Author: openjargon

When most Australian investors buy into a simple ASX index fund, they normally do so for a simple reason. Index funds are designed for passive investment over long periods of time, making them a perfect fit for investors who don’t want to do stock picking themselves, but still wish to build long-term wealth using the share market.

Index funds promise simplicity and passivity, at the expense of achieving the kinds of millionaire-making returns that motivate most active stock pickers.

Until recently, that was a pretty spot-on assessment to have come to. But one ASX index fund has turned it on its head.

Korean stocks on the ASX

That would be the iShares MSCI South Korea ETF (ASX: IKO). Just as an ASX index fund like the iShares Core S&P/ASX 200 ETF (ASX: IOZ) tracks the S&P/ASX 200 Index (ASX: XJO), representing the largest 200 stocks on the Australian share market, IKO follows the MSCI Korea 25/50 Index. This index represents the best of the Korean public markets, and currently tracks about 80 South Korean companies.

Just as the ASX 200 represents a slice of Australian business, this index offers up the cream of Korean capitalism. Until recently, most ASX investors wouldn’t have batted an eye at this. After all, most advanced economies around the world have indexes that track their stock market’s performances. Most offer similar returns that average in the high single-digits over long periods of time.

However, the iShares MSCI South Korea ETF has put that adage to shame. And that’s a gross understatement.

Exactly a year ago, IKO units were going for $97.71 each. Today, those same units are worth $309.92 at the time of writing. That’s up an incredible 217.2% over the past 12 months. You can add another 1.46% on top of that to account for this ASX index fund’s dividend distributions too, if you’d like.

How has this ASX index fund returned more than 200% in a year?

So how on earth does a simple ASX index fund deliver a return like that? For comparison, the iShares ASX 200 ETF has risen by 3.38% over the same period.

Well, it seems a perfect storm has hit the Korean markets. The Korean stock exchange is top-heavy. The two largest stocks in the IKO ETF are SK Hynix Inc, and Samsung Electronics Ltd. These two companies alone currently account for 23.8% and 21.9% of this index fund’s weighted portfolio, respectively. The next-most significant holding only contributes 3.52%.

As it happens, SK Hynix and Samsung are both leaders in what is arguably the hottest industry in the world right now – chipmaking. As the boom in artificial intelligence (AI) investment has taken off over recent years, the fortunes of these beneficiaries have soared. Samsung shares have (as of the time of writing) rocketed by 512% since this time last year. SK Hygenix is up more than 1,000%.

As such, IKO owners have these two names to mostly thank for their newfound wealth.

It’s hard to say what’s next for this high-flying ASX index fund. Before you get FOMO and buy in though, it’s worth pointing out that, as of 30 April, IKO’s long-term average is 8.58% per annum since its inception in 2000. Only time will tell if ‘this time it’s different’.

The post Meet the simple ASX index fund up 220% in 12 months appeared first on The Motley Fool Australia.

More reading

• These 2 top performing ASX ETFs show why investors should look beyond Australia and the US
• Here are the 3 best performing iShares ASX ETFs over the last year
• After surging nearly 200%, is this the best ASX ETF in 2026?

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

May was an interesting month for Qantas Airways Ltd (ASX: QAN).

The first week brought more of the same pain that has characterised 2026: elevated jet fuel costs, Middle East uncertainty weighing on booking confidence.

Then the mood shifted. Reports of US-Iran peace negotiations sent oil prices lower. Qantas shares surged almost 5% in a single session on 26 May.

By month end, the stock had recovered meaningfully from its lows.

The broker community, which has been bullish on Qantas throughout the 2026 selloff, appears to be vindicated in at least one sense: the pain that drove the selling is beginning to ease.

What drove the May recovery in Qantas shares

The most important catalyst was the oil price.

Jet fuel is the single largest operating cost for any airline, and Qantas had been absorbing a severe fuel cost shock in 2026.

In its April update, the company flagged second half FY2026 jet fuel costs of $3.1 billion to $3.3 billion, more than double previous expectations, as Middle East conflict sent oil prices surging above US$105 per barrel.

The emergence of US-Iran peace talks pushed Brent crude from US$115 to US$103 per barrel in a single session on 26 May, directly reducing the near-term fuel cost outlook.

Furthermore, Qantas simultaneously increased its international unit revenue growth guidance for the second half of FY2026 to 4% to 6%. This increase was on the back of the extraordinary strength of demand on European routes despite the Middle East headwinds.

What brokers are saying about Qantas shares

The broker consensus on Qantas shares is unusually unified for a stock under such obvious pressure.

Macquarie upgraded Qantas shares to outperform following the 20% share price pullback from February highs, with a price target of $11.25. The broker cited demand-side resilience as evidence the selloff has been driven by temporary fuel cost concerns rather than any fundamental impairment of the business.

Ausbil co-portfolio manager Mans Carlsson described Qantas as the most undervalued stock his fund holds, noting that at an FY2028 price-earnings ratio of approximately 7 times, the market is pricing in an assumption that oil prices remain permanently elevated.

The tailwinds brokers keep coming back to

Beyond the near-term fuel noise, brokers point to three longer-term reasons for their bullish conviction on Qantas shares.

First, international travel demand has recovered well above pre-pandemic levels and continues to grow, particularly on premium cabins where Qantas earns the highest margins.

Second, the Qantas domestic business has maintained pricing discipline, with domestic unit revenue growth of approximately 5% guided for the second half of FY2026.

Third, Project Sunrise, Qantas’s planned direct flights from Sydney and Melbourne to London and New York, represents a new transformative revenue opportunity that is not yet fully reflected in broker forecasts.

The risks brokers acknowledge

The bear case on Qantas shares is not without merit.

A re-escalation of the US-Iran conflict could push oil prices back above US$110 per barrel, undoing the relief rally quickly.

 The airline is also exposed to Australian consumer confidence, which has been under pressure from the RBA’s rate hiking cycle.

Any deterioration in domestic traffic volumes would compound the international fuel cost headwind.

Foolish takeaway

The fuel cost shock that drove the 2026 selloff is beginning to ease.

If geopolitical tensions continue to ease, investors may have an opportunity to buy into the stock at an attractive price.

For investors who have been watching Qantas shares from the sidelines, the broker community is sending a clear signal that the opportunity may be closing.

The post Why brokers are turning bullish on Qantas shares after a strong May performance appeared first on The Motley Fool Australia.

More reading

• How Qantas shares soared ahead of the ASX 200 in May
• 3 reasons I would buy Qantas shares under $10
• 3 ASX shares that could benefit most if the US-Iran peace deal holds
• Virgin Australia, Qantas shares jump 8% higher this week. Are the ASX airline stocks a buy, sell or hold?
• If you invested $1,000 in Qantas shares a decade ago, here’s what they would be worth now

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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

One of the stories of the year has been the stark underperformance of ASX healthcare shares. 

As the calendars turn over to June, the S&P/ASX 200 Health Care Index (ASX: XHJ) sits almost 33% lower than at the start of the year. 

This makes it the worst performing sector in 2026 by some margin. 

ASX healthcare shares have been hit by a combination of earnings downgrades, rising cost pressures, weaker overseas earnings and investor concerns that growth across the sector is slowing. 

Because healthcare makes up a large part of the Australian market’s growth-stock universe, higher interest rates and a strong rotation into energy, mining, and resource stocks have amplified the sell-off.

For investors, this could be an intriguing opportunity to gain exposure to quality companies at a historic discount. 

Here are three of the largest ASX healthcare stocks that are tipped to rebound from historic lows. 

Pro Medicus Ltd (ASX: PME)

Pro Medicus enjoyed a fast start to the month of June. 

The medical imaging technology company rose over 9% yesterday following a key contract win.

Investors will be hoping this is the start of a long-term rebound. 

Despite yesterday’s 9% gain, it remains down 35% year to date. 

It closed yesterday at $144.46 per share. 

However brokers are confident it will rise significantly higher in the next 12 months. 

13 analysts offering a one year forecast have an average price target of $187.27 on Pro Medicus shares, indicating roughly 3% upside from current levels. 

11 of the 13 analysts rate the stock as a strong buy or buy. 

ResMed Inc (ASX: RMD)

While Pro Medicus shares started June off with a big rise, it was the opposite start to the month for ResMed shares. 

ResMed is a global leader in sleep technology.

Its share price fell more than 7% yesterday, and is now down 26% year to date. 

It now sits at a new 52-week low of $26.27. 

However this could now be a rare opportunity to scoop up this ASX healthcare stock at a significant value. 

Morgans expects a rebound over the next 12 months. The broker has a price target of $41.72 along with a buy rating. 

This indicates an upside potential of almost 59%. 

Sonic Healthcare Ltd (ASX: SHL)

It has been a similarly difficult 2026 for Sonic Healthcare shares. 

Its share price is down more than 14% year to date. 

However the global healthcare provider could also be set to recover in the near term. 

12 analysts forecasts via TradingView have an average one year price target of $23.40 on this ASX healthcare stock. 

This indicates an upside potential of 21% from current levels. 

The post Is June set to be the month of the ASX healthcare rebound? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why 4DMedical, IperionX, Pro Medicus, and Ventia shaares are storming higher today
• Why DroneShield, Lendlease, PlaySide, and ResMed shares are tumbling today
• Why are Pro Medicus shares rocketing 12% today?
• Pro Medicus renews $28m contract with Allegheny Health Network

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 positions in and has recommended ResMed. 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 ResMed. The Motley Fool Australia has recommended Pro Medicus and Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

BHP Group Ltd (ASX: BHP) shares have enjoyed a tremendous run over the past year.

In Monday afternoon trade, shares in the S&P/ASX 200 Index (ASX: XJO) mining giant were up 0.6%, trading for $62.71 apiece.

That sees the ASX 200 stock up 66% over the past 12-months, smashing the 3.5% one-year gains posted by the benchmark index.

Atop those capital gains, BHP has also paid out two fully-franked dividends totalling a (rounded) $1.96 a share. BHP shares trade on a fully-franked 3.1% trailing dividend yield at the time of writing.

Taking those franking credits into account, the grossed-up dividend yield is 4.5%.

And looking ahead, Red Leaf Securities’ John Athanasiou believes Australia’s biggest mining stock is well-positioned to keep outperforming (courtesy of The Bull).

Here’s why.

Should you buy BHP shares today?

According to Athanasiou:

Iron ore sales continue to drive earnings, but the key long-term story is copper, where demand is structurally supported by electrification, grid investment and artificial intelligence related infrastructure.

Consequently, it gradually shifts BHP from a traditional cyclical miner towards a more diversified industrial metals compounder.

Athanasiou is also bullish on the outlook for BHP’s future passive income payments.

“Cash generation remains strong, supporting consistent dividends and capital management,” he said.

Summarising his buy recommendation on BHP shares, Athanasiou concluded:

The balance sheet is conservative, allowing flexibility through the cycle. While iron ore is still exposed to Chinese demand volatility, BHP’s scale and low-cost positioning provide downside protection.

What’s happening with the ASX 200 miner’s copper ambitions?

Over the past 12 months, the copper price has surged 42%, trading for US$13,636 per tonne on Monday afternoon.

And with global copper prices likely to remain strong due to electrification, grid investment, and artificial intelligence-related infrastructure demands Athanasiou mentioned above, many big Aussie miners have been working hard to increase their exposure to the red metal.

BHP has been leading the charge, with the miner producing 984,000 tonnes of copper in the first half of the financial year (H1 FY 2026). This saw copper bringing in more than half of BHP’s earnings for the first time.

The company reported underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) from its copper division of US$8 billion in H1. That was up 59% year on year, and it saw copper contribute 51% of BHP’s half-year underlying EBITDA.

And, as CEO Mike Henry revealed following the miner’s Q3 results release on 22 April, BHP shares are on track to continue increasing their exposure to the red metal.

“In copper, strong performance at Escondida and Antamina supports our expectation of delivering production in the upper half of FY26 group copper guidance,” Henry said.

BHP’s full-year copper production guidance is between 1.9 million tonnes and 2.0 million tonnes.

The post Why BHP shares just got a big buy call appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Top 10 ASX shares bought and sold by investors in May
• 3 ASX mining shares to buy: experts
• Buy, hold, sell: BHP, PLS Group, CBA shares
• Experts name BHP and these ASX 200 shares to buy this week

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 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.

Short selling is one of the most transparent forms of market pessimism available.

When professional investors bet against a stock, they not only demonstrate their conviction but also send a signal to the market.

This week, three well-known ASX shares are attracting significant short interest.

Should investors be worried?

WiseTech Global Ltd (ASX: WTC)

WiseTech is down 43% year to date and 63% over the past twelve months.

The short sellers who have been betting against WiseTech shares have been richly rewarded in 2026.

According to the latest ASIC short position data, 7.93% of WiseTech shares are currently held as short positions, placing it among the more heavily shorted stocks in the ASX technology sector.

The bear case rests on three pillars.

First, the company announced it would cut approximately 2,000 jobs as part of a two-year AI-linked restructuring program, nearly a third of its total workforce, attracting union intervention and a Fair Work Commission claim.

Second, the Q3 FY2026 update confirmed that one-off integration costs related to the E2open acquisition would reach US$45 million to US$50 million in FY2026, materially compressing profit margins.

Third, analysts have cut the consensus full-year FY2026 EPS forecast as earnings forecasts have been revised downward following the integration cost blowout.

However, there is also a credible counter-argument in favour of WiseTech.

WiseTech’s CargoWise platform is used by all of the world’s top 25 global freight forwarders. The platform has high switching costs, giving strong future revenue visibility.

Bell Potter sees strong upside from current levels, and the business model continues to generate strong recurring revenue despite the near-term headwinds.

The bears may be right in the short term, but the long-term case is considerably harder to dismiss.

Cochlear Ltd (ASX: COH)

Cochlear shares are down 61% year to date, making the company one of the worst-performing large-cap ASX stocks in 2026.

The short sellers targeting Cochlear are betting that the April earnings downgrade marks the beginning of a more sustained deterioration. Today, 4.7% of outstanding shares are reported as being held short.  

Their case rests on two concerns.

First, the 30% guidance cut was driven partly by hospital capacity constraints and declining hearing aid referrals in developed markets, trends that could persist for several quarters.

Second, Morgans retained a hold rating and cut its price target to $107.17, while Macquarie slashed its target from $239 to $115, signalling genuine broker uncertainty about the recovery timeline.

Nevertheless, the bull case must also be considered.

Cochlear holds approximately 50% global market share in a market with just 3% penetration of an addressable patient population exceeding six million people in developed markets alone.

Jarden sees significant upside from current levels, and CEO Dig Howitt has been clear that surgeries are being delayed, not cancelled. He points specifically to short-term disruptors such as the conflict in the Middle East as an explanation for this trend.

Lendlease Group (ASX: LLC)

Lendlease shares crashed 6% yesterday after the company announced the sale of its Milano Santa Giulia development rights for $250 million. This translated into the booking of a $175 million post-tax operating loss.

The stock is down 55% over the past twelve months.

The short sellers (6.37% of total shares) have the most straightforward case of the three.

Lendlease is selling assets at material discounts to book value, recognising significant losses in the process. This raises questions about whether the remaining portfolio is also overvalued on the balance sheet.

Furthermore, each divestment removes future earnings potential, making it harder to see how the business rebuilds to a meaningfully larger earnings base in the medium term.

However, Lendlease management pointed to more than three billion dollars in liquidity and a Moody’s investment grade credit rating, arguing the balance sheet can absorb the losses while the simplification strategy plays out.

Foolish takeaway

Short sellers are sometimes right, but they are rarely right forever.

WiseTech, Cochlear, and Lendlease each face real near-term challenges that justify some level of caution.

However, all three also carry longer-term qualities that suggest the current pessimism may be creating opportunities for patient investors willing to accept short-term volatility.

The post Short sellers are targeting these 3 ASX shares this week. Are they right? appeared first on The Motley Fool Australia.

More reading

• Top 10 ASX shares bought and sold by investors in May
• Here are the top 10 ASX 200 shares today
• 3 ASX tech shares I’d buy as they rebound from the AI selloff
• Why DroneShield, Lendlease, PlaySide, and ResMed shares are tumbling today
• Guess which ASX 200 stock is crashing 8% today on $250 million divestment news

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

One of the hardest things for any management team to do is admit when something is not working.

On the 22 May 2026, Guzman y Gomez Ltd (ASX: GYG) did exactly that.

Co-CEO and founder Steven Marks had spent three months on the ground in Chicago.

His conclusion, delivered to shareholders, was that the US business required far more time and capital than originally expected.

He said:

Having spent the last 3 months in the US, I realized this was going to take significantly more time and capital than we had expected. The current performance of the US business could not justify continued investment of shareholder capital.

Guzman y Gomez shares surged as much as 20.58% on the day, closing 9.57% higher at $19.81.

Why the US exit is actually good news for Guzman y Gomez shares

At first glance, exiting the world’s largest fast food market sounds like bad news.

In reality, it removes one of the biggest overhangs that have weighed on Guzman y Gomez shares since the company’s ASX debut.

Guzman y Gomez entered the US market in 2020 with high hopes.

However, the business struggled to differentiate from rival Chipotle, and the challenges of operating in Chicago proved harder than management anticipated.

The US losses had been dragging on overall group numbers and absorbing management attention.

This attention could have been focused on the far more profitable Australian business.

The exit costs are contained.

Guzman y Gomez expects a one-off financial hit of between US$30 million and US$40 million, mostly non-cash.

Actual cash outflows are not expected to exceed US$15 million.

That is a manageable price to pay for a clean slate.

The Australian business is performing strongly

With the US distraction removed, investors can now focus on what really matters: the Australian growth story.

Guzman y Gomez lifted its Australia Segment underlying EBITDA guidance for FY2026 to approximately $85 million, representing growth of 29% on the prior year.

The company currently operates 237 restaurants in Australia, with a long-term target of 1,000.

That pipeline of 108 new sites already approved and in development represents a visible growth path.

Furthermore, the international master franchise model in Singapore and Japan is working well.

Singapore opened its 24th restaurant this week.

Both markets are guiding to further openings over the next 12 months.

These are capital-light, royalty-style exposures that cost Guzman y Gomez almost nothing to maintain and prove that the brand travels.

What Bell Potter thinks about Guzman y Gomez shares

The broker community responded decisively to the announcement.

Bell Potter upgraded Guzman y Gomez shares to a buy rating from hold with an improved price target of $24.50, from a prior target of $22.10.

The broker said:

We welcome the US exit as a previous overhang removed on the stock and see the switch to focusing on the core Australia opportunity as more beneficial to shareholders. We are confident in the medium-term Australia opportunity, backed by a pipeline of 108 restaurants, as well as the successful master franchising operation in Singapore and Japan.

However, with the US overhang now fully removed and the 29% Australian EBITDA growth confirmed, several analysts believe the Bell Potter target itself could prove conservative.

Citi, which had already been sceptical about the US prospects, called the exit decision the right one.

The broker noted there is “significant growth” in Australia where the long-term target of 1,000 restaurants has barely been scratched.

For context, Guzman y Gomez shares traded as high as $43 in December 2024, before the US concerns mounted.

A return even to half that level from today’s price of $19.81 would represent significant upside.

Foolish takeaway

Guzman y Gomez shares are not without risk.

The US exit signals a painful lesson learned and takes one major growth option off the table.

Competition in Australia from other quick service restaurant chains remains significant.

However, the decision removes what had been the most persistent valuation overhang on Guzman y Gomez shares since listing.

What remains is a 29%-growing Australian restaurant business with a clear path to 1,000 locations, a capital-light international franchise model, and a founder back in Australia focused entirely on the core opportunity.

For long-term investors, the case for Guzman y Gomez shares looks considerably cleaner today than it did a week ago.

The post Why Guzman y Gomez shares could shoot 30% higher after exiting the US market appeared first on The Motley Fool Australia.

More reading

• Here are the 10 most shorted ASX shares
• Why did ASX 200 retail shares lead the market last week?
• Top brokers name 3 ASX shares to buy next week
• Why these ASX 200 shares could shoot 20% and 50% higher
• A rare buying opportunity in 1 of Australia’s top shares?

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 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.

For 27 years, Australian investors have enjoyed one of the most generous capital gains tax concessions in the developed world.

Buy an asset, hold it for more than twelve months, and the government only taxes half your gain.

That concession, introduced by the Howard government in 1999, shaped how Australians invest in ASX shares, property, and managed funds.

From 1 July 2027, it is gone.

The 2026 federal budget replaced the 50% CGT discount with a system of inflation indexation and introduced a 30% minimum tax on capital gains.

For ASX investors, the implications are significant and deserve careful attention.

What actually changed

Under the old system, an investor who bought ASX shares for $10,000 and sold them ten years later for $60,000 would pay tax on only $25,000 of that $50,000 gain.

This would halve the taxable amount regardless of inflation.

Under the new system taking effect from 1 July 2027, the cost base of the investment is adjusted for inflation before calculating the gain.

In a low-inflation environment, that might mean the investor only gets credit for a small reduction in the taxable gain.

In a high-inflation environment, the benefit could be more meaningful.

Critically, a 30% minimum tax rate applies to all capital gains made from 1 July 2027.

This means that investors cannot reduce their CGT liability by selling assets in years when their income is low, such as early retirement.

Furthermore, assets purchased after 12 May 2026 will be treated wholly under the new system, with no access to the 50% discount on any portion of the gain.

Investors who already hold shares bought before 12 May 2026 will receive transitional treatment: the 50% discount continues to apply to gains accrued up to 30 June 2027, with the new rules applying only to gains accruing after that date.

Who wins and who loses

The changes are not uniformly bad for ASX investors.

Indeed, for long-term holders in a period of sustained inflation, cost base indexation can actually produce a better outcome than the 50% discount.

Consider an investor who buys $10,000 of ASX shares today and holds them for 20 years through a period of sustained high inflation averaging 7% per annum.

The indexed cost base after 20 years would be approximately $38,700, meaning only $21,300 of a $60,000 sale price would be taxable under the new system.

That compares favourably to $25,000 taxable under the old 50% discount.

However, investors in low-inflation periods, or those who generate large nominal gains over short periods, will generally be worse off.

The superannuation silver lining

One of the most important aspects of the new rules is what they do not cover.

Capital gains on assets held inside superannuation are not affected by these changes.

Superannuation funds retain their existing one-third CGT discount on assets held for more than twelve months.

That makes superannuation an even more powerful long-term wealth-building vehicle relative to a brokerage account than it was before the budget.

For investors who are not yet maximising their concessional and non-concessional super contributions, the new CGT environment strengthens the case for doing so before 1 July 2027.

What it means for how ASX investors should think

The new rules create three important shifts in how Australian investors should approach ASX share ownership.

First, the window before 1 July 2027 is now an opportunity.

Investors holding shares with large embedded gains may consider whether to realise those gains before the new regime takes effect, locking in the 50% discount on all gains accrued to that date.

Second, buy-and-hold investing inside superannuation becomes more attractive than ever.

Third, the 30% minimum tax makes trust structures less advantageous for CGT planning.

William Buck notes that structuring decisions will become materially more complex for investors who currently hold assets through discretionary trusts.

What about fully-franked dividends?

One thing the budget did not change is the franking credit system.

Fully-franked dividends from ASX shares, including those paid by Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES), and BHP Group Ltd (ASX: BHP), remain fully tax-effective for Australian shareholders.

For income-focused investors who rely on dividend income rather than capital gains, the budget changes are largely neutral.

That may make high-quality, fully-franked dividend payers even more attractive relative to growth stocks in the post-2027 environment, as the tax advantage of capital gains versus dividend income narrows.

Foolish Takeaway

It is important to note that these changes are proposed but not yet legislated.

Detailed exposure draft legislation and ATO guidance are still to be released.

Nonetheless, the 50% CGT discount shaped a generation of Australian investing behaviour.

Its replacement will reshape it again.

The changes are not all negative, and for long-term super investors, they may matter less than the headlines suggest.

But for ASX investors holding large gain positions outside superannuation, the window before 1 July 2027 is now worth planning around.

The post Why Australia’s new capital gains tax changes could reshape how ASX investors build wealth appeared first on The Motley Fool Australia.

More reading

• Top 10 ASX shares bought and sold by investors in May
• Here are the top 10 ASX 200 shares today
• This ASX 300 stock is back in the spotlight after a US Army test
• 3 ASX tech shares I’d buy as they rebound from the AI selloff
• Worried about capital gains tax and ASX shares? Here’s why you shouldn’t be

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 Wesfarmers. 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.

S&P/ASX 200 Index (ASX: XJO) shares edged 0.76% higher in May amid no resolution for the war in Iran.

The global oil shock continued, with the Strait of Hormuz remaining effectively closed with scores of oil tankers stranded.

The Reserve Bank of Australia raised interest rates for a third time in 2026 last month due to resurgent inflation.

Softer-than-expected inflation data and 18,600 job losses in April suggest the RBA is unlikely to raise rates again this month.

The market expects the RBA to keep interest rates on hold at 4.35% on 16 June.

Changes to capital gains tax (CGT) proposed in the Federal Budget shocked some investors last month.

The 50% CGT discount for assets held for more than a year will be replaced by cost-base indexation and a minimum 30% CGT rate from 1 July 2027.

Existing investments in ASX shares and property will be grandfathered.

That means the 50% CGT discount will continue to apply to gains accrued before 1 July 2027 on those assets.

After 1 July 2027, cost base indexation will apply for future gains on those existing investments.

There is one exception under the changes. Investors who buy new properties will be able to choose between the two CGT methods.

Private wealth and investment advisory firm, Medallion Financial Group, says the changes may encourage more focus on yield.

For example, investors may prefer to accumulate more franked ASX dividend shares over growth investments.

Drew Meredith, a principal adviser at Wattle Partners, provides 5 tips for investors considering topping up their dividend stocks.

Most bought ASX shares in May

The following ASX shares and ETFs were the most bought by investors using the Bell Direct trading platform last month.

The rankings are based on order of net value of buy orders, minus sell orders, placed by Bell Direct clients.

Given the number of experts discussing the enhanced appeal of dividends under the CGT changes, it’s interesting to see the market’s largest ASX dividend ETF at the top of the buy list.

Rank	ASX share or ETF
1	Vanguard Australian Shares High Yield ETF (ASX: VHY)
2	Accent Group Ltd (ASX: AX1)
3	Vanguard Australian Shares Index ETF (ASX: VAS)
4	Vanguard MSCI Index International Shares ETF (ASX: VGS)
5	Amplitude Energy Ltd (ASX: AEL)
6	CSL Ltd (ASX: CSL)
7	Elders Ltd (ASX: ELD)
8	WiseTech Global Ltd (ASX: WTC)
9	4DMedical Ltd (ASX: 4DX)
10	Vanguard All-World ex-US Shares Index ETF (ASX: VEU)

Source: Bell Direct

Most sold ASX shares last month

Rank	ASX share
1	BHP Group Ltd (ASX: BHP)
2	Commonwealth Bank of Australia (ASX: CBA)
3	Fortescue Ltd (ASX: FMG)
4	Macquarie Group Ltd (ASX: MQG)
5	Westpac Banking Corporation Ltd (ASX: WBC)
6	PLS Group Ltd (ASX: PLS)
7	Smartgroup Corporation Ltd (ASX: SIQ)
8	Rio Tinto Ltd (ASX: RIO)
9	Telstra Group Ltd (ASX: TLS)
10	Woodside Energy Group Ltd (ASX: WDS)

Source: Bell Direct

The post Top 10 ASX shares bought and sold by investors in May appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 3 ASX tech shares I’d buy as they rebound from the AI selloff
• Are ASX 200 bank shares a buy in June?
• 3 ASX mining shares to buy: experts
• Why 4DMedical, IperionX, Pro Medicus, and Ventia shaares are storming higher today

Motley Fool contributor Bronwyn Allen has positions in BHP Group, Vanguard International Equity Index Funds – Vanguard Ftse All-World ex-US ETF, and Vanguard Msci Index International Shares ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Macquarie Group, Vanguard International Equity Index Funds – Vanguard Ftse All-World ex-US ETF, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Macquarie Group, Smartgroup, Telstra Group, and WiseTech Global. The Motley Fool Australia has recommended Accent Group, BHP Group, CSL, Elders, Vanguard Australian Shares High Yield ETF, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It was a volatile and ultimately negative start to the trading week for the S&P/ASX 200 Index (ASX: XJO) and ASX investors this Monday.

After starting the week’s trading at an opening loss this morning, the ASX 200 spent most of the day bouncing around, but ended up closing down 0.026%. That leaves the index at 8,729.4 points.

This cold-shower start to the trading week for Australian investors follows a rosier finish to the American week on Friday night (our time).

The Dow Jones Industrial Average Index (DJX: .DJI) was in decent form, rising a confident 0.72%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) wasn’t quite as enthusiastic, but still managed a 0.2% gain.

But let’s get back to this week and the local markets now, and check out how the various ASX sectors traversed today’s tough trading conditions.

Winners and losers

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

More reading

• 3 ASX tech shares I’d buy as they rebound from the AI selloff
• Worried about capital gains tax and ASX shares? Here’s why you shouldn’t be
• Why 4DMedical, IperionX, Pro Medicus, and Ventia shaares are storming higher today
• IperionX gains U.S. Army validation as titanium fasteners outperform steel
• Why are Pro Medicus shares rocketing 12% today?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband, Life360, Megaport, SiteMinder, 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 Life360, SiteMinder, WiseTech Global, and Xero. The Motley Fool Australia has recommended Aussie Broadband, 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.

IperionX Ltd (ASX: IPX) shares are in the green on Monday after the titanium tech company released new US testing results.

At the time of writing, the IperionX share price is up 2.74% to $5.99.

The stock pushed as high as $6.08 in morning trade before some investors took profit off the table.

Even after that pullback, IperionX shares are up 46% over the past month and more than 62% since this time last year.

Here’s the latest.

US testing puts titanium in focus

According to the release, IperionX has reported positive titanium fastener test results from 2 independent testing programs.

The programs were completed by the US Army DEVCOM Ground Vehicle Systems Center and Westmoreland Mechanical Testing & Research.

The tests compared IperionX titanium fasteners with high-strength SAE Grade 8 steel fasteners, which are used in demanding defence and industrial applications.

The main result came from IperionX’s larger 3/4-10 titanium fasteners, which demonstrated yield torque of 563 to 615 ft-lbf in US Army testing.

That compared with about 480 to 502 ft-lbf for high-strength Grade 8 steel fasteners under the same test program.

Based on the midpoint, IperionX said the result was nearly 20% above the steel benchmark.

The smaller 3/8-16 fasteners also performed well, achieving average yield torque above high-strength Grade 8 steel fasteners.

In another positive sign, 3 of the 5 IperionX titanium fasteners did not yield at the initial US Army test protocol limit.

What investors are watching

While today’s announcement doesn’t include new revenue, it does give investors another sign of progress with IperionX’s titanium technology.

The company is trying to prove its process can produce titanium parts that meet the demands of large industrial customers.

Fasteners are small parts, but they’re used in large numbers across defence, aerospace, marine, and industrial equipment.

IperionX said its titanium Ti-6Al-4V is typically 40% to 45% lighter than steel, which is one of the main reasons titanium is attractive in these markets.

The independent testing also showed yield strength of 135 to 137 ksi and ultimate tensile strength of 149 to 152 ksi.

IperionX said those results were above typical aerospace Grade 5 titanium fastener benchmarks.

Foolish Takeaway

IperionX has become one of the more closely watched mid-cap stocks on the ASX.

The company now has a market capitalisation of about $2.03 billion, so plenty of expectation is already built into the share price.

Today’s result is another step forward, but investors will want to see what comes next.

The key question is whether this can lead to bigger customer interest, and real revenue.

The post This ASX 300 stock is back in the spotlight after a US Army test appeared first on The Motley Fool Australia.

More reading

• Why 4DMedical, IperionX, Pro Medicus, and Ventia shaares are storming higher today
• IperionX gains U.S. Army validation as titanium fasteners outperform steel
• These were the best-performing ASX 200 shares in May
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

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