Author: openjargon

Serious money continues to flow into three of the ASX’s most popular exchange-traded funds (ETFs), with Vanguard Australian Shares Index ETF (ASX: VAS), Vanguard MSCI International Shares ETF (ASX: VGS) and iShares S&P 500 ETF (ASX: IVV) now collectively managing close to $50 billion in funds under management.

These three ASX ETFs form the backbone of countless long-term portfolios, offering broad exposure to Australia, global markets and the world’s largest economy.

But after strong gains and shifting global conditions, investors may be asking whether they still deserve a place in a modern portfolio.

Aussie classic

The Vanguard Australian Shares Index ETF remains the core domestic building block for many investors, tracking the performance of the ASX’s largest companies.

The ASX ETF has delivered around 5% over the past 12 months, reflecting steady but modest growth compared to global markets.

Two of its largest holdings include Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP), giving investors exposure to both financials and resources.

The strength of VAS lies in its diversification across Australia’s leading companies and its consistent dividend income stream. However, risks remain, particularly its heavy concentration in banks and resources, which can make returns heavily dependent on domestic economic conditions and commodity cycles.

US tech heavy ETF

The iShares S&P 500 ETF has been one of the strongest performers among the trio, rising around 15% over the past 12 months.

This ASX ETF gives investors exposure to 500 of the largest US companies and has been driven by strong earnings growth in American technology and consumer sectors.

Two of its biggest holdings include Apple Inc. (NASDAQ: AAPL) and Microsoft Corporation (NASDAQ: MSFT), both of which have been key beneficiaries of artificial intelligence and cloud computing trends.

The strength of IVV lies in its exposure to global innovation leaders and long-term US economic growth. However, risks include currency fluctuations for Australian investors and a heavy concentration in US mega-cap technology stocks, which can increase volatility if sentiment shifts.

True global reach

The Vanguard MSCI International Shares ETF provides broad global diversification outside Australia and has returned around 12% over the past year.

This ASX ETF invests across developed markets, reducing reliance on the Australian economy and offering exposure to a wide range of industries and geographies.

Two of its largest holdings include Apple and NVIDIA Corporation (NASDAQ: NVDA), giving investors exposure to both established tech leaders and high-growth semiconductor demand.

VGS is often viewed as a long-term portfolio stabiliser due to its global reach. However, it still carries risks linked to international market cycles, geopolitical uncertainty and currency movements, all of which can impact returns for Australian investors.

Foolish takeaway

Despite strong recent performance across all three funds, these ASX ETFs continue to play distinct and complementary roles in long-term portfolios. VAS offers domestic stability and dividends, IVV provides high-growth US exposure, and VGS delivers global diversification.

For many investors, the combination remains a powerful foundation for building wealth over time. But understanding each ETF’s risks and exposures is essential in deciding whether they still deserve a place in your portfolio today.

The post Are these ASX ETF giants still worth buying today? appeared first on The Motley Fool Australia.

More reading

• How much do I need to invest in ASX shares for $500 a month of passive income?
• 3 ASX ETFs that could be top picks for beginners
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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 Apple, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Apple, BHP Group, 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.

Plenty of ASX shares are receiving updated guidance from experts as companies release quarterly results and announcements. 

Three ASX shares have just been given fresh buy recommendations from the team at Morgans. 

Here’s what the broker had to say. 

HMC Capital (ASX: HMC)

HMC is an ASX-listed property company focusing on ownership, development, and management of real estate assets.

The company released a business update last week.

Following this update, the team at Morgans slapped a fresh buy rating on this ASX stock, suggesting it can rebound from the 27% fall year to date. 

The broker said HMC’s 3QFY26 update outlined a strategic shift to a more focused and simpler business model – concentrating on: 

• Growing FUM across existing verticals (health, energy, digital and real estate)
• Delivering returns across the various co-investments (distributions and fair value gains)

With FUM continuing to grow across real estate and private credit and an expectation HCW distributions may recommence in c.FY27, the c.40cps of NPBT in FY27 looks baseline and leaves the business trading on a modest 10x PER, while the current share price is underpinned by a mark-to-market NTA of c.$2.10/sh or c.$2.69/sh when adopting our target prices for the underlying listed funds.

On this basis, the broker retained its buy recommendation with a $4.05 target price.

At the current price of $2.94, this indicates an upside potential of 38%. 

Magellan Financial Group (ASX: MFG)

Magellan is an Australian-based funds manager investing in global equities and global listed infrastructure.

It released an update on May 5th and announced the transfer of management of its Global Equities funds (MGOC and the Hedged Fund, ~A$5.3bn AUM) to Vinva Investment Management, a Sydney-based systematic equity manager with A$47bn+ AUM in which MFG already holds a 28% stake. 

Morgans has maintained its buy recommendation, but has acknowledged that in terms of financial impact, it estimates a revenue reduction of approximately A$29m in year one, partially offset by management’s flagged cost savings of ~A$7m.

While changes are clearly needed to revive MFG’s stalled funds management franchise, this update is a reminder that the path forward may involve some short-term pain.

The broker’s updated price target of $11.19 (previously $11.99) still implies a 30% upside from current levels. 

Orica (ASX: ORI)

Orica is a leading global manufacturer and supplier of explosives and blasting systems, primarily to the mining industry.

It released its half-year results last week.

ORI’s 1H26 result beat consensus estimates across all business units. Cashflow was much stronger than feared and the balance sheet is in strong shape. Consequently, the Board rewarded shareholders with a step-up in the dividend. The outlook remains positive and further growth is targeted in FY26 and over the medium term. 

Our forecasts remain largely unchanged. With leverage to attractive industry fundamentals, market leading positions, solid earnings growth, proven management team and strong balance sheet, we reiterate our BUY rating with a new price target of A$26.60.

From its current share price of $22.13, this price target indicates an upside potential of 20%. 

The post Three ASX shares with fresh buy recommendations to target this week appeared first on The Motley Fool Australia.

More reading

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• 8 ASX 200 shares with renewed buy ratings this week
• 2 ASX All Ords shares to buy now: broker
• Here are the top 10 ASX 200 shares today
• Why is this ASX industrial stock storming higher today?

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 positions in and has recommended HMC Capital. The Motley Fool Australia has recommended HMC Capital. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX industrials stock SKS Technologies Group (ASX: SKS) has been in focus this year after racing ahead of the market. 

Since the start of 2026, it has risen 110%. 

SKS Technologies engages in the development and distribution of technology products. It provides audiovisual products & solutions and electrical and communications cabling for the commercial, retail, health, defense and education market.

In the last 12 months, it has exploded more than 400%. 

After such a rapid rise, prospective investors are likely questioning if it’s too late to jump on board this runaway train. 

Last week, the company released key announcements regarding new contracts.

What did this ASX industrials stock announce?

SKS Technologies has received written confirmation from Buildcorp Group Pty Ltd for the award of a contract to supply and install a fully integrated electrical technology solution for a major retailing group for its new headquarters in Melbourne’s Docklands precinct. 

The project is valued at approximately $22 million. 

SKS Technologies Chief Executive Officer, Matthew Jinks, said:

The awarding of this project reflects our reputation and position in the market for quality and capability, reinforcing our business as a trusted partner for complex, large-scale commercial developments. It also further strengthens market confidence in our team’s ability to execute critical infrastructure with precision, safety and efficiency.

The project is due for completion in 1Q28.

This catapulted the share price to a new record high last week, and prompted updated guidance from the team at Morgans. 

Here’s what the broker had to say. 

$1.2bn pipeline sparks further confidence 

Morgans said SKS’s $22m contract win for the new Coles head office sees the group work in hand expand to $355m ($270m for FY27), with SKS’s Tenders pipeline exceeding $1.2bn (of which >$1bn relates to prospective data centre projects). 

SKS’s share price momentum increasingly reflects confidence in the group’s strong FY27 outlook, and ability to win a greater share of its healthy pipeline of prospective data centres. We lift our PBT forecasts by ~12-15% in FY27-28F, reflecting our expectations for further conversion of SKS’s share of this pipeline over the year ahead.

Based on this guidance, Morgans retained its accumulate rating, with a revised price target of $8.95.

While this optimism is reassuring for holders of the stock, those on the outside looking in have likely missed the majority of growth.  

From yesterday’s closing price of $8.32, this updated price target indicates a modest upside of 7% for this ASX industrials stock.

The post This ASX industrials stock has doubled in 2026 – is there any more upside according to Morgans? 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 recommended Sks Technologies Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The team at Morgans have adjusted their outlook on these ASX shares following key updates over the last week. 

Despite the downgrade, Credit Group (ASX: CCP) and Amcor Plc (ASX: AMC) still have buy recommendations from the broker. 

These ASX shares have fallen significantly this year, however Morgans does see a rebound in sight. 

Here’s the latest from the broker. 

Credit Corp’s trading update broadly positive

Credit Corp released a trading update last week which led to a 10% single-day rise.

The debt collector revealed that it is on track to deliver record earnings in FY 2026. 

It is projecting net profit after tax of $100 million to $110 million, which would be up from $94 million in FY 2025. 

It also advised that its ledger investments will be higher than previously expected at $295 million to $330 million and gross lending is now projected to be higher at $420 million to $430 million.

Morgans maintained its buy recommendation but lowered its price target to $19.15 (previously $19.35). 

Management noted CCP is on track for strong earnings, with investment providing “a platform for growth in FY27”. Sustained delivery of the 3Q PDL momentum, alongside conversion of the US scale-up is key to a re-rating in our view. CCP is trading on ~7x FY27 PE, which we view as undemanding given the earnings profile.

From yesterday’s closing price of $11.505, this indicates an upside potential of 66%. 

Amcor results mixed

Amcor also released an important update last week in the form of quarterly results.

It reported a 77% rise in net sales to US$5.91 billion and an 87% increase in adjusted EBITDA to US$892 million.

Amcor shares jumped 5% following this result, however Morgans were less convinced than the general market. 

The broker said while AMC’s 3Q26 earnings were largely in line with expectations, FY26 underlying EPS and FCF guidance was downgraded. 

Key positives include Berry synergy benefits tracking above initial expectations, continued progress on portfolio optimisation with further non-core asset divestments, and pass-through mechanisms working well with movement in resin prices due to the Middle East conflict not having a material impact on earnings. 

Key negatives include ongoing soft volumes, a downgrade to FY26 underlying EPS guidance (albeit better than feared), a reduction to FCF guidance, and leverage at the end of FY26 now expected to be higher than previously anticipated.

Based on this guidance, the broker reduced its price target to $65.40 (from $68.20). 

From yesterday’s closing price of $55.20, this updated price target indicates an upside potential of 18%. 

Trading on 9.2x FY27F PE with a 6.7% yield, we believe AMC’s valuation remains attractive with Berry synergies tracking well. Further non-core asset sales (particularly the North America Beverage business) will be a potential positive catalyst. BUY rating maintained.

The post Why did this broker just lower its price targets on these ASX shares? appeared first on The Motley Fool Australia.

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• Should you buy Amcor shares for the 7% dividend yield?
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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 positions in and has recommended Amcor Plc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Amcor PLC (ASX: AMC) shares have underperformed over the last 12 months.

On Tuesday, shares in the S&P/ASX 200 Index (ASX: XJO) global packaging giant closed up 0.51%, trading for $55.25 apiece.

Despite that lift, Amcor shares remain down 22.24% since this time last year, trailing the 5.31% 12-month gains delivered by the benchmark index.

However, following on the now completed acquisition of United-States-based packaging company Berry Global last year, Amcor has ramped up its dividends.

The ASX 200 stock is favoured by many passive income investors for making quarterly payouts, rather than just twice per year.

Indeed, in the first two quarters of 2026, the company has declared two unfranked dividends totalling $1.84 a share. That’s up from a total of 39.4 cents a share from the previous two quarterly dividends.

The latest Amcor dividend of 91 cents a share for the March quarter is still up for grabs, by the way. If you want to bank that passive income, you’ll need to own the stock at market close on 26 May. Amcor shares trade ex-dividend on 27 May. You can then expect to see receive that payout on 17 June.

That passive income boost was supported by a 77% year-on-year increase in quarterly net sales to US$5.91 billion. And Amcor’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$892 million leapt by 87%.

Which brings us back to our headline question…

Amcor shares: Buy, hold, or sell?

Sanlam Private Wealth’s Remo Greco recently analysed the outlook for Amcor stock (courtesy of The Bull).

Greco noted that Amcor shares have come under heavy selling pressure since trading at six-month highs in February.

According to Greco:

The global packaging giant’s share price has fallen significantly from recent highs over investor concerns about rising plastic resin costs, which are linked to petrochemical and oil prices.

The RBA’s three consecutive interest rate hikes in 2026 and the resulting rising Aussie dollar, along with the outbreak of the Iran war, have also thrown up headwinds for the stock.

Greco said:

Concerns about potential supply constraints and a stronger Australian dollar have contributed to a weaker share price. The shares have fallen from $67.84 on February 27, a day prior to the start of the Middle East conflict, to trade at $55.32 on May 7.

Connecting the dots, Greco issued a hold recommendation on Amcor shares.

“The sell-off may have been excessive. The stock trades notably below peers and was recently yielding more than 7%. A de-escalation of Middle East tensions would lower earnings risk,” he concluded.

The post Should you buy Amcor shares for the 7% dividend yield? appeared first on The Motley Fool Australia.

More reading

• Why did this broker just lower its price targets on these ASX shares?
• What does Macquarie say Amcor is worth after this week’s quarterly?
• Why Amcor, Credit Corp, Neuren, and Zip shares are charging higher today
• Why Tabcorp, Light & Wonder and Amcor shares are making waves on Thursday
• Why are Amcor shares surging higher today?

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 positions in and has recommended Amcor Plc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are a variety of ways to invest in ASX shares for passive income. That can be in our own names, through a company, a trust, superannuation, and so on.

Investing for passive income in superannuation makes a lot of sense because of the low tax rate.

It’s important to remember that the net income we receive from our investments is what we receive after taxes. An Australian working full-time could end up losing a third of their passive income to tax.

Therefore, investing in superannuation is a much more appealing prospect. Super has a lower tax rate in the accumulation phase compared to normal individual tax rates for a full-time earner. In retirement, the tax rate could be 0%.

But every Australian’s tax position is different, so I’m just going to talk about targeting a certain income level, without mentioning tax any further.

How much is needed in superannuation for $5,000 of monthly passive income?

Receiving $5,000 per month of dividends translates into $60,000 annually. I’m sure most Australians would love to receive that level of dividends each year without having to do any ongoing work for it.

A key question is deciding what sort of investments Australians want to own and the dividend yield that comes with them.

A portfolio with a dividend yield of 6% can be half the size of a portfolio with a dividend yield of 3%.

For example, if a portfolio is $1 million in size with a 6% dividend yield, it would create $60,000 of annual passive income. If a portfolio had a dividend yield of 3%, the portfolio would need to be $2 million in size.

If the portfolio had an average dividend yield of 4%, generating an average of $5,000 in monthly passive income would require a portfolio value of $1.5 million.

The final dividend yield we’ll look at is 5%. It would take a portfolio value of $1.2 million to unlock $60,000 of annual dividends.

The sorts of ASX dividend shares I’d look at

There is a wide range of ASX dividend shares available for superannuation investments, some of which offer higher yields and others that have lower yields (but could deliver more growth).

Some of the lower-yielding names that I’d look at, which could provide solid dividend growth in the coming years, are: Wesfarmers Ltd (ASX: WES), Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), and Lovisa Holdings Ltd (ASX: LOV).

A few mid-range yielding ideas that could provide solid total returns at current valuations include WCM Quality Global Growth Fund (ASX: WCMQ), Telstra Group Ltd (ASX: TLS), Australian Foundation Investment Co Ltd (ASX: AFI), and Centuria Industrial REIT (ASX: CIP).

A few of the higher-yielding names that I’m bullish about for the long-term include WCM Global Growth Ltd (ASX: WQG), Charter Hall Long WALE REIT (ASX: CLW), and Hearts and Minds Investments Ltd (ASX: HM1).

The post How much is needed in superannuation to target a $5,000 monthly passive income? appeared first on The Motley Fool Australia.

More reading

• How much do I need to invest in ASX shares for $500 a month of passive income?
• 3 ASX ETFs that could be top picks for beginners
• 2 big-name ASX 200 shares at 52-week lows that I’d buy and hold
• Major ASX retail stocks sink to year lows: Time to buy?
• What’s going on with this ASX 200 stock today?

Motley Fool contributor Tristan Harrison has positions in Hearts And Minds Investments, Washington H. Soul Pattinson and Company Limited, Wcm Global Growth, and Wcm Quality Global Growth Fund. 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 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.

Passive income is one of the biggest attractions of ASX shares.

Many Australian companies have a long history of paying dividends, and that can make the share market useful for investors who want regular cash flow as well as long-term capital growth.

Of course, dividends are never guaranteed. Companies can cut, pause, or reduce payouts if profits come under pressure. But with a diversified portfolio of quality ASX dividend shares, I think investors can build a useful income stream over time.

Start with the passive income goal

Aiming for $500 a month in passive income means targeting $6,000 a year.

The amount required to generate that income depends on the dividend yield achieved.

For this example, I am going to use a 4% dividend yield. I think that is a sensible starting point because it does not require investors to chase the highest-yielding shares on the market.

A 6% or 7% yield can look attractive, but it can also be a warning sign that the market is worried about the sustainability of the dividend. A 4% target gives investors more room to focus on quality, diversification, and dividend sustainability.

What the maths says

At a 4% dividend yield, an investor would need a portfolio worth around $150,000 to generate $6,000 a year in passive income.

That works out to roughly $500 a month.

That is a large number, but I do not think it should discourage investors. It can be built gradually through regular investing, reinvesting dividends, and allowing the portfolio to grow over time.

What could the portfolio include?

I would want a $150,000 income portfolio to be spread across different parts of the ASX.

The banks could play a role. Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), and ANZ Group Holdings Ltd (ASX: ANZ) have long been popular dividend shares for Australian investors.

I would be careful not to overload the portfolio with banks, but they can provide franked dividends and exposure to large, profitable financial institutions.

Miners could also help with income. BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) can pay large dividends when commodity markets are favourable.

The important thing to remember is that mining dividends can be cyclical. Iron ore, copper, and other commodity prices can move sharply, so I would not treat those payouts as fixed.

Retailers and REITs

Retailers can add another income source.

Wesfarmers Ltd (ASX: WES), Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL), and Harvey Norman Holdings Ltd (ASX: HVN) all offer different types of consumer exposure.

Some are more defensive, such as supermarkets. Others are more cyclical, such as household goods retail. Combining them carefully can help spread risk.

I would also consider real estate investment trusts.

HomeCo Daily Needs REIT (ASX: HDN), Charter Hall Long WALE REIT (ASX: CLW), and Scentre Group (ASX: SCG) can provide property-backed income. REITs can be sensitive to interest rates, but they can also offer attractive distributions from portfolios of income-producing assets.

Foolish Takeaway

To generate $500 a month in passive income from ASX shares at a 4% dividend yield, an investor would need about $150,000 invested.

That income will not be perfectly smooth, and dividends can change from year to year. But I think the goal is achievable with patience and a diversified portfolio.

For me, the key would be spreading the money across banks, miners, retailers, and REITs rather than relying too heavily on one sector.

A 4% yield target is not the most aggressive approach, but I think it gives investors a better chance of building income that is more sustainable over time.

The post How much do I need to invest in ASX shares for $500 a month of passive income? appeared first on The Motley Fool Australia.

More reading

• 3 ASX ETFs that could be top picks for beginners
• 2 big-name ASX 200 shares at 52-week lows that I’d buy and hold
• Major ASX retail stocks sink to year lows: Time to buy?
• Why BHP, GQG, Inghams, and Symal shares are pushing higher today
• Copper is going ballistic. Which ASX shares are riding the boom?

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Harvey Norman and Woolworths Group. The Motley Fool Australia has recommended BHP Group, HomeCo Daily Needs REIT, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Getting started with investing can feel harder than it needs to be.

There are thousands of ASX shares to choose from and plenty of jargon to get through. This is where ASX exchange traded funds (ETFs) can help.

They allow investors to access a basket of companies through a single trade, making it easier to build exposure without needing to pick every stock individually.

Here are three ASX ETFs that could be worth considering for beginners.

Betashares Global Quality Leaders ETF (ASX: QLTY)

The first ASX ETF to look at is the Betashares Global Quality Leaders ETF.

This fund focuses on global companies with strong financial characteristics. These can include high returns on equity, low debt, stable earnings, and solid cash flow generation.

That gives this ETF a simple starting point. Rather than trying to chase the next market winner, it looks for businesses that already have the numbers to support their quality.

Its holdings include companies such as Visa (NYSE: V), Uber (NYSE: UBER), and Lam Research (NASDAQ: LRCX).

For beginners, the appeal is that the Betashares Global Quality Leaders ETF provides exposure to established global companies while applying a quality filter. This can be a useful way to invest internationally without having to analyse every business from scratch.

Betashares Australian Quality ETF (ASX: AQLT)

Another ASX ETF that could appeal to beginners is the Betashares Australian Quality ETF.

This fund focuses on Australian companies with strong quality characteristics. This can include businesses with high return on equity, low financial leverage, and strong cash flow generation.

That makes it different from a traditional broad-market ETF. Instead of simply buying companies based on size, it applies a quality filter to the Australian share market.

Its holdings include companies such as Commonwealth Bank of Australia (ASX: CBA), Goodman Group (ASX: GMG), and Wesfarmers Ltd (ASX: WES).

This approach can be useful for beginners. That’s because it provides exposure to familiar Australian shares, but with a rules-based process that favours financial strength rather than just market size.

VanEck Morningstar International Wide Moat ETF (ASX: GOAT)

A third ASX ETF that could be a top pick for beginners is the VanEck Morningstar International Wide Moat ETF.

It is built around the idea that some companies have stronger competitive advantages than others. These advantages can come from brands, scale, switching costs, intellectual property, or network effects.

The fund invests in international companies that are judged to have sustainable competitive advantages and, importantly, are attractively priced.

Its holdings include Etsy (NYSE: ETSY), NXP Semiconductors (NASDAQ: NXPI), and Nike (NYSE: NKE).

This can make it an attractive option for beginners. The VanEck Morningstar International Wide Moat ETF does not simply buy the broad market. It uses a quality and valuation lens to select companies that may be better placed to protect and build profits over time.

The post 3 ASX ETFs that could be top picks for beginners appeared first on The Motley Fool Australia.

More reading

• 2 big-name ASX 200 shares at 52-week lows that I’d buy and hold
• Major ASX retail stocks sink to year lows: Time to buy?
• What are experts saying about these shares hitting 52-week lows 
• Fast-track your retirement with these ASX shares and ETFs
• Where to invest $20,000 in ASX 200 shares this week

Motley Fool contributor James Mickleboro has positions in Goodman Group and Nike. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Lam Research, NXP Semiconductors, Nike, Uber Technologies, Visa, and Wesfarmers. The Motley Fool Australia has recommended Goodman Group, Lam Research, Nike, VanEck Morningstar International Wide Moat ETF, Visa, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s not too uncommon to see new exchange-traded funds (ETFs) debut on the ASX in this day and age. It seems that every other month sees a new fund float on the ASX. But a space-themed ASX ETF? That is a far rarer sight.

Last month, we discussed the impending debut of the BetaShares Space Industry ETF (ASX: RCKT), and what it could mean for investors interested in technology or space. Today, that ASX ETF has officially been listed on the stock market. RCKT units floated at $14 when the markets opened this morning. However, over the trading day, those units have drifted lower, and are currently going for $13.79 each at the time of writing.

So let’s break down how this ETF works and what investors who are purchasing its units are actually buying.

RCKT-ship? Meet the ASX’s newest ETF

As its name implies, the Betashares Space Industry ETF aims to expose investors to a basket of global shares that are all leaders in the “global space economy”. This is the first ETF on the ASX to have a space focus. It will do so by tracking the Solactive Space Industry Index.

Although RCKT does hold stocks that hail from nine different countries, it is heavily exposed to the United States. As of 8 May, 74.3% of this ASX ETF’s weighted portfolio is dedicated to US stocks. Another 7.2% hail from Japan, its second-largest contributor. Other countries that are represented include Canada, France, South Korea, Sweden and Israel.

In terms of individual stocks, RCKT currently has 28 underlying holdings. These are quite top-heavy, though, with the two largest positions, Rocket Lab USA Inc and AST Spacemobile Inc making up 13.1% and 10.2% of the portfolio, respectively. Other top stocks include Planet Labs, Viasat Inc, and Echostar Corp. Interestingly, taking out the last spot in the ETF, with a weighting of just 0.3%, is the former poster child of commercial space exploration, Virgin Galactic Holdings.

Obviously, since this ETF has only just floated on the American market, it is impossible to provide performance fees. However, Betashares has shared the performance of the underlying index that RCKT tracks. As of 30 April, the Solactive Space Industry Index has returned a monstrous 167.25% over the preceding 12 months, and has averaged a return of 20.46% per annum over the past five years.

No doubt investors will be hoping that RCKT keeps up those kinds of numbers. But we shall have to wait and see.

The Betashares Space Industry ETF charges a management fee of 0.57% per annum.

The post A new space ETF has just debuted on the ASX 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 positions in and has recommended AST SpaceMobile, Planet Labs PBC, and Rocket Lab. The Motley Fool Australia has recommended Rocket Lab. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It was another rough day on the markets for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares this Tuesday. After yesterday’s miserly start to the trading week, investors were in no mood to change course today. By the time trading finished, the ASX 200 had lost another 0.36%, leaving the index at 8,670.7 points.

This tough Tuesday session for Australian investors follows a more optimistic start to the American trading week last night (our time).

The Dow Jones Industrial Average Index (DJX: .DJI) managed to keep its head above water, rising 0.19%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was slightly more downbeat, gaining 0.1%.

Let’s return to the local markets now and take stock of how today’s drop affected the various ASX sectors this session.

Winners and losers

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Newmont. 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 Generation Development Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.