.

This can make it a simple way to make the first investment broad, familiar, and globally relevant.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

Another ASX ETF that could suit beginners is the Betashares Asia Technology Tigers ETF.

This fund gives investors exposure to Asia’s technology sector, which plays a very different role from Silicon Valley.

Asia is central to the hardware, manufacturing, memory chips, semiconductors, ecommerce, gaming, and digital platform economy. In many ways, it is where much of the digital world is built, supplied, and used at enormous scale.

Examples of holdings include SK Hynix (KRX: 000660), Samsung Electronics (KRX: 005930), and Taiwan Semiconductor Manufacturing Co (NYSE: TSM).

This makes the ETF useful for investors who want technology exposure that extends beyond the usual US mega-cap names. It can also provide access to companies that are deeply connected to the future of computing and digital consumption.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

A third ASX ETF to consider is the Betashares Global Cash Flow Kings ETF.

This fund is a useful reminder that investing is not just about exciting stories. It is also about businesses that turn sales into cash.

The fund focuses on global companies with strong free cash flow characteristics. That can be valuable because cash gives companies choices. It can fund growth, strengthen balance sheets, support buybacks, pay dividends, and help businesses manage tougher periods.

Holdings include NVIDIA, Visa (NYSE: V), and Costco (NASDAQ: COST).

That gives investors exposure to a mix of technology, payments, and consumer staples, but with a cash generation filter sitting behind the portfolio.

The post 3 strong ASX ETFs for beginner investors appeared first on The Motley Fool Australia.

More reading

• How to build a winning ASX portfolio with just 3 investments
• Where to invest $500 on the ASX right now
• 3 amazing tech ETFs to buy and hold forever
• The ASX investing strategy that could quietly make you rich
• How I’d invest $250 a week in ASX shares to aim for $700,000

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 positions in and has recommended Apple, Costco Wholesale, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, Visa, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Apple, Microsoft, Nvidia, Visa, 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 new report from VanEck has suggested that the potential US-Iran peace deal could remove a key headwind for emerging markets. 

According to the report, talks of a United States-Iran framework agreement that would reopen the Strait of Hormuz and extend the ceasefire have prompted a buying spree in equities and a fall to multi-month lows in Brent crude prices. 

The framework reportedly includes provisions that would allow Iran to resume oil exports immediately, a development that could increase global supply and help explain the market’s reaction.

Where do emerging countries fit into the puzzle?

The term “emerging markets” is often used to describe countries or regions undergoing fast economic growth. It describes countries that are undergoing growth and industrialisation.

While the situation between the US and Iran remains fluid and details are scarce, markets have reacted in a way that suggests a sustained reduction in energy market tensions could lead to lower inflation and, in turn, support a rebound in global growth.

All this would be welcome news for Australian investors, but it may be even better news for emerging markets investors. This is because oil shocks have historically created challenges for many emerging market economies, a pattern that has repeated across multiple energy crises over recent decades.

Higher energy prices are rarely welcome news for countries that rely on imported oil. But focusing only on oil risks missing how much emerging markets have changed over the past decade.

Oil and the US dollar

The US dollar is another reason emerging markets investors are paying attention. 

According to VanEck, historically, periods of US dollar weakness have often coincided with stronger relative performance from emerging markets. 

If oil prices continue to fall, investors may begin to focus on another important driver of emerging market returns: the US dollar.

While reserve allocations are only one component of global capital flows, expectations of continued diversification suggest some investors are positioning for a world in which the US dollar’s dominance becomes less pronounced. If that were to occur, it could provide an additional structural tailwind for emerging market equities.

Why oil is no longer the whole story

VanEck also highlighted that some of the world’s most important technology, manufacturing and industrial companies are now listed in these markets, creating sources of growth that have little to do with commodity prices.

Taiwan, for instance, is home to several of the world’s leading advanced semiconductor manufacturers. South Korea, classified by some as an emerging market, is a global leader in memory chips and electronics. India continues to benefit from favourable demographics and rising domestic consumption.

Elsewhere, economies such as Thailand may benefit if energy costs continue to fall, while commodity producers such as Brazil continue to offer exposure to long-term demand for resources and industrialisation.

How to gain exposure 

For investors seeking exposure to these markets, there are several ASX ETFs to consider. 

The first is VanEck MSCI Multifactor Emerging Markets Equity ETF (ASX: EMKT). 

This ASX ETF provides a diversified portfolio of large and mid-cap stocks from emerging countries.

It selects companies based on four proven factors:

• Value
• Momentum
• Low Size
• Quality.

Another option to consider is the Betashares MSCI Emerging Markets Complex ETF (ASX: BEMG). 

It provides exposure to more than 1,000 stocks across more than 20 emerging countries in fast-growing regions, including Asia, Latin America, Eastern Europe and Africa.

The post Why emerging markets could be a winner after US-Iran peace deal: Expert 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.

Building long-term wealth with exchange-traded funds (ETFs) does not need to be difficult.

In fact, I think one of the biggest advantages of ETFs is that they can stop investors from making the process too hard.

Instead of trying to pick every winning company, investors can buy broad exposure to markets, regions, and asset classes that may grow over time.

If I were using Vanguard ETFs to build wealth over the long term, these are three I would consider buying.

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

The first Vanguard ETF I would look at is the V500 ETF. This ETF gives investors exposure to the S&P 500 Index, which means it owns a broad basket of large US-listed companies.

What I like about this fund is that it gives Australian investors access to a market that has produced some of the world’s most dominant businesses.

The S&P 500 Index is often talked about as a technology-heavy index. But it is also a collection of companies that touch many parts of the global economy. These businesses sell advertising, medicines, chips, insurance, banking services, logistics tools, entertainment, hardware, software, food, and household products.

For long-term wealth-building, I think that kind of exposure is powerful.

V500 also keeps the process simple. Investors do not need to decide whether one US giant will beat another over the next decade. They can own the index and let the stronger businesses carry more weight as they grow.

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

The second Vanguard ETF I would consider is the VAE ETF. This fund gives investors exposure to Asian markets outside Japan, including major economies such as China, India, Taiwan, South Korea, Singapore, and others.

I think this is a useful way to add something different to a portfolio. Asia is not one simple story. It includes world-leading semiconductor companies, large banks, online platforms, consumer brands, manufacturers, insurers, and businesses tied to rising household incomes. It also includes countries with very different growth drivers, demographics, currencies, and political risks.

That mix can make the VAE ETF more volatile than a broad global developed-market ETF. But I think it can also make it interesting for long-term investors.

The region has large populations, expanding middle classes, deep manufacturing networks, and an important role in global technology supply chains. If more economic value continues to build across Asia over the coming decades, an ETF like the Vanguard FTSE Asia Ex Japan Shares Index ETF could help investors capture some of that growth without needing to choose individual companies or countries.

Vanguard Diversified High Growth Index ETF (ASX: VDHG)

The third Vanguard ETF I would consider is the VDHG ETF. This fund is different because it is designed as an all-in-one diversified portfolio. It holds a mix of Australian shares, international shares, and other asset classes, with a strong tilt toward growth assets.

I like the simplicity of that. For investors who want one fund that does a lot of the organising for them, the VDHG ETF can be appealing. It spreads money across markets and regions, which can reduce the temptation to constantly adjust the portfolio based on the latest headlines.

That behavioural benefit should not be underestimated. A lot of long-term wealth-building comes down to staying invested. A diversified fund can make that easier because investors are less reliant on one country, one sector, or one narrow theme.

The VDHG ETF will still move with markets. It can fall when global shares fall. But for investors who want a set-and-keep-building approach, I think it can play a useful role.

Foolish takeaway

The best ETF portfolio is not always the one with the most moving parts.

What I like about this group is that it gives investors several ways to build wealth without needing to pick every winning company. There is exposure to large US businesses, Asian markets, and a diversified all-in-one portfolio that can help keep the process simple.

Long-term wealth is rarely created by making one perfect decision. It is usually built by owning sensible assets, adding money regularly, and letting compounding work for longer than feels exciting.

The post 3 Vanguard ETFs to build long-term wealth appeared first on The Motley Fool Australia.

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• 3 reasons why the VDHG ETF could be a top buy and hold investment
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• 3 ASX ETFs I’d buy if I wanted easy global investing

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.

Running a self-managed super fund (SMSF) means thinking carefully about quality and diversification.

The best shares for a SMSF will often be businesses that can grow across many years, generate reliable cash flow, and justify a place in a long-term portfolio.

Here are three ASX shares that could be worth considering.

Breville Group Ltd (ASX: BRG)

Breville could be an ASX share for SMSF investors to consider.

It is a global kitchen appliance business with a strong position in categories such as coffee machines, cooking appliances, food preparation, and other premium household products.

What arguably makes the company attractive for an SMSF is that it has turned everyday kitchen equipment into a brand-led global growth story. A coffee machine is not just a one-off appliance purchase. It can become part of a daily routine, especially as more households invest in better at-home food and drink experiences.

Consumer spending can move in cycles, and premium appliances may face pressure when household budgets tighten. But Breville’s brand, product design, and international runway could make it a strong long-term compounder inside a patient SMSF portfolio.

Macquarie Group Ltd (ASX: MQG)

Another ASX share that could suit an SMSF is Macquarie. It operates across asset management, banking and financial services, commodities and global markets, and investment banking. That gives it exposure to a wide range of profit pools across global finance.

Its strength is adaptability. Macquarie has built a long record of finding opportunities across infrastructure, energy, commodities, markets, private capital, and specialist finance. That can make earnings more variable from year to year, but it also gives the business more ways to create value over a full cycle.

This can be attractive for SMSF investors who are thinking long term.

Wesfarmers Ltd (ASX: WES)

A third ASX share to consider is Wesfarmers. It the retail conglomerate behind a collection of strong businesses, including Bunnings, Kmart, Officeworks, Wesfarmers Chemicals, Energy and Fertilisers, Wesfarmers Industrial and Safety, and Wesfarmers Health.

This structure can be useful for an SMSF because the company is not relying on a single brand or market to generate all its returns. Bunnings gives exposure to home improvement, Kmart offers scale in value retail, Officeworks serves households and businesses, and its industrial divisions add a different earnings stream.

Wesfarmers’ real skill is capital allocation. Management has consistently reshaped its portfolio, invested in stronger businesses, exited assets when needed, and returned capital when appropriate. That discipline is important in a long-term superannuation setting, where compounding depends on decisions made over many years.

The post 3 top ASX shares to buy for an SMSF appeared first on The Motley Fool Australia.

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• Where to invest your Westpac dividends
• 3 ASX blue chip shares to buy and hold for the next 20 years
• 3 quality ASX shares I’d buy (that aren’t CBA or Wesfarmers)
• If I invest $5,000 in Wesfarmers shares, what passive income will I get in 2027?
• How much is needed in superannuation to target an $11,000 monthly passive income?

Motley Fool contributor James Mickleboro 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 Macquarie Group and Wesfarmers. The Motley Fool Australia has recommended 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.