Author: openjargon

Hub24 Ltd (ASX: HUB) shares are edging higher on Thursday, but investors probably won’t be celebrating just yet.

The Hub24 share price is up 0.26% to $70.38 at the time of writing, but that barely makes a dent in the recent losses.

The shares have fallen almost 20% in the past month and around 27% in 2026.

They are now trading only slightly above their 52-week low of $68.70 and more than 42% below the $122.03 high.

So, has the sell-off gone too far?

Why have Hub24 shares fallen so much?

The sell-off looks pretty harsh when you look at Hub24’s latest financial results.

FY26 revenue rose 23% to $501.1 million, while underlying EBITDA climbed 30% to $211.4 million. Underlying net profit after tax (NPAT) increased 40% to $137.3 million.

Platform funds under administration (FUA) reached $139.5 billion, up 24%, while total FUA grew to $164.3 billion.

Hub24’s platform market share increased from 8.6% to 9.9%, while active advisers rose 11% to 5,649.

While those were solid numbers, what seems to be worrying investors more is the slowdown in inflows heading into FY27.

The company said outflows from discretionary IDPS accounts were still high in August, although superannuation flows were holding up better.

If that weakness hangs around, Hub24 may find it harder to keep FUA growing at the same pace.

What are the brokers saying?

Brokers are still much more positive on Hub24 shares after the recent drop.

According to TipRanks, the average 12-month price target from 13 ranked analysts is $97.18. From the current price of $70.38, that points to potential upside of around 38%.

Most of the targets are sitting in the $90s. Citi has a target of $93.50, Jefferies is at $93.75, Morgans is at $92, RBC Capital has $91, and JPMorgan is at $98.

Jarden has the highest target shown at $101, while Bell Potter is a little more cautious with a $90 target and a hold rating.

Why $70 has my attention

After falling almost 20% in a month, Hub24 shares are starting to look a lot more interesting around these levels.

The stock is still trading on a price-to-earnings (P/E) ratio of around 48, so I wouldn’t call it cheap. And if inflows stay weak, that could put more pressure on the valuation.

Nonetheless, Hub24 is still growing earnings, and winning market share.

Management is also targeting Platform FUA of $186 billion to $200 billion by FY28, excluding PARS.

At around $70, I think the risk-reward looks much better than it did above $120.

The next big update comes on 20 October, when Hub24 releases its first-quarter results.

The post Hub24 shares have fallen 27% in 2026. Could they really rebound 38%? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Monday

JPMorgan Chase is an advertising partner of Motley Fool Money. 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 positions in and has recommended Hub24, JPMorgan Chase, and Jefferies Financial Group. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

One small-cap ASX stock is getting plenty of attention on Thursday.

New Zealand King Salmon Investments Ltd (ASX: NZK) shares are up 13.51% to 21 cents at the time of writing.

This comes after the salmon producer released an update before the market opened.

The move has pushed shares close to their 22-cent 52-week high while lifting the company’s market capitalisation to $113 million.

So, what did New Zealand King Salmon tell investors this morning?

Let’s take a closer look.

What’s behind today’s jump?

According to the release, New Zealand King Salmon has lifted its full-year earnings expectations.

The company now expects FY26 pro-forma EBITDA of between NZ$36 million and NZ$39 million.

This is ahead of its previous guidance range of NZ$30 million to NZ$34 million.

Pro-forma EBIT guidance has also moved higher to between NZ$27 million and NZ$30 million, up from NZ$21 million to NZ$25 million.

However, there was another part of the update that caught my attention.

Harvest guidance hasn’t changed, with New Zealand King Salmon still expecting between 5,950 and 6,050 metric tonnes in FY26.

Management said fish performance has been better than expected, while mortality has continued to come in below previous assumptions.

Carrington said better fish performance was flowing through to earnings, but there was still more work to do.

A much better year so far

The upgrade adds to a big turnaround that has already been underway in FY26.

In its half-year result, New Zealand King Salmon reported net profit of NZ$13.8 million, compared with a NZ$20.8 million loss in the previous corresponding period.

That represents a NZ$34.6 million swing from loss to profit.

Pro-forma EBITDA also improved to NZ$17.2 million from NZ$5.7 million.

Lately, the business has been showing better earnings, and management expects that improvement to continue through the rest of FY26.

What should investors watch next?

Today’s upgrade is good news, but investors will get a better look at next year in November.

New Zealand King Salmon is aiming to lift harvest volumes to between 7,200 and 7,600 tonnes in FY27, before targeting 8,500 to 9,100 tonnes in FY28.

The catch is that costs are moving higher as well.

Management said higher feed prices and wellboat expenses are starting to come through this year, with the full impact expected in FY27.

Management plans to provide FY27 guidance alongside its FY26 results in November.

If volumes keep growing while fish performance remains strong, the business could still have room to improve despite those extra costs.

The post Guess which ASX stock is rocketing 14% today? appeared first on The Motley Fool Australia.

More reading

• CSL acknowledges “disappointing” results but aims to do better
• How much superannuation would I want if I planned to retire at 60?
• Hub24 shares have fallen 27% in 2026. Could they really rebound 38%?
• Should I buy Rio Tinto shares for passive income?
• Netwealth Group vs HUB24: Which financial platform is better from an investor’s perspective?

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.

Rio Tinto Ltd (ASX: RIO) shares have long been a popular choice with Australian income investors.

The mining giant has returned substantial amounts of cash to shareholders over the years.

At around $166.25 today, are Rio Tinto shares still worth considering for passive income?

Why miners can work for income investors

Rio Tinto and BHP Group Ltd (ASX: BHP) are regular fixtures in many income portfolios for good reason.

Both companies own large, long-life mining operations that can generate enormous amounts of cash when commodity markets are supportive.

For Rio Tinto, iron ore remains a key part of the business. Its Pilbara operations produce huge volumes and have historically generated substantial profits.

That cash can then be used to fund new projects, strengthen the balance sheet, and pay dividends to shareholders.

I also like that Rio Tinto is building out its exposure to copper. That gives the company another potential source of earnings as demand grows from areas such as electrification, power networks, and renewable energy infrastructure.

For income investors, I think that mix works well. Rio Tinto has major assets generating cash today while still investing for the future.

What could the dividend look like?

For passive income investors, Rio Tinto’s dividend is one of the main reasons to consider the shares.

According to consensus forecasts, the miner is expected to pay fully franked dividends of $6.34 per share in FY26 and $6.62 per share in FY27.

At the current Rio Tinto share price, that works out to be prospective dividend yields of around 3.8% and 4%, respectively.

Those yields may not jump off the page, but I think they are attractive when combined with the potential benefit of franking credits.

For me, the bigger point is that investors are getting a reasonable level of income from a company I would also be comfortable owning for the long term.

What does the valuation look like?

Consensus forecasts are for earnings per share of $12.07 in FY26 and $12.04 in FY27.

At the current share price, Rio Tinto is therefore trading on a PE ratio of around 14 times forecast earnings.

I think that is a reasonable valuation for a business of this scale, particularly when the dividend is also part of the return.

Of course, Rio Tinto’s earnings will always move with commodity prices.

Iron ore weakness could put pressure on profits and dividends, while stronger prices could have the opposite effect.

That variability is simply part of owning a large miner.

I would not rely on the dividend alone

Rio Tinto is not the type of income share where I would expect the dividend to rise neatly every year.

The payout can move significantly depending on profits and commodity markets.

For that reason, I would see Rio Tinto as one part of a broader passive income portfolio rather than relying on it to provide a fixed amount every year.

That would still leave plenty of room for the company to make a meaningful contribution when conditions are favourable.

Foolish takeaway

Yes, I would buy Rio Tinto shares for passive income.

The prospective yield is solid, the dividends are expected to be fully franked, and the valuation looks reasonable.

I also like that Rio Tinto can offer more than income alone, with its existing assets and growing copper exposure giving the business opportunities to create value over the years ahead.

The post Should I buy Rio Tinto shares for passive income? appeared first on The Motley Fool Australia.

More reading

• BHP vs Rio Tinto: What’s the better buy?
• ASX 200 drops again as selling continues
• $10,00 invested in Rio Tinto and Fortescue shares 3 years ago is now worth…
• Down almost 10%! Why are ASX copper shares tanking?
• Iron ore is back below US$100. Are BHP and Rio Tinto shares still buys?

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

Netwealth Group vs HUB24 shares: which wealth platform is the better buy?

If you’re eyeing the ASX financials sector, it’s hard to ignore Netwealth Group Ltd (ASX: NWL) and HUB24 Ltd (ASX: HUB). Both are leading ASX-listed investment platform providers shaking up how advisers and individuals manage wealth in Australia. With impressive growth in recent years, both have become favourites among investors keen on exposure to the financial tech sector. If you’re wondering whether Netwealth or HUB24 shares are a better buy today, let’s break down the details.

The case for Netwealth Group

Netwealth Group is a financial services and technology business offering cloud-based investment administration software, a retail super fund, and administration services. Its platform delivers powerful portfolio tools and investment solutions for advisers, private clients, and companies. Revenue is mainly SaaS-based, tied to funds under administration on its platform.

In terms of numbers, Netwealth stands out for its 100% fully franked dividends and a yield of 2.23%—meaning income investors get solid, tax-effective dividends. While its P/E ratio is elevated at 76.28 (suggesting a high valuation relative to earnings), the company has made a habit of increasing its dividends over the years. Its recent year-to-date return is negative at -24.97%, reflecting share price pressure, but it remains a formidable operator in its niche. Netwealth’s earnings per share sits at $0.247, while it pays out $0.42 per share as a dividend.

The case for HUB24

HUB24 is also a diversified financial services business with a strong focus on providing administration platforms and cloud-based technology for financial advisers, accountants, and brokers. HUB24’s holistic offering also stretches into advanced data solutions for a variety of client types, including individuals and SMSFs.

HUB24 eclipses Netwealth in terms of scale, boasting a $5.74 billion market cap—more than $1 billion bigger than Netwealth. It has a lower P/E ratio at 48.21, pointing to a more moderate valuation given current earnings. Its dividend yield is lower at 1.11%, but it has lifted dividends impressively, paying a hefty $0.84 per share in the past year. HUB24’s earnings per share are a healthy $1.460, much stronger than Netwealth. The company’s year-to-date return is also negative at -26.07%, almost mirroring Netwealth’s underperformance in 2026.

Valuation comparison

Here’s how the two stack up on key valuation metrics:

Metric	Netwealth Group	HUB24
Market Cap	$4.61 billion	$5.74 billion
P/E Ratio	76.28	48.21
Dividend Yield	2.23%	1.11%
Earnings per Share (EPS)	$0.247	$1.460
Dividend per Share	$0.42	$0.84
Franking	100%	100%
Year To Date Return	-24.97%	-26.07%

HUB24’s P/E ratio is notably lower, suggesting better value relative to current earnings, and it delivers much higher earnings per share than Netwealth. Netwealth, meanwhile, takes the crown for a higher dividend yield, despite paying less in absolute terms. Both offer fully franked dividends, which is a win for Aussie investors.

Recent share price performance

Neither stock has been a winner so far in 2026, based on the latest prices (as of 15 September 2026). Netwealth’s shares have fallen from $23.31 on 18 August to $18.77, dropping steadily over the past month. HUB24’s story is similar; its share price slipped from $79.94 on 18 August to $70.16 on 15 September. Both stocks have shed roughly a quarter of their value year to date, showing the market is cautious on the sector right now.

While both have experienced sizeable declines, the trends have been fairly consistent—no wild volatility, just a steady grind downward.

Which is the better buy?

If I had to pick between these two financial platform heavyweights based on the latest data, I’d lean toward HUB24. While its dividend yield is lower, HUB24 offers a more reasonable (though still rich) P/E ratio, stronger earnings per share, and a larger scale that could provide greater resilience and firepower for future growth. Its dividend growth has also been robust, and the business seems to generate superior profits relative to its share price. Netwealth may appeal more to those who want higher yield and franking credits, but for me, HUB24’s combination of value and earnings momentum gives it the edge—even though both face a tough market environment at present.

The post Netwealth Group vs HUB24: Which financial platform is better from an investor’s perspective? appeared first on The Motley Fool Australia.

More reading

• Hub24 shares have fallen 27% in 2026. Could they really rebound 38%?
• Down 40%: Why I’d buy this ASX 200 share before sentiment improves
• 3 ASX shares I think could return 10%+
• Netwealth shares could be set to rise 60% in the next 12 months – Expert
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Laura Stewart 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 Hub24 and Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Lovisa vs Temple & Webster shares: Which is the better growth stock?

Everyday investors are spoiled for choice on the ASX when it comes to high-growth retailers, but Lovisa Holdings Ltd (ASX: LOV) and Temple & Webster Group Ltd (ASX: TPW) stand out. If you’re hunting a growth stock, you might find yourself weighing Lovisa’s sparkly global expansion against Temple & Webster’s home décor disruption. So, which one looks more promising as a buy right now? Here’s how I see the Lovisa vs Temple & Webster shares match-up.

The case for Lovisa Holdings

Lovisa is a fast-growing fashion jewellery retailer, founded in Sydney in 2010 and now boasting over 1,136 stores across more than 50 countries. Its vertically integrated model lets Lovisa design, source, and sell its own branded jewellery affordably through brick-and-mortar stores and seven online sites, capturing trend-focused consumers around the world.

Notably, Lovisa sits at a market cap of $2.51 billion and generated earnings per share (EPS) of $0.792. The company’s P/E ratio of 26.50 feels moderate for a growth-oriented retailer, and it currently offers a fully franked dividend yield of 3.5%. I also noticed a decent earnings yield of 3.77% and a history of paying increasing dividends, as recent years’ totals outpace the past.

The case for Temple & Webster Group

Temple & Webster is an online-only retailer, best known for its massive range of over 200,000 furniture and homewares products. It started in 2011 and now boasts more than a million Aussie subscribers, as well as the private label Milan Direct. That focus on e-commerce gives TPW a different growth path – fewer overheads, nimble operations, and a highly scalable reach across Australia.

Temple & Webster’s fundamentals, however, highlight its much smaller size: a market cap of $510.47 million. Its EPS is $0.064 – well below Lovisa’s – and although it’s profitable, its P/E ratio is a sky-high 128.82. TPW does not pay a dividend, preferring to invest every spare dollar into growth and market share.

Valuation comparison

Here’s how three key stats line up side-by-side:

Metric	Lovisa	Temple & Webster
Market Cap	$2.51 billion	$510.47 million
P/E Ratio	26.50	128.82
Dividend Yield	3.50%	0.00%
Earnings per Share	0.792	0.064

Lovisa is clearly the larger, more established company and is valued much lower on a P/E basis. Its dividend yield is attractive – and half-franked – while Temple & Webster is growth-oriented and reinvests instead of paying dividends. The glaring difference is the P/E ratio; TPW trades at nearly five times Lovisa’s multiple, which suggests either big future growth is anticipated or the shares are stretched.

Recent share price performance

Based on the most recent data (as at mid-September 2026), both stocks have been under the pump this year. Lovisa is down 20.16% year-to-date while Temple & Webster has plunged 67.32%. TPW’s 2026 share price history shows some big up and down swings – with sharp drops (like -17.82% in one day) and a lower base around the $4–5 mark.

Lovisa has also seen volatility in the past month but the daily moves have generally been in the -4% to +13% range, whereas Temple & Webster has seen several massive one-day falls and occasional bounces. Overall, recent momentum points to Lovisa holding value much better in tough conditions.

Which is the better buy?

If I’m making the call between Lovisa and Temple & Webster as a growth stock, my pick would be Lovisa.

Here’s why: Lovisa has a genuine global footprint, solid profitability, ongoing store rollouts, and a P/E that actually makes sense for a growth retailer. Plus, you get a fully-franked dividend of 3.5% as a sweetener. By contrast, Temple & Webster might have serious digital appeal, but its earnings are tiny, the P/E is sky-high, and the 67% share price drop makes me nervous about its near-term growth story. Unless Temple & Webster’s next era of growth comes through – which could reward risk-tolerant punters – the numbers simply stack up for Lovisa.

So, if you’re hungry for a top ASX growth stock right now, I’d lean toward Lovisa.

The post Lovisa vs Temple & Webster: Which ASX retailer is the better growth stock today? appeared first on The Motley Fool Australia.

More reading

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• What sort of upside is UBS predicting for Lovisa shares?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Laura Stewart 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 Lovisa and Temple & Webster Group. The Motley Fool Australia has recommended Lovisa 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Australian shares are still under pressure overall this week from high oil prices, inflation concerns, and expectations of an impending interest rate hike.

Let’s find out how major S&P/ASX 200 Index (ASX: XJO) shares like AGL Energy Ltd (ASX: AGL), Telstra Group Ltd (ASX: TLS), and Zip Co Ltd (ASX: ZIP) are tracking, and which ones brokers rate as a buy, sell, and a hold.

Buy Zip shares

It’s been a volatile ride for Zip shares over the past 12 months, with its shares swinging between a low of $1.38 in March and a high of $4.93 in January.

Most recently, the sell-off picked up pace after the company posted its FY26 results late last month. Zip posted a record result, including a huge 57.9% increase in its cash EBTDA, a 24.7% increase in total revenue, and a 45.7% hike in its NPAT for FY26. 

The announcement was initially well received by investors, who rushed to snap up the BNPL provider’s shares. But gains were quickly reversed, and the shares are now down around 28% since the announcement.

While the result itself was positive, many investors were underwhelmed by the company’s outlook for future growth.

Zip said it is aiming to deliver a group cash EBTDA of $340 million in FY27, up 26% on FY26, and target an operating margin of 20% to 22%. That’s much lower than the 57.9% cash EBTDA growth the company experienced in FY26.

But it looks like brokers are confident that the shares can keep climbing higher over the next 12 months. Market Index data shows all brokers have a strong buy rating on the ASX tech shares. And the $3.95 average target price implies an upside of around 79% at the time of writing.

Sell AGL Energy shares

AGL shares rallied higher in mid-August after the ASX energy stock posted an impressive FY26 result. 

The energy supplier announced a 2% increase in both its underlying EBITDA and underlying NPAT for FY26. It also confirmed a 60% increase in its operating free cash flow. The company said that it has grown its customer base, invested $600 million in firming projects, achieved major milestones – including two long-term power purchase agreements – and completed divestment of its stake in Tilt Renewables.

For FY27, AGL is guiding underlying EBITDA between $1.9 to $2.2 billion and underlying NPAT between $470 to $670 million.

But quickly after the share price spike, many investors rushed to take their gains off the table. 

At the time of writing, the shares are down around 5% over the past month, to $8.33 a piece. AGL shares are now down around 11% for the year to date and 4% lower than a year ago.

There hasn’t been any price-sensitive news out of AGL since its results announcement, so it looks like the latest sell-off is led by lower investor sentiment.

It looks like there are concerns that the company’s earnings recovery is taking longer than expected. 

At the same time, softer power-price expectations, driven by a surge in renewable energy and lower wholesale costs, are expected to put electricity companies like AGL under pressure.

Market Index data shows the majority of brokers have a sell rating on AGL shares. However, after the latest share price decline, the $9.70 target price implies a potential 16% upside.

Hold Telstra shares

Telstra shares have rebounded around 7% from an annual low in late August. The ASX telco shares are now around 0.2% higher year to date but roughly 1% lower than 12 months ago.

The shares tumbled after the telco posted its FY26 results mid-month, with revenue down 0.8% and underlying earnings up 4.4%. However, not long after, investors swooped back in to snap them up at a lower valuation.

As a classic defensive business, Telstra shares are also likely benefiting from a recent flight to security amid renewed geopolitical volatility and inflation concerns.

Brokers aren’t convinced that there is much more room for growth going forward. Market Index data shows the majority have a hold rating on Telstra shares. But the $5.01 average target price implies an upside of around 3% at the time of writing.

The post Buy, hold, sell: AGL Energy, Telstra, Zip shares 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.

A new report from Global X has shed light on the tricky market conditions facing investors today. Right now, investors are navigating high valuations and soft expectations in the Australian market. 

Marc Jocum, Senior ETF Strategist at Global X ETFs Australia, reinforced that investors are facing a challenging environment. 

With Australian equities trading near record highs but earnings expectations continuing to soften, as well as economic headwinds, investors may face a more challenging environment. In this backdrop, covered call strategies can offer an alternative way to participate in Australian equities while generating an additional source of income and potentially improving the risk-adjusted profile of a portfolio.

Economic headwinds

According to the report, the August reporting season was one of the most volatile on record. Almost half of the S&P/ASX 200 Index (ASX: XJO) companies moved more than 5% on their earnings day. 

While the ASX 200 reached record highs, the underlying earnings picture was less encouraging. 

Company guidance generally disappointed relative to consensus. Meanwhile, forward earnings per share (EPS) growth expectations have continued to be revised lower.

Against this backdrop, a subdued housing market, persistent inflation, fiscal uncertainty and the prospect of further RBA rate hikes could create additional headwinds for Australian equities. We don’t believe this is a reason to sell Australia. Rather, it highlights the potential value of changing the way investors access the market.

The team at Global X emphasised that a covered call strategy can be a viable option in this economic environment. 

What is a covered call strategy?

Covered call writing is an investment strategy where investors buy a stock, or a group of stocks, and sell call options on them. 

Selling call options on stocks investors already own generates income, without facing riskier margin calls. 

However, it requires investors to forego upside – as a covered call portfolio can be “called away” when markets move higher.

According to Global X, covered call ETFs have become an established part of the income market overseas. Australia appears to be following a similar trajectory. 

There is now close to $5 billion invested in covered call strategies in Australia. This is almost 10 times the level of five years ago.

A covered call strategy provides exposure to a broad basket of shares while systematically selling call options to generate additional income. The trade-off is that some upside is forgone when markets rise strongly, but the option premiums received can provide an additional return stream and a degree of downside cushioning when markets are flat or weaker.

Global X S&P/ASX 200 Covered Call Complex ETF (ASX: AYLD)

For investors looking to utilise this strategy, this ASX ETF could be an option to consider. 

The fund holds the constituents of the ASX 200 Index while selling at-the-money call options on the same index on a quarterly basis. 

It seeks to generate higher income by owning the ASX 200 and systematically selling at-the-money covered call options over the index. 

The strategy currently has a 9.2% trailing 12-month yield (as of August 2026), with option premiums providing an additional source of income alongside dividends and franking credits from the underlying Australian equities.

Importantly, the strategy is not simply about maximising yield. The option overlay can also alter the risk and return characteristics of the underlying equity exposure, historically resulting in lower volatility and a smoother return profile. In 2026, AYLD has outperformed the broader Australian share market by more than 2% to date with less bumps along the way.

The post With high valuations and pesky headwinds, this covered call ASX ETF could be a timely investment appeared first on The Motley Fool Australia.

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• With oil back over $100 USD per barrel, this ASX ETF could be set to benefit
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•  If I invest $10,000 in CBA shares, how much passive income will I receive in FY27?

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.

One of the most influential stories of 2026 has been surging oil prices.

Crude oil has gone past US$107 per barrel this week after Saudi Arabia closed its east-west oil pipeline following a drone attack. 

A new report from VanEck has reinforced that if oil stays near these levels, the consequences will reach much further than the energy sector.

What is going on with oil prices?

Oil prices are elevated in 2026 largely because the conflict in the Middle East has disrupted production and shipping. 

Tight inventories and limited spare capacity have amplified the impact of these disruptions. This is leaving the global market unusually sensitive to further supply shocks.

This has also influenced the RBA’s decision to hike interest rates throughout the year in an attempt to cool inflation. 

According to VanEck, if oil, which is already up more than 76% this year, remains at these levels and trimmed mean inflation stays above 3%, the case for further rate rises will be hard to dismiss. 

A prolonged oil shock could leave a second increase in play, adding pressure to household spending and growth-oriented equity valuations.

Higher oil prices can also support the earnings of energy producers and refiners, creating opportunities for portfolios positioned to benefit.

Where is the upside?

These economic factors have led to a surge in 2026 for ASX energy stocks.

In fact, the S&P/ASX 200 Energy Index (ASX: XEJ) is up 32% year to date. 

According to VanEck, while higher oil prices pose a challenge for the wider economy, investors are exposed to the other side of the story: favourable industry conditions can produce substantial returns.

From the beginning of 2026 to the end of August, global oil refiners returned around 50% and Australian oil refiner Ampol Ltd (ASX: ALD) gained close to 40%. 

International equities returned about 5% over the same period.

These gains do not mean every energy company will benefit to the same extent. However, they do show the size of the opportunity when stronger industry conditions flow through to company earnings.

An ASX ETF to consider

Higher oil prices remain a threat to inflation, interest rates, and household spending. 

But they could also create an earnings tailwind for selected Australian energy companies. 

One ASX ETF that could be a buy in this market is the VanEck Australian Resources ETF (ASX: MVR). 

It provides a strong resources and energy tilt. 

As of August 2026, oil and gas represented 19.2% of the fund. This is much higher compared with 11.4% of the S&P/ASX 200 Resources Index (ASX: XJR).

The structure of the fund also caps each company at 8% at rebalance, preventing one company, such as BHP Group Ltd (ASX: BHP), from dominating the portfolio. 

As a result of the cap, the weight released from BHP is spread across energy producers, gold miners, critical minerals companies, and other parts of the resources sector.

That gives investors more exposure to companies that may benefit from higher oil prices without making the entire allocation dependent on one commodity or company.

Foolish takeaway

Surging oil prices are putting upward pressure on inflation and interest rates, but they are also boosting energy-sector earnings. 

This potentially benefits resource-focused investments such as the VanEck Australian Resources ETF.

The post With oil back over $100 USD per barrel, this ASX ETF could be set to benefit appeared first on The Motley Fool Australia.

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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.

Aussie investors have another reason to keep a close eye on overseas markets on Thursday.

The US Federal Reserve has raised interest rates for the first time since July 2023, lifting its benchmark rate by 25 basis points to between 3.75% and 4%.

The hike itself wasn’t a huge surprise, but Wall Street didn’t exactly love what came next.

US shares started slipping as Fed chair Kevin Warsh spoke after the decision.

By the close, the Dow Jones Industrial Average Index (DJX: .DJI) had fallen 631 points, or 1.21%, while the S&P 500 Index (SP: .INX) dropped 0.45%. The Nasdaq Composite Index (NASDAQ: .IXIC) finished almost flat, down 0.01%.

And now some of that weakness looks set to follow us home.

The S&P/ASX 200 Index (ASX: XJO) futures are currently pointing around 0.7% lower ahead of today’s open.

Why did the Fed raise rates?

The Fed didn’t have much disagreement on this one, with all 12 voting members backing the increase.

According to the Fed, the US economy is still moving along at a “solid pace”, with domestic spending holding up, productivity growth remaining strong and unemployment little changed.

Inflation, though, is still sitting above the Fed’s 2% target.

Warsh made that pretty clear after the decision, saying inflation was still too high and had stayed there for too long.

That sent bond yields higher.

The US 10-year Treasury yield moved back above 5%, finishing around that level for the first time since 2007.

Why did Wall Street fall?

Once the first hike was out of the way, attention quickly moved to what the Fed might do next.

The Fed’s updated projections put the median federal funds rate at 4.1% by the end of 2026.

Reuters reported that 16 of 18 policymakers expect at least one more increase before the year is out.

The US dollar also strengthened after the decision, while the Australian dollar slipped below US 71 cents against the greenback overnight.

What does this mean for the ASX?

For me, today’s open probably isn’t the main thing to focus on.

A weaker start would be pretty understandable after Wall Street’s reaction overnight.

What I’d rather watch is whether the ASX can settle down once trading gets underway, or whether the selling keeps building through the session.

Another US rate hike is still possible before the end of the year, so the Fed could remain a factor for ASX investors over the coming months.

The post The Fed just hiked rates for the first time in 3 years. What does it mean for ASX investors? appeared first on The Motley Fool Australia.

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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.

Nanosonics Ltd (ASX: NAN) shares have fallen almost 30% over the past year, but according to the team at RBC Capital Markets, they could be primed for a recovery.

The broking house has just released a new research report on the company and has assigned it an outperform rating and a bullish share price target, which I’ll get to shortly.

First, let’s look at the company’s most recent news – its FY26 financial results and the announcement of a share buyback.

Steady year, with core business performing well

Nanosonics’ main revenue-generating business at the moment is its Trophon division, which placed 4230 new units during the year, up 9%.

The company’s revenue was up 3% to $203.9 million, while EBIT was $16 million, down 10%.

If the Trophon division is looked at on a stand-alone basis, its EBIT would be $50.6 million.

The company had no debt and cash on hand of $155.2 million at the end of the year, having completed a $20 million buyback.

Nanosonics also announced a new, $40 million buyback for FY27.

Chief Executive Officer Michael Kavanagh said:

Nanosonics is entering a defining period of growth. FY26 demonstrated the strength of the business we have built: a proven Trophon franchise, disciplined financial execution and in FY27 we will progress the CORIS System from CMR to commercialisation. Trophon remains the economic engine for Nanosonics and an important foundation for future value creation. We delivered 6% revenue growth and 21% EBIT growth in constant currency. We achieved our strongest annual placement volume in three years, record upgrades in North America and expanded the cumulative installed base. We also launched trophon3 and trophon2 Plus, and saw accelerating adoption of these next generation technologies in the second half.

Mr Kavanagh said the CORIS system had the potential to establish a new standard of care in endoscope reprocessing and build a recurring revenue business over time.

He said the company planned to launch CORIS across the UK, Ireland, and Australia in the first half of FY27, with the US launch to follow.

Shares looking cheap, broker says

RBC Capital Markets said in their research note that the current Nanosonics share price “is implying an overly bearish scenario”.

They added:

NAN’s Trophon business improved its profitability with EBIT increasing from $47m in FY25 to $50m in FY26. While we expect Trophon capital sales will be negatively impacted by tariffs in higher freight costs, we expect absolute profitability to continue increasing in FY27 and are forecasting Trophon only EBIT of $54m (+8%). We value the Trophon only business at $3.55/share.

RBC has revised its forecasts to assume CORIS hits breakeven over the horizon period.

Its price target for Nanosonics shares has increased from $3 to $3.75, compared with a share price of $2.88 at the time of writing.

Nanosonics is valued at $836.9 million.

The post This ASX biotech could jump more than 30%, one broker says appeared first on The Motley Fool Australia.

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