Markets feel messy right now. Volatility is the result and it can make even experienced investors question how to invest next.

Between artificial intelligence disruption, geopolitical tension in the Middle East, and stubbornly high interest rates, investors are being pulled in every direction.

But if you understand how to invest during turbulent periods, chaos becomes less of a threat and more of a signal.

Focus on stability first

When uncertainty rises, defensive stocks tend to stand out.

These are companies that provide essential services people rely on regardless of economic conditions. Demand doesn’t vanish when growth slows.

For example, Transurban Group (ASX: TCL) operates major toll roads across Australia and the US. Traffic levels may fluctuate, but the business benefits from long-term contracts and essential infrastructure usage.

This is a key lesson in how to invest during volatile periods: defensive shares won’t always deliver explosive gains, but they can help stabilise portfolio performance when markets become unpredictable.

Back quality businesses

Volatility also helps separate strong companies from weak ones.

Lower-quality businesses often struggle when conditions tighten, while high-quality companies tend to prove their resilience.

This is where it pays to focus on firms with clear competitive advantages, whether that’s strong brands, dominant market positions or irreplaceable assets.

BHP Group Ltd (ASX: BHP) is one example of a large, diversified ASX business with scale advantages, strong cash generation and global demand exposure. Balance sheet strength also matters. Companies with manageable debt and consistent cash flow have more flexibility to invest through downturns rather than retreat from them.

Earnings reliability is another key filter. Businesses that can generate steady profits over time tend to experience less extreme share price swings.

In uncertain environments, quality often outperforms.

Use ASX ETFs to reduce risk

For investors unsure how to invest in individual stocks during volatile markets, ETFs offer a practical alternative. They provide instant diversification across sectors, reducing the impact of any single company or market shock.

Income-focused ETFs can also help smooth returns. The Vanguard Australian Shares High Yield ETF (ASX: VHY), for instance, is heavily weighted toward dividends from banks, miners and energy companies.

Bond ETFs add another layer of stability. The iShares Core Composite Bond ETF (ASX: IAF) invests across Australian government and corporate bonds, typically providing more defensive characteristics and regular income.

Blending equities with income and fixed income exposure is often a core principle in how to invest for smoother long-term returns.

Keep investing through the noise

Trying to time markets during periods of volatility is extremely difficult, even for professionals.

That’s why dollar-cost averaging is such a powerful tool. Rather than investing a lump sum at once, you invest regularly over time. This means you automatically buy more when prices are lower and less when they are higher, without needing to predict market turning points.

It’s simple, disciplined and removes emotional decision-making. Just as importantly, it keeps investors engaged in the market during uncertain periods. This is critical, because missing the recovery often hurts more than enduring the downturn.

The post How to invest during market chaos and volatility appeared first on The Motley Fool Australia.

More reading

• BHP shares vs Woodside shares: Which is the better buy?
• My simple investing strategy if I had to start over
• These ASX dividend shares could power your retirement income
• 3 ASX 200 shares I’d buy and hold through any market cycle
• How to build passive income with ASX shares in 3 easy steps

Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Transurban Group. The Motley Fool Australia has recommended BHP Group and 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.

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

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

CSL Ltd (ASX: CSL)

According to a note out of Morgans, its analysts have retained their buy rating on this biotech giant’s shares with a reduced price target of $147.59. Morgans notes that CSL has downgraded its guidance for FY 2026 due to China Albumin price pressure, US immunoglobulin channel inventory normalisation, and other impacts. While this is disappointing, the broker highlights that the issues are being framed as primarily executional rather than structural, with infrastructure overbuild, organisational complexity, and weak commercial execution cited. In light of this and with underlying demand and industry structure remaining healthy, Morgans thinks it is worth sticking with CSL and sees significant value in its shares at current levels. The CSL share price ended the week at $97.96.

REA Group Ltd (ASX: REA)

A note out of Bell Potter reveals that its analysts have retained their buy rating on this property listings company’s shares with an increased price target of $217.00. Bell Potter was pleased with REA Group’s performance in the third quarter, noting that it delivered a resilient result. This was thanks largely to strong performances in the key Melbourne and Sydney markets. And while Bell Potter recognises the potential for disruption, it believes the earnings multiple compression is overdone. This is especially the case considering that REA Group’s moat lies in decades of property, customer and buyer intent data, as well as an inherent network effect via an established and highly engaged audience. The REA Group share price was fetching $162.01 at Friday’s close.

Xero Ltd (ASX: XRO)

Analysts at Macquarie have retained their buy rating on this cloud accounting platform provider’s shares with an improved price target of $235.80. According to the note, the broker thought Xero’s performance in FY 2026 was strong and was pleased with its accelerating growth in the key US market. Looking ahead, Macquarie sees potential for significant operating leverage as revenue scales across a largely fixed cost base. And while AI disruption concerns are lingering, the broker believes Xero’s proprietary customer data and ecosystem integration positions it well for the future. The Xero share price ended the week at $79.67.

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

More reading

• 3 excellent ASX ETFs to buy and hold for 10 years
• 3 ASX tech shares I’d buy with $20,000
• These ASX 200 shares could rise 20% to 40%
• My simple investing strategy if I had to start over
• Buy, hold, sell: CBA, CSL, and Life360 shares

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

A decade is a useful time frame for investing in exchange traded funds (ETFs).

It is long enough for powerful themes to develop, but also long enough for short-term market noise to fade in importance.

That makes it worth focusing on ETFs with clear strategies, broad opportunity sets, and exposure to areas of the market that can keep growing over time.

Here are three ASX ETFs that could be worth buying and holding for the next 10 years.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The first ASX ETF to look at is the VanEck Morningstar Wide Moat ETF.

This fund is built around companies that have durable competitive advantages. That might come from strong brands, cost advantages, network effects, patents, or customer switching costs.

The extra layer is valuation. This ETF does not simply buy quality businesses at any price. It aims to hold companies that are trading at attractive levels relative to analysts’ assessment of fair value.

For investors who want exposure to quality US companies with a valuation discipline, the VanEck Morningstar Wide Moat ETF offers an easy way to do it.

Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

Another ASX ETF that could be a strong performer over the next decade is the Betashares Global Robotics and Artificial Intelligence ETF.

Automation is becoming more important across factories, hospitals, warehouses, energy systems, and logistics networks. It is being driven by labour shortages, rising costs, and the need for greater efficiency.

This bodes well for the Betashares Global Robotics and Artificial Intelligence ETF. That’s because it provides exposure to companies involved in robotics, artificial intelligence, automation, and related technologies. It was recently recommended by analysts at Betashares.

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

A third ASX ETF worth considering is the Betashares S&P/ASX Australian Technology ETF.

It gives investors access to the local technology sector, which is very different from the old image of the ASX as just banks and miners.

The fund holds Australian technology companies involved in software, digital platforms, data centres, payments, and healthcare technology. This includes Xero Ltd (ASX: XRO), NextDC Ltd (ASX: NXT), and WiseTech Global Ltd (ASX: WTC).

And with many tech shares, as well as this ASX ETF, down heavily over the past 12 months, now could be a good time to consider a long-term position in the fund. It was also recently recommended by the team at Betashares.

The post 3 excellent ASX ETFs to buy and hold for 10 years appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• 3 ASX tech shares I’d buy with $20,000
• These ASX 200 shares could rise 20% to 40%
• These under-the-radar ASX AI shares are starting to turn heads
• My simple investing strategy if I had to start over

Motley Fool contributor James Mickleboro has positions in Nextdc, VanEck Morningstar Wide Moat ETF, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Commonwealth Bank of Australia Ltd (ASX: CBA) had a bit of a shocker of a week, tumbling heavily after the bank released its third-quarter results.

Shareholders are now marginally in the red if they’ve held the shares for a year, while this week’s falls should be kept in context – the shares have just given back all of the gains they made from about mid-February.

The key thing for shareholders, though, is where the shares will go from here, and if you’re asking the analysts, the news isn’t good.

Results didn’t impress

Firstly, let’s have a look at what CBA announced on Wednesday.

The bank said it had generated cash net profit after tax of about $2.7 billion, down 1% on the quarterly average across the first half and up 4% on the previous corresponding quarter.

Operating income was flat, “with the benefit of lending and deposit volume growth offsetting the impact of two fewer days. Underlying net interest margin was broadly stable excluding non-recurring tailwinds”.

CBA said its loan impairment expense was $316 million, “with higher collective provisions reflecting heightened geopolitical and macroeconomic uncertainty”.

Analysts say there’s further to fall

Having a look at what the analysts are saying, the team at Macquarie said the CBA results reflect a trend of revenues weakening across the sector.

They added:

CBA’s 3Q26 trading update was a slight miss to consensus expectations, driven by weaker revenues and a provisioning top-up. Stepping back, our key takeaway from May results has been a clear deterioration of revenue trends across the sector, with quarter on quarter revenue falling 3%. While CBA has marginally outperformed peers, trends were still weaker, with underlying revenue ~flat. With downside risk to earnings and a more challenging macro backdrop, we maintain Underperform.

Macquarie has a price target of $114 on CBA shares.

The analysts at Morgans also believe CBA shares have further to fall, with a price target of $119.40 on the shares and a sell recommendation.

The Morgans team said:

As well as being Australia’s largest bank, compared to its peers CBA has the highest return on equity, lowest cost of capital, leading technology, largest position in the residential mortgage market (with the lowest risk portfolio in this low risk market segment) and largest low cost deposit base (with a greater skew to households and transaction accounts than its peers), and a loyal retail investor and customer base. However, we believe potential medium-term returns are too compressed at current prices considering CBA’s elevated trading multiples.

The team at UBS is not quite as downbeat at the prospect for CBA shares, with a price target of $130, still well south of where the shares are currently at.

And finally, Jarden has the lowest price target on the shares of $90.

The Jarden team notes that CBA has the most to lose from the changes to negative gearing in the Federal Budget announced during the week.

The Jarden team said:

CBA appears quite vulnerable to the negative gearing changes for investor home loans, a space it dominates where loans are typically interest only, wider spread and better asset quality underpinning a superior return on equity.

The post How low could CBA shares go? 4 brokers have their say appeared first on The Motley Fool Australia.

More reading

• How to build a passive income stream with ASX shares
• Down 9% this week, are CBA shares entering ‘a major correction cycle’?
• Buy, hold, sell: CBA, CSL, and Life360 shares
• CGT tax changes may encourage investors into ASX dividend shares: Expert
• What are the pros and cons of buying CBA shares in May?

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

The Macquarie Group Ltd (ASX: MQG) share price has been a strong performer since COVID-19, significantly outperforming the S&P/ASX 200 Index (ASX: XJO).

As the above chart shows, at the time of writing, the ASX 200 has rise 23% in the last five years while Macquarie shares have increased by 54%. In other words, Macquarie’s capital growth has been more than double that of the ASX 200.

Not many ASX blue-chip shares have outperformed the ASX 200 as much as that over the last five years. Let’s look at what a difference that has made with $10,000.

$10,000 investment difference

Five years ago, as the world was still dealing with the effects of COVID-19, the Macquarie share price was sitting in the $150s. With $10,000, an investor could have bought 63 Macquarie shares.

Today, with $10,000, an investor can buy 40 Macquarie shares.

Why has the Macquarie share price performed so well?

If I’d looked at the five-year performance in March 2026, the return would not be as impressive.

The ASX financial share has recovered following initial weakness surrounding the Middle East conflict. In fact, the energy price volatility may have helped the commodities and global markets (CGM) segment generate stronger profits.

The latest update from the business – which is currently the biggest influence on the Macquarie share price – was the FY26 result.

FY26 net profit grew 30% to $4.85 billion, and the second-half net profit increased by 93% year over year.

Looking at the operating performance of its individual segments, CGM saw FY26 net profit jump 49% to $4.2 billion. This profit saw a higher asset finance contribution following the gain on the sale of the OnStream meters platform, while the commodities contribution was higher due to increased risk management income from client hedging activity across global gas and power and the global oil businesses.

Macquarie Asset Management’s (MAM) net profit grew 27% to $2.6 billion, primarily driven by higher performance fees.

Banking and financial services (BFS) net profit rose 17% to $1.6 billion, with growth in both the loan portfolio and BFS deposits.

Macquarie Capital – the investment banking division – achieved 43% profit growth to $1.49 billion thanks to higher income from equity investments, merger and acquisition fees, brokerage, and the private credit portfolio.

Time will tell how the business performs from here, but its current profit generation is going very well.

The post 5 years ago, $10,000 bought 63 Macquarie shares. But how many would it buy now? appeared first on The Motley Fool Australia.

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• Buy, hold, sell: CSL, Macquarie, and REA Group shares

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

Most Australians would like to build a passive income stream. After all, what’s not to like about getting money without having to exchange time for it? There are many potential sources of passive income available to Australians. These include traditional assets like term deposits and investment properties. But also more exotic sources of secondary income, perhaps drop shipping or owning a vending machine.

However, I still believe that the simplest, easiest and most accessible source of passive income for the average Australian is buying ASX dividend shares.

Dividend shares tick every passive income box. Most importantly, they provide a reliable source of income that is truly passive – requiring minimal ongoing time and effort once purchased. That stands in contrast to other passive income investments like property, which tend to require regular ongoing maintenance.

But buying ASX dividend shares is also simple and accessible. Any adult can do so. The only wrinkle Australians might find with dividend investing is that it does require a large amount of initial investment to get any kind of worthwhile returns.

With that in mind, let’s talk about how to build a passive income stream with ASX dividend shares.

How can you get passive income from ASX dividend shares?

To start off with, you’ll need to pick an investment. Many people just stick with blue chip stocks like Commonwealth Bank of Australia (ASX: CBA), Woolworths Group Ltd (ASX: WOW), or Telstra Group Ltd (ASX: TLS). If you buy one of these companies’ shares, you are entitled to receive whatever dividends they declare, usually at a six-month interval. The current dividend yields on these shares are in a 2-4% range. That’s $2-4 per annum for every $100 invested.

Whenever I look at an ASX dividend share, I don’t just consider the upfront yield, though. It is also important to take into account how financially sound a company is. I also like to analyse a company’s dividend history and how fast it has grown its payouts. These factors, when put together, can paint a useful picture that shows us how likely a dividend share will become a compelling passive income investment.

It’s for this reason that two of my favourite passive income investments are Washington H. Soul Pattinson and Co Ltd (ASX: SOL), and MFF Capital Investments Ltd (ASX: MFF). Both of these companies have stellar track records of raising their dividends, which you can read more about here. Both companies have given me an annual dividend by rise every year I have owned them, and I love putting this passive income to use.

Fast-tracking your second income

So step one is finding the right ASX dividend shares and buying as many shares as you can afford. But doing this alone will take a long time to build up a meaningful passive income stream. Dropping $100,000 on a 4% yielding dividend share will only get you $4,000 a year in passive income, after all.

There are a couple of things you can do to get that passive income snowball rolling faster, though. The first is to buy more shares as often as you can. This is particularly impactful if you buy those shares during a share price slump or market downturn.

The second is by reinvesting any dividends you receive back into buying more shares. That pads out your snowball and can make a real difference to your wealth over time.

Buying ASX dividend shares won’t get you a huge stream of passive income straight away, unless you drop a huge amount of cash upfront. However, with time, patience, and compounding, it can be an incredibly effective way to build wealth as well as a source of secondary income.

The post How to build a passive income stream with ASX shares appeared first on The Motley Fool Australia.

More reading

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• With no savings at 50, I’d follow Warren Buffett’s approach to build wealth
• CGT tax changes may encourage investors into ASX dividend shares: Expert
• 5 excellent ASX dividend shares to buy with $50,000

Motley Fool contributor Sebastian Bowen has positions in Mff Capital Investments and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Telstra Group, Washington H. Soul Pattinson and Company Limited, and Woolworths Group. The Motley Fool Australia has recommended Mff Capital Investments. 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) shares may be one of the most popular dividend options because of the company’s perceived stability and dividend yield.

The ASX retail share usually has a lower dividend yield than other ASX blue-chip shares, such as BHP Group Ltd (ASX: BHP), Westpac Banking Corp (ASX: WBC), and Telstra Group Ltd (ASX: TLS).

Wesfarmers has significantly increased its annual payout since the COVID-19 pandemic headwinds in 2020.

The FY26 half-year result was an example of the ASX retail share’s stability for shareholders and its ability to regularly increase its dividends.

In the HY26 result, Wesfarmers hiked its interim dividend per share by 7.4% to $1.02 after a 9.3% year-over-year increase of the underlying net profit after tax (NPAT) to $1.6 billion.

In this article, we’re going to look at the annual FY27 dividend, which will be paid in 2027.

2027 dividend projection for owners of Wesfarmers shares

According to CMC Invest’s projection, the ASX retail share is expected to pay an annual dividend per share of $2.20 in the 2027 financial year.

At the time of writing, this forecast translates into a dividend yield of 3% excluding franking credits and a grossed-up dividend yield of 4.3% including franking credits.

If someone were to invest $8,000 in Wesfarmers, they would be able to buy 110 Wesfarmers shares (with a little bit of money left over).

With those 110 Wesfarmers shares, investors could receive $242 of cash and $345.71 overall, including the franking credits.

Is this a good time to invest in the ASX retail share?

According to CMC Invest, there have been 7 analyst rating calls on the business in the last 3 months.

Of those seven, one of them was a sell, five of them were holds, and one was a buy. So, the investment professionals are largely neutral on the company’s valuation right now.

The average price target of those seven ratings is $76.64. That means, collectively, those analysts are predicting the Wesfarmers share price could rise by around 6% within the next year.

In February 2026, the Wesfarmers share price was almost as high as $90. But since then, it has fallen by close to 20%, making it much cheaper for investors to consider at a time when its key businesses (Kmart and Bunnings) could serve value-seeking customers well amid higher interest rates and stronger inflation.

For now, there seem to be more compelling ASX shares out there to buy.

The post If I invest $8,000 in Wesfarmers shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

More reading

• My simple investing strategy if I had to start over
• 3 ASX 200 shares I’d buy and hold through any market cycle
• How to build passive income with ASX shares in 3 easy steps
• I’d buy these blue-chip ASX shares with $2,000 in a heartbeat
• 3 superannuation decisions you’ll regret in retirement

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

The idea of a stock market crash is never far from investors’ minds.

And to be fair, there are plenty of reasons to be cautious right now.

There is conflict in the Middle East, which has pushed fuel prices higher and added another layer of uncertainty to the global economy. Inflation has reaccelerated, and interest rates are expected to rise further in the coming months.

At the same time, investors are debating whether artificial intelligence (AI) has created a bubble in some parts of the market. There are also concerns about AI disruption, with investors trying to work out which companies will benefit and which could be left behind.

Closer to home, some mining shares have been trading at record highs, including BHP Group Ltd (ASX: BHP), PLS Group Ltd (ASX: PLS), and Rio Tinto Ltd (ASX: RIO). Consumer spending is also weakening as cost-of-living pressures weigh on households.

So, could the ASX crash before the end of 2026?

The ingredients are there

I think the ingredients for a meaningful pullback are clearly there.

Markets do not like uncertainty, and there is plenty of it around.

Higher interest rates can put pressure on share prices because they increase borrowing costs, reduce household spending power, and make cash and term deposits more attractive.

They can also hit growth shares particularly hard because investors become less willing to pay high prices for profits that may arrive further into the future.

Then there is the AI question.

AI could create enormous value over the long term, but the market may have already priced in a lot of optimism. If investors start to question spending levels, valuations, or the earnings benefits from AI, some high-growth shares could fall quickly.

Mining shares are another area to watch. Strong commodity prices have helped support companies such as BHP, PLS Group, and Rio Tinto. But when cyclical shares trade near record highs, expectations can become harder to meet.

If commodity prices pull back, China disappoints, or investors rotate away from resources, that part of the ASX could come under pressure.

But crashes are hard to predict

The problem is that predicting crashes is incredibly difficult.

The market can look expensive and keep rising. It can look risky and still push to new highs. It can also fall sharply for reasons investors did not see coming.

That is why I do not think most investors should build their strategy around trying to forecast the next crash.

A stock market crash before the end of 2026 is possible. I would not dismiss it. But I also would not sit entirely in cash waiting for it.

For long-term investors, I think the better approach is to keep investing periodically.

That might mean buying every month, every quarter, or whenever there is spare cash available. It can also mean keeping a watchlist of high-quality ASX shares and ETFs ready for periods of weakness.

If the market keeps rising, investors are still participating.

If the market falls, they can buy at better prices.

What I would do

I would carry on as normal.

That does not mean ignoring risk. I would make sure my portfolio is diversified, avoid taking on too much debt, and hold enough cash for short-term needs.

But I would keep buying quality assets over time.

For me, that could include broad ASX exposure, global ETFs, defensive dividend shares, and high-quality growth companies that have been sold down too heavily.

A market crash can be painful while it is happening. But history shows that the share market has recovered from every major crash and gone on to reach new highs.

I do not expect the next one to be any different.

Foolish Takeaway

There is a reasonable case that the ASX could suffer a sharp fall before the end of 2026.

Inflation, interest rates, geopolitical conflict, stretched valuations, AI concerns, and pressure on consumers are all real risks.

But trying to jump in and out of the market based on crash predictions can be more damaging than the crash itself.

My plan would be simple: keep investing gradually, focus on quality, and use any major weakness as an opportunity.

If a crash comes, it comes. I would rather be prepared to buy than paralysed by the fear of it.

The post What’s the likelihood of a stock market crash before the end of 2026? appeared first on The Motley Fool Australia.

More reading

• Is this one of the best Vanguard ETFs to buy now?
• Down 9% this week, are CBA shares entering ‘a major correction cycle’?
• 3 ASX tech shares I’d buy with $20,000
• These ASX 200 shares could rise 20% to 40%
• How many Rio Tinto shares do I need to buy for $10,000 a year in passive income?

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 a number of exchange-traded funds (ETFs) on the ASX, and many of them are built around broad diversification.

But some investors may want something more targeted.

That is where the Vanguard Global Technology Index ETF (ASX: VTEK) could be worth a closer look.

This ETF gives investors exposure to some of the world’s most important technology companies. For anyone who believes technology will continue reshaping the global economy over the next decade, I think the VTEK ETF is one of the more interesting Vanguard ETFs on the ASX.

What does this Vanguard ETF own?

Its largest holdings include NVIDIA, Apple, Microsoft, Alphabet, Broadcom, Taiwan Semiconductor Manufacturing Co, Meta Platforms, ASML, and Tencent Holdings.

That is a powerful group of companies.

These businesses are exposed to some of the biggest long-term themes in the world, including artificial intelligence (AI), semiconductors, cloud computing, digital advertising, consumer technology, software, social media, and advanced manufacturing.

This essentially means the fund provides exposure to the companies building the tools, platforms, and infrastructure behind the modern digital economy.

Why I like this ETF

Technology is no longer a narrow part of the market.

It sits underneath almost everything. Businesses use cloud software to operate. Consumers use smartphones and apps every day. AI models need chips, data centres, and software. Digital advertising funds much of the internet. Semiconductor manufacturing supports everything from electric vehicles to defence systems.

This Vanguard ETF gives investors a simple way to access these trends without needing to choose a single winner.

That is important because technology investing can be difficult. Even great companies can have periods of weak performance. Valuations can rise too far. Competition can change quickly. Regulation can also become a bigger issue when companies become very large and powerful.

By owning a basket of global technology shares, investors can reduce the risk of relying too heavily on one company.

The AI angle

Artificial intelligence is probably the biggest reason many investors are looking at global technology ETFs right now.

The VTEK ETF has heavy exposure to companies that could benefit from AI adoption.

NVIDIA is central to AI chip demand. Microsoft is building AI into its software and cloud platform. Alphabet has deep AI expertise and a huge digital ecosystem. Broadcom and Taiwan Semiconductor Manufacturing are exposed to semiconductor infrastructure. Meta is using AI across advertising, content, and product development.

I think that makes this Vanguard ETF a useful option for investors who want AI exposure but do not want to bet everything on one stock.

Of course, AI enthusiasm can also create valuation risk. If expectations become too high, even strong businesses can disappoint investors in the short term.

That is why I would only buy this fund with a long-term mindset.

The risks

The VTEK ETF is not a defensive ETF.

Its holdings are concentrated in technology, and the top positions make up a large part of the portfolio. That can be positive when tech shares are rising, but it can work against investors when the sector sells off.

Higher interest rates, slower earnings growth, regulation, or a pullback in AI spending could all weigh on returns.

So, I would not use this fund as my entire portfolio. I think it works better as a growth-focused satellite holding alongside broader ETFs or other investments.

Foolish takeaway

I think the VTEK ETF could be one of the best Vanguard ETFs for investors wanting targeted exposure to global technology.

It owns many of the companies shaping the future of AI, software, semiconductors, cloud computing, and digital platforms.

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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Apple, Broadcom, Meta Platforms, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, and Tencent. The Motley Fool Australia has recommended Alphabet, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Commonwealth Bank of Australia (ASX: CBA) shares just closed out a week to forget.

On Friday, shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed the day trading for $159.40. That saw shares in Australia’s biggest bank down a painful 9.39% over the week.

This week’s sell-down also put CBA stock in the red over the full year, down 6.09% in 12 months.

Though those losses will have been partly mitigated by the $4.95 in fully-franked dividends CommBank paid eligible stockholders over this time. CBA shares trade on a 3.11% fully franked trailing dividend yield.

Why did the ASX 200 bank stock crash this week?

CBA shares closed down 10.4% on Wednesday following the release of the ASX 200 bank’s March quarter results (Q3 FY 2026).

CBA reported an unaudited quarterly cash net profit after tax (NPAT) of around $2.7 billion. While that’s a tidy figure, Q3 profits were down 1% on CBA’s first-half cash quarterly NPAT average.

Then there’s the growing uncertainty facing Australia’s economy.

“Conflict in the Middle East is disrupting critical supply chains and contributing to global uncertainty,” CBA CEO Matt Comyn said.

With the potential for increasing bad loans ahead, Comyn added, “Notwithstanding an already strong level of provisioning, we have chosen to further top up our collective provisions in the quarter to reflect heightened macroeconomic risks.”

Do CBA shares have further to fall?

Filip Tortevski, senior analyst at Wealth Within, noted that Wednesday’s biggest-ever single-day fall in CBA shares “was blamed on the latest news release, but underneath the surface, something far more serious may be unfolding”.

He said that COVID had changed everything as far as how CommBank’s shares trade.

According to Tortevski:

Since 2020, CBA’s price action has looked less like a traditional bank and more like a momentum-driven tech stock, with an aggressive surge higher that has become increasingly disconnected from the way the stock historically traded.

Tortevski pointed to similar historical patterns that saw CBA shares get walloped.

He said:

Before CBA’s two major historical corrections, the 60% collapse during the GFC and the 44% decline between 2015 and the COVID low, the stock experienced a very similar acceleration phase in the years leading up to the falls.

And he believes the current situation closely resembles these two prior topping periods.

Tortevski concluded:

That’s why this may not be just another temporary sell-off. It could be the first serious warning that CBA is entering its next major correction cycle. If history rhymes, a move back toward $95 cannot be ruled out, which would imply another potential 50% decline from the highs.

Macquarie Group Ltd (ASX: MQG) analysts aren’t quite so bearish; however, the broker lowered its price target for CBA to $114 per share.

The post Down 9% this week, are CBA shares entering ‘a major correction cycle’? appeared first on The Motley Fool Australia.

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