Category: Stock Market

Commonwealth Bank of Australia (ASX: CBA) shares are slipping today.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed on Friday trading for $165.02. As we head into the Monday lunch hour, shares are changing hands for $163.09 apiece, down 1.2%.

For some context, the ASX 200 is down 0.2% at this same time.

Taking a half step back, CBA shares have gained 1.3% in 2026 so far, outpacing the 0.2% year to date loss posted by the benchmark index.

Atop that modest share price outperformance, CommBank also paid out a $2.35 fully-franked interim dividend on 30 March.

Adding in the $2.60 final dividend, delivered to stockholders’ bank accounts on 29 September, and CBA stock trades on a fully-franked trailing dividend yield of 3%.

As for the reliability of that passive income, CBA has made two fully-franked dividend payments every year for more than a decade now.

Which brings us back to our headline question.

Are CBA shares a good buy for passive income?

Red Leaf Securities’ John Athanasiou recently analysed the outlook for Australia’s biggest bank stock (courtesy of The Bull).

“CBA remains the highest quality franchise in Australian banking, supported by its dominant deposit base, strong digital ecosystem and industry leading profitability,” he noted.

Athanasiou added, “Earnings remain resilient, but growth is moderating as mortgage competition intensifies and credit expansion normalises.”

At its third-quarter results (Q3 FY 2026), released on 13 May, CBA reported an unaudited cash net profit after tax of around $2.7 billion. That was up 4% from Q2; however, cash profits were down 1% from the first half-year quarterly average.

As for that passive income, Athanasiou said, “Credit quality is stable and dividends remain highly reliable, reinforcing its defensive appeal.”

Connecting the dots, Athanasiou issued a hold recommendation on CBA shares.

He concluded:

However, the key issue is valuation, with the stock trading at a significant premium to domestic and global peers. Much of the quality and stability is already priced in, leaving limited upside without a material macro or earnings surprise to the upside.

How does CommBank’s valuation stack up to rival ASX 200 bank stocks?

The premium commanded by CBA shares has long been an issue for many analysts and fund managers.

CommBank stock currently trades on a price-to-earnings (P/E) ratio of around 26 times.

To put that into some perspective, Westpac Banking Corp (ASX: WBC) shares trade on a P/E ratio of around 18 times; ANZ Group Holdings Ltd (ASX: ANZ) shares trade on a P/E ratio of around 17 times; and National Australia Bank Ltd (ASX: NAB) shares trade on a P/E ratio of around 17 times.

The post Should I buy CBA shares for their ‘reliable’ passive income? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: BHP, PLS Group, CBA shares
• Why did CBA shares sink 5% in May?
• 5 things to watch on the ASX 200 on Monday
• Why the negative gearing changes could impact CBA shares more than anyone realises
• Why ASX mid-cap shares are finally about to have their moment: Expert

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.

If you are looking for some new investment opportunities, then it could be worth checking out the three ASX shares in this article.

That’s because they have just been named as buys by experts, courtesy of The Bull.

Let’s see what they are recommending to investors:

Aristocrat Leisure Ltd (ASX: ALL)

The team at Red Leaf Securities believes this gaming technology company’s shares are a buy this week.

Although the ASX 200 share trades with a premium valuation, it believes this is justified given its strong return on equity and positive earnings growth outlook. It said:

The business is transitioning from a traditional gaming supplier into a global digital entertainment platform, with its social gaming division driving much of the growth momentum. This improves margins, lifts earnings visibility and reduces cycles over time. Land-based gaming remains a stable cash generator, supporting re-investment and shareholder returns.

Management execution has been consistently strong, with disciplined capital allocation and successful integration of acquisitions. The stock trades at a premium valuation, but, in our view, it’s justified by return on equity, offshore growth exposure and a structural earnings upgrade story that continues to play out.

BHP Group Ltd (ASX: BHP)

Another ASX 200 share that gets the thumbs up from Red Leaf Securities is mining giant BHP.

It has named BHP shares as a buy this week due largely to its positive view on the company’s growing exposure to copper. It said:

Iron ore sales continue to drive earnings, but the key long term story is copper, where demand is structurally supported by electrification, grid investment and artificial intelligence related infrastructure. Consequently, it gradually shifts BHP from a traditional cyclical miner towards a more diversified industrial metals compounder.

Cash generation remains strong, supporting consistent dividends and capital management. The balance sheet is conservative, allowing flexibility through the cycle. While iron ore is still exposed to Chinese demand volatility, BHP’s scale and low cost positioning provide downside protection.

Origin Energy Ltd (ASX: ORG)

A third ASX 200 share that experts are positive on this week is energy retailer Origin Energy.

Catapult Wealth has named Origin Energy shares a buy. It likes the company due to its belief that it is well-placed to benefit from electrification and its energy security. It said:

Origin is a key player in Australia’s energy supply chain. Broader energy supply disruptions caused by the conflict in Iran are likely to be a net positive for Origin. The company’s gas will become more appealing to Asian consumers when compared to Middle Eastern competitors.

Electricity sales volumes in the March quarter were up 4 per cent on the prior quarter. Longer term, Origin is positioned to benefit from electrification and its energy security.

The post Experts name BHP and these ASX 200 shares to buy this week appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Mineral Resources, IAG, Origin Energy shares
• Why did ASX 200 retail shares lead the market last week?
• Why ASX mid-cap shares are finally about to have their moment: Expert
• I’d aim for $1 million in retirement buying just 10 ASX 200 shares
• 5 ASX 200 shares downgraded by brokers this week

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

Qantas Airways Ltd (ASX: QAN) shares just flew through a very strong month.

Shares in the S&P/ASX 200 Index (ASX: XJO) airline stock closed out April trading for $8.41. On Friday, the last trading day of May, shares closed the day swapping hands for $9.44 apiece.

That saw the Qantas share price up a very impressive 12.3% in May, soaring ahead of the 0.8% one-month gains posted by the ASX 200.

But with no fresh price-sensitive news out from the Flying Kangaroo over the month, why were investors piling back into the stock?

Let’s find out!

Qantas shares rebound on Middle East peace hopes

The first welcome tailwind for Qantas over the month just past was the ongoing peace negotiations between the United States and Iran.

Hopes for an end to the war in the oil-rich Middle East saw the Brent crude oil price drop from US$114 per barrel on 30 April to trade for US$92 per barrel at the end of May, according to data from Bloomberg. That’s a decline of almost 20%.

As you’re likely aware, the price of oil – or more specifically jet fuel – can have a material impact on the performance of Qantas shares.

How material?

Well, on 26 February – right before the outbreak of the Iran war – Qantas forecast that it would spend some $2.5 billion on jet fuel in the second half of the financial year (H2 FY 2026).

But with oil prices surging amid the closure of the Strait of Hormuz, on 14 April Qantas increased its second-half jet fuel spend expectations to be in the range of $3.1 billion to $3.3 billion. At the higher end of that range, this would see the airline spend $600 million more to fuel its planes than management expected in February.

The rebound potential for Qantas shares from declining oil prices wasn’t lost on Mans Carlsson, co-portfolio manager at Ausbil.

In early May, Carlsson noted:

The market has priced an assumption that oil prices remain elevated, and we believe that investors need to look through the current geopolitical crisis. At present, Qantas is trading at an FY28 price-earnings ratio of approximately seven times, which is extremely low versus the market average.

We think that as we move beyond the oil supply shock, Qantas could be set for a significant re-rate on improving operating conditions.

ASX 200 airline moving in on Air New Zealand’s turf

Investor sentiment for Qantas shares also looks to have taken a positive turn in May after the company revealed expanded operations to and from New Zealand, potentially at the expense of Air New Zealand Ltd (ASX: AIZ).

“What we’ve learned over more than a century of flying is that when conditions are difficult, you back the relationships that matter most,” Qantas CEO Vanessa Hudson said.

Hudson added:

New Zealand s one of those relationships. And we are backing it…

Across Qantas and Jetstar, more than 800,000 seats have been added between Australia and New Zealand over the last 12 months.

The post How Qantas shares soared ahead of the ASX 200 in May appeared first on The Motley Fool Australia.

More reading

• 3 reasons I would buy Qantas shares under $10
• 3 ASX shares that could benefit most if the US-Iran peace deal holds
• Virgin Australia, Qantas shares jump 8% higher this week. Are the ASX airline stocks a buy, sell or hold?
• If you invested $1,000 in Qantas shares a decade ago, here’s what they would be worth now
• Why Charter Hall, Coronado Global, Meeka Metals, and Qantas shares are racing higher today

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.

ASX dividend shares can be useful building blocks for investors wanting to boost their passive income.

And while chasing the very highest dividend yields on the market can be risky, there are still quality names offering income that sits comfortably above the market average.

The two ASX dividend shares below could be examples. Both are backed by brokers, have defensive qualities, and are forecast to offer dividend yields approaching 6% over the next couple of years.

With that in mind, here’s why they could be worth a closer look this month.

Amcor plc (ASX: AMC)

The first ASX dividend share to look at is Amcor.

It is a global packaging company that supplies flexible and rigid packaging to customers across food, beverage, healthcare, personal care, and other consumer markets.

Many of the products Amcor helps package are everyday essentials, which can make demand more resilient than in highly discretionary sectors.

The company also has global scale, long customer relationships, and exposure to large consumer goods companies that need reliable packaging partners. This gives Amcor a broad earnings base and the ability to keep investing in innovation, sustainability, and efficiency.

Morgans is a fan and has a buy rating and $65.40 price target on its shares.

As for income, it is forecasting dividends per share of $3.85 in FY 2026 and $3.93 in FY 2027. Based on its current share price of $54.94, this would mean dividend yields of 7% and 7.15%, respectively.

APA Group (ASX: APA)

Another ASX dividend share that could be worth a look is APA Group.

APA owns and operates energy infrastructure across Australia, including gas pipelines, storage, processing, and power assets. These assets play an important role in keeping energy moving around the country.

That gives the business a different income profile from many traditional dividend shares. APA is not dependent on retail spending or commodity price cycles in the same way as many ASX companies.

Reliable energy infrastructure remains important as Australia balances affordability, security, and decarbonisation. Gas and flexible generation may continue to play a role in supporting the grid as more renewable energy is added.

Macquarie is positive on the company and has an outperform rating and $10.41 price target on its shares.

The broker also expects some generous dividend yields in the near term. It is forecasting dividends per share of 58 cents in FY 2026 and then 59 cents in FY 2027. Based on its current share price of $10.01, this would mean dividend yields of 5.8% and 5.9%, respectively.

The post 2 strong ASX dividend shares with big yields to buy in June appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend shares offering yields above 5% that most investors have never heard of
• 3 of the best ASX dividend shares to buy in June
• 3 ASX dividend shares raising dividends like clockwork
• 3 ASX dividend shares yielding 5.5% or more
• Should I buy Amcor shares for their ‘attractive’ dividend yield?

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 Amcor Plc and Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The IperionX Ltd (ASX: IPX) share price is in focus today as the company reported that its titanium fasteners outperformed high-strength steel in independent U.S. Army and third-party testing, delivering torque-to-yield results nearly 20% above Grade 8 steel.

What did IperionX report?

• U.S. Army DEVCOM GVSC testing showed IperionX titanium fasteners reached yield torque of 563–615 ft-lbf, well above the 480–502 ft-lbf range for SAE Grade 8 steel fasteners.
• Westmoreland Mechanical Testing & Research (WMTR) confirmed IperionX fasteners delivered yield strength of 135–137 ksi and ultimate tensile strength of 149–152 ksi – both exceeding typical aerospace-grade titanium and steel benchmarks.
• Three out of five IperionX titanium fasteners did not yield at the U.S. Army’s strength protocol limit during independent testing.
• IperionX’s fasteners are up to 45% lighter than high-strength steel, supporting lightweighting initiatives for defence and industry.
• Testing validates IperionX’s patented manufacturing and powder-to-product titanium technologies.

What else do investors need to know?

IperionX’s successful test results boost the company’s credentials as a supplier of advanced titanium fasteners for critical sectors like defence, aerospace, marine, and industrial applications. The results suggest IperionX can compete directly with high-strength steel fastener suppliers, offering substantial weight savings alongside performance.

The company’s fully domestic titanium supply chain aligns with U.S. government ambitions for defence industrial resilience and secure sources of advanced materials. IperionX’s ability to make high-performance fasteners in the U.S. could see demand rise, particularly for applications where corrosion resistance and weight reduction are priorities.

What’s next for IperionX?

IperionX intends to leverage these third-party validations to advance its position in U.S. defence and aerospace supply chains. Next steps include scaling up commercial production and targeting contracts with defence and industrial customers seeking lighter, stronger, and domestically-sourced titanium components.

With the largest JORC-compliant titanium mineral resource in the U.S. and patented low-carbon manufacturing technologies, IperionX is well placed to support future demand for critical materials – particularly as industries look for local, sustainable supply alternatives.

IperionX share price snapshot

Over the past year, the IperionX shares have risen 71%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

View Original Announcement

The post IperionX gains U.S. Army validation as titanium fasteners outperform steel appeared first on The Motley Fool Australia.

More reading

• Lendlease reports $250m MSG North sale and FY26 loss
• Ventia secures $133m contract extension at Australian Marine Complex
• These were the worst-performing ASX 200 shares in May
• Pro Medicus renews $28m contract with Allegheny Health Network
• These were the best-performing ASX 200 shares in May

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

S&P/ASX 200 Index (ASX: XJO) stock Lendlease Group (ASX: LLC) is tumbling today.

Lendlease shares closed on Friday trading for $2.72. In early morning trade on Monday, shares are swapping hands for $2.51 apiece, down 7.7%.

For some context, the ASX 200 is down 0.1% at this same time.

Here’s what’s happening.

ASX 200 stock sinks on $250 million asset sale

Lendlease shares are falling after the international property developer announced that it has entered an agreement to sell its ownership of the development rights to the Milano Santa Giulia mixed-use development, located in Italy.

The purchaser was reported to be local Italian developer, Bizzi & Partners.

The ASX 200 stock said the divestment is part of its ongoing capital recycling initiatives to simplify its portfolio.

The gross value of the transaction comes out to some $250 million. This includes $90 million in cash Bizzi & Partners will pay to acquire Lendlease’s units in the Heartbeat Fund, which holds the development rights to the Milano Santa Giulia.

The buyer will also assume the project’s debt of around $160 million, as well as funding future remediation and infrastructure works.

However, Lendlease shares look to be under pressure with the company noting that it is selling the development project at a significant discount to book value. Indeed, management expects the divestment to result in roughly a $175 million post-tax operating loss. That loss will be recognised within the ASX 200 stock’s Capital Release Unit (CRU) for the 2026 financial year (FY 2026).

Despite the expected $175 million loss, the company said the sale of mixed-use development in Milan is consistent with its plans to divest its long-dated and complex projects. The sale also removes future capital obligations associated with the development and holding costs.

“The sale of the commercially challenged MSG North project is consistent with our strategy to reduce long-dated international development capital and simplify the group,” Lendlease Tony Lombardo said.

Completion of the asset sale remains subject to certain conditions being met.

What other divestments has Lendlease been making?

Lendlease highlighted that it has a number of “major capital recycling transactions” underway. The ASX 200 stock aims to reach a contractual close or completion on a number of these transactions by 30 June.

Management said that Lendlease has “balance sheet flexibility to manage an orderly realisation of CRU asset sales balancing value realisation and speed of execution”.

At the end of H1 FY 2026, the company reported more than $3 billion in liquidity.

With today’s intraday slide factored in, the Lendlease share price is down 55.6% since this time last year, well behind the 3.5% 12-month gains delivered by the ASX 200.

The post Guess which ASX 200 stock is crashing 8% today on $250 million divestment news appeared first on The Motley Fool Australia.

More reading

• Lendlease reports $250m MSG North sale and FY26 loss
• Why this ASX property stock is rising despite a brutal 40% slide

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.

Pro Medicus Ltd (ASX: PME) shares are starting the week strongly.

In early trade, the health imaging technology company’s shares are up 12.5% to $148.88.

Why are Pro Medicus shares jumping?

Investors have been fighting to get hold of the company’s shares on Monday after it announced another major contract win.

According to the release, the company’s wholly-owned U.S. subsidiary, Visage Imaging, has signed a five-year, A$28 million contract renewal with Allegheny Health Network (AHN). The new contract includes the addition of Visage 7 Workflow.

The company notes that AHN is one of the largest health networks in the Pittsburgh metro area, providing care to 29 Pennsylvania counties, as well as portions of New York, Ohio, and West Virginia.

It is a unified network comprised of 14 hospitals, a total of 2,500 beds, and more than 200 primary-care and specialty-care practices in more than 300 clinical locations and offices.

Importantly, the new contract comes with increased per-transaction costs.

Commenting on the contract renewal, Pro Medicus’ CEO, Dr Sam Hupert, said:

We are very pleased to have played such a key role in AHN’s growth over the past 10 years. AHN has now renewed for a third contract term, reflecting the strength of our long-standing partnership and the value our platform continues to deliver across their organisation.

This contract brings our total renewals for the financial year to A$125M, maintaining our track record of client retention. This underpins our belief that our solution provides unparalleled return on investment from both a financial and a clinical perspective.

AI disruption update

In a separate announcement, Pro Medicus’ CEO, Dr Hupert, was asked about his view on whether the company would be disrupted by artificial intelligence (AI). It noted that Pro Medicus shares have fallen heavily, with this the primary driver of the weakness.

The company’s leader doesn’t believe this will be the case. He said:

While share price is always determined by the market, there is little doubt that the SaaSpocalypse fear affected the share price of most, if not all, software companies globally, including PME. I am on record as saying that I believe it is a knee-jerk reaction, and I think we have seen some moderation of the bearish market sentiment that occurred around early January this year.

I also think that our recent wins and recently announced long-term contract renewals tend to disprove the theory that all software companies will be negatively disrupted by AI.

Instead, Dr Hupert sees AI as an opportunity for the company. He also highlights the company’s defensible moat, pointing out that “many have tried to replicate our tech stack over the last 17 years, but no one has succeeded, with or without AI.”

The post Why are Pro Medicus shares rocketing 12% today? appeared first on The Motley Fool Australia.

More reading

• Pro Medicus renews $28m contract with Allegheny Health Network
• How to invest in ASX shares during such an uncertain period
• 2 ASX 200 shares that could dominate the next decade
• 2 ASX tech shares that could survive the AI shakeout
• 2 incredible ASX tech shares you’ll wish you bought and held

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

At the start of each week, I like to look at ASIC’s short position report to find out which ASX shares are being targeted by short sellers.

That’s because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Lotus Resources Ltd (ASX: LOT) continues to be the most shorted ASX share after its short interest increased again to 18.5%. This uranium producer’s shares have come under significant pressure since the release of a very disappointing quarterly update. Lotus revealed weak production and a sizeable cash burn. There are now concerns that another capital raising will be needed later this year.
• Domino’s Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease to 15.3%. Short sellers appear to be doubting this pizza chain operator’s turnaround plans.
• Telix Pharmaceuticals Ltd (ASX: TLX) has seen its short interest ease again to 14.5%. This radiopharmaceuticals company has come under pressure after struggling to gain key US FDA approvals.
• Boss Energy Ltd (ASX: BOE) has short interest of 14%, which is down since last week. This uranium miner’s uncertain production outlook beyond 2026 has weighed on sentiment.
• Treasury Wine Estates Ltd (ASX: TWE) has 13.7% of its shares held short, which is up week on week again. This wine giant’s recent and encouraging trading update hasn’t put off short sellers.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 12.6%, which is down week on week. Short sellers have been closing positions after the quick service restaurant operator’s shares rocketed in response to the closure of its loss-making US operations.
• CAR Group Limited (ASX: CAR) has short interest of 11.5%, which is up since last week. This may be due to concerns that higher interest rates and rising fuel costs could weigh on the automotive market.
• Flight Centre Travel Group Ltd (ASX: FLT) has returned to the top ten with short interest of 11.4%. Short sellers may believe the Middle East conflict could weigh on this travel agent’s performance.
• Zip Co Ltd (ASX: ZIP) has 11.2% of its shares held short, which is down again week on week. Short sellers may be expecting this buy now pay later provider’s performance to be impacted by weak consumer spending and higher interest rates.
• Polynovo Ltd (ASX: PNV) has 11.2% of its shares held short, which is down week on week again. This medical device company’s shares trade on a high PE ratio. Short sellers may believe this premium is unjustified.

The post Here are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares that brokers tipped to soar in the next 12 months
• Why did ASX 200 retail shares lead the market last week?
• Top brokers name 3 ASX shares to buy next week
• Why these ASX 200 shares could shoot 20% and 50% higher
• A rare buying opportunity in 1 of Australia’s top shares?

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises and Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, PolyNovo, Telix Pharmaceuticals, and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended CAR Group Ltd, Domino’s Pizza Enterprises, Flight Centre Travel Group, PolyNovo, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A month ago, the ASX hosted zero space-themed exchange-traded funds.

Today it has one, and the Betashares Space Industry ETF (ASX: RCKT) has wasted no time making its presence felt.

RCKT units floated at $14 on 12 May 2026.

They now trade much higher, with a gain of approximately 30% in May 2026.

The primary force behind that extraordinary run can be summarised in one word: SpaceX.

What is driving the RCKT ETF higher

SpaceX is targeting a Nasdaq debut around 12 June 2026 under the ticker SPCX.

The company is aiming for a valuation of between US$1.7 trillion and US$2 trillion.

This would make it the largest stock market debut in history.

Every development in the SpaceX IPO process has sent the RCKT ETF higher, as investors use it as the most accessible proxy for the space economy available on the ASX.

RCKT tracks the Solactive Space Industry Index, which holds 28 companies across the global space economy.

Its two largest positions are Rocket Lab USA and AST SpaceMobile at 12.6% each.

Both have delivered extraordinary returns over the past year.

Rocket Lab has risen more than 440% over twelve months.

AST SpaceMobile has surged on confirmation of its first commercial satellite communications service with major US carriers.

The underlying Solactive Space Industry Index returned 249% over the twelve months to 31 May 2026.

This makes it one of the strongest performing thematic indices in the world.

What Betashares CEO said about the RCKT ETF

The timing of RCKT’s launch was no accident.

Alex Vynokur, CEO of Betashares, said at launch:

Once driven primarily by government agencies, the space industry is increasingly shaped by commercial companies launching rockets, building satellite networks and providing critical data from orbit. With falling launch costs expanding what is commercially possible, and anticipated IPOs such as SpaceX’s on the horizon, RCKT is designed to capture the range of opportunities emerging in the global space industry.

Furthermore, McKinsey and the World Economic Forum project that the global space economy could reach $1.8 trillion by 2035.

That long-term growth trajectory underpins the case for RCKT beyond the near-term SpaceX excitement.

Will RCKT hold SpaceX after the IPO?

This is the question every RCKT investor is asking.

The answer is: possibly, but not guaranteed, and not right away.

RCKT is designed to track the Solactive Space Industry Index, which has specific rules about index inclusion.

SpaceX would need to meet those criteria after listing before RCKT could hold it.

That process could take months.

In the meantime, investors using RCKT as a SpaceX proxy are buying the broader space economy rather than SpaceX directly.

That may actually be a better outcome.

SpaceX is expected to be priced at a demanding valuation at IPO, with Elon Musk aiming to allot up to 30% of shares to retail investors.

IPO day prices can reflect peak enthusiasm rather than fair value.

A diversified basket of space companies through RCKT provides exposure to the theme without the concentrated IPO risk.

The risks

The history of space investing includes spectacular failures alongside the successes.

Virign Galactic surged dramatically during the meme stock mania of 2021 before crashing more than 98% from its peak.

RCKT’s top holdings, Rocket Lab and AST SpaceMobile, are both pre-profit companies whose valuations reflect enormous future potential.

If the SpaceX IPO disappoints or if the broader technology sector rotates lower, RCKT units could give back a significant portion of recent gains quickly.

The RCKT ETF charges a management fee of 0.57% per annum and does not yet have a distribution history, given its recent launch.

Foolish Takeaway

The RCKT ETF has delivered returns in three weeks that most funds take years to achieve.

The SpaceX IPO is the immediate catalyst, but the underlying strength of the space economy and the remarkable performance of its holdings suggest this is more than a single-event trade.

For investors comfortable with high volatility and a long time horizon, the RCKT ETF offers an accessible way to participate in what could be one of the defining investment themes of the next decade.

The post This ASX ETF has soared because of the upcoming SpaceX IPO appeared first on The Motley Fool Australia.

More reading

• SpaceX IPO buzz grows as ASX investors eye global tech giants

Motley Fool contributor Mark Verhoeven 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 AST SpaceMobile and Rocket Lab. The Motley Fool Australia has recommended Rocket Lab. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Lendlease Group (ASX: LLC) share price is in focus today following news of a $250 million sale agreement for its MSG North development rights and an expected $175 million post‑tax loss.

What did Lendlease report?

• Entered a sale agreement for Milano Santa Giulia (MSG North) development rights in Milan for ~$250 million.
• Expected post-tax operating loss of approximately $175 million from the transaction, to be recognised in FY26.
• Gross proceeds include ~$90 million in cash and the assumption of ~$160 million in project debt by the purchaser.
• Lendlease maintains more than $3 billion in liquidity as at HY26.
• Moody’s reaffirmed Lendlease’s Baa3 investment grade credit rating with a stable outlook on 25 May 2026.

What else do investors need to know?

The transaction is part of Lendlease’s ongoing capital recycling program, intended to release value tied up in long-dated and complex projects. While the sale is expected to result in an operating loss, it will also remove future capital obligations associated with MSG North’s development and holding costs.

Lendlease has separately announced or completed about $2.9 billion in capital recycling within its Capital Release Unit since May 2024. Additional transactions are currently in advanced stages, and an update on progress is expected once there is more certainty around their completion by 30 June 2026.

What’s next for Lendlease?

The company is focused on executing major capital recycling transactions, aiming to strengthen its balance sheet and simplify operations. Management says forthcoming updates will clarify the status of deals due to close or complete by the end of June.

Lendlease continues to balance maximising value and maintaining speed in asset disposals, drawing on the group’s significant liquidity and investment grade credit rating to support orderly realisations in changing markets.

Lendlease share price snapshot

Over the past 12 months, Lendlease shares have declined 53%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Lendlease reports $250m MSG North sale and FY26 loss appeared first on The Motley Fool Australia.

More reading

• Ventia secures $133m contract extension at Australian Marine Complex
• These were the worst-performing ASX 200 shares in May
• Pro Medicus renews $28m contract with Allegheny Health Network
• 5 things to watch on the ASX 200 on Monday
• Why did ASX 200 retail shares lead the market last week?

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.