Category: Stock Market

Investing beyond Australia was once a complicated process. It often meant dealing with foreign exchanges, currencies, and additional costs.

That is no longer the case. Today, ASX exchange traded funds (ETFs) provide simple access to global markets, allowing investors to build international exposure with a single trade.

Here are three ETFs that make global investing straightforward.

VanEck Morningstar International Wide Moat ETF (ASX: GOAT)

The first ASX ETF to consider is the VanEck Morningstar International Wide Moat ETF.

This ETF provides exposure to a diversified portfolio of international companies that analysts believe have sustainable competitive advantages. These are often referred to as wide moats.

It also incorporates a valuation focus, targeting stocks that are considered attractively priced.

Its holdings include names such as Etsy (NASDAQ: ETSY), Edenred, and Symrise AG (ETR: SY1).

Etsy is a useful example of the type of business this ETF targets. It operates a global online marketplace focused on handmade and unique goods. The platform benefits from strong network effects, connecting buyers and sellers in a way that can be difficult for competitors to replicate. This type of positioning is what underpins the idea of a moat and supports long-term earnings potential.

By combining quality and valuation, the VanEck Morningstar International Wide Moat ETF offers a structured way to access international companies with durable advantages.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ASX ETF to consider is the popular Vanguard MSCI Index International Shares ETF.

This ETF provides broad exposure to developed markets around the world, including the United States, Europe, and parts of Asia. It is designed to track a large index, giving investors access to a wide range of global companies.

Among its 1,000+ holdings are companies such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nestle (SWX: NESN).

Apple stands out as one of the largest and most influential companies globally. Its ecosystem of devices and services creates recurring revenue and strong customer retention. This helps illustrate the type of large, established businesses that dominate global indices.

Overall, the Vanguard MSCI Index International Shares ETF offers diversification across industries and geographies, making it a straightforward way to gain broad international exposure.

Vanguard All-World ex-US Shares Index ETF (ASX: VEU)

A third ASX ETF to consider for global investing is the Vanguard All-World ex-US Shares Index ETF.

This fund focuses on global markets outside the United States, providing exposure to both developed and emerging economies.

Its 3,800+ holdings include companies such as Taiwan Semiconductor Manufacturing Company (NYSE: TSM), Samsung Electronics, and ASML Holding (NASDAQ: ASML).

Taiwan Semiconductor Manufacturing Company plays a critical role in the global technology supply chain. It manufactures advanced semiconductors used in everything from smartphones to data centres. Its scale and technical expertise have made it a key supplier to many of the world’s largest technology companies.

The Vanguard All-World ex-US Shares Index ETF allows investors to complement US-heavy exposures by adding broader global diversification, including regions that are often underrepresented in traditional portfolios.

The post Global investing is easy on the ASX with these ETFs appeared first on The Motley Fool Australia.

More reading

• Are these the best ASX ETFs to buy with $1,000 in May?
• Stagflation: How to position an ASX stock portfolio
• 3 excellent Vanguard ETFs for Australian investors in 2026
• Vanguard ETF dividends to be paid today
• Stop ‘saving’, start investing! How to target a $1 million ASX share portfolio

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 ASML, Apple, Microsoft, Taiwan Semiconductor Manufacturing, and Vanguard International Equity Index Funds – Vanguard Ftse All-World ex-US ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nestlé. The Motley Fool Australia has recommended ASML, Apple, Microsoft, VanEck Morningstar International Wide Moat ETF, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Qantas Airways Ltd (ASX: QAN) share price has seen its fair share of volatility of the last several weeks. Airlines are among the most affected businesses amid the events of the Middle East.

Fuel prices have soared in the last few weeks, but the company had hedged its fuel costs, minimising that specific element. But, it is more exposed to the jet refining margin, which jumped from US$20 per barrel to a peak of around of US$120 per barrel.

Time will tell what happens with fuel prices and travel demand in the coming weeks.

We’re going to look at what experts from L1 Group Ltd (ASX: L1G) think of the business in the current climate.

Expert views on the Qantas share price

In recent market commentary, L1 noted that ASX travel shares fell sharply in March because of higher oil prices and fears of a reduction in global travel demand.

But, L1 said that company-specific fundamentals remain attractive, with travel demand outside of the Middle East appearing resilient. The fund manager said that fuel hedging provides some short-term cost protection.

L1 noted that Qantas has responded to the volatility with a recovery through higher ticket prices and select trimming of capacity where appropriate. The fund manager said that travel demand has remained resilience so far.

Putting the Middle East conflict aside for a moment, L1 also noted that the RBA’s review of card payment costs and charges have created a modest overhang for the loyalty business, with key changes being the removal of card surcharges and the reduction in the interchange fee cap on domestic credit cards.

L1 said that investors have focused on softer trends in select international markets.

The investment team at L1 Group concluded their thoughts on the Qantas share price with the following:

            All up, the [Qantas] share price declines appear to reflect nearer-term earnings volatility rather than any deterioration in the group’s underlying competitive position.

Final thoughts on the market

L1 gave some of the following commentary on the stock market, which I think many investors could benefit from:

Moments of heightened uncertainty in markets have historically created some of the best investment opportunities for the Fund. Accordingly, we have been using this period of elevated volatility to identify high quality companies that are now trading far below fair value, even assuming a less favourable macro outlook.

These changes include adding to our positions in gold, construction materials, travel-related stocks and copper, while trimming exposure to some of our energy and infrastructure names which have outperformed.

…While periods of elevated market volatility can be unnerving in the short-term, they provide outstanding medium-term opportunities to invest in great companies at exceptional prices.

Overall, L1 seems to think the Qantas share price can fly again.

The post Is the Qantas share price a buy? Here’s an expert’s view appeared first on The Motley Fool Australia.

More reading

• Why Black Cat, Mirvac, Qantas, and Temple & Webster shares are falling today
• 2 top ASX shares to buy and hold for the next decade
• 3 ASX 200 shares tipped to rise 20% or more
• 2 ASX shares highly recommended to buy: Experts
• Top brokers name 3 ASX shares to buy next week

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.

Starting with your first $500 can feel like a big step.

When I think about how I would approach it today, the goal would be simple: a mix of growth potential, quality, and long-term opportunity without overcomplicating things.

Here are three options I would consider if I were starting from scratch in the current market.

BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)

If I wanted exposure to growth, this is where I would start.

The BetaShares S&P/ASX Australian Technology ETF gives you access to a group of ASX technology shares in one investment. That includes businesses across software, fintech, and digital platforms such as Pro Medicus Ltd (ASX: PME), Xero Ltd (ASX: XRO), and WiseTech Global Ltd (ASX: WTC).

The sector has been under pressure, and the ATEC ETF is down heavily from its highs. That has brought valuations back down across many of its holdings.

For a beginner, I think this is a simple way to gain exposure to the tech sector without having to pick individual winners. If the sector recovers over time, this could prove to be a strong entry point.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is a very different type of investment.

This is a business with a long track record of delivering good returns, supported by operations like Bunnings, Kmart, and Officeworks. These are well-known brands with strong positions in their markets.

What appeals to me here is consistency. Wesfarmers has shown an ability to grow earnings, manage costs, and allocate capital effectively over many years. That kind of reliability can be valuable when you are starting out.

It may not move as quickly as some growth names, but it has the qualities that can support long-term compounding.

ResMed Inc (ASX: RMD)

ResMed brings in a global growth angle.

The company operates in sleep apnoea and respiratory care, with a large and growing market supported by increasing awareness and diagnosis.

Sleep apnoea remains underdiagnosed globally, and ResMed continues to expand its reach through world-class devices, software, and connected care. I think this positions it perfectly for long-term growth.

So, with the share price recently hitting a 52-week low, I think a compelling entry point has been created.

Foolish takeaway

If I were investing my first $500 today, I would be looking to build exposure across different types of opportunities.

The ATEC ETF offers access to a group of tech companies at lower prices than we have seen in some time, Wesfarmers provides quality and consistency, and ResMed adds a global healthcare growth story with a long runway ahead.

You do not need to buy all three at once. Even starting with one ASX share and adding over time could be a great way to begin.

The post Where I’d invest my first $500 into ASX shares appeared first on The Motley Fool Australia.

More reading

• How to invest in ASX shares when the market feels uncertain
• 1 ASX dividend stock down 18% — I’d buy right now
• How to build a $25,000 ASX share portfolio from zero
• Are ASX healthcare shares the next to rally?
• How to start investing in ASX shares with $1,000

Motley Fool contributor Grace Alvino has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed, Wesfarmers, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended ResMed, WiseTech Global, and Xero. The Motley Fool Australia has recommended Pro Medicus and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are on the hunt for ASX dividend shares to buy, then it could be worth considering the two shares in this article.

That’s because brokers currently rate them as buys after they pulled back by approximately 40%.

Here’s what they are recommending to income investors:

Harvey Norman Holdings Ltd (ASX: HVN)

The Harvey Norman share price is down a disappointing 40% from its high. This appears to have been driven by concerns that consumer spending may be pressured by higher interest rates.

While this may be the case, the retail giant’s leadership position means it is better placed than most to deal with tough trading conditions.

In addition, the team at Bell Potter believes the company can still pay some very attractive dividends in the near term.

It is forecasting fully franked dividends of 29.8 cents per share in FY 2026 and then 33.5 cents per share in FY 2027. Based on its current share price of $4.59, this would mean dividend yields of 6.5% and 7.3%, respectively.

Bell Potter also sees plenty of upside for investors over the next 12 months. It has a buy rating and $6.70 price target, which implies potential upside of almost 50% from current levels.

IPH Ltd (ASX: IPH)

Another ASX dividend share that could be a cheap buy right now is IPH.

It is an international intellectual property (IP) services company with a network of member firms working throughout 26 IP jurisdictions, with clients in more than 25 countries. Its brands include AJ Park, Griffith Hack, Pizzeys, ROBIC, Smart & Biggar, and Spruson & Ferguson.

The company notes that these brands work with a diverse client base of Fortune Global 500 companies and other multinationals, public sector research organisations, SMEs, and professional services firms.

The IPH share price is down almost 40% from its 52-week high amid concerns over difficult trading conditions. However, the team at Morgans remains positive and is recommending the company to clients.

The broker is also expecting some very big dividend yields. It is forecasting fully franked dividends of 38 cents per share in FY 2026 and then 39 cents per share in FY 2027. Based on its current share price of $3.51, this would mean dividend yields of 10.8% and 11.1%, respectively.

Morgans has a buy rating and $5.39 price target on its shares, which implies potential upside of over 50% for investors over the next 12 months.

The post Down 40%: These high-yield ASX dividend shares are rated as buys appeared first on The Motley Fool Australia.

More reading

• 5 ASX dividend shares I’d buy for a second income
• Forget Westpac shares, I’d buy these ASX dividend stocks
• 2 ASX dividend shares yielding 11% or even more
• 3 ASX dividend shares to buy for 5.8%, 7%, and 10% yields
• 3 discounted ASX 200 shares to buy before they rebound 

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 positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended IPH Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This ASX wine stock is back in the spotlight and moving fast.

Treasury Wine Estates Ltd (ASX: TWE) shares have jumped 15% over the past five trading days and 26% over the past month. That’s a sharp turnaround for a company, which remains 48% lower than a year ago.

Since hitting a multi-year low of $3.37 on 26 March, the shares have now rebounded around 35%.

So why is everyone buying again?

More agile business

A big part of the answer lies in strategy. The ASX wine stock recently unveiled a new regional operating model aimed at improving efficiency and accountability. The changes are part of its broader “TWE Ascent” transformation program, designed to reset the business after several challenging years.

From 1 October, the company will operate across four divisions: The Americas, Australia and New Zealand, Europe, Greater China, and Emerging Markets. Management says the shift will enable faster decision-making and better alignment with local market conditions.

In simple terms, the business is trying to become more agile and investors appear to like it.

Operational momentum

There’s also improving momentum on the ground. The company’s third-quarter depletions update gave the market something tangible to latch onto. Depletions – an indicator of how quickly products are selling through retail – were particularly strong in China, rising 40% on a seasonally adjusted basis. That momentum reportedly continued through to the end of the quarter.

Other regions also showed encouraging signs. Depletions grew 11% in Australia and New Zealand, 14% across Asia excluding China, and 9.1% quarter on quarter in the US.

That broad-based improvement suggests demand is picking up across multiple markets, not just one standout region.

Financial flexibility

Funding is another piece of the puzzle. The ASX wine stock also announced it has secured new debt commitments of $300 million from global lenders. That gives the company additional financial flexibility as it executes its transformation strategy.

Put it all together, and the recent rally starts to make sense. Investors are responding to a mix of strategic change, improving sales momentum, and stronger financial positioning.

What next for the ASX wine stock?

But it’s not a one-way story. The ASX wine share is still well below where it traded a year ago, and the turnaround is far from complete. Execution risk remains, particularly as the company restructures its operations and navigates shifting global demand.

Analysts are also taking a measured view. Ord Minnett recently trimmed its price target to $4.50 from $5.00. While it upgraded its recommendation, it only moved to a hold rating, suggesting some caution remains despite the recent rally.

Treasury Wine Estates is showing early signs of a turnaround, and investors are starting to take notice. Whether this rally has legs will depend on one thing: delivery.

The post Why is everyone buying this beaten-down ASX wine stock now? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why Ampol, Meteoric Resources, Praemium, and Treasury Wine shares are storming higher
• Why are Treasury Wine shares rocketing 16% today?
• Treasury Wine Estates improves depletions and unveils regional model
• Down 50% in the past year, are these ASX 200 shares too cheap to ignore?

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

CSL Ltd (ASX: CSL) shares are still drifting lower, with the selling pressure showing little sign of easing.

At the time of writing, the CSL share price is down 0.72% to $128.26. Earlier in the session, it slipped to $127.85, marking a new 9-year low.

That extends what has already been a steep decline. CSL shares are now down close to 50% over the past 12 months, a rapid reversal for a stock that was once among the ASX’s most reliable performers.

Not long ago, CSL traded above $300 in January 2020 and spent much of the following years hovering around that level, holding its place as a market leader until around August 2024.

So, what has changed, and can the share price ever get back there?

A growth engine that has slowed

The main shift has been in growth expectations.

CSL built its premium valuation on consistent earnings expansion, supported by its global leadership in plasma therapies and vaccines. That growth profile has since softened.

Recent periods have pointed to slower momentum, with pressure coming through in parts of the vaccines business and margins.

A policy change in the United States has also raised fresh questions around demand for influenza vaccines, adding another layer of uncertainty.

The valuation reset has been severe

For a long time, CSL sat in a category of its own on the ASX.

It commanded a higher valuation because of its track record. Earnings growth was consistent, and its position in global plasma therapies gave investors confidence in long-term demand.

That positioning has shifted.

The share price is now well below prior highs, reflecting a market that is no longer willing to pay the same premium for that growth profile.

What would need to change?

For CSL shares to move back toward $300, the focus turns to earnings.

The business still holds strong positions in plasma-derived therapies, where demand continues to build over time. That part of the portfolio remains a key long-term driver.

But a sustained recovery in the share price would likely require a return to more consistent earnings growth.

That could come from stronger plasma collections, improved margins, and more stable performance across the vaccines segment.

Without that, it becomes harder to justify a return to the valuation levels seen in previous years.

Foolish takeaway

CSL’s decline reflects a reset in how the market views its growth profile.

The business remains well positioned in key healthcare markets, but the goal posts have moved, and the premium valuation it once commanded has been reduced.

A move back to $300 would likely require a clear lift in earnings momentum and a rebuild in investor confidence.

Until then, the focus remains on whether the current weakness can stabilise and form a base.

The post Can the beaten-down CSL share price ever reach $300 again? appeared first on The Motley Fool Australia.

More reading

• CSL’s collapse deepens. Why this ASX giant can’t find a floor
• Prediction: CSL shares could surpass $265 in 2026
• Are ASX healthcare shares the next to rally?
• 5 oversold ASX shares to buy before the end of April
• 2 ASX healthcare shares I think can beat the market

Motley Fool contributor Aaron Teboneras 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 CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a subdued session and dropped into the red. The benchmark index fell 0.25% to 8,955 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to edge higher

The Australian share market looks set to edge slightly higher on Friday following a poor night in the United States. According to the latest SPI futures, the ASX 200 is expected to open 1 point higher this morning. On Wall Street, the Dow Jones was down 0.35%, the S&P 500 fell 0.4% and the Nasdaq dropped 0.9%.

Oil prices rise

It could be a good finish to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 3.85% to US$96.54 a barrel and the Brent crude oil price is up 3.95% to US$105.95 a barrel. This was driven by rising tensions in the Strait of Hormuz.

Fortescue update

Fortescue Ltd (ASX: FMG) shares will be on watch on Friday when the iron ore giant releases its third-quarter update. The market is expecting the miner to report iron ore shipments of approximately 49Mt for the three months. In addition, all eyes will be on its costs after the surge in diesel prices following the war in the Middle East. PLS Group Ltd (ASX: PLS) is also scheduled to release its quarterly update.

Gold price falls

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a poor finish to the week after the gold price pulled back overnight. According to CNBC, the gold futures price is down 0.8% to US$4,714.1 an ounce.  This was driven by inflation and interest rate hike concerns.

Buy Regis Resources shares

Regis Resources Ltd (ASX: RRL) shares could be great value according to analysts at Bell Potter. This morning, in response to the gold miner’s quarterly update, the broker has retained its buy rating on its shares with an improved price target of $9.45. It said: “We remain attracted to RRL’s all-Australian, multi-mine asset portfolio, its demonstrated leverage to the gold price, highly competitive cash generation and its fully unhedged, debt free position. Our NPV-based valuation lifts 1%, to a rounded $9.45/sh. We retain our Buy recommendation with forecast dividends supporting shareholder returns.”

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• What key update is fueling Ampol shares today?
• Buy, hold, sell: NextDC, Hub24, PLS Group shares
• 5 ASX 200 shares with renewed buy ratings this week
• Why Deep Yellow, Develop Global, Resolute Mining, and Santos shares are pushing higher today

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. 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.

In what’s been a tumultuous year on the S&P/ASX 200 Index (ASX: XJO) so far, Commonwealth Bank of Australia (ASX: CBA) shares have been strong performers.

Despite closing down 0.9% at $173.46 apiece on Wednesday, shares in the ASX 200 bank stock have gained 7.7% in 2026. That’s well ahead of the 0.5% year to date gains posted by the benchmark index.

And that’s not including the $2.35 a share fully franked interim dividend CBA paid to eligible stockholders on 30 March.

If we add that back in, then the cumulative gains for CBA shares in 2026 come to 9.1%, with some potential tax benefits from those franking credits.

But after five years of outperformance from Australia’s biggest bank, Catapult Wealth’s Dylan Evans believes now could be an opportune time for investors to take profits (courtesy of The Bull).

Time to sell CBA shares?

“CBA is a high-quality company, with a strong management team and consistent track record,” Evans noted.

“However, in our view, the bank was recently trading on a lofty price-earnings ratio well above its long-term average and that of its competitors,” he added.

Indeed, CBA shares currently trade on a P/E ratio of around 29 times.

As for its chief competitors, Westpac Banking Corp (ASX: WBC) trades on a P/E ratio of around 20 times; ANZ Group Holdings Ltd (ASX: ANZ) trades on a P/E ratio of around 19 times; and National Australia Bank Ltd (ASX: NAB) trades on a P/E ratio of around 19 times.

According to Evans:

This multiple expansion has driven much of CBA’s share price outperformance in the past five years. However, the company’s high multiple is supported by only single digit growth and a recent modest dividend yield below 3% on April 16.

Evans concluded, “We believe the company is overvalued.”

What’s the latest from the ASX 200 bank stock?

CBA reported its half-year results (H1 FY 2026) on 11 February.

And it was another profitable six months for the big four bank, with CBA reporting a cash net profit after tax (NPAT) of $5.45 billion, up 6% year on year.

“Customer outcomes remain central to our approach. We have continued to invest in technology and frontline teams to improve customer experiences,” CommBank CEO Matt Comyn said.

He added:

We continue to watch the competitive intensity and its implications across the financial system. We are well placed to compete effectively and will continue to adjust our settings as appropriate.

CBA shares closed up 6.8% on the day of the results release.

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

More reading

• 3 ASX 200 financial shares to sell: experts
• How does Morgans rate ANZ, BOQ, CBA, NAB, and Westpac shares?
• Stagflation: How to position an ASX stock portfolio
• 5 powerhouse ASX dividend shares to buy and hold until 2050
• 3 ASX 200 shares tipped to tumble 10% (or more) in the next 12 months

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.

When I think about ASX dividend stocks, it’s hard to look past Telstra Group (ASX: TLS) shares.

At the close of the ASX on Thursday afternoon, Telstra shares were 0.19% higher at $5.34 a piece.

Thursday’s uptick continued the impressive gains the telco has made over the past 12-18 months. Earlier this month, Telstra shares reached a 10-year high of $5.44, and they’re still trading just shy of that level.

At the time of writing, Telstra shares are nearly 10% higher year to date and 20% higher than this time last year. That growth has been pretty gradual but consistent too.

For context, at the time of writing, the S&P/ASX 200 Index (ASX: XJO) is 0.75% higher year to date and 11% higher than 12 months ago.

Some investors might be put off by Telstra’s near-high share price, but I still see it as a great opportunity to buy into a high-quality ASX dividend stock at a good price.

Here’s why. 

Telstra is a strong and reliable business

Telstra is a classic defensive stock. 

These days, internet access and mobile phone connectivity are basic daily necessities rather than luxuries.

That means that regardless of how high inflation or the cost of living gets, or how severe global uncertainty becomes, the company’s offerings will remain a high priority for Australians. 

In other words, the ASX dividend stock is likely to perform steadily regardless of the stage of the economic cycle. 

Take Telstra’s  latest first-half FY26 update, for example.

In February, the telco posted that group underlying EBITDA had risen across all major business lines. Its mobile services revenue was 5.6% higher and group cash EBIT was 14% higher, for the six-month period. Underlying operating expenses were also reduced by 2.4%.  

The results show that the company has a predictable cash flow and reliable earnings. This is classic for a strong ASX defensive share. 

And this is great news for investors who want to hedge against potential volatility elsewhere in the index.

It pays a reliable and growing passive income to its shareholders

Because of its defensive, natural, and reliable earnings, Telstra can pay investors a reliable passive income with a good dividend yield.

The company historically pays its shareholders two dividends every year, in March and September. Investors were paid an interim 10.5 cent dividend, 90.48% franked, in March. 

The telco is expected to pay a total dividend of 20 cents for FY26, representing a 5.25% year-on-year increase. At the time of writing that implies a dividend yield around 3.8%

For FY27 the dividend payout is expected to increase again to 21 cents per share. 

Analysts are tipping much more upside to come for the ASX dividend stock

Even after this year’s share price rally, brokers rate Telstra shares as a buy. Market Index data, however, shows that the average $5.30 target price currently implies a 1.5% downside for the ASX dividend stock. 

The post 1 ASX dividend stock up 20% that I’d hold through any market appeared first on The Motley Fool Australia.

More reading

• 3 reasons I’d buy Telstra shares today
• Where I’d invest $5,000 in ASX blue-chip shares
• Stagflation: How to position an ASX stock portfolio
• Why I don’t own Telstra shares (yet)
• How to build a second income from ASX shares without taking big risks

Motley Fool contributor Samantha Menzies 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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are plenty of global exchange-traded funds (ETFs) available to Australian investors.

One of the best for growth investors, in my opinion, is the Vanguard MSCI International Small Companies Index ETF (ASX: VISM).

It focuses on smaller companies across developed economies, which is an area that often flies under the radar.

For growth-focused investors, I think that creates a very interesting opportunity.

Exposure to a different part of the market

Most global portfolios tend to lean heavily toward large-cap companies.

This Vanguard ETF offers something different. It provides exposure to around 3,700 small-cap stocks across developed markets, with a median market capitalisation of about $7.6 billion.

These are businesses that are still growing into their markets.

They are often earlier in their expansion phase, which means there is more room to scale over time. That can translate into stronger earnings growth compared to more established large-cap names.

The fund’s underlying earnings growth rate of around 11.5% highlights that point.

Built-in diversification across industries and regions

Another feature I like is how diversified the ETF is.

The portfolio spans multiple sectors, including industrials, financials, technology, consumer discretionary, and healthcare. Industrials make up about 20.9% of the fund, followed by financials at 14.4% and technology at 11.5%.

Geographically, the United States accounts for about 63% of the portfolio, with meaningful exposure to Japan, Canada, and the United Kingdom as well.

That spread is important, in my opinion. It means you are not relying on a single sector or country to drive returns. Instead, you are tapping into a wide range of industries and economic drivers.

A simple way to access global small-cap growth

Picking individual small-cap ASX stocks globally is not easy.

There are thousands of companies, and information can be harder to access compared to large-cap names.

This Vanguard ETF solves that problem.

It tracks the MSCI World ex-Australia Small Cap Index, giving investors access to a broad group of companies in one investment. Holdings include businesses like Sandisk, XPO, and Woodward, which operate across technology, transport, and aerospace.

That simplicity can be valuable, especially for investors who want exposure to growth without having to research dozens of individual stocks.

Long-term growth potential with a reasonable valuation base

Even though this is a growth-oriented ETF, the valuation profile still looks balanced.

According to Vanguard, the ETF trades on a price-to-earnings ratio of around 17.4 times and a price-to-book ratio of 1.87 times, which are not excessive for a portfolio of growing companies.

Return on equity sits close to 10%, which reflects a solid level of profitability across the portfolio.

There is also a dividend yield of around 1.9%, which adds a small income component alongside growth.

Foolish takeaway

This Vanguard ETF offers exposure to a large and diverse group of smaller companies across global markets.

For growth investors, I think that is where the appeal lies. These businesses are still expanding, and the ETF provides a simple way to access that opportunity.

With broad diversification, steady earnings growth, and a reasonable valuation base, I see it as a compelling option for long-term investors looking beyond the usual large-cap names.

The post Why I think Australian growth investors would love this Vanguard ETF appeared first on The Motley Fool Australia.

More reading

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• Why I’d buy and hold NDQ and these ASX ETFs for 10 years
• Why I think these Vanguard ETFs could be top buys for next month (and forever)
• Own ASX VAS or other Vanguard ETFs? Dividends just announced

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended XPO. 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.