Author: openjargon

Starting an investment portfolio can feel more complicated than it needs to be.

There are thousands of shares to choose from, constant market commentary to filter, and plenty of wild swings.

The good news is that ASX exchange traded funds (ETFs) can make the first step much simpler. They allow investors to buy a basket of assets in a single trade, which means instant diversification without having to pick every holding individually.

Here are three ASX ETFs that could help new investors get started.

Vanguard Diversified High Growth Index ETF (ASX: VDHG)

The first ASX ETF to look at is the Vanguard Diversified High Growth Index ETF.

It is designed as an all-in-one investment option. It provides exposure to Australian shares, international shares, emerging markets, and a smaller allocation to defensive assets.

That makes it a useful starting point for investors who want broad diversification without having to build everything themselves.

The fund has a high-growth profile, meaning most of its exposure is to shares. This gives it stronger long-term return potential than more conservative options, but it also means investors should expect market volatility along the way.

For someone who wants a simple first ETF, the Vanguard Diversified High Growth Index ETF could be worth considering.

iShares S&P 500 ETF (ASX: IVV)

Another ASX ETF that could appeal to new investors is the popular iShares S&P 500 ETF.

It tracks the S&P 500 index, giving investors exposure to many of the largest listed companies in the United States.

Its holdings include companies such as Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Walmart (NASDAQ: WMT).

The US market is home to a large number of global leaders across technology, healthcare, financial services, consumer goods, and industrials. This fund allows Australian investors to access that market through the ASX.

This can be useful for diversification. The Australian share market is heavily weighted toward banks and miners, while the S&P 500 index gives investors exposure to a broader set of global businesses.

Vanguard Australian Shares Index ETF (ASX: VAS)

A third ASX ETF for beginners to consider is the Vanguard Australian Shares Index ETF.

It gives investors exposure to the Australian share market by holding a broad portfolio of ASX-listed companies.

Its 300 holdings include Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), and Woolworths Group Ltd (ASX: WOW).

This means the ETF could appeal to investors who want simple exposure to local shares, including companies they already know and use.

For those starting out, the Vanguard Australian Shares Index ETF provides a straightforward way to invest in a broad slice of the local market.

The post How to start investing with ASX ETFs in 2026 appeared first on The Motley Fool Australia.

More reading

• Which Australian ETFs would be top buys this month?
• Why Aussie investors are pouring into international ASX ETFs
• 3 reasons to buy and hold the IVV ETF forever
• Are these ASX ETF giants still worth buying today?
• After surging nearly 200%, is this the best ASX ETF in 2026?

Motley Fool contributor James Mickleboro has positions in Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, Microsoft, Walmart, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Woolworths Group. The Motley Fool Australia has recommended Amazon, Apple, BHP Group, Microsoft, 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.

Passive income can come from many parts of the ASX.

Some companies generate cash flow from essential assets. Others are supported by long-term contracts, recurring demand, or disciplined capital management.

Here are three ASX dividend shares that could be worth looking at.

Rural Funds Group (ASX: RFF)

The first ASX dividend share with a distinctive income profile is Rural Funds Group.

It owns agricultural assets across Australia and leases them to operators in sectors such as cattle, cropping, macadamias, almonds, and vineyards.

That structure gives shareholders exposure to rental income from farmland without the need to run the farms directly. It also means the group’s earnings are tied to long-term agricultural assets rather than traditional office, retail, or industrial property.

The appeal here is the essential nature of the end market. Food production remains a long-term need, and high-quality agricultural land is a finite asset.

For investors seeking passive income from real assets, Rural Funds offers a way to access agriculture through the ASX.

Transurban Group (ASX: TCL)

Another ASX dividend share worth considering is Transurban Group.

It owns and operates toll road networks in Australia and North America. These are long-life infrastructure assets located in major urban corridors.

Its income is supported by traffic volumes and toll revenue, with many concessions having pricing structures that can increase over time.

This gives Transurban a different profile from companies exposed to discretionary consumer spending. Roads remain important to commuters, freight operators, and airport traffic, even if usage can fluctuate during weaker periods.

With population growth and urban congestion continuing to support demand for transport infrastructure, Transurban arguably remains one of the ASX’s key passive income shares.

Universal Store Holdings Ltd (ASX: UNI)

A third ASX dividend share that could be worth a look is Universal Store.

It operates youth-focused fashion retail stores across Australia, with brands including Universal Store, Perfect Stranger, and Thrills.

Retail can be cyclical, but Universal Store has shown an ability to connect with younger shoppers through curated ranges, own brands, and a strong store experience.

This is a different type of income idea from infrastructure or property. It carries more exposure to consumer spending, but it also offers the potential for dividend growth if the business keeps executing well.

And with its shares hitting a 52-week low this week, now could be an opportune time to open a position.

The post Hunting passive income? Here are three ASX dividend shares to buy appeared first on The Motley Fool Australia.

More reading

• Why this could be one of the best ASX dividend stocks to buy now
• Fast-track your retirement with these ASX shares and ETFs
• Is this the best ASX dividend stock to buy for passive income?
• These ASX dividend shares offer big yields and potential upside of 20%+
• Should you still buy ASX shares amid fast-rising inflation and interest rates?

Motley Fool contributor James Mickleboro has positions in Universal Store. 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 Rural Funds Group and Transurban Group. The Motley Fool Australia has recommended Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Qantas Airways Ltd (ASX: QAN) shares slumped further on Thursday.

At the close of the ASX on Thursday, the shares were are 0.92% lower at $8.59 a piece.

The tumble means the airline’s shares are now 18% lower year to date and 14% lower than this time last year.

The airline’s shares have faced significant headwinds so far in 2026 as conflict in the Middle East and rising fuel prices put the business under pressure.

The largest operating cost for airlines is its jet fuel, which is refined from crude oil. 

Australia imports more than 90% of its refined fuel, which means local prices track global oil prices and currency movements. 

When oil prices rise due to tight supply or geopolitical tensions, jet fuel prices also rise. This then means that airlines, such as Qantas, face higher operating costs, which can pressure profits and potentially weigh on their share prices.

Last month, the flying Kangaroo confirmed that its fuel costs for the second half of FY26 are now estimated to be significantly higher than prior expectations, at $3.3 billion. The airline previously forecast fuel costs to be around $2.2 billion. 

But Qantas has a plan to help tackle rising costs. The airline said it will increase ticket prices and reduce domestic capacity by about 5% in May and June. It will also temporarily suspend some routes. International fares have already risen by 5%.

It hasn’t been enough to ignite investor confidence, though, and the shares keep on tumbling.

The thing is. At the current trading price of $8.59, I think Qantas shares are now a bargain. Here’s why.

Second-half fuel exposure is hedged

Qantas said that around 90% of its second-half fuel exposure is already hedged. Its plan to increase fares and make some route changes will also help to recover part of the fuel price pressure.

Qantas is a dominant airline

The aviation heavyweight has dominated the Australian domestic aviation market for decades alongside rival Virgin Australia Holdings Ltd (ASX: VGN). Qantas’ share of the domestic market currently accounts for around 60%, and it’s still growing.

It’s expanding its offshore routes

The airline is planning to expand its route offering offshore, including routes to mainland US, New Zealand, Singapore, and Hawaii, which will open up more demand. 

Meanwhile, its subsidiary, Jetstar, is adding capacity to routes to Bali, New Zealand, Thailand, South Korea, and Singapore, and it operated its first direct flight to the Philippines late last year.

Qantas is branching out with AI

The company is also planning to scale AI usage across the business this year. Earlier in 2026, the Qantas CEO said the business is laying the foundations for increased AI use and that he thinks Australia needs to move quickly on the “unprecedented” opportunities it represents. 

Travel demand is still stronger than expected

Despite cost-of-living pressures and higher fares, demand for domestic, international, and corporate travel remains high. 

In fact, last month, Qantas significantly upgraded its second-half FY26 revenue guidance off the back of strong demand and capacity shifts despite higher fuel costs. Its international and domestic unit revenues are currently running ahead of expectations. 

Brokers tip a strong upside ahead

Market Index data shows a consensus strong buy rating for Qantas shares. The average $11.25 target price implies a potential 30% upside ahead. 

TradingView data shows that some are even more bullish and are tipping the airline’s shares to climb as high as 49% to $12.80 a piece, at the time of writing. 

The post At just $8.59, it looks like Qantas shares are a bargain buy: Here’s why appeared first on The Motley Fool Australia.

More reading

• Why Graincorp, Air New Zealand and Megaport shares are turning heads on Thursday
• Air NZ warns of ‘fuel shock’, what this means for Qantas shares
• 3 ASX retail shares exposed to a drop in consumer spending
• Down 17% since February, why Qantas shares are looking like a bargain buy
• How much passive income could I make with $10,000 in Qantas shares?

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

ASX industrials stock ALS Ltd (ASX: ALQ) hit yearly highs back in March. 

However since then, it has fallen over 14%. 

A new note out of the team at Morgans suggests this could be an opportunity for investors to buy the dip. 

Company overview

ALS is one of the world’s largest laboratory testing, inspection, certification, and verification businesses. It operates from around 350 sites across 65 countries.

The company also provides environmental, pharmaceutical, and food and beverage testing and certification. ALS has a multi-billion dollar market capitalisation and is part of the ASX 100.

Its share price rose 60% in the 12 months to March 2026, however since then has been on a downward trend. 

However the team at Morgans expects this to be corrected over the next 12 months. 

Here’s what the broker had to say. 

Perfect storm presents an opportunity

The team at Morgans said this ASX industrials stock’s recent share price weakness reflects a perfect storm of headwinds – slowing organic growth from offshore peers, FX pressure, Middle East exposure, and concerns around fuel availability. 

We have sought to capture the first three in our forecasts and see limited net impact at the group level, as softer Life Sciences growth is offset by a stronger Commodities outlook. Fuel availability is an unknown, though we view any disruption as a blip given juniors’ balance sheets and supportive commodity prices. Copper is trading at all-time highs (US$6.65/lb) and the GDXJ is back around the 2011-12 cycle peak, when exploration spend topped US$20.0bn. This is +65% above CY25 spend (US$12.4bn) and over +125% higher in real terms.

Target price rises

Based on this guidance, Morgans has increased its price target to $27.20 (from $25.30).

From yesterday’s closing price of $22.27, this indicates a 22% upside. 

Morgans isn’t the only broker with an optimistic view for this ASX industrials stock. 

According to TradingView, 8 analysts offering a one year price target have an average price target of $24.34, and maximum of $28.

This indicates an upside potential between 9% and 25%. 

Similarly, UBS recently put a buy rating on the business, with a price target of $26. 

The broker said there are early signs of a recovery in the resources exploration cycle. 

Geochemistry demand continues to be driven primarily by major miners, despite increased capital raising activity among junior and mid-tier miners, indicating the sector remains in the early stages of the exploration cycle.

UBS also noted that ALS appears to be recapturing previous geochemistry pricing discounts as demand strengthens.

The post Why investors should buy the dip on this ASX industrials stock appeared first on The Motley Fool Australia.

More reading

• ALS reports cyber security incident impacting operations

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.

A recent report showed the continued rise in popularity of ASX ETFs. 

It’s clear that Australians are more consistently turning to ASX ETFs for diversification and growth prospects. 

This increased investment is pushing funds higher this week. 

Here are five funds hitting record highs. 

Betashares Capital – Asia Technology Tigers ETF (ASX: ASIA)

This fund pushed to a new all-time high yesterday, flirting with $21 per share during Thursday’s trading session. 

Yesterday’s gain now takes its 12 month return to over 83%. 

The fund aims to track the performance of an index (before fees and expenses) comprising the 50 largest technology and online retail stocks in Asia (ex-Japan).

Many of these companies are leading Asia’s (ex-Japan) technological revolution.

Global X AI Infrastructure ETF (ASX: AINF)

This ASX ETF from Global X also hit an all-time high during Thursday. 

The artificial intelligence movement has accelerated as businesses and industries have accepted AI demand is real, not theoretical. 

The benefits are spreading beyond software into hardware, infrastructure and materials. 

This ASX ETF has captured these tailwinds in a thematic fund, and is now up over 65% in the last 12 months. 

It offers targeted exposure to the physical and operational backbone enabling AI’s global expansion. 

While most AI investments focus on chips or platforms, AINF ETF looks underneath the surface at the energy, data, and materials infrastructure powering this transformation.

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

This new fund from Vanguard has enjoyed a steady climb since its initial listing in March 2026. 

It rose again yesterday, pushing to a new all-time high. 

This fund aims to track the performance of the S&P 500 Index, giving investors exposure to 500 of the largest publicly listed companies in the United States. 

It is up more than 6% in its short history. 

Betashares Climate Change Innovation ETF (ASX: ERTH)

This ESG focussed ETF hit yearly highs yesterday. 

It comprises a portfolio of up to 100 leading global companies that derive at least 50% of their revenues from products and services that help to address climate change and other environmental problems through the reduction or avoidance of CO2 emissions. 

This covers clean energy providers, along with leading companies tackling green transport, waste management, sustainable product development, and improved energy efficiency and storage.

It is now up over 18% in the last 12 months. 

VanEck Global Clean Energy ETF (ASX: CLNE)

Another ESG focussed fund, this ASX ETF has rocketed 70% higher in the last 12 months. 

It is now also trading at a 52-week high.

It gives investors a diversified portfolio of 30 of the largest and most liquid companies involved in clean energy production and associated technology and clean energy equipment globally.

The post These ASX ETFs are smashing record highs  appeared first on The Motley Fool Australia.

More reading

• 3 ASX ETFs that have raced ahead this year
• 2 top Vanguard ETFs I’d buy and hold in May
• These ASX ETFs just hit 52-week highs but I’d still buy them
• 3 incredible ASX ETFs to buy to supercharge your portfolio
• How to tap into Asia’s growth using ASX ETFs

Motley Fool contributor Aaron Bell has positions in Betashares Capital – Asia Technology Tigers Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 shift to clean energy is creating a decade-long demand surge for copper, lithium, and iron ore. 

Australia’s big three miners sit right at the centre of it.

The world needs enormous quantities of copper, lithium, and iron ore to build wind turbines, solar panels, electric vehicles, and the grid infrastructure that ties it all together. 

Australia’s three largest miners have been reshaping their portfolios to benefit from this.

Investors who recognise that shift early could benefit handsomely.

BHP Group Ltd (ASX: BHP)

BHP has made its strategic direction clear: copper is the future. 

The company reported a 31% increase in its average realised copper price to US$5.47 per pound in its March quarter update. 

The copper price itself has been one of the standout commodity stories of 2026, climbing 27% year to date to trade above US$12,000 per tonne on the London Metal Exchange.

This has been driven by surging demand from electrification and AI data centre construction. 

BHP’s Escondida mine in Chile, the world’s largest copper operation, and its Olympic Dam asset in South Australia position it as one of the best ways to gain exposure to the copper megatrend.

Rio Tinto Ltd (ASX: RIO)

Rio Tinto has arguably made the most aggressive pivot toward energy transition metals of any major global miner. 

The company’s $6.7 billion acquisition of Arcadium Lithium immediately positioned Rio as one of the world’s largest lithium producers. 

Its Oyu Tolgoi copper mine in Mongolia is on track to become the world’s fourth largest copper operation by 2028. 

The Simandou iron ore project in Guinea shipped its first cargo in December 2025, with 2026 ramp-up targets of five to ten million tonnes marking the beginning of what will eventually become a major earnings contributor. 

Goldman Sachs and JP Morgan both noted the Arcadium acquisition as a well-timed entry into the lithium market.

Beyond that, Rio’s 60% dividend payout policy makes it attractive to income-focused investors alongside the growth story.

Fortescue Ltd (ASX: FMG)

Fortescue takes a different but no less ambitious approach to the green transition. 

The company committed to spending US$6.2 billion on decarbonisation, including a US$680 million investment to accelerate its 200-megawatt Pilbara Green Energy Project. 

The goal is net zero Scope 1 and 2 emissions across all operations by 2030, a target that would make Fortescue one of the greenest large-scale miners in the world. 

Fortescue shares have risen substantially over the past six months, reflecting both the iron ore price recovery and growing investor appreciation for its clean energy ambitions.

Foolish takeaway

BHP leads on copper scale. 

Rio brings diversification across copper and lithium. 

Fortescue bets that green iron ore production itself becomes a competitive advantage. 

For long-term investors for whom the impact of their investments is important, and who are willing to navigate commodity price volatility, all three deserve serious consideration. 

The post 3 ASX mining stocks positioned to benefit from the green transition appeared first on The Motley Fool Australia.

More reading

• Rio Tinto shares hit fresh all-time high. Can they keep going?
• Can these ASX shares hitting record highs keep climbing?
• BHP shares just hit a new all-time high. Here’s why
• BHP shares regain their market crown as CBA slides 10%
• Why Arafura, Aristocrat, BHP, and Perenti shares are racing higher today

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.

On Thursday, the S&P/ASX 200 Index (ASX: XJO) snapped its losing streak with a small gain. The benchmark index rose 0.1% to 8,640.7 points.

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

ASX 200 expected to rise

The Australian share market looks set to rise on Friday following a solid night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 51 points or 0.5% higher this morning. On Wall Street, the Dow Jones was up 0.75%, the S&P 500 rose 0.75%, and the Nasdaq climbed 0.9%.

Oil prices rise

ASX 200 energy shares such as Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) will be on watch on Friday after a decent night for oil prices. According to Bloomberg, the WTI crude oil price is up 0.95% to US$102.00 a barrel and the Brent crude oil price is up 0.9% to US$106.55 a barrel. With no sign of a US-Iran peace deal being agreed, traders have been bidding oil prices higher.

Hold Graincorp shares

Graincorp Ltd (ASX: GNC) shares were out of form and sank 13% on Thursday following the release of its half-year results. The team at Bell Potter doesn’t think this is a buying opportunity. This morning, the broker has retained its hold rating with a reduced price target of $5.90 (from $6.80). It said: “Global production forecasts for 2026/27 remain at elevated levels (~2% above the 5YR avg.), suggesting ongoing tight grain trading margins. Oilseed crush margins remain strong and have the potential to be a tailwind as hedge positions rollover.”

Gold price falls

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a poor finish to the week after the gold price dropped overnight. According to CNBC, the gold futures price is down 1.1% to US$4,656 an ounce. Rising oil prices appear to have spooked traders. They may believe higher inflation could increase the risk of rate hikes.

Buy Catapult shares

Catapult Sports Ltd (ASX: CAT) shares are being undervalued by the market according to analysts at Bell Potter. This morning, the broker has retained its buy rating on the sports technology company’s shares with a trimmed price target of $4.50 (from $4.75). It commented: “Catapult remains our key pick in the tech sector amongst mid cap stocks outside the S&P/ASX 100 index. We see little risk of AI disruption for the stock given its extensive proprietary data, multiple product platform and the hardware component to its solutions.”

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
• ASX 200 slips as weakness spreads across the board
• Why Bapcor, Coles, Graincorp, and Xero shares are tumbling today
• Why Graincorp, Air New Zealand and Megaport shares are turning heads on Thursday
• Worley unveils new growth strategy and $300m buyback at Investor Day

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

Financial shares are underperforming this week, down 5.5%, while the S&P/ASX 200 Index (ASX: XJO) is 1.3% lower.

Let’s take a look at some newly revised ratings on three ASX financial shares.

COG Financial Services (ASX: COG)

The COG Financial Services share price closed at $1.62 yesterday, down 0.3% for the day and down 22% year-to-date (YTD).

This week, Shaw and Partners retained a buy rating on this ASX financial share with a 12-month price target of $2.45.

COG is Australia’s largest asset finance group. One of its business divisions is novated car leases and salary packaging.

In a note, the broker said COG Financial Services would benefit from the electric vehicle (EV) fringe benefits tax exemption continuing unchanged until April next year.

The broker said:

From April 2027, the full exemption will apply to vehicles priced below A$75,000, covering around 85% of EV purchases.

From April 2029, eligibility will reduce to a 25% FBT exemption for vehicles priced below the luxury car tax threshold (~A$91,000) 

COG Financial Services Limited (ASX:COG) continues to screen as very attractive, trading on a FY27 free cash flow yield of 17% and a FY27 PE of ~8x.

Our valuation implies 12.5x FY28 EPS, broadly in line with the sector’s average PE of 12.3x since 2020 despite ongoing regulatory headwinds. 

Macquarie Group Ltd (ASX: MQG)

The Macquarie share price closed at $244.53 on Thursday, up 3.3% for the day and up 20% YTD.

This week, Morgans kept a hold rating on the ASX financial share and raised its target from $223 to $248.

Morgans said:

MQG delivered a very strong FY26 result with NPAT (A$4.8bn) up +30% on the pcp and +8% above company-compiled consensus.

MQG is a quality franchise, and a proven performer, but with <10% upside to our PT, we maintain our Hold call.

Commonwealth Bank of Australia (ASX: CBA) 

The CBA share price closed at $156.42 yesterday, up 1.8% for the day and down 2.9% YTD.

It’s been a big week for CBA shares.

The CBA share price plunged 10.2% in its largest one-day fall ever,after the bank’s 3Q FY26 update on Wednesday.

Changes to negative gearing and capital gains tax announced on Tuesday night in the Federal Budget didn’t help, either.

Experts fear the changes will disincentive property investment, thereby reducing housing credit growth over time.

Morgan Stanley said there are already signs that home loan and savings deposit growth are moderating from strong levels last year.

In a note, the broker said:

We believe RBA rate hikes and higher fuel prices increase the probability that a slowdown takes hold in coming month.

This week, the broker retained its sell recommendation on CBA shares with a slightly reduced 12-month price target of $130.

The post Buy, hold, sell: COG Financial Services, Macquarie, CBA shares appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• The CBA share price crash was an accident waiting to happen. Here’s why
• Buy, hold, sell: CBA, Life360, and Macquarie shares
• Buy, hold, sell: Bega Cheese, Kogan, Macquarie shares
• Are CBA shares a buy after the latest sell-off?

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 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.

ASX biotech stock EBR Systems Inc (ASX: EBR) is attracting serious attention from brokers this week. 

Fresh price targets from experts indicates this could be a rare opportunity for investors. 

The company develops implantable systems for wireless tissue stimulation. Its WiCS Wireless Cardiac Stimulation technology helps address the significant opportunity to eliminate cardiac pacing leads.

Brokers have been dropping fresh guidance on the ASX biotech stock after it secured a purchasing agreement with HCA Healthcare, one of the largest healthcare systems in the US, representing an important commercial milestone. 

What did the company report?

On Wednesday, the company released an announcement to the ASX that it has secured a purchasing agreement with HCA Healthcare, marking a significant step in the commercial rollout of its WiSE CRT System.

HCA Healthcare is one of the largest healthcare networks in the U.S., with 190 hospitals and approximately 2,500 ambulatory sites of care across 19 states.

John McCutcheon, EBR Systems’ President & Chief Executive Officer said:

Securing a purchasing agreement with HCA Healthcare is an important commercial milestone for EBR. Establishing a purchasing pathway across one of the largest healthcare networks in the U.S. supports broader commercial access for the WiSE System and builds on the momentum of our U.S. rollout. It is also a signal that WiSE reimbursement supports adoption across larger networks.

EBR is currently active in two HCA sites, St David’s Medical Center in Austin, Texas and Medical City in Fort Worth, Texas. 

According to the release, this agreement will streamline the procurement and contracting pathways for the WiSE System across HCA Healthcare hospitals. 

EBR sales reps will be able to engage directly with physicians and administrators at HCA sites to support the continued adoption of the WiSE System. 

Morgans retains its buy recommendation

Following the announcement, the team at Morgans released updated guidance on the ASX biotech stock. 

We believe the agreement not only should support more efficient procurement and contracting processes, building on US commercial momentum following strong 1Q implant growth, but also reinforce management’s recent commentary around increasing engagement with large IDNs and GPOs, which we view as critical to scaling adoption over time.

We continue to view EBR favourably given growing physician enthusiasm, expanding reimbursement support, increasing repeat utilisation and emerging evidence of institutional validation.

The broker retained its buy recommendation and $2.47 price target. 

From yesterday’s closing price of just over 59 cents, this indicates an upside potential of more than 300%. 

Morgans isn’t the only broker tipping exponential growth. 

As James Mickleboro reported yesterday, Bell Potter has also tipped 250% upside for this ASX biotech stock. 

The post With potential upside of more than 300%, is this ASX biotech the best buy on the ASX right now? appeared first on The Motley Fool Australia.

More reading

• Broker says this ASX biotech stock could rocket 250%
• What is Bell Potter’s view on this ASX small-cap following a clinical trial update?
• Is this ASX gold stock a buy, hold or sell after its quarterly results?
• Is this ASX energy stock a buy, hold or sell following quarterly results?
• Here’s why Morgans just upgraded Woolworths shares

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 ASX 200 tech sector is on its way out of a crushing 48% rout that occurred between 29 August and 30 March.

Since then, the S&P/ASX 200 Information Technology Index (ASX: XIJ) has recovered by 12%.

By comparison, the benchmark S&P/ASX 200 Index (ASX: XJO) has risen 2.1% over the same period.

Let’s look back and see what happened to the share prices of the top 10 ASX tech shares during the downturn.

Then, let’s compare that data to the performance of BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC).

Given the popularity of exchange-traded funds (ETFs) these days, I’m curious as to whether the only ASX tech ETF tracking Australian technology shares alone provided any protection against the sector downturn.

One of the appeals of ETFs is that they represent a basket of stocks. This can reduce the impact of a large price drop in a single stock.

But what if a whole sector falls? Does the structure of ASX ETFs provide any protection for investors?

Let’s conduct a litmus test.

Top 10 ASX tech shares

As stated earlier, the S&P/ASX 200 Information Technology Index fell 48% between 29 August and 30 March, and has rebounded 12% since.

Let’s compare that to the share price falls and recoveries of the top 10 tech shares on the market.

Sector rank	ASX tech share	Share price change during rout	Share price change since 31 March
1	Xero Ltd (ASX: XRO)	-57%	+5%
2	WiseTech Global Ltd (ASX: WTC)	-64%	+0%
3	NextDC Limited (ASX: NXT)	-32%	+33%
4	TechnologyOne Ltd (ASX: TNE)	-34%	+4%
5	Codan Ltd (ASX: CDA)	+3%	+26%
6	Life360 Inc (ASX: 360)	-61%	+1%
7	Macquarie Technology Group Ltd (ASX: MAQ)	-2%	+29%
8	Megaport Ltd (ASX: MP1)	-57%	79%
9	Dicker Data Ltd (ASX: DDR)	-8%	+7%
10	Elsight Ltd (ASX: ELS)	+242%	+4%

How did ATEC ETF do?

The ATEC ETF fell 42% between 29 August and 30 March compared to the 48% drop for the S&P/ASX 200 Information Technology Index.

Since then, ATEC ETF has recovered 8% compared to a 12% lift for the ASX 200 Info Tech Index.

So, the fall was not as bad with ATEC ETF during the tech rout, but the recovery has not been as fast as the ASX 200 tech sector.

Interesting.

ATEC tracks the S&P/ASX All Technology Index (before fees and expenses).

It’s the only option for investors who want exposure to Australian technology through an ASX ETF.

However, it’s important to know that the S&P/ASX All Technology Index is different to the S&P/ASX 200 Information Technology Index.

The ASX 200 Info Tech Index is comprised of the top 200 tech companies ranked and weighted by market capitalisation.

The All Tech Index is much smaller, comprised of just 45 companies, and only 56% are technically in the tech sector.

The others are from the communications, industrials, healthcare, and financial sectors, but their operations are heavily tech-related.

For example, the largest holding in ATEC is ASX 200 industrials share, Computershare Ltd (ASX: CPU) at 10%.

The fourth biggest holding is Car Group Limited (ASX: CAR), which is a communications sector share, at 8.9%.

The owner of realestate.com.au, REA Group Ltd (ASX: REA), is the sixth biggest holding at 7.5%. REA is also a communications share.

At No. 8 is ASX 200 healthcare share Pro Medicus Ltd (ASX: PME) at 6%.

At No. 9 is another communications share, Seek Ltd (ASX: SEK) at 4.2%.

This diversity of sectors, along with the less volatile nature of ETFs, appears to have provided some protection during the tech sector rout.

The post ASX tech shares vs. ATEC ETF: How they fared during sector downturn appeared first on The Motley Fool Australia.

More reading

• Why Megaport just landed its biggest ever AI infrastructure contract
• 3 reasons I would buy Xero shares following its results
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: CBA, Life360, and Macquarie shares
• How high does Macquarie think Codan shares will go?

Motley Fool contributor Bronwyn Allen has positions in Betashares S&P Asx Australian Technology ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Megaport, Technology One, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Dicker Data, Life360, WiseTech Global, and Xero. The Motley Fool Australia has recommended CAR Group Ltd, Pro Medicus, and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.