Category: Stock Market

Westpac Banking Corp (ASX: WBC) shares are sinking today.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday trading for $39.91. During the Friday lunch hour, shares are changing hands for $39.56 apiece, down 0.9%.

It’s not just Westpac under pressure today. The ASX 200 is down a sharp 1.9% at this same time following the overnight sell-off in US stock markets.

Despite today’s slide, Westpac shares remain up 16.4% over the past 12 months, smashing the 2.4% one-year gains delivered by the benchmark index.

Atop those capital gains, Westpac also paid out two fully franked dividends over this period, totalling $1.53 a share. The ASX 200 bank stock currently trades on a fully franked trailing dividend yield of 3.9%.

Looking to the months ahead, however, Morgans’ Damien Nguyen sees headwinds building for the bank (courtesy of The Bull).

Time to sell Westpac shares?

“Weaker consumer sentiment in an uncertain policy environment cloud the earnings outlook,” said Nguyen, who has a sell recommendation on Westpac shares.

“Recent economic commentary highlights creeping pessimism among Australian consumers,” he noted. “Uncertainty around interest rate expectations creates a challenging setting for major banks to profitably grow credit.”

According to Nguyen:

Westpac’s long-term projections show acceptable returns. However, in our view, near term momentum appears constrained by operational adjustments, margin pressure and a more cautious economic tone.

Mguyen concluded, “Given limited earnings catalysts on the horizon, we see better opportunities elsewhere.”

What’s been happening with the ASX 200 bank stock?

Westpac reported its full year FY 2025 results (covering the 12 months to 30 September) on 3 November.

Westpac shares closed up 2.8% on the day, with the bank reporting a 3% year-on-year lift in its net interest income to $19.5 billion. The bank’s total loans were up 6% from FY 2024 to $851.9 billion, with customer deposits increasing by 7% to $723 billion.

But with operating expenses also up 9% to $11.9 billion, Westpac’s full year net profit after tax (NPAT) declined by 1% year-on-year to $6.99 billion.

“This has been a solid year at Westpac, and I’m pleased with the result we are delivering today,” Westpac CEO Anthony Miller said following the results release.

Miller added:

With a very strong balance sheet and momentum in our target segments, the opportunity to deliver more for our customers, people and shareholders is exciting…

We’ve managed margins in a competitive environment, and our capital position is strong, providing us with plenty of flexibility as we execute our strategy.

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

More reading

• Westpac vs CBA shares, which is the better buy?
• Instead of Westpac shares, I would buy these ASX blue chips
• Buy, hold, sell: IAG, Mineral Resources, and Westpac shares
• What happened with the big four ASX 200 bank stocks like ANZ and CBA shares in January?
• Analysts name 3 ASX shares to sell

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.

The S&P/ASX 200 Index (ASX: XJO) is having a difficult finish to the week. In afternoon trade, the benchmark index is down 1.9% to 8,721.8 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Electro Optic Systems Holdings Ltd (ASX: EOS)

The EOS share price was down 16% to $6.03 before being placed in a trading halt. This has been driven by a short seller report from Grizzly Research. The short seller has concerns over a Korean contract announcement. It said: “We find the statements that EOS made in the investor call dedicated to the new Korean contract announcements aggressively misleading, and sometimes bordering on outright lies.” It also has doubts over a recent acquisition, adding: “Our research in the acquisition of MARSS by EOS in January 2026 uncovers a multitude of issues. We believe management has lied about past revenues and is misrepresenting the economic opportunity of this acquisition.”

Lotus Resources Ltd (ASX: LOT)

The Lotus Resources share price is down 27% to $2.11. This morning, this uranium producer announced the completion of a $76 million institutional placement. These funds are being raised at $2.15 per new share, which represents a 25% discount to its last close price. The proceeds will be used to support the execution and completion of the acid plant and grid connection projects, which will optimise operating costs.

REA Group Ltd (ASX: REA)

The REA Group share price is down 9% to $165.58. Investors have been selling the property listings company’s shares after its half-year result fell a touch short of expectations. REA posted a 5% increase in revenue to $916 million and a 9% lift in net profit after tax to $341 million. This was driven by a 14% increase in yield, partially offset by a 6% decline in national listings.

Web Travel Group Ltd (ASX: WEB)

The Web Travel share price is down 29% to $2.98. This follows news that the Special Delegation of the Balearic Islands of the Spanish Tax Agency has commenced an audit of Web Travel’s Spanish subsidiary. It notes that the audit is reviewing the direct taxes paid and owed between April 2021 to March 2024, as well as indirect taxes for the period between January 2022 to December 2025. Whether this warrants such a sharp decline, time will tell.

The post Why EOS, Lotus Resources, REA, and Web Travel shares are dropping today appeared first on The Motley Fool Australia.

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UBS has increased its lithium price outlook by 74% as a result of an “extensive review” of global electric vehicle and energy storage demand, it said in a research note released this week.

The analyst team at UBS noted that prices of lithium have been strong, rallying 65% since their last update, but they said there would be continued strong demand from the electric vehicle sector, with EVs close to reaching so-called “triple parity”.

This meant that EVs were becoming competitive across cost, range, and charging time when compared with traditional internal combustion engines.

The UBS team said it expects lithium demand to increase 14% in 2026 and 16% in 2027.

They said further:

We continue to be positive long-term and see demand volumes 2x by 2030 to 3.4Mt (vs 1.7Mt in 2025e). We see the market growing at a 13% CAGR through to 2035.

UBS is expecting EV sales to reaccelerate over the medium term, and it expects global EV penetration of 58% by 2035.

With regard to battery energy storage systems (BESS), UBS said new policy moves in China led it to upgrade its 2035 outlook by 30% to 53%.

Supply not meeting demand

On the supply side, UBS said primary supply grew at 18% in 2025, or closer to 23% once recycling was factored in, which was short of demand growth of 29%.

UBS added:

This resulted in a market deficit and inventory drawdown through the year. For 2026, we assess risk-weighted supply as likely to grow by about 14% (excluding recycling). By country, China, Australia, Argentina and Zimbabwe lead the pack for growth in risk weighted supply from 2025 to 2027.

On the price front, UBS has upgraded its price outlook by 74%.

The broker said:

We are wary of the difficulties of picking a suitable price level when spot prices have historically been more than eight times higher than long-term incentive prices and with converter margins historically poor in providing guard rails around reasonable feedstock pricing. However, from a qualitative perspective, we note that our current price forecasts remain well within historical range and note i) for EVs, automakers have previously been able to adapt with modest impacts on overall demand, and ii) for BESS, that material costs are less significant (vs. module/battery costs).

UBS now has a forecast spodumene price of US$3,131 per tonne, up from its previous price target of US$1,800.

The forecast will be good news for Australian companies such as IGO Ltd (ASX: IGO), Mineral Resources Ltd (ASX: MIN), and Core Lithium Ltd (ASX: CXO), with the latter looking to bring its Finniss operations in the Northern Territory back online if lithium prices are high enough.

The post The lithium price could increase by how much! appeared first on The Motley Fool Australia.

More reading

• Up 288% since April, are Mineral Resources shares still a good buy today?
• 10 most traded ASX shares among 1 million Aussie investors last year
• 3 ASX 200 momentum stocks to buy right now
• Buy, hold, sell: IAG, Mineral Resources, and Westpac shares
• Are ASX lithium shares running out of steam?

Motley Fool contributor Cameron England 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.

For investors who don’t already have meaningful exposure to Australian banks, choosing where to start can feel surprisingly difficult. On paper, the major banks all look similar. They operate in the same market, face the same regulators, and are exposed to the same economic cycles.

But when I look at them through a long-term lens, the differences matter more than the similarities.

If I had to choose between Westpac Banking Corp (ASX: WBC) and Commonwealth Bank of Australia (ASX: CBA) today, I would side with CBA, even though it trades at a premium valuation.

What Westpac offers investors

Westpac has done a lot of hard work over the past few years to stabilise its business. Cost control has improved, balance sheet metrics are sound, and capital levels remain strong. From an income perspective, it continues to offer an attractive dividend yield, which will appeal to investors focused primarily on income.

However, when I step back, Westpac still feels like a turnaround story rather than a compounding one. Revenue growth has been modest, return on equity lags CBA, and the business has struggled to consistently execute at the same level as the sector leader.

That doesn’t make Westpac a bad investment. I just think it makes it less compelling for someone looking to build a core position in the banking sector.

Why CBA stands apart

CBA is in a different category.

It consistently generates the highest returns on equity among the major banks, benefits from a dominant retail banking franchise, and leads the sector in digital capability. Its app engagement, customer data, and technology platform create efficiencies that competitors still struggle to match.

What really stands out to me is execution. CBA has shown time and again that it can grow earnings through the cycle, manage credit risk conservatively, and invest in technology without losing focus on profitability.

Yes, CBA shares trade at a premium multiple. But that premium reflects real advantages, not hype. Investors are paying for predictability, scale, and a business that keeps widening the gap between itself and the rest of the sector.

Valuation versus quality

The biggest objection to buying CBA shares is always the same. It looks expensive.

I understand that concern. But in my experience, avoiding high-quality businesses purely because they trade on higher multiples often leads to missed opportunities. CBA has earned its valuation by delivering superior outcomes for shareholders over long periods, not just in favourable conditions.

For investors with little or no bank exposure, I would rather start with the best operator in the sector than try to squeeze extra yield or short-term value out of a weaker franchise.

Paying up for quality is not always comfortable, but it is often rewarding.

Foolish Takeaway

Westpac is a solid bank and may suit investors chasing yield or betting on a turnaround. But if I’m choosing one bank to anchor a portfolio that currently lacks exposure to the sector, I would pick Commonwealth Bank of Australia.

The valuation is higher, but so is the quality.

For me, owning the best business in the sector and letting it compound over time is a far more comfortable strategy than settling for second best and hoping the gap closes.

The post Westpac vs CBA shares, which is the better buy? appeared first on The Motley Fool Australia.

More reading

• What to expect from the Commonwealth Bank half-year result
• ASX bank shares: One I’d buy and one I’d avoid
• Instead of Westpac shares, I would buy these ASX blue chips
• The best Australian dividend stocks to buy and hold forever
• Don’t buy CBA shares until this happens

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 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 Bitcoin (CRYPTO: BTC) price is under heavy selling pressure again today.

And volatility is spiking to levels that certainly aren’t for the faint-hearted.

Over the past 24 hours, the world’s first and biggest crypto by market valuation has traded at highs of US$73,162 before crashing to a low of US$60,074. That’s a 17.9% price fall within a single day, according to data from CoinMarketCap.

And this for an asset with a market cap of US$1.23 trillion.

In late morning trade on Friday, the Bitcoin price has clawed its way back to US$61,352, leaving it down 13.8% since this time yesterday.

That sees the virtual token down a painful 51.4% since notching a record high of US$126,198 on 7 October.

And investors won’t have found any safety in Ethereum (CRYPTO: ETH) of late either.

The world’s second-largest crypto has tumbled 13% over the past 24 hours, currently trading at US$1,856. That’s up from US$1,749 just a few hours ago.

But the Ethereum price has a long way to go before recouping the 63.6% losses it suffered since hitting its own record highs of US$4,954 on 25 August.

So, where are crypto markets getting hammered?

What’s pressuring the Bitcoin price?

Commenting on the world’s top crypto sinking to one-year plus lows, Emir Ibrahim, analyst at Zerocap, said, “The move lower in Bitcoin overnight reflects a violent leverage unwind rather than a deterioration in fundamentals.”

He added:

Thin order books combined with elevated positioning saw forced liquidations cascade through the market, briefly pushing BTC into the low US$63,000 mark, as the market worked through a multi-billion-dollar reset in leverage.

Ibrahim noted that the selling pressure isn’t just impacting the Bitcoin price.

“This event was not isolated to crypto,” he said.

Indeed, the Nasdaq Composite Index (NASDAQ: .IXIC) closed down 1.6% overnight. The tech-heavy index is now down 4.5% since Monday’s close.

According to Ibrahim:

Risk assets sold off in tandem, with a tech-led drawdown in equities and sharp reversals in commodities pointing to a broader ‘dash for cash’ environment.

In crypto specifically, derivatives markets moved rapidly into short-gamma territory, with volatility bid aggressively and downside skew widening as late long positioning capitulated.

Joel Kruger, markets strategist at LMAX Group, said the tumbling Bitcoin price is pulling down investor sentiment in the broader crypto space.

“Price action across crypto has been undeniably heavy over the past 24 hours, with Bitcoin acting as the primary drag on broader sentiment,” he said (quoted by The Australian Financial Review).

“That said, many of the hallmarks of capitulation are now in place: daily technicals are deeply oversold, the fear and greed index has slipped to extreme lows,” Kruger added.

The post The Bitcoin price has now halved since October. What’s going on? appeared first on The Motley Fool Australia.

More reading

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• Is Bitcoin digital gold? It seems investors prefer the real thing
• How is Ethereum stacking up against the Bitcoin price so far in 2026?
• Bold calls, big risks, and what really matters for Bitcoin price in 2026

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

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a big decline. At the time of writing, the benchmark index is down 1.7% to 8,739 points.

Four ASX shares that have managed to avoid the selloff today are listed below. Here’s why they are rising:

Brambles Ltd (ASX: BXB)

The Brambles share price is up almost 2% to $23.13. This is despite there being no news out of the supply chain solutions company on Friday. However, it is possible that some investors see Brambles as a defensive option and a way to avoid the broad market weakness today. Its shares are now up approximately 18% since this time last year.

HMC Capital Ltd (ASX: HMC)

The HMC Capital share price is up 2% to $4.13. Investors have been buying this investment company’s shares after it announced a new strategic partnership which will see KKR-managed funds invest up to $603 million into HMC’s Energy Transition Platform. Management notes that the investment will introduce KKR as a strategic partner alongside HMC in the platform’s existing 652MW operational assets and its significant 5.7GW BESS and wind development pipeline. HMC Capital’s managing director and CEO, David Di Pilla, said: “We are delighted to be working with an experienced global investor of KKR’s calibre. KKR’s investment validates the quality of the Platform we have built and sets the foundation for HMC to play a major role in Australia’s transition to net zero carbon by 2050. KKR’s capital will enable the Platform to materially grow operating capacity, cash flow and progress the strategically valuable development pipeline.”

ResMed Inc. (ASX: RMD)

The ResMed share price is up 2.5% to $38.42. This follows a decent night of trade for the sleep disorder-focused medical device company’s NYSE-listed shares on Thursday. One leading broker that would be supportive of this buying is Morgans. Earlier this week, it upgraded ResMed’s shares to a buy rating with a $47.73 price target. This implies potential upside of over 20%.

Rio Tinto Ltd (ASX: RIO)

The Rio Tinto share price is up 0.3% to $157.55. Investors have been buying the mining giant’s shares after it abandoned its plans to merge with Glencore (LSE: GLEN).  The miner stated: “Rio Tinto is no longer considering a possible merger or other business combination with Glencore plc, as Rio Tinto has determined that it could not reach an agreement that would deliver value to its shareholders.” In response, Glencore said: “The key terms of the potential offer were Rio Tinto retaining both the Chairman and Chief Executive Officer roles and delivering a proforma ownership of the combined company which, in our view, significantly undervalued Glencore’s underlying relative value contribution to the combined group, even before consideration of a suitable acquisition control premium.”

The post Why Brambles, HMC Capital, ResMed, and Rio Tinto shares are rising today appeared first on The Motley Fool Australia.

More reading

• Rio Tinto shares charge higher after Glencore merger collapses
• Rio Tinto confirms no merger with Glencore after review
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• Here are the top 10 ASX 200 shares today

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

Shares in Capstone Copper Corp (ASX: CSC) were sharply lower on Friday morning despite good news out of its Mantoverde mine in Chile, where a strike has come to an end.

The company said last month that the strike, involving members of Union #2, which started on January 2, had halted some production processes.

At the time, in late January, the company confirmed that striking workers were blocking access to the desalination plant, which had a knock-on effect on other operations.

As the company said at the time:

During the evening of January 18, individuals entered the desalination plant facilities, located 40 kilometres from the Mantoverde mine, while workers were inside performing regular duties. Subsequently, interference with the desalination plant’s electrical system resulted in the interruption of water supply to Mantoverde. Striking union members are preventing access and the restart of facility operations at the desalination plant. At Mantoverde, on-site water reserves continue to be used for essential services. Sulphide operations are temporarily halted while oxide operations are expected to continue until tomorrow, at which point they will be temporarily halted unless water supply is restored.  

New agreement inked

Capstone said on Friday morning that the strike had now come to an end, with a new three-year collective bargaining agreement struck with the union.

The company added:

Following an agreement with Union #2, Mantoverde has now successfully negotiated new three-year collective bargaining agreements with all four unions and will continue its focus on safe and responsible mining which brings great benefits to the workforce and surrounding communities. Capstone’s priority is to safely and efficiently return to full operations at Mantoverde, which operated at approximately 55% of normal production levels during the strike.

Capstone owns 70% of the Mantoverde operations, with Mitsubishi Materials Corporation owning the rest.

The company has said in previous press releases that Union #2 represents about 22% of the total workforce at Mantoverde.

Capstone shares were 4.5% lower at $15.32 on Friday morning, most likely reflecting weakness in the copper price overnight rather than the impact of the end of the strike.

Other major miners were also weaker on Friday, with BHP Group Ltd (ASX: BHP) down 2.6% at $49.03 and South32 Ltd (ASX: S32) down 4% at $4.41.

Rio Tinto Ltd (ASX: RIO) shares were 0.1% lower at $156.91, while junior copper producer Hillgrove Resources Ltd (ASX: HGO) was trading 7.7% lower at 4.8 cents.

Capstone was valued at $15.1 billion at the close of trade on Thursday.

The post Capstone Copper shares in a slump despite good news out of Chile appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 3 ASX 200 stocks smashing the benchmark this week
• ASX copper shares surge as commodity hits record high
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

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

Shareholders in Santana Minerals Ltd (ASX: SMI) are sitting on some solid gains for the past 12 months, but some news announced just this week has given the analyst team at Shaw and Partners confidence that the company’s shares can keep charging higher.

Santana’s flagship asset is the Bendigo-Ophir gold project in the Otago region of New Zealand, for which the company released a prefeasibility study last year.

Key milestone ticked off

The company said in a statement to the ASX this week that it had reached a key milestone in the Fast-Track Approvals Act (FTA) process for the project, which had set a timeline for the government to assess it.

As the company said:

The Panel Convener has used her discretion under the FTA and confirmed a 140 working-day statutory timeframe for determination of the Bendigo-Ophir Gold Project, with a decision due by 29 October 2026. In setting this timeframe, the Convener emphasised a process designed to be efficient, proportionate and outcome-focused, enabling the Expert Panel to regulate its own procedures in a practical manner that supports a fair, well-tested and timely decision and avoid unnecessary procedural formality. The approach allows the participants to use expert conferencing to efficiently resolve issues, and narrow points of contention.

Santana Chief Executive Damian Spring said the company now had a firm timeline “for what we believe will mark the commencement of development for a project of national and regional significance”.

He added:

While the timeframe is longer than we had hoped, we appreciate the additional diligence to support the consenting of this nationally significant project. The appointment of an experienced Panel and confirmation of a clear statutory timetable provides important process certainty.

Shares looking cheap

Shaw and Partners said in a note to clients that it was a welcome development for the project.

They said regarding the project:

Santana is one of a handful of companies globally to boast a +2Moz at +2g/t predominantly open pit resource. The recent land acquisition has materially derisked the project positioning the company in our opinion as ‘shovel ready’. We maintain our positive view on gold with Santana being one of our preferred developer exposures, reiterate a buy recommendation.

Shaw recently raised its price target for the company’s shares from $1.63 to $2.15, representing a 121.6% return if achieved.

The shares have more than doubled over the past 12 months, from lows of 39.7 cents to 97 cents on Friday.

The company was valued at $849.3 million at the close of trade on Thursday.

The post Up more than 100% in a year, this gold stock could double again one broker says appeared first on The Motley Fool Australia.

More reading

• Why DroneShield, Life360, Nova Minerals, and Santana shares are falling today

Motley Fool contributor Cameron England 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.

When I think about passive income investing, I’m not looking for complexity. I want dependable cash flow, broad diversification, and something I can realistically hold through different market conditions without constantly tinkering.

For ASX investors focused on income in 2026, I think exchange-traded funds (ETFs) remain one of the cleanest ways to achieve that. 

In particular, there are two high-yield ASX ETFs that stand out to me as sensible building blocks for a long-term income portfolio.

Betashares S&P Australian Shares High Yield ETF (ASX: HYLD)

Betashares S&P Australian Shares High Yield ETF is one of the more interesting income ETFs on the ASX, in my view, because it goes a step further than simply chasing the highest headline yields.

The fund holds 50 high-yielding Australian shares, but importantly, it applies screens designed to avoid dividend traps. That means it looks to exclude companies paying dividends that appear unsustainable or come with excessive volatility. For income investors, that distinction really matters.

Another feature I like is the monthly income profile. The Betashares S&P Australian Shares High Yield ETF pays monthly distributions, which can be particularly appealing to investors seeking regular cash flow to supplement wages or retirement income. The most recent monthly distribution was 11.91 cents per share. Annualised, that comes to roughly $1.43 per share. Against a share price of around $32.16, that implies a yield in the region of 4.4%.

The underlying portfolio is exactly what you would expect from a high-yield Australian strategy. Major banks, large resource companies, and infrastructure names feature prominently. BHP Group Ltd (ASX: BHP), the big four banks, Wesfarmers Ltd (ASX: WES), Telstra Group Ltd (ASX: TLS), Transurban Group (ASX: TCL), and Woodside Energy Group Ltd (ASX: WDS) all sit near the top of the holdings list. That gives the fund a very familiar, blue-chip income profile.

For investors looking to maximise income while still owning quality Australian businesses, I think the HYLD ETF makes a strong case.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The Vanguard Australian Shares High Yield ETF takes a slightly different approach but still lands in a very similar place for passive-income-focused investors.

The VHY ETF tracks the FTSE Australia High Dividend Yield Index and provides exposure to ASX shares with higher forecast dividends than the broader market. It deliberately caps industry and single-company exposure, which helps prevent the portfolio from becoming overly concentrated in any one area.

One thing I appreciate about the Betashares S&P Australian Shares High Yield ETF is its simplicity. It does not attempt to time dividends or apply complex overlays. Instead, it offers low-cost exposure to a diversified group of high-yield Australian shares, backed by Vanguard’s long-standing index approach.

The ETF currently trades on a trailing yield of around 4.25%. While it doesn’t offer monthly distributions like the HYLD ETF, it still provides a steady income stream that many long-term investors value. Its largest holdings include BHP, Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Macquarie Group Ltd (ASX: MQG), and Rio Tinto Ltd (ASX: RIO), which reflects the reality of where much of Australia’s dividend income comes from.

For investors who prefer a more traditional, low-cost index structure with a clear income tilt, this ETF is a very solid option.

Foolish Takeaway

High-yield passive income doesn’t need to be complicated.

For 2026, I think both Betashares S&P Australian Shares High Yield ETF and Vanguard Australian Shares High Yield ETF offer sensible, diversified ways to generate income from the ASX.

They won’t eliminate volatility, and distributions can move around year to year, but for investors focused on long-term cash flow rather than short-term price moves, they tick a lot of boxes.

The post Here are my 2 favourite ASX ETFs to buy for high-yield passive income in 2026 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, Transurban Group, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group, Transurban Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie Group, Telstra Group, and Transurban Group. The Motley Fool Australia has recommended BHP Group, Vanguard Australian Shares High Yield ETF, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Lotus Resources Ltd (ASX: LOT) shares have returned from their trading halt and crashed deep into the red.

In morning trade, the ASX uranium stock is down by a disappointing 30% to $2.00.

Lotus Resources owns an 85% interest in the Kayelekera Uranium Mine in Malawi, and 100% of the Letlhakane Uranium Project in Botswana.

Why is this ASX uranium stock crashing?

The catalyst for today’s weakness has been news that the uranium producer has successfully completed its bookbuild for a non-underwritten placement to raise $76 million.

These funds are being raised at $2.15 per new share, which represents a 25% discount to its last close price.

Management advised that it received strong demand from both existing shareholders, as well as new overseas and domestic institutional investors.

In addition, broad weakness in the uranium industry has weighed on its shares. Fellow ASX uranium stocks Paladin Energy Ltd (ASX: PDN) and Boss Energy Ltd (ASX: BOE) are both down over 7% at the time of writing.

Why is it raising funds?

The ASX uranium stock revealed that the funds will be used to support the execution and completion of the acid plant and grid connection projects, which will optimise operating costs.

In addition, the cash injection will support the typical ~5-6 month uranium working capital cycle, with potential for additional liquidity available via inventory pre-payment facilities which are under negotiation.

Commenting on the placement, the ASX uranium stock’s managing director, Greg Bittar, said:

We are delighted with the support we have received from existing and new institutional shareholders, which provides us with an enhanced liquidity runway during ramp up to reach steady-state production and expected first shipment in Q2 CY2026.

The funding delivers a simplified, more flexible balance sheet, along with funding certainty as Kayelekera progresses to positive cash flow, and we are positioned to maximise exposure to potential uranium price upside.

The company will now push ahead with its share purchase plan, which is aiming to raise a further $5 million. However, with the offer price currently above its actual share price, demand for the share purchase plan may not be strong.

Unfortunately for shareholders, following today’s sharp decline, the Lotus Resources share price has now given back all its annual gains and more. It is now down by approximately 27% since this time last year.

The post Why is this ASX uranium stock crashing 30%? appeared first on The Motley Fool Australia.

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