Category: Stock Market

Exchange traded funds (ETFs) are growing in popularity and it isn’t hard to see why.

They provide a simple way to invest, eliminating the need to choose individual shares.

But which ASX ETFs could be worth considering in 2026? Let’s take a look at five funds that are highly rated for a reason. They are as follows:

iShares S&P 500 ETF (ASX: IVV)

The first ASX ETF to consider is the iShares S&P 500 ETF.

With a single investment, this fund provides access to a large slice of the US share market, which remains home to many of the world’s strongest companies.

Among its 500 holdings are names such as Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), and McDonald’s (NYSE: MCD).

For investors wanting US exposure through the ASX, this fund remains one of the cleanest ways to do it.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ASX ETF worth looking at is the Vanguard MSCI Index International Shares ETF.

It provides exposure to developed markets outside Australia, including the United States, Europe, Japan, and other major economies.

This makes it broader than a single-country ETF. It gives investors access to thousands of companies across multiple regions and industries, helping reduce reliance on the Australian market.

Its holdings include Apple (NASDAQ: AAPL), NVIDIA (NASDAQ: NVDA), and Nestle (SWX: NESN).

Betashares Nasdaq 100 ETF (ASX: NDQ)

A third ASX ETF to consider buying is the Betashares Nasdaq 100 ETF.

This fund is more concentrated than broad global funds. It gives investors exposure to many of the companies shaping digital consumption, artificial intelligence, cloud computing, software, and online services.

Its holdings include Alphabet (NASDAQ: GOOG), Tesla (NASDAQ: TSLA), and Broadcom (NASDAQ: AVGO).

The fund can be more volatile than broader ETFs because of its technology-heavy profile. However, it also provides exposure to some of the strongest growth businesses in the world.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

Another ASX ETF to look at is the popular VanEck Morningstar Wide Moat ETF.

It takes a more selective approach to the US market. It focuses on companies that have sustainable competitive advantages, while also considering valuation.

Its holdings include companies such as Nike (NYSE: NKE), Airbnb (NASDAQ: ABNB), and Amazon (NASDAQ: AMZN).

For investors who want exposure to quality US companies without simply tracking the broader market, the VanEck Morningstar Wide Moat ETF could be worth a closer look.

Betashares Global Cybersecurity ETF (ASX: HACK)

A final ASX ETF that stands out is the Betashares Global Cybersecurity ETF.

Cybersecurity has become a core spending priority for businesses and governments. As more data, payments, systems, and customer interactions move online, the need to protect digital infrastructure keeps growing.

This fund provides exposure to global companies involved in cybersecurity software, hardware, and services. Its holdings include Palo Alto Networks (NASDAQ: PANW), CrowdStrike (NASDAQ: CRWD), and Cisco Systems (NASDAQ: CSCO).

This is a more targeted ETF, so it may not suit every investor. But for those wanting exposure to a long-term technology theme, it could be worth considering.

The post 5 of the best ASX ETFs to buy and hold in 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF, Nike, and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Airbnb, Alphabet, Amazon, Apple, BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, Broadcom, Cisco Systems, CrowdStrike, Microsoft, Nike, Nvidia, Tesla, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nestlé and Palo Alto Networks and has recommended the following options: long January 2028 $320 calls on McDonald’s and short January 2028 $340 calls on McDonald’s. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Airbnb, Alphabet, Amazon, Apple, CrowdStrike, Microsoft, Nike, Nvidia, VanEck Morningstar Wide Moat ETF, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When it comes to long-term investing in ASX shares, I’m not sure there is an option better than Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). I’m all about investing for the long-term, which is why I’ve invested heavily in it and it’s my largest holding.

This business is an investment conglomerate that has been listed for 120 years – it’s one of the oldest companies in Australia.

I haven’t held it for an extremely long time yet, but I’m planning to do so for a few different reasons. It ticks my objective boxes and I want to outline why it’s a wonderful choice to own.

Effective diversification

A vast majority of Australian investors would benefit from having diversification in their portfolios.

If we were to look at where household wealth is invested, I wouldn’t be surprised if a large proportion was invested in residential property, ASX bank shares and ASX mining shares. That exposure may be direct or indirect.

So, I think it could be a smart move to invest in assets that give exposure to other sectors and can provide the same or better returns. I don’t want to be diversified for the sake of it if its detrimental to my returns.

Instead, I want to own investments that I believe can produce strong returns, with a different set of risks.

Soul Patts is invested across a wide array of industries that management believes can provide good returns and defensive cash flow.

It’s invested in areas like energy, communication services, consumer discretionary, credit, materials, financials, industrial property, agriculture, water rights, swimming schools and plenty more.

I think it’s this defensive diversification that has helped the business outperform the ASX share market during declines.

Capital growth

One of the main reasons why I think the ASX share is such a compelling investment, and why I want to own it for the long-term, is because of how its portfolio develops over time.

Soul Patts makes long-term investments and those assets have a good likelihood of growing in value over time because of natural business growth. This helps drive the underlying value of Soul Patts up over time as well.

Additionally, Soul Patts regularly makes additional investments into expanding its portfolio and unlocking further growth.

Between the first half of FY23 and the first half of FY26, its net asset value (NAV) has returned an average of 11.1% per year (adjusted for dividends).

Over the last 25 years, Soul Patts has delivered an average total shareholder return (TSR) of 12.9%.

I expect the Soul Patts share price can rise in the coming years as its portfolio of businesses continues to grow profit, helping increase my wealth.

Dividend growth

One of the best reasons I like this ASX share is that the business gives great dividend income. I like owning Soul Patts shares in my portfolio so that I can benefit from the wealth effect of the steadily growing dividend.

Soul Patts has increased its regular annual dividend every year since 1998, which is the longest record on the ASX.

Dividend growth is not guaranteed, but I have a high level of confidence that it can increase its annual payout for the foreseeable future because of the growing business investments it has made.

Its latest announced dividend was the FY26 interim payout, which was hiked by 9.1% to 48 cents per share.

With a current grossed-up dividend yield of 3.5%, including franking credits. I think that’s a solid starting dividend yield from the ASX share. If the business ever became cheaper, I’d be even more motivated to buy more of the ASX share.

The post 3 compelling reasons why this is my biggest ASX share holding appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

In a market that celebrates the next big lithium discovery or AI-adjacent tech play, there is something quite refreshing about a company that simply raises its dividend every single year.

Yes, every single year, for the last 20 years!

That company is APA Group (ASX: APA), and if it isn’t already sitting in your income portfolio, it’s one I’d consider.

Twenty years and counting

APA Group owns and operates the vast network of pipelines that transport natural gas from where it’s produced to where Australians actually use it, accounting for around half of the country’s domestic gas supply. 

Throughout many global economic crises over the past years, from the GFC to COVID and through every bit of market turbulence in between, APA has increased its dividend distributions.

The forward distribution yield currently sits at around 5.75%, and for Australian investors, the franking credits push that grossed-up return considerably higher.

This consistency is extraordinarily rare, but also demonstrates how defensive APA’s cash flows are.

Natural gas is something that is required by Australian industry and consumers year-round, regardless of prevailing economic conditions. 

The bull case for APA

APA has benefited over the last few months from the increase in global natural gas prices. 

But beyond this, APA also benefits from a unique regulatory structure. 

The Australian Energy Regulator sets the revenue APA can earn from its pipelines, guaranteeing a fair return on capital regardless of economic conditions. 

Investors can therefore consider APA a government-sanctioned monopoly. 

For defensively minded investors, this structure is quite reassuring.

The numbers stack up

The most recent half-year results were quite impressive. 

EBITDA grew 7.6% to $1.09 billion, and margins expanded to 77.3%.

This is the sort of growth and margin expansion APA needs to continue increasing its dividend. 

An additional advantage is that this provides APA with significant Free Cash Flow, which it can either reinvest in future revenue-generating capital expenditures or distribute to shareholders.

On top of this, APA holds around 70% of Australia’s gas transportation market share, serving 1.5 million connections.

This dominant market position protects APA from threats from new market entrants or other disruptive events.

The foolish takeaway

APA is more than just a yield play; its underlying business is performing strongly, and APA benefits from some unique competitive advantages. 

APA is also investing in its future, with a $3 billion renewable energy hub in Newman and hydrogen pipeline testing already underway. 

Twenty years of unbroken dividend growth, regulated cash flows, and a network nobody can replicate: sometimes even a boring business can make a great investment!

The post This overlooked ASX stock has raised its dividend 20 years in a row appeared first on The Motley Fool Australia.

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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 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.

ASX biotech stock Mesoblast Ltd (ASX: MSB) has pulled back sharply in 2026, but some investors may see the weakness as a potential buying opportunity.

After climbing above $3 in early January, the ASX biotech stock has largely trended lower and is now down around 27% year to date at the time of writing.

Biotech shares are often volatile, and Mesoblast is no exception. But despite the recent sell-off, several factors suggest the company could still have substantial upside ahead.

Here are three reasons why this ASX biotech stock may be worth a closer look.

Ryoncil could drive cash flow growth

One of the biggest positives for Mesoblast is the growing commercial opportunity surrounding Ryoncil. The company believes sales from the therapy alone could eventually support earnings generation and cash flow positive operations, which would mark a major milestone for the biotech business.

That is significant because many biotechnology companies remain heavily reliant on external funding for years before becoming commercially sustainable.

If Mesoblast can successfully scale Ryoncil sales, investor confidence in the company’s long-term financial position could improve substantially. For a speculative ASX biotech stock, the prospect of sustainable cash flow generation is a major advantage.

Multiple growth opportunities remain

Mesoblast’s pipeline also extends well beyond a single product. The company says new product approvals are now well advanced in areas including heart failure and chronic lower back pain. Both markets represent potentially enormous long-term commercial opportunities.

If future regulatory approvals are achieved, Mesoblast could significantly expand revenue streams over the coming years.

Investors are increasingly focusing on the broader pipeline potential rather than viewing the company as dependent on one treatment outcome. Importantly, expanding revenues and commercial diversification may also help reduce risk over time.

For investors comfortable with biotech volatility, the company’s pipeline could provide considerable upside leverage.

Broker optimism is growing

Analyst sentiment toward Mesoblast has also become increasingly positive despite recent share price weakness. TradingView data shows that all seven analysts covering the ASX biotech stock rate it a strong buy, with an average 12-month price target of $4.12, which suggests 105% upside.

Bell Potter last week reaffirmed its speculative buy rating on the ASX biotech stock with a $4.50 price target. That target suggests potential upside of more than 120% from current trading levels. The broker’s bullish stance reflects growing confidence in Mesoblast’s commercial outlook and product pipeline progress.

If investor sentiment toward healthcare and biotech shares improves more broadly, Mesoblast could benefit strongly from renewed market enthusiasm.

Risks remain

Of course, investing in ASX biotech stocks still carries elevated risks.

Mesoblast remains exposed to regulatory uncertainty, clinical trial outcomes and commercial execution challenges. Funding requirements and share price volatility also remain important considerations for investors.

A weaker-than-expected product rollout or regulatory setback could significantly impact sentiment.

Still, after a sharp 2026 decline, some investors may believe the risk-reward profile is becoming increasingly attractive.

With commercial revenues building, multiple approval pathways advancing and broker confidence strengthening, Mesoblast could be one ASX biotech stock worth watching closely.

The post 3 reasons why this ASX biotech stock could double in value appeared first on The Motley Fool Australia.

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• Mesoblast shares: Cash burn falls and Ryoncil® sales climb

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

ASX industrials stock Mayfield Group Holdings Ltd (ASX: MYG) raced 300% higher during 2025. 

For comparison, the S&P/ASX 200 Industrials Index (ASX: XNJ) rose 9% during that same span. 

Mayfield Group is a national supplier of electrical equipment, including switchboards, control modules, kiosk substations, and transportable switchrooms. 

The company also delivers whole-of-life services for communications infrastructure integrated with power and energy storage solutions.

Why is this industrials stock booming?

In the last 12 months, it has benefited from major investment in Australia’s electricity infrastructure. 

The country is upgrading transmission lines, expanding renewable energy projects, electrifying industries, and building more data centres, all of which increase demand for Mayfield’s electrical and engineered solutions. 

Rising defence spending has also created additional demand for secure energy systems.

At the same time, the company has strengthened its own performance by expanding its order book, improving operations, increasing profit margins, and maintaining a strong balance sheet. 

However, in 2026, it has come back down to earth slightly, falling 12% year to date. 

A new report from Bell Potter suggests this recent dip could be an attractive entry point for investors. 

Here’s what the broker had to say. 

Expanding to record levels

Bell Potter said this ASX industrials stock has secured $52m in new purchase orders to date in 2H FY26 across the Data Centre, Renewable Energy, Infrastructure, Power Generation, and Mining sectors. 

Notable purchase orders included:

• $15.7m order for the supply of switchboards to a major data centre development (largest single order to date)
• $10.2m order for custom-built protection and control panels for a major renewable energy zone project
• $2.0m SMEC order from an international customer (first international contract award since acquisition)

MYG’s current WIH stands at $151m (record), positioning the company for strong revenue growth in FY27 (BPe +23.0%, including SMEC contribution).

MYG’s coverage is ~80% of our CY26 revenue forecast (consistent with PcP). If MYG maintains its current order win-rate, we see potential upside to our FY27 revenue estimate.

Buy rating unchanged 

Bell Potter has retained its buy recommendation on this ASX industrials stock. 

It has also maintained its price target of $3.40. 

At roughly $2.80 per share at the time of writing, this indicates an upside potential of 21%.

MYG’s outlook is underpinned by structural tailwinds in Mining, Renewable Energy, Data Centre, Defence and Water infrastructure markets. MYG is adequately.

MYG is well positioned to achieve our FY27 revenue expectation of $205m (+23% growth) given its WIH expansion to record levels ($151m – 6 May 2026)

The post This red hot ASX industrials stock has 21% upside according to Bell Potter appeared first on The Motley Fool Australia.

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• Down 63%: Should you finally give up on CSL shares?
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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 recommended Mayfield Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

You won’t often hear the word ‘safe’ here at The Motley Fool. No ASX share, or share-based exchange-traded fund (ETF) for that matter, can be considered completely safe, speaking from a capital preservation standpoint.

Markets can price businesses however they like. This pricing is fickle, though, and can change for no good reason. No one knows what kind of profits a business is going to bring in next month, next year or five years from now. And that makes pricing companies accurately extremely difficult.

As such, no business, whether it be Commonwealth Bank of Australia (ASX: CBA) or Ampol Ltd (ASX: ALD), can be relied upon to preserve your hard-earned dollars if you buy its shares. Nor can they be relied upon completely for dividend income. A company can only pay out dividends from the pool of profits that it amasses. Given that this pool of profits is impossible to anticipate with certainty, so too are any potential dividends derived from it.

Income-focused ASX ETFs that fund income from ASX shares, such as the Vanguard Australian Shares High Yield ETF (ASX: VHY), fall into the same bucket.

But there is one ASX ETF that investors can buy today that can promise capital preservation, as well as a truly reliable income stream. What’s better, this ASX ETF is currently yielding about 4%, and could rise even further.

That ASX ETF is the BetaShares Australian High Interest Cash ETF (ASX: AAA).

A safe ASX ETF with a 4% yield?

AAA can promise capital preservation and income stability because it does not actually invest in ASX shares. Instead, it holds investors’ capital in cash deposits in Australian banks. The fund then uses the interest it receives from these investments to pay income distributions to investors.

Historically, cash investments have not delivered nearly the same levels of returns that ASX shares have. However, I think the rather unique situation currently facing investors makes cash appealing right now. Despite the volatility we have seen on the share market over the last few months, the ASX remains fairly close to its record highs.

Dividend yields on the ASX’s most popular shares remain depressed as a result. Popular income stocks like Telstra Group Ltd (ASX: TLS), Commonwealth Bank of Australia (ASX: CBA) and Wesfarmers Ltd (ASX: WES), to illustrate, currently trade on dividend yields well under 4%.

In contrast, this ETF’s last monthly distribution (yes, it pays out monthly) came in at 17.2 cents per unit. Annualised, that would give AAA a distribution yield of 4.12%. The only factor that can really affect this ETF’s yield is interest rates. And with rates rising in May, and possibly again before the end of the year, this looks like a pretty compelling option for anyone investing for income today.

The post A surprising ASX ETF that yields 4% and pays out monthly appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended 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.

CSL Ltd (ASX: CSL) shares have gone from market darling to market disappointment.

On Monday, the biotech giant’s shares crashed 16% and finished at their lowest level in almost a decade. They are now down 63% from their 52-week high.

That is a stunning fall for a company that was once treated as one of the highest-quality shares on the ASX.

So, should investors finally give up on CSL?

What went wrong?

The latest selloff was driven by another disappointing update from the company.

CSL has downgraded its FY 2026 outlook and now expects revenue of around US$15.2 billion and NPATA of US$3.1 billion, both on a constant currency basis and excluding restructuring costs and impairments.

The downgrade reflects several issues. CSL flagged a US immunoglobulin revenue impact of approximately US$300 million due to the normalisation of channel inventory, a US$200 million impact from albumin in China, and a further US$150 million impact from the Middle East conflict, revised HEMGENIX growth, and competition in iron.

This is not a clean downgrade caused by one temporary factor. It is a reminder that CSL is dealing with several problems at once.

Management has also been blunt about the situation. CSL’s interim CEO, Gordon Naylor, said the company’s growth initiatives are working, but that the financial benefits will take longer than previously expected to materialise. He said:

Our growth initiatives are working, but the financial benefits will take longer than previously anticipated to materialise. As a result, we have now revised down our 2026 financial year guidance.

That is the key issue for investors. CSL is not unfixable, but it is taking longer to repair than the market hoped.

The painful reset

The update also included more bad news on impairments.

CSL paid US$11.7 billion to acquire Vifor Pharma in 2022. Unfortunately, this has so far failed to deliver on expectations and has weighed heavily on shareholder value.

The company revealed that it expects to recognise approximately US$5 billion of additional non-cash, pre-tax impairments across FY 2026 and FY 2027. These relate to CSL Vifor intangible assets, including the product portfolio, as well as under-utilised property, plant and equipment.

The company’s own review points to the need for better execution, a simpler operating model, improved supply chain efficiency, and more disciplined capital allocation. It also notes that historical growth expectations have not been delivered and that some investment case assumptions have not eventuated.

That is a very different story from the CSL of old.

For years, investors were happy to pay a premium valuation for CSL shares because the company delivered predictable growth, strong margins, and world-class execution. That premium has now been destroyed.

Are CSL shares cheap?

CSL shares are now trading on around 12 times estimated FY 2027 earnings. That looks too low for a company with its scale, market positions, and long-term healthcare exposure.

But investors should be careful about expecting the old valuation to return.

CSL may once have justified a valuation above 30 times earnings. After this period of missed expectations, downgrades, impairments, and strategic repair work, that seems unlikely any time soon.

A more realistic outcome could be a rerating toward 18 to 20 times earnings if CSL can return to consistent growth and prove that its transformation program is working.

That would still leave room for upside from current levels. But it would require delivery, not just promises.

Should you give up?

I would not give up on CSL shares completely.

The company still has high-quality assets, strong market positions, and exposure to long-term healthcare demand. Its current valuation also appears to reflect a lot of bad news.

But investors need to reset their expectations. This is no longer the CSL of old. It is a turnaround story inside a high-quality healthcare company.

For patient investors, I think CSL shares are worth holding. But from here, the company needs to earn back trust one result at a time.

The post Down 63%: Should you finally give up on CSL shares? appeared first on The Motley Fool Australia.

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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.

A new report from VanEck has laid out the case for timely rotation into global small-cap stocks. 

According to VanEck, many industry pundits are forecasting volatility. However, the macroeconomic backdrop and geopolitical uncertainty bode well for a quality rotation with global small companies.

ASX investors may target global small-caps to diversify beyond Australia’s concentrated market of banks and miners.

Simultaneously, Aussie investors can gain exposure to faster-growing sectors like technology, healthcare, and advanced manufacturing. 

Global small-caps can also provide higher long-term growth potential and access to opportunities driven by overseas economies and currencies.

Early stages of a small company quality rotation

According to the report, global small company valuations, relative to large companies, are at a discount. However, being selective in small companies is important.

There are several signs that suggest we could be in the early stages of a small company quality rotation. These include:

• US manufacturing has shifted into expansionary territory with the ISM Index moving above 50, a backdrop that has historically favoured all caps as capex and production pick up, and QSML is well positioned via its tilt toward industrials
• US GDP growth outlook consensus forecast is around 2% for 2026 and 2027, a trajectory that bodes well for smaller companies in the market to harvest higher earnings growth
• Attractive valuations
• Higher-for-longer oil prices and elevated tariffs could lift inflation concerns and growth uncertainty, which could result in investors favouring quality small caps due to their defensive characteristics

Why small caps are starting to outperform

VanEck said markets have experienced significant volatility over the first four months of 2026. 

While early concerns were driven by a weakening US labour market and AI disruption adversely impacting tech software earnings, the dominant narrative became the escalation of the US/Iran conflict. 

This initially led to a broad-based market sell-off, with higher-risk segments such as small companies particularly impacted.

In the immediate aftermath, large-cap and energy stocks outperformed, supported by inflationary expectations and safe-haven demand.

However, as markets began to price in a potential de-escalation amid negotiations and non-negotiations, investor attention started to shift toward more compelling value opportunities.

One area that stood out is quality small-cap stocks. These have started to outperform both their benchmark (MSCI World ex Australia Small Cap Index) and the broad equities (MSCI World ex Australia Index) as investors rotate into segments with stronger fundamentals and attractive valuations.

How to gain exposure to global small caps

For investors looking to expand their portfolio to include global small caps, there are several ASX ETFs to consider.  

Targeting ETFs can help spread the risk that often comes with small-cap investing. 

Some options include: 

• VanEck MSCI International Small Companies Quality ETF (ASX: QSML) – gives investors a diversified portfolio of 150 international developed market small-cap quality growth securities
• Vanguard MSCI International Small Index ETF (ASX: VISM) – provides exposure to small companies listed in major developed countries  

VanEck said the US GDP growth outlook consensus forecast is around 2% for 2026 and 2027, with an AI-driven productivity boost potentially adding another 50 to 100 bps.

This resilient growth trajectory bodes well for smaller companies in the market to harvest higher earnings growth.

Taking history as a guide, we believe this backdrop (potential volatility) bodes well for a quality rotation within the global small companies’ complex.

The post Why investors should be rotating into global small caps: Expert appeared first on The Motley Fool Australia.

More reading

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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.

Retiring rich is rarely about one lucky investment.

It usually comes from owning high-quality ASX shares for long periods and allowing strong earnings growth to compound over time.

That is why I like ASX growth shares with real competitive advantages. The best ones can keep expanding, reinvesting, and becoming more valuable long after they already look successful.

Two ASX growth shares I think could help investors build serious long-term wealth are named in this article.

Pro Medicus Ltd (ASX: PME)

Pro Medicus has become one of the ASX’s most admired growth shares.

The healthcare technology company provides imaging software used by hospitals and radiology groups. Its Visage platform helps clinicians view, manage, and interpret medical images quickly and efficiently.

What I like about Pro Medicus is that it solves an important problem in a demanding environment.

Medical imaging volumes continue to grow, and healthcare systems need software that can handle large amounts of data without slowing clinicians down. Speed, reliability, and accuracy are important in this market.

That gives Pro Medicus a powerful position.

It has also shown an impressive ability to win large contracts with major healthcare organisations, particularly in the US. These contracts can be long-term in nature and deeply embedded once implemented.

The share price can look expensive. But I think the market is willing to pay up because the business has exceptional margins, a strong balance sheet, and a large global opportunity.

For investors trying to retire richer, I think Pro Medicus is the kind of business that could keep compounding if it continues executing well.

Breville Group Ltd (ASX: BRG)

Breville is a consumer brand rather than a software or healthcare company, but I think it has one of the more attractive long-term expansion opportunities on the ASX.

It has built a strong reputation in premium kitchen appliances, especially coffee machines. That is important because the business is not just selling household products. It is selling better at-home experiences to customers who are willing to pay more for quality.

I think coffee remains the clearest example.

Many consumers have become more selective about the coffee they drink at home. Breville sits in a useful position because it offers products that can appeal to people who want a more premium experience without relying on cafes every day.

The growth runway comes from taking that brand into more markets, launching new products, and deepening its position in categories where design and quality matter.

There are risks. Consumer spending can weaken, tariffs and supply chain costs can affect margins, and premium appliances are not immune to a tougher economy.

But I like that Breville has a global brand-building opportunity. If it keeps proving that it can win beyond Australia, I think the business could be much larger over the next decade.

Foolish takeaway

I think these ASX growth shares could play a major role in building long-term wealth.

Pro Medicus offers exposure to world-class healthcare software, while Breville brings a global premium brand story. 

They will not move smoothly, and valuation still matters. But if these businesses keep growing over the next decade and beyond, I think they could help investors build serious wealth before retirement.

The post Retire rich with these ASX growth shares appeared first on The Motley Fool Australia.

More reading

• Down 50%, these 2 ASX growth shares look too cheap to ignore
• Are these the 3 most undervalued ASX 200 shares right now?
• Down 40% but not out: Is Pro Medicus the buy of the decade right now?
• Why the ASX 200 is being smashed today
• 3 ASX healthcare shares to buy while they’re on sale

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

Building passive income from ASX stocks does not have to mean sticking with the obvious names.

While banks and infrastructure stocks often dominate the dividend conversation, there are other companies that can provide income from very different parts of the economy.

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

Elders Ltd (ASX: ELD)

The first ASX dividend stock to look at is Elders.

It is one of Australia’s leading agribusiness companies. It provides products and services to farmers across areas such as rural supplies, livestock, wool, real estate, and financial services.

This gives the company exposure to the agricultural economy without being tied to just one commodity. Its earnings can still be influenced by seasonal conditions and farmer confidence, but the breadth of the business provides several revenue streams.

This means that its dividends are linked to a business serving an essential industry. As demand for food and agricultural production continues over time, Elders remains positioned in a market with long-term relevance. This is particularly the case following the recent acquisition of Delta Agribusiness for $475 million, which boosts its position in crop protection and animal health.

Jumbo Interactive Ltd (ASX: JIN)

Another ASX dividend stock worth considering is Jumbo Interactive.

It operates digital lottery platforms and provides lottery software services. Its best-known brand is Oz Lotteries, which allows customers to buy lottery tickets online.

The company has a capital-light model, which can support strong cash generation when trading conditions are favourable. It also benefits from the continued shift from physical lottery purchases to digital channels.

Jumbo’s earnings can be influenced by jackpot activity, as larger jackpots tend to drive higher customer engagement. But over the long term, the move toward online lottery participation remains an important growth driver.

With a digital platform, strong margins, and cash-generative operations, Jumbo offers a dividend profile that looks very different from traditional income stocks.

Sonic Healthcare Ltd (ASX: SHL)

A third ASX dividend stock that could help build passive income is Sonic Healthcare.

Sonic is a global pathology and laboratory medicine business. It provides diagnostic testing services across Australia, Europe, and North America.

Healthcare demand tends to be more resilient than many other parts of the economy. People still need medical testing through different economic conditions, which gives Sonic a defensive quality.

The company also has global scale, which helps diversify earnings across markets and healthcare systems.

While pandemic-related testing provided a temporary boost in past years, the underlying business remains supported by ageing populations, chronic disease management, and ongoing demand for diagnostics. This bodes well for its long-term dividend outlook.

The post 3 ASX dividend stocks to help build passive income appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend shares to buy with 5% to 6% yields
• 2 top ASX dividend stocks on sale, are they buys today?
• Why this ASX dividend share is a retiree’s dream
• What’s making healthcare the worst sector on the ASX 200, down 39% in a year?
• 3 ASX dividend shares to build a passive income

Motley Fool contributor James Mickleboro 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 Jumbo Interactive. The Motley Fool Australia has recommended Elders, Jumbo Interactive, and Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.