Author: openjargon

BHP Group Ltd (ASX: BHP) shares sped to a 52-week high of $58.41 on Friday.

In the first two months of this year the mining giant has gained 24% in value, which brings the total 12-month gains for BHP shares to 46%. That’s great news for BHP shareholders — myself among them.  

Five years ago, I dipped my toes into the Australian market with one of my very first buys: BHP shares. So, how has this ASX blue chip rewarded my early conviction?

Let’s run the numbers and find out.

Volatile, rewarding stretch

At the end of 2020, I backed the $297 billion ASX mining giant at $36.63 per share. I tipped $24,987 into the market to snap up 682 BHP shares. What followed was one of the most volatile — and rewarding — five-year stretches the miner has seen in decades.

The early days of the investment coincided with global pandemic uncertainty. Commodity prices wobbled, and BHP’s share price dipped into the low $30s as markets panicked.

But what came next was a surge few predicted in scale. Iron ore prices exploded, profits ballooned, and BHP shares climbed beyond $50 during the 2021–2022 commodity boom.

The cycle then cooled as China’s property slowdown weighed on sentiment, sending the stock back toward the high $30s before stabilising and climbing again.

Income and capital growth story

Today, with BHP shares at $58.41, those original 682 shares are worth $39,836. That’s a capital gain of roughly $14,849, a solid outcome on price appreciation alone.

But BHP is as much an income story as it is a capital growth story.

Over the past five years, the miner delivered enormous dividends, particularly during the peak profit years. If those dividends had simply been taken as cash, the investor would likely have collected around $19 per share across the period. On 682 shares, that’s roughly $12,958 in dividend income.

Capital gains plus dividends taken in cash have lifted the total value of my BHP shares to roughly $53,000, more than doubling the initial investment.

Stacking shares

However, this scenario includes participation in the BHP shares dividend reinvestment plan (DRP). Assuming an average share price of $51 across the five years, reinvesting those dividends steadily compounded the holding from 682 shares to 789 shares.

That difference matters.

At today’s $58.41 share price, 789 shares are worth $46,085. Compared to the original $24,987 outlay, that represents a gain of more than $21,000. And importantly, a larger ongoing income stream thanks to owning more shares.

The DRP strategy effectively turned volatile price swings into an advantage. When shares dipped back toward the $30s and $40s, reinvested dividends bought more stock. When the cycle recovered, those additional shares amplified gains.

Powerful total return

The past five years highlight two truths about BHP shares. First, they are cyclical and investors must tolerate sharp highs and lows tied to global commodity demand. Second, when the profit cycle turns in its favour, the dividend firehose can materially accelerate wealth creation.

Whether taken as cash or reinvested, the combination of capital growth and substantial dividends has delivered a powerful total return. For patient investors who rode out the turbulence, the results speak for themselves.

The post I bought 682 BHP shares 5 years ago, this is how they fared appeared first on The Motley Fool Australia.

More reading

• Which ASX 200 mining shares raised their dividends this earnings season?
• 3 of the best blue chip ASX shares I’d buy in March
• ASX 200 materials sector leads as earnings season ends with a record high
• 3 ASX ETFs for a stress-free start to investing
• These ASX 200 shares jumped 15% or more in February

Motley Fool contributor Marc Van Dinther has positions in BHP Group. 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 BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If I had to pick the best ASX dividend stock to buy in March, Telstra Group Ltd (ASX: TLS) would be high on my list.

After its February results, I think the investment case for income-focused investors looks stronger than it has in years.

Here’s why.

A growing dividend

Telstra declared an interim dividend of 10.5 cents per share, which was up 10% on the prior period. Importantly, the dividend was 90.5% franked, with 9.5 cents franked and 1 cent unfranked.

If we annualise that interim dividend, we get 21 cents per share for the full year.

At a share price of $5.18, that implies a forward dividend yield of approximately 4.1%.

And with around 90% franking, the grossed-up yield for Australian investors on lower tax rates looks even more attractive.

But what excites me most isn’t the yield. It’s the trajectory.

CEO Vicki Brady emphasised that the interim dividend uplift is consistent with Telstra’s aim to deliver a “sustainable and growing dividend” supported by strong cash earnings.

This is no longer a flat, stagnant dividend story.

Strong cash earnings underpinning payouts

One of the key reasons I’m comfortable with Telstra as a dividend stock is its improving cash profile.

Telstra delivered 14% Cash EBIT growth in the half and reduced underlying operating expenses by $179 million through cost discipline and efficiency gains.

Importantly, management has tightened FY26 underlying EBITDA guidance to between $8.2 billion and $8.4 billion.

That tightening suggests confidence in the outlook.

When I look at dividend stocks, I want earnings growth, not just higher payout ratios. Telstra’s “Connected Future 30” strategy is focused on driving mid-single-digit growth in cash earnings over time.

That is exactly what you want backing a dividend.

Mobile momentum and pricing power

The mobile business remains the engine room.

Mobiles delivered EBITDA growth of $93 million in the half, driven by higher ARPU and more customers choosing Telstra’s network. Mobile services revenue grew by 5.6%.

That tells me two important things. Telstra still has brand and network strength and it has pricing power in a rational market.

Telecommunications is a critical service. In an uncertain economic environment, that defensive characteristic matters.

Buybacks supporting per-share growth

Income investors should also pay attention to capital management.

Telstra increased its on-market share buyback from up to $1 billion to up to $1.25 billion.

Buybacks reduce the share count, which supports earnings per share and dividend per share growth over time.

That combination of dividend growth and buybacks is powerful.

Foolish takeaway

There are higher-yielding stocks on the ASX. There are also fully franked alternatives.

But I’m looking for sustainable cash flow, growing earnings, defensive demand, strong capital management, and a realistic dividend yield, not a stretched one

At around 4.1% yield, with approximately 90% franking, I think Telstra offers attractive income. More importantly, it offers growth in that income.

After years of restructuring and simplification, Telstra now looks like a more focused connectivity business with improving operating leverage, disciplined costs, and clear strategic direction.

For investors seeking reliable, growing income in March, I think Telstra stands out as one of the best ASX dividend stocks to buy.

The post The best ASX dividend stock to buy in March appeared first on The Motley Fool Australia.

More reading

• How to make $25,000 of passive income a year
• Why I’d buy CBA and these ASX 200 shares in March
• 3 ASX dividend stocks built to pay you year after year
• An Australian dividend stock I’d hold through anything
• Buy Telstra and these ASX dividend stocks for passive income

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

For me, a true blue chip is not just a large company. It is a business with staying power. It has survived cycles, adapted to change, and continued delivering for shareholders over decades.

With that in mind, here are three blue chip ASX shares I would be comfortable buying in March.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is the kind of company I would happily tuck away and forget about for years.

Through Bunnings, Kmart, and its other divisions, Wesfarmers is deeply embedded in the Australian consumer landscape. It sells everyday goods, renovation materials, and essentials that households continue to buy regardless of economic headlines.

What sets it apart is capital discipline. Management will divest underperforming assets and reinvest in higher-return opportunities when the time is right.

Its shares are not always cheap, and it does not always shoot the lights out. But it has a long history of compounding value over time.

That consistency is what I want from a blue chip ASX share.

Commonwealth Bank of Australia (ASX: CBA)

CBA remains the dominant force in Australian banking.

It has scale, a strong deposit base, and a reputation for operational execution. While bank earnings are tied to the economic cycle, CBA has historically delivered strong returns on equity and reliable fully franked dividends.

Critics often argue that it trades at a premium. That may be true.

But premiums are often attached to quality. For investors seeking stability and income, I think CBA continues to earn its place in blue chip portfolios.

BHP Group Ltd (ASX: BHP)

BHP adds global reach and exposure to essential commodities.

Iron ore may dominate headlines, but BHP’s portfolio also includes copper and other resources that underpin infrastructure, electrification, and industrial growth.

Commodity prices will always fluctuate. But BHP’s scale, balance sheet strength, and asset quality give it resilience across cycles.

It is not a defensive stock in the traditional sense, but it is a cornerstone of the Australian market and has delivered substantial returns over long periods.

Why blue chips still matter

It can be tempting to focus solely on high-growth names.

But blue chips serve a purpose. They anchor portfolios. They generate income. They provide a foundation that allows investors to take selective risks elsewhere.

Not every blue chip will outperform every year. But I don’t think that’s the point. The point is durability.

Foolish takeaway

Wesfarmers, Commonwealth Bank, and BHP represent three different parts of the Australian economy: retail, banking, and resources.

They are not flashy. They are not new. But they are established, resilient, and deeply embedded in the market.

For investors looking to build a portfolio that can endure, these are three blue chips I would be comfortable buying today.

The post 3 of the best blue chip ASX shares I’d buy in March appeared first on The Motley Fool Australia.

More reading

• ASX 200 materials sector leads as earnings season ends with a record high
• 3 ASX ETFs for a stress-free start to investing
• These ASX 200 shares jumped 15% or more in February
• The one question I always ask before buying an ASX share
• Game on! BHP retakes biggest ASX stock crown as CBA shares sink

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 recommended BHP Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It was another busy week for Australia’s top brokers. This has led to the release of a number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

DroneShield Ltd (ASX: DRO)

According to a note out of Bell Potter, its analysts have retained their buy rating on this counter-drone technology company’s shares with a reduced price target of $4.80. This follows the release of full-year results that were a touch short of expectations. This was due to a weaker-than-expected gross margin. Nevertheless, Bell Potter remains very positive on the investment opportunity here. The broker highlights that the company has a market-leading offering and a strengthening competitive advantage owing to its years of battlefield experience and large and focused R&D team. Bell Potter is also predicting 2026 to be an inflection point for the global C-UAS industry with a wave of spending on solutions. As a result, it believes DroneShield should see material contracts flowing from its $2.3 billion potential sales pipeline over the next three to six months. The DroneShield share price ended the week at $3.62.

Guzman Y Gomez Ltd (ASX: GYG)

A note out of Macquarie reveals that its analysts have retained their outperform rating on this quick service restaurant operator’s shares with a trimmed price target of $27.30. This follows the release of a half-year result that missed consensus estimates due to another poor performance in the United States market. Macquarie is looking beyond this. It believes the long-term outlook for the Australian business is positive. And while there is uncertainty for the US business, it isn’t overly concerned, noting that management has the option for closing the business if the losses continue. In light of this, it feels that recent share price weakness has created a buying opportunity for investors. The Guzman Y Gomez share price was fetching $19.30 at Friday’s close.

Woodside Energy Group Ltd (ASX: WDS)

Analysts at Morgans have retained their buy rating on this energy giant’s shares with an improved price target of $30.50. According to the note, the broker was pleased with Woodside’s FY 2025 result. It notes that its profit and dividends were ahead of expectations. The good news is that Morgans sees further upside potential ahead from a recovering oil price and the successful execution of new projects. The broker also believes there’s potential for a production guidance upgrade in FY 2026 if everything runs smoothly. The Woodside share price was trading at $28.31 on Friday.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It is not often that high-quality ASX dividend shares go on sale.

But that is exactly what appears to have happened with Lovisa Holdings Ltd (ASX: LOV).

The fashion jewellery retailer’s shares are down 45% from the 52-week high of $43.68 reached in August last year.

And at $23.93, they are now trading not far from their 52-week low of $20.23.

Let’s see why this could be a buying opportunity for income investors.

What’s happening?

This is not a business in decline. In its half-year results, Lovisa delivered total revenue growth of 23.3% to $500.7 million and comparable store sales growth of 2.2%. Underlying net profit after tax rose 21.5% to $69.6 million.

Comparable sales growth has slowed compared to boom periods, but a positive 2.2% comp in a tough consumer environment is hardly alarming. It shows resilience, not weakness.

The real engine of Lovisa is store growth. The ASX dividend share opened 85 new stores during the half, taking its global footprint to 1,095 stores across more than 50 markets.

Europe continues to accelerate, the Americas are scaling, and management has the balance sheet to keep investing. Cash flow from operations rose 30.3% to $183.8 million, providing plenty of fuel for further rollout and earnings and dividend growth.

Should you invest?

The team at Morgans remains bullish on this ASX dividend share. It currently has a buy rating and $36.80 price target on its shares. This implies potential upside of over 50% for investors over the next 12 months. It said:

LOV reported a strong underlying 1H26 result with EBIT up 20.4%, ~6% ahead of our expectations, driven by store network growth and strong gross margins. During the period, the pace of store rollout continued with a net of 64 new stores in the period, bringing the total count to 1,095. We have increased our EBIT by 3%/1% respectively in FY26/27, driven by higher sales and gross margin offset by higher costs and D&A. We see the pull back in share price as a buying opportunity at ~23x FY27 PE. Our valuation lowers to $36.80 (from $40) and we retain our BUY recommendation.

As for income, the broker is forecasting partially franked dividends of 87 cents per share in FY 2026 and then 117 cents per share in FY 2027. This equates to dividend yields of 3.6% and 4.9%, respectively.

The post 1 magnificent ASX dividend share down 45% to buy and hold for decades appeared first on The Motley Fool Australia.

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

Materials led the 11 ASX 200 market sectors by a long shot in the final week of earnings season, rising 7.41%.

As usual, it was the major ASX 200 mining shares that propelled the sector higher.

The highlight was the BHP Group Ltd (ASX: BHP) share price ascending to its highest level in 140 years as a listed company.

BHP shares rose above their previous record of $54.55, set in mid-2021, on Monday; then lifted further to $58.29 on Thursday.

BHP also took back its title as the market’s largest company from Commonwealth Bank of Australia (ASX: CBA) on Friday.

Meantime, the S&P/ASX 200 Index (ASX: XJO) rose 1.29% to finish the week at a record high of 9,198.6 points.

Six of the sectors finished the week in the green.

Let’s review.

ASX materials sector back in the saddle

The Rio Tinto Ltd (ASX: RIO) share price lifted 2.47% to finish the week at $167.33.

The Fortescue Ltd (ASX: FMG) share price rose 5.49% to $21.14 after the miner revealed its 1H FY26 results on Wednesday.

Mineral Resources Ltd (ASX: MIN) shares rose 19% to $60.98.

The ASX 200 mining share is riding a new wave of momentum after reporting record EBITDA of $1.2 billion for 1H FY26, up 286%.

The South32 Ltd (ASX: S32) share price climbed 4.78% to $4.60.

Among the ASX 200 gold mining shares, Northern Star Resources Ltd (ASX: NST) rose 6.88% to close at $30.28 on Friday.

The Newmont Corporation CDI (ASX: NEM) share price increased 5.73% to $177.20.

Evolution Mining Ltd (ASX: EVN) shares rose 10.17% to finish the week at $16.58.

The Evolution share price reached a record $16.99 in intraday trading on Friday.

ASX 200 copper pure-play Sandfire Resources Ltd (ASX: SFR) rose 7.17% to $20.19 on Friday.

Capstone Copper Corp CDI (ASX: CSC) shares finished 4.48% higher at $14.70.

ASX 200 lithium mining share PLS Group Ltd (ASX: PLS) soared 24.16% to close the week at $5.19.

PLS Group shares are also on an upward trajectory after the miner revealed a 241% EBITDA surge in 1H FY26.

The Liontown Ltd (ASX: LTR) share price rose 5.25% to $1.71 on no price-sensitive news last week.

Among ASX 200 ASX rare earths shares, Lynas Rare Earths Ltd (ASX: LYC) ripped 21.05% higher to $18.98.

Last week, Lynas Rare Earths reported a net profit of $80.2 million for 1H FY26, up from $5.9 million in 1H FY25.

Scores of ASX 200 shares have ex-dividend dates next week. Check them out here.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sector	Change last week
Materials (ASX: XMJ)	7.41%
Consumer Staples (ASX: XSJ)	4.99%
Information Technology (ASX: XIJ)	2.3%
Communication (ASX: XTJ)	1.62%
Industrials (ASX: XNJ)	0.73%
Energy (ASX: XEJ)	0.3%
Utilities (ASX: XUJ)	(1.1%)
Financials (ASX: XFJ)	(1.23%)
Healthcare (ASX: XHJ)	(1.46%)
A-REIT (ASX: XPJ)	(1.81%)
Consumer Discretionary (ASX: XDJ)	(3.32%)

The post ASX 200 materials sector leads as earnings season ends with a record high appeared first on The Motley Fool Australia.

More reading

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• Here are the top 10 ASX 200 shares today
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Motley Fool contributor Bronwyn Allen has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. 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.

The Australian share market has traditionally delivered a return in the region of 10% per annum.

While that is a great return, there are ASX 200 shares out there with the potential to outperform this.

For example, the two buy-rated ASX 200 shares listed below have been tipped to rise by more than 20% over the next 12 months by brokers.

Here’s what they are saying about them:

NextDC Ltd (ASX: NXT)

The team at Morgans remains very bullish on this data centre operator following the release of its half-year results last month.

In response to the results, the broker has retained its buy rating with an improved price target of $20.50. Based on its current share price of $13.88, this implies potential upside of almost 50% for investors between now and this time next year.

Morgans highlights that the company is experiencing incredible demand for capacity in its data centres. So much so, it believes that it is destined to deliver EBITDA of $700 million in FY 2029 even if it didn’t win another contract before then. As a comparison, for the first half of FY 2026, NextDC reported EBITDA of $115.3 million, which annualises to approximately $230 million.

Commenting on the ASX 200 share, the broker said:

NXT sold more MWs in the month of December 2025 than in the preceding 36 months combined. It was a record sales period for enterprise and hyperscale. The 416MW now contracted underpins FY29 underlying EBITDA of >$700m (without new contract wins) and sees NXT trading on an undemanding ~22x EV/Contracted EBITDA, with upside potential. BUY retained and target price lifted to $20.50 from $19.00 following our upgrades.

Elders Ltd (ASX: ELD)

Bell Potter continues to believe that the market is undervaluing this ASX 200 share.

Last week, the broker retained its buy rating on the agribusiness company’s shares with a trimmed price target of $9.00. Based on its current share price of $7.26, this suggests that upside of approximately 25% is possible between now and this time next year.

It also expects a generous 5.4% dividend yield over the period, lifting the total potential return to approximately 30%.

Commenting on its buy recommendation, Bell Potter said:

Our Buy rating is unchanged. We see encouraging signs for FY26e, with livestock turnoff values exhibiting double digit YoY growth through 1H26TD, mitigated in part by dryer conditions through most of the summer cropping window and an easing in input price tailwinds. A more normal selling pattern in FY26e, delivery on SYSMOD and backward integration initiatives, and consolidation of Delta are expected to drive high double-digit EPS growth in FY26-27e. This view does not look reflected in the current share price, with ELD trading at 13.3x FY26e EPS.

The post These ASX 200 shares could rise 25% to 50% appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor James Mickleboro has positions in Nextdc. 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 Elders. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) had a very strong month in February and raced notably higher. The benchmark index rose 3.7% during the period to end at 9,198.6 points.

Not all ASX 200 shares climbed with the market. For example, the four named below fell 20% or more during the month. Here’s why:

Austal Ltd (ASX: ASB)

The Austal share price was out of form and sank 26% in February. This was driven by the release of a disappointing earnings guidance update from the ship builder. Austal advised that it previously overstated its potential earnings for the year after accidentally including incentives that had already been recognised in Austal USA’s forecast. This meant there was a US$17.1 million overstatement included in its FY 2026 EBIT guidance. In light of this, Austal downgraded its EBIT guidance for FY 2026 to approximately A$110 million from A$135 million previously.

CSL Ltd (ASX: CSL)

The CSL share price was sold off and crashed almost 20%. This was driven by a combination of a soft half-year result from the biotech giant and news that its CEO, Dr Paul McKenzie, resigned out of the blue a day earlier. CSL’s chair, Dr Brian McNamee AO, said: “Paul and the Board have determined that now is the right time for new leadership to continue to drive CSL’s strategic transformation and performance.” As for its results, CSL posted underlying NPATA of US$1.9 billion, which was down 7% on the prior corresponding period and short of expectations. However, it did reaffirm its guidance for FY 2026.

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price tumbled 29% in February. A good portion of this came after the health imaging technology company released its half-year results. Pro Medicus reported a 28.4% increase in revenue to $124.8 million and a 29.7% lift in underlying profit before tax to a record of $90.7 million. This was softer than some were expecting. Pro Medicus’ CEO, Dr Sam Hupert, said: “Our profits continue to grow strongly even though our biggest implementation during the period in Trinity Cohort 1 went live towards the end of October so had limited impact on the half.” In addition, concerns over AI disruption weighed heavily on software stocks last month.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price was a poor performer and sank 32% last month. This followed the release of the online furniture retailer’s half-year results. The company reported a 19.8% increase in revenue to $375.9 million and a more modest 13% lift in EBITDA to $14.9 million. This ultimately led to Temple & Webster recording a net profit that was over 30% lower than consensus estimates.

The post These ASX 200 shares sank 20% or more in February appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor James Mickleboro has positions in CSL, Pro Medicus, and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended CSL, Pro Medicus, and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If I were 25 and had $10,000 ready to invest in ASX shares today, I wouldn’t be chasing dividends.

I wouldn’t be trying to time the market either.

At that age, your biggest advantage isn’t stock-picking skill. It’s time. Decades of compounding can turn sensible decisions into serious wealth. So the ASX share portfolio I’d build would focus on growth, resilience, and long-term structural tailwinds.

Here’s how I’d think about it.

Give your ASX share portfolio a broad market core

Even at 25, I wouldn’t go all-in on individual stocks.

I’d want a solid foundation that gives exposure to the Australian market. For that, I’d use the Betashares Australian Quality ETF (ASX: AQLT).

This exchange-traded fund (ETF) provides instant diversification across many of Australia’s highest-quality companies. It reduces single-stock risk and ensures I’m participating in overall economic growth.

Allocation: $4,000

That gives the portfolio a stable core while leaving room to lean into higher-growth opportunities.

Add global exposure

Australia is a great market, but it’s small on a global scale.

At 25, I’d want exposure to the US and other developed markets, especially in sectors we lack locally, such as global tech and advanced healthcare.

For that, I’d add the Vanguard MSCI Index International Shares ETF (ASX: VGS).

This ETF provides exposure to over 1,000 international companies, spreading risk across regions and industries.

Allocation: $3,000

Now we have a diversified base across Australia and the world.

Add a high-quality ASX growth stock

With 40+ years until retirement, I’d be comfortable allocating part of the portfolio to a high-quality growth business.

One I like for a young investor is ResMed Inc (ASX: RMD).

ResMed operates in sleep and respiratory health, with long-term structural drivers such as ageing populations and rising awareness of sleep apnoea. It generates strong cash flow, reinvests heavily in innovation, and benefits from a connected digital ecosystem.

This is the kind of company I’d be comfortable holding for decades.

Allocation: $1,500

Add a scalable Australian compounder

I’d also want exposure to a domestic business with strong competitive advantages and a long growth runway.

One example is Hub24 Ltd (ASX: HUB).

Hub24 continues to grow funds under administration as advisers migrate to modern platforms. With structural tailwinds from the shift to professional financial advice and superannuation growth, I think it has long-term compounding potential.

At 25, I can tolerate volatility if the long-term story remains intact.

Allocation: $1,500

What this portfolio looks like

• $4,000 in Australian market ETF
• $3,000 in global market ETF
• $1,500 in a global healthcare growth leader
• $1,500 in an Australian platform compounder

It’s diversified. It has global exposure. It leans into growth. And it keeps things simple.

Foolish Takeaway

You don’t need perfect stock picks. You need time, patience, discipline, and exposure to growing businesses.

If I were starting at 25 today, this is the mix I’d feel comfortable building around. It gives me market exposure, global reach, and long-term growth potential.

From there, I’d focus less on daily price moves and more on steadily building the portfolio. Because at 25, the greatest asset isn’t cash. It’s time.

The post The $10,000 ASX share portfolio I’d build for a 25-year-old today appeared first on The Motley Fool Australia.

More reading

• 3 ASX ETFs for a stress-free start to investing
• 2 incredible ASX share investments I’d buy to build long-term wealth
• How to make $25,000 of passive income a year
• The lazy investor’s guide to ASX ETFs
• If I had to build an ASX share portfolio from scratch today, here’s how I’d do it

Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Hub24 and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Want to start investing without constantly checking share prices or second-guessing every earnings update? Broad-market ASX ETFs can take the pressure off.

With one trade, you get exposure to hundreds – even thousands – of companies, spreading risk and reducing the need to pick individual winners.

Here are 3 ASX ETFs that can offer a genuinely stress-free start to investing.

Betashares Australia 200 ETF (ASX: A200)

This ASX ETF is a straightforward way to own Australia’s 200 largest listed companies. Blue chips such as Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) and CSL Ltd (ASX: CSL) dominate its portfolio.

In one trade, you’re effectively buying a slice of the Australian economy. It spans from banks and miners to healthcare leaders and retailers. A200 ETF is known for its ultra-low management fee, which helps maximise long-term compounding.

While banking and mining heavyweights dominate the Australian market, this ETF provides broad, diversified exposure. All without the stress of choosing individual blue chips.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

This fund opens the door to developed markets worldwide. This ASX ETF holds thousands of companies across the United States, Europe and parts of Asia.

Among its largest holdings are global giants such as Apple Inc (NASDAQ: AAPL), Amazon.com Inc (NASDAQ: AMZN) and NVIDIA Corp (NASDAQ: NVDA). That exposure adds powerful technology and innovation leaders that are underrepresented on the ASX.

By spreading your money across multiple economies and industries, VGS ETF can help smooth returns over time. However, currency movements may influence performance in the short term.

iShares Core S&P/ASX 200 ETF (ASX: IOZ)

This ASX ETF is rounding out the trio. Like A200, IOZ ETF focuses on Australia’s largest 200 companies, tracking the S&P/ASX 200 Index (ASX: XJO). Its top holdings closely mirror the leaders of the local share market, including retail giant Wesfarmers Limited (ASX: WES) and Macquarie Group Ltd (ASX: MQG), alongside the major banks and miners.

This ASX fund offers strong liquidity and exposure to the companies that drive much of the ASX’s overall performance.

Foolish Takeaway

The beauty of these ASX ETFs is their simplicity. You can choose one as a starting point or combine Australian exposure through A200 or IOZ with global diversification via VGS.

Instead of chasing hot tips, you own broad sections of the market and let time and compounding do the heavy lifting.

For investors who want a calm, disciplined entry into the share market, that kind of structure can make all the difference.

The post 3 ASX ETFs for a stress-free start to investing appeared first on The Motley Fool Australia.

More reading

• The $10,000 ASX share portfolio I’d build for a 25-year-old today
• These ASX 200 shares jumped 15% or more in February
• 2 incredible ASX share investments I’d buy to build long-term wealth
• The one question I always ask before buying an ASX share
• Why Nvidia’s insights suggest ASX tech shares are undervalued

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 Amazon, Apple, CSL, Macquarie Group, Nvidia, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Amazon, Apple, BHP Group, CSL, Nvidia, Vanguard Msci Index International Shares ETF, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.