Category: Stock Market

ASX real estate stocks have been amongst the worst performing sectors in 2026. 

The S&P/ASX 200 Real Estate Index (ASX: XRE) is down roughly 10% year to date.

This sector in particular has been impacted by higher interest rates, tighter credit conditions, and reduced property valuations. 

These headwinds have all contributed to significant share price declines for many real estate stocks. 

However, it has also created buy-low opportunities for quality companies in the sector. 

One such opportunity is GemLife Communities Group (ASX: GLF). 

Company overview 

GemLife (GLF) is a developer, builder, operator and owner of over 55s lifestyle (land lease) communities (LLC). 

GLF generates recurring rental income from c.2,000 occupied homes and development profits from a further c.8,000 development sites representing 10+ years of pipeline.

Its share price has fallen almost 10% in 2026. 

However the team at Bell Potter is tipping a rebound following the company’s promising AGM operating update.

Tracking to expectations

GemLife Communities said at its AGM that trading is continuing broadly in line with expectations. 

The company reaffirmed its CY26 guidance, expecting earnings per share of 28.5c to 30.0c and around 420 property settlements. This is largely consistent with Bell Potter and market forecasts.

Management said average selling prices are tracking in line with, or slightly above, the second half of CY25 levels, while home build margins are expected to remain around 50%, similar to last year. The company also noted that settlements are continuing to track positively against its full-year target.

Bell Potter made small adjustments to its earnings forecasts for CY26-28 to account for higher expected development and operating costs, as well as updated interest rate assumptions. 

Overall, Bell Potter revised CY26-28 EPS forecasts by between -8% and +1%, reflecting lower margin assumptions due to higher development costs in CY27/28. 

Strong upside remains according to Bell Potter

Based on this guidance, the team at Bell Potter moderately reduced its share price target to $5.65 (previously $6.15). 

From yesterday’s closing price of $4.59, this indicates an upside potential of 23%. 

There is still some water to go under the bridge this year, but GLF’s initial guidance range remains achievable in our view with our focus on the ground work for CY27 given likely lower housing turnover due to budget driven residential housing uncertainty and potential for cost inflation contributed by Brisbane Olympics in 2030.

We continue to monitor sales progress vis-à-vis cashflow and the balance sheet (29.5% as at CY25), but today’s update is encouraging and consistent with our expectations.

The post Why this ASX real estate stock is a compelling buy according to Bell Potter appeared first on The Motley Fool Australia.

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• Bell Potter is tipping a 40% rebound for this ASX consumer discretionary stock

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

BHP Group Ltd (ASX: BHP) shares fell around 1% on Thursday, to close the day at $60.55 a piece.

But the decline barely dented gains made recently. May was a strong month for the ASX mining stock.

Despite the latest decline, the shares are still 32% higher for the year-to-date and over 57% higher than this time 12 months ago. BHP shares are still trading close to an all-time high of $62.06 that the mining giant recorded in mid-May.

Now the question is, have BHP shares now reached a ceiling, or is there more to come in June?

What happened to BHP shares in May?

There have been a few tailwinds over the past month pushing the miner’s shares to record highs.

A boom in commodities prices and a new non-executive director appointment helped drive the miner’s share value upwards.

Investors have rotated back into diversified miners after the price of copper surged close to a multi-year high.

According to Trading Economics, copper futures climbed to an all-time high of over US$6.6 per pound in mid-May.

Stronger investor sentiment for the red metal comes off the back of signs that the US and Iran were moving closer to a deal that could reopen the Strait of Hormuz.

Copper is one of the world’s hottest metals right now, with strong demand for usage in electric vehicles, solar panels and data centres. And the demand isn’t going away anytime soon.

Around the same time, the miner announced the appointment of Mark Vassella as a Non-Executive Director. Vasella is an industry veteran, having served many years as CEO of BlueScope Steel Ltd (ASX: BSL). Investors appeared to be thrilled with the news.

The soaring share price also saw the miner regain the crown as the largest stock on the ASX. BHP now has a market capitalization of around $307 billion, according to Market Index.

Should I sell my shares in June?

I think BHP shares have now peaked. I’m not sure that we’ll see much more out of the mining giant’s shares over the next few months, but given the sustained tailwinds and strong copper demand, there is no sign that the shares will tumble any time soon either.

Analysts seem to agree.

TradingView data shows that 15 out of 18 analysts have a hold rating on BHP shares. The average $57.03 target price implies a potential 6% downside at the time of writing. 

Although forecasts that the shares could increase to a maximum target price of $68.63 imply there is potential for another 14% upside.

The post Should I sell my BHP shares in June? appeared first on The Motley Fool Australia.

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• Buying Rio Tinto, BHP or Fortescue shares? Here’s why CMRG matters
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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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

James Hardie Industries plc (ASX: JHX) shares ended around 3% higher on Thursday afternoon. When the bell rang on the ASX the shares were trading at $30.95 a piece.

The latest jump means the share price has now rebounded around 19% from a six-month dip in mid-May.

The increase has also pushed the shares around just under 1% higher for the year-to-date, but they’re still around 12% lower than this time last year.

Why are James Hardie shares rebounding?

The global fibre cement product manufacturer’s share price dipped to just $26.02 on the 18th of May after the company as dwindling investor sentiment caused many to shy away from the stock.

But shortly after, James Hardie shares turned and started climbing higher. 

It looks like the main trigger was James Hardie’s fourth-quarter FY26 results, which it posted to the ASX ahead of the market open on Wednesday last week.

The result was mixed, with the company revealing a 25% year-on-year increase in net sales driven by additional sales from James Hardie’s AZEK acquisition, a US-based outdoor building products company.

Excluding that acquisition, organic net sales declined by 2% from FY25. And on the bottom line, the company reported a 75% year-on-year decline in NPAT.

Meanwhile, adjusted EBITDA was up 17% year-on-year, coming in above previous guidance figures.

It looks like the results were stronger than many expected, and the stabilised earnings result seems to have reignited investor confidence.

Buyers have been snapping up James Hardie shares in the company ever since the announcement. 

This is a sharp turnaround from earlier this year when concerns about the AZEK acquisition, company demand and weaker earnings guidance saw investors sell up.

Can they keep climbing higher?

Analysts seem to think so.

TradingView data shows that 17 out of 22 analysts have a buy or strong buy rating on the stock. The average $36.54 target price implies a potential 18% upside at the time of writing. And the $43.07 maximum target price suggests the shares could increase another 39% over the next 12 months.

Morgan Stanley is one broker with a buy rating on the James Hardie shares. 

Morgans also has a buy rating and recently commented that it seems the shares as undervalued at current levels. The broker said that market conditions remain subdued, with lower builder activity and affordability pressures. 

Morgans said that FY26 could be “chalked up” as a transformational but financially dilutive year. Meanwhile, FY27 is expected to be about margin and cash-recovery driven by synergies rather than a housing market improvement.

Macquarie said James Hardie was expecting soft, but stabilising conditions in the US which was a negative, and downgraded their price target on the company from $41.10 to $39.60, although this is still well above the average target price on TradingView.

The post James Hardie shares rebound 19%: Is it time to buy? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Australia is 180,000 homes short of its 2029 target. Here’s 3 ASX shares that could benefit
• 4 ASX 200 stocks rocketing higher this week
• Morgans says this top ASX 200 share could rise over 30%
• Macquarie names 3 ASX shares to buy for 40%+ returns

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 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.

Proposed changes to capital gains tax (CGT) mean investors must sharpen their criteria for ASX dividend shares, says one expert.

Drew Meredith, a principal adviser at Wattle Partners, says the proposed 30% minimum CGT “changes the dividend playbook”.

The Federal Government proposes to replace the 50% CGT discount with cost-base indexation and a minimum 30% CGT from 1 July 2027.

In an article on The Golden Times, Meredith says this has narrowed the long-standing tax advantage of capital growth over dividends.

The implication for portfolio construction is significant.

Fully franked dividends, taxed once inside the company at 30 per cent and refundable for the low-rate beneficiary, retain every tax advantage they had.

Capital gains, which previously qualified for the 50 per cent discount, lose meaningful ground.

The relative case for dividend-paying Australian shares has just strengthened.

Meredith said ASX dividend shares must pass five tests to make it into your portfolio.

1. High franking

Meredith points out that fully-franked dividends remain the most tax-efficient income that investors can receive.

He says the new hierarchy for ASX dividend shares is clear:

Fully franked first. Partially franked only if the underlying earnings justify it. Unfranked, almost never.

2. Sustainable payout ratio

Meredith defines a sustainable payout ratio as 60% to 80% of earnings.

Any higher than that, and a profit dip will usually force a dividend cut.

He says:

Commonwealth Bank of Australia (ASX: CBA)’s payout ratio sits around 75 per cent, fully covered.

Magellan Financial Group Ltd (ASX: MFG) paid out more than it earned for two consecutive years.

The difference shows up in the yield, and then in the cut.

3. Real earnings growth, not just dividend growth

Meredith says a growing dividend without growing earnings is a dividend “borrowed forward”.

He advises investors to research an ASX dividend share’s earnings per share (EPS) growth over five years.

If EPS has been flat or falling while the dividend has been growing, the gap will close. It always does.

Wesfarmers Ltd (ASX:WES) EPS has compounded at around 7 per cent a year for a decade. The dividend has followed.

Telstra Group Ltd (ASX: TLS)’s dividend was flat from 2018 to 2024 because EPS was flat. The dividend only started growing again when the earnings did.

4. A moat that survives AI

Businesses across the board are being reshaped by artificial intelligence (AI).

AI is raising productivity within many organisations, while also threatening to make some companies’ services almost redundant.

This is why a company’s moat — or competitive advantage — is now key when assessing an ASX dividend share’s longevity.

Ask one question of each holding. If a competitor with access to a US$60 billion AI infrastructure budget wanted to enter this market tomorrow, how hard would it be?

The harder the answer, the safer the dividend, and the better the chance the share price compounds with the dividend rather than against it.

Meredith says examples of ASX dividend shares with strong moats include infrastructure owners and operators, regulated utilities, miners with low-cost reserves, banks with sticky deposits, and specialised manufacturers.

5. Dividend growth and trap detection

Meredith says a company’s dividend growth trajectory matters much more than its dividend yield today.

This is especially the case for retirees with a 20-year drawdown on their superannuation or personal portfolios ahead of them.

He explains:

A 4 per cent yield growing at 7 per cent a year compounds into 7.9 per cent yield-on-cost inside 10 years.

A 7 per cent yield growing at zero stays at 7 per cent forever and loses ground to inflation.

Meredith says ASX dividend shares that are ‘dividend traps’ tend to have five characteristics: a payout ratio of 100% or more, declining earnings, a regulated revenue cap, a strained balance sheet, and a dividend yield well above its listed peers.

Three of those together and the trap is likely. Four, and it is confirmed.

Magellan Financial, Yancoal Ltd (ASX: YAL), AMP Ltd (ASX: AMP), Star Entertainment Group Ltd (ASX: SGR) and several of the listed property trusts have shown three or more of these signals over the past three years.

The yield was the bait. The cut was the trap.

Foolish Takeaway

Wattle Partners is a specialist in retirement wealth planning.

Meredith points out that pensioners are exempt from the proposed 30% minimum CGT tax rate.

For all other investors, Meredith offers a final word of advice:

The 30 per cent minimum CGT rate does not start until 1 July 2027 and may yet be modified during the legislative process.

The portfolio response is to plan now and shift gradually, not panic.

Check out the current trailing dividend yields for the top 10 ASX 200 shares by market capitalisation.

The post 5 checks for ASX dividend shares amid capital gains tax shake-up: Expert appeared first on The Motley Fool Australia.

More reading

• Where to invest $5,000 in ASX ETFs in June 2026
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: Eagers, Dicker Data and Endeavour Group shares
• Buy, hold, sell: ANZ, Macquarie, Westpac shares
• MOAT vs QUAL: Which quality ASX ETF would I buy today?

Motley Fool contributor Bronwyn Allen has positions in Magellan Financial Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

June is almost here, and investors may be thinking about where to put fresh capital to work.

For those with $5,000 to invest, ASX exchange traded funds (ETFs) can make the job easier. They provide exposure to a basket of companies in a single trade, which can reduce the pressure of picking the perfect stock.

The three ASX ETFs below each offer something different. Here’s why they could be worth considering next month:

VanEck China New Economy ETF (ASX: CNEW)

The first ASX ETF to look at is the VanEck China New Economy ETF.

It focuses on companies tied to China’s new economy rather than the old economy areas that have struggled with debt, construction, and heavy industry headwinds.

This means exposure to businesses involved in areas such as consumption, healthcare, technology, and innovation. These sectors are linked more closely to rising incomes, digital adoption, and the gradual shift in China’s economy toward services and domestic demand.

There are still risks. China can be volatile, and policy changes can have a big impact on investor confidence. But this fund offers a targeted way to gain exposure to a market that could surprise on the upside if sentiment improves.

The VanEck China New Economy ETF was recently recommended by analysts at VanEck.

VanEck Global Defence ETF (ASX: DFND)

Another ASX ETF that could be worth considering in June is the VanEck Global Defence ETF.

Defence has moved from a background issue to a front-page investment theme. Governments across the world are reassessing military readiness, supply chains, cyber resilience, and national security priorities.

This fund gives investors exposure to companies operating across the global defence industry. That can include businesses involved in aerospace, defence systems, electronics, communications, surveillance, and security technologies.

What makes this theme powerful is that defence spending is often driven by government budgets and long-term strategic priorities, rather than short-term consumer demand.

And with geopolitical tensions still elevated, defence could remain a major area of investment for years.

It was also recently recommended by the fund manager.

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

A third ASX ETF to consider is the Betashares Global Robotics and Artificial Intelligence ETF.

This fund gives exposure to the companies building the tools that help machines do more work. That includes robotics, automation, industrial technology, and artificial intelligence.

The opportunity is not limited to futuristic robots. Automation is already changing factories, warehouses, hospitals, logistics networks, and agriculture. Businesses are under pressure to lift productivity, manage labour shortages, and reduce errors.

This fund provides a diversified way to access that shift without relying on one company to get everything right.

It can be volatile, particularly when growth shares fall out of favour. But over the next decade, the demand for smarter machines and automated systems looks likely to keep building.

This ASX ETF was recommended by the team at Betashares recently.

The post Where to invest $5,000 in ASX ETFs in June 2026 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.

Well, it was a brutal day on the Australian markets this Thursday for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares, as investors once again grew pessimistic about the global economy. After starting deep in negative territory this morning, the ASX 200 stayed there all day, and closed down a nasty 1.43%. That leaves the index at 8,592.9 points.

This awful Thursday for the local markets follows a much rosier night over on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) fared decently, rising 0.36%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was a little more tentative, inching up just 0.07%.

But let’s get back to the unhappier market now and take a closer look at what was happening amongst the various ASX sectors today.

Winners and losers

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block and SiteMinder. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Following plenty of market moving news in recent days, the team at Macquarie has updated their outlook for a number of shares.

I’ve selected three which look interesting, and which the broker has differing recommendations for.

Let’s have a look at what they’re saying.

Eagers Automotive Ltd (ASX: APE)

This automotive dealer held its annual general meeting this week, during which Chief Executive Officer Keith Thornton updated the market as to how the year was going so far.

Mr Thornton said while the company remained mindful of external uncertainty, “the underlying performance of the business is strong”.

Mr Thornton said turnover was up about 5% on the same period last year and order intake was at record levels.

The company was actually getting more orders than it could fulfil, he said, with supply constraints the bottleneck.

And Eagers’ used car business had enjoyed a record start to the year, Mr Thornton said, with pre-tax profit up 40%.

He added:

We expect to report an underlying profit before tax result for the first half of 2026 in line with, or slightly ahead of, the first half of 2025 across our Australia and New Zealand operations. In addition, two months of trading contribution from CanadaOne Auto will position us to deliver a record first half at a consolidated level. Looking to the second half, the outlook is positive. We expect an uplift in deliveries, supported by improved supply through our scaled partnership with Toyota following a materially constrained first half. Our substantial order bank and continued demand for new energy vehicles will further underpin second half performance.

Macquarie has an outperform rating on Eagers shares, with a price target of $27.10 compared to $20.69 currently.

Macquarie said CanadaOne remained a “compelling” long-term growth opportunity and Eagers’ order book was strong.

Dicker Data Ltd (ASX: DDR)

Dicker Data also held its annual general meeting this week, with Executive Chair Fiona Brown saying the company had entered CY26 with strong momentum.

Ms Brown said the first four months of the year delivered “a robust result that reflects both healthy underlying demand and the benefits of strategic investments made across the business in FY25”.

She added:

Looking ahead, the Company expects the traditionally robust Australian end-of-financial-year trading period to support continued momentum through the first half. Beyond the first half, second half performance is expected to reflect more typical market conditions, including the impact of changes to vendor pricing strategies in conjunction with elevated inventory replenishment costs. While these factors may result in reduced unit demand, our absolute revenue demand expectation remains strong.

Macquarie has a neutral rating on Dicker Data shares and a price target of $10.35 compared to $9.98 currently.

Endeavour Group Ltd (ASX: EDV)

Endeavour Group shares are trading near their 12-month low at the moment, following the company this week announcing a new strategy and a plan to deliver $300 million in cost savings by 2029.

Part of the new strategy involves Endeavour selling off most of its winery portfolio and refocusing investment in its hotels network.

The company also widened its dividend payout ratio from 70% to 75% of net profit to 50% to 75%.

Macquarie has an underperform rating on Endeavour shares, saying “we still expect market is underestimating reinvestment and earnings downside in key transition year”.

Macquarie has a price target of $2.80 on Endeavour Group shares compared with $2.84 currently.

The post Buy, hold, sell: Eagers, Dicker Data and Endeavour Group shares appeared first on The Motley Fool Australia.

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• Why Eagers Automative, Endeavour, IPH, and Newmont shares are sinking today
• Morgans says these ASX 200 shares are buys
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• Does Bell Potter rate this ASX 200 share as a buy, hold, or sell?

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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Dicker Data and Macquarie Group. The Motley Fool Australia has recommended Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) bank shares are dragging the entire financial sector lower on Thursday.

The S&P/ASX 200 Banks Index (ASX: XBK) is down 2.1% today while the broader benchmark index is down 2%.

The sector’s No. 1 share, Commonwealth Bank of Australia (ASX: CBA), is leading the pack lower, down 2.5% to $160.67.

What’s happening with ASX 200 bank shares?

ASX 200 bank shares are facing many headwinds today.

Morgan Stanley reckons there’s a 5% earnings downgrade ahead, purely due to capital gains tax (CGT) changes in the Federal Budget, which may impact lending growth to property investors.

On top of that, there are macroeconomic challenges afoot, which tend not to bode well for bank stocks.

Consumer confidence is at a five-year low after three interest rates rises.

We’ve just seen the first signs of weakness in the jobs market, with unemployment rising to 4.5% last month.

And we’re a long way off seeing the full long-tail impact of the global oil shock.

Amid this, the banks are trading on stretched valuations and falling trailing dividend yields.

You can compare ASX 200 bank share dividend yields with rising risk-free savings deposit rates beyond 5.5% for further data.

Portfolio manager Suhas Nayak from contrarian fund manager Allan Gray says ASX 200 bank shares look less attractive today.

Nayak told The Australian:

The total returns from here look not as appealing as many other parts of the market.

With all of this in mind, let’s check out some new ratings on three of the five major ASX 200 bank shares.

Macquarie Group Ltd (ASX: MQG)

The Macquarie share price is $234.45, down 0.8% today and up 1.1% over the past month.

Morgan Stanley reiterated its buy rating on Macquarie shares with a 12-month price target of $263 this month. 

This implies 12% upside ahead.

ANZ Group Holdings Ltd (ASX: ANZ)

The ANZ share price is $34.81, down 2.2% today and down 3.4% over the past month.

UBS recently upgraded ANZ shares to a hold rating with a $36.50 price target.

That implies 5% upside from here.

Westpac Banking Corp (ASX: WBC)

The Westpac share price is $35.77, down 1.7% today and down 7.4% over the past month.

Morgan Stanley reiterated its sell rating on Westpac shares last week.

The broker has a target of $34 for Westpac shares, suggesting a 5% fall from here.

The post Buy, hold, sell: ANZ, Macquarie, Westpac shares appeared first on The Motley Fool Australia.

More reading

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

Quality investing can be a great way to build wealth over the long term.

The challenge is working out how to do it.

Investors can try to pick individual companies with strong brands, high returns, pricing power, and durable competitive advantages. But that takes time, confidence, and plenty of research.

That is why I think exchange-traded funds (ETFs) can be useful.

Two quality ASX ETFs that stand out to me are the VanEck Morningstar Wide Moat AUD ETF (ASX: MOAT) and the VanEck MSCI International Quality ETF (ASX: QUAL).

I rate both as buys. But if I had to choose only one today, there is a winner.

The case for the QUAL ETF

The QUAL ETF has been an excellent performer.

Over the past decade, it has delivered an average total return of 14.95% per annum. That is a very strong result.

The fund focuses on international companies with quality characteristics. These include strong returns on equity, stable earnings, and relatively low financial leverage.

I like that approach because it screens for businesses that have already shown financial discipline and resilience.

This can be a good way to invest globally without simply buying every large company in an index. The QUAL ETF is trying to tilt towards companies with stronger balance sheets, more consistent earnings, and higher profitability.

That makes sense to me. The global share market includes plenty of businesses I would not want to own. Some are too cyclical, too indebted, or too inconsistent. A quality screen helps narrow the field.

Overall, I think this is one of the best ASX ETFs for investors seeking exposure to world-class companies.

The case for the MOAT ETF

The VanEck Morningstar Wide Moat AUD ETF has also produced an impressive long-term result.

Over the past decade, it has delivered an average total return of 13.9% per annum. That is slightly behind the QUAL ETF, but still excellent.

The reason I like the MOAT ETF is the philosophy behind it. This ETF invests in US companies that have sustainable competitive advantages and are trading at attractive prices compared with the estimate of fair value.

In simple terms, it is trying to buy good businesses at reasonable prices.

That is very appealing to me because it has a Warren Buffett-style feel. Buffett has long focused on businesses with durable competitive advantages, or moats, and has also cared deeply about the price paid.

This MOAT ETF gives investors a simple way to apply a version of that idea through an ASX ETF.

I like that it is not just chasing the biggest companies or the most popular themes. It is trying to find companies with strong long-term economics while still paying attention to valuation.

Which would I buy?

This is a close call. The VanEck MSCI International Quality ETF has the stronger 10-year performance, and I would be very happy to own it. It is a clean, sensible way to gain exposure to global quality companies.

But if I had to choose one today, I would buy the VanEck Morningstar Wide Moat AUD ETF.

The reason is not that I think the QUAL ETF is weak. I just like the MOAT ETF’s combination of quality and valuation more at this point.

A quality company can still be a poor investment if the price is too high. The VanEck Morningstar Wide Moat AUD ETF’s process gives more weight to that idea by focusing on wide-moat businesses that look attractively priced.

That does not guarantee outperformance. No ETF can do that. But it gives the fund a discipline that I find appealing.

Foolish takeaway

I think both ETFs deserve attention from long-term investors.

The QUAL ETF has done better over the past decade, and its quality screen remains attractive. But investing is not only about looking in the rear-view mirror.

For me, the MOAT ETF edges ahead because it lines up more closely with how I like to think about investing: own strong businesses, but do not forget the price.

The post MOAT vs QUAL: Which quality ASX ETF would I buy today? appeared first on The Motley Fool Australia.

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

Do you have spare capital and are wondering where to invest it?

Well, let’s see if analysts believe the popular ASX shares in this article are worthy of your hard-earned money.

Here’s what they are saying about them:

Goodman Group (ASX: GMG)

Morgans was relatively pleased with Goodman’s third-quarter update.

It appears to believe the update demonstrates the company’s strong position in the rapidly growing data centre (DC) market. The broker said:

GMG’s 3Q26 update reinforced a deliberate strategy: deploy balance-sheet capital ahead of customer commitments to win the race for power-enabled metro data centre (DC) capacity. WIP is set to step from $14.5bn at Mar-26 to a record c.$18bn by Jun-26 (Consensus $17.7bn), with the power bank lifted to 6.4GW.

Operationally the update was mixed, with pre-committed share, production rate and Yield On Cost (YOC) all relatively flat hoh. The structurally important note was management’s view that industry DC capex requirements likely exceed global capital market funding capacity, a backdrop that favours those with secured power, sites and locked-in capital partners.

Morgans has put a buy rating and $36.00 price target on Goodman’s shares.

Megaport Ltd (ASX: MP1)

Ord Minnett has responded positively to news that this network-as-a-service company’s Latitude business has won three major contracts. It said:

Ord Minnett’s forecasts for revenue, operating earnings (EBITDA) and EPS for FY26 are unchanged, although capital expenditure assumptions have increased to reflect infrastructure required for the new contracts. Our EBITDA forecasts for FY27 and FY28, however, have been raised by 29% and 34%, respectively, while our EPS estimates have increased by 29% and 55% for FY27 and FY28, respectively. In turn, this has driven an increase in our Megaport target price to $14.50 from $12.00. ‍

Megaport has indicated a two‑year EBITDA payback on capital expenditure of US$101 million for the new contracts, implying EBITDA of circa US$50 million per annum, or an EBITDA margin of 75% at maturity.

Ord Minnett has an accumulate rating and $14.50 price target on Megaport’s shares.

New Hope Corporation Ltd (ASX: NHC)

This coal miner delivered a strong quarterly update this month, with production and sales comfortably ahead of expectations.

However, it wasn’t quite enough for Bell Potter to give New Hope shares an upgrade. It said:

We retain a Hold recommendation and apply a 10% premium to our sum of the parts valuation with energy security concerns exacerbated by recent geopolitical issues. NHC’s low-cost operations will continue to underpin margins through the coal price cycle, funding capital expenditure commitments and supporting shareholder returns. Beyond ramp-up of New Acland Stage 3, we see a limited organic production growth pipeline and believe NHC may participate in industry consolidation.

Bell Potter has a hold rating and $5.00 price target on its shares.

The post Buy, hold, sell: Goodman, Megaport, and New Hope shares appeared first on The Motley Fool Australia.

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