Category: Stock Market

Most ASX investors would turn their heads at a stock or exchange-traded fund (ETF) that returned close to 20% over more than nine years.

Investing in ASX shares has always generated inflation-beating, wealth-building returns for long-term investors. But those that invest in ASX index funds are used to an average return of something like 8.5% per annum over the past few decades. Those are get-rich-slow kinds of returns, not get-rich-quick.

But at 17.8% per annum, those lines begin to blur.

Yes, that’s the return that the BetaShares Global Cybersecurity ETF (ASX: HACK) has generated for its investors since this ASX ETF’s inception in August of 2016 (as of 28 November). Yep, HACK units have gone from the ~$5 per unit level they floated at back then to the $14.84 the fund commanded on 28 November. Adding in the divided distributions that HACK had paid out along the way, and we get to that magic 17.8% figure.

More recent years have been even more lucrative for owners of the Betashares Global Cybersecurity ETF. HACK units have returned an average of 22.84% per annum over the three years to 28 November.

As the name implies, this ASX ETF invests in a global portfolio of the leading companies in the cybersecurity space. Most of its holdings (about 79%) are US stocks, but countries like India, Israel, France and Canada are also represented. Some of its major holdings include Broadcom, Cisco Systems, Palo Alto Networks and Fortinet.

The risks and rewards of this ASX ETF

Past performance is never a guarantee of future success. But let’s talk about one reason investors might wish to buy this ETF, and one reason they might wish to avoid it.

First, the good. Cybersecurity is obviously a growth industry. Every year, more and more of our personal lives, business, government interactions and commerce move to the internet. This is a trend that is unlikely to abate anytime soon. Individuals, governments, and businesses are thus arguably going to be willing to spend more and more money on protecting their customers’ and clients’ personal information, not to mention their own reputations, from threats going forward.

We know how much a company’s reputation can be damaged by a cybersecurity breach. Just ask Optus.

These trends should benefit the companies in the Betasahres Global Cybersecurity ETF immensely if so. And that bodes well for this ETF’s continuing prosperity.

But what of the downsides? Well, this ETF represents one very narrow and concentrated corner of the global economy, with no real diversification.

If some kind of crisis or black swan event engulfs one or more of HACK’s major holdings, it could result in a permanent loss of capital for investors. Unlike broad-market index funds, there are no companies from other corners of the economy to dilute this risk and provide the strength of diversification.

Of course, it’s impossible to know what that risk might be. But we do know that only investing in one corner of the economy comes with inherent risk. That’s why, if I bought this ETF, I would keep it as a small slice of a diversified stock portfolio.

The post Meet the ASX ETF that has returned 17.8% for 9 years appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF, Cisco Systems, and Fortinet. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom and Palo Alto Networks. 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.

Commonwealth Bank of Australia (ASX: CBA) shares are a popular option for income investors, but with a trailing dividend yield of just 3.1%, they may not be the best.

Especially when most analysts believe that the big four bank’s shares are overvalued and destined to fall from current levels.

But don’t worry, because there are plenty of quality alternatives for investors to choose from with bigger dividend yields and potential for plenty of upside.

Here’s what analysts are recommending to income investors:

Harvey Norman Holdings (ASX: HVN)

The first ASX dividend share that could be worth considering is Harvey Norman.

It is of course one of Australia’s largest retailers with a growing network of superstores across Australia and the world. It also owns one of the largest retail property portfolios, which provides both stability and an additional layer of asset backing for shareholders.

Bell Potter is bullish on the retailer and believes it is positioned to pay fully franked dividends of 30.9 cents per share in FY 2026 and then 35.3 cents per share in FY 2027. Based on its current share price of $7.06, this would mean dividend yields of 4.4% and 5%, respectively.

The broker has a buy rating and $8.30 price target on the company’s shares.

Sonic Healthcare Ltd (ASX: SHL)

Another ASX dividend share that Bell Potter rates highly is Sonic Healthcare.

It is a medical diagnostics company with laboratories and collection centres across Australia, Europe, and the United States.

After a tough period following the end of COVID testing, Bell Potter thinks the company is ready for a return to consistent growth.

It is expecting this to support partially franked dividends of 109 cents per share in FY 2026 and then 111 cents per share in FY 2027. Based on its current share price of $22.98, this equates to dividend yields of 4.75% and 4.8%, respectively.

Bell Potter has a buy rating and $33.30 price target on its shares.

Transurban Group (ASX: TCL)

A third ASX dividend share that could be a good alternative to CBA shares is Transurban.

It is a toll road giant that operates a network of important roads across Australia and North America. This includes the newly opened West Gate Tunnel in Melbourne, the Eastern Distributor in Sydney, and AirportlinkM7 in Brisbane.

The team at Citi believes the company’s portfolio is positioned to pay dividends per share of 69.5 cents in FY 2026 and then 73.7 cents in FY 2027. Based on its current share price of $14.42, this equates to dividend yields of 4.8% and 5.1%, respectively.

Citi has a buy rating and $16.10 price target on its shares.

The post These shares have bigger dividend yields (and more upside) than CBA shares appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. 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 Transurban Group. The Motley Fool Australia has positions in and has recommended Harvey Norman and Transurban Group. The Motley Fool Australia has recommended Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Owning Suncorp Group Ltd (ASX: SUN) shares usually comes with a decent dividend yield. But, the more important question may be whether shareholders will see dividend raises or cuts in the coming years.

Following the divestment of Suncorp Bank to ANZ Group Holdings Ltd (ASX: ANZ), Suncorp is now focused on being one of the largest insurers in Australia.

Insurance is not exactly known for being a consistent industry, so investors may need to be aware that dividends can bounce around. Let’s see what analysts think could happen with the payments in the next few years.

FY26

We’re currently in the 2026 financial year, and the broker UBS expects Suncorp’s FY26 net profit and dividend per share to fall significantly due to catastrophe costs that were higher than expected.

UBS expects Suncorp to overrun its FY26 catastrophe budget by around $580 million, despite previously adding additional conservatism to its FY26 catastrophe budget.

But, on a positive note, UBS suggest that recent weather events could “extend the positive home/motor pricing cycle”.

Despite cutting its FY26 forecast earnings per share (EPS) for Suncorp by 31%, UBS still thinks Suncorp is a buy, with a price target of $22. The forecast profit for the year is $934 million.

UBS projects that Suncorp could pay an annual dividend per share of 66 cents. That translates into a potential grossed-up dividend yield of 5.5%, including franking credits.

FY27

The broker thinks the greater potential positive outlook for motor and home premiums can roll over to the 2027 financial year.

In FY27, UBS is expecting Suncorp to hike its annual dividend per share to 92 cents per share.

FY28

The 2028 financial year could see the business decide to hike the dividend again.

UBS has predicted that Suncorp could increase its payout to 97 cents per share in FY28.

FY29

UBS is forecasting that the insurance giant could hike its payout again for owners of Suncorp shares in the 2029 financial year.

In FY29, investors are predicted to see an annual dividend per share of $1.03.

FY30

The final year of this series of projections could see the business deliver investors an annual dividend per share of $1.09 in the 2030 financial year.

That translates into a possible grossed-up dividend yield of 9%, including franking credits.

Suncorp share price valuation

At the time of writing, Suncorp is valued at 20x FY26’s estimated earnings. UBS says Suncorp shares are attractive because it’s at a discount to its historical average, excluding the bank segment.

The post Here’s the dividend forecast out to 2030 for Suncorp shares 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 no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX is packed with small and mid cap stocks that are quietly building world-class businesses behind the scenes.

They may not be household names yet, but they have the growth engines, competitive advantages, and scalability to potentially become major players by the end of the decade.

If you’re looking for ASX stocks with the kind of long-term upside that could transform a portfolio, analysts think these three mid-caps stand out.

DroneShield Ltd (ASX: DRO)

DroneShield is one of the most exciting defensive technology players on the ASX. As drones become increasingly prevalent in both commercial and military settings, demand for counter-drone and electronic warfare systems has surged worldwide.

The company’s cutting-edge technology is now deployed by military customers, government agencies, and critical infrastructure operators across multiple continents. Its product suite has expanded rapidly, margins are improving as scale increases, and recent contract wins highlight growing credibility with tier-1 customers.

Defence spending globally is rising and counter-drone systems are becoming a standard requirement rather than a niche specialty. And with a growing pipeline and a technology advantage over many competitors, DroneShield could easily become a globally recognised name by 2030.

Bell Potter is bullish on its outlook and has a buy rating and $5.30 price target on its shares.

Gentrack Group Ltd (ASX: GTK)

Another mid cap ASX stock that could be a top buy is Gentrack. It provides software used by utilities, airports, and energy retailers to manage billing, customer information, compliance, and operations. These systems are mission-critical and once they are installed, they are deeply embedded and extremely difficult to replace.

In recent years, Gentrack has undergone a major transformation, modernising its product suite and winning significant new contracts across the world. The energy transition, with its rising number of green retailers, decentralised grids, and complex billing requirements, is creating long-term structural demand for the kind of software Gentrack specialises in.

If the company continues to secure global market share and deepen relationships with major utilities, it could grow very strongly over the remainder of the decade.

Bell Potter is also a fan of Gentrack. It has a buy rating and $11.00 price target on its shares.

Temple & Webster Group Ltd (ASX: TPW)

Finally, Temple & Webster has spent the past few years cementing itself as the go-to destination for furniture and homewares online. While its category has traditionally been dominated by large physical retailers, the structural shift toward online shopping shows no sign of slowing and it is capturing that trend better than anyone else.

With online penetration in homewares still far below levels seen in the US and Europe, Temple & Webster could be multiple times larger by 2030 if industry adoption continues.

Macquarie is a fan of the company and recently put an outperform rating and $24.15 price target on its shares.

The post 3 ASX mid-cap rockets that could become future blue chips appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield, Gentrack Group, and Temple & Webster Group. The Motley Fool Australia has positions in and has recommended Gentrack Group. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) stock Generation Development Group Limited (ASX: GDG) is on a tear.

Shares in the diversified financial services business closed up 0.5% on Monday, ending the day trading for $5.65 apiece.

While that’s down more than 25% from the stock’s all-time closing high of $7.60 a share, posted on 15 October, the Generation Development share price remains up 63% in 2025.

And investors who bought the ASX 200 stock five years ago will now be sitting on gains of 813% today.

If you don’t own shares yet, the good news is that, according to the team at Macquarie Group Ltd (ASX: MQG), Generation Development is well-placed to keep outperforming in 2026.

With “leading market positions in investment bonds, managed accounts, and research & ratings, GDG is delivering high growth rates across its three segments”, Macquarie said.

Indeed, at its full year FY 2025 results (for the 12 months to 30 June), the company reported a 191% year-on-year increase in revenue to $141.3 million. And on the bottom line, underlying net profit after tax (NPAT) of $30.2 million was up 170% from FY 2024.

ASX 200 stock tipped to deliver more outsized gains

Macquarie initiated coverage on Generation Development last Friday with an outperform rating.

Commenting on its bullish outlook for the ASX 200 stock, the broker said:

GDG has expanded to become a market leader in the high-growth managed account sector, through its acquisition of Evidentia and increased 100% ownership of Lonsec.

The managed account segment is set to drive the next stage of growth for GDG, with a TAM of $200bn+ and forecast FUM CAGR of 15% from 2024-30E. By consolidating Evidentia and Lonsec managed accounts, GDG has strengthened it market leading position in this highly fragmented market, with unparalleled distribution capability and further synergistic benefits to come as it increases scale.

Macquarie also expects further growth from Generation Development’s Generation Life segment.

According to the broker:

GDG’s Generation Life segment, providing investment bonds and annuities, benefits from tax reform and superannuation changes. We expect legislative tailwinds will drive structural growth in the industry. GenLife is well-positioned to capture a high share of inflows.

And there’s nothing like recurring revenue to give investors some peace of mind.

On that front, Macquarie noted:

GDG has a recurring revenue model across each of its segments with Evidentia and GenLife operating an asset based fee model with predictable recurring revenue streams from mgmt and admin fees. Lonsec research house also has ~96% recurring revenue derived from contracted research and subscription fees.

Concluding that the ASX 200 stock “is well positioned to rapidly grow earnings”, Macquarie said, “We believe there is further upside as GDG continues to invest for growth and execute well.”

The broker has a 12-month price target on Generation Development of $6.70 a share. That represents a potential upside of more than 18% above Monday’s closing price.

The post Up 813% in 5 years, why Macquarie expects this surging ASX 200 stock to keep outperforming in 2026 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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Generation Development Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Some forces are simply too powerful to ignore. Digital transformation, automation, and electrification are reshaping the global economy, regardless of short-term market cycles or economic slowdowns.

For long-term investors, one way to harness these forces is through exchange-traded funds (ETFs) that provide diversified exposure to the stocks driving them.

Here are three ASX ETFs that tap directly into megatrends that look set to run for decades.

Betashares Cloud Computing ETF (ASX: CLDD)

The shift to the cloud is no longer a future trend, it is now core infrastructure for the global economy. Businesses are increasingly moving data storage, software, and computing power away from offline systems and into scalable, cloud-based platforms.

The Betashares Cloud Computing ETF provides exposure to companies enabling this transformation. Its holdings include cloud software and infrastructure leaders such as Microsoft Corp (NASDAQ: MSFT), ServiceNow (NYSE: NOW), and Shopify (NASDAQ: SHOP). These businesses sit at the centre of enterprise digitisation, e-commerce, and workflow automation.

As data usage grows and artificial intelligence (AI) workloads expand, demand for cloud services is likely to keep compounding over time, making the Betashares Cloud Computing ETF a pure-play way to access that structural shift. It was recently recommended by analysts at Betashares.

Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

Automation and artificial intelligence are rapidly becoming essential productivity tools. Labour shortages, rising costs, and the need for efficiency are pushing companies to invest heavily in robotics and AI-driven systems.

The Betashares Global Robotics and Artificial Intelligence ETF targets businesses leading this transformation. Its portfolio includes Nvidia Corp (NASDAQ: NVDA), a key supplier of AI computing hardware, Intuitive Surgical (NASDAQ: ISRG), a pioneer in robotic-assisted surgery, and ABB Ltd (SWX: ABBN), a global leader in industrial automation.

This is a megatrend driven by necessity rather than hype. As economies digitise and industries modernise, robotics and AI adoption is likely to accelerate across healthcare, manufacturing, logistics, and services. It was also recently recommended by the team at Betashares.

Global X Battery Tech & Lithium ETF (ASX: ACDC)

Electrification is transforming transport, energy storage, and power generation, and batteries sit at the heart of that transition. The Global X Battery Tech & Lithium ETF provides exposure to the stocks building the supply chain behind electric vehicles and renewable energy storage.

Its holdings span miners, battery manufacturers, and technology leaders such as Tesla Inc (NASDAQ: TSLA), Albemarle Corp (NYSE: ALB), and Contemporary Amperex Technology Co Ltd (CATL). Together, they reflect the end-to-end ecosystem required to support the global shift away from fossil fuels.

With governments and consumers pushing toward cleaner energy solutions, and battery costs continue to fall, demand for battery technology and lithium materials could grow strongly for many years. This bodes well for the companies held by this fund.

The post 3 ASX ETFs that benefit from unavoidable megatrends 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 Abb, Intuitive Surgical, Microsoft, Nvidia, ServiceNow, Shopify, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Microsoft, Nvidia, ServiceNow, and Shopify. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a disappointing decline. The benchmark index fell 0.7% to 8,635 points.

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

ASX 200 expected to fall again

The Australian share market looks set to fall again on Tuesday following a poor start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 15 points or 0.2% lower. In late trade in the United States, the Dow Jones is down 0.1%, the S&P 500 is 0.1% lower, and the Nasdaq has fallen 0.4%.

Oil prices drop

It could be a poor session for ASX 200 energy shares Karoon Energy Ltd (ASX: KAR) and Santos Ltd (ASX: STO) after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 1% to US$56.86 a barrel and the Brent crude oil price is down 0.85% to US$60.60 a barrel. This was driven by optimism over a Russia-Ukraine peace deal after the latter agreed to scrap its NATO membership application.

Orica AGM

Eyes will be on Orica Ltd (ASX: ORI) shares on Tuesday when the commercial explosives company holds its annual general meeting. There’s a chance the ASX 200 share will provide the market with a trading update ahead of the main event.

Gold price edges higher

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Ramelius Resources Ltd (ASX: RMS) could have a decent session on Tuesday after the gold price edged higher overnight. According to CNBC, the gold futures price is up 0.25% to US$4,339.2 an ounce. Traders were buying gold ahead of the release of US economic data.

Buy EOS shares

Electro Optic Systems Holdings Ltd (ASX: EOS) shares could be great value despite rising almost 400% this year. According to a note out of Bell Potter, this morning, its analysts have reiterated their buy rating on the space and defence company’s shares with an improved price target of $9.00 (from $8.10). It said: “EOS is positioned as a market leader in C-UAS solutions and is leveraged to increasing budget allocations to C-UAS technologies. We see positive news flow over the next 6 months stemming from CUAS and RWS contract awards.”

The post 5 things to watch on the ASX 200 on Tuesday 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 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 Global X Fang+ ETF (ASX: FANG) is an exchange-traded fund (ETF) that aims to provide investors with exposure to companies that are “at the leading edge of next-generation technology that includes household names and newcomers”, according to provider Global X.

Warren Buffett, the legendary investor who has led Berkshire Hathaway to become one of the world’s largest and most diversified businesses, has regularly indicated that he wants to own wonderful companies (at fair prices).

Berkshire Hathaway has invested in names like Coca-Cola, American Express, Bank of America, Apple and Alphabet.

But, Global X Fang+ FANG ETF is a very tech-focused fund, which is something that Berkshire Hathaway hasn’t really leaned into over previous decades.

Let’s take a look at how the Global X Fang+ ETF has been constructed before my concluding thoughts on whether Buffett would invest.

Ten tech titans

The Global X Fang+ ETF has 10 holdings, which are ten of the largest tech businesses listed in the US.

Currently, those positions are: Alphabet, Broadcom, Apple, Crowdstrike, Nvidia, Amazon.com, Microsoft, ServiceNow, Meta Platforms and Netflix.

These businesses are from an array of technology sectors including smartphones, online advertising, AI, cybersecurity, advanced chips, e-commerce, office software, social media, video gaming, online video and cloud computing. These are areas that have changed or are changing our way of life the most.

The goal of the Global X Fang+ ETF is that roughly every position has an allocation of around 10% of the fund. These positions are regularly re-weighted to ensure they provide investors with equal exposure.

The annual management fee of the fund is 0.35%, which I think is fairly reasonable considering the specific exposure it provides.

It has performed very strongly, though past performance is not necessarily a reliable indicator of future performance. The Global X Fang+ ETF has impressively returned an average of 25.5% per year over the last five years. I’m not expecting the next five years to be as strong.

Would Warren Buffett be interested in the Global X Fang+ ETF?

It’s clear to me that this fund gives investors exposure to some of the best businesses in the world.

However, there are a couple of things to keep in mind. Firstly, these businesses are not trading at cheap prices – quite the opposite.

Second, they are generally investing heavily in AI and related expenditure. So far, it’s not very clear at this stage to me how they’re going to collectively generate the revenue and profit to justify this spending, which adds uncertainty.

Finally, when it comes to Warren Buffett, he likes to stay within his ‘circle of competence’, meaning only investing in businesses that he understands so that he can evaluate them properly. I think this point would be a key reason why Buffett himself would choose to invest in specific businesses such as Apple (as he has done) and perhaps Alphabet rather than the ETF as a whole.

For Aussies wanting exposure to the US tech sector, this is a very effective way to do it, though this doesn’t seem like an opportunistic time to invest. Some of the ASX’s leading companies do look a lot cheaper and better value.

The post Would Warren Buffett buy Global X Fang+ ETF (FANG) units? appeared first on The Motley Fool Australia.

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Bank of America is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. 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 Alphabet, Amazon, Apple, Berkshire Hathaway, CrowdStrike, Meta Platforms, Microsoft, Netflix, Nvidia, and ServiceNow. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, CrowdStrike, Meta Platforms, Microsoft, Netflix, Nvidia, and ServiceNow. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Many investors target ASX ETFs to track the returns of global indexes or niche themes. But there are also funds that specifically focus on generating high yields.

A new report from Betashares has shed light on the dwindling returns available from traditional ‘safe havens’ like term deposits and savings accounts. 

However, according to APRA, Australians hold over $1.4 trillion in bank deposits.

Betashares said this continues to grow despite falling interest rates. This suggests many Australians are content with accepting these lower returns. 

Research shows some of the highest interest rates available for savings accounts hover around 4% to 4.5%. 

What’s more important, is these often come with fees, deposit or withdrawal limits, or revert back to lower rates after introductory periods. 

As of December 2025, the best 1-year term deposit rate you can find at any Big Four bank is 4%. 

With those figures in mind, if you are considering parking cash in a savings account or term deposit, these ASX ETFs might offer better returns than what your bank is offering. 

BetaShares S&P 500 Yield Maximiser Fund (ASX: UMAX)

The objective of this ASX ETF is to generate attractive quarterly income and reduce the volatility of portfolio returns by implementing an equity income investment strategy over a portfolio of stocks comprising the S&P 500 Index. 

It uses a covered-call strategy over the 500 largest stocks on Wall Street.

The result is regular income distributions (paid quarterly) that can be significantly higher than the regular dividend yield of the S&P 500 index.

It has a 12 month distribution yield of 5.3%. 

BetaShares Australian Top 20 Equity Yield Maximiser Fund (ASX: YMAX)

This ASX ETF is essentially the Australian focussed version of the previous fund. 

According to Betashares, the fund gives exposure to the top 20 ASX shares and sells covered call options on up to 100% of its shares to generate additional income from the option premiums.

It has a 12 mth distribution yield of 8.2% (paid quarterly). 

In terms of the portfolio, its largest exposure is to:

• Commonwealth Bank of Australia (ASX: CBA) – 16.3%
• BHP Group (ASX: BHP) – 13.6%. 

Vanguard Australian Shares High Yield ETF (ASX: VHY)

This is Vanguard’s ASX ETF focussed on high-dividends. 

According to Vanguard, the objective is to target companies that have higher forecast dividends relative to other ASX-listed companies.

It also has exposure to Australia’s largest blue-chip stocks like CBA and BHP.

The fund has historically provided a dividend yield around 5%.

The post 3 ASX ETFs that can generate more cash than your savings account appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended BetaShares S&P 500 Yield Maximiser Fund. 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.

If you are looking for outsized returns for your investment portfolio, then it could be worth considering Flight Centre Travel Group Ltd (ASX: FLT) shares.

That’s the view of analysts at Macquarie Group Ltd (ASX: MQG), which believe the travel agent could be good value.

What is the broker saying?

Macquarie was pleased with news that Flight Centre has agreed to acquire Iglu for 100 million British pounds (GBP). It is the UK’s leading online cruise agency, which commands ~15% of UK cruise bookings and upwards of 75% of online bookings.

The broker highlights that the deal opens up its addressable market materially. And given its strong balance sheet, it feels that there’s potential for further acquisitions in the industry. Macquarie said:

FLT to acquire Iglu for GBP100m upfront with earn outs up to GBP27m, that equates to 7.25x FY26e EBITDA (inc. synergies). Iglu is forecast to deliver pro forma FY26 TTV ~GBP450m & adj. EBITDA GBP14.8m. Iglu is the market leader in UK cruise, the world’s 3rd largest market. There is a strong cultural fit between the businesses, a critical component of FLT’s acquisitions. Iglu’s current CEO, David Gooch, will continue to lead the business post acquisition.

Significantly expands FLT footprint in cruise with scope for more M&A. After acquiring Iglu, FLT’s cruise related TTV will almost double to surpass $2b during FY26 with a stretch target of $3b TTV in FY28. Iglu adds an online cruise platform to its leisure portfolio that includes Flight Centre, Scott Dunn and Cruise Club UK, which should generate >$1.5b TTV during FY26, reducing leisure’s strong weighting to the Southern Hemisphere.

Macquarie highlights that the cruise market is an attractive one, with strong growth and margins. It said:

Cruise is an attractive market with strong growth & higher margins. Both FLT’s and Iglu’s cruise businesses are seeing sales grow at 15-20% yoy underpinned by a resilient customer base and supply chain that is investing heavily in new ships and partnerships. The margin profile of cruise is also attractive, with Iglu’s 3.1% FY25 EBITDA margin ~40% higher than the 2.2% in FLT’s leisure division.

Time to buy Flight Centre shares

According to the note, the broker has retained its outperform rating with an improved price target of $17.85.

Based on its current share price of $15.04, this implies potential upside of 19% for investors over the next 12 months.

And with the broker expecting a 2.9% dividend yield in FY 2026, this boosts the total potential return to almost 22%.

Commenting on its outperform recommendation, Macquarie said:

FLT is well on track to deliver FY26 guidance, with solid TTV growth across both segments. Corporate is seeing the early benefits from Prod Ops initiatives with strong TTV growth on lower FTEs. Valuation attractive, and we see material upside to the current share price over a 12m view.

The post Why Flight Centre shares could return 22% in just one year 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. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.