Author: openjargon

The team at Morgans has been busy this week updating its views on three of the biggest names on the Australian share market.

Does it rate them as buys, holds, or sells? Let’s find out what the broker is saying about them:

BHP Group Ltd (ASX: BHP)

Morgans was pleased with BHP’s performance during the fourth quarter, highlighting that its operational performance was better than it was expecting.

However, due to its valuation and concerns that the market is too optimistic on BHP’s copper prospects, Morgans only has a hold rating and $60.20 price target on its shares. It said:

A good end to FY26 for BHP, with an operational result largely in line with consensus and a touch ahead of our estimates in places. Normally a source of volatility, BHP’s coal operations posted decent consensus beats at both BMA and NSWEC. FY27 guidance looks steady versus our existing estimates, although consensus does look high on group copper. Best-in-breed global diversified miner in what remains a healthy upcycle for resources. We maintain our HOLD rating and A$60.20 target price.

Commonwealth Bank of Australia (ASX: CBA)

The broker has been looking at banking giant CBA ahead of its results next month. Unfortunately, it continues to think that its valuation is stretched and has retained its sell rating on CBA shares with a trimmed price target of $117.63. It commented:

We make updates to our forecasts ahead of the FY26 result in August. Net result is 1-2% downgrades to FY27-28F EPS. 12 month target price reduces 1% to $117.63. Sell retained, given stretched valuation metrics remain implied in the share price (c.26x PER, 3.7x PBV, 2.9% cash yield).

Rio Tinto Ltd (ASX: RIO)

Finally, Morgans was also pleased with Rio Tinto’s performance in the last quarter, noting that Pilbara iron ore shipments were stronger than expected and its copper cost guidance has been trimmed.

However, with Rio Tinto shares rising strongly over the past 12 months, the broker has retained its hold rating with a $163.00 price target. It explains:

RIO posted a healthy Q2 where it matters, with Pilbara shipments beating consensus (+2%), while we see the headline Simandou miss (-68% vs consensus) as a net positive: a slower Simandou ramp supports iron ore benchmarks, and each US$10/t on the benchmark is worth ~US$2.5bn of annual EBITDA to RIO’s far larger Pilbara business. The sting in the tail was Kennecott, with a late June converting furnace breach requiring a ~75-day full rebuild, hitting H2 refined copper and gold output (total copper including saleable matte unchanged).

Copper C1 guidance halved to US30-50c/lb, on strong by-prod prices, a material margin tailwind into the H2 result. Trading back close to where we see fair value, RIO remains one of the highest quality global exposures to a sector enjoying a multi-year upcycle (albeit not without its volatility). We maintain our HOLD rating, A$163.00 TP (was A$165.00).

The post Buy, hold, sell: BHP, CBA, and Rio Tinto shares appeared first on The Motley Fool Australia.

More reading

• How to make $50,000 of passive income from ASX shares like CBA
• Does Macquarie rate BHP shares a buy, hold or sell right now?
• 3 top ASX 200 shares I’d buy for a self-managed superannuation fund
• Should you buy Rio Tinto and these ASX shares?
• How much do I need in my superannuation to earn an annual $60,000 passive income?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

Vanguard offers plenty of exchange-traded funds (ETFs), which can make choosing between them harder than it first appears.

I think the best place to start is with what an investor wants the fund to achieve.

The three Vanguard ETFs below could each be strong buys for different reasons.

Vanguard Diversified High Growth Index ETF (ASX: VDHG)

Some investors want broad exposure without having to assemble and maintain a collection of shares or funds.

That is where this Vanguard ETF stands out. The VDHG ETF combines Australian shares, international shares, emerging markets, and a smaller allocation to defensive assets inside one investment. Vanguard also handles the rebalancing, so the portfolio does not gradually drift away from its intended structure.

I think that simplicity can be strong over a long holding period.

Investors can keep adding money without having to decide which country or asset class to allocate to next. They also avoid the temptation to keep changing the portfolio whenever one market becomes popular.

The fund still has a growth-focused structure, so its value can fall during weak share market periods. But for someone looking for an all-in-one investment that can sit at the centre of a long-term strategy, I think this ETF is a strong option.

Vanguard MSCI International Small Companies Index ETF (ASX: VISM)

Many global ETFs are dominated by businesses that investors already know.

The VISM ETF looks further down the market. It gives investors exposure to smaller companies across developed markets outside Australia. These businesses operate across a wide range of industries and can include companies serving local markets, specialist niches, and emerging areas of demand.

I like this approach because the world economy extends far beyond the largest technology companies and consumer brands.

Smaller businesses can have more room to expand from their current size, particularly when they find a strong position in a growing market. A broad ETF spreads the investment across many companies rather than relying on one small-cap idea working out.

The trade-off is greater volatility. Smaller companies can be more sensitive to borrowing costs, economic conditions, and changes in investor confidence.

I would consider the VISM ETF as a long-term addition alongside a broader international ETF, especially for investors whose global exposure is concentrated in the market’s biggest names.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The third ETF is aimed more directly at income.

This Vanguard ETF invests in Australian companies selected for their higher dividend yields. That can appeal to retirees and other investors who want their portfolio to produce regular distributions.

Australian companies also have the potential to attach franking credits to their dividends, which may improve the after-tax outcome for eligible investors.

I think the appeal here goes beyond the headline payout. A well-built income strategy can reduce the need to sell shares whenever cash is required.

Investors should still pay attention to where the income comes from. The Australian market has a strong presence from banks and resources companies, and their dividends can rise or fall with profits and economic conditions.

The VHY ETF could therefore suit investors who want higher income and understand that distributions will not remain identical every year.

Foolish takeaway

I think the strongest ETF decisions begin with giving each fund a clear purpose.

One investor may value the convenience of having an entire portfolio managed inside a single ETF. Another may want to widen global exposure beyond the familiar market leaders, while an income investor may place greater weight on distributions.

These Vanguard ETFs cover each of those goals. The right choice will depend on the rest of the portfolio, the investor’s time horizon, and how much volatility they are prepared to accept. For long-term investors who understand what they are buying, I think these three ETFs could all be strong choices.

The post Why these Vanguard ETFs could be strong buys appeared first on The Motley Fool Australia.

More reading

• Own Vanguard ASX ETFs? It’s dividend payday!
• VAS vs. VHY: Which is the better ASX ETF for retirement?
• I’d buy these 5 ASX dividend investments for retirement income
• How Vanguard’s biggest ASX ETFs performed in FY26
• Why I think these Vanguard ETFs are perfect buy and hold investments

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 recommended Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

July could be a good time to put fresh money to work on the ASX.

If I had $10,000 to invest in ASX 200 shares this month, I would want a mix of global growth, specialist technology, and businesses with long runways.

Here are three shares I would consider buying.

Breville Group Ltd (ASX: BRG)

I would start with Breville. An investment in the appliance company could give investors exposure to a business that has taken ordinary kitchen categories and turned them into premium global products.

Breville is best known for coffee machines, cooking appliances, food preparation products, and other household equipment.

The reason it stands out is that its products are often tied to habits, not just purchases. A coffee machine can become part of the morning routine, while cooking products can sit at the centre of how people prepare food at home.

That gives the brand more depth than a simple appliance label.

Breville is still exposed to consumer spending cycles, and premium products can face pressure when households become cautious. But its global footprint, strong product design, and brand positioning give it a long runway if management keeps executing well.

Hub24 Ltd (ASX: HUB)

Another top ASX 200 share to buy could be Hub24.

The company operates an investment and superannuation platform used by financial advisers to manage client portfolios, reporting, administration, and investment options.

This is not the most obvious growth story on the ASX, but it is an important one. Australia has a large and growing pool of wealth sitting in superannuation and investment accounts. Advisers need better technology to manage that money, and clients increasingly expect clearer reporting, broader choice, and more efficient administration.

Hub24 has been taking market share from older platform providers by offering a more modern service to advisers and wealth professionals.

Competition remains a risk, and platform margins can attract pressure over time. But if the company keeps winning advisers and attracting funds, it could continue benefiting from one of the biggest structural tailwinds in Australian finance.

Pro Medicus Ltd (ASX: PME)

Finally, Pro Medicus could be an ASX 200 share to buy with the funds.

Pro Medicus is one of the ASX’s highest-quality software shares. Its Visage imaging platform is used by hospitals and radiology groups to view, manage, and distribute medical images across large healthcare networks.

The business solves a problem that is becoming more demanding. Medical scans are getting larger, imaging volumes continue to rise, and healthcare providers need systems that can move quickly across complex environments.

That is where Pro Medicus has built its reputation. Its contracts can be large, long term, and difficult to displace once the software is embedded inside hospital workflows.

The main risk is valuation. Pro Medicus often trades on high expectations, which means any disappointment can hit the share price hard.

But as a long-term holding, its mix of healthcare demand, specialist software, and global expansion potential remains compelling.

The post Where to invest $10,000 in ASX 200 shares in July appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Pro Medicus, Worley, and ResMed shares
• Buy, hold, sell: TechnologyOne, Pro Medicus, PLS Group shares
• 10 fantastic ASX shares to buy for FY27
• 9 ASX 200 shares with reiterated buy calls this week
• The superannuation concessional contributions cap just rose to $32,500. Here’s how to make the most of it

Motley Fool contributor James Mickleboro has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Hub24 and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Retirement isn’t won on your last day at work. It’s won in the five years before it.

That final stretch is where small decisions can snowball into six-figure differences in your retirement savings. Get it right, and you’ll likely enter retirement with confidence. Get it wrong, and you could spend decades wishing you’d planned a little better.

Here’s why those last five years matter so much.

Your super is usually at its biggest

For most Australians, their super balance is higher than it’s ever been during the final years before retirement. That’s important because investment returns work in percentages.

A 10% return on a $100,000 balance earns $10,000. The same 10% return on a $700,000 balance adds $70,000.

In other words, your super is finally big enough for compounding to do some serious heavy lifting. Every extra contribution and every positive year in the market can have an outsized impact on your retirement balance.

You’re still adding to the pile

There’s another powerful force working in your favour. If you’re still employed, your employer continues making compulsory super contributions.

Those contributions, combined with investment earnings, mean your nest egg for retirement is still growing.

The moment you retire, that process flips. Employer contributions stop. Instead of adding money, you begin withdrawing it to fund your lifestyle.

Many Australians underestimate just how significant that transition is.

Mistakes become far more expensive

Early in your career, poor investment decisions can often be recovered over decades.

Five years before retirement? Not so much. Taking excessive risks in search of higher returns could leave you exposed to a major market downturn just before you stop working.

On the other hand, becoming too conservative too early could mean missing years of valuable growth. Finding the right balance between protecting your wealth and continuing to grow it becomes increasingly important.

This is when retirement planning becomes real

It’s also time to move beyond simply checking your super balance.

Ask yourself some practical questions. How much income will you actually need for retirement? Will you receive a full or part Age Pension? Should you pay off debt before retiring?

Would a transition-to-retirement strategy help you reduce your working hours while keeping super contributions flowing?

These aren’t decisions you want to leave until your farewell morning tea.

Don’t overlook the emotional side

Many people spend years planning their finances but almost no time planning what retirement will actually look like.

Leaving full-time work is one of life’s biggest transitions. Some people thrive. Others quickly discover they miss the routine, purpose, and social connection that work provided.

That’s why many Australians are choosing a gradual retirement instead of stopping overnight. Working part-time for a few years can ease the financial pressure while making the lifestyle adjustment much smoother.

Foolish takeaway

The final five years before retirement aren’t simply a countdown. They’re an opportunity.

It’s your last chance to boost your super through employer contributions, salary sacrifice, or voluntary contributions while giving compounding one final opportunity to work its magic.

Retirement isn’t determined by one spectacular investment or one lucky year in the market.

More often than not, it’s the decisions you make in those final five years that determine whether you spend retirement worrying about money, or enjoying the freedom you’ve spent decades building toward.

The post Why the 5 years before retirement could make or break your future appeared first on The Motley Fool Australia.

More reading

• Where to invest $10,000 in ASX 200 shares in July
• How to make $50,000 of passive income from ASX shares like CBA
• How much superannuation do I need to retire comfortably at age 64?
• The ASX ETF market is set for a record year – Here are the best performers so far in 2026
• What’s the average Australian superannuation balance at ages 60 and 65?

Commonwealth Bank of Australia (ASX: CBA) has long been one of the first names investors think about when it comes to ASX dividends.

It is large, profitable, widely held, and has a long history of paying fully franked dividends.

But how much would someone need invested in ASX shares like CBA to make $50,000 a year in passive income?

Let’s take a look.

Start with the income target

A $50,000 annual passive income target works out to about $4,165 per month.

That is a sizeable amount of money. It could help cover living costs, mortgage repayments, rent, insurance, holidays, or retirement spending.

The amount needed to generate that income depends on one key number: the dividend yield.

If a portfolio of ASX dividend shares produced an average yield of 3%, an investor would need around $1.67 million to generate $50,000 a year.

At a 4% yield, the required portfolio falls to $1.25 million.

At 5%, it would be $1 million, and at 6%, the portfolio would need to be around $833,000.

That shows how the dividend yield can make a big difference.

Why not just chase the highest yield?

It is tempting to look at those numbers and aim for the highest dividend yield possible.

But that can be a dangerous strategy.

A very high yield can sometimes be a sign that the market expects the dividend to fall. After all, if it were guaranteed, investors would be piling all their money in, driving the share price higher and narrowing the yield on offer.

A share yielding 8% today is not much help if the dividend is cut heavily next year.

That is why shares like CBA often remain popular with income investors. The yield may not always be the highest on the ASX, but investors are also paying for scale, profitability, franking credits, and a long record of returning cash to shareholders.

Building around CBA shares

CBA shares could be part of a passive income portfolio, but they probably should not be the whole portfolio.

Even a high-quality bank is still exposed to the housing market, credit growth, bad debts, interest margins, regulation, and the broader economy.

A better approach could be to combine bank dividends with other types of income shares.

That might include infrastructure shares such as Transurban Group (ASX: TCL), energy infrastructure through APA Group (ASX: APA), supermarkets such as Woolworths Group Ltd (ASX: WOW), or property income through listed real estate investment trusts like HomeCo Daily Needs REIT (ASX: HDN).

This gives the income stream more ways to hold up if one sector has a difficult year.

The real goal

Making $50,000 a year from ASX dividends is possible, but it usually requires a sizeable portfolio and a sensible balance between yield and quality.

A portfolio yielding 4% would need about $1.25 million. A portfolio yielding 5% would need about $1 million.

Those numbers may look large, but they show the value of starting early and letting compounding do more of the work.

For example, investing $1,000 a month into ASX shares and earning an average 10% annual return (not guaranteed but a fair target) would turn into approximately $1.25 million after 25 years.

Shares like CBA can play an important role in that journey, but the best passive income portfolios are usually built on more than one dividend payer.

The post How to make $50,000 of passive income from ASX shares like CBA appeared first on The Motley Fool Australia.

More reading

• How I would build an ASX portfolio with just 3 investments
• 3 top ASX 200 shares I’d buy for a self-managed superannuation fund
• I’d buy 4,068 shares of this ASX stock to aim for $200 a month of passive income
• How much do I need in my superannuation to earn an annual $60,000 passive income?
• Buy, hold, sell: Coles, Woolworths, Wesfarmers shares

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

Are you planning to retire at age 64? If so, do you know if you have enough superannuation to fund the comfortable lifestyle that you want?

After all, at this age, retirement is very possible. At age 64, you’ve already passed the preservation age of 60. You’re also only one year from the average retirement age, and three years from potentially receiving the Age Pension payment.

Let’s break down what a comfortable retirement looks like. Then dive into what it might cost you to retire comfortably at age 64. Then you can figure out if your super is on track.

Here’s what a comfortable retirement looks like

In Australia, retirement is generally split into two categories: a modest retirement and a comfortable one. 

According to the Association of Superannuation Funds of Australia (ASFA), a comfortable retirement is defined as one that enables retirees to maintain a good standard of living well beyond the Age Pension. 

It budgets for expenses including top-tier private health insurance, regular leisure activities and the occasional meal. It allocates funds for home repairs or renovations, and perhaps even an annual holiday.

Meanwhile, a modest retirement is defined as being able to cover expenses just slightly above the full Centrelink Age Pension provisions from age 67. 

How much will it cost me?

In order to retire comfortably at age 67, ASFA estimates that you’ll need to allocate around $55,923 per year if you’re a single Australian living alone. A couple living together will need $78,566 per year.

These figures also assume you’ll receive a part Age Pension. They also assume you own your home in full, and that you’ll be able to create and stick to your financial goal. 

In order to fund this type of comfortable retirement, ASFA calculates that single Australians will need around $630,000 in their superannuation. Meanwhile, couples will need around $730,000.

Obviously, the catch is, if you’re planning to retire three years earlier at age 64, these figures don’t quite work. You’ll need to allocate extra savings to fund those three extra years.

Ok, so how much do I need in my superannuation at age 64 to retire comfortably?

I’ve done the math for you, using ASFA’s figures, to work out what you should aim to have in your superannuation by age 64.

Singles should aim to have closer to $727,000 in their superannuation and couples closer to $1.02 million at age 64.

Remember also, these figures assume you won’t need to pay mortgage or rent bills in retirement. So if you don’t own your home outright, you’ll also need to factor in these costs too.

The post How much superannuation do I need to retire comfortably at age 64? appeared first on The Motley Fool Australia.

More reading

• How to make $50,000 of passive income from ASX shares like CBA
• The ASX ETF market is set for a record year – Here are the best performers so far in 2026
• What’s the average Australian superannuation balance at ages 60 and 65?
• Should you buy, hold, or sell Wesfarmers shares?
• Does Macquarie rate BHP shares a buy, hold or sell right now?

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 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.

Five years can pass surprisingly quickly, but between the ages of 60 and 65 they can completely reshape a person’s retirement position.

At 60, many Australians are still working, receiving employer contributions, and giving their investments more time to grow. By 65, retirement may have already begun, or at least moved from a distant plan to an immediate financial decision.

So, how much superannuation does the average Australian have at these two important ages?

The average superannuation balance at 60

The available superannuation data from Rest Super is reported in five-year age groups rather than for individual birthdays, which means an exact figure for age 60 needs to be estimated from the surrounding averages.

Based on the latest figures, the average Australian woman is likely to have around $285,000 in super at age 60, while the average Australian man may have approximately $365,000.

Those balances are substantial, although they do not necessarily mean someone is ready to retire immediately. A person stopping work at 60 may need to fund seven years before becoming eligible for the Age Pension, placing much greater pressure on their savings than retiring later.

This makes age 60 an important financial checkpoint. There may still be time to make additional contributions, review investment settings, reduce unnecessary fees, and reconsider whether retirement should happen all at once or gradually.

The average super balance at 65

By age 65, the average balance is likely to have grown meaningfully.

Data suggests the average is approximately $361,000 for women and $427,000 for men.

This increase reflects another five years of employer contributions, potential investment returns, and the fact that many Australians earn some of their highest incomes during the final stage of their careers.

How do these balances compare with retirement targets?

The Association of Superannuation Funds of Australia (ASFA) estimates that a homeowner needs around $630,000 at retirement to support a comfortable lifestyle as a single person. A couple needs approximately $730,000 combined.

On that basis, an average single 60-year-old or 65-year-old may remain below the comfortable benchmark, although the eventual Age Pension, home ownership, other savings, and personal spending needs can all change the outcome.

The picture can be considerably better for couples. Two people retiring at 65 with balances close to the averages could have more than $700,000 combined, placing them around the current comfortable retirement target.

This is one reason superannuation balances should probably not be judged in isolation. Housing costs, relationship status, retirement timing, and expected spending can matter just as much as the number shown on an account statement.

Is it enough?

The movement between ages 60 and 65 shows that superannuation can still make meaningful progress late in a working life.

Continuing to work for several more years does more than provide another salary. It allows further contributions, gives investments more time to compound, and reduces the number of years that retirement savings need to support.

The average balance at 60 is approximately $285,000 for women and $365,000 for men, rising to around $361,000 and $427,000, respectively, by age 65.

Those numbers offer a valuable point of comparison, but the more important question is whether your balance can support your own retirement plans. The average can show where other Australians are sitting, but only a personal budget can reveal whether you are genuinely ready to stop working.

The post What’s the average Australian superannuation balance at ages 60 and 65? appeared first on The Motley Fool Australia.

More reading

• How to make $50,000 of passive income from ASX shares like CBA
• How much superannuation do I need to retire comfortably at age 64?
• The ASX ETF market is set for a record year – Here are the best performers so far in 2026
• Should you buy, hold, or sell Wesfarmers shares?
• Does Macquarie rate BHP shares a buy, hold or sell right now?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

A new report from Betashares has provided a snapshot of what is set to be a record-breaking year for ASX ETFs. 

According to the report, the Australian ETF industry closed the financial year at a record $372 billion in funds under management, with $400 billion now firmly in sight. 

Net flows of $30 billion for the half matched the entirety of 2024, while AI-driven tech exposures led performance.

Market insights 

According to the report, global equity markets rallied through the first half of 2026, powered by evidence that AI capital expenditure is starting to convert into profit. 

Microsoft, OpenAI, and Anthropic all reported AI revenue run rates up more than 100% year on year, while Nvidia and the major memory makers, Samsung, SK Hynix, and Micron, were the clearest beneficiaries of the compute build-out. 

Asian semiconductor markets captured this directly, with North Asian chipmakers driving the MSCI Emerging Markets Index to the strongest returns of any major market, even as an Iran-triggered oil spike and a US$1.5 trillion software sell-off tested the rally’s nerve during the half. 

Domestically, the S&P/ASX 200 Index (ASX: XJO) managed just 2.4% over the same six months, the weakest of the major developed markets. 

Three RBA rate hikes in the half pushed inflation and unemployment back into focus, rewarding income and value over growth. 

Materials carried the bulk of the market’s earnings growth, benefiting from elevated iron ore and gold prices and from critical mineral demand driven by the AI rollout. 

The May budget’s proposed removal of the CGT discount added further uncertainty for households already absorbing higher borrowing costs, and the combination has weighed on consumer sentiment through the half. 

Performance – Half Year 2026

The Betashares Australian ETF Review revealed that the half-year performance was led by semiconductors, with AI-related hardware demand driving standout returns over the period. 

South Korea’s technology-heavy market also featured prominently, alongside broader Asian technology exposure, reinforcing a theme of innovation-driven outperformance. 

Hydrogen and clean energy themes made a strong showing, pointing to renewed appetite for energy transition plays. 

Crude oil rounded out the top five, with prices driven sharply higher by the Middle East conflict and resulting disruptions to the Strait of Hormuz, a key global oil transit route.

Top 5 performing funds for the half year to June 2026: 

• Global X Semiconductor ETF (ASX: SEMI) rose almost 102%
• iShares MSCI South Korea ETF (ASX: IKO) climbed 94%
• Global X Hydrogen ETF (ASX: HGEN) rose 70% 
• Betashares Capital – Asia Technology Tigers ETF (ASX: ASIA) increased by 59%
• BetaShares Crude Oil Index ETF – Currency Hedged (Synthetic) (ASX: OOO) rose over 44%

The post The ASX ETF market is set for a record year – Here are the best performers so far in 2026 appeared first on The Motley Fool Australia.

More reading

• Why it’s vital for investors to look to international shares for growth: Expert 
• Own ACDC, FANG, or SEMI ETF? Global X is paying your dividend today!
• 3 ASX ETFs that have returned better than 80% over the past year
• SK Hynix IPOs in the US. Here’s what that means for ASX investors
• 3 ASX ETFs with strong long-term growth potential

Motley Fool contributor Aaron Bell has positions in Betashares Capital – Asia Technology Tigers Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Micron Technology, Microsoft, and Nvidia. The Motley Fool Australia has recommended Microsoft and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Wesfarmers Ltd (ASX: WES) is the kind of ASX share that can be hard to judge.

The business quality is obvious. The price is the harder part.

So, should investors buy, hold, or sell Wesfarmers shares today?

Why selling feels too harsh

I would find it difficult to call Wesfarmers a sell.

This is one of the strongest long-term operators on the ASX, and I think that still counts for a lot.

Bunnings remains one of the best retail businesses in Australia. It has strong customer trust, a dominant market position, and a role in home improvement that is hard for rivals to replicate at scale.

Kmart is also a much better business than it was many years ago. Its value focus has made it highly relevant at a time when households are watching spending more carefully.

I also like that Wesfarmers keeps looking for ways to make the group stronger. Health, data, digital initiatives, OnePass, and other growth options may not transform the business overnight, but they give the company more ways to deepen customer relationships and reinvest over time.

That is the part of Wesfarmers I find most appealing. It is not just a collection of retail brands. It is a management culture that has demonstrated a long-term ability to improve assets, make disciplined decisions, and allocate capital to better opportunities.

Why buying aggressively is harder

The issue is valuation. Wesfarmers shares are trading at around $91.67 at the time of writing, which is close to the upper end of their yearly range of $70.80 to $95.18.

According to CommSec consensus estimates, Wesfarmers is expected to generate earnings per share of $2.55 in FY26 and $2.74 in FY27.

That puts the stock on a price-to-earnings (P/E) ratio of around 36 times FY26 earnings and 33.5 times FY27 earnings.

I can justify a premium for Wesfarmers. I have much more trouble justifying any price.

At this level, investors are paying upfront for a lot of future success. That can work if Bunnings stays strong, Kmart keeps performing, the health division improves, and newer digital initiatives add value.

But the starting point is important for future returns. When a high-quality company is priced this fully, even a good business can deliver more modest shareholder returns if earnings growth is only steady rather than exceptional.

The forecast dividend yield also does not make the valuation look cheap. CommSec estimates dividends per share of $2.16 in FY26 and $2.33 in FY27, implying forward yields of around 2.4% and 2.5%.

That income is attractive enough, but it is not the reason I would own Wesfarmers.

My verdict

My verdict is hold. If I already owned Wesfarmers shares, I would be happy to keep them. The company has too many strengths for me to want to step away just because the valuation looks full.

For new money, I would be more patient. I could understand buying a small amount now for a long-term position, especially for investors who like building into quality companies over time.

But I would prefer to buy more meaningfully during a pullback.

Foolish Takeaway

Wesfarmers remains one of the ASX businesses I would trust to keep improving over the long term.

The company has strong brands, experienced management, and several areas where it can keep reinvesting for growth.

The share price already reflects a lot of that quality. That is why I would hold Wesfarmers shares today. I would keep it high on my long-term watchlist, stay patient, and look for a better chance to buy more when the market offers one.

The post Should you buy, hold, or sell Wesfarmers shares? 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 Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

BHP Group Ltd (ASX: BHP) released its operational review for the past financial year this week, and it’s fair to say reaction from analysts has been muted, with the company guiding to a drop in copper production this year.

Are BHP shares fully priced at the moment?

BHP shares are up slightly more than 50% for the past 12 months, so given that strong result, it begs the question, do they have further to run?

The team at Macquarie have run the ruler over the company and come up with a neutral recommendation on the stock, and a share price target we’ll get to shortly.

First, let’s look at what BHP reported this week.

Solid operational results

The company said in a statement to the ASX that it had delivered record iron ore production over the year to the end of June, up 1% to 264.7 million tonnes.

Copper, however, was 3% lower than the previous year at 1.95 million tonnes.

BHP Chief Executive Officer Brandon Craig said it was a solid result.

He added:

For the second consecutive year, we produced around 2 Mt of copper and delivered record iron ore production, demonstrating the power of a disciplined operating system and world-class assets. We achieved this against a backdrop of stronger realised prices for both copper and iron ore, with copper prices around 35 per cent higher than a year ago. Cost control was particularly strong, with every asset expected to be within unit cost guidance despite headwinds from inflation, higher diesel prices and global supply chain disruptions.

While Mr Craig said the company had several growth projects underway, BHP is actually guiding to lower copper output this year, with a forecast of 1,650,000 to 1,800,000 tonnes of copper.

Iron ore is expected to stay largely flat at 260 to 272 million tonnes.

Copper output has been impacted by a conveyor belt failure at the Carrapateena mine, impacting output at the company’s South Australian operations for up to eight weeks.

Let’s see what the analysts think

The Macquarie team said in their note to clients that much of BHP’s value proposition was built on copper growth, and that South Australia was a key part of that.

They applauded the company’s record iron result however, in what they said had been a tough year.

But Macquarie said with the risk of strikes looming and significant maintenance work scheduled, they expected it to be a “holding year” for the division.

Macquarie has a 12-month price target of $55 on BHP shares compared to $59.14 at the time of writing. They are also predicting the dividend yield to stay steady on 3.4%.

The post Does Macquarie rate BHP shares a buy, hold or sell right now? appeared first on The Motley Fool Australia.

More reading

• How much do I need in my superannuation to earn an annual $60,000 passive income?
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• Why are BHP shares surging 4% today despite a flat copper price?
• Which ASX copper and gold stock could rocket 200%?
• Up almost 50%, is it too late to buy BHP shares?

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended BHP Group and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.