Category: Stock Market

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a decline. The benchmark index fell 0.4% to 8,926 points.

Will the market be able to bounce back on Tuesday? Here are five things to watch:

ASX 200 set to jump

The Australian share market looks set for a strong session on Tuesday following a positive start to the week in the US. According to the latest SPI futures, the ASX 200 is poised to open the day 122 points or 1.35% higher. On Wall Street, the Dow Jones was up 0.6%, the S&P 500 rose 1%, and the Nasdaq pushed 1.2% higher.

Oil prices rise

It could be a good session for ASX 200 energy shares Karoon Energy Ltd (ASX: KAR) and Santos Ltd (ASX: STO) after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 1.5% to US$98.00 a barrel and the Brent crude oil price is up 3.4% to US$98.39 a barrel. Traders were buying oil after the US blockaded Iranian ports.

Buy Pro Medicus shares

The team at Bell Potter remains bullish on Pro Medicus Ltd (ASX: PME) shares following the announcement of a new contract renewal. In response, the broker has retained its buy rating and $226.00 price target. It said: “Longer term, the outlook remains strong with PME FY27 exam revenues expected to benefit from full period benefit of implementations in the current half including the two largest cohorts of the Trinity Health contract plus the Big Bang implementation at U. Colorado covering radiology and cardiology”

Gold price falls

ASX 200 gold shares such as Evolution Mining Ltd (ASX: EVN) and Ramelius Resources Ltd (ASX: RMS) could have a relatively subdued session on Tuesday after the gold price fell overnight. According to CNBC, the gold futures price is down 0.5% to US$4,763.3 an ounce. A stronger US dollar put pressure on the precious metal.

Hold A2 Milk shares

On Monday, A2 Milk Company Ltd (ASX: A2M) shares crashed 13% following a guidance downgrade. This morning, Bell Potter has responded by retaining its hold rating with a reduced price target of $8.35 (from $9.55). It said: “While some of the issues are likely to be temporary in nature (such as elevated air freight) they may well persist into 1Q27e as in-market inventory levels are restored. The deterioration in FY26e margin expectations, when supply chain issues were flagged by SM1 in Feb’26 and are now below Aug’25 guidance levels on a higher revenue base is somewhat concerning, given returning ingredient COG inflation.”

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

More reading

• 3 quality ASX shares I’d buy while everyone else is nervous
• Still down 40%, are Pro Medicus shares primed to break out?
• Why these ASX 200 stocks could be perfect for buy and hold investors
• Why Monash IVF, Pro Medicus, Telix, and Woodside shares are storming higher today
• Why A2 Milk, Metallium, Northern Star, and St Barbara shares are sinking today

Motley Fool contributor James Mickleboro has positions in Pro Medicus. 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.

For any 20-year-old (or younger) reading this, there’s one incredible retirement asset on your side that a lot of ASX stock investors don’t have: time.

Compounding is a very powerful force that can help a small number grow into a much larger figure over the long term. As one of the greatest ever minds, Albert Einstein, once reportedly said:

Compound interest is the most powerful force in the universe. Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t pays it.

If someone starts investing early, younger Aussies can take advantage of having more time to compound their wealth and let the snowball roll for longer.

The power of compounding

I’ll demonstrate how much a single $250 ASX stock investment could grow.

For starters, it’s good to know that the local and global share markets have returned an average of 10% per year over the ultra-long term.

If $250 grows by an average of 10% per year – which includes volatility along the way – it reaches $648 after a decade, according to the Moneysmart calculator. That’s a return of 159% over that time.

After 20 years of growing 10% per year, it becomes $1,682 – that’s a gain of 573%.

In 30 years, $250 will become $4,362. That translates into a gain of 1,645%.

After 45 years, that single $250 investment could become $18,223, a huge rise of 7,189%.

Of course, I’d suggest investing more than $250 if someone wants to retire. I’d want to regularly put in an amount towards building a great retirement figure. A monthly total is usually a good target to save for

But, I’d also recommend investing at least approximately $1,000 per investment, just so that not too much money is being lost to brokerage. There are some online share brokers that can offer a brokerage fee of less than $10 for a $999 buy. So, saving $250 per month could mean saving $3,000 per year, or making three investments of around $1,000 each year.

Saving $250 per month towards ASX stocks

If someone can save at least $250 per month towards investing, I think they’re going to make a very noticeable difference by retirement. I’m going to provide a variety of timelines so people of different ages can see what it could turn into.

If an Aussie invested $250 per month and it returned 10% per year for a decade, that would become $47,812.

Over two decades, that strategy would reach $171,800.

In three decades, the figure becomes $493,482.

If a 20-year-old followed this strategy for 45 years until they’re 65 – and didn’t increase the monthly investment amount – it would become $2.15 million. Increasing the investment amount during prime earning years would probably be a smart thing to do.

Time and compounding can really make a massive difference with ASX stocks.

If I were following this strategy, I’d want to choose globally diversified exchange-traded funds (ETFs) as a core investment that gives exposure to businesses with good earnings growth potential, such as Vanguard MSCI Index International Shares ETF (ASX: VGS), VanEck MSCI International Quality ETF (ASX: QUAL), and Betashares Global Quality Leaders ETF (ASX: QLTY).

If I came across any extra savings, I’d consider putting them towards compelling long-term ASX growth shares that could help accelerate my wealth building.

The post If a 20-year-old invests $250 a month in ASX stocks, here’s what they could have by retirement appeared first on The Motley Fool Australia.

More reading

• Sell alert! Why this expert is calling time on CBA and Woodside shares
• Where to invest $500 in ASX shares right now
• How to turn $20,000 into $100,000 with ASX ETFs
• Expert names 1 ASX ETF to buy, 1 to hold, and 1 to sell
• Why this $5 billion ASX financial stock is slipping today

Motley Fool contributor Tristan Harrison has positions in VanEck Msci International Quality 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 recommended Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Commonwealth Bank of Australia (ASX: CBA) and Woodside Energy Group Ltd (ASX: WDS) shares have both been strong performers over the past year.

CBA shares closed Monday trading for $183.20 each, while Woodside stock ended the day changing hands for $34.15 a share.

This sees the CBA share price up 16.47% over 12 months, while Woodside shares have gained a whopping 72.04%.

For some context, the S&P/ASX 200 Index (ASX: XJO) is up 15.20% over this same period.

And the above outperformance doesn’t include the two fully-franked dividends CBA and Woodside both paid out over the full year.

Woodside trades on a fully franked trailing dividend yield of 4.8%, while CBA shares trade on a fully-franked yield of 2.7%.

But after their recent strong runs, Shaw and Partners’ Jed Richards believes now could be an opportune time for stockholders to take some profits off the table (courtesy of The Bull).

Have Woodside shares burned too bright?

“This energy giant has historically struggled to consistently meet market expectations,” said Richards, who has a sell recommendation on Woodside shares. “While the current commodity environment has supported its share price, we see this as an opportunity to exit.”

Among potential looming headwinds for the ASX 200 energy stock, Richards noted, “Capital intensity, project execution risk and long dated development timelines remain my concerns.”

Richards concluded:

Investors may want to consider taking advantage of its recent valuation and improved sentiment. The shares rose from $23.59 on January 9 to $35.80 on April 7. The shares were trading at $33.37 on April 9. The shares are also responding to volatile crude oil prices resulting from the Middle East conflict.

Which brings us to…

Are CBA shares looking pricey?

Atop Woodside shares, Richards also recommends investors consider selling CBA shares.

“The CBA remains a high-quality banking operation, but its valuation is increasingly difficult to justify,” he said. “The stock trades at a significant premium to global peers despite a mature domestic banking market and limited growth potential, in my view.”

CBA trades at a price-to-earnings (P/E) ratio of just under 30 times.

Summarising his sell recommendation on CBA shares, Richards concluded:

While earnings remain stable, we see better value elsewhere in the sector. We believe the current share price leaves little margin for error, supporting a sell recommendation on valuation grounds. The shares have risen from $158.74 on February 10 to trade at $181.65 on April 9.

The post Sell alert! Why this expert is calling time on CBA and Woodside shares appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: CBA, Reece, and Wesfarmers shares
• Why Monash IVF, Pro Medicus, Telix, and Woodside shares are storming higher today
• How ASX 200 energy stocks like Woodside and Santos are surging in Monday’s sinking market
• Buy, hold, sell: AGL, Origin Energy, and Woodside shares
• 2 ASX 200 blue-chip shares worth owning in April 2026

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

Investing $500 might not seem like much, but it is more than enough to get started in the share market.

In fact, small amounts invested consistently can compound into something meaningful over time. The key is focusing on quality ASX shares with strong long-term potential, rather than trying to chase quick wins.

Here are three shares that could be worth considering with $500.

Breville Group Ltd (ASX: BRG)

The first ASX share that could be a smart option is Breville Group.

Breville has built a premium brand in kitchen appliances, with products that are recognised globally for quality and design. But what makes the business particularly interesting is its international growth story.

A large portion of its revenue now comes from overseas markets, especially the United States. This gives Breville exposure to a much larger customer base than the Australian market alone.

At the same time, the company continues to innovate and expand its product range, helping to maintain its premium positioning. This is particularly the case in the growing coffee category, where Breville is a market leader.

Overall, Breville offers investors exposure to a global consumer brand with long-term growth potential.

ResMed Inc (ASX: RMD)

Another ASX share to consider is ResMed.

ResMed operates in the sleep apnoea and respiratory care space, providing devices and software that help patients manage chronic conditions.

What sets the company apart is its recurring revenue model. Once a patient starts using a device, they often continue purchasing masks, software, and accessories over time.

There are also strong structural tailwinds supporting the business. Sleep apnoea remains highly underdiagnosed globally, and awareness continues to grow. In fact, there are over 1 billion sufferers worldwide according to ResMed. But most aren’t aware of their condition.

This means that ResMed potentially offers long-term investors a combination of defensive healthcare exposure and steady growth.

TechnologyOne Ltd (ASX: TNE)

A third ASX share that could be a strong option for the $500 is TechnologyOne.

It provides enterprise software solutions, primarily to government and education sectors. Its shift to a cloud-based model has transformed the business, increasing recurring revenue and improving margins.

One of the most appealing aspects of TechnologyOne is its consistency. The company has a long track record of delivering steady earnings growth and expanding its customer base.

It is also growing internationally, particularly in the UK, which could provide another leg of growth in the years ahead.

For investors looking to build wealth over time, TechnologyOne could be worth considering, especially after recent share price weakness.

The post Where to invest $500 in ASX shares right now appeared first on The Motley Fool Australia.

More reading

• Why these ASX 200 stocks could be perfect for buy and hold investors
• 3 ASX 200 shares I would buy immediately if the market dips again
• Leading brokers name 3 ASX shares to buy today
• 5 ASX 200 shares that could be a bargain right now
• $2,000 to invest? 3 ASX shares to consider today

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

Turning $20,000 into $100,000 might sound ambitious, but it is far from impossible with the right strategy and enough time.

The key is not trying to get there quickly.

Instead, it is about building a repeatable process that allows compounding to do the heavy lifting. And for many investors, ASX exchange traded funds (ETFs) can be one of the simplest ways to make that happen.

Start with a clear framework

Rather than chasing the next hot trend, a more effective approach is to build around three pillars. Broad market exposure, long-term growth themes, and quality.

This framework helps balance risk while still allowing a portfolio to grow meaningfully over time.

For example, an investor could begin with a global ETF like the Vanguard MSCI Index International Shares ETF (ASX: VGS). This provides instant diversification across hundreds of companies and reduces reliance on the Australian market.

From there, adding a growth-focused ETF such as the Betashares Nasdaq 100 ETF (ASX: NDQ) can increase exposure to innovation-led businesses.

Finally, a quality-focused fund like the VanEck Morningstar International Wide Moat ETF (ASX: MOAT) can help tilt the portfolio toward companies with durable competitive advantages.

Let time do the work

The biggest driver of turning $20,000 into $100,000 is time.

Assuming an average annual return of around 10%, which is broadly in line with long-term equity market returns, a single $20,000 investment could grow to approximately $100,000 in around 17 years.

That might feel like a long time, but this is where patience becomes a powerful advantage. Investors who stay consistent and avoid reacting to short-term noise are often the ones who benefit the most.

Add fuel along the way

One way to reach the goal faster is to contribute regularly.

Even small additions, such as $200 or $300 per month, can significantly shorten the timeframe. These contributions allow investors to take advantage of market dips and continue building their position regardless of market conditions.

Over time, this approach reduces the pressure to time the market and instead focuses on time in the market.

Reinvest everything

Another often overlooked factor is reinvestment.

Dividends paid by ETFs can be used to purchase additional units, which then generate their own returns. This creates a compounding loop that accelerates growth over time.

While it may be tempting to take income along the way, reinvesting in the early stages can make a meaningful difference to the final outcome.

Stay consistent

It is important to remember that markets will not move in a straight line.

There will be periods of volatility, corrections, and even bear markets. But these phases are part of the process, not something to fear.

In fact, they can create opportunities to buy more units at lower prices, which can enhance long-term returns.

A simple path to a big goal

Turning $20,000 into $100,000 does not require complex strategies or constant trading.

By combining diversified ETFs, a long-term mindset, regular contributions, and reinvestment, investors can give themselves a realistic pathway to reaching that milestone.

It may not happen overnight, but with discipline and consistency, it is a goal that is well within reach.

The post How to turn $20,000 into $100,000 with ASX ETFs appeared first on The Motley Fool Australia.

More reading

• 5 Vanguard ETFs for Aussies to buy this month
• 3 BetaShares ETFs I think can beat the market over 5 years
• 3 top ASX ETFs to buy with $30,000 this month
• Which ASX ETFs I’d buy for retirement investing
• Where to invest $7,000 in ASX shares during April

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF and is short shares of BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The team at DP Wealth Advisory has given its verdict on a number of exchange traded funds (ETFs) this week.

Let’s see, courtesy of The Bull, if it rates them as buys, holds, or sells:

Betashares Global Royalties ETF (ASX: ROYL)

The wealth advisory firm thinks this ETF could be a buy this week.

It highlights its strong track record since inception and its attractive and predictable income as reasons to consider the fund. It said:

This exchange traded fund focuses on global companies earning royalty and intellectual property income. The benefit from companies producing royalty income is the predictable nature derived from holding the underlying investments. Sector exposure at February 27, 2026 included gold, oil, gas, pharmaceuticals and semiconductors.

Geographical exposure includes the US, Canada and Brazil. Since its inception in September 2022, the fund had returned 19.77 per cent per annum as of March 31, 2026. ROYL can be considered a solid inclusion in a balanced portfolio.

iShares MSCI Emerging Markets AUD ETF (ASX: IEM)

DP Wealth Advisory has named this emerging market fund as a hold this week.

While it is positive on what it offers investors, it isn’t enough for a buy rating. It commented:

This exchange traded fund provides exposure to big and mid sized companies in emerging markets. Geographical exposure includes China, India and South Korea, among others.

The average annual total return over three years was 15.30 per cent as of March 31, 2026. A benefit of the ETF is providing exposure to companies and economies that some would find difficult to source as an individual investor.

Betashares Global Cybersecurity ETF (ASX: HACK)

This cybersecurity focused ASX ETF has been named as a sell by DP Wealth Advisory.

While the fund has been a strong performer in recent years, it thinks investors may be better avoiding it while AI disruption concerns weigh on software stocks. It explains:

This exchange traded fund tracks the Nasdaq Cyber Security Index and provides investors with exposure to the rapidly growing and ever evolving cyber security theme. Names held within the ETF included CrowdStrike Holdings, Palo Alto Networks and Cisco Systems as at April 8, 2026.

After performing strongly for the past five years, this ETF, along with other software focused investments, have been under pressure due to fears artificial intelligence large language models (LLM) could significantly disrupt software-as-a-service (SaaS) businesses. While these concerns may be over done, it’s safer to take profits and avoid the SaaS sector until more certainty emerges.

The post Expert names 1 ASX ETF to buy, 1 to hold, and 1 to sell appeared first on The Motley Fool Australia.

More reading

• 3 BetaShares ETFs I think can beat the market over 5 years
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• 5 ASX ETFs to buy in April and hold until 2036
• 3 brilliant ASX ETFs to buy after the market selloff
• This simple ASX ETF strategy matters more than ever in today’s uncertain market

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 BetaShares Global Cybersecurity ETF, Cisco Systems, and CrowdStrike. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Palo Alto Networks. The Motley Fool Australia has recommended CrowdStrike. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX financial stock GQG Partners Inc (ASX: GQG) is on the back foot again. The fund manager has slipped 2.25% during afternoon trade to $1.74 at the time of writing, as investors have reacted to its latest quarterly update.

Zoom out, and the trend hasn’t been pretty. Over the past 12 months, the ASX financial stock is down 13%, badly lagging the S&P/ASX 200 Index (ASX: XJO), which has climbed 15.6% over the same period.

So what’s driving the weakness?

The headline number is hard to ignore. GQG reported funds under management (FUM) of US$162.5 billion as at 31 March 2026. That included net outflows of US$8.6 billion for the quarter — a clear red flag for the market. Throughout 2025, the ASX financial stock saw a total of US$3.9 billion leave its funds. 

For fund managers, flows are everything. Outflows don’t just hit revenue; they also signal fading investor confidence. And right now, that’s exactly what the market is reacting to.

Management of the ASX financial stock didn’t sugarcoat the backdrop. The quarter was shaped by heightened volatility, with geopolitical tensions and macroeconomic uncertainty weighing heavily on global markets. In that kind of environment, investors often pull money or shift into safer assets.

Backing its playbook

But here’s where it gets interesting. GQG stuck to its playbook. The firm maintained a defensive stance, focusing on companies with stable earnings and strong fundamentals. That strategy delivered, as all major investment strategies outperformed their benchmarks during the period.

In other words, performance wasn’t the problem. Instead, the pressure is coming from a disconnect. Strong relative returns, but money still walking out the door.

One area in particular continues to weigh heavily: emerging markets. This part of the strategy of the ASX financial stock has seen the deepest underperformance and remains a key source of outflows. Until that segment stabilises, it’s likely to act as a drag on overall sentiment.

Cautious stance

Management, however, is playing the long game. It emphasised strong alignment with clients and shareholders and doubled down on its core objective, protecting capital in what it sees as a period of elevated downside risk.

That’s a cautious stance. And in today’s market, caution doesn’t always win immediate applause.

The bottom line?

GQG isn’t struggling to generate returns. It’s struggling to hold onto capital. Until flows turn, the price of the ASX financial stock may remain under pressure. Even if performance stays solid.

For investors, the key question is whether these outflows are temporary, driven by short-term volatility, or something more structural.

Because if confidence returns, GQG could stabilise quickly.

But for now, the market is focused on what’s leaving, not what’s working.

The post Why this $5 billion ASX financial stock is slipping today appeared first on The Motley Fool Australia.

More reading

• GQG Partners share price in focus as Q1 FUM update reveals outflows
• ASX 200 shares rip with financials leading a remarkable recovery last week
• 2 of the best ASX dividend shares to buy in April
• 3 ASX income stocks trading at attractive prices
• Where to invest $2,000 in ASX dividend shares

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

Electro Optic Systems Holdings Ltd (ASX: EOS) shares have been one of the ASX’s wildest rides over the past few months.

After collapsing to $5.05 in mid-February during the Grizzly short-seller fallout, the defence technology stock staged a dramatic rebound. It has since traded back near record territory, recently pushing as high as $11.80 in March before another volatile pullback.

That quick recovery raises an interesting question for investors.

Will EOS shares ever revisit the $5 level, or has the business fundamentally moved into a different valuation range?

Here’s what could decide that.

Why the $5 sell-off happened

The move to $5 was driven less by operations and more by confidence around the company.

The Grizzly report in early February directly challenged EOS’ Korean Goldrone laser contract, MARSS acquisition assumptions, and broader disclosure quality. That forced the company into a trading halt before management issued a detailed response rejecting the claims.

At the time, the sell-off was severe because EOS had already rallied hard into the event.

The market quickly shifted from pricing in rapid defence growth to focusing on funding risk, execution, and trust in future milestones.

But since then, EOS has continued backing the rebound with real operational progress.

The company ended FY25 with an unconditional order book of $459 million. It secured a $100 million funding facility, expanded its laser manufacturing footprint into Singapore, and continued winning new remote weapon system (RWS) orders.

Undoubtedly, that is a much stronger fundamental base than what existed when the stock first broke below the $5 mark.

What would send it back there?

For EOS shares to revisit $5, the market would likely need to see another major confidence shock rather than simple day-to-day volatility.

The most obvious risk remains execution.

The company still needs to convert its large order book into revenue, margins, and cash flow. Investors will also be watching whether the conditional US$80 million Goldrone laser opportunity converts into a fully binding contract in the June quarter, following the revised timeline flagged in March.

A miss on that milestone, slower revenue conversion, or another externally driven short-seller style event could reopen the path lower.

Foolish Takeaway

Personally, I would be far more interested in EOS on renewed weakness than after another sharp rally.

The business now has a larger contracted revenue base, stronger funding support, and exposure to defence segments where demand is still rising globally.

That said, the volatility remains too high for this to ever become a major portfolio position for me.

If the share price were to drift back toward the $5 range on sentiment rather than a deterioration in fundamentals, I would be inclined to put a small portion of capital to work.

The post Will EOS shares ever go back to $5? appeared first on The Motley Fool Australia.

More reading

• Why are shares in this ASX defence company tanking today?
• Why this ASX defence stock could be one to watch on Tuesday morning
• EOS shares rebound after a surprise twist in its South Korean laser deal
• What is Bell Potter saying about DroneShield and EOS shares this week?
• Why EOS shares are tumbling 11% today as investors weigh a key defence catalyst

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems. 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 Vanguard Australian Shares High Yield ETF (ASX: VHY) is quietly pushing into record territory on Monday.

In mid-afternoon trade, the VHY unit price is up 0.25% to $85.36, after earlier touching a fresh all-time high of $85.65.

That move extends the ETF‘s strong 2026 run, with the income-focused fund now up 8.67% year to date and 25.71% over the past 12 months.

The latest gain also leaves VHY sitting at the very top of its 52-week range, which previously topped out near $85.57.

So, what is driving this popular ASX dividend ETF to new highs?

Income demand and market leadership are doing the heavy lifting

VHY’s recent strength looks closely tied to where investors are still finding relative safety in the current market.

While growth and small-cap names have remained volatile, money has continued rotating into established areas. These include dividend-paying blue chips, particularly banks, miners, and large industrial stocks.

And that plays directly into VHY’s strategy.

The ETF tracks the FTSE Australia High Dividend Yield Index, giving investors diversified exposure to higher-yielding Australian shares.

Its largest exposures remain concentrated in sectors that have performed well this year, especially financials and resources.

Major positions include names such as Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), National Australia Bank Ltd (ASX: NAB), and Wesfarmers Ltd (ASX: WES).

These stocks have generally remained among the ASX’s more resilient large-cap dividend payers, helping to support the Vanguard’s steady climb.

Yield, franking, and simplicity still appeal

Part of VHY’s appeal is its straightforward role in an Australian portfolio.

The fund currently offers a distribution yield of around 5.35% and charges a 0.25% management fee. This helps explain why it remains one of the ASX’s more widely used income ETFs.

Rather than relying on one or two bank or mining shares, VHY spreads that income exposure across roughly 80 holdings. It also allows investors to retain meaningful franking credit benefits.

That said, the trade-off remains concentration.

Because the ETF leans heavily toward financials and resources, its performance can still be influenced by bank earnings, commodity prices, and dividend cycles.

Still, today’s move to a record high tells us that the market continues rewarding dependable yield and large-cap quality.

A portion of a portfolio in a quality ETF can be very beneficial, particularly for investors focused on income and long-term market exposure.

In this current market, that mix of yield, franking, and blue-chip exposure continues to strongly support investor demand.

The post Guess which ASX ETF just hit an all-time high today? appeared first on The Motley Fool Australia.

More reading

• Why these ASX ETFs could be top picks for investors in their 50s
• My top ASX passive income picks for April
• Which ASX ETFs I’d buy for retirement investing
• How I’d invest $100,000 for retirement income on the ASX right now
• 3 ASX ETFs to fund a comfortable retirement

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

Looking to add a quality ASX dividend share to your portfolio with the added potential for some outsized capital gains?

Then you might want to have a look at Count Ltd (ASX: CUP).

In afternoon trade on Monday, Count shares are up 0.5% at $1.065 each, shaking off the 0.5% losses posted by the All Ordinaries Index (ASX: XAO) at this same time.

Taking a step back, shares in the integrated accounting and wealth services provider are up 42% in 12 months, well ahead of the 14.4% one-year gains posted by the All Ords.

The ASX dividend share also trades on a fully-franked trailing yield of 4.5%.

And according to the analysts at Canaccord Genuity, the year ahead could be even more profitable for stockholders.

Here’s why.

ASX dividend share expanding its footprint

In a new report released on Friday, Canaccord sounded a bullish note on Count’s acquisition of Oracle Group, announced to the market on 31 March.

The ASX dividend share is purchasing Oracle, which provides financial advice, accounting and investment management services, for $72.2 million. Oracle has a network of 14 offices across New South Wales, Victoria, and Queensland.

“The acquisition will significantly enhance Count’s east coast presence and, importantly, materially grow our exposure to highly attractive Wealth segment revenues,” Count CEO Hugh Humphrey said on the day.

“We believe this is a good price for a good acquisition,” Canaccord analysts said on Friday.

According to the broker:

We believe management has both articulated and executed its inorganic growth strategy with tuck-in acquisitions occurring regularly throughout the year (as has been the case for the past several years) as well as these larger transformational acquisitions such as Diverger in FY24 and now Oracle (expected to close prior to end FY26).

Commenting on the potential benefits of the acquisition for the ASX dividend share, Canaccord noted:

First, it appears a strong cultural fit and increases the exposure to financial planning and Wealth earnings outcomes – a stated desire of management. Secondly, we believe the structure of this business, with a high proportion of salaried employees, presents a lower risk for integration and future earnings. Finally, we believe this acquisition will add further to the ‘flywheel’ effect and expect there will be a further uplift in earnings in time as a result of this benefit.

Canaccord has a buy rating on Count shares. The broker increased its 12-month price target to $1.65 a share (previously $1.50).

That represents a potential upside of 55% from the current Count share price. And it doesn’t include those upcoming dividends.

The post Why this quality ASX dividend share is tipped to surge 55% appeared first on The Motley Fool Australia.

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