Category: Stock Market

The amount of money you have to invest can change the best way to approach the ASX.

A $500 investment needs simplicity. A $5,000 investment gives more room for choice. A $50,000 investment allows investors to think more carefully about diversification, income, growth, and risk.

Here is how investors could think about putting each amount to work.

How to invest $500 in ASX shares

With $500, the most important thing is getting started sensibly.

A smaller investment does not leave much room to build a portfolio of individual shares. Brokerage costs can also impact you more when the investment amount is modest.

That is why an ASX exchange traded fund (ETF) could be a useful starting point.

A fund such as the iShares S&P 500 ETF (ASX: IVV) gives investors exposure to 500 of the largest listed companies in the United States through one trade.

That includes businesses across technology, healthcare, financial services, consumer goods, communication services, and industrials.

This can be a simple way to gain instant diversification and global exposure. It also removes the pressure of trying to choose the perfect first share.

The first $500 may not transform a portfolio overnight, but it can create momentum. Once the first investment is made, investors can add more over time and allow compounding to do more of the work.

How to invest $5,000

With $5,000, investors have more flexibility.

One option would be to split the money between a broad ETF and one or two high-quality ASX shares.

For example, an investor could use part of the money for the IVV ETF or the Vanguard MSCI Index International Shares ETF (ASX: VGS), then put the remainder into a quality ASX blue chip.

Wesfarmers Ltd (ASX: WES) could be one option. The company owns Bunnings, Kmart, Officeworks, and industrial businesses, giving investors exposure to a collection of strong brands and cash-generating assets.

Another possibility is Goodman Group (ASX: GMG), which has exposure to logistics property, industrial assets, and data centres across key global markets.

The advantage of this approach is balance. The ETF provides diversification, while the individual shares allow investors to start building positions in companies they believe can compound over time.

At this level, investors should still avoid spreading the money too thinly. Owning too many small positions can make the portfolio harder to follow and may reduce the impact of the best ideas.

How to invest $50,000

A $50,000 investment opens up more choices. At this size, investors can build a more complete ASX portfolio with a mix of ETFs, growth shares, dividend shares, and defensive holdings.

A possible structure could include a core allocation to broad ETFs such as the IVV, VGS, or the Vanguard Australian Shares Index ETF (ASX: VAS). These funds can provide exposure to large baskets of local and international companies.

From there, investors could add selected ASX shares.

For growth, companies such as Xero Ltd (ASX: XRO), Pro Medicus Ltd (ASX: PME), and Goodman could be worth considering. These businesses give exposure to cloud software, medical imaging technology, and global property infrastructure.

For income, investors may look at shares such as Transurban Group (ASX: TCL), APA Group (ASX: APA), or Rural Funds Group (ASX: RFF). These offer exposure to toll roads, energy infrastructure, and agricultural property assets.

With $50,000, risk management becomes more important. Investors can spread money across different sectors, avoid relying too heavily on one company, and keep some cash available for future opportunities.

Build the habit

The best approach will depend on an investor’s goals, time horizon, risk tolerance, and need for income.

But the broad idea is quite simple. Start with diversification when the investment amount is small, add quality shares as the portfolio grows, and build a stronger mix of growth, income, and defensive exposure once the capital base becomes larger.

The post How to invest $500, $5,000, and $50,000 on the ASX appeared first on The Motley Fool Australia.

More reading

• Why US stocks have hit record highs while ASX shares have barely risen in 2026
• Want a pay rise? These ASX dividend shares keep delivering
• 3 strong ASX ETFs for beginner investors
• 3 top ASX shares to buy for an SMSF
• The retirement ETF portfolio I’d add to super

Motley Fool contributor James Mickleboro has positions in Goodman Group, Pro Medicus, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Transurban Group, Wesfarmers, Xero, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Apa Group, Rural Funds Group, Transurban Group, and Xero. The Motley Fool Australia has recommended Goodman Group, Pro Medicus, Vanguard Msci Index International Shares ETF, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Many companies pay dividends. Far fewer ASX dividend shares manage to increase them year after year, through economic booms, recessions, market crashes, and everything in between.

That’s what makes these three ASX dividend shares stand out. Each has built a reputation for rewarding shareholders with growing income streams over long periods of time. For income-focused investors, they could be worth a closer look.

APA Group (ASX: APA)

APA Group owns and operates critical energy infrastructure across Australia, including gas pipelines, electricity transmission assets, and renewable energy connections.

Its biggest strength is the essential nature of its assets. Much of APA’s revenue comes from long-term contracts, providing relatively stable cash flows regardless of economic conditions. That predictability has helped support one of the most impressive distribution growth records on the ASX.

The ASX dividend share has increased its annual distribution every year since 2004, delivering more than two decades of uninterrupted growth for investors.

The company has lifted its FY26 annual distribution to 58 cents per security. Based on the current share price, that equates to a distribution yield of around 5.6%.

There are risks to consider. APA carries significant debt and remains exposed to regulatory changes and the long-term transition away from fossil fuels. However, its growing exposure to electricity and renewable energy infrastructure could help offset some of those challenges.

Bell Potter expects APA to pay a distribution of 59 cents per security in FY27. Based on the current share price of $10.36, that would represent a forward yield of approximately 5.7%.

Argo Investments (ASX: ARG)

Argo Investments is one of Australia’s oldest listed investment companies.

Rather than operating a business directly, this ASX dividend share owns a diversified portfolio of high-quality ASX shares. Some of its largest holdings include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Rio Tinto Ltd (ASX: RIO).

Its strength lies in that diversification. Investors gain exposure to dozens of leading Australian companies through a single investment, helping reduce company-specific risk.

Argo has paid dividends every year since its inception in 1946. Even more impressively, those dividends have been fully franked since 1995.

While payouts do not rise every single year, the long-term trend remains strongly positive. Since 2010, shareholders have enjoyed dividend increases in most financial years.

The company recently announced an 8.8% increase in its interim dividend to 18.5 cents per share.

Combined with its previous dividend, Argo’s latest two payouts total 38.5 cents per share. At current prices, that translates to a grossed-up dividend yield of approximately 4.3%, including franking credits.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Washington H. Soul Pattinson has become something of a dividend-growth machine.

The investment company has increased its annual dividend every year since 1998, putting it on the verge of three decades of consecutive dividend growth.

A key reason for that success is diversification. Soul Patts owns investments across energy, resources, telecommunications, industrial property, building products, agriculture, financial services, electrification, swimming schools, and more.

That broad portfolio helps the ASX dividend share generate cash flow from multiple sources and reduces reliance on any single sector.

Importantly, management doesn’t distribute all available cash to shareholders. It retains capital and reinvests it into new opportunities, helping grow future earnings and dividends.

This combination of diversification, disciplined capital allocation, and long-term investment growth has enabled Soul Patts to steadily increase shareholder payouts across a wide range of market environments.

Its two most recent dividends currently equate to a grossed-up dividend yield of approximately 3.5%, including franking credits. For investors seeking a growing income stream, that consistency may be just as valuable as the yield itself.

The post Want a pay rise? These ASX dividend shares keep delivering appeared first on The Motley Fool Australia.

More reading

• Why US stocks have hit record highs while ASX shares have barely risen in 2026
• How to invest $500, $5,000, and $50,000 on the ASX
• How much passive income can I make from ASX shares?
• 3 ASX dividend favourites are hitting 52-week highs today. Are investors getting defensive?
• 8 ASX 200 shares with reaffirmed buy recommendations this week

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 Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Apa Group and Washington H. Soul Pattinson and Company Limited. 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.

I think a good beginner exchange traded fund (ETF) should be easy to understand, diversified enough to reduce single-company risk, and connected to a long-term idea that still makes sense years from now.

But which ones could tick these boxes?

Here are three ASX ETFs that could be strong options for beginner investors.

iShares S&P 500 AUD ETF (ASX: IVV)

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

For beginners, the value of this fund is that it gives instant exposure to the engine room of the US share market.

That means investors are not trying to guess which single American company will dominate the next decade. They are buying a portfolio that includes many of the companies already sitting at the centre of global business, technology, healthcare, finance, and consumer spending.

Holdings include NVIDIA (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT).

These companies are not just names on a screen. They help power artificial intelligence, smartphones, cloud computing, software, app ecosystems, and enterprise technology used across the world.

This can make it a simple way to make the first investment broad, familiar, and globally relevant.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

Another ASX ETF that could suit beginners is the Betashares Asia Technology Tigers ETF.

This fund gives investors exposure to Asia’s technology sector, which plays a very different role from Silicon Valley.

Asia is central to the hardware, manufacturing, memory chips, semiconductors, ecommerce, gaming, and digital platform economy. In many ways, it is where much of the digital world is built, supplied, and used at enormous scale.

Examples of holdings include SK Hynix (KRX: 000660), Samsung Electronics (KRX: 005930), and Taiwan Semiconductor Manufacturing Co (NYSE: TSM).

This makes the ETF useful for investors who want technology exposure that extends beyond the usual US mega-cap names. It can also provide access to companies that are deeply connected to the future of computing and digital consumption.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

A third ASX ETF to consider is the Betashares Global Cash Flow Kings ETF.

This fund is a useful reminder that investing is not just about exciting stories. It is also about businesses that turn sales into cash.

The fund focuses on global companies with strong free cash flow characteristics. That can be valuable because cash gives companies choices. It can fund growth, strengthen balance sheets, support buybacks, pay dividends, and help businesses manage tougher periods.

Holdings include NVIDIA, Visa (NYSE: V), and Costco (NASDAQ: COST).

That gives investors exposure to a mix of technology, payments, and consumer staples, but with a cash generation filter sitting behind the portfolio.

The post 3 strong ASX ETFs for beginner investors appeared first on The Motley Fool Australia.

More reading

• How to build a winning ASX portfolio with just 3 investments
• Where to invest $500 on the ASX right now
• 3 amazing tech ETFs to buy and hold forever
• The ASX investing strategy that could quietly make you rich
• How I’d invest $250 a week in ASX shares to aim for $700,000

Motley Fool contributor James Mickleboro has positions in Betashares Capital – Asia Technology Tigers Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Costco Wholesale, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, Visa, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Apple, Microsoft, Nvidia, Visa, 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.

A new report from VanEck has suggested that the potential US-Iran peace deal could remove a key headwind for emerging markets. 

According to the report, talks of a United States-Iran framework agreement that would reopen the Strait of Hormuz and extend the ceasefire have prompted a buying spree in equities and a fall to multi-month lows in Brent crude prices. 

The framework reportedly includes provisions that would allow Iran to resume oil exports immediately, a development that could increase global supply and help explain the market’s reaction.

Where do emerging countries fit into the puzzle?

The term “emerging markets” is often used to describe countries or regions undergoing fast economic growth. It describes countries that are undergoing growth and industrialisation.

While the situation between the US and Iran remains fluid and details are scarce, markets have reacted in a way that suggests a sustained reduction in energy market tensions could lead to lower inflation and, in turn, support a rebound in global growth.

All this would be welcome news for Australian investors, but it may be even better news for emerging markets investors. This is because oil shocks have historically created challenges for many emerging market economies, a pattern that has repeated across multiple energy crises over recent decades.

Higher energy prices are rarely welcome news for countries that rely on imported oil. But focusing only on oil risks missing how much emerging markets have changed over the past decade.

Oil and the US dollar

The US dollar is another reason emerging markets investors are paying attention. 

According to VanEck, historically, periods of US dollar weakness have often coincided with stronger relative performance from emerging markets. 

If oil prices continue to fall, investors may begin to focus on another important driver of emerging market returns: the US dollar.

While reserve allocations are only one component of global capital flows, expectations of continued diversification suggest some investors are positioning for a world in which the US dollar’s dominance becomes less pronounced. If that were to occur, it could provide an additional structural tailwind for emerging market equities.

Why oil is no longer the whole story

VanEck also highlighted that some of the world’s most important technology, manufacturing and industrial companies are now listed in these markets, creating sources of growth that have little to do with commodity prices.

Taiwan, for instance, is home to several of the world’s leading advanced semiconductor manufacturers. South Korea, classified by some as an emerging market, is a global leader in memory chips and electronics. India continues to benefit from favourable demographics and rising domestic consumption.

Elsewhere, economies such as Thailand may benefit if energy costs continue to fall, while commodity producers such as Brazil continue to offer exposure to long-term demand for resources and industrialisation.

How to gain exposure 

For investors seeking exposure to these markets, there are several ASX ETFs to consider. 

The first is VanEck MSCI Multifactor Emerging Markets Equity ETF (ASX: EMKT). 

This ASX ETF provides a diversified portfolio of large and mid-cap stocks from emerging countries.

It selects companies based on four proven factors:

• Value
• Momentum
• Low Size
• Quality.

Another option to consider is the Betashares MSCI Emerging Markets Complex ETF (ASX: BEMG). 

It provides exposure to more than 1,000 stocks across more than 20 emerging countries in fast-growing regions, including Asia, Latin America, Eastern Europe and Africa.

The post Why emerging markets could be a winner after US-Iran peace deal: Expert appeared first on The Motley Fool Australia.

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• Own GDX, MOAT, or ESPO? VanEck just announced ASX ETF dividends

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.

Building long-term wealth with exchange-traded funds (ETFs) does not need to be difficult.

In fact, I think one of the biggest advantages of ETFs is that they can stop investors from making the process too hard.

Instead of trying to pick every winning company, investors can buy broad exposure to markets, regions, and asset classes that may grow over time.

If I were using Vanguard ETFs to build wealth over the long term, these are three I would consider buying.

Vanguard S&P 500 US Shares Index ETF (ASX: V500)

The first Vanguard ETF I would look at is the V500 ETF. This ETF gives investors exposure to the S&P 500 Index, which means it owns a broad basket of large US-listed companies.

What I like about this fund is that it gives Australian investors access to a market that has produced some of the world’s most dominant businesses.

The S&P 500 Index is often talked about as a technology-heavy index. But it is also a collection of companies that touch many parts of the global economy. These businesses sell advertising, medicines, chips, insurance, banking services, logistics tools, entertainment, hardware, software, food, and household products.

For long-term wealth-building, I think that kind of exposure is powerful.

V500 also keeps the process simple. Investors do not need to decide whether one US giant will beat another over the next decade. They can own the index and let the stronger businesses carry more weight as they grow.

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

The second Vanguard ETF I would consider is the VAE ETF. This fund gives investors exposure to Asian markets outside Japan, including major economies such as China, India, Taiwan, South Korea, Singapore, and others.

I think this is a useful way to add something different to a portfolio. Asia is not one simple story. It includes world-leading semiconductor companies, large banks, online platforms, consumer brands, manufacturers, insurers, and businesses tied to rising household incomes. It also includes countries with very different growth drivers, demographics, currencies, and political risks.

That mix can make the VAE ETF more volatile than a broad global developed-market ETF. But I think it can also make it interesting for long-term investors.

The region has large populations, expanding middle classes, deep manufacturing networks, and an important role in global technology supply chains. If more economic value continues to build across Asia over the coming decades, an ETF like the Vanguard FTSE Asia Ex Japan Shares Index ETF could help investors capture some of that growth without needing to choose individual companies or countries.

Vanguard Diversified High Growth Index ETF (ASX: VDHG)

The third Vanguard ETF I would consider is the VDHG ETF. This fund is different because it is designed as an all-in-one diversified portfolio. It holds a mix of Australian shares, international shares, and other asset classes, with a strong tilt toward growth assets.

I like the simplicity of that. For investors who want one fund that does a lot of the organising for them, the VDHG ETF can be appealing. It spreads money across markets and regions, which can reduce the temptation to constantly adjust the portfolio based on the latest headlines.

That behavioural benefit should not be underestimated. A lot of long-term wealth-building comes down to staying invested. A diversified fund can make that easier because investors are less reliant on one country, one sector, or one narrow theme.

The VDHG ETF will still move with markets. It can fall when global shares fall. But for investors who want a set-and-keep-building approach, I think it can play a useful role.

Foolish takeaway

The best ETF portfolio is not always the one with the most moving parts.

What I like about this group is that it gives investors several ways to build wealth without needing to pick every winning company. There is exposure to large US businesses, Asian markets, and a diversified all-in-one portfolio that can help keep the process simple.

Long-term wealth is rarely created by making one perfect decision. It is usually built by owning sensible assets, adding money regularly, and letting compounding work for longer than feels exciting.

The post 3 Vanguard ETFs to build long-term wealth appeared first on The Motley Fool Australia.

More reading

• Own Vanguard ASX ETFs? Here is your next dividend
• 3 reasons why the VDHG ETF could be a top buy and hold investment
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• Is this the best Vanguard ETF money can buy?
• 3 ASX ETFs I’d buy if I wanted easy global investing

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.

Running a self-managed super fund (SMSF) means thinking carefully about quality and diversification.

The best shares for a SMSF will often be businesses that can grow across many years, generate reliable cash flow, and justify a place in a long-term portfolio.

Here are three ASX shares that could be worth considering.

Breville Group Ltd (ASX: BRG)

Breville could be an ASX share for SMSF investors to consider.

It is a global kitchen appliance business with a strong position in categories such as coffee machines, cooking appliances, food preparation, and other premium household products.

What arguably makes the company attractive for an SMSF is that it has turned everyday kitchen equipment into a brand-led global growth story. A coffee machine is not just a one-off appliance purchase. It can become part of a daily routine, especially as more households invest in better at-home food and drink experiences.

Consumer spending can move in cycles, and premium appliances may face pressure when household budgets tighten. But Breville’s brand, product design, and international runway could make it a strong long-term compounder inside a patient SMSF portfolio.

Macquarie Group Ltd (ASX: MQG)

Another ASX share that could suit an SMSF is Macquarie. It operates across asset management, banking and financial services, commodities and global markets, and investment banking. That gives it exposure to a wide range of profit pools across global finance.

Its strength is adaptability. Macquarie has built a long record of finding opportunities across infrastructure, energy, commodities, markets, private capital, and specialist finance. That can make earnings more variable from year to year, but it also gives the business more ways to create value over a full cycle.

This can be attractive for SMSF investors who are thinking long term.

Wesfarmers Ltd (ASX: WES)

A third ASX share to consider is Wesfarmers. It the retail conglomerate behind a collection of strong businesses, including Bunnings, Kmart, Officeworks, Wesfarmers Chemicals, Energy and Fertilisers, Wesfarmers Industrial and Safety, and Wesfarmers Health.

This structure can be useful for an SMSF because the company is not relying on a single brand or market to generate all its returns. Bunnings gives exposure to home improvement, Kmart offers scale in value retail, Officeworks serves households and businesses, and its industrial divisions add a different earnings stream.

Wesfarmers’ real skill is capital allocation. Management has consistently reshaped its portfolio, invested in stronger businesses, exited assets when needed, and returned capital when appropriate. That discipline is important in a long-term superannuation setting, where compounding depends on decisions made over many years.

The post 3 top ASX shares to buy for an SMSF 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 positions in and has recommended Macquarie Group and Wesfarmers. The Motley Fool Australia has recommended 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.

ASX shares can be a useful way to build passive income, but the answer will depend on two big things.

The first is how much money is invested. The second is the dividend yield the portfolio can reasonably produce.

Time also plays a major role. Someone starting with a lump sum will have a very different income profile to someone still building their portfolio through regular investing. But using a few simple assumptions can still give investors a helpful guide.

A sensible dividend yield target

I think a 5% dividend yield is a useful starting point for this kind of exercise.

A 4% yield is relatively easy to achieve from a diversified ASX income portfolio. There are plenty of blue-chip shares, infrastructure stocks, real estate investment trusts, and dividend-focused exchange-traded funds (ETFs) like Vanguard Australian Shares High Yield ETF (ASX: VHY) that can help investors get close to that level.

A 6% yield is possible, but I think investors need to be more careful. Once the target yield gets too high, the portfolio may start leaning toward companies with weaker growth, higher debt, more cyclical earnings, or dividends that could be reduced.

That is why 5% feels like a reasonable middle ground to me. It is high enough to produce meaningful income, but not so high that investors need to chase every big yield they can find.

What the numbers could look like

At a 5% dividend yield, every $100,000 invested in ASX shares could generate around $5,000 a year in passive income.

This means a $250,000 portfolio could generate around $12,500 a year, while a $500,000 portfolio could generate around $25,000 a year.

And a $1 million ASX share portfolio could generate around $50,000 a year.

That is before considering franking credits, tax, dividend changes, or any capital growth. The actual result would depend on the portfolio, the companies selected, and how dividends change over time.

But the maths shows the basic relationship clearly. The larger the portfolio, the more income it can produce at the same yield.

How the income is paid

One thing investors need to remember is that ASX dividends are usually not paid monthly.

Many companies like Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) pay dividends every six months. Some pay quarterly distributions, particularly certain funds, infrastructure-style investments, or real estate investment trusts (REITs). Others may have more irregular patterns.

That means an investor who wants monthly passive income may need to plan carefully.

One approach would be to build a portfolio with different payment dates across the year. Another would be to let dividends land in an investment account and then pay out a set amount each month.

That second approach requires discipline, but it can make the income feel more consistent. Rather than spending each dividend as soon as it arrives, investors can smooth the payments across the year.

Quality still comes first

I would also be careful about building a portfolio purely around yield.

A strong passive income portfolio should be supported by businesses with cash flows that can last. That could include banks, telcos, infrastructure owners, supermarkets, healthcare companies, packaging businesses, or REITs.

The right mix will depend on the investor. But I think the goal should be income that has a reasonable chance of being sustained and hopefully growing over time.

Inflation can quietly eat away at passive income, so dividend growth still has a role to play.

Foolish takeaway

ASX shares can produce meaningful passive income, but the portfolio has to be large enough and the yield has to be sensible.

A 5% yield is a useful middle-ground assumption. It suggests $100,000 could produce around $5,000 a year, while $1 million could produce around $50,000 a year.

The real work is building the capital base, choosing quality ASX income shares, and managing the cash flow so dividends support the lifestyle an investor wants. Done patiently, ASX shares can become a genuine source of passive income.

The post How much passive income can I make from ASX shares? appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. 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 and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

An ASX ETF retirement portfolio can play a valuable role alongside superannuation.

While most Australians already have significant exposure to local shares through their super funds, I would build a portfolio that leans more heavily towards global markets while still maintaining a meaningful allocation to Australia.

The goal would be simple: diversify across regions, gain exposure to world-class businesses, and create a portfolio capable of compounding wealth over decades.

Here’s how I’d do it.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

This Vanguard ETF would be the foundation of the portfolio. The fund provides exposure to more than 1,000 large and mid-sized companies across developed markets, including the United States, Europe, Japan, Canada, and the United Kingdom.

Its largest holdings include Microsoft Corp (NASDAQ: MSFT), Apple Inc (NASDAQ: AAPL), and NVIDIA Corp (NASDAQ: NVDA).

I would make VGS the largest position in the retirement portfolio with 35%, because it provides broad diversification and exposure to many of the world’s strongest companies and economies.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

BetaShares Nasdaq 100 ETF would add a dedicated growth component to the retirement portfolio and the allocation would be 25%.

The ETF tracks the Nasdaq-100 Index and provides concentrated exposure to many of the world’s leading technology and innovation businesses.

Its biggest holdings include Microsoft, NVIDIA, Apple, and Alphabet Inc (NASDAQ: GOOG).

While there is some overlap with VGS, I believe the world’s leading technology companies remain among the most powerful long-term wealth creators. NDQ increases exposure to that theme and adds extra growth potential to the portfolio.

BetaShares Australia 200 ETF (ASX: A200)

BetaShares Australia 200 ETF would provide home-market exposure.

The ETF tracks Australia’s 200 largest listed companies, with major holdings including Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP).

Most investors already have substantial Australian exposure through superannuation. That’s why I wouldn’t allocate more than 20% of the ETF retirement portfolio to local shares.

However, Australia remains home to many high-quality businesses and some attractive dividend opportunities, making a modest allocation sensible.

VanEck MSCI International Quality ETF (ASX: QUAL)

This VanEck ETF focuses on high-quality global businesses with strong balance sheets, high returns on equity, and consistent earnings growth.

Top holdings typically include companies such as Microsoft, Apple, NVIDIA, and other global leaders.

This ETF adds a quality tilt to the retirement portfolio, and I would invest 10% in the fund. While broad-market funds own thousands of companies, QUAL deliberately targets businesses with stronger financial characteristics, which can help improve portfolio resilience over the long term.

Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE)

The Vanguard FTSE Emerging Markets Shares ETF provides exposure to emerging economies such as China, India, Taiwan, Brazil, and South Korea.

Its major holdings include Taiwan Semiconductor Manufacturing Co Ltd (FRA: TSFA) and other leading businesses benefiting from rising incomes and economic development.

Emerging markets can be more volatile than developed markets, but they also offer access to faster-growing economies and expanding consumer markets.

A modest allocation of 10% adds diversification and gives the retirement portfolio exposure to growth opportunities that many Australian investors may otherwise miss.

The post The retirement ETF portfolio I’d add to super 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 Alphabet, Apple, BetaShares Nasdaq 100 ETF, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Apple, BHP Group, Microsoft, Nvidia, 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.

Superannuation plays a vital role in any retirement plan. However many investors will aim to generate passive income and capital growth using ASX shares and ETFs. 

A typical Australian superannuation fund invests your money in a diversified mix of assets. 

This likely includes Australian and international shares, bonds, property, infrastructure, and cash. This creates diversification rather than focusing solely on high-dividend stocks.

Subsequently, many retirees will target high dividend shares to provide passive income once they stop working. 

While passive income is a great way to supplement your super, the threat of inflation also means retirees can’t ignore capital growth. 

Here are three stocks that can provide a balanced retirement portfolio of income and growth. 

Vanguard Australian Shares High Yield ETF (ASX: VHY)

This ASX ETF has been a trusted passive income vehicle for Australian investors for years. 

It targets companies listed on the Australian Securities Exchange with higher forecast dividends than other ASX-listed companies. 

Security diversification is achieved by restricting the proportion invested in any one industry to 40% of the ETF’s total and to 10% in any one company. Australian Real Estate Investment Trusts (A-REITS) are excluded from the index.

It has historically provided a yield of around 5% and comes with a low management fee of 0.25% p.a. 

As a bonus, it has risen by 25% over the last 5 years, providing growth and consistent passive income. 

Telstra Group Ltd (ASX: TLS)

Turning attention to an individual stock, Australia’s largest telecommunications provider, Telstra, has been a trusted income source for dividend investors for many years. 

Its defensive profile provides protection against sudden market swings, and it is forecast to pay a total dividend of 21 cents in FY26, translating to a forward dividend yield of around 4.1%. 

Similarly, to VHY ETF, Telstra has also risen significantly in the last 5 years. 

Since 2021, it has risen over 40%. 

BetaShares Nasdaq 100 ETF (ASX: NDQ)

While Telstra and the VHY ETF provide passive income, this Betashares fund provides a hedge against inflation. 

It aims to track the performance of the Nasdaq 100 Index (before fees and expenses). The Nasdaq 100 comprises 100 of the largest non-financial companies listed on the Nasdaq market. 

These companies are at the forefront of the new economy, meaning their profile is tilted towards growth and innovation. 

It also provides some diversification away from an Australian-dominated portfolio, particularly towards sectors like technology that are underrepresented here in Australia. 

This means it could provide some protection against ASX downturns. 

Over the last 5 years, it has been a market winner, rising 100%.

The post 3 ASX stocks that should be in every retirement portfolio  appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF and Telstra Group. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Australians reckon they need at least $1 million in savings to afford a comfortable retirement, if they’re on their own.

That’s according to the 2026 Rethinking Retirement report from Colonial First State.

The reality is far different.

How much do you need in savings for retirement?

According to Australia’s benchmark budgeting tool, the ASFA Retirement Standard, a single person who owns their own home needs $630,000 in superannuation savings by age 67, plus a part pension, to fund a comfortable retirement.

This means Aussies are overestimating how much they need by almost 40%.

If you’re coupled up, you need a bit more for a comfortable retirement: about $730,000 in superannuation savings.

How about a modest retirement?

Colonial’s 2025 report showed Aussies think they need just under $400,000 to have a modest retirement, if they’re single.

But ASFA says single homeowners need just $110,000 in superannuation savings, and couple homeowners need just $120,000.

That means we’re overestimating how much savings are required by at least 70%.

It’s worth noting that people who don’t own their homes need higher savings to fund a modest retirement.

ASFA puts the number at $340,000 in savings for singles renting in retirement, and $385,000 for couples.

These numbers assume retirees earn a 6% average gross investment return on their savings each year.

ASFA provides specific and detailed definitions as to what constitutes a comfortable and modest retirement.

What does retirement cost every year?

ASFA says a comfortable lifestyle costs $54,923 per year for singles and $78,566 per year for couples, if they own their homes.

A modest retirement costs $36,434 per year for singles and $52,473 per year for couples, if they own their homes.

For renters, a modest lifestyle costs $51,164 per year for singles and $69,002 per year for couples.

The Standard is updated for inflation every quarter to ensure it provides realistic cost estimates for retirement in today’s dollars.

It’s important to have good savings because the age pension does not cover life’s expenses in full.

Currently, the full age pension, including supplements, is $31,223 per year for singles and $47,070 for couples.

Australians born on or after 1 January 1957 become eligible for the pension at age 67, whether retired or not.

The pension is subject to an assets test and an income test.

If you own or earn too much, you may only qualify for a part-pension, or no pension at all.

Find out how much you can own and earn while still qualifying for the pension.

The mental load of worry

Retirement wealth specialist, Drew Meredith, a principal adviser at Wattle Partners, said Australians pay dearly, in terms of emotional and mental strain, and lifestyle, for overestimating how much they need in savings.

People delay retirement they would otherwise enjoy. Instead of enjoying a hard-earned exit from the workforce, people take on unnecessarily aggressive portfolios to chase returns they simply don’t need.

Others prematurely part with the family home or reluctantly slide back into part-time employment because a flawed projection insisted their savings weren’t big enough. None of those decisions are easily reversible.

Meredith said life after work is more affordable than people realise, adding:

Once the mortgage is gone, the children are independent, the commuting cost has stopped, the work wardrobe has stopped, and the income tax is largely off the table because of pension-phase concessions, the cost of running a household drops sharply.

Kelly Power, CEO of CFS Superannuation, said Aussies are carrying a high “mental load” worrying about their retirement savings.

She commented:

The findings suggest that for many, retirement feels like a challenge, not a milestone.

There are persistent gaps in how confident Australians feel about retirement and how prepared they are.

The report found more than 75% of Australians who received financial advice feel prepared for their retirement.

For those who have not sought advice, less than 50% feel prepared.

The post Worried about retirement savings? You need 40% less than you think: report appeared first on The Motley Fool Australia.

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