Author: openjargon

WiseTech Global Ltd (ASX: WTC) shares are down more than 50% over the past 12 months. On the surface, that kind of move suggests something is seriously broken. But when I look through the reasons behind the sell-off and compare them to what the business is actually doing today, I come to a very different conclusion.

In my view, the market has become too focused on short-term disruption and sentiment, and not focused enough on WiseTech’s long-term earnings power and strategic position in global logistics.

What actually drove the sell-off

The share price decline didn’t happen for just one reason. It was a combination of factors landing at the same time.

Growth in WiseTech’s core CargoWise business slowed after years of very strong expansion. That alone was enough to trigger concern, given the premium valuation the stock previously enjoyed. On top of that, there was management and board upheaval, governance noise, and highly publicised issues involving the founder, which damaged confidence even further.

At the same time, WiseTech was integrating a large acquisition and changing its business model, adding complexity just as investors were becoming less tolerant of execution risk across the tech sector more broadly. The result was a sharp reset in expectations, and the share price reflected that almost immediately.

All of that explains why the stock fell. It doesn’t automatically explain why it should stay down here.

The core business remains very strong

What I think gets lost in the discussion is just how entrenched WiseTech’s core platform really is.

CargoWise is not optional software. It is mission-critical infrastructure for freight forwarders and logistics providers operating across borders. Once embedded, it becomes deeply integrated into workflows, compliance processes, and customer operations. Switching away is expensive, risky, and highly disruptive.

Recent company updates continue to highlight strong customer retention, ongoing product development, and expanding functionality across the platform. WiseTech is still investing heavily in automation, compliance, and end-to-end logistics solutions, which only increases the value of CargoWise to existing customers over time.

That kind of stickiness is exactly what underpins long-term recurring revenue.

Execution is improving, not deteriorating

Another reason I think the market is wrong on WiseTech shares is that it is still pricing them as if execution risk is getting worse. Based on recent announcements and updates, I think the opposite is happening.

Management has been clear about refocusing on operational discipline, simplifying the commercial model, and improving delivery. Product launches are continuing, and the integration of prior acquisitions is progressing, albeit more quietly than during the growth-at-all-costs phase.

The valuation reset changes the risk-reward

WiseTech was never a cheap ASX share at its peak. It was priced for near-flawless execution and sustained high growth. That is no longer the case.

After a 50% plus decline, expectations are far lower and the risk-reward is more favourable. The valuation now reflects scepticism around growth, governance, and integration. For long-term investors, that matters. A lot of bad news is already priced in.

If WiseTech simply delivers steady growth, improves execution, and avoids further major disruptions, the upside from here could be meaningful. It doesn’t need to return to peak optimism for shareholders to do well.

Foolish takeaway

I don’t think WiseTech shares are risk-free. They aren’t. But I do think the market has gone too far in punishing the stock for issues that are increasingly behind it rather than ahead of it.

The core business remains dominant, customer stickiness is high, execution is stabilising, and expectations are far lower than they were a year ago. For me, that combination suggests the market is being overly pessimistic, and that WiseTech shares may represent a genuine long-term buying opportunity for patient investors willing to look beyond the recent noise.

The post Why I think the market is wrong about WiseTech shares appeared first on The Motley Fool Australia.

More reading

• These were the 10 most traded Australian shares last week
• 2 unloved ASX 200 shares I’m tipping to beat the market
• Down 50% from recent highs: Is it time to buy these ASX stocks?
• Why buy and hold investing with ASX shares could make you rich
• Why these brokers are very bullish on the WiseTech share price

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

Yesterday, the Reserve Bank of Australia (RBA) announced an interest rate hike. The official cash rate was lifted by 25 basis points to 3.85%.

This was largely in response to persistently high inflation. 

This RBA decision impacts many aspects of the Australian economy. 

When a decision like this is made, it’s prudent for investors to look at where opportunity may lie. 

It’s useful to think about what types of ETFs may benefit or be more resilient in that environment. 

Rate hikes can pressure some sectors (like high-growth tech or bonds) while supporting banks, commodities, and floating-rate assets.

Here are three ASX ETFs that may be poised to benefit from increased interest rates. 

BetaShares S&P/ASX 200 Financials Sector ETF (ASX: QFN)

The case for this ASX ETF is pretty straightforward. 

When the RBA raises the cash rate, financial companies – especially banks – often see improved profitability. 

That’s because banks can typically pass higher rates onto borrowers faster than they raise deposit costs, at least initially, which can widen net interest margins (NIM) and boost earnings. 

This fund has strong exposure to this sector. 

It includes a portfolio of the largest ASX-listed companies in the financial sector. 

This includes the ‘Big 4’ banks and insurance companies, while excluding Real Estate Investment Trusts.

In fact, more than 70% of the portfolio is comprised of Australia’s largest four banks. 

SPDR S&P/ASX 200 Resources Fund (ASX: OZR)

During rate rises, investors often rotate toward sectors tied to commodities (materials, energy, gold) which can outperform as inflationary pressures build and commodity prices strengthen.

This ASX ETF provides exposure to Australia’s resource sector (miners, energy). 

These stocks have historically reacted well when global demand and commodity prices are strong.

This fund aims to track the returns of the S&P/ASX 200 Resources Index.

At the time of writing, it is made up of 51 holdings, with its largest exposure being to:

• BHP Group Ltd (ASX: BHP) 35.16%
• Rio Tinto Ltd (ASX: RIO) 7.80%
• Woodside Energy Group Ltd (ASX: WDS) 6.64%

BetaShares Global Banks ETF – Currency Hedged (ASX: BNKS)

Australia isn’t the only country that operates with a central bank cash rate target. 

As central banks tighten policy, bank profitability in major economies like the US and Europe often strengthens, which directly supports the earnings of the banks held in BNKS.

For investors who anticipate global economies may also increase rates this year, this ASX ETF comprises the largest global banks (ex-Australia), hedged into Australian dollars.

This also provides international diversification, so an investor would not be relying solely on Australian rate decisions.

The post 3 ASX ETFs to target following the RBA interest rate hike appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 10 most traded ASX shares among 1 million Aussie investors last year
• Oil pulls back as markets look to the next catalyst. Here’s what to watch
• Buying ASX energy shares? Here’s how Santos and Woodside shares stacked up in January
• These were the 10 most traded Australian shares last week

Motley Fool contributor Aaron Bell 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.

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) returned to form and charged higher. The benchmark index rose 0.9% to 8,857.1 points.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 to fall

The Australian share market looks set to fall on Wednesday after a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 58 points or 0.65% lower this morning. In late trade in the United States, the Dow Jones is down 0.8%, the S&P 500 is down 1.35% and the Nasdaq is 2.15% lower.

Oil prices rise

ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session on Wednesday after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.9% to US$63.31 a barrel and the Brent crude oil price is up 1.7% to US$67.42 a barrel. This was driven by a sharp fall in oil inventories.

Rio Tinto shares on watch

Rio Tinto Ltd (ASX: RIO) shares will be on watch on Wednesday. This is because the deadline for the potential Glencore (LSE: GLEN) takeover is rapidly approaching. Rio Tinto has until tomorrow to make an offer, otherwise LSE rules state that it cannot make another play for Glencore for another six months.

Gold price rebounds

ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good session on Wednesday after the gold price rebounded overnight. According to CNBC, the gold futures price is up 6.65% to US$4,961.4 an ounce. Traders appear to believe the precious metal was oversold in recent sessions.

Pinnacle results

Pinnacle Investment Management Group Ltd (ASX: PNI) shares will be on watch on Wednesday after the investment company released its half-year results. The company reported an 11% decline in net profit after tax to $67.3 million. In light of this profit decline, Pinnacle was forced to cut its interim dividend by 12% to 29 cents per share. This weaker result reflects lower performance fees from its affiliates.

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

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• 3 ASX ETFs to target following the RBA interest rate hike
• This ASX 200 defensive stock just hit a multi-year low. Buy the dip or stay away?
• Pinnacle Investment Management profit dips as revenue climbs, dividend steady
• 3 ASX 200 momentum stocks to buy right now
• The $100,000 superannuation mistake many Australians make in their 40s

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

Shares in Cleanaway Waste Management Ltd (ASX: CWY) have slipped to their lowest level in more than 2 years.

On Wednesday, the Cleanaway share price fell 2.03% to $2.41, after touching an intraday low of $2.38. That marks the lowest closing price for the stock since early November 2023 and extends its recent slide to around 7% over the past month.

The move comes despite Cleanaway operating in a traditionally defensive sector, where earnings are usually more resilient during periods of economic uncertainty.

What does Cleanaway actually do

Cleanaway is Australia’s largest waste management and environmental services provider. The company employs more than 10,000 people and operates across over 350 sites in Australia, New Zealand and the Middle East.

Its services include municipal waste collection, recycling, landfill operations, liquid waste treatment and industrial services. Because waste still needs to be collected regardless of economic conditions, Cleanaway is typically viewed as a defensive industrial stock.

Why the share price is under pressure

There has been no single negative announcement behind the latest drop. Instead, a combination of smaller factors appears to be weighing on investor sentiment.

Brokers have pointed to softer trading conditions early in FY26, which has tempered near term expectations. As a result, earnings are now expected to skew more heavily toward the second half of the year.

Cleanaway has also underperformed the broader S&P/ASX 200 Index (ASX: XJO) over the past year. That kind of underperformance often pushes investors toward stronger stocks and can reinforce selling pressure.

A look at the share price

The chart shows Cleanaway shares remain in a clear downtrend.

The stock is trading below its long-term moving averages and recently broke below support in the mid $2.40 range. The $2.38 level now becomes an important area to watch. If that level holds, it could signal that selling pressure is easing.

In addition, the relative strength index (RSI) is moving toward levels that often suggest a stock is becoming oversold.

The fundamentals still look steady

Despite the weak share price, Cleanaway’s underlying business remains relatively stable.

Analysts are forecasting modest revenue and earnings growth over the coming years, supported by population growth, infrastructure activity and increasing environmental regulation. The company continues to focus on operational efficiency and cost control.

The dividend yield sits around 3%, which is not huge but has been reasonably consistent. While is not a high growth stock, it does offer predictable cash flows compared with many other industrial businesses.

What brokers think

Broker sentiment remains broadly supportive. Several major brokers currently rate Cleanaway as a ‘buy’ or ‘outperform’, with price targets generally clustered between $3.10 and $3.30.

From current levels, that implies potential upside of roughly 30%, assuming earnings recover as expected.

Some analysts also highlight the strategic value of Cleanaway’s assets, noting that waste management infrastructure is difficult to replicate.

Foolish takeaway

The downtrend may not be over yet, but current prices may appeal to investors seeking exposure to a defensive industrial business with steady demand.

Some patience may be required, though the recent pullback could prove attractive for longer term investors.

The post This ASX 200 defensive stock just hit a multi-year low. Buy the dip or stay away? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Pinnacle Investment Management profit dips as revenue climbs, dividend steady
• 3 ASX 200 momentum stocks to buy right now
• The $100,000 superannuation mistake many Australians make in their 40s
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Aaron Teboneras 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.

CMC Markets has more than one million Australian investors registered on its trading platform, and a new report reveals the 10 ASX shares they traded most over the 2025 calendar year.

CMC Markets noted that ASX shares were traded at six times the rate of US stocks.

The broker said this indicated a strong home bias for investors who were focused on individual stocks.

Fraser Allan, Head of Premium Client Management Australia/New Zealand, said clients demonstrated “resilience and
discipline” despite volatility in the market last year.

Allan noted that many investors used the tariff-inspired rout in April to buy the dip — a trend seen by other platform providers, too.

He commented:

President Trump’s April tariff announcement was one such pivotal moment, where clients acted with conviction rather than
hesitation.

Buy/sell ratios indicate investor confidence

The data shows the percentage of trades that were buy orders and sell orders.

This provides a unique insight into how investors were viewing some ASX shares.

For example, CSL Ltd (ASX: CSL) had a clear buying skew despite the share price plummeting after the company’s FY25 report in August.

The broker said:

The strong buy skew in CSL stood out as a clear example of buying into weakness, with clients adding exposure despite a significant share price decline over the year.

In the case of Commonwealth Bank of Australia (ASX: CBA), the buy/sell ratio was much tighter at 56% to 44%, respectively.

The CBA share price climbed to a peak of $192 in late June 2025, ending a remarkable run that had begun in November 2023.

CBA shares then commenced a steep decline, finishing the year only 4.8% up overall.

CMC Markets said:

Trading activity in Commonwealth Bank showed more two-way participation than other top traded Australian shares, with only 56% of orders on the buy side.

This could reflect a degree of polarisation in investor perspectives around company-specific factors such as valuation during 2025.

10 most traded ASX shares of 2025

Here are the 10 most traded ASX shares among the more than one million customers registered on CMC Markets’ trading platform.

Rank	Top ASX shares by trading volume	Percentage of buy orders
1	BHP Group Ltd (ASX: BHP)	70%
2	CSL Ltd (ASX: CSL)	84%
3	Woodside Energy Group Ltd (ASX: WDS)	71%
4	Fortescue Ltd (ASX: FMG)	68%
5	DroneShield Ltd (ASX: DRO)	62%
6	PLS Group Ltd (ASX: PLS)	59%
7	ANZ Group Holdings Ltd (ASX: ANZ)	56%
8	Commonwealth Bank of Australia (ASX: CBA)	56%
9	Woolworths Group Ltd (ASX: WOW)	76%
10	Mineral Resources Ltd (ASX: MIN)	60%

Source: CMC Markets

The post 10 most traded ASX shares among 1 million Aussie investors last year appeared first on The Motley Fool Australia.

More reading

• 3 ASX ETFs to target following the RBA interest rate hike
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• Are Graincorp and PLS shares buys, holds, or sells?

Motley Fool contributor Bronwyn Allen has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and DroneShield. The Motley Fool Australia has positions in and has recommended Woolworths Group. The Motley Fool Australia has recommended BHP Group and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

In the past few months, ASX Lithium shares have gone through the roof as optimism for electric vehicles and energy storage demand reignites after a long slump.

Two names investors love to debate are PLS Group Ltd (ASX: PLS) and Liontown Resources Ltd (ASX: LTR). They both posted stellar gains in the past 6 months that dwarf the broader market, surging 158% and 113% respectively

The question now is: which of these two ASX lithium shares should you be eyeing as a buy?

PLS Group Ltd (ASX: PLS)

This $14 billion ASX lithium share is the big-league player. The lithium miner formerly known as Pilbara Minerals, first attracted serious global investor attention when lithium prices were peaking.

Its flagship Pilgangoora operation in Western Australia is among the largest spodumene producers in the world. The ASX lithium share has been aggressively pushing downstream through partnerships and processing ventures that give it a broader slice of the lithium value chain.

That scale is a key strength. When lithium prices and demand are strong, the miner converts that into hefty cash flow and hefty profits. The company’s balance sheet, export contracts and strategic partnerships also lend it a degree of resilience.

But there’s a flip side. PLS Group’s size makes it more sensitive to the global spodumene price cycle, and in weaker markets its earnings have taken hits. Recent history shows periods where revenue plunged alongside commodity prices.

Now some analysts argue the leading ASX lithium stock trades on a premium that leaves limited room for near-term upside. Despite a stronger than expected second-quarter update, Morgans sees the share as a hold.

The broker has set a 12-month price target of $4.62, an upside of nearly 5%. 

Liontown Resources Ltd (ASX: LTR)

Liontown feels like the scrappier, growth-oriented sibling. Smaller than PLS but no less ambitious, Liontown’s Kathleen Valley project has moved from open pit into deeper underground operations, and the company is now securing offtake deals that lock in future revenue flows.

The price of the ASX lithium share has exploded as these milestones have been hit and investors price in future production. The entirely owned asset base gives Liontown a clearer line of sight on its economics. Some brokers also see better value as the stock hasn’t yet commanded the same premium multiples as PLS.

The company’s execution risk is higher. The transitioning from development into sustained production is tough, cash burn can be heavy, and the balance sheet must be managed carefully. However, the potential returns on success are correspondingly greater.

Market tweaks like amendments to supply deals with big automakers show Liontown is fighting smart to capture market share. The investor caution is that lithium market cycles still govern all outcomes. If prices languish or new supply outpaces demand, Liontown could languish.

Bell Potter has retained its buy rating on this ASX lithium stock with a trimmed price target of $2.42. This points to a 32% upside, compared to the current share price of $1.83. 

Foolish Takeaway

If you want scale and an established production profile, PLS Group is the clear blue-chip. If you’re chasing higher upside and can tolerate execution risk, Liontown offers greater growth optionality.

In a choppy lithium cycle, PLS Group brings stability; Liontown brings torque. For investors with a long-term horizon and appetite for volatility, Liontown could look more compelling.

The post Which ASX lithium share is a smarter buy: PLS Group or Liontown? appeared first on The Motley Fool Australia.

More reading

• Are Graincorp and PLS shares buys, holds, or sells?
• These were the 10 most traded Australian shares last week
• Are ASX lithium shares running out of steam?
• The growing case for critical minerals – Expert
• Liontown shares: After a year of outperformance, is it still a buy?

Motley Fool contributor Marc Van Dinther 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.

There has been plenty of analysis in the last 6 months pointing to strong tailwinds for ASX small-cap stocks. 

In fact, ASX small-cap shares outperformed the larger players by almost 2.5 times in 2025. 

It’s important to remember that not every cheap stock is a bargain buy. 

Many will fizzle out and some will even be delisted from the ASX entirely. 

On the flip side, a select few will continue to grow and eventually become mid-cap or even large-cap stocks.

Here are two ASX small caps that have attractive valuations according to experts. 

Strike Energy Ltd (ASX: STX)

Strike Energy is an onshore Perth Basin gas exploration and development company with material discoveries across three advanced projects: 

• Walyering (100% STX)
•  South Erregulla (100% STX)
• West Erregulla (50% STX)

Walyering is currently producing gas, with sales beginning in late 2023. The West Erregulla joint venture with Hancock Prospecting may reach final investment decision in the second half of 2026, targeting production from 2028. STX also plans to develop a peaking power facility at South Erregulla to commercialise its smaller gas reserves.

According to a report from Bell Potter, there is reason for optimism surrounding this ASX small-cap. 

Last week, Strike Energy reported December 2025 quarterly production at Walyering of 1.59 PJe, above expectations, with an average gas price of $7.36/GJ. 

This generated $16.6 million in sales revenue. The South Erregulla 85 MW peaking gas power project is 72% complete and remains on track to begin operations by 1 October 2026. Planning and approvals for the Walyering West-1 well are progressing, with drilling expected to start in early Q2 2026.

Bell Potter said the company is leveraged to the Western Australia energy market where electricity and gas prices are expected to remain supportive. 

The broker currently has a speculative buy recommendation and $0.15 price target. 

That indicates an upside of 50% from current levels. 

Coronado Global Resources Inc (ASX: CRN)

Coronado Global Resources is a leading international producer of high-quality metallurgical coal, an essential element in the production of steel.

It has had a strong start to 2026, rising almost 10% YTD. 

However recent price targets indicate it can keep climbing. 

Its success has been closely linked to the rebound in metallurgical coal prices.

Last month, Bell Potter updated its price target on this ASX small-cap stock to $0.47 (previously $0.33). 

At the time of writing, Coronado Global Resources shares are hovering around $0.40. 

From current levels, Bell Potter’s price target indicates an upside of approximately 17.50%. 

The post 2 ASX small-caps tipped to climb in 2026 appeared first on The Motley Fool Australia.

More reading

• Why is the Coronado share price tanking 9% today
• Up 16% in 2026 already – is this ASX small-cap a buy?
• Investors are buying this ASX coal stock again today. Here’s why
• Coronado shares surge 12% after Monday’s sell-off
• Why 4DMedical, Coronado Global, Metallium, and WiseTech Global shares are falling 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 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.

Telstra Group Ltd (ASX: TLS) shares closed 0.41% lower on Tuesday afternoon, at $4.89 a piece. After the decline, the shares are now sitting up 0.41% for the year-to-date and have jumped 23.48% over the past year.

What about passive income from Telstra shares?

The telecommunications provider is a fantastic defensive stock. Internet access and mobile phone connectivity are no longer a perk but necessary for everyday life. 

That means that Telstra shares tend to perform steadily, regardless of what stage of the economic cycle we’re in. And this is great news for investors who want to hedge against potential volatility elsewhere in the index.

The ASX 200 telco offers a reliable income stream to investors too. In fact, one of the best things about Telstra is that its dividend payout ratio is close to 100% of its earnings. That unlocks a good dividend yield.

Telstra traditionally makes two fully-franked dividend payments to shareholders every year, payable in March and September. For FY25 the company paid investors an annual dividend of 19 cents per share. At the time of writing that translates to a dividend yield of 3.89%.

And it looks like the telco could grow its dividend payout in FY26 too. The consensus expectation among analysts on the CommSec platform is for Telstra to pay a 20-cent dividend for FY26. That would represent a year-on-year increase of 5.25%, or 1 cent per share.

For FY27 the dividend payout is expected to increase again to 21 cents per share. 

That’s a decent passive income.

What do the experts think of the stock?

Analyst sentiment on Telstra shares is relatively divided. 

Telstra shares were thrust into the spotlight in late-2025 after the telco giant hit headlines about concerns around its calling reliability. A Senate inquiry is reportedly examining cases where Triple Zero calls may have failed, including situations linked to older devices and network/handset software interactions. 

It looks like this, alongside an overall contraction of the telco market since around the same time, have softened investor confidence about the outlook of the company and its shares. 

TradingView data shows 7 out of 12 analysts have a hold rating on Telstra shares, with an average target price of $4.98. This is just 1.86% above the current trading price at the time of writing. However, some are more bullish and have tipped the shares to climb another 10.43% to $5.40 in 2026.

The post Are Telstra shares a good buy for passive income? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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.

When I look at exchange-traded funds (ETFs), I’m trying to stack the odds in my favour by owning parts of the market that I think can quietly compound over time, even if headlines move around a lot.

Right now, these are three Australian ETFs I’d feel comfortable putting fresh money into.

VanEck Australian Quality ETF (ASX: AQLT)

The way I think about the VanEck Australian Quality ETF is simple. If I’m going to own Australian shares, I want to own the ones that actually earn their keep.

The AQLT ETF focuses on companies with high returns on equity, relatively low leverage, and more stable earnings profiles. That naturally tilts the portfolio toward businesses that generate real cash and can reinvest it sensibly. You see that reflected in the holdings, with exposure to names like BHP Group Ltd (ASX: BHP), Wesfarmers Ltd (ASX: WES), Telstra Group Ltd (ASX: TLS), the major banks, and Macquarie Group Ltd (ASX: MQG).

What I like about this ETF is that it avoids the temptation to chase whatever is fashionable. Instead, it leans into quality characteristics that tend to matter most over a full market cycle. It also ends up with different sector weightings compared to the S&P/ASX 200 Index (ASX: XJO), which can be useful if you already have exposure to traditional index funds.

For investors who want Australian equities without relying purely on market cap weighting, this feels like a sensible middle ground.

BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)

The BetaShares S&P/ASX Australian Technology ETF is at the other end of the spectrum, and that’s why I like pairing it with something like the AQLT ETF.

This ETF gives you exposure to Australia’s listed technology leaders, including businesses like Xero Ltd (ASX: XRO), WiseTech Global Ltd (ASX: WTC), REA Group Ltd (ASX: REA), Pro Medicus Ltd (ASX: PME), and TechnologyOne Ltd (ASX: TNE).

I don’t expect this part of the market to move in a straight line. Tech never does. But over time, I think Australia’s best technology companies can grow earnings much faster than the broader market, even if sentiment swings around in the short term.

The ATEC ETF also plays a useful portfolio role. Many Australian investors are heavily exposed to banks and resources by default. This ETF helps balance that out with businesses tied to digital adoption, healthcare technology, and online platforms.

VanEck S&P/ASX MidCap ETF (ASX: MVE)

If large caps are the heavyweights and small caps are the lottery tickets, mid-caps often sit in a sweet spot that doesn’t get enough attention.

The VanEck S&P/ASX MidCap ETF tracks the S&P/ASX MidCap 50 Index (ASX: XMD), giving exposure to companies that are already established but still have room to grow. These are businesses that often sit just below the top 20, with proven operations and expanding markets.

The holdings reflect that mix. You get exposure to companies like Pilbara Minerals Ltd (ASX: PLS), Orica Ltd (ASX: ORI), Charter Hall Group (ASX: CHC), REA Group, JB Hi-Fi Ltd (ASX: JBH), and SGH Ltd (ASX: SGH). It’s a broad cross-section of Australian industry, spanning resources, industrials, property, retail, and technology.

What appeals to me here is optionality. Some of these stocks will eventually grow into large-cap leaders. Others may simply compound steadily without ever being headline names. Either way, mid-caps can deliver attractive long-term returns if you’re patient.

Foolish Takeaway

If I were adding to an ETF portfolio today, I’d want a mix of quality, growth, and opportunity beyond the biggest names.

The AQLT ETF gives me exposure to Australia’s strongest businesses. The ATEC ETF adds long-term growth through technology leaders. The MVE ETF captures the potential of mid-sized companies that are still climbing.

Together, they offer diversification by style, sector, and company size, without needing to overcomplicate things. That’s usually a good place to start.

The post The top Australian ETFs I would buy this week appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group, Technology One, Wesfarmers, WiseTech Global, and Xero. 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 Macquarie Group, Telstra Group, WiseTech Global, and Xero. The Motley Fool Australia has recommended BHP Group, Pro Medicus, Technology One, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When thinking about geographic diversity, many investors still instinctively look at where a company is headquartered. But in a globalised market, where a company earns its money is often far more important than where it is domiciled. Here are three ASX stocks to increase your global exposure.

Codan Ltd (ASX: CDA): A global earnings powerhouse

Codan is an Australian technology company with a reputation for durable communications and electronics equipment for the government, corporate, NGO and consumer markets. Its metal detector brand, Minelabs, is widely considered to be the industry standard for both commercial and private prospecting.

It operates in more than 150 countries globally, across North America, Africa, Europe and Asia, offering exposure to diverse markets.

Codan’s share price hit all-time high in late January 2026, off the back of strong growth and revenue results in both its communications and metal detector divisions. It’s metal detector business grew 46% in H1 FY26, largely driven by sales in Africa.

While we may see some of that growth slow if the price of gold continues to drop, its exposure to defence spending and reputation for quality should maintain momentum across its communications division.

In addition, the company has low debt and a disciplined approach, creating a fertile environment for long-term growth. In my opinion, Codan is a solid investment for long-term investors seeking geographic diversity, even at current prices.  

Ramsay Health Care Ltd (ASX: RHC): A turnaround play in a resilient market

While Ramsay has a notable footprint in Australia, it’s significant operations across Europe and the UK give it global revenue streams in the resilient healthcare market.  

Here in Australia, Ramsay is the largest private hospital operator. In the UK, it provides similar services on a smaller scale alongside mental health services via its Elysium Healthcare subsidiary. Ramsay also holds a controlling stake in European-based Ramsay Santé, which delivers healthcare services across France, Sweden, Norway, Denmark and Italy.

In terms of performance, Ramsay is a turnaround play right now. Its share price has fallen around 45% across five years, potentially indicating that investors have lost confidence. That said, it is up circa 9% over the last year, and some analysts have suggested it is undervalued based on its strong fundamentals, margin recovery and Q1 FY2026 revenue growth.

It’s an option worth exploring if you are looking to diversify and want a value play in a market with long-term growth tailwinds.  

Cochlear Ltd (ASX: COH): Local success story with global reach

Cochlear is a primary example of an ASX-listed company with an extensive global footprint. This Australian invention is now a world leader in implantable hearing devices. And although it remains based in Sydney, it earns most of its revenue offshore.

Its most lucrative market is the Americas. This is followed by its Europe, Middle East and Africa and Asia Pacific operations, giving Cochlear diverse global revenue streams and fantastic earnings resilience.

In terms of share price, Cochlear has historically been a solid and dependable performer. In 2025, however, it saw some decline, starting the year at around $300 per share and ending it at around $260. While it continues to perform, investors may be losing patience with its relatively slow growth at such a high valuation.  

If you’re looking for an ASX stock with global revenue streams, Cochlear remains an excellent option. Given its continued success and solid long-term outlook, current share price declines may present an opportunity to buy.  

The post 3 ASX stocks with global revenue to diversify your portfolio 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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• 5 fantastic ASX shares to buy for an SMSF
• How much could I make investing $500 a month in ASX shares?

Motley Fool contributor Melissa Maddison 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 Cochlear. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.