Category: Stock Market

If you have $20,000 ready to invest and want to keep things relatively low risk, ASX 200 blue chip shares can be a smart place to start.

These are established businesses with proven track records, strong competitive positions, and the ability to perform across different market conditions. They may not always grab headlines, but they are often the companies that quietly compound wealth over time.

Here are three ASX 200 blue chip shares that could be worth considering.

Cochlear Ltd (ASX: COH)

The first ASX 200 blue chip to consider is Cochlear.

It is a global leader in hearing implant technology and operates in a highly specialised market with strong barriers to entry.

What makes the business particularly attractive is the long-term nature of its customer relationships. Once a patient receives a cochlear implant, they often remain within the ecosystem for upgrades, servicing, and accessories.

This creates a recurring revenue stream that supports consistent growth.

With hearing loss becoming more prevalent globally and access to treatment expanding, Cochlear appears well placed to continue growing over the next decade and beyond.

ResMed Inc (ASX: RMD)

Another ASX 200 blue chip that could be worth considering is ResMed.

It operates in the sleep apnoea and respiratory care market, combining medical devices with digital health solutions.

Its business benefits from recurring revenue, as patients continue to purchase masks and accessories after adopting its devices. There are also strong structural tailwinds, including ageing populations and increasing awareness of sleep health.

While the share price has faced some volatility, the long-term outlook remains very positive and is supported by growing demand and ongoing innovation.

Wesfarmers Ltd (ASX: WES)

A third ASX 200 blue chip that could be a top pick for Aussie investors this month is Wesfarmers.

It is a diversified business with exposure to retail, industrial, and chemical operations, including well-known brands such as Bunnings, Kmart, Officeworks, and Priceline.

One of its key strengths is its ability to adapt and allocate capital effectively. Over time, management has shown a willingness to invest in growth areas while maintaining discipline.

This has helped the company deliver steady returns and maintain a strong market position.

For investors, Wesfarmers offers a blend of resilience and growth, arguably making it a dependable addition to a long-term ASX share portfolio.

The post 3 ASX 200 blue chip shares to buy with $20,000 appeared first on The Motley Fool Australia.

More reading

• How to build a $500,000 ASX share portfolio step by step
• Top brokers name 3 ASX shares to buy next week
• How to build a Warren Buffett-inspired ASX share portfolio
• How to build massive wealth with ASX shares
• Why Dateline Resourcs, Northern Star, Rox Resources, and Wesfarmers shares are dropping today

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

There are various ASX dividend stocks that I’d be comfortable buying during a bear market because of the appealing longer-term dividend yields that can be available during that period.

But, I wouldn’t choose to buy an ASX discretionary retail share when the economy is booming. Economic conditions are likely to change at some point.

There are a few names, particularly listed investment companies (LICs), that I’ve highlighted as opportunities in the past that could be good buys in any market.

But, I also want to highlight a business in the real estate investment trust (REIT) sector which has strong, ongoing rental demand – it’s not cyclical. I’d be willing to invest in it in any market, particularly right now.

Centuria Industrial REIT (ASX: CIP)

This ASX dividend stock is focused on owning a portfolio of industrial properties across Australia. Those properties are in a few different areas including distribution centres (42% of the portfolio), manufacturing and production (24%), transport logistics (14%) and data centres (12%).

The ASX dividend stock has a number of high-quality tenants, with 92% of those being listed, multinational or national tenant customers. Some of its largest tenants by rental income include Telstra Group Ltd (ASX: TLS), Woolworths Group Ltd (ASX: WOW), Arnott’s, AWH, Visy and Fantastic Furniture.

Pleasingly, its income is locked in for a long time – in the FY26 half-year result, it reported a weighted average lease expiry (WALE) of around seven years. That income visibility and security give me confidence that this is a good business to own for the long term.

There are a number of tailwinds that are helping sustain and grow the rental potential and underlying value of the properties.

Those tailwinds include a growing Australian population, increasing e-commerce adoption, fresh food and pharmaceutical demand (for refrigerated space), increasing data centre, a high cost (and limited supply) of building additional industrial properties, and onshoring of supply chains.

The ongoing growth of demand is helping push up its rental earnings. In the HY26 period, it saw 5.1% like-for-like net operating income (NOI) growth, which I’d describe as very compelling growth for a REIT.

Great time to buy in the ASX dividend stock

The ASX dividend stock is expecting to grow its distribution per unit by 3% in FY26 to 16.8 cents, which translates into a distribution yield of 5.7% at the time of writing.

If the interest rate decreases and the REIT unit price increases, I think it would be just as compelling to buy, because a lower yield would still seem attractive to me (with growth potential) compared to what we could get from a bank account.

It’s currently trading at a discount of around 25% to the net tangible assets (NTA) of $3.95 as at 31 December 2025. This looks like a great time to invest, in my view.

The post I’d buy this ASX dividend stock in any market appeared first on The Motley Fool Australia.

More reading

• 3 cheap ASX dividend shares offering 5% to 6% yields (and major upside)
• 2 ASX 300 shares I’m close to buying next!
• Where is opportunity in the ASX real estate sector? Expert
• Experts name 3 ASX shares to sell
• 3 top ASX dividend share buys for passive income in April

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 positions in and has recommended Telstra Group and Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

After coming under heavy selling pressure during the first weeks of the Iran war, Zip Co Ltd (ASX: ZIP) shares have come roaring back.

Although shares in the S&P/ASX 200 Index (ASX: XJO) buy now, pay later (BNPL) stock didn’t bottom out until 20 March, we won’t cherry-pick our dates here.

Instead, we’ll focus on those brave ASX investors, lacking today’s 20/20 hindsight, who bought the BNPL stock on its downward slide on 17 March. Mind you, this would be after shares had tumbled 54% year to date.

So, if you were one of those daring investors, and if you’d bought $10,000 worth of Zip shares a month ago, just how much would you have today?

What a $10,000 investment in Zip shares a month ago is worth today

On 17 March, you could have picked up Zip shares at an intraday low of $1.50 each.

Meaning you could have bought 6,666 shares in the BNPL company for $10,000.

Five trading days later, on 23 March, you would have watched shares changing hands for as little as $1.375  each.

Fortunately, in our scenario, you didn’t cut and run but held fast in hopes of a turnaround.

And you wouldn’t have been disappointed.

On Friday, Zip closed the day trading for $2.33 a share. Meaning the 6,666 shares you bought for $10,000 a month ago are now worth an impressive $15,531.78.

Here’s what’s been helping to boost the ASX 200 stock.

ASX 200 BNPL stock smashes short sellers

Zip shares enjoyed tailwinds on several fronts this past month, much to the chagrin of the raft of short sellers betting against the stock. Indeed, on Monday, Zip shares were the 10th most shorted on the ASX, with a short interest of 11.2%.

But the stock defied short sellers, boosted in part by renewed hopes of a possible peace deal in Iran. An end to the conflict would ease energy prices and inflationary pressures, which in turn would reduce the chances of further central bank interest rate hikes. And BNPL stocks like Zip have proven to be very sensitive to interest rate moves.

Zip shares also enjoyed a big lift on Friday, closing the day up 13.66%.

Those outsized gains followed the release of Zip’s third-quarter (Q3 FY 2025) results.

Investors were overheating their buy buttons after Zip reported total quarterly transaction volume (TTV) of $4.0 billion, up 22.4% year on year.

Zip also reported record quarterly earnings before tax, depreciation and amortisation (EBTDA) of $65.1 million. That’s up 41.5% from the prior corresponding quarter.

With earnings ramping up, management upgraded Zip’s full-year FY 2026 cash EBTDA guidance to “no less than” $260 million.

The post $10,000 invested in Zip shares one month ago is now worth… appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 stocks leaping higher in this week’s slumping market
• Why Eden Innovation, Elsight, Paladin Energy, and Zip shares are racing higher today
• Why Paladin Energy, Alcoa and Zip shares are making headlines on Friday
• Why are Zip shares rocketing 24% today?
• Zip Co posts record cash EBTDA and upgrades FY26 guidance

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

Have you ever dreamed of building a $500,000 ASX share portfolio? If you have, I can safely say you are not alone.

The good news is that it isn’t as hard to achieve this goal as you might think. In fact, all you really need is a combination of time, patience, and capital, and you could get there.

Here is a step-by-step way to approach it.

Step 1: Build a core portfolio

At this level, the foundation matters more than ever.

A large portion of the portfolio should be in reliable, high-quality ASX shares or broad exchange traded funds (ETFs) that can deliver consistent returns over time. These are the holdings that do the heavy lifting.

This might mean shares like Goodman Group (ASX: GMG) or ResMed Inc. (ASX: RMD), or ETFs like the iShares S&P 500 ETF (ASX: IVV).

Think of this as the engine room. It is not about chasing the highest returns. It is about creating stability and steady compounding.

Step 2: Add growth to drive progress

While the core provides stability, growth assets are what push the portfolio higher.

This is where companies with scalable models and strong tailwinds come in. Over time, these positions can outperform and meaningfully increase the overall value of the portfolio. ASX shares like WiseTech Global Ltd (ASX: WTC) or Xero Ltd (ASX: XRO) could be worth considering.

The key is balance. Too much growth can increase volatility, but too little can slow progress.

Step 3: Invest consistently

One of the biggest differences between successful investors and everyone else is consistency.

Regular contributions, whether monthly or quarterly, keep the portfolio growing regardless of market conditions. This also helps smooth out entry prices and reduces the pressure of trying to time the market.

Even as the portfolio grows, continuing to add capital can have a significant impact.

Based on an average 10% annual return (not guaranteed) and investments of $500 a month, it would take just under 17 years to reach $500,000.

Step 4: Let compounding take over

At some point, the portfolio starts to work harder than your contributions.

Returns begin generating their own returns, and growth accelerates. This is where patience pays off.

Trying to interfere too much during this phase can do more harm than good. Staying invested and allowing compounding to continue is often the best approach.

Foolish takeaway

Building a $500,000 ASX portfolio does not happen overnight.

It is the result of consistent investing, smart allocation, and patience over many years. But once you reach that level, the journey becomes very different.

Because from that point on, your money is doing much more of the work.

The post How to build a $500,000 ASX share portfolio step by step appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• ASX 200 tech shares rocket 13% as long-awaited sector rebound accelerates
• Which ASX 200 tech stock has Bell Potter just downgraded?
• How to build a Warren Buffett-inspired ASX share portfolio
• The tech rally is back: here are 5 ASX shares leading the charge

Motley Fool contributor James Mickleboro has positions in Goodman Group, ResMed, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, ResMed, WiseTech Global, Xero, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended ResMed, WiseTech Global, and Xero. The Motley Fool Australia has recommended Goodman Group 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.

Finding investments you can buy and hold is about identifying trends that are likely to matter not just next year, but five or ten years from now.

The good news is that ASX exchange traded funds (ETFs) can make this easier by giving you access to entire themes rather than relying on a single company to get it right.

Here are three ETFs that approach long-term investing from very different angles.

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ETF worth considering is the BetaShares Global Cybersecurity ETF.

You may have noticed that cyber threats are becoming more frequent, more sophisticated, and more costly. That creates a situation where spending on security is not optional. It is essential.

The companies in this ETF are not just beneficiaries of a trend. They are part of the infrastructure that keeps the digital world running.

Key holdings include CrowdStrike Holdings (NASDAQ: CRWD), Palo Alto Networks (NASDAQ: PANW), and Fortinet (NASDAQ: FTNT).

This makes the BetaShares Global Cybersecurity ETF less about hype and more about necessity, which can be a powerful foundation for long-term investing.

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

Another ETF that looks well-placed for long-term growth is the BetaShares Asia Technology Tigers ETF.

This fund is not just a technology ETF. It is a demographic and economic story wrapped in a portfolio.

It provides exposure to companies operating in some of the most densely populated and rapidly digitising regions in the world. As more people come online, adopt digital payments, and consume digital services, the companies in this ETF stand to benefit.

Its holdings include Tencent Holdings (SEHK: 700), Meituan (SEHK: 3690), and Taiwan Semiconductor Manufacturing Company (NYSE: TSM).

What sets this fund apart is that it captures growth that is being driven by adoption, not just innovation. Analysts at BetaShares recently recommended the fund.

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

A third ETF that could be a top long-term pick is the BetaShares Global Robotics and Artificial Intelligence ETF.

This fund focuses on companies that are applying robotics and AI across industries.

It includes businesses involved in automation, precision manufacturing, and advanced systems that are already being used in the real world.

Key holdings include Intuitive Surgical (NASDAQ: ISRG), Keyence, and ABB Ltd (SWX: ABBN).

This makes it less about future possibilities and more about ongoing transformation. Factories, hospitals, and supply chains are already being reshaped by these technologies.

It was also recently recommended by analysts at BetaShares.

The post Looking for ASX ETFs to buy and hold? Here are 3 top picks appeared first on The Motley Fool Australia.

More reading

• ASX ETFs to target if you expect struggling sectors to rebound
• 5 ASX ETFs that could supercharge your portfolio
• 3 fantastic ASX ETFs to buy this month
• Expert names 1 ASX ETF to buy, 1 to hold, and 1 to sell
• 3 ASX ETFs for investors in their 30s

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 Abb, BetaShares Global Cybersecurity ETF, CrowdStrike, Fortinet, Intuitive Surgical, Taiwan Semiconductor Manufacturing, and Tencent. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Palo Alto Networks and has recommended the following options: long January 2028 $520 calls on Intuitive Surgical and short January 2028 $530 calls on Intuitive Surgical. The Motley Fool Australia has recommended CrowdStrike. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX 200 tech shares crushed it last week, rising 12.96% while the benchmark S&P/ASX 200 Index (ASX: XJO) dipped 0.15%.

Technology was the strongest of the 11 ASX 200 market sectors following a commanding lead from Wall Street.

The NASDAQ Composite Index (NASDAQ: .IXIC) has been on a tear in April and hit a new record high last week.

As of Friday’s market close (Australian time), the NASDAQ had recorded 12 consecutive days of gains — its best run since 2009.

ASX 200 tech shares have followed suit, but not in a straight line. The sector has lifted 18.47% since the rebound began on 31 March.

It appears investors may have overcome their fears about artificial intelligence (AI).

Investors have fretted over large AI spending and the potential for AI tools like Claude to wipe out software-as-a-service (SaaS) providers.

These fears drove a near halving in the value of the S&P/ASX 200 Information Technology Index (ASX: XIJ) in just seven months.

You read that right — the tech index experienced an extraordinary 48% sell-off between 29 August and 30 March.

No other sector recorded significant gains last week amid the ongoing war in Iran and a major fire at one of Australia’s two oil refineries.

Only five ASX 200 sectors finished the week in the green.

Let’s recap.

ASX 200 tech shares led the market last week

The ASX 200’s largest tech company, WiseTech Global Ltd (ASX: WTC), skyrocketed 22.72% to finish the week at $46.18 per share.

The Xero Ltd (ASX: XRO) share price leapt 14.72% to $81.98, while TechnologyOne Ltd (ASX: TNE) jumped 11.34% to $30.83.

NextDC Limited (ASX: NXT) shares rose 10.14% to $14.12 and Life360 Inc (ASX: 360) increased 9.6% to $21.35.

The Megaport Ltd (ASX: MP1) share price screamed 26.53% to $8.49.

Hansen Technologies Ltd (ASX: HSN) shares soared 9.37% to $5.02.

ASX 200 hotel booking platform provider, Siteminder Ltd (ASX: SDR), ripped 13.27% to $3.33 per share.

Nuix Ltd (ASX: NXL) shares stormed 10.96% higher to $1.26 apiece, while Appen Ltd (ASX: APX) rose 12.77% to $1.59.

The Weebit Nano Ltd (ASX: WBT) share price lifted 7.41% to $4.06.

Objective Corporation Ltd (ASX: OCL) shares lifted 6.97% to $11.82.

The Dicker Data Ltd (ASX: DDR) share price ascended 4.19% to $8.95.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sector	Change last week
Information Technology (ASX: XIJ)	12.96%
A-REIT (ASX: XPJ)	2.85%
Materials (ASX: XMJ)	1.71%
Communication (ASX: XTJ)	1.64%
Healthcare (ASX: XHJ)	0.27%
Utilities (ASX: XUJ)	(0.03%)
Energy (ASX: XEJ)	(0.63%)
Consumer Staples (ASX: XSJ)	(1.45%)
Industrials (ASX: XNJ)	(1.54%)
Consumer Discretionary (ASX: XDJ)	(1.7%)
Financials (ASX: XFJ)	(2.12%)

The post ASX 200 tech shares rocket 13% as long-awaited sector rebound accelerates appeared first on The Motley Fool Australia.

More reading

• Which ASX 200 tech stock has Bell Potter just downgraded?
• The tech rally is back: here are 5 ASX shares leading the charge
• What assets can I own in retirement and still qualify for the Age Pension?
• Why I think these ASX tech stocks are strong buys
• Are these the best ASX growth shares to buy and hold for 10 years?

Motley Fool contributor Bronwyn Allen has positions in Appen. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Appen, Life360, Megaport, Objective, SiteMinder, Technology One, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Dicker Data, Life360, Objective, SiteMinder, WiseTech Global, and Xero. The Motley Fool Australia has recommended Nuix and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It was another busy week for Australia’s top brokers. This has led to the release of a number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Netwealth Group Ltd (ASX: NWL)

According to a note out of Bell Potter, its analysts have retained their buy rating and $30.00 price target on this investment platform provider’s shares. Bell Potter notes that Netwealth released its quarterly update this week and delivered funds under administration (FUA) that fell a touch short of expectations. However, this FUA miss was due to a $3.7 billion negative market movement. The good news is that with markets rebounding in April, Bell Potter believes that most of this miss has now been reversed. Outside this, the broker highlights that Netwealth shares have de-rated to trade on 28x forward EBITDA. This compares to 33x through-the-cycle. Bell Potter believes there is scope for a re-rating in the future, which could make now a good time to buy. The Netwealth share price ended the week at $25.42.

Qantas Airways Ltd (ASX: QAN)

A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating on this airline operator’s shares with a slightly reduced price target of $11.00. This follows the release of a market update from Qantas which revealed higher fuel costs compared to previous expectations. However, Macquarie was pleased to see that Qantas’ yields have improved, which has underpinned international and domestic revenue growth ahead of estimates. In addition, it thinks Qantas is well-placed to adapt to challenges from the war in the Middle East through its accelerated fleet retirement. The Qantas share price was fetching $9.08 at Friday’s close.

ResMed Inc. (ASX: RMD)

Analysts at Ord Minnett have retained their buy rating on this sleep disorder treatment company’s shares with a trimmed price target of $41.40. According to the note, the broker is forecasting ResMed to deliver double-digit earnings and revenue growth in FY 2026. The good news is that it then expects this trend to continue through to at least FY 2028. Ord Minnett believes this will leave ResMed with a significant cash balance, which could lead to further capital management initiatives. Overall, it feels this makes the company’s shares a top option for investors after recent weakness. The ResMed share price ended the week at $31.52.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• The pros and cons of buying Qantas shares this month
• If I invest $10,000 in BHP shares, how much passive income will I receive in 2027?
• How to build a Warren Buffett-inspired ASX share portfolio
• How to build massive wealth with ASX shares
• Brokers name 3 ASX shares to buy right now

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

The ASX passive income stock Shaver Shop Group Ltd (ASX: SSG) may not be one of the most popular options for dividends. But, in some ways, it’s one of the leading options to consider.

Shaver Shop describes itself as an Australian and New Zealand specialty retailer of male and female grooming products. It aspires to be the market leader in ‘all things related to hair removal’. It sells items like electric shavers, clippers, trimmers, wet shave items, oral care, hair care, massage, air treatment and beauty categories.

At the end of the FY26 half-year period, it had 126 Shaver Shop stores across Australia and New Zealand, while also having online marketplaces. It sells a wide range of brands, with some exclusive products with suppliers.

Now that you know what it does, let’s take a look at why it’s so compelling.

Excellent ASX passive income stock credentials

The business has one of the highest dividend yields on the ASX.

Its last two declared half-year dividends come to 10.3 cents per share. At the time of writing, this represents a grossed-up dividend yield of 10.7%, including franking credits. That’s huge! It also looks like a ‘real’ yield to me.

Some businesses have very large dividend yields because the share price has dropped and the market is expecting a decrease of earnings (and the dividend).

Shaver Shop has paid a dividend each year since 2017. It increased its dividend every year in that time aside from FY24 when it maintained the dividend.

I think it’s very likely that the business can continue to maintain its dividend at this level and possibly grow it in the longer-term. In the FY26 half-year result it maintained its interim dividend at 4.8 cents share amid 1.5% growth of net profit to $12.2 million.

Its FY25 dividend payout ratio was 89.6% of net profit, which is fairly high but sustainable because it was under 100%. It kept some of the generated profit to improve the business.

Why I think this is a great time to invest

There are a few reasons why this looks like a great time to invest.

First, at the time of writing, the Shaver Shop share price has dropped 11% since the end of February 2026, which has had a big, positive effect on the dividend yield on offer from the ASX passive income stock.

Second, the business is looking to grow its earnings through store growth, expanding its own brand (Transform-U), unlocking more exclusive products and hopefully benefit from increased scale.

Third, it’s trading on a very low price/earnings (P/E) ratio. According to the forecast on CMC Markets, the business is projected to generate earnings per share (EPS) of 11.6 cents. That means it’s valued at 12x FY26 estimated earnings.

The post With a 10.7% yield, could this be the ASX’s best passive income stock? appeared first on The Motley Fool Australia.

More reading

• I’d buy 11,651 shares of this ASX stock to aim for $100 a month of passive income
• 2 ASX dividend shares with yields above 7%
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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 recommended Shaver Shop Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When I look at long-term investing, I focus on simplicity, scale, and staying invested.

That is why the Vanguard Diversified All Growth Index ETF (ASX: VDAL) stands out to me as a compelling option for a $10,000 investment.

A Vanguard ETF built entirely for growth

This Vanguard ETF is designed with a clear purpose.

It targets a 100% allocation to growth assets, which means the portfolio is fully invested in equities across global markets. This creates direct exposure to the parts of the market that have historically driven long-term returns.

For investors with a long time horizon, that focus can be powerful. It aligns the portfolio with the goal of capital growth and allows compounding to work over time.

Global diversification in one trade

One of the things I like most about the VDAL ETF is how much it covers in a single investment.

The ETF holds a mix of Vanguard funds that span Australian shares, international developed markets, emerging markets, and smaller companies. 

Its largest allocations include the Vanguard Australian Shares Index ETF (ASX: VAS) at around 36% and the Vanguard MSCI Index International Shares ETF (ASX: VGS) at roughly 27%, alongside meaningful exposure to hedged international equities and emerging markets.

That creates a portfolio that reflects the global economy.

For me, that kind of diversification is valuable. It spreads exposure across regions, sectors, and company sizes, which can support more consistent long-term outcomes.

Exposure to different layers of the market

The VDAL ETF is more than just broad market exposure.

It also includes allocations to emerging markets and international small companies, which add different growth drivers to the portfolio. These segments can behave differently to large developed market companies and can contribute to returns in different ways over time.

That layered exposure is what makes the portfolio feel complete.

It is capturing growth across multiple parts of the market rather than relying on a single theme.

A structure that runs itself

Another feature that stands out to me is how this Vanguard ETF is managed.

It maintains a strategic asset allocation across its underlying funds, and Vanguard handles the rebalancing. As markets move, the portfolio is adjusted to stay aligned with its long-term targets.

For me, that is a big advantage. It allows the investment to stay on track without requiring ongoing decisions, which can help keep the focus on the long term.

Low-cost access to a diversified portfolio

Cost plays a role in long-term returns, and Vanguard has built its reputation on keeping fees low.

The VDAL ETF provides access to a diversified, multi-asset portfolio through a single ETF structure and a management fee of 0.27% per annum.

That can make it a simple and cost efficient way to invest across global markets without needing to manage multiple holdings.

Over time, keeping costs low can help more of the returns stay with the investor.

Foolish takeaway

This Vanguard ETF offers a straightforward way to invest in global equity markets with a clear focus on growth.

It combines Australian shares, international equities, emerging markets, and smaller companies into a single portfolio, supported by automatic rebalancing and a low-cost structure.

For a $10,000 investment, I think it provides a clean and effective way to gain broad exposure and stay aligned with long-term growth.

The post Why I’d invest $10,000 in this Vanguard ETF appeared first on The Motley Fool Australia.

More reading

• Why this ASX ETF is one of the best buys for Australians
• 3 ASX shares for a winning retirement portfolio
• Why this ASX dividend share is a retiree’s dream
• The pros and cons of buying Qantas shares this month
• How many shares in this high-dividend toll road stock do you need for a $10,000 income stream?

Motley Fool contributor Grace Alvino has positions in Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX-listed exchange-traded fund (ETF) VanEck MSCI International Quality ETF (ASX: QUAL) is a top-quality investment for investors who are searching for long-term returns.

Plenty of Australians may be lacking exposure to the global share market. That’s a shame because there are a lot of great businesses out there listed beyond the ASX.

We don’t necessarily need to leave the ASX to make investments in those great businesses – ASX ETFs can give us that exposure.

However, we don’t necessarily need to own all (or most) of the international businesses. I’d rather just invest in the best ones.

The QUAL ETF has a very effective investment strategy to do that selective investing, which attracted me to it.

High-quality portfolio

The best reason to like this fund is the high-quality nature of the businesses and how the portfolio is put together.

There are three things businesses must have to be considered for this portfolio.

First, they must have a high return on equity (ROE). In other words, they make a high level of profit for the amount of shareholder money retained within the business. As shareholders, we want to see those businesses making a good level of profit, considering they’re keeping that money rather than paying it as a dividend to investors.

The businesses in the portfolio are generating some of the highest ROEs in the world.

Second, these businesses have a high level of earnings stability. It’s pleasing when the company’s profit doesn’t go backwards. But that also suggests that profit is nearly always rising, which is a great tailwind for long-term share price growth. 

Thirdly, the QUAL ETF businesses must have low financial leverage. A healthy balance sheet is a good thing for the company’s long-term growth plans and for navigating difficult economic periods.

There are more reasons to like this ASX ETF beyond the great businesses, but the fund has delivered an average annual return of 14.5% over the past decade, thanks to the quality of its holdings.

Strong diversification

The fund owns approximately 300 companies from different sectors and countries.

There’s no specific number of businesses that makes a portfolio diversified or not. I’d say 300 holdings provides ample diversification. Even 100 holdings would be more than enough, in my book.

The biggest positions in the portfolio are many of the strongest and most recognisable businesses in the world. These are names like Meta Platforms, Nvidia, Apple, Microsoft, Alphabet, ASML, Eli Lilly, and Visa.

It’s important to note this is not essentially a US tech fund – less than 30% of the ASX ETF is invested in IT shares.

On top of that, the portfolio has a position of at least 0.5% in a number of countries, providing strong geographic diversification. Those places with a noticeable allocation include the US, Switzerland, the UK, Japan, the Netherlands, Germany, Canada, Denmark, Sweden, and France.

This impressive ASX ETF has an annual management fee of 0.4%, which I view as attractive given the quality of the portfolio and the work that has gone into creating the fund’s global portfolio.

The post Why this ASX ETF is one of the best buys for Australians appeared first on The Motley Fool Australia.

More reading

• Stop ‘saving’, start investing! How to target a $1 million ASX share portfolio
• 5 excellent ASX ETFs to buy next week
• 5 ASX ETFs that could supercharge your portfolio
• Which ASX ETFs I’d buy for retirement investing
• How long does it take to become a millionaire with ASX shares?

Motley Fool contributor Tristan Harrison has positions in VanEck Msci International Quality ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ASML, Alphabet, Apple, Meta Platforms, Microsoft, Nvidia, and Visa and is short shares of Apple. The Motley Fool Australia has recommended ASML, Alphabet, Apple, Meta Platforms, Microsoft, Nvidia, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.