Author: openjargon

On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week in the red. The benchmark index fell 0.9% to 8,828.7 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set for a subdued start following weakness in European markets on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 16 points or 0.2% lower. In the United States, Wall Street was closed for a public holiday, but in Europe the DAX was down 0.15%, the FTSE fell 0.35%, and the CAC dropped 0.55%.

Oil prices rise

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a decent start to the week after oil prices pushed higher on Friday night. According to Bloomberg, the WTI crude oil price was up 0.9% to US$76.54 a barrel and the Brent crude oil price was up 0.9% to US$80.57 a barrel. However, news that Iran is blocking the Strait of Hormuz again could mean oil prices climb further when Asian trade opens.

Metcash results

Metcash Ltd (ASX: MTS) shares will be on watch today when the wholesale distributor releases its full-year results. According to a note out of UBS, its analysts are expecting the company to report EBIT of $502 million and underlying net profit after tax of $268.6 million. This is broadly in line with consensus estimates and at the low-end of management’s guidance for FY 2026. However, the market’s main focus is likely to be early trading in FY 2027, with investors looking for positive commentary from management.

Gold price tumbles

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a poor start to the week after the gold price tumbled on Friday night. According to CNBC, the gold futures price was down 1.7% to US$4,172.9 an ounce. Inflation and rate hike concerns continue to weigh on the precious metal.

Buy Life360 shares

Bell Potter has named Life360 Inc. (ASX: 360) shares as a buy this week according to The Bull. The broker stated: “Active user growth is rebounding following a technical issue, while paying circle growth, which drives revenue, recently exceeded expectations. Guidance was been upgraded. Once focus returns to paying circles, I expect a re-rating to follow.” Bell Potter has a buy rating and $33.00 price target on its shares.

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

More reading

• Healthcare shares led the ASX 200 last week. Is a sector comeback underway?
• How I’d aim for $10,000 a year in superannuation boosting passive income buying ASX shares
• At 40 how does your superannuation balance compare? It might be time for a tune up
• Here are the top 10 ASX 200 shares today
• Brokers name 3 ASX shares to buy right now

Motley Fool contributor James Mickleboro has positions in Life360 and Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

$5,000 is a meaningful amount to invest in ASX shares. But it may not be enough to build a 20-stock portfolio without ending up with tiny, brokerage-eroded positions in each.

The smarter approach with this kind of capital is to concentrate on a small number of high-conviction ideas that together provide a sensible balance of quality, value, and growth.

Here is exactly where I would put $5,000 in ASX shares right now, and why.

$2,500 in Commonwealth Bank of Australia (ASX: CBA)

The largest single allocation in my $5,000 portfolio would go to Commonwealth Bank of Australia.

CBA is Australia’s largest bank by market capitalisation, with a dominant mortgage book, the most widely used banking app in the country, and a track record of consistent, fully franked dividend growth.

In the first half of FY2026, CBA posted statutory net profit of $5.41 billion, up 5% year-on-year, alongside a fully franked interim dividend of $2.35 per share.

CBA is not the cheapest stock on the ASX, trading at approximately 26 times forward earnings, but quality of this calibre rarely comes cheap.

For a core, lower-risk allocation designed to anchor the rest of the portfolio, CBA is hard to overlook.

$1,500 in CSL Ltd (ASX: CSL)

The second allocation would go toward CSL, and this is the contrarian part of the portfolio.

CSL shares have crashed approximately 60% from their all-time high.

This has been driven by a series of earnings downgrades, plasma collection normalisation issues, and leadership uncertainty following the appointment of an interim CEO.

CSL now trades at approximately 14 times forecast FY2026 earnings, a valuation it has not traded at since before the pandemic era re-rating.

Three separate company directors have bought CSL shares on market in recent weeks, a meaningful signal of insider confidence.

This allocation carries higher risk than CBA, but the combination of an irreplaceable global market position and a deeply discounted valuation makes it worth a smaller, dedicated position.

$1,000 in the Betashares Nasdaq 100 ETF (ASX: NDQ)

The final allocation would go toward the Betashares Nasdaq 100 ETF, giving the portfolio geographic and sector diversification beyond the ASX.

NDQ ETF provides exposure to 100 of the largest non-financial companies listed on the Nasdaq. This includes the world’s dominant technology and AI infrastructure businesses.

Concentrating an entire $5,000 portfolio in ASX-listed financials and healthcare would leave it with almost no exposure to global technology leadership, a gap NDQ closes in a single, low-cost trade.

Why this $5,000 allocation makes sense as a whole

The logic behind this $5,000 split is straightforward.

Half the portfolio sits in a high-quality, lower-risk Australian blue chip.

Thirty percent sits in a contrarian, deeply discounted opportunity with real turnaround potential.

Twenty percent sits in global diversification through an ETF, reducing the portfolio’s total reliance on the Australian market and the Australian dollar.

That mix balances conviction with prudence, which is exactly the balance a $5,000 portfolio needs to strike.

The risks worth acknowledging

This is a concentrated portfolio, and concentration cuts both ways.

If CSL’s earnings recovery disappoints further, that position could remain under pressure for some time.

If CBA’s premium valuation compresses due to a credit quality deterioration, the core holding could underperform the broader market.

Diversifying further across more individual stocks would reduce that concentration risk. This is at the cost of diluting conviction in the highest-quality ideas.

Foolish takeaway

$5,000 split across CBA, CSL, and NDQ gives an investor a genuine combination of quality, contrarian value, and global diversification.

It is not the only sensible way to deploy this amount of capital, but it reflects where I see the best risk-adjusted opportunities on the ASX.

The post Here’s where I would invest $5,000 in ASX shares appeared first on The Motley Fool Australia.

More reading

• 4 ASX ETFs to help you sleep through market crashes
• Buy, hold, sell: CSL, Steadfast, and Wesfarmers shares
• How to know when a beaten-down ASX share is worth buying
• Healthcare shares led the ASX 200 last week. Is a sector comeback underway?
• If I invest $8,000 in CSL shares, how much passive income will I receive in 2027?

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

WiseTech Global Ltd (ASX: WTC) shares have gone from one of the ASX’s most highly rated technology darlings to one of its most heavily sold-off growth stocks.

Over the past 12 months, WiseTech shares have fallen around 65%, wiping out years of investor optimism and re-rating the company from market favourite to deep-value turnaround candidate.

The question now is whether the market has punished the stock too severely.

From market darling to laggard

Not long ago, WiseTech was priced as one of the ASX’s premier technology companies.

Investors were willing to pay a significant premium for its global growth story, deeply embedded customer relationships, and exposure to the enormous logistics and freight forwarding industry.

At the centre of that story is CargoWise, the company’s flagship software platform.

CargoWise is essentially the operating system for global logistics companies. It helps freight forwarders, customs brokers, and supply chain operators manage shipments, documentation, compliance, and tracking in one integrated platform.

Once embedded, it becomes extremely difficult and costly for customers to replace. That sticky customer base and mission-critical functionality were key reasons WiseTech shares commanded such a high valuation in the past.

But that premium has now evaporated.

What went wrong?

A combination of concerns has driven the sharp sell-off of WiseTech shares.

Investors have reassessed WiseTech’s valuation, questioned execution consistency, and become more cautious about leadership stability and governance.

At the same time, the rise of artificial intelligence has sparked debate about whether traditional enterprise software models face longer-term disruption risk.

When a high-growth stock loses investor confidence, the re-rating can be brutal. WiseTech is a clear example of that dynamic.

Is the sell-off over the top?

Despite the steep decline of WiseTech shares, the underlying business has not disappeared.

CargoWise remains deeply embedded across global logistics networks and continues to generate recurring revenue from a large and diversified customer base. As global trade grows more complex, demand for efficient supply chain software is unlikely to disappear.

In fact, WiseTech’s long-term opportunity remains tied to the ongoing digitisation of global logistics, a process still far from complete.

However, restoring investor confidence will take time. Investors will watch execution, leadership clarity, and sustained product innovation closely over the next several quarters.

What do analysts think?

Despite recent weakness, some brokers believe WiseTech shares have been oversold.

Bell Potter continues to rate the stock as a buy, although it has lowered its 12-month price target from $78.75 to $71.75. Based on the current share price of $36.88, this still implies potential upside of around 95%.

Macquarie is even more optimistic. The broker maintains an outperform rating and has set a $97.70 price target, suggesting potential upside of almost 165% over the next year.

Foolish takeaway

WiseTech seems to be caught between a damaged sentiment cycle and a still-strong underlying business model.

If execution stabilises and confidence returns, the scale of the sell-off could eventually look excessive. But for now, the market remains focused on proof rather than promises.

The post Is the only way up for WiseTech shares after a 65% fall? appeared first on The Motley Fool Australia.

More reading

• How to know when a beaten-down ASX share is worth buying
• Why WiseTech shares could rise 95% to 165%
• If the ASX 200 rallies in the back half of the year these sectors could be portfolio winners
• Do WiseTech Global shares have a moat?
• Down 65%+, why I’d buy and hold these ASX shares

Motley Fool contributor Marc Van Dinther has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares rose 0.3% last week after the US and Iran agreed to an interim peace deal.

In 2026, ASX 200 shares have managed just a 1.1% rise after the unexpected global oil shock made investors very nervous.

However, experts are confident of strong growth ahead for a few select ASX stocks.

Let’s take a look at some examples.

Droneshield Ltd (ASX: DRO)

The Droneshield share price closed steady at $2.74 on Friday.

Over the past month, this ASX 200 industrials share has fallen 7%.

Canaccord Genuity renewed its buy rating on Droneshield shares last week.

The broker has a 12-month price target of $3.75.

This suggests a potential 40% upside ahead.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price finished at $11.92, down 1.6%, on Friday.

This ASX 200 travel share has ripped 19% over the past month.

Morgan Stanley reiterated its buy rating on Flight Centre shares with a price target of $16.

This implies potential capital gains of 34% ahead.

Seek Ltd (ASX: SEK)

The Seek share price closed 2.2% higher at $13.63 on Friday.

Over the past six months, this ASX 200 communications share has fallen 41%.

Citi reaffirmed its buy rating on Seek shares with a 12-month target of $24.15.

This suggests a potential near-80% upside ahead.

Turalco Gold Ltd (ASX: TCG)

Turalco Gold shares closed out the week at 55 cents apiece.

This ASX gold share has fallen 33% over six months.

Canaccord Genuity renewed its buy rating on Turalco Gold shares with a $1.75 target.

This implies potential capital growth of 220% over the next year.

IDP Education Ltd (ASX: IEL)

The IDP Education share price closed 6.7% higher at $2.56 on Friday.

Over the past six months, this ASX consumer discretionary share has tumbled 56%.

The language testing and international student placement provider was officially kicked out of the ASX 200 today.

UBS renewed its buy rating on IDP Education shares with a $5.15 target.

This suggests a potential 103% upside ahead.

Credit Corp Group Ltd (ASX: CCP)

The Credit Corp share price closed 0.9% higher at $13.07 on Friday.

This ASX financial share share has lifted 13% over the past four weeks.

Canaccord Genuity reiterated its buy rating on Credit Corp shares with a price target of $19.70.

This implies a potential 51% upside ahead.

Brazilian Rare Earths Ltd (ASX: BRE)

The Brazilian Rare Earths share price finished at $4.91, down 5%, on Friday.

Over the past month, this ASX rare earths share has fallen 16%.

Ord Minnett renewed its buy rating on Brazilian Rare Earths shares last week.

The broker has a 12-month price target of $6.95.

This suggests a potential 45% upside ahead.

Resmed CDI (ASX: RMD)

The Resmed share price closed 0.7% higher at $26.68 on Friday.

Over the past six months, this ASX 200 healthcare share has lost 27% of its valuation.

Citi renewed its buy rating on Resmed shares with a $38 target.

This suggests a potential 42% upside ahead.

The post 8 ASX shares with 30% to 220% upside ahead: Experts appeared first on The Motley Fool Australia.

More reading

• Healthcare shares led the ASX 200 last week. Is a sector comeback underway?
• Top brokers name 3 ASX shares to buy next week
• How to build a $1 million ASX share portfolio for retirement
• Here are the top 10 ASX 200 shares today
• Brokers name 3 ASX shares to buy right now

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen 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 DroneShield and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX ETFs can form the backbone of a resilient portfolio designed to withstand market crashes and long-term volatility.

Market downturns are inevitable. The challenge for investors isn’t avoiding them entirely but building a portfolio that can withstand the volatility and keep compounding over time.

One approach is to combine broad Australian shares, global equities, currency protection, and defensive fixed income assets.

Here’s an example of a diversified four-ETF portfolio designed to help investors sleep a little easier when markets become turbulent.

Vanguard Australian Shares Index ETF (ASX: VAS)

This popular Vanguard ASX ETF provides exposure to around 300 of Australia’s largest listed companies for a management fee of 0.07% per annum.

Its two largest holdings are typically Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP), giving investors exposure to both the financial and resources sectors.

VAS forms the foundation of the portfolio with a 40% weighting. Australian shares have historically delivered attractive dividend income and franked distributions, making them particularly appealing for local investors.

The ASX ETF’s role is to provide long-term growth and income while maintaining exposure to Australia’s strongest businesses.

BetaShares Global Shares ETF (ASX: BGBL)

A portfolio focused solely on Australia risks missing opportunities overseas. That’s where BGBL comes in.

The ASX ETF tracks a broad index of developed-market shares and charges a management fee of just 0.08%.

Its largest holdings include NVIDIA Corp (NASDAQ: NVDA) and Microsoft Corp (NASDAQ: MSFT), two companies benefiting from powerful long-term trends such as artificial intelligence and cloud computing.

A 30% allocation provides global diversification and reduces reliance on the Australian economy.

The ETF’s role is to drive capital growth through exposure to thousands of leading businesses across North America, Europe, and Asia.

Vanguard MSCI Index International Shares (Hedged) ETF (ASX: VGAD)

This ASX ETF complements BGBL by providing international share exposure while hedging foreign currency fluctuations back into Australian dollars.

The ETF charges a management fee of 0.21% and also has significant exposure to global giants such as Microsoft and Apple Inc (NASDAQ: AAPL).

A 15% allocation helps reduce the impact of sharp currency movements, which can sometimes add volatility during uncertain periods.

Its role is to provide global growth exposure while smoothing returns for Australian investors who prefer less foreign exchange risk.

iShares Core Composite Bond ETF (ASX: IAF)

No sleep-well portfolio would be complete without a defensive allocation.

The iShares Core Composite Bond ETF invests in a diversified portfolio of Australian government and investment-grade corporate bonds for a management fee of 0.10%.

Its largest exposures are typically Australian Commonwealth Government bonds and state government securities.

While bonds generally won’t match shares for long-term returns, they can provide valuable stability when equity markets come under pressure.

A 15% allocation to this ASX ETF acts as the portfolio’s shock absorber, helping reduce overall volatility and providing liquidity during market sell-offs.

A portfolio built for all seasons

With 70% allocated to growth assets, 15% to currency-hedged international shares, and 15% to bonds, this portfolio balances growth and defence.

No portfolio is immune from market crashes. However, combining these four ASX ETFs could help investors stay invested through the inevitable ups and downs that accompany long-term wealth creation.

The post 4 ASX ETFs to help you sleep through market crashes appeared first on The Motley Fool Australia.

More reading

• Here’s where I would invest $5,000 in ASX shares
• 10 amazing ASX ETFs for the next decade
• Invested in ASX 200 bank shares for dividends? This fundie prefers other stocks
• Close to retirement? 4 ASX shares for decades of income
• 5 ASX 200 shares I would buy if I were starting from scratch

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 Apple, Microsoft, and Nvidia. The Motley Fool Australia has recommended Apple, BHP Group, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The rare earths boom has created some extraordinary winners on the ASX. But few can match the performance of little-known ASX mining stock Sunrise Energy Metals Ltd (ASX: SRL).

The strategic minerals developer has seen its share price explode more than 2,300% over the past 12 months as investors piled into companies with exposure to critical minerals and alternative supply chains.

So, how much would a $5,000 investment in this ASX mining stock made a year ago be worth today?

A life-changing return

Any investor who put $5,000 into Sunrise Energy Metals shares on 22 June last year would have plenty to celebrate.

At the time of writing, the ASX mining stock is changing hands at $17.55 each. That represents a staggering gain of approximately 2,304% over the past year.

As a result, a $5,000 investment made 12 months ago would now be worth around $115,200.

That’s the kind of return most investors only dream about.

Of course, gains of this magnitude are rare and typically reflect a dramatic change in market expectations about a company’s future prospects.

Why investors are excited

This $2.75 billion ASX mining stock sits at the centre of an emerging opportunity involving scandium, one of the world’s rarest and most strategically important metals.

Scandium is classified as a rare earth element and is prized for its ability to strengthen aluminium while improving flexibility, heat resistance, and corrosion resistance. These properties make it valuable for aerospace applications, defence technologies, fuel cells, and next-generation semiconductor manufacturing.

Australia holds one of the world’s highest concentrations of scandium resources. Importantly, New South Wales is believed to be the only region globally where scandium could potentially be mined as a primary commodity.

That has placed Sunrise Energy firmly on investors’ radar.

Earlier this year, Beijing introduced export controls on scandium and several other rare earth elements, raising concerns about future supply availability across Western markets. As governments and manufacturers seek alternative sources, attention has increasingly turned toward projects outside China.

The Syerston opportunity

At the heart of Sunrise Energy’s investment case is its Syerston project in New South Wales.

The company believes the project hosts one of the world’s largest and highest-grade scandium deposits.

If successfully developed, Syerston could become a major low-cost supplier of scandium to Western economies. Management’s vision includes a standalone mine and processing facility capable of supplying material for 5G and 6G semiconductor chips, fuel cells, and advanced aluminium alloys used in both civilian and military applications.

This strategic positioning helps explain why the market has become increasingly optimistic about the future of the ASX mining stock.

Buy, hold, or sell?

Despite the remarkable share price performance, analyst coverage remains limited.

According to TradingView data, only one broker currently covers the ASX mining stock. Encouragingly, that broker has assigned Sunrise Energy a strong buy rating and a $20.00 price target.

Based on the current share price of $17.55, that suggests potential upside of approximately 14%.

The key risk is execution. Sunrise Energy still needs to successfully finance, develop, and commercialise its flagship project. However, if demand for critical minerals continues growing and the company delivers on its plans, investors clearly believe there could be more gains ahead.

The post This ASX mining stock turned $5,000 into an absolute fortune appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Here’s where I would invest $5,000 in ASX shares
• Is the only way up for WiseTech shares after a 65% fall?
• 8 ASX shares with 30% to 220% upside ahead: Experts
• 4 ASX ETFs to help you sleep through market crashes

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

The team at Ord Minnett has been busy running the rule over a number of big-name ASX 200 shares recently.

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

CSL Ltd (ASX: CSL)

Ord Minnett continues to rate CSL shares as a hold with a $117.00 price target. This is largely in line with its current share price of $116.32.

The broker believes the market is underestimating the challenges that its CSL Vifor business is facing and is expecting earnings below consensus estimates. It explains:

Ord Minnett has reviewed its CSL (CSL) model further with a focus on its Vifor nephrology business that is facing challenges which, in our view, are being underestimated by the broader market. Our estimates for Vifor revenue and operating profit in FY27 are below consensus estimates by 15% and 32%, respectively, while our forecasts for operating profit across the FY27–FY29 horizon are more than 10% below market expectations.

Our target price on CSL is unchanged at $117.00 post this latest review. Despite the apparent significant upside [previously] on offer, Ord Minnett maintains its Hold recommendation on the stock given the significant uncertainty around the earnings outlook and broader issues as management attempts to reset the business.

Steadfast Group Ltd (ASX: SDF)

Takeover target Steadfast has been given a hold rating and $6.00 price target by Ord Minnett. This compares to its current share price of $5.15.

It notes that the insurance broker recently received a takeover bid of $6.00 per share from a consortium led by American wholesale insurance distributor Amwins. Ord Minnett believes that this may be the best the shareholders get. It said:

Absent the current bid, the chances of realising a value for the company of $6.00 a share any time soon would appear remote, even if that price is towards the bottom end of its historical trading range. We make no changes to our EPS estimates but raise our target price to $6.00 from $5.55 and lower our recommendation to Hold from Buy.

Wesfarmers Ltd (ASX: WES)

Finally, Ord Minnett has also put a hold rating on Wesfarmers shares with a price target of $75.00. This is below its current share price of $85.76.

It was pleased with its strategy day presentation, but believes its shares are fully valued based on a sum of the parts valuation. It commented:

Wesfarmers (WES) delivered a well-received presentation at its strategy day where the retail and industrial conglomerate laid out how plans to exploit AI and leverage its data to accelerate its long-term sales and earnings growth at its key Bunnings, Kmart, and Officeworks businesses.

Post the strategy day, we have made minor changes to our EPS estimates to incorporate Officeworks transformation costs, a lower contracted price and reduced spodumene concentrate price for the Covalent lithium arm, and currency impacts. Overall, this drives reductions in our EPS forecasts of 0.2%, 1.2% and 0.8% over FY26, FY27 and FY28, respectively. We raise our sum-of-the-parts (SOTP)-derived target price on Wesfarmers to $75.00 from $70.00 to factor in higher earnings multiples but reiterate our Hold recommendation on valuation grounds.

The post Buy, hold, sell: CSL, Steadfast, and Wesfarmers shares appeared first on The Motley Fool Australia.

More reading

• How to know when a beaten-down ASX share is worth buying
• Healthcare shares led the ASX 200 last week. Is a sector comeback underway?
• If I invest $8,000 in CSL shares, how much passive income will I receive in 2027?
• New to investing? 3 ASX shares to set and forget until 2036
• The bull and bear case for CSL shares

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

If I were investing $250 a week in ASX shares, I would not be looking for income just yet.

Income can come later. At this stage in my life, I would be trying to build wealth.

I would want quality, diversification, and growth. I would also want a structure that is easy to keep adding to, because the habit of investing every week could end up being just as important as the individual shares I choose.

Here is how I would approach it.

I’d start with ETFs

The first thing I would do is build a base with exchange-traded funds (ETFs).

ETFs can give a portfolio instant diversification. That is useful when starting out because it reduces the pressure to find the perfect individual ASX share straight away.

I would want exposure to global businesses, not just the Australian market. One option could be the Vanguard MSCI Index International Shares ETF (ASX: VGS), which gives investors access to a broad spread of large companies across developed markets.

Another option could be the iShares S&P 500 AUD ETF (ASX: IVV), which focuses on the largest listed companies in the United States. This can provide exposure to global leaders in technology, healthcare, consumer goods, financials, and other major sectors.

The point is not that these are the only ETFs to consider. The point is that I want the portfolio’s foundation to be broad, simple, and capable of compounding over many years.

Once that base is in place, I think the rest becomes easier.

Then I’d add quality ASX shares

After building that ETF foundation, I would start adding individual ASX shares.

This is where I would be selective. I would want businesses with strong competitive positions, clear growth options, and the ability to reinvest for the future.

TechnologyOne Ltd (ASX: TNE) is the kind of ASX 200 share I would consider. Its software is used by organisations that need core systems to keep operating properly. That can make the business sticky, especially as more customers shift to software-as-a-service products.

Hub24 Ltd (ASX: HUB) is another example. Australia has a large pool of wealth, and financial advisers need better platforms to manage portfolios, reporting, and client administration. If Hub24 keeps winning market share, I think it could remain a strong long-term compounder.

I would also look at businesses such as Aristocrat Leisure Ltd (ASX: ALL). It has a global scale, strong intellectual property, and a long history of investing in gaming content and technology. That gives it a different growth profile from many traditional ASX shares.

These are examples rather than a fixed shopping list. The broader idea is that I would use individual shares to add quality growth on top of the ETF base.

What could $250 a week become?

The numbers can become surprisingly large over time.

Investing $250 a week means putting $13,000 a year.

If my portfolio achieved an average annual return of 9%, it could grow to around $700,000 after 20 years.

That is not guaranteed. Returns will move around, and there will be difficult years. But it shows why consistency can be so valuable.

A weekly investment that feels manageable today could become a very serious portfolio in the future.

Foolish Takeaway

If I were investing $250 a week in ASX shares, I would begin with ETFs, then add high-quality individual companies once the foundation was in place.

I would focus on wealth-building rather than income and reinvest along the way.

The aim would not be to make the portfolio exciting. It would be to make it durable, diversified, and capable of compounding for years.

That is how I would try to turn a simple weekly habit into a meaningful long-term ASX share portfolio.

The post How I’d invest $250 a week in ASX shares to aim for $700,000 appeared first on The Motley Fool Australia.

More reading

• The perfect ASX ETF retirement portfolio alongside your super
• 10 amazing ASX ETFs for the next decade
• How to build an ASX share portfolio that can survive a market selloff
• 5 ASX 200 shares I would buy if I were starting from scratch
• How I’d choose the best ASX shares I could hold for 10 years

Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24, Technology One, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Hub24, Technology One, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Owning ANZ Group Holdings Ltd (ASX: ANZ) shares has been a typical ASX blue-chip share pick for investors who want passive income.

The ASX bank share usually trades on a relatively low price/earnings (P/E) ratio valuation and has a fairly generous dividend payout ratio.

ANZ has a lot of competition in the banking space. On the ASX alone there’s a long list of names competing with ANZ including Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), Macquarie Group Ltd (ASX: MQG), Bank of Queensland Ltd (ASX: BOQ), Bendigo and Adelaide Bank Ltd (ASX: BEN), MyState Ltd (ASX: MYS) and Pepper Money Ltd (ASX: PPM).

Despite that, the bank still makes billions of dollars of profit each year, which funds the company’s solid dividend.

For an investor who wants $10,000 of annual passive income, let’s take a look at what level of passive income ANZ is projected to pay in FY26.

ASX bank share dividend forecast

ANZ’s financial year runs to September, so we’re close to three-quarters of the way through the 2026 financial year. It’ll be a few months until we find out about the annual result and what the profit figures could be.

Analysts have forecast what the ASX bank share may be able to deliver.

According to the projection on Commsec, the ASX bank share could pay an annual dividend per ANZ share of $1.68 in FY26.

At the time of writing, this translates into a dividend yield of 4.8%, excluding franking credits.

That means, to generate $10,000 of annual passive income from ANZ in FY26, an investors would need 5,953 ANZ shares to receive that much in dividends.

Pleasingly for shareholders, the bank is projected to see a rise in its dividend per share of 2.4% in FY27 to $1.72. If we focus on this forecast amount, an investor would only need 5,814 ANZ shares for $10,000 of annual passive income, excluding franking credits.

Is this a good time to invest in ANZ shares?

When there’s a lot of competitors in an industry, it’s normal to see profit margins being challenged. Given how quickly Macquarie is growing, it’s possible that ANZ’s market share could decline in the coming years, unless it can change the trend.

According to Commsec’s collation of analyst opinions on the business, there are currently six buy ratings, eight hold ratings and two sell ratings.

It seems analysts are a bit more positive than negative on the ASX bank share right now, but I think there are better opportunities out there today that could grow earnings more in the long-term.

The post How many ANZ shares do I need to buy for $10,000 of passive income? appeared first on The Motley Fool Australia.

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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 Bendigo And Adelaide Bank. The Motley Fool Australia 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.

A falling share price can make any ASX share look tempting.

After all, investors like buying things on sale. If a company was popular at a much higher price, it can feel logical to assume that a big decline has created a bargain.

That can be true, although it takes more work than simply looking at how far the share price has fallen.

The best opportunities usually appear when the market has become too pessimistic about a business that still has strong long-term prospects.

Here is how investors can think through it.

Understand why the share price has fallen

The first step is to understand the reason behind the fall.

A share price can decline because the whole market is weak, investors have lost patience with growth shares, interest rates have moved higher, or the company itself has disappointed.

Those are very different situations.

A high-quality business caught in a broad market selloff may deserve a different response from a company that has repeatedly missed guidance, lost market share, or taken on too much debt.

This is where investors need to separate sentiment from substance.

If the share price has fallen while the company’s competitive position, balance sheet, and long-term opportunity remain largely intact, the selloff may be worth investigating more closely.

Look for signs the business still has a future

A beaten-down share becomes more interesting when the company still solves an important problem or owns assets that should remain valuable over time.

WiseTech Global Ltd (ASX: WTC), for example, sells software into the global logistics industry, where freight forwarders and supply chain operators need better systems to manage complexity.

Treasury Wine Estates Ltd (ASX: TWE) gives investors exposure to a portfolio of wine brands, global distribution channels, and the premiumisation of consumer tastes across key markets.

CSL Ltd (ASX: CSL) operates in healthcare markets where demand is driven by medical need rather than fashion or short-term consumer trends.

The key is to ask whether customers are still likely to need what the company provides in five or ten years.

A lower share price is more useful when the business still has a long runway.

Check the financial foundations

A company can have an exciting story and still be a risky investment if its finances are weak.

Investors should look at debt, cash flow, margins, and the ability to keep funding growth through difficult periods.

A strong balance sheet gives management more room to keep investing when conditions are tough. Healthy cash generation can reduce the need for capital raisings, asset sales, or painful cost cuts.

This is especially important for companies that have fallen heavily.

When confidence is low, the market can become far less forgiving. Businesses with stronger financial foundations have a better chance of waiting out the pressure and rebuilding investor trust.

Focus on future earnings, not the old share price

One common mistake is anchoring to the previous share price high.

A share that has fallen heavily still needs to be assessed against its future earnings, cash flow, and growth potential.

Investors should ask whether the business can realistically grow into a higher valuation over time. That may involve looking at revenue growth, margins, market share, recurring income, and management’s track record.

If the previous share price was inflated by unrealistic expectations, a big fall may simply be a reset. If the market has become too cautious about a good business, the lower price may create a genuine opportunity.

Be patient

Even when the analysis is right, the timing can be uncomfortable.

A beaten-down ASX share can stay out of favour for months or even years. Sentiment usually takes time to recover, particularly when investors have been disappointed.

This is why patience is important.

Investors can reduce the pressure of perfect timing by buying gradually, leaving room to add more if the share price falls further, and avoiding oversized positions in companies where confidence is still being rebuilt.

Foolish takeaway

A fallen ASX share becomes attractive when the business remains strong, the balance sheet can handle pressure, the valuation has become more sensible, and the long-term growth story still makes sense.

That combination can turn a selloff into a genuine opportunity.

The post How to know when a beaten-down ASX share is worth buying appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in CSL, Treasury Wine Estates, and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Treasury Wine Estates, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates and WiseTech Global. 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.