Author: openjargon

If you are new to investing and the stock market, getting started can be intimidating. There’s the jargon to get one’s head around to start with. And if you get past that, the sheer number of different companies to invest in can be overwhelming for a beginner who might just want to pick one, two or three to get started. That’s why I think any beginner investor should start with ASX exchange-traded funds (ETFs).

ETFs can be thought of as collections of different shares that trade under one overarching name (and ticker code). To illustrate, the most popular ETFs on the ASX are funds that hold the largest 200 or 300 companies on our stock market. That’s everything from Woolworths Group Ltd (ASX: WOW) and Telstra Group Ltd (ASX: TLS) to Ampol Ltd (ASX: ALD) and JB Hi-Fi Ltd (ASX: JBH).

If an investor just buys one ASX 200 ETF, they are really investing in the 200 companies that the ETF holds. These companies are updated periodically, meaning the beginner investor doesn’t ever have to worry about them again once they’ve bought the fund. If they don’t wish to, of course.

So today, I’ll discuss three ASX ETFs that are all a beginner investor needs to have a diversified portfolio of different stocks that will help to build real wealth over time. If an investor buys each fund, elects to reinvest all dividends received, and buys as many units (shares of ETFs) as they can, as often as they can, they are highly likely to increase their wealth dramatically over their lives. That’s if the past hundred years are anything to go off.

3 ASX ETFs that are perfect for a beginner investor

First off, we’ll start with an Australia-focused fund, the Vanguard Australian Shares Index ETF (ASX: VAS). This fund works as we discussed above. It holds the largest 300 shares listed on the Australian share market, with every name above included. Amongst many others. Australian shares have delivered healthy returns for decades, and this ETF is a great way to patriotically tap into that trend.

Next up, the iShares S&P 500 ETF (ASX: IVV) is a perfect addition to our portfolio. Instead of holding the largest 300 stocks on the Australian market, this fund holds the largest 500 listed over in the United States. The USA houses many, if not most of, the world’s best businesses, hands down. With this ETF, you’ll be indirectly buying companies ranging from Apple, Amazon and Microsoft to Coca-Cola Co, Mastercard and Ford Motor Company.

These are the companies that dominate global commerce, and, if legendary investor Warren Buffett is to be believed, will continue to do so. I think following Buffett’s advice is a sensible path for any beginner investor, so this ASX ETF joins our portfolio.

Finally, we have another Vanguard ETF, the Vanguard All-World ex-US ETF (ASX: VEU). This ETF plugs the giant gap in our portfolios’ diversification by branching out beyond just Australia and the US. And branch out it does. This ASX ETF holds thousands of underlying companies, hailing from dozens of different countries. These span from China, India, Brazil and Spain to Taiwan, Singapore, South Africa and Canada.

Over long periods of time, we sometimes see some markets thrive while others suffer. Holding this ETF mitigates some of that risk, as well as providing some potential protection if a country-specific issue affects the US or Australian economies.

Foolish takeaway

These three ASX ETFs together cover most corners of the global economy and form a well-diversified portfolio. All three are passive, hands-off investments that require little ongoing effort or even thought. That, in my view, makes them perfect choices for a beginner investor.

 

The post Simple, easy investing: These 3 ASX ETFs are all a beginner needs appeared first on The Motley Fool Australia.

More reading

• The ETF portfolio I’d build if I never wanted to watch markets again
• Is the Vanguard Australian Shares Index ETF (VAS) the best way to invest in ASX shares?
• Why these ASX ETFs could be better than buying CBA shares
• Where to invest $250 in ASX ETFs this month
• These are the ASX ETFs I would buy if the market crashed tomorrow

Motley Fool contributor Sebastian Bowen has positions in Amazon, Apple, Coca-Cola, Mastercard, Microsoft, and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, Mastercard, Microsoft, Vanguard International Equity Index Funds – Vanguard Ftse All-World ex-US ETF, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended Telstra Group and Woolworths Group. The Motley Fool Australia has recommended Amazon, Apple, Mastercard, 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.

Are you on the hunt for some big returns for your investment portfolio? If you are, then it could be worth looking at the ASX 200 shares listed below.

That’s because they have been tipped to rise at least 20% over the next 12 months. Here’s what analysts are recommending:

Boss Energy Ltd (ASX: BOE)

Analysts at Bell Potter remain upbeat on this ASX 200 uranium share despite its bitterly disappointing update last week.

The broker believes there could be a way to make the Honeymoon project work in 2027 and beyond. And investors may not have to wait too long to find out if that is the case. It said:

Details as to the hypothesised strategy may be provided as early as 2QCY26, with a wide-spaced test scenario to be conducted initially on zones north of the Honeymoon domain. This should provide greater clarity around the potential success of the approach. Should this fail, the likely outcome would be a lower production profile over LOM with higher AISC (which if you’re bullish uranium pricing might not impact the thesis). The selloff has highlighted one possibility. If the market continues to value Honeymoon at a material discount (on our numbers current implied value is ~A$91m), BOE may become a target for groups ISR experience and a longer outlook on uranium pricing.

Bell Potter has put a buy rating and $2.00 price target on its shares. Based on its current share price of $1.32, this suggests that upside of 50% is possible between now and this time next year.

Lovisa Holdings Ltd (ASX: LOV)

The team at Macquarie Group Ltd (ASX: MQG) thinks that fashion jewellery retailer Lovisa could be an ASX 200 share to buy.

The broker believes that the market is undervaluing its shares based on its growth potential, which is being supported by its bold store rollout plan. It said:

We think LOV & UNI both have a strong outlook that isn’t reflected in their current valuations. Both stocks have de-rated over FY26 so far, and are now trading broadly in-line with their long-run average Relative P/Es to the ASX300 – despite the above data indicating relatively low macroeconomic risk, and our view that both stocks still have appealing store rollout stories (UNI: Australia, LOV: UK/US).

Macquarie currently has an outperform rating and $37.30 price target on its shares. Based on the current Lovisa share price of $30.50, this implies potential upside of 22% for investors over the next 12 months.

The post These ASX 200 shares could rise 20% to 50% appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Brokers name 3 ASX shares to buy today
• Top picks! Macquarie says these ASX stocks can rise 20% to 30%
• Why Boss Energy, Paragon Care, Treasury Wine, and Woodside shares are falling today
• Boss Energy shares crash 22% on devastating news

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

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Warren Buffett’s company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), reminds me of Scrooge from The Christmas Carol. It’s a miserly company when it comes to returning cash to its shareholders. The conglomerate hasn’t paid a dividend since 1967 and hasn’t repurchased any of its stock in five straight quarters. As a result, it sat on a record cash position of $381.7 billion at the end of the third quarter.

However, Berkshire Hathaway‘s stinginess could end in 2026 when Buffett steps down as CEO and turns over the reins to Greg Abel. Here’s why initiating a dividend payment next year makes sense. 

Why Berkshire has been so stingy over the years

Berkshire Hathaway has opted against paying dividends for most of Warren Buffett’s tenure. He and his former business partner, Charlie Munger, preferred to retain 100% of the company’s earnings. That provided them with the cash to acquire additional operating businesses and invest in publicly traded stocks. They believed that they could earn a higher return for shareholders by reinvesting the company’s retained earnings.

Their strategy has certainly paid off over the years. Berkshire Hathaway has produced a staggering 6 million percent return since Buffett took over the company in 1965. That has far outpaced the S&P 500‘s 46,000% return during that time frame.

Buffett and his team have used the income generated by Berkshire’s operating businesses to buy some great companies over the years, including GEICO, BNSF, and See’s Candies. They’ve also made some terrific stock investments, such as Coca-Cola and Apple.

A waning appetite for new investments

While Buffett hasn’t had a problem finding opportunities to invest capital throughout most of his tenure, the value-focused investor has found fewer investments to his liking in recent years. Berkshire has sold more stocks than it bought for its equity portfolio in each of the last dozen quarters. These stock sales, which have included trimming its Apple position, have contributed to the rise in its cash position. Meanwhile, Buffett hasn’t found too many acquisition opportunities either. Berkshire’s recently announced $9.7 billion deal to buy Occidental Petroleum‘s chemicals subsidiary, OxyChem, is its largest since acquiring insurance company Alleghany Corporation for $11.6 billion in 2022.

Instead, Berkshire has let the cash pile up on its balance sheet, which has allowed it to capitalize on higher interest rates in recent years. The company held about $360 billion of T-bills at the end of the third quarter, which was more than the Federal Reserve’s $195 billion. With rates around 3.8%, Berkshire Hathaway is generating meaningful interest income from this investment. However, rates have fallen considerably over the past year, eating into the income Berkshire can generate from its cash.

Why 2026 could be the year of the dividend

With Buffett stepping down as CEO in 2026, Berkshire Hathaway might alter its capital allocation strategy. The company’s cash position has continued to build at a time when interest rates are falling, a trend that could persist into 2026. Meanwhile, the company isn’t finding enough new investment opportunities to put its growing cash pile to work.

That’s why initiating a dividend would make a lot of sense. The company generated an operating profit of $13.5 billion in the third quarter, up from $10 billion in the prior-year period. Meanwhile, its net income, which includes gains and losses on its stock portfolio, has risen from $26.3 billion to $30.8 billion.

Given the company’s earnings, it could easily pay over $20 billion in dividends annually, or less than a quarter of its operating profit. It could fund that payment level with its cash position alone for nearly two decades. In other words, it wouldn’t lose any of its capacity to capitalize on a future downturn.

It’s time for Berkshire to stop being a Scrooge

Berkshire’s strategy of retaining all of its earnings made sense when Buffett and Munger were able to find attractive opportunities to reinvest that cash. However, with Munger passing and Buffett passing the torch to Abel, it’s time for the company to change its capital allocation strategy, as it is no longer finding good investment opportunities. Paying a dividend makes a lot of sense. It wouldn’t consume much of the company’s cash and would provide shareholders with some income that they could reinvest or spend as they see fit.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Berkshire Hathaway is a Scrooge stock. Will it have a change of heart and start paying dividends in 2026? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• As Warren Buffett steps down from the CEO role at Berkshire Hathaway, it’s the end of an era. 3 powerful pieces of his advice to remember.
• A new leadership group is emerging at Berkshire Hathaway. Here are some changes that could be in store for Warren Buffett’s massive holding company.
• As 2026 gets closer, Warren Buffett’s warning is ringing loud and clear. Here are 3 things investors should do.
• Would Warren Buffett buy Global X Fang+ ETF (FANG) units?
• What Warren Buffett’s latest portfolio moves say about the market

Matt DiLallo has positions in Apple, Berkshire Hathaway, and Coca-Cola and has the following options: short January 2026 $265 calls on Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple and Berkshire Hathaway. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Occidental Petroleum. The Motley Fool Australia has recommended Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Constantly checking markets, reacting to headlines, and second-guessing investment decisions is exhausting. And for most investors, it is unnecessary.

History shows that long-term wealth is rarely built by trading in and out of the market. It is built by owning quality assets, staying invested, and letting time do the heavy lifting.

The good news is that’s exactly where a simple exchanged traded fund (ETF) portfolio can shine.

If my goal was to invest once, add money when I could, and then largely ignore the day-to-day noise, this is the ASX ETF portfolio I would build.

A strong foundation in Australian shares

My first pick would be the Vanguard Australian Shares ETF (ASX: VAS).

This ETF gives exposure to the 300 largest shares listed on the ASX, including household names like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), CSL Ltd (ASX: CSL), Wesfarmers Ltd (ASX: WES), and Woolworths Group Ltd (ASX: WOW). These businesses collectively represent a huge portion of the Australian economy.

Importantly, given its vast number of holdings, it removes the need to guess which Australian shares will outperform. You simply own the market.

US exposure

Next, I would add the iShares S&P 500 ETF (ASX: IVV).

This ETF tracks the 500 largest stocks on Wall Street, giving instant exposure to global leaders across technology, healthcare, consumer goods, and industrials. Its holdings include stocks such as Microsoft Corp (NASDAQ: MSFT), Johnson & Johnson (NYSE: JNJ), Walmart (NYSE: WMT), and Nvidia Corp (NASDAQ: NVDA).

This means that by owning this fund, you are holding a slice of some of the world’s strongest businesses without needing to decide which individual stocks will win.

The US market has been one of the best performers in history. And given the quality on offer across the Pacific, it would not be a surprise if this trend continued.

Global diversification

To complete the portfolio, I would include the Vanguard MSCI Index International Shares ETF (ASX: VGS).

This ETF invests in developed markets outside Australia, spreading capital across Europe, Japan, and other major economies. Its holdings include well-known companies like Nestle (SWX: NESN), Roche Holding AG (SWX: ROG), Toyota Motor Corp, and LVMH Moët Hennessy Louis Vuitton (FRA: MO).

This ETF helps reduce reliance on any single country or economy. If Australia or the US underperforms for a period, other regions can help balance returns.

The post The ETF portfolio I’d build if I never wanted to watch markets again appeared first on The Motley Fool Australia.

More reading

• Is the Vanguard Australian Shares Index ETF (VAS) the best way to invest in ASX shares?
• Why these ASX ETFs could be better than buying CBA shares
• Where to invest $250 in ASX ETFs this month
• These are the ASX ETFs I would buy if the market crashed tomorrow
• Why Australian small-cap shares are shining

Motley Fool contributor James Mickleboro has positions in CSL and Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Microsoft, Nvidia, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson, Nestlé, and Roche Holding AG and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended Woolworths Group. The Motley Fool Australia has recommended BHP Group, CSL, Microsoft, Nvidia, Vanguard Msci Index International Shares ETF, Wesfarmers, 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.

CSL Ltd (ASX: CSL) shares are a popular option for Aussie investors and it isn’t hard to see why.

The biotech giant has long been regarded as one of the highest-quality businesses on the Australian share market.

However, after a difficult period marked by trade tariff pressures, plasma collection challenges, falling influenza vaccine rates, and cautious sentiment toward healthcare stocks, its share price has fallen a long way from its highs.

CSL shares ended last week trading at $175.08, down materially from their 52-week high of $290.32.

But while 2025 has been disappointing, what could lie ahead for shareholders over the next five years? Let’s take a look.

The near-term recovery case for CSL shares

According to analysts at UBS, CSL shares are materially undervalued at current levels. The broker recently put a buy rating and a $275.00 price target on them. That implies almost 60% upside over the next 12 months if the broker is on the money with its recommendation.

Short-term rebounds are one thing, but CSL’s real appeal has always been its ability to compound over long periods.

For much of the past two decades, the company delivered double-digit annual earnings growth, supported by rising global demand for plasma-derived therapies and a deep research pipeline.

Let’s assume that after its shares reach $275.00 again, CSL gets back to its more familiar rhythm and delivers a return of 10% per annum for the following four years.

That’s not heroic by CSL’s historical standards, but it reflects a mature, high-quality global healthcare leader delivering solid and steady earnings growth year after year.

If that were the case, a starting share price of $275 growing at 10% per year for four years would rise to roughly $400.

Putting it into perspective

From today’s share price of $175.08, a move to around $400 over five years would more than double an investor’s money. And that’s before dividends.

That equates to an annualised return comfortably above the long-term market average, driven by a mix of valuation recovery and steady compounding.

Of course, this outcome is far from guaranteed. CSL will still need to execute its strategy well, deliver on its cost reductions, and continue innovating in a competitive global healthcare landscape. But if it does what it has done many times before, the next five years could look far brighter than the last couple.

For patient investors, the current weakness may end up being remembered as an incredible opportunity to buy a high-quality stock at a dirt-cheap price. But time will tell if that is the case.

The post Where will CSL shares be in 5 years? appeared first on The Motley Fool Australia.

More reading

• 5 ASX shares I’m avoiding this week
• Why these 2 battered ASX 200 stocks could shine in 2026
• Looking for ideas before Christmas? These 2 ASX shares stand out to me
• CSL and more blue-chip ASX 200 bargains I’d buy before 2026
• Forget CSL shares, I’d buy this booming biotech stock instead

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. 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.

It is fair to say that Accent Group Ltd (ASX: AX1) shares have had a brutal run.

The footwear and apparel retailer is now trading at just 93 cents, down 62% from its 52-week high of $2.46, and sentiment around the footwear retailer could hardly be worse.

But when a profitable, cash-generative business falls this far, the key question for investors becomes simple. Is this a value trap or a rare long-term buying opportunity hiding in plain sight?

What went wrong?

The company disappointed the market with a FY 2026 trading update last month that came in well below expectations.

For the first 20 weeks of the financial year, Accent reported group-owned sales tracking well below the market’s estimates. It also revealed that its gross margin had fallen 160 basis points year to date.

Management blamed this on challenging retail market conditions, including ongoing promotional activity.

As a result, its FY 2026 EBIT guidance was cut to between $85 million and $95 million, which was around 23% below market expectations at the time according to a note out of Bell Potter.

Attractive dividend yield

Despite its earnings downgrade, Accent remains profitable and cash generative.

Bell Potter is forecasting fully franked dividends of 5.3 cents per share in FY 2026, rising to 7 cents per share in FY 2027, and then 8.1 cents per share in FY 2028.

At today’s share price, this represents attractive dividend yields of 5.7%, 7.5%, and 8.7%, respectively.

For patient income investors, that kind of yield from a national retail leader is hard to ignore.

Cheap valuation

On Bell Potter’s numbers, Accent is trading on an FY 2026 price to earnings (P/E) ratio of roughly 13x. It then falls close to 10x on FY 2027 forecasts.

That multiple clearly reflects low confidence in near-term earnings, but it also assumes little value from any recovery in consumer spending or margin normalisation.

It also doesn’t appear to place much value on the roll out of the Sports Direct brand in Australia.

Accent has begun its roll out Sports Direct stores in Australia in partnership with Frasers Group, with the first store opening in November and at least three more planned in FY 2026.

Bell Potter notes a six-year target of around 50 stores, positioning Accent to increase exposure to a more resilient sportswear category.

While this initiative is unlikely to move the needle immediately, if executed well, it could reshape the earnings profile of the business over the next decade.

All in all, I think this could be a great time to make a patient investment in Accent shares while they are down in the dumps.

The post Down 60% with a 6% yield and P/E of 13x – are Accent shares a generational bargain? appeared first on The Motley Fool Australia.

More reading

• Looking for ideas before Christmas? These 2 ASX shares stand out to me
• Here’s how another $5,000 invested in this high-yield ASX 200 star could boost my dividend income over time!
• 3 buy-rated ASX 300 shares at 52-week lows
• Why I think this ASX small-cap stock is a bargain at 96 cents
• ASX retail shares: 2 to buy and 1 to sell amid rising inflation

Motley Fool contributor James Mickleboro has positions in Accent Group. 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 Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Vanguard Australian Shares Index ETF (ASX: VAS) is the most popular exchange-traded fund (ETF) for accessing ASX shares. The fund has around $22 billion of investor money allocated to it.  

But, being the biggest doesn’t necessarily mean it’s the best choice for Aussie investors.

Vanguard is one of the world’s best ETF providers, in my opinion. It wants to offer investors investment funds that give exposure to shares (and bonds) with very low fees.

There are a number of good reasons to want to invest in the VAS ETF, such as its low fees, the diversification on offer and a solid dividend yield. But, depending on why Aussies are picking the Vanguard offering, there are other options that could fit the bill even better.

Fees

Arguably, the most appealing aspect of the Vanguard Australian Shares Index ETF is that its annual management fee is just 0.07% per year. That’s close to nothing!

Low costs are great because it means more of the returns and fund value are left in the hands of the investor. There are no performance fees either.

While the VAS ETF is one of the cheapest options on the ASX, there is an even cheaper option: BetaShares Australia 200 ETF (ASX: A200). The BetaShares offering has an annual fee of just 0.04%, which is even closer to nothing.

Interestingly, at the time of writing, the A200 ETF’s return has slightly outperformed the VAS ETF over the last three years and five years. Of course, past outperformance doesn’t mean it’ll continue.

Diversification

Another positive characteristic of the VAS ETF is its diversification.

The Vanguard fund owns 300 businesses because it tracks the S&P/ASX 300 Index (ASX: XKO), an index of 300 of the largest companies on the ASX. That’s seemingly a good level of diversification.

It owns names like Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), ANZ Group Holdings Ltd (ASX: ANZ), Wesfarmers Ltd (ASX: WES), CSL Ltd (ASX: CSL), Macquarie Group Ltd (ASX: MQG), Goodman Group (ASX: GMG) and Telstra Group Ltd (ASX: TLS).

However, the largest businesses have a very big weighting on the ASX, making it seem less diversified than it looks.

Those ten names I mentioned above account for around 44% of the VAS ETF portfolio and the other 290 names make up the other 56%.

Additionally, around 54% of VAS ETF is invested in just ASX financial shares and ASX mining shares. Ideally, it’d be useful if other sectors had a larger allocation.

VanEck Australian Equal Weight ETF (ASX: MVW), as the name of suggests, owns a portfolio of names that it aims to provide investors with an equal weighting to. It’s not strongly exposed to any single ASX share or sector.

The MVW is currently invested in 72 names such as Evolution Mining Ltd (ASX: EVN), Northern Star Resources Ltd (ASX: NST), South32 Ltd (ASX: S32), Whitehaven Coal Ltd (ASX: WHC), Reece Ltd (ASX: REH) and Orica Ltd (ASX: ORI).

The VAS ETF is not as diversified as it could be. I’m not suggesting to replace the VAS ETF with the MVW ETF, but they could work well together to reduce the exposure to a few large businesses.

Dividend yield

One advantage of ASX blue-chip shares over international shares is their typically higher dividend yield. According to Vanguard, the VAS ETF has a dividend yield of 3.1%, with franking credits a bonus on top of that yield.

But, there’s a Vanguard offering that tries to provide investors with an even higher dividend yield. The Vanguard Australian Shares High Yield ETF (ASX: VHY) invests in businesses that have higher forecast dividends compared to other ASX shares.

The VHY ETF has a dividend yield of 4.3% excluding franking credits and 5.8% including franking credits, which is noticeably stronger than the VAS ETF. So, the high-yield option could be a better idea for income-focused investors.

Overall, the VAS ETF is still a very effective option for Australians and has positive aspects. But, I think it’s useful to assess whether there’s an even more appealing option, depending on someone’s objectives.

The post Is the Vanguard Australian Shares Index ETF (VAS) the best way to invest in ASX shares? appeared first on The Motley Fool Australia.

More reading

• Why these ASX ETFs could be better than buying CBA shares
• These are the ASX ETFs I would buy if the market crashed tomorrow
• 3 ASX ETFs to generate passive income in retirement
• Why Australian small-cap shares are shining
• Forget Westpac shares, these ASX ETFs could be better buys

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 CSL, Goodman Group, Macquarie Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie Group and Telstra Group. The Motley Fool Australia has recommended BHP Group, CSL, Goodman Group, Vanguard Australian Shares High Yield ETF, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are a number of very attractive ASX shares that are growing revenue and earnings at a strong pace. We’re going to look at three names that are predicted to deliver double-digit returns.

I like to look at smaller businesses as potential opportunities because of how much earlier on in their growth journeys they are compared to a name like Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP).

Let’s take a look at two of the most promising ASX share for 2026.

Judo Capital Holdings Ltd (ASX: JDO)

Broker UBS describes Judo as a fast-growing challenger that focuses exclusively on servicing small and medium enterprises (SMEs). It offers business loans, lines of credit, asset finance, bank guarantees and SME home loans, funded by a combination of term deposits and wholesale funding.

After seeing the company’s trading update at the AGM, UBS was optimistic with a buy recommendation and a price target of $2.20. That implies a possible rise of 26% over the next year, at the time of writing.

UBS said that Judo’s net interest margin (NIM – how much profit it makes on lending in percentage terms including the cost of funding) – guidance of more than 3% is helped by deposits, competition and funding mix improvements.

Judo is offering more term deposit durations, such as five, seven and eight-month terms that provide more stability and maturity opportunities.

UBS said new business origination “looks strong” and Judo is expected to have a strong end to 2025, which are usually seasonally-strong months. Agri and regional lending is “doing a lot of the heavy lifting” in terms of where growth is coming from.

The ASX share had an overall lending pipeline of around $1.9 billion at the time of the AGM, with Judo expecting between 80% to 90% of that to convert in the subsequent months.

UBS projects the company could generate $131 million of net profit in FY26 and reach $270 million of net profit by FY30.

Zip Co Ltd (ASX: ZIP)

Zip is one of the world’s larger buy now, pay later businesses with a presence in ANZ and the US.

UBS was very impressed by Zip’s FY26 first quarter update, with a buy recommendation and a price target of $5.40. That implies a possible rise of 75% over the next year, if that comes true.

The broker noted that US growth has accelerated in FY26, with first-quarter growth of 47% in US dollar total transaction value (TTV) terms.

UBS said Zip said is now expecting US TTV to grow by more than 40% in FY26.

The broker believes the progress in the first quarter of FY26 sets it up well for the important sector quarter, with “continued proof of engagement growth (spend per customer, higher AOV [average order value] and frequency)”, according to UBS.

While the ASX share is seeing strong US growth, it’s also seeing a trending-higher US loss rate, though this “makes sense given greater growth from new customers…and is still at a comfortable level balancing growth and profitability.”

The ANZ metrics are “strong”, though receivables growth “continues to lag stronger TTV growth” and the broker is forecasting a catch-up from here onwards.

UBS predicts that Zip could generate net profit of $86 million in FY26 and reach $385 million by FY30.

The post 2 great ASX shares to buy for 2026: experts 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 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.

There’s no denying the appeal of Commonwealth Bank of Australia (ASX: CBA) shares. It is one of the most widely held shares in the country, pays reliable dividends, and has long been seen as a cornerstone investment for Australian portfolios.

But popularity doesn’t always equal superiority. At today’s valuations, investors may want to consider whether a diversified ETF approach could offer a better balance of growth, income, and risk than owning CBA shares alone.

Here’s why some ASX ETFs could stack up more favourably.

Valuation risks

CBA has often traded at a premium to its peers, and that premium reflects very high expectations. When a stock is priced for perfection, future returns can become constrained, even if the business continues to perform well.

ETFs, by contrast, spread valuation risk across dozens, or even hundreds, of stocks. For example, the Vanguard Australian Shares ETF (ASX: VAS) gives investors exposure to the entire local market, including banks, miners, healthcare leaders, and industrials. If one sector becomes overvalued, others can help offset that risk.

Rather than relying on a single bank to keep delivering, investors benefit from the broader earnings power of the Australian economy.

Better growth exposure outside banking

CBA is a mature business operating in a heavily regulated industry. While it can deliver steady profits, its long-term growth rate is naturally limited by credit growth, margins, and regulation.

ETFs such as the iShares S&P 500 ETF (ASX: IVV) provide exposure to some of the world’s fastest-growing global companies, including Apple Inc (NASDAQ: AAPL), Microsoft Corp (NASDAQ: MSFT), and Nvidia Corp (NASDAQ: NVDA). Over time, global innovation, productivity gains, and technology adoption have driven stronger growth than most domestic banks can realistically achieve.

For investors focused on wealth creation rather than just stability, this broader growth exposure can be a meaningful advantage.

Quality option

Some investors buy CBA because they want quality and reliability. The good news is that ETFs can deliver this too. Importantly, that is without tying your fortunes to one company.

The VanEck Morningstar Wide Moat ETF (ASX: MOAT) focuses on businesses with sustainable competitive advantages and fair valuations. This is a concept closely aligned with Warren Buffett’s investing philosophy.

Its holdings include stocks such as Adobe Inc (NASDAQ: ADBE), Nike Inc (NYSE: NKE), and Thermo Fisher Scientific Inc (NYSE: TMO), which benefit from strong brands, high switching costs, or scale advantages.

Instead of betting on one bank maintaining its dominance, investors gain access to a portfolio of global leaders with long-term pricing power.

The post Why these ASX ETFs could be better than buying CBA shares appeared first on The Motley Fool Australia.

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• 5 ASX shares I’m avoiding this week
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Motley Fool contributor James Mickleboro has positions in Nike and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe, Apple, Microsoft, Nike, Nvidia, Thermo Fisher Scientific, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft, long January 2028 $330 calls on Adobe, short January 2026 $405 calls on Microsoft, and short January 2028 $340 calls on Adobe. The Motley Fool Australia has recommended Adobe, Apple, Microsoft, Nike, Nvidia, VanEck Morningstar Wide Moat 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.

GrainCorp Ltd (ASX: GNC) shares suffered a horrible week last week. 

The company is an integrated grain and edible oils business. 

It is the largest grain storage and handling business in ECA and the number one edible oil processor and oilseed crusher in Australia and New Zealand.

On Wednesday, its stock price fell as much as 20%, before recovering to end the day down 12%. 

Its share price fell again on Thursday and Friday, to end the week down more than 16%. 

Why did the share price fall?

Shareholders were dumping GrainCorp shares last week after it announced the sale of non-core asset GrainsConnect Canada. 

According to the media release, GrainCorp and Zen-Noh Grain Corporation have agreed to sell their joint venture GrainsConnect to Parrish & Heimbecker for C$150 million on a cash-free, debt-free basis, following a strategic review prompted by challenging financial performance. 

GrainCorp expects to recognise a loss of approximately A$5–10 million, with no impact on its through-the-cycle EBITDA, and completion of the transaction is anticipated in the first half of 2026.

GrainCorp’s Managing Director and CEO, Robert Spurway, commented:

This transaction reflects GrainCorp’s ongoing commitment to portfolio optimisation and our readiness to rationalise assets where necessary to improve returns.

Divestment of GrainsConnect allows GrainCorp to focus on alternative value-creating opportunities that are in the best interests of our shareholders.

Following the sell-off, there could be an opportunity for investors to swoop in and snap these shares up at a discount. 

Here’s Morgans view. 

GrainCorp shares oversold

In a note out of Morgans on Thursday, the broker said grain receivals have been lower than expected and the grain trading margin environment has deteriorated. 

We have reduced our below consensus FY26 EBITDA forecast by 7%. With payments to the insurer no longer required in big crop years, GNC’s strong fixed cost leverage should return when crop production issues around the world ultimately eventuate.

The team said while GrainCorp is lacking near-term share price catalysts, it believes the stock has been oversold. 

Morgans maintains its accumulate recommendation with a new price target of A$8.05.

From Friday’s closing price of $7.04, this indicates an upside of 14.35%. 

Morgans isn’t the only broker suggesting GrainCorp shares could be a value. 

Macquarie has a price target of $8.30, suggesting roughly an 18% upside. 

The post What is Morgans’ view on GrainCorp shares after monster sell-off? appeared first on The Motley Fool Australia.

More reading

• Macquarie tips more than 20% returns for this ASX 200 stock after a sharp sell-off this week
• Why DroneShield, Graincorp, Treasury Wine, and Woodside shares are sinking today
• Guess which ASX 200 stock is crashing 20% today
• GrainCorp sells GrainsConnect Canada and updates on FY26 crop volumes
• Macquarie names 3 top dividend-paying ASX 200 shares to buy today

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.