Author: openjargon

S&P/ASX 200 Index (ASX: XJO) shares are 0.25% higher at 9,075.3 points on Thursday.

As earnings season continues, brokers have lowered their ratings on several ASX 200 shares this week.

Let’s see a sample.

BHP Group Ltd (ASX: BHP)

The BHP share price is $65.29, up 2.5% today and up 56% over 12 months. 

Morgans downgraded BHP shares after the miner’s FY26 report.

The broker lowered its 12-month price target from $59.80 to $55.30.

This suggests a potential 15% downside ahead.

Northern Star Resources Ltd (ASX: NST)

The Northern Star Resources share price is $23.99, up 6.4% today and up 32% over 12 months. 

Citi downgraded the ASX 200 gold share to a hold call after the miner’s FY26 report.

The broker has a price target of $24.30, indicating just a 1% upside over the next 12 months.

Judo Capital Holdings Ltd (ASX: JDO)

The Judo share price is $1, down 1.8% today and down 45% over 12 months. 

Jarden downgraded the ASX 200 bank share to a sell rating after its FY26 report.

The broker has a $1.25 target, implying a potential 25% upside ahead.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price is $4.25, up 2.4% today and down 82% over 12 months. 

Morgan Stanley downgraded the ASX 200 consumer discretionary share to a hold rating on Thursday.

This followed the online furniture retailer’s FY26 report.

The broker has a 12-month price target of $4.23, suggesting a 13% upside from here.

Endeavour Group Ltd (ASX: EDV)

The Endeavour share price is $3.50, up 2.6% today and down 17% over 12 months. 

Bell Potter downgraded the ASX 200 consumer staples share to a hold call with a $3.60 target.

This followed the liquor and hotel operator’s unaudited preliminary results for FY26.

The target implies just 3% potential upside ahead.

QBE Insurance Group Ltd (ASX: QBE)

The QBE share price is $21.75, down 4% today and up 0.8% over 12 months. 

Jarden downgraded the ASX 200 financial share to a sell rating after the insurer’s 1H FY26 report.

The broker has a $20.30 target, indicating a 6% downside ahead.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is $7.50, down 0.7% today and up 17% over 12 months. 

Morgans downgraded the ASX 200 coal share from buy to hold after the miner’s FY26 report.

The broker reduced its 12-month price target from $8.50 to $8.05.

This implies a potential 7% upside ahead.

The broker said:

The effects of poor coal prices in the 1H provided a significant headwind for the full-year result.

FY27 guidance was softer than expected, with production growth appearing limited given the unchanged upper end of group guidance, while both costs and capital expenditure expectations have moved higher.

HomeCo Daily Needs REIT (ASX: HDN)

The HomeCo Daily Needs REIT is $1.15 per share, down 0.4% today and down 13% over 12 months. 

Jefferies downgraded the real estate investment trust (REIT) to a hold rating this week.

The change came after HomeCo’s FY26 report.

The broker lowered its price target from $1.44 to $1.30.

This suggests potential capital growth of 13% over the next year. 

Reliance Worldwide Corp Ltd (ASX: RWC)

The Reliance share price is $4.83, down 0.6% today and up 4% over 12 months. 

Jarden downgraded Reliance shares to a hold call after the company released its FY26 report and revealed a takeover offer of $4.75 per share.

The broker increased its target price from $4.25 to $4.75.

This implies a potential 8% upside ahead.

Imdex (ASX: IMD)

The Imdex share price is is $3.85, up 3.2% today and up 15% over 12 months. 

Imdex provides cloud-connected devices and solutions that help miners find, define, and mine ore bodies.

Bell Potter downgraded the ASX 200 materials share to a hold rating on Tuesday.

This followed Imdex’s FY26 report.

The broker reduced its 12-month price target from $4.60 to $4.

This suggest a potential 4% upside ahead.

The post 10 ASX 200 shares downgraded by analysts this week appeared first on The Motley Fool Australia.

More reading

• 7 ASX 200 shares with reaffirmed buy ratings this week
• My top 5 ASX 200 shares to buy and hold
• Why Megaport, Northern Star and Zip shares are turning heads on Thursday
• 2 ASX shares tipped to grow 40% or more in the next 12 months
• Here’s how experts view Whitehaven Coal and BHP shares after full-year results

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended  Jefferies Financial Group and Temple & Webster Group. The Motley Fool Australia has recommended BHP, HomeCo Daily Needs REIT and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX telco Telstra Group Ltd (ASX: TLS) was one of the earliest shares to get out of the gate with its latest numbers this earnings season. Unfortunately, the market wasn’t kind to the telco when those earnings were made public on 13 August.

As we covered at the time, Telstra’s share price dropped a hefty 3.2% on earnings day, and, at $4.70 a share at the time of writing, is now down almost 6% from where it was at market close on 12 August.

Perhaps investors were expecting better than the 0.8% drop in revenues that Telstra revealed, or the 4.9% bump in underlying net profit after tax (NPAT) of $2.5 billion.

But most investors who own Telstra shares do so not for this telco’s growth potential, but for its dividend income firepower.

For its entire history as a public company, Telstra has been renowned for its fat, and usually fully franked dividends. It is considered one of the ASX’s most reliable income payers, and usually offers a yield at the top end of what most ASX blue chips can offer.

So today, let’s discuss what kind of yield one can expect from buying Telstra shares today.

Telstra shares: What kind of dividend yield is on the table?

So, over the past 12 months, Telstra has forked out two dividend payments. The first was last September’s final dividend worth 9.5 cents per share. That one came with full franking credits attached. The second was March’s interim dividend, worth 10.5 cents per share. For the first time in a long time (perhaps ever), that dividend only came partially franked at 90.48%.

This annual total of 20 cents per share in dividends gives Telstra the 4.26% yield we see the telco trading at today.

However, now that we know what Telstra’s final dividend for 2026 looks like, we can update that figure. Last week, Telstra announced that its next dividend would be worth 10.5 cents per share. That’s a coincidental 10.5% hike over 2025’s final dividend, bringing it in line with March’s interim dividend. Like the payout, though, this one will also come partially franked at 90.48%.

This new annual total of 21 cents per share in dividends means we can assign Telstra a forward dividend yield of 4.46%. However, that will only hold if Telstra’s next interim dividend at least matches the one we saw back in March. Given this company’s track record, that seems very possible. But nothing is ever certain on the ASX. Let’s see what happens next year.

The post Buying Telstra shares? Here’s the yield you’ll get today appeared first on The Motley Fool Australia.

More reading

• Why I’d buy Telstra, Woolworths, and Macquarie shares
• Buy, hold, sell: Aristocrat, Telstra, ANZ shares
• How much do I need in my superannuation to earn $50,000 per year in passive income?
• How much could the Telstra share price rise in the next year?
• Reporting season half-time report: 5 lessons from August so far

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

It’s been an encouraging start to this Thursday’s trading for the S&P/ASX 200 Index (ASX: XJO). At the time of writing, the ASX 200 has advanced a confident 0.26% and is back over 9,070 points. Things aren’t so rosy for Fortescue Ltd (ASX: FMG) shares, though.

Fortescue is having a day to forget. At the time of writing, the big mining stock has retreated by 0.47% to $17.98 a share. That’s after closing at $18.06 yesterday.

It seems investors were not impressed by the miner’s latest earnings, which became public this morning before market open.

As we covered earlier today, there were still a few decent numbers in that report. For the 12 months to 30 June 202, Fortescue reported revenue growth of 9% to US$17 billion. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose 9% to US$8.6 billion, while underlying net profits after tax (NPAT) were up 3% to US$3.5 billion.

But let’s talk about the latest Fortescue dividend. After all, many ASX investors own this miner purely for its dividend prowess, which has been formidable in the past.

What does the new Fortescue dividend look like?

So, this morning, Fortescue announced that its final dividend for 2026 would come in at 46 cents per share. As is almost always the case with this miner’s payouts, this payment will come with full franking credits attached. This latest final dividend represents a significant reduction (23.3% to be precise) from the 60 cents per share final dividend that investors enjoyed last year.

It means Fortescue will dole out a total of $1.02 per share in fully franked dividends in 2026, a 2-cent drop over the $1.04 that shareholders bagged over 2025. That was assisted mightily by the fact that the company’s interim dividend from March (worth 62 cents per share) was a hefty hike over 2025’s interim payout of 50 cents.

Fortescue has nominated 1 September as this latest payout’s ex-dividend date. So investors have until the close of trading on 31 August to secure Fortescue shares if they wish to receive this payout.

Payday will then roll around on 29 September next month. Fortescue is running its dividend reinvestment plan (DRP) too. So if eligible shareholders wish to receive additional Fortescue shares in lieu of the traditional cash payment, they have until 3 September to opt in to the DRP.

Right now, Fortescue shares are trading on a trailing dividend yield of 6.79%. However, now that we know what Fortescue’s next payout will look like, we can assign a lower forward yield of 5.67% to its shares.

The post Everything you need to know about the new Fortescue dividend appeared first on The Motley Fool Australia.

More reading

• Why is the Fortescue share price on a rollercoaster today?
• Fortescue hits new records in FY26: profit up, dividends flow
• How much passive income could I earn from a $630,000 superannuation balance?
• How much do I need in my superannuation to earn $50,000 per year in passive income?
• Reporting season half-time report: 5 lessons from August so far

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.

Coles Group Ltd (ASX: COL) is one of those ASX shares that can be easy to overlook because the underlying business is so familiar.

Australians keep turning up for groceries each week, while Coles has spent years investing in how those groceries are moved, picked, and delivered.

With the shares trading around $23.17 on Thursday, does the current price still offer good value?

The shares carry a premium

According to CommSec, consensus earnings per share estimates stand at 90 cents in FY26, 96.6 cents in FY27, and $1.12 in FY28.

At the current share price, that puts Coles on a PE ratio of roughly 26 times forecast FY26 earnings.

I would certainly describe that as a premium valuation for a supermarket operator.

But I think looking only at the FY26 multiple misses an important part of the story.

Analysts are expecting earnings per share to increase by around 7% in FY27 before accelerating further in FY28. By then, forecast earnings would be almost 25% higher than in FY26.

If Coles delivers that growth, today’s valuation begins to look considerably more reasonable.

Using consensus estimates, its PE ratio would fall to 24 times in FY27 and around 21 times in FY28.

Where could that growth come from?

One reason I am comfortable with the forecasts is that Coles has already spent heavily on improving its operations.

Its automated distribution centres are designed to make replenishing stores more efficient, while its automated customer fulfilment centres are helping the company handle online grocery orders at greater scale.

These investments are now moving beyond the expensive implementation stage. Coles said at its half-year result that supermarket earnings benefited from the annualised contribution from its automated distribution centre program as well as the absence of major implementation and transition costs.

I think Coles is now in a better position to reap the benefits of that spending.

Coles does not need dramatic growth in grocery demand to increase earnings. Making an enormous existing business more efficient can have a meaningful impact when those improvements are spread across its store and supply chain network.

Online shopping provides another avenue. The investments Coles has made in fulfilment should allow it to serve more customers in the way they want to shop while improving the economics of that channel over time.

Dividends could grow as well

The consensus dividend forecasts are also moving in the right direction.

The market expects dividends per share of 75.5 cents in FY26, 82 cents in FY27, and 95.3 cents in FY28.

At the current price, these payouts represent dividend yields of 3.2%, 3.5%, and 4.1%.

I like that progression because it gives shareholders another way to benefit if the expected earnings growth comes through.

One thing to keep in mind

Investors will not have to wait long for an important update.

Coles is scheduled to release its FY26 results on 25 August.

That result could change analyst forecasts and therefore the valuation calculations above. I would pay particular attention to what management says about the benefits from automation, costs, consumer behaviour, and the outlook for the year ahead.

Foolish takeaway

I think the Coles share price offers reasonable value at around $23.17.

The shares are clearly priced at a premium, but I believe the expected earnings growth helps justify it. If earnings per share reach around $1.12 in FY28, the multiple investors are paying today comes down significantly without requiring the share price to do anything.

With a major result only days away, there could be some short-term movement ahead. But for investors looking several years into the future, I think Coles remains a share worth buying.

The post Is the Coles share price good value? appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares I’d buy if I could only check my portfolio once a year
• Reporting season half-time report: 5 lessons from August so far
• How to build a strong ASX retirement portfolio with 10 shares
• 7 ASX 200 shares downgraded by the experts this week
• 2 ASX blue-chip shares offering big dividend yields

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 reporting season continued in full swing on Thursday, with many more businesses posting their FY26 results. Among some of the biggest names are Zip Co Ltd (ASX: ZIP), APA Group Ltd (ASX: APA) and Dexus (ASX: DXS).

Let’s recap how the shares are tracking today and whether brokers rate them a buy, sell or hold.

Buy Zip shares

Zip posted a huge 57.9% increase in its cash EBTDA, a 24.7% increase in total revenue, and a 45.7% hike in its NPAT for FY26.

The company expects its cash EBTDA to climb even higher in FY27, by around 26% thanks to strong growth and greater scale across the business.

The announcement has been well received by investors who are rushing to snap up the buy now, pay later (BNPL) provider’s shares this morning.

At the time of writing, Zip shares are up a huge 17% and changing hands for $3.02 a piece. Today’s increase means the shares are now just 10% lower for the year-to-date and are just 0.5% below trading levels seen this time last year.

Experts are incredibly bullish about the outlook for Zip shares too. 

TradingView data shows all 13 analysts have a buy/strong buy rating on the shares. The average $4.19 target price implies a 40% upside ahead, at the time of writing. Although some are confident that Zip shares can climb another 88% to $5.59 within the next 12 months.

Hold APA shares

APA reported an 8.3% increase in underlying EBITDA as part of its FY26 results this morning, surpassing guidance. 

The company also announced a 3.2% increase in its free cash flow and 1.9% uplift in statutory revenue (excluding pass-through), and a 81.4% jump in statutory net profit.

APA is also guiding a higher underlying EBITDA of between $2,260 million and $2,340 million for FY27.

The news seems to have sat well with investors, but there isn’t a significant shift in the share price at the time of writing. APA shares are up around 1% for the day so far, and trading at $10.18 a piece. The shares are now around 13% higher for the year-to-date and 16% higher than a year ago.

It looks like the shares could now be around fair value, however. 

TradingView data shows sentiment is split between a hold and sell rating on APA shares. The average $9.45 target price implies a potential 7% downside at the time of writing.

Buy Dexus shares

Dexus reported adjusted funds from operations (AFFO) of $483.9 million and distributions of 37.0 cents per security, both matching previous guidance, as part of its FY26 results this morning.

Statutory net profit after tax was $482.2 million, and gearing remained at the lower end of the group’s target range.

For FY27, Dexus expects reduced earnings due to lower performance fees, an immaterial contribution from trading profits, and a smaller contribution from funds under review.

It looks like investors are disappointed with the results. At the time of writing, Dexus shares are down around 2.5% and changing hands for $5.66 a piece.

The shares are now down 19% for the year-to-date and are 24% lower than this time last year.

At the time of writing, the experts are still bullish that we could see a rebound from Dexus shares this year. But it’s possible that some may revisit their positions over the coming days following the company’s results announcement.

TradingView data shows that the majority currently have a buy/strong buy stance on Dexus shares. The average $6.55 target price implies a potential 15% upside at the time of writing.

The post Buy, sell, hold: Dexus, APA, Zip shares appeared first on The Motley Fool Australia.

More reading

• Why Megaport, Northern Star and Zip shares are turning heads on Thursday
• Dexus delivers steady FY26 results, maintains distributions, and advances strategy
• Zip Co reports record FY26 earnings and outlines growth strategy
• APA Group FY26 delivers strong earnings, pipeline expansion, and 22nd annual dividend increase
• 5 things to watch on the ASX 200 on Thursday

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

Stockland Corporation Ltd (ASX: SGP) shares are climbing higher into the green on Thursday.

At the time of writing, the shares are up around 2% and changing hands at $4.64 a piece. 

Today’s increase means the shares have now risen over 14% since the company posted its FY26 results ahead of the ASX open on Wednesday morning.

The property group reported a statutory profit up 20.2% to $994 million for FY26, and a 10.4% increase in post-tax Funds From Operations (FFO) to $892 million, hitting the top end of its guidance range.

Stockland announced a full-year dividend distribution steady at 25.2 cents per security, at a payout ratio of 69%. For FY27, the company expects to maintain the same 25.2 cents per security, dividend payment.  

Investors are clearly thrilled with the result and many rushed to buy the shares following the announcement yesterday. The rally has continued this morning, with many more buying into the stock, sending the share price higher again.

There is still a long way to go before Stockland shares can recoup the losses it shed in late-2025 and early-2026, but its certainly a step in the right direction.

Stockland shares are now down around 19% for the year-to-date and 24% lower than 12 months ago.

The question now is, can the shares keep climbing higher. Or has the property group’s shares now reached fair value?

Here’s what the experts think.

Analysts forecasts for Stockland shares over the next 12 months

If analysts’ predictions are anything to go buy, it looks like Stockland shares could be approaching fair value.

Market Index data shows that brokers are split between a buy and hold rating on the shares. But the $4.69 average target price implies a potential 1% upside at the time of writing.

Sentiment is a little more positive according to TradingView data. The majority (seven out of 10) have a buy/strong buy rating on Stockland shares, and another two rate the stock a hold. There is one sell rating.

The average 5.10 target price implies a potential 10% upside at the time of writing. But some are even more bullish and forecast the shares to climb another 26% to $5.80 over the next 12 months.

Ahead of the results announcement, the team at Shaw and Partners confirmed their hold rating on the ASX 200 property shares. They said the business is well positioned to benefit from Australia’s long term population growth and housing supply constraints, while its development pipeline supports future earnings growth.

The broker added that higher interest rates have created some short term headwinds across the property sector. However, Stockland’s robust balance sheet and quality asset portfolio provide resilience.

The post Are Stockland shares a buy after its FY26 results announcement? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Rate rises have finally caught house prices. What does that means for ASX property shares?
• Stockland profit up 20% as development surges: FY26 results and outlook
• Buy, hold, sell: Newmont, Stockland, NAB shares
• Here are the top 10 ASX 200 shares today

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.

Wam Microcap Ltd (ASX: WMI) is paying a dividend yield of 7.6%, or 10.9% including franking credits, despite reporting an operating loss for the full year.

The fund’s investment portfolio also underperformed, increasing just 0.1% for the year, while its benchmark, the S&P/ASX Small Ordinaries Accumulation Index, rose 8.1%.

Could do better, fund manager says

WAM Microcap Lead Portfolio Manager Oscar Oberg said regarding the result:

Following eight consecutive years of outperformance since listing, FY2026 was a challenging year for the WAM Microcap investment portfolio. The underperformance relative to the benchmark was primarily driven by our limited exposure to resources companies during a period of exceptionally strong performance from the sector, combined with stock selection that was not at the level we expect. The strongest headwind for the portfolio was the significant divergence between resources and industrial companies. While this positioning detracted from investment portfolio performance in FY2026, we believe our focus on identifying undervalued micro-cap industrial companies will continue to create opportunities for shareholders over the long term.

Mr Oberg said the managers believed the fund was well-positioned at the start of the financial year, and they remain confident in the opportunities in the microcap sector.

Since inception, WAM Microcap has increased 14.4% per annum, outperforming the S&P/ASX Small Ordinaries Accumulation Index by 7.4% per annum.

Dividend yield still looking healthy

Wam Microcap will pay its fully-franked dividend of 5.35 cents on October 29 to shareholders on the register on October 16.

The dividend is up slightly from 5.3 cents for the same period last year.

Some of the fund’s largest holdings include EDU Holdings Ltd (ASX: EDU), Artrya Ltd (ASX: AYA), and Echo IQ Ltd (ASX: EIQ).

The fund focuses on companies with a market capitalisation of less than $300 million at the time of acquisition.

Other Wilson funds also paying good dividend yields

The fund’s dividend yield is better than others in the Wilson Asset Management Stable, with WAM Strategic Value Ltd (ASX: WAR), WAM Active Ltd (ASX: WAA), and WAM Income Maximiser Ltd (ASX: WMX) all paying solid dividends, yet not up to that level.

WAM Strategic Value reported earlier this month that it would pay an increased, fully-franked dividend of 6.5 cents per share, up 8.3% on the previous year and representing a yield of 5.9%.

This increases to 8.4% once franking credits are factored in.

WAM Active is paying the same return as WAM Strategic Value; however, if you include capital gains, it returned 40.2% for the year to the end of June.

The post This fund just declared a dividend yield of better than 7% appeared first on The Motley Fool Australia.

More reading

• WAM Microcap hikes dividend for FY26 despite tricky year
• 2 ASX passive income ideas I’d use to generate $200 a month in 2027
• How much is needed in superannuation to target a $2,000 monthly passive income?
• This fund manager thinks these ASX shares are buys and have big potential!
• How much is needed in superannuation to target a $90,000 annual passive income?

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

I like exchange-traded funds (ETFs) because they can open the door to markets and industries that are harder to access through individual ASX shares.

There are a few funds I am watching presently because I can see a strong long-term reason for owning them.

Here are three currently on my watchlist.

Global X Semiconductor ETF (ASX: SEMI)

Semiconductors sit behind an enormous amount of modern technology.

Artificial intelligence has pushed chips further into the spotlight, but the opportunity extends across data centres, smartphones, vehicles, industrial automation, cloud computing, and connected devices.

The SEMI ETF provides exposure to 30 major companies involved in the development and manufacturing of semiconductors.

I like the idea of approaching this industry through an ETF because predicting which chip company will lead the next generation of technology is difficult.

Demand can also shift across the semiconductor supply chain. One period might favour chip designers, while another could benefit memory manufacturers or the companies producing the equipment needed to make advanced chips.

The SEMI ETF spreads the investment across established industry leaders, allowing investors to participate in the broader growth of semiconductor demand.

Technology spending can move in cycles, so I would expect plenty of volatility along the way. But over a long timeframe, I think increasingly powerful computing creates a strong reason to keep this fund on my watchlist.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The MOAT ETF takes an approach that closely resembles how I would think about selecting individual shares.

The fund invests in US companies that have sustainable competitive advantages and are trading at attractive prices relative to their fair value.

That combination catches my eye. A strong competitive position can come from factors such as brand strength, switching costs, network effects, or cost advantages. These characteristics can help a business protect profits and continue investing as competitors try to take market share.

The valuation element is also important. Even an excellent company can produce disappointing returns if investors pay too much for it.

I think having both considerations built into the investment process makes the MOAT ETF an interesting alternative to simply buying the largest US businesses by market capitalisation.

Vanguard FTSE Asia ex Japan Shares Index ETF (ASX: VAE)

The VAE ETF is on my watchlist because I think Asia could offer some exciting long-term opportunities.

The fund invests across Asian markets, excluding Japan, Australia, and New Zealand, providing access to economies such as China, India, Taiwan, and South Korea.

This brings exposure to areas such as semiconductor manufacturing, online commerce, financial services, industrial development, and rising consumer spending.

I think the semiconductor exposure is particularly interesting, with Taiwan and South Korea playing major roles in the global technology supply chain.

There is also a much broader story. Rising incomes across parts of Asia could support businesses serving increasingly wealthy consumers for many years.

The VAE ETF will come with political, regulatory, and currency risks that can create periods of volatility. But I think the size and long-term growth potential of the region still make it worth watching.

Foolish takeaway

I think all three ETFs offer exposure to areas with strong long-term growth potential.

Semiconductors, high-quality US businesses, and Asia’s economic development could all create attractive opportunities over the coming decade.

As a result, these are three funds I would be comfortable considering for a long-term investment.

The post Why these ASX ETFs are on my watchlist appeared first on The Motley Fool Australia.

More reading

• 3 strong ASX ETFs for smart investors to buy and hold
• Down 21% in six weeks, what’s happened to SEMI ETF?
• 3 strong Vanguard ETFs to buy with $3,000
• Should investors be targeting the semiconductor boom?
• 3 ASX tech shares on the verge of rocketing to the moon

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

Turning $10,000 into $100,000 sounds like a big goal, but compounding can do surprising things when it is given enough time.

If I assume an average annual return of 9% and no further contributions, the maths gives us a good idea of what the journey could look like.

How long would it take?

At a 9% annual return, $10,000 would grow to approximately $100,000 after 27 years.

Of course, it is worth remembering that the share market will not return exactly 9% every year. There will be strong years, weak years, and probably some uncomfortable falls along the way.

But I think it shows what long-term compounding can achieve when an investment is given enough time.

How would I target a 9% return?

If I were choosing individual ASX shares, I would focus on businesses I believe can steadily increase their value over many years.

I would look for strong competitive positions, opportunities to reinvest money at attractive returns, capable management, healthy balance sheets, and markets with room for growth.

I would also spread my money across several businesses rather than relying on one company to deliver the entire result.

For investors who would rather avoid stock picking, an index-tracking fund could provide a simpler route.

The Vanguard Australian Shares Index ETF (ASX: VAS), for example, seeks to track the S&P/ASX 300 Index and provides exposure to hundreds of Australian shares through one investment.

There is no guarantee that the VAS ETF, or the Australian market generally, will deliver 9% per year from here. But broad diversification and reinvesting dividends would allow investors to capture whatever long-term return the market provides.

Could $100,000 come sooner?

It certainly could if the portfolio achieves a higher return.

Warren Buffett provides an extraordinary example of what sustained outperformance can do.

Berkshire Hathaway (NYSE: BRK.B)’s per-share market value compounded at nearly 20% annually between 1965 and 2025, compared with 10.5% for the S&P 500 including dividends.

I think Buffett’s approach offers some valuable lessons. He is known to look for businesses he understands, durable competitive advantages, strong long-term economic prospects, and managers who act like owners. Buffett then aims to remain patient and let compounding unfold.

Those sound like straightforward ideas. Applying them successfully for decades is much harder.

Even professional investors regularly struggle to outperform. S&P Dow Jones Indices found that 87% of actively managed Australian Equity General funds failed to beat their benchmark over the 15 years to the end of 2025.

Buffett is an investing legend for a reason.

Foolish takeaway

I think $10,000 can become $100,000 without requiring a spectacular investment idea.

At an average return of 9%, the journey takes around 27 years. The ingredients are patience, sensible investments, reinvested returns, and enough discipline to stay invested when markets inevitably become uncomfortable.

Beating 9% could bring the finish line closer. However, I would treat that as a bonus rather than something my plan depends on.

The post How to turn $10,000 into $100,000 with ASX shares appeared first on The Motley Fool Australia.

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• How much do I need to retire on $100,000 a year at 60?
• Which is the best Vanguard ETF? VAS, VGS and VDHG compared
• $500 a month into ASX shares: Here’s what that could be worth in 20 years
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Motley Fool contributor Grace Alvino has positions in Vanguard Australian Shares Index 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.

Healthcare is one part of the ASX where I am happy to think several years ahead.

I like businesses with established positions in important areas of medicine and clear opportunities to reach more patients or healthcare providers over time.

Here are three shares I would be happy to buy.

CSL Ltd (ASX: CSL)

CSL is going through a major reset, but following the release of its results this week, I still believe the foundations of the business are strong.

The most important part of the long-term story remains CSL Behring. Demand for immunoglobulin (Ig) continues to grow, and management expects Ig sales to increase at a mid-to-high-single-digit rate in FY27. CSL is also investing around US$1.5 billion to expand its US plasma manufacturing presence and improve yields.

I think that investment makes sense because plasma products remain difficult to manufacture at scale. CSL has spent decades building its collection network, manufacturing expertise, and relationships with healthcare providers.

There are newer products to watch as well. Andembry generated US$240 million of sales in its first full year on the market, while Hemgenix continued to grow.

FY26 was messy, with large impairments and weaker performance in parts of the group. But management is simplifying CSL and expects underlying profit to return to growth in FY27.

I think a successful recovery could remind investors why CSL became one of Australia’s great healthcare businesses in the first place.

Cochlear Ltd (ASX: COH)

Cochlear is another company where the long-term opportunity interests me more than any one year of earnings.

A huge number of people with severe hearing loss could benefit from an implant but never receive one. Cochlear is trying to change that by making diagnosis, referral, and treatment more systematic, particularly for adults. I think that could be a powerful growth driver.

In the US, medical and professional channels currently account for only around 40% of adult cochlear implant referrals. Cochlear is working with clinicians to improve those pathways and make it easier for suitable patients to progress from diagnosis to treatment.

Product development gives me another reason to be positive. The Nucleus Nexa System became more than 95% of implant sales across developed markets by June. More importantly, the platform has been designed to support future developments including more personalised stimulation, a drug-eluting electrode, and eventually a totally implantable cochlear implant.

If Cochlear can make implants accessible to more people while continuing to improve the technology, I think the business has plenty of growth ahead.

Pro Medicus Ltd (ASX: PME)

Pro Medicus may have the clearest growth runway of the three.

Its Visage imaging software has become trusted by some of the largest healthcare systems in North America, yet management estimates it still has only around 11% of the US market. That leaves considerable room to keep winning customers.

What I like is how the opportunity is expanding once Pro Medicus gets through the door. Most of its new FY26 contracts included the full Visage stack, while customers are also beginning to add its cardiology offering.

The company signed $407 million of new contracts during FY26 and renewed every contract that came up for renewal, generally with higher minimums and transaction fees.

For me, that says a lot about how valuable the software has become to customers.

Foolish takeaway

I think healthcare can be a great place to look for businesses capable of compounding for many years because better treatments and technology can create value well beyond the next economic cycle.

That is what attracts me to these three shares. I would be comfortable buying them with the intention of giving their long-term opportunities plenty of time to develop.

The post Why I’d buy CSL, Cochlear, and Pro Medicus shares appeared first on The Motley Fool Australia.

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• 3 ASX 200 shares I’d buy for the next decade

Motley Fool contributor Grace Alvino has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Cochlear. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended CSL, Cochlear, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.