Author: openjargon

On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a difficult session and sank into the red.  The benchmark index fell 1.1% to 8,686.1 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market looks set to rebound on Friday following a positive night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 32 points or 0.35% higher this morning. On Wall Street, the Dow Jones was up 1.7% and the S&P 500 rose 0.4%, but the Nasdaq edged 0.1% lower.

Oil prices tumble

ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a poor finish to the week after oil prices pulled back overnight. According to Bloomberg, the WTI crude oil price is down 3% to US$93.12 a barrel and the Brent crude oil price is down 2.6% to US$95.25 a barrel. Traders were selling oil amid reports that US President Donald Trump is reluctant to resume a full-scale war with Iran despite recent clashes.

IperionX shares named as a buy

IperionX Ltd (ASX: IPX) shares are in the buy zone according to analysts at Bell Potter. This morning, the broker has retained its speculative buy rating and $8.25 price target on the titanium production technologies company’s shares. It said: “IPX has the potential to disrupt the incumbent titanium supply chain through materially lowering production costs and manufacturing waste. The company will incrementally expand capacity and progress commercial relationships with aerospace, automotive, luxury goods and government end users. IPX will benefit from increased defence sector spending and with its focus on domestic US manufacturing.”

Gold price rises

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a good finish to the week after the gold price rose overnight. According to CNBC, the gold futures price is up 0.9% to US$4,506.9 an ounce. The precious metal was given a boost from a weaker US dollar and softening bond yields.

Megaport shares to return

Megaport Ltd (ASX: MP1) shares will be worth watching on Friday when the network solutions company returns to trade. Megaport is undertaking a capital raising after announcing four new artificial intelligence (AI) infrastructure contracts with a combined total contract value of approximately $458.9 million. Megaport’s CEO, Michael Reid, commented: “AI inference is becoming a global infrastructure challenge, not simply a GPU problem. As AI adoption accelerates, organisations need seamless access to GPUs, CPUs, storage, and the connectivity that powers them. Megaport is built to deliver it all.”

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

More reading

• Here are the top 10 ASX 200 shares today
• Why is the ASX 200 being smashed today?
• Up 148% since April, should I still buy Megaport shares today?
• Why IperionX, Northern Star, Opthea, and Superloop shares are tumbling today
• How high does Macquarie think Megaport shares will go?

Motley Fool contributor James Mickleboro has positions in Megaport and Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. 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.

ASX small-cap EBR Systems Inc (ASX: EBR) is making headlines this week. 

Yesterday, the company released an announcement that it aims to raise A$150.0m via a fully underwritten capital raising. 

According to the release, the proceeds from the Capital Raising are intended to be used to support sales and marketing expansion, manufacturing scale up, R&D and clinical, working capital and the costs of the offer.

The offer price per New CDI (Offer Price) under the Capital Raising is 38 cents. This represents a 19.1% discount to the last closing price of EBR on June 3 which was 47 cents per share. 

EBR company overview

EBR is a clinical stage company that has developed its patented Wireless Stimulation Endocardially (WiSE) technology. The technology is for the treatment of cardiac rhythm disease and to eliminate the need for cardiac pacing leads when delivering cardiac resynchronisation therapy.

It has been hotly covered over the last few months as it has repeatedly received positive outlooks from brokers. 

However, this is yet to translate to realised capital gains. Its share price has fallen almost 50% year to date. 

What does this mean for investors?

For investors, this capital raise is a significant dilution event for this ASX small-cap. 

EBR is issuing a large number of new shares at a heavily discounted price. This means existing shareholders who do not participate in the entitlement offer will see their ownership percentage reduced. 

The raise price of 38 cents per share may also put short-term pressure on the share price as the market adjusts to the new valuation.

However, the positive side is that EBR has secured more capital than expected. Management believes this funding should carry the company through to cash-flow breakeven, reducing the risk of further capital raisings in the future. 

The funds will also allow the company to accelerate sales, marketing, manufacturing and clinical activities.

Overall, investors are being asked to accept substantial near-term dilution in exchange for a stronger balance sheet, a potentially lower need for future fundraising, and an improved pathway to commercial success. 

The investment case now depends more heavily on whether EBR can execute its growth strategy and convert this into meaningful sales over the next few years.

What’s Bell Potter’s view?

Following the announcement, the team at Bell Potter also weighed in on the outlook for this ASX small-cap. 

The broker appears to be cautiously positive on the business, but disappointed by the terms of the capital raise.

The A$150m raise is larger than expected. This is not necessarily a negative because it gives EBR more funding to execute its commercialisation strategy.

However, the dilution is materially worse than they anticipated. 

They specifically highlighted that the share count will increase by about 87.6% and that the issue price of 38 cents is far below their assumed 63 cents. This reflects how much the share price had weakened before the raise.

Despite this, the broker has retained its buy recommendation and $2.00 price target. 

This indicates an upside potential of more than 325%. 

We view the raising as a significant de-risking event, enabling EBR to commercialise WiSE and reach breakeven by FY29. 

This raising should serve as a cathartic event and clear the overhang from the share price. Post shareholder approval of tranche 2, we think the share price will be well supported by the market.

The post ASX small-cap with 300%+ potential upside announces capital raise appeared first on The Motley Fool Australia.

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

The Reserve Bank of Australia’s decisions surrounding the cash rate have been a hot topic for investors in 2026. The official cash rate has been raised three consecutive times this year. 

The official cash rate sits at 4.35%, its equal highest mark since 2011. 

With the RBA set to meet in less than two weeks, investors will be anxiously anticipating the next move. 

A new Global X report has identified that rising interest rates and changing tax settings are creating a new landscape. For income-focused investors, that could present a big opportunity.

After years of relying on banking stocks driving the market higher, investors are now facing a market where capital gains may become harder to achieve, volatility is rising, and traditional income sources are under pressure. At the same time, higher interest rates are increasing the income available from a range of investments.

Particularly strategies designed to generate enhanced income.

Income investing is back 

The 2026 Federal Budget introduced proposed changes to capital gains tax rules that may reduce some of the advantages of relying heavily on portfolio growth.

Meanwhile, higher interest rates have increased yields across several asset classes, including bonds, bank debt and enhanced income strategies. 

Market volatility has also risen, which can increase the income generated by option-based strategies.

According to Global X. for retirees and investors seeking more dependable portfolio income, this environment may offer opportunities that were difficult to find during the ultra-low-rate years.

A different approach

According to the report, traditional income investing in Australia has often centred around bank shares and fully franked dividends. But today’s market may require a more diversified approach.

Some investors are now blending multiple income sources, including:

• High-dividend Australian shares
• Bank bonds and credit investments
• Enhanced income ETFs such as the Global X Covered Call suite
• Defensive income-producing assets

The goal is not simply to chase the highest yield. It is about building more resilient income streams that can help investors navigate market uncertainty while remaining invested.

As interest rates stay elevated and market conditions become more challenging, income-focused investing may once again become a central theme for Australian portfolios.

How to benefit with ASX ETFs

Due to these economic conditions, Global X has identified several ASX ETFs that could be set to benefit from the current high interest rate environment. 

The first option to consider according to Global X is the Global X Australian Bank ETF (ASX: BANK). 

It invests in a diversified portfolio of Australian banking debt across the full capital structure, comprising fixed and floating-rate bonds, senior and subordinated debt, and hybrid securities.

Another option to consider is the Global X S&P/ASX 200 High Dividend ETF (ASX: ZYAU). 

It targets 50 high-dividend stocks from the S&P/ASX 200 Index.

The post How income investors can benefit from interest rate hikes: Expert appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Friday

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.

Electro Optic Systems Holdings Ltd (ASX: EOS) shareholders have an unusual opportunity sitting in front of them.

But it is only available to certain investors, and the deadline is coming up fast.

At the time of writing, the EOS share price is down 7.40% to $11.02.

Even after the fall, the ASX defence stock is still trading well above the $8 price attached to its current share purchase plan (SPP).

That means eligible shareholders could buy new EOS shares at a major discount to the current market price.

Based on the current share price, the gap between $8 and $11.02 is about 38%.

Of course, that gap could change quickly if the share price moves before the new shares begin trading.

So, what’s going on here?

A discounted offer for existing shareholders

EOS opened its SPP on 25 May.

Under the plan, eligible shareholders can apply for up to $30,000 worth of new shares at $8 each.

The offer is only available to shareholders who were on the register at 7pm AEST on Friday, 15 May 2026.

The offer is due to close at 5pm AEST on Tuesday, 9 June 2026.

EOS expects to announce the results of the SPP on Friday, 12 June, with new shares due to be issued on Tuesday, 16 June.

Those shares are expected to begin trading on Wednesday, 17 June.

Why the discount looks so large

The $8 offer price was set as part of a much larger capital raising.

EOS recently completed a $150 million institutional placement at the same price.

It also announced a $40 million strategic placement to Generation 5 Holding L.L.C, a related entity of Abu Dhabi-based defence group Calidus L.L.C, alongside another defence-focused institutional investor.

EOS said the institutional placement price represented a 9.3% discount to the last traded price before the raising was announced.

But the share price has moved strongly since then. EOS shares touched an all-time high of $12.58 on Tuesday, before some investors took profit.

That has left the SPP price sitting well below where EOS shares are currently trading.

The company said proceeds from the capital raising will help fund the upfront consideration for the MARSS acquisition.

Management said it will also use the funds to strengthen the balance sheet, alongside its secured term loan facility from Washington H. Soul Pattinson and Company Ltd (ASX: SOL).

EOS completed the MARSS acquisition on 21 May.

MARSS is a Europe-based provider of AI-enabled command-and-control systems for counter-drone capability.

The return is not guaranteed

Keep in mind, this isn’t a guaranteed 38% return.

The share price could fall before the new shares begin trading.

EOS also has the right to scale back applications if demand for the SPP is higher than expected.

The company is targeting up to $25 million through the SPP, though it can accept more or scale back applications at its discretion.

That means eligible investors may not receive the full number of shares they apply for.

There is also the wider question of valuation.

EOS shares have already had a huge run over the past year, helped by rising interest in remote weapon systems (RWS) and high-energy laser weapons (HELW).

The discounted SPP may look attractive on paper, but investors still need to weigh that against the risks of buying after such a strong rally.

The post If you own this ASX 200 stock, here’s how to make a quick 38% return next week appeared first on The Motley Fool Australia.

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• Iran war impact on ASX defence shares and ETFs
• The SpaceX IPO is coming. Here’s how ASX investors can benefit from the excitement
• These ASX stocks have hit the ground running in June – can they keep rising?
• 3 top ASX shares at 52-week highs I’d still buy
• Why are Electro Optic Systems shares up more than 10% 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 positions in and has recommended Electro Optic Systems and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Russia’s invasion of Ukraine in 2022 kickstarted the global defence spending investment megatrend.

The staunch US ‘America First’ policy under US President, Donald Trump, exacerbated it.

NATO’s massive commitment last year to more than double its defence spending from 2% of GDP to 5% within 10 years reflected it.

And today, the Iran war has brought defence capabilities into even sharper focus, says CommSec analyst, James Gruber.

Defence spending continues to rise

In an article, Gruber says global defence spending has increased by almost 30% over three years – the fastest rise since the 1980s.

This has directly impacted the earnings of ASX defence companies, whose share prices have soared since 2022.

In 2024, the global defence spending trend was strong enough to warrant the launch of three exchange-traded funds (ETFs) on the ASX.

Then came the Iran war, which further highlighted the need for domestic defence capacity, not to mention energy security, for all nations.

ASX defence shares and ETFs had a particularly strong run in 2024 and 2025.

They have cooled in 2026, alongside the rest of the market, despite the Iran war keeping the defence theme front of mind for investors.

Bearing in mind that many factors can influence a company’s stock value, let’s take a look at the share price movements of four ASX defence shares and three thematic ASX ETFs since 2022, and also since the Iran war began on 28 February, to get an idea of the impact.

Austal Ltd (ASX: ASB)

Austal is an Australian defence shipbuilder and services provider that builds ships for the Australian Navy, US Navy, and other clients.

The Austal share price has doubled over the past four years. The ASX defence share hit a record $8.82 in January.

The Iran war began on 28 February. Since then, Austal stock has dropped 22% to $4.01 per share.

Droneshield Ltd (ASX: DRO)

Droneshield is a counter-drone technology company that makes drone defence systems.

Gruber says DroneShield has a niche, offering a range of equipment for detection and neutralisation, and aims to be a one-stop shop.

The Droneshield share price has soared 1,133% over the past four years. The ASX defence share hit a record $6.71 in October.

Since the Iran war began, Droneshield shares have fallen 18% to $2.96 per share.

Titomic Ltd (ASX: TTT)

Titomic manufactures lightweight titanium parts and provides industrial-scale metal additive solutions.

These solutions include its patented Titomic Kinetic Fusion cold spray technology for fast repairs of military equipment.

The Titomic share price has leapt 145% since 2022. The ASX defence share hit a 52-week high of 36 cents in October.

Since the Iran war began, Titomic shares have lifted 17% to 25 cents apiece today.

Electro Optic Systems Holdings Ltd (ASX: EOS)

Electro Optic specialises in advanced weapon systems, counter-drone solutions, and space domain awareness.

The Electro Optic Systems share price has ripped 468% since 2022. The ASX defence share hit a record $12.58 in March.

Since the Iran war began, Electro Optic Systems shares have risen 20% to $10.80 today.

What about ASX defence ETFs?

The following three ASX ETFs were launched in 2024. Let’s take a look at their performance.

Vaneck Global Defence ETF (ASX: DFND)

DFND ETF holds just 36 shares and tracks the MarketVector Global Defence Industry (AUD) Index before fees.

DFND ETF is 75% higher since inception in September 2024. The ASX defence ETF hit a record $45.47 per unit in January.

Since the Iran war began, DFND ETF units have drifted 11% lower to $35.25 today.

Global X Defence Tech ETF (ASX: DTEC)

ASX DTEC invests in 37 shares and seeks to track the Global X Defense Tech Index before fees.

The DTEC ETF price has increased 59% since inception in October 2024. The ASX defence ETF hit a record $21.50 in January.

Since the Iran war began, DTEC ETF units have fallen 16% to $15.96.

Betashares Global Defence ETF (ASX: ARMR)

ASX ARMR invests in up to 60 companies headquartered in NATO nations or allied countries, such as Australia and Japan.

It seeks to mirror the returns of the VettaFi Global Defence Leaders Index before fees.

ARMR ETF units have ascended 55% since launching in October 2024. The ASX defence ETF hit a record $29.35 in January.

Since the Iran war began, ARMR ETF units have descended 11% to $23.50 today.

The post Iran war impact on ASX defence shares and ETFs appeared first on The Motley Fool Australia.

More reading

• If you own this ASX 200 stock, here’s how to make a quick 38% return next week
• DroneShield shares slump 18% in a month: Has the ASX defence stock finally lost steam?
• Should I buy DroneShield shares after its US contract win?
• The SpaceX IPO is coming. Here’s how ASX investors can benefit from the excitement
• These ASX stocks have hit the ground running in June – can they keep rising?

Motley Fool contributor Bronwyn Allen has positions in Betashares Global Defence ETF – Beta Global Defence ETF and Vaneck Global Defence Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and Electro Optic Systems. 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.

Ask most Australians how much superannuation they need to retire comfortably and you will get a shrug.

Ask the Association of Superannuation Funds of Australia and you will get a very specific answer.

According to ASFA’s February 2026 Retirement Standard, a comfortable retirement now costs $51,278 per year for a single person and $77,375 per year for a couple.

To fund that lifestyle from age 67, ASFA estimates homeowners need $630,000 in superannuation for singles and $730,000 for couples.

Those figures have just reached all-time highs, driven by inflation pushing up the cost of healthcare, energy, food, and services. And many Australians are nowhere near them.

The gap is bigger than most people realise

According to APRA’s most recent superannuation statistics, the average superannuation balance at retirement age is approximately $250,000 for men and $160,000 for women.

That is less than half of what ASFA says a single person needs for a comfortable retirement.

In better news, the shortfall is not a crisis for those who will receive the full Age Pension.

A modest retirement, defined by ASFA as a lifestyle slightly above the Age Pension, requires only $110,000 for singles and $120,000 for couples. This is because the pension does most of the heavy lifting.

But the difference between a modest and comfortable retirement is approximately $20,000 per year for singles.

That gap funds private health insurance, a car replacement, regular dining out, annual domestic travel, and an overseas trip every few years.

For most Australians, that gap is worth closing.

Why ASX shares inside super are one of the most powerful tools available

The good news is that superannuation, combined with smart investing inside it, is one of the best wealth-building tools available to Australians.

Earnings inside super are taxed at just 15% during the accumulation phase, compared to your marginal tax rate outside super.

In retirement, those earnings become completely tax-free.

The S&P/ASX 200 has returned approximately 8.5% per annum including dividends since inception. Inside a superannuation structure, this figure translates to an after-tax return that few alternative asset classes can match.

A 35-year-old with $100,000 in super today, earning 8.5% per annum and contributing 12% of a $100,000 salary, would accumulate approximately $1.8 million by age 67.

That is comfortably above the ASFA comfortable retirement benchmark. It also exposes the common misconception that superannuation alone cannot get most Australians to a dignified retirement.

Two ASX shares worth holding inside super

For investors building wealth inside super, quality fully franked dividend payers are particularly effective.

Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) are two of the most widely held ASX shares in superannuation funds, and for good reason.

CBA is forecast to pay a fully franked dividend of approximately $5.15 per share in FY2026, held inside a super fund taxed at 15%. This dividend also generates a franking credit refund that effectively boosts the after-tax yield well above the headline figure.

BHP’s fully franked dividend, backed by iron ore and copper earnings, provides exposure to commodity price growth alongside a reliable income stream.

Both are businesses that reward the patient, long-term holding philosophy that superannuation, by its very nature, encourages.

The 30 June deadline is important

The concessional contributions cap for FY2026 sits at $30,000, including employer contributions.

Australians who have not yet reached that cap have until 30 June 2026 to make additional pre-tax contributions.

Every dollar contributed at the 15% concessional rate rather than at a marginal rate of 32.5% or higher is a permanent and compounding tax saving.

Foolish takeaway

The number that ASFA puts on a comfortable retirement might be higher than you expected.

But the combination of compulsory superannuation, the tax advantages of the super structure, and the long-term returns available from quality ASX shares makes that target achievable for most Australians who start paying attention early.

The post How much super do you actually need to retire in Australia? The answer might surprise you appeared first on The Motley Fool Australia.

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• How low could CBA shares go?

Motley Fool contributor Mark Verhoeven 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.

The S&P/ASX 200 Index (ASX: XJO) endured a calamitous day on the markets this Thursday, reversing all of yesterday’s gains and pushing the market and many ASX shares decisively lower.

After opening sharply lower compared to yesterday’s close, the ASX 200 remained in red territory all session and ended up closing down 1.13%. That leaves the index at 8,686.1 points.

This tough day on the local bourse for Australian investors came after a similarly bearish session on Wall Street last night.

The Dow Jones Industrial Average Index (DJX: .DJI) was in a foul mood, dropping 1.21%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) wasn’t much better, falling 0.89%.

But let’s return to ASX shares now and take a look at how today’s tough trading conditions percolated down into the different ASX sectors today.

Winners and losers

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

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Motley Fool contributor Sebastian Bowen has 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 Telix Pharmaceuticals and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended Eagers Automotive Ltd and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If I were putting $5,000 into Vanguard exchange-traded funds (ETFs) in June, I would be looking for long-term growth rather than a short-term trade.

The three ASX ETFs in this article give investors exposure to different parts of the share market. I think that can be useful because no one region, strategy, or market will always lead.

Here’s where I would consider investing.

Vanguard S&P 500 US Shares Index ETF (ASX: V500)

The first Vanguard ETF I would consider is the Vanguard S&P 500 US Shares Index ETF.

This fund gives investors exposure to the S&P 500, which includes 500 of the largest listed companies in the United States.

I like this ETF because the US market remains home to many of the world’s strongest companies. These businesses are often global leaders, with large customer bases, strong balance sheets, and the ability to keep investing in new products, technology, distribution, and acquisitions.

While technology has become a large part of this index, investors also gain exposure to healthcare, financial services, industrials, consumer brands, payments, communication services, and other major parts of the US economy.

The V500 ETF is unhedged, so currency movements can affect returns for Australian investors. But for investors seeking long-term capital growth, I think it is an appealing way to gain exposure to the US share market.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The second Vanguard ETF I would consider is the Vanguard MSCI Index International Shares ETF.

The VGS ETF gives investors broad exposure to developed-market shares outside Australia. That includes the United States, but it also adds companies from markets such as Japan, the United Kingdom, Canada, France, Germany, Switzerland, and other major economies.

I like this ETF because it provides a wider global base than a pure S&P 500 fund.

There will be overlap with the V500 ETF, particularly through large US companies. But the VGS ETF adds more international depth, which can be useful for investors who want exposure to different economies, currencies, industries, and business cultures.

The fund can give access to areas that are harder to build through the ASX alone, including global healthcare leaders, luxury brands, industrial champions, semiconductor suppliers, software businesses, and consumer platforms.

It may not be exciting but it gives investors a simple way to own a large basket of global companies without needing to choose every market or stock individually.

For long-term investors, I think the VGS ETF remains one of the cleanest Vanguard options on the ASX.

Vanguard Diversified High Growth Index ETF (ASX: VDHG)

The third Vanguard ETF I would look at is the Vanguard Diversified High Growth Index ETF.

This is a very different option from the first two. The VDHG ETF is designed as an all-in-one diversified fund. It gives investors exposure to Australian shares, global shares, emerging markets, and some defensive assets in a single ETF.

I like it because it reduces the need to overthink the mix.

Some investors enjoy choosing between Australian shares, US shares, global shares, and emerging markets. Others may prefer a simpler option that does much of that asset allocation inside one fund.

The VDHG ETF is tilted strongly towards growth assets, so it can still move around when share markets fall. It is not a low-volatility fund. But for investors with a long time horizon, that growth focus can be useful.

I also think there is a behavioural benefit. A diversified ETF can make it easier to stay invested because the investor is not relying on one market, one country, or one theme to carry the whole return.

Foolish takeaway

I would keep a $5,000 investment in Vanguard ETFs simple.

The aim is not to find the perfect fund for the next few weeks. It is to put money into assets that can keep working over many years, across different markets and conditions.

That is why I like using simple, diversified ETFs for this type of investment. They can help investors avoid overthinking every short-term market move and focus on the bigger prize: staying invested long enough for compounding to make a meaningful difference.

The post Where to invest $5,000 in Vanguard ETFs in June appeared first on The Motley Fool Australia.

More reading

• 3 ASX ETFs to diversify away from a flat Aussie market
• 3 reasons why this ASX ETF could be an incredible buy-and-hold forever idea
• Top 10 ASX shares bought and sold by investors in May
• Why I’d buy these Vanguard ETFs with $3,000 in June
• Can you get rich by investing $5,000 a year into ASX shares?

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 Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The big four banks are popular with income investors for good reason.

Westpac Banking Corp (ASX: WBC) and the rest can all provide exposure to large, profitable businesses with fully franked dividends.

I remain positive on the better-quality names in that group, particularly Commonwealth Bank of Australia (ASX: CBA). But many Australian income investors may already have meaningful exposure to the banks through direct shareholdings, superannuation, or index funds.

That is why I think it can be useful to look outside the big four as well.

Two ASX income shares I would consider are named in this article.

APA Group (ASX: APA)

APA Group is one income share I would buy outside the banks.

The company owns and operates energy infrastructure, including gas pipelines, power generation assets, storage, and related infrastructure across Australia.

I like APA because it gives investors exposure to a very different type of income stream.

Banks are closely tied to credit growth, margins, bad debts, housing, business lending, and the wider economy. APA is more connected to energy infrastructure, contracted revenue, regulated assets, and long-term demand for reliable energy supply.

That difference is useful. Australia’s energy system is changing, but I do not think that makes energy infrastructure irrelevant. In fact, reliable infrastructure may become even more important as the grid deals with renewable energy, industrial demand, gas reliability, and system flexibility.

APA is not without risk. Debt levels, interest rates, regulation, project execution, and energy policy can all affect the investment case. Investors also need to consider how the energy transition may shape the business over the very long term.

But I think APA’s asset base remains important. Pipelines and related infrastructure are difficult to replicate, and the company has a long record of paying distributions to investors.

For income investors wanting something outside the banking sector, I think APA offers a useful blend of yield, infrastructure exposure, and recurring cash flow.

Charter Hall Long WALE REIT (ASX: CLW)

The second ASX income share I would consider is Charter Hall Long WALE REIT.

This real estate investment trust (REIT) owns a portfolio of long-leased properties across Australia. Its tenants include government, major corporates, and large operators across different sectors.

The appeal here is the lease profile. Long leases can provide better visibility over rental income, which can support distributions over time. That is attractive for investors who want income but do not want all of it tied to the banks.

Charter Hall Long WALE REIT also owns a diversified portfolio, including assets across office, industrial, logistics, retail, and social infrastructure-style property. I like that spread because the income is not dependent on one tenant or one single property type.

There are risks to consider. REITs can be sensitive to interest rates, property valuations, debt costs, and investor sentiment towards listed property. Higher bond yields can make income assets less attractive, while weaker property markets can put pressure on valuations.

But I think that is also why listed property income shares can become interesting when the market is cautious.

For investors seeking income, Charter Hall Long WALE REIT offers something quite different from bank dividends. It provides exposure to rental income backed by a large property portfolio and long leases.

Foolish takeaway

I do not think income investors need to avoid the big four banks. They can still play a useful role, especially when the focus is fully franked dividends and large, profitable Australian businesses.

But concentration is important. If an investor already has plenty of exposure to Westpac and the other major banks, I think APA and Charter Hall Long WALE REIT could be worth considering as alternatives. They bring different income drivers, different risks, and exposure to infrastructure and property rather than bank earnings.

That kind of variety can be useful when building a more balanced income stream over time.

The post 2 ASX income shares I’d buy outside Westpac and the big four banks appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. 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 Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares are tumbling on Thursday, down 1.3% to 8,669 points.

Among the 11 market sectors, consumer staples is in the lead today, up 0.9%, while materials is down a hefty 3%.

Materials have been dragged lower by the major iron ore miners, including BHP Group Ltd (ASX: BHP), down 3.2% to $62.81.

Let’s take a look at some new ratings for three ASX shares.

Goodman Group (ASX: GMG)

The Goodman share price is $31.13, down 1.9% on Thursday and up 6% over six months.

Morgans has a buy rating and $36 price target on the market’s largest ASX 200 real estate share.

The broker said: 

GMG’s 3Q26 update reinforced a deliberate strategy: deploy balance-sheet capital ahead of customer commitments to win the race for power-enabled metro data centre (DC) capacity.

The structurally important note was management’s view that industry DC capex requirements likely exceed global capital market funding capacity, a backdrop that favours those with secured power, sites and locked-in capital partners.

We partially reverse the discretionary discount applied in our March sector update (-10% to -5%) reflecting growing conviction in the capital-scarcity moat and peer pre-commit validation, noting that GMG’s own leading indicators have not yet inflected.

Arafura Rare Earths Ltd (ASX: ARU)

The Arafura Rare Earths share price is 28 cents, down 1.1% today and up 3% over six months.

Philippe Bui from Medallion Financial Group has a hold rating on this ASX 300 rare earths share. 

Bui said (courtesy The Bull):

The rare earths company is developing the Nolans Project in the Northern Territory — Australia’s first fully integrated ore-to-oxide NdPr (Neodymium-Praseodymium) operation, producing the critical input for electric vehicle motors and wind turbines.

With China controlling about 85 per cent of global processing and restricting exports, projects like Nolans are rare and strategically valuable.

The company just reached its final investment decision and recently received commitments under an institutional placement to raise $350 million.

Elders Ltd (ASX: ELD)

The Elders share price is $5.33, up 0.1% today and down 27% over six months.

John Athanasiou from Red Leaf Securities has a sell rating on this ASX 200 agriculture share.

Athanasiou said: 

The company’s exposure to agriculture, livestock and rural services make it highly sensitive to seasonal and commodity-driven swings.

While expansion through acquisitions has supported scale, it has also increased leverage, which, in our view, reduces balance sheet flexibility.

Without a clear cyclical upswing, the outlook remains challenging. Elders is exposed to elevated diesel prices, which remains a risk to the company’s cost base.

In our opinion, the stock offers limited defensive characteristics, making it more suitable as a sell than a hold at this stage of the cycle.

The post Buy, hold, sell: Goodman, Arafura Rare Earths, Elders shares appeared first on The Motley Fool Australia.

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