Category: Stock Market

Retiring with $1 million in superannuation is a big goal.

It is also more realistic for some Australians than others. A strong salary can make a major difference because employer super contributions are based on income, and higher earners may have more room to make extra contributions along the way.

But I do not think the goal should be dismissed as impossible.

With time, discipline, sensible investment choices, and a focus on increasing contributions where possible, a $1 million super balance can be a realistic long-term target for some investors.

Know what the target means

The first tip is to understand what $1 million actually represents.

According to ASFA, the lump sum needed at retirement for a comfortable lifestyle is estimated at $630,000 for a single homeowner and $730,000 for a couple. That assumes a partial Age Pension.

So, a $1 million super balance is above that benchmark. It could give retirees more flexibility, more income options, and a larger buffer against inflation, healthcare costs, market volatility, and the risk of living longer than expected.

That does not mean everyone needs exactly $1 million.

A homeowner with modest spending needs may need less. Someone renting, retiring early, travelling often, or wanting to leave money behind may need more.

I think the key is to set a target based on the lifestyle you actually want, then work backwards.

Use income to your advantage

The second tip is to take contributions seriously.

Australia’s superannuation system does a lot of the work automatically, with employers required to contribute 12% of ordinary time earnings. That is a strong starting point, especially for people on good salaries.

For example, someone earning $120,000 a year would receive around $14,400 in employer super contributions before tax. Over decades, that can become a meaningful foundation.

But relying only on compulsory contributions may not be enough for everyone.

That is where salary sacrifice or personal deductible contributions can help, as long as investors stay within the relevant contribution caps. At the time of writing, the general concessional contributions cap is $32,500.

Adding extra money early can be especially powerful because it gives compounding more time to work.

A good salary helps, but the habit matters too. Small increases after pay rises, bonuses, or debt repayments can make a real difference over a long working life.

Invest for long-term growth

The third tip is to make sure the money is actually working.

Superannuation is usually invested for decades, so I think younger members should pay close attention to their investment option. A very conservative option may feel safe, but it may also reduce the chance of building a large balance over time.

Growth assets, such as shares, can be volatile. But they have historically played an important role in long-term wealth creation.

Fees also matter. Small differences in fees and performance can make a big difference to a final super balance.

That is why I would regularly review my super fund, investment option, insurance settings, and fees. I would also avoid having multiple super accounts unless there is a clear reason.

Foolish takeaway

Retiring with $1 million in superannuation will not be easy for everyone.

A good salary can help enormously, and starting early makes the task much easier. But the main ingredients are still simple: contribute consistently, invest for growth where appropriate, keep fees under control, and give compounding enough time to work.

For Australians with decades ahead of them, I think a $1 million super balance is a goal worth taking seriously.

The post 3 tips for retiring with $1 million in superannuation appeared first on The Motley Fool Australia.

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• China’s CPI and PPI data drops today. Here is the potential impact for these ASX shares

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.

Of the economic data releases that regularly move ASX shares, few matter more than China’s monthly inflation figures.

Today, China’s National Bureau of Statistics publishes June CPI and PPI data.

The reading will provide the most current picture of whether China’s economy is reflating amid commodity and energy price pressures from the Middle East conflict, or whether domestic demand remains too weak to sustain higher prices.

Shareholders in BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), and Fortescue Ltd (ASX: FMG) should keep a close eye on these developments.

What the recent trend shows

May CPI held steady at 1.2% year-on-year, slightly below the 1.3% market expectation. This confirmed that consumer-level inflation remained contained and gave Beijing room to maintain accommodative policy settings.

May PPI told a more inflationary story, rising 3.9% year-on-year, the fastest pace since July 2022.

This was driven by surging commodity and energy prices from the Iran war supply disruptions.

Mining prices rose 15.8% year-on-year and raw materials climbed 9.2%.

Both categories are directly relevant to the revenue BHP, Rio Tinto, and Fortescue generate from selling iron ore and copper into the Chinese market.

What it means for BHP

BHP Group Ltd (ASX: BHP) is the most diversified of the three ASX shares, with earnings spread across iron ore, copper, and potash.

Its copper exposure makes it particularly sensitive to any sign that Chinese industrial activity is weakening.

BHP is also down after workers announced plans to strike at its WA iron ore terminal on 16 July.

This adds to a company-specific complication alongside the broader China data sensitivity.

What it means for Rio Tinto

Rio Tinto Ltd (ASX: RIO) is the most diversified across commodities, with exposure to iron ore, copper, aluminium, and lithium.

That breadth means Rio’s earnings are sensitive to a wider array of Chinese demand signals simultaneously.

Rio Tinto shares fell 7.1% in June as the temporary ceasefire eased oil prices and pulled commodity sentiment lower.

A strong PPI print tomorrow confirming China’s factory inflation remains elevated would be positive for Rio’s revenue outlook across all three of its primary commodities.

What it means for Fortescue

Fortescue Ltd (ASX: FMG) is the most purely exposed of the three to China’s iron ore demand, with virtually all revenue coming from a single commodity sold almost exclusively into the Chinese steel market.

Fortescue fell 4.2% in June, underperforming both BHP and Rio Tinto. This partly reflected the company’s higher sensitivity to Chinese demand deterioration.

Furthermore, Bloomberg has reported that China’s state-backed iron ore buyer has signalled plans to blacklist Fortescue’s Super Special Fines product from 15 July, a company-specific headwind that adds to the near-term risk around tomorrow’s data.

A constructive June PPI print would help offset that headwind. On the other hand, a weak print would amplify it.

A note on the data for these ASX shares

June’s figures cover a period when the Strait of Hormuz briefly reopened following the ceasefire before last night’s fresh US strikes reversed that dynamic.

Investors should not interpret a softer June PPI print purely as a sign of Chinese demand weakness.

It may also reflect the brief period of ceasefire-driven commodity price relief before hostilities resumed.

Foolish takeaway for ASX shares

China’s June CPI and PPI data drops today and will give the most current indication on whether Chinese industrial activity can sustain the commodity demand underpinning BHP, Rio Tinto, and Fortescue.

A positive print would reinforce the bull case for all three ASX shares.

A surprise to the downside, combined with the other headwinds each stock is currently carrying, would add further near-term pressure.

The post China’s CPI and PPI data drops today. Here is the potential impact for these ASX shares 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Fletcher Building Ltd (ASX: FBU) share price is in focus today after the company raised its full-year FY26 EBIT guidance by around 6.4% to $400–$403 million, with strong Q4 volume gains across key divisions.

What did Fletcher Building report?

• FY26 EBIT guidance increased to $400–$403 million, including ~$52 million from surplus property sales
• FY26 EBIT from continuing operations (excluding property sales) now expected at $348–$351 million, up ~3.6% from mid-June guidance
• Light Building Materials division saw improved volumes, supported by procurement benefits and cost savings
• Iplex businesses in both NZ and Australia reported robust demand as customers accelerated purchases
• Distribution division’s PlaceMakers Frame & Truss volumes rose 5.4% on Q3 and 12.8% year-on-year
• Residential units taken to profit in FY26 fell to 536, down from 666 in FY25

What else do investors need to know?

Fletcher Building’s positive quarterly volumes across core manufacturing and distribution segments were partly driven by customers bringing forward demand, especially ahead of expected price increases. These temporary market dynamics are set to normalise in the first quarter of FY27, which could moderate near-term growth.

The company also finalised more details on the Laminex Cheltenham property sale in Australia, locking in expected EBIT gains and clarifying cost treatment in line with accounting best practices. From FY27, Fletcher Building will adopt an IFRS 18 compliant Income Statement, dropping “Significant Items” as a separate expense category for cleaner financial reporting.

What’s next for Fletcher Building?

While existing construction projects continue to support demand in the near term, Fletcher Building cautions that persistent input cost uncertainty and macroeconomic pressures may mean delays or cancellations of new commercial projects. Management notes this could soften Group performance in the first half of FY27 if trends continue.

The company remains focused on operational improvements, productivity gains, and supply chain efficiencies across its divisions to help offset market challenges. Investors will watch closely to see whether ongoing momentum in civil and infrastructure demand can balance out slower residential and commercial activity.

Fletcher Building share price snapshot

Over the past 12 months, Fletcher Building shares have risen 1%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 3% over the same period.

View Original Announcement

The post Fletcher Building lifts FY26 profit guidance as quarterly volumes rise appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

I’m a big believer in the idea that that small Australian shares can deliver better long-term returns than large businesses due to their longer growth runways and being less researched by the market.

The investment team at WAM Microcap Ltd (ASX: WMI) are always looking for opportunities that could allow the listed investment company (LIC) to outperform the ASX share market.

Wilson Asset Management has outlined two Australian businesses that could make excellent returns from here. Let’s dive in.

Stealth Group Holdings Ltd (ASX: SGI)

The first Australian share to tell you about is Stealth Group, which WAM described as a business-to-business wholesaler and distributor of hardware, industrial,safety and consumer products.

In mid-June, the company released a strategy and trading update which reaffirmed previous guidance of another record year, with FY26 preliminary unaudited net profit after tax (NPAT) of $5.8 million, exceeding expectations.

WAM also noted that the company reiterated its long-term targets for annual sales of $500 million and an operating profit (EBITDA) margin of between 8% to 12% in FY28. The investment team noted the Stealth Group share price increased significantly after this announcement.

The investment team concluded:

We see scope for further re-rating of the share price over the next 12 months as the market continues to recognise the strength of Stealth’s earnings and growth outlook.

SharonAI Holdings Inc (NASDAQ: SHAZ)

The other Australian share WAM wanted to highlight is SharonAI. It’s not listed on the ASX, though it reportedly plans to list on the ASX boards in the first half of FY27, according to WAM. For now, it’s an Australian business listed on the NASDAQ.

The investment team described SharonAI as an Australian sovereign artificial intelligence (AI) infrastructure provider.

WAM noted that during June, the company announced a significant six-year strategic compute collaboration with Nvidia (NASDAQ: NVDA) to enable 72MW of new data centre capacity in Australia.

The companies plan to deploy Nvidia’s DSX AI factory design and scale up to 40,000 Grace Blackwell GB300 graphics processing units (GPUs), which are specialised chips used to power AI workloads, to service demand from AI startups, enterprises and university researchers.

After that agreement, SharonAI’s total AI factory capacity increased to 132MW, with 102MW contracted to end customers.

WAM noted that the company expects to have more than 55,000 total Nvidia GPUs deployed by mid-2027.

WAM Microcap said it invested in SharonAI as a pre-initial public offering (IPO) investment in December 2025 at US$1 per convertible note. It listed on the NASDAQ in February 2026 at US$30 per share and the notes were converted into ordinary shares in June 2026.

Since listing, the SharonAI share price has increased by 182.2% as of 30 June 2026.

WAM concluded its thoughts on the Australian share with the following:               

We maintain a positive outlook towards SharonAI and believe news flow is likely to remain positive over the near-term.

The post 2 small Australian shares with big potential appeared first on The Motley Fool Australia.

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

There are a number of great ASX shares with high dividend yields worth knowing about. Australian companies can be some of the best options for passive income due to their generous dividend payout ratios and the bonus of franking credits.

We’re going to look at two ASX dividend shares with exceptionally high dividend yields. They offer significantly more income than the current interest rate on cash in the bank.

Below are two of my favourite ideas for large dividend yields.

Future Generation Australia Ltd (ASX: FGX)

Future Generation Australia is a listed investment company (LIC) offering shareholders a large and growing dividend.

Instead of being managed by one fund manager, this LIC’s money is managed by 16 different fund managers who all work for free so that Future Generation Australia can donate 1% of its net assets each year to youth charities – a great initiative.

This portfolio is significantly less exposed to the largest 10 businesses on the ASX, making it much more diversified, in my opinion. It gives exposure to more than 430 underlying securities.

Future Generation’s portfolio has outperformed the S&P/ASX All Ordinaries Accumulation Index (ASX: XAOA), returning an average of 0.9% per annum more than the index between inception in September 2014 and May 2026. I think it helps to look at smaller, faster-growing businesses.

The solid investment returns have allowed this ASX share to steadily increase its payout each year since 2015 – that’s a decade of dividend growth! The business recently announced a 5.5% increase of its interim dividend and gave guidance of an annual dividend per share of 7.6 cents per share for FY26.

In other words, it’s guiding it will pay a grossed-up dividend yield of around 8% for 2026, including franking credits.

WAM Microcap Ltd (ASX: WMI)

WAM Microcap is the other ASX share I want to highlight. It’s also a LIC, targeting the most exciting undervalued growth opportunities in the Australian microcap market.

As an example of the businesses in the portfolio, some of its current holdings include Artryra Ltd (ASX: AYA), Beacon Lighting Group Ltd (ASX: BLX), EchoIQ Ltd (ASX: EIQ), FINEOS Corporation Holdings PLC (ASX: FCL) and Kogan.com Ltd (ASX: KGN).

Its investment performance has been solid, with its portfolio delivering an average return per year of 14.4% since inception in June 2017, before fees, expenses and taxes.

Due to that high level of passive income, the business has regularly increased its annual dividend since FY18, with no dividend reductions during that period (along with a few special dividend payments).

WAM Microcap has provided guidance that it will pay an annual dividend per share of 10.7 cents in FY26. That translates into a grossed-up dividend yield of 10.5%, including franking credits, at the time of writing. It’s hard to find a business with a consistent dividend that has a larger yield than that.

These aren’t the only businesses offering appealing dividend income on the ASX.

The post 2 ASX shares with dividend yields above 7.5% appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Future Generation Australia and Wam Microcap. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended FINEOS Corporation and Kogan.com. The Motley Fool Australia has positions in and has recommended FINEOS Corporation. The Motley Fool Australia has recommended Kogan.com. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

While the Australian Age Pension is one of the most generous in the world, I’d rather rely on quality, high-yield ASX dividend stocks.

I enjoy owning businesses that are able to provide a good level of passive income and payout growth over time.

Australian Foundation Investment Co Ltd (ASX: AFI) is one of the ASX dividend stocks I’d be comfortable relying on, though it wouldn’t be the only one. I believe it’s important to have a diversified portfolio when it comes to dividends.

There are a few aspects that make the listed investment company (LIC) an appealing option.

Diversification

If I had to rely on an ASX dividend stock to continue paying passive income across all economic conditions, I’d pick an investment with the ability to pay resilient passive income.

Some older Australians who may have relied on dividend income from large ASX bank shares and ASX mining shares may already have seen their payouts cut this decade. At the start of the 2020s, we saw COVID-19 impact bank payouts. Iron ore price volatility has led miners to reduce their payouts.

The AFIC business model is about giving investors exposure to a portfolio of ASX blue-chip shares, allowing the LIC can provide investors with a mixture of passive income and long-term capital growth.

Some of the positions in the portfolio include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Macquarie Group Ltd (ASX: MQG), Wesfarmers Ltd (ASX: WES), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB) and Transurban Group (ASX: TCL).

But, it owns plenty of other ASX shares in the portfolio too.

High-yield ASX dividend stock

One of the most appealing aspects of Australian Foundation Investment Co is the pleasing level of passive income it can provide to our bank accounts.

The business has been very consistent with its payout this century, giving investors a high level of income security.

AFIC recently announced that it intends to declare a final dividend of 14.5 cents per share, as well as a special dividend of 2.5 cents per share.

That means its regular dividend for FY26 equates to a grossed-up dividend yield of 5.5%, including franking credits, at the time of writing. Including special dividends, its payout translates into a grossed-up dividend yield of 6.5%, including franking credits.

While the company’s regular annual dividend isn’t increased every single year, it has increased regularly since FY22.

Low costs

The LIC has one of the lowest costs in the country when it comes to the annual management costs. That’s important because it significantly helps the net return of the portfolio.

The high-yield ASX dividend stock has an annual management fee of 0.16%, which means most of the returns are staying in the hands of investors rather than being lost to management fees or performance fees.

With a solid long-term portfolio net return, the business has built an excellent profit reserve, enabling the business to continue paying good dividends in the long-term.

How many AFIC shares would it take to match the Age Pension?

Right now, the maximum Age Pension for a single person is approximately $31,200 annually.

To receive $31,200 annually from AFIC (excluding special dividends), an investor would need 117,736 Australian Foundation Investment Co shares based on the expected FY26 payout excluding the franking credits and 82,416 AFIC shares including the franking credits.

I’d suggest Australian investors should have more than just one high-yield ASX dividend stock in a portfolio, though AFIC would be an effective inclusion, in my opinion.

The post 117,736 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group, Transurban Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Transurban Group. The Motley Fool Australia has recommended BHP Group, Macquarie Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Ioneer Ltd (ASX: INR) shares have been strong performers over the past 12 months.

During this time, the ASX lithium share has risen a sizeable 45%.

But if you thought the gains were over, think again! 

Why this ASX lithium share could keep rising

Bell Potter was pleased to see the lithium developer announce agreements with the Korea Overseas Infrastructure & Urban Development Corporation (KIND) and Hyundai Engineering. The broker believes it is a testament to the quality of the company’s Rhyolite Ridge project. It said:

While the engagement remains non-binding, the calibre of and the commentary from these counterparties provides a strong endorsement of INR’s Rhyolite Ridge project development pathway. The MOUs are clearly part of INR’s Strategic Partnering Process to introduce new project-level equity funding in support of a Final Investment Decision. 

Rhyolite Ridge is fully permitted; an October 2025 project economic update outlined potential production of 27.8ktpa lithium hydroxide and 135.5ktpa boric acid at a capital cost of US$1.7b and with a lithium AISC of US$4,628/t LCE (net of boron coproduct credits). The project is also backed by a US$996m US Department of Energy concessional loan. With cash of US$62m (31 March 2026), INR is fully funded to FID.

Big potential returns

In response to the news, Bell Potter has retained its speculative buy rating and 40 cents price target on the ASX lithium share.

Based on its current share price of 14.5 cents, this implies potential upside of 175% for investors over the next 12 months.

Commenting on its investment thesis, Bell Potter said:

Rhyolite Ridge is strategically important as a fully permitted, near-term and USlocated source of lithium and boron supply. Both lithium and boron are USGS-designated critical minerals. Rhyolite Ridge received development approval in October 2024 and engineering design is 70% complete. Lithium markets have recently strengthened, and we expect that continued growth in underlying demand and limited new sources of supply will support lithium chemicals prices over the medium to long term. Our INR valuation is $0.40/sh. 

Key INR value catalysts are the outcomes of the Strategic Partnering Process in the lead-up to a Final Investment Decision and commencement of development, all expected in 2H 2026. INR is an asset development company with forecast cash flows only; our Speculative risk rating recognises this higher level of investment risk and share price volatility.

The post Why this red hot ASX lithium share could rise 175% appeared first on The Motley Fool Australia.

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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 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.

Building a portfolio for retirement income isn’t just about finding the highest dividend yields. The goal is to create a reliable stream of income that can continue growing over time, while also preserving capital through different market cycles.

That’s why I prefer a mix of high-quality companies and diversified exchange-traded funds (ETFs). Together, they can provide exposure to different sectors, geographies and income sources, reducing the reliance on any single investment.

If I were building a portfolio for retirement income today, these five ASX investments would be at the top of my list.

BHP Group Ltd (ASX: BHP)

When it comes to retirement income, BHP offers something few companies can match: ownership of some of the world’s lowest-cost mining assets.

The mining giant generates enormous cash flows from iron ore, copper and metallurgical coal, allowing it to return significant amounts of capital to shareholders through dividends over the long term.

While earnings and dividends will naturally fluctuate with commodity prices, BHP’s strong balance sheet, operational scale and diversified resource base make it one of the most dependable dividend payers on the ASX.

The growing importance of copper in electrification and renewable energy also provides an attractive long-term growth opportunity alongside its income appeal.

Commonwealth Bank of Australia (ASX: CBA)

No retirement income portfolio feels complete without exposure to Australia’s biggest bank.

Commonwealth Bank has built an enviable record of generating consistent profits through economic cycles, supported by its dominant position in home lending, deposits and business banking.

Although the shares rarely look cheap, investors aren’t simply paying for today’s earnings. They’re buying a business with outstanding profitability, a powerful brand and a history of delivering fully franked dividends.

For retirees seeking dependable income, CBA continues to earn its place.

Transurban Group Ltd (ASX: TCL)

Infrastructure can add another layer of stability to retirement income, and that’s exactly where Transurban shines.

The company owns and operates many of Australia’s busiest toll roads, generating recurring cash flows from assets that are extremely difficult to replicate. As cities continue growing and traffic volumes increase over time, Transurban benefits from both rising usage and inflation-linked toll increases across many of its concessions.

That combination has supported a long history of attractive distributions.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

No single company should determine the success of a retirement income portfolio. That’s why I’d include the Vanguard Australian Shares High Yield ETF.

VHY provides exposure to dozens of Australia’s highest-yielding dividend-paying companies across sectors including banking, resources, healthcare, telecommunications and consumer staples. Instead of relying on one dividend stream, investors receive income from a broad collection of established Australian businesses.

That diversification helps smooth income over time while reducing stock-specific risk.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

While VGS isn’t known for delivering a high dividend yield, I still believe it plays an important role in generating retirement income.

The ETF invests in hundreds of leading companies across developed markets, including many of the world’s largest technology, healthcare and consumer businesses. Those companies may pay lower dividends today, but they also offer significant earnings and capital growth potential.

Over a long retirement, that growth can help offset inflation, increase portfolio value and support rising future income through capital appreciation or selective withdrawals.

The post I’d buy these 5 ASX dividend investments for retirement income appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Transurban Group. The Motley Fool Australia has recommended BHP Group, Vanguard Australian Shares High Yield ETF, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

BHP Group Ltd (ASX: BHP) shares are arguably one of the best options in the mining sector.

However, the potential upside from current levels could be somewhat limited.

So, if you are looking for big potential returns and have a high tolerance for risk, then it could be worth checking out the ASX mining share in this article.

That’s because Bell Potter believes it could more than double in value over the next 12 months.

Which ASX mining share?

The mining share that Bell Potter is recommending to investors is Minerals 260 Ltd (ASX: MI6).

It highlights that the company has released an updated mineral resource estimate (MRE), a pre-feasibility study (PFS) and a maiden ore reserve estimate (ORE) for its 100% owned, 6.2Moz Bullabulling Gold Project (BGP) in Western Australia.

While the market didn’t react positively to these releases, with its shares crashing following their release, Bell Potter remains positive and notes that they mark the delivery of key catalysts in line with guidance and major milestones in the advancement of the BGP towards development.

Bell Potter believes BGP will be a significant, high margin, long-life project. It said:

The PFS presents a compelling case for project development. It outlines a long-life, high margin gold project that positions MI6 to become a stand-alone, mid-tier gold producer. It is based on a 2.5Moz Maiden ORE that is the largest undeveloped gold Reserve in Australia not owned by an existing producer. 

Key parameters include a maiden ORE of 90Mt @ 0.86g/t Au for 2.5Moz Au supporting a 5.0Mtpa process plant producing an average of 150kozpa (years 1-10) at average All-In-Sustaining-Costs (AISC): A$2,520/oz (years 1-10) over a 19 year mine life for CAPEX of $180m preFID plus $675m (post-FID, pre-production). MI6 estimate a project NPV5 of US$2.3b and IRR of 43% using a US$3,800/oz (A$5,500/oz) gold price. The PFS does not yet incorporate upside from today’s updated MRE.

Shares tipped to more than double

According to the note, the broker has retained its speculative buy rating on the ASX mining share with an improved price target of $1.40 (from $1.35). 

Based on its current share price of 63.5 cents, this implies potential upside of 120% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

MI6 offers gold exposure via the 6.2Moz Bullabulling MRE, valuation uplift through discovery success, project advancement and de-risking as the BGP progresses towards production. MI6 holds ~$250m cash, sufficient to fund to Final Investment Decision (FID) in early CY27, long-lead items and early site works. We lift our valuation to $1.40/sh and retain our Speculative Buy recommendation.

The post BHP shares may not double in 12 months but this ASX mining share could appeared first on The Motley Fool Australia.

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

ASX exchange-traded funds (ETFs) are no longer a niche investment. They’ve become one of the fastest-growing parts of the Australian sharemarket.

Today, around two million Australians invest through ASX ETFs, attracted by their simplicity, low costs and ability to gain instant diversification without having to pick individual shares or hire an expensive fund manager.

And the momentum is only building. According to ASX data, ETF trading activity increased 26% during the last financial year, comfortably outpacing the broader sharemarket, where trading rose 22%.

So, what’s behind the surge, and are there any risks investors should keep in mind?

Why investors love ASX ETFs

The appeal of ASX ETFs is easy to understand. Instead of researching dozens of companies, investors can buy a single ETF and instantly gain exposure to hundreds of shares, bonds or other assets.

Some track the entire Australian sharemarket. Others focus on global shares, technology, healthcare, dividends or specific investment themes.

Fees also tend to be significantly lower than those charged by actively managed funds because most ETFs simply track an index rather than trying to outperform it.

For long-term investors, that combination of diversification, transparency and low costs has proven incredibly attractive.

Many ETFs also pay regular distributions, making them popular with income-focused investors and retirees.

Perhaps most importantly, they’re easy to buy. Investors can purchase ETFs through the ASX in exactly the same way they buy ordinary shares.

The market keeps getting bigger

It’s not just investor numbers that are climbing. The number of ETFs listed on the ASX has more than doubled over the past five years to 456 products. Last financial year alone saw another 72 ASX ETFs launched, according to ASX data.

Meanwhile, funds under management across Australia’s ETF industry have now surpassed $350 billion, highlighting just how quickly the sector has matured.

That’s good news for investors because it provides more choice than ever before. Whether someone wants exposure to Australian blue-chips, US technology giants, emerging markets or fixed income, there’s now likely to be an ASX ETF designed for that purpose.

More choice also means more risk

However, rapid growth brings its own challenges. As investor demand continues rising, fund managers are racing to launch new products targeting the latest investment trends.

Artificial intelligence has become the newest battleground.

Several ASX ETF providers have recently launched AI-focused funds that promise investors exposure to companies expected to benefit from the AI revolution. Examples include the Global X Artificial Intelligence ETF (ASX: GXAI), the Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ) and the VanEck Global Defence ETF (ASX: DFND), which also has meaningful exposure to AI-driven defence technologies.

While thematic ETFs can provide targeted exposure to exciting industries, they often carry higher risks than broad-market index funds. Many hold relatively concentrated portfolios, while others launch after a sector has already experienced a significant rally.

In other words, investors may end up buying into yesterday’s hottest trend rather than tomorrow’s biggest opportunity.

Foolish takeaway

The growth of ASX ETFs reflects a broader shift towards simple, low-cost investing. With two million Australians now using ETFs and more than $350 billion invested in the sector, they have become a mainstream way to build long-term wealth.

But as the number of available products continues to explode, investors should remember that not all ETFs are created equal. Choosing a diversified, well-constructed fund remains just as important as deciding to invest in an ETF in the first place.

The post ASX ETFs are booming. Should you join in? appeared first on The Motley Fool Australia.

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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.