It’s been a tough year for this ASX retail stock.

Temple & Webster Group (ASX: TPW) has plunged around 60% over the past 12 months. That’s a brutal decline — especially when the S&P/ASX 300 Index (ASX: XKO) has gained more than 7% over the same period.

So, what’s gone wrong? And could this beaten-down stock really double from here?

Why the share price has fallen

Several headwinds have hit Temple & Webster.

Macro concerns are front and centre. Rising geopolitical tensions in the Middle East and growing anxiety around AI disruption have weighed on growth stocks broadly.

Then there are cost pressures. Surging shipping costs have raised fears margins could take a hit in the second half of FY26.

Add to that earlier issues — slowing growth, heavy discounting, and increased marketing spend — and it’s easy to see why recent earnings disappointed.

Investors have reacted accordingly.

But here’s the twist: the long-term story may still be intact.

A scalable growth machine

Temple & Webster is Australia’s largest pure-play online furniture and homewares retailer.

Its business model is a key strength. It operates a marketplace platform, connecting suppliers directly with customers. That means it can scale its product range without holding large amounts of inventory.

Less inventory. Lower risk. Greater flexibility.

The company is chasing a big opportunity. The furniture and homewares market remains highly fragmented, and Temple & Webster is targeting more than $1 billion in annual revenue by FY28.

Growth is still strong.

In the first half of FY26, the company delivered nearly 20% sales growth. That’s impressive in the current environment.

And the structural tailwind is clear. Online shopping continues to gain share. E-commerce makes up about 20% of Australia’s homewares market today. In markets like the UK and US, penetration is closer to — or above — 30%.

There’s room to run for the ASX retail stock.

Margins could surge

Profitability is the next piece of the puzzle.

In FY25, Temple & Webster reported an EBITDA margin of 3.1%. That’s modest — but it’s expected to improve.

Management is guiding for a 3% to 5% margin in FY26. Longer term, it’s targeting at least 15%.

That’s a huge jump.

If the ASX retail stock can combine higher margins with rising revenue, earnings could scale rapidly. And that’s exactly what growth investors want to see.

What do analysts think?

Despite recent setbacks, brokers remain optimistic on the ASX retail stock.

Bell Potter has a buy rating on Temple & Webster, with a $13 price target. That implies around 90% upside over the next 12 months.

More broadly, sentiment is strong. TradingView data shows 10 out of 14 analysts rate the stock a buy or strong buy.

And the most bullish forecast? A price target of $24.00 — suggesting a massive 257% upside.

Foolish takeaway

Temple & Webster has been hit hard. No doubt about it.

But the combination of strong revenue growth, a scalable model, and long-term margin expansion keeps the investment case alive.

If execution improves and macro pressures ease, this dirt-cheap ASX retail stock could be primed for a powerful rebound.

The post This dirt cheap ASX retail stock is tipped to double in value appeared first on The Motley Fool Australia.

More reading

• $3k to invest? 2 ASX shares to consider buying in 2026
• This oversold ASX stock is so cheap it’s crazy
• Here are the top 10 ASX 200 shares today
• Where I’d invest $10,000 into ASX growth shares on this painful day for the stock market
• 5 great value ASX growth shares I’d buy and hold

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

Putting $10,000 to work in ASX dividend shares can be a great way to start building a reliable income stream.

For me, the focus isn’t just on yield. It’s about building a mix of businesses and investments that can generate income today, while also giving that income the chance to grow over time.

Here’s how I’d approach it.

Macquarie Group Ltd (ASX: MQG)

I think Macquarie Group could play an important role in an income portfolio.

Macquarie has a strong track record of growing earnings and dividends over time, supported by its global operations across asset management, banking, and infrastructure.

Its dividend yield may not be the highest on the ASX, but it has shown an ability to increase its payout over the long term.

For me, this is about planting the seeds for future income growth.

Super Retail Group Ltd (ASX: SUL)

Super Retail brings a different type of exposure. It operates well-known brands across automotive, sports, and outdoor retail, and has a history of paying solid dividends when conditions are supportive.

Retail can be cyclical, which is something to be aware of.

But with strong brands (BCF, Macpac, Rebel, and Supercheap Auto) and a loyal customer base, Super Retail has demonstrated that it can generate meaningful cash flow across the cycle.

I think that could make it an interesting ASX dividend share for an income portfolio.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The Vanguard Australian Shares High Yield ETF is one of the simplest ways to access dividend income.

It provides exposure to a diversified portfolio of high-yielding Australian shares, including banks, miners, and other income-focused businesses.

What I like is that it spreads your risk. Instead of relying on a handful of stocks, you’re getting income from a broad basket of companies.

That can help smooth out returns over time.

Flight Centre Travel Group Ltd (ASX: FLT)

I think Flight Centre has a place in an income portfolio.

As a travel business, its earnings can be more volatile. However, when conditions are strong, it has the potential to generate significant profits and return capital to shareholders.

And with its shares down meaningfully from their highs, the potential dividend yield on offer now is much more attractive than it was a year ago.

For example, according to CommSec, the consensus estimate is for fully franked dividends so 49.3 cents per share in FY26 and then 57 cents per share in FY27. This represents dividend yields of 4.3% and 4.95%.

Magellan Infrastructure Fund (ASX: MICH)

Lastly, the Magellan Infrastructure Fund helps round things out. It provides exposure to global infrastructure assets, which typically generate stable and predictable cash flows.

That can translate into more consistent income for investors.

It also adds diversification, which I think is important when building any portfolio.

Foolish takeaway

Investing $10,000 in ASX dividend shares isn’t about chasing the highest yield.

For me, it’s about combining quality, diversification, and growth potential.

Macquarie adds long-term dividend growth, Super Retail offers retail-driven income, the VHY ETF provides broad exposure, Flight Centre is a recovery play, and Magellan Infrastructure adds diversification.

Together, they show how a mix of different income sources can help build a stronger portfolio over time.

The post How to invest $10,000 in ASX dividend shares in 2026 appeared first on The Motley Fool Australia.

More reading

• What could $500 a month in ASX 200 shares become in 20 years?
• ASX bank stocks: Buy, sell, or hold?
• 4 ASX All Ords shares at 52-week lows: Buy, hold, or sell?
• 5 things to watch on the ASX 200 on Wednesday
• I’m listening to Warren Buffett and loading up on cheap ASX shares

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 positions in and has recommended Macquarie Group and Super Retail Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Super Retail Group. The Motley Fool Australia has recommended Flight Centre Travel Group, Magellan Infrastructure Fund, and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a very strong session and raced notably higher. The benchmark index jumped 1.85% to 8,534.3 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 set to rise

The Australian share market looks set to rise again on Thursday following a good night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 22 points or 0.25% higher this morning. In late trade in the United States, the Dow Jones is up 0.6%, the S&P 500 is up 0.55% and the Nasdaq is 0.75% higher.

Soul Patts shares on watch

Washington H. Soul Pattinson and Co Ltd (ASX: SOL) shares will be on watch on Thursday. That’s because the investment house will be releasing its half-year results before the market open. These will be the company’s first results since the transformational $14 billion merger with Brickworks. That deal was stated to be “cash flow and post-tax NAV accretion on a per share basis.”

Oil prices fall

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a subdued session on Thursday after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 1.7% to US$90.81 a barrel and the Brent crude oil price is down 1.8% to US$102.57 a barrel. This has been driven by optimism that a US-Iran peace deal could be on the horizon.

Shares named as buys

The team at Wilsons has identified a number of shares that it thinks are buys after being oversold. They include Pinnacle Investment Management Group Ltd (ASX: PNI), Hub24 Ltd (ASX: HUB), and Cochlear Ltd (ASX: COH). It said: “Pinnacle (PNI) and HUB24 (HUB) trade below five-year average P/E multiples while retaining strong structural growth and offering meaningful leverage to an eventual equity market recovery. Cochlear (COH) trades at a decade-low P/E, with its Nexa product cycle supporting medium-term earnings acceleration.”

Gold price rises

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good session on Thursday after the gold price pushed higher overnight. According to CNBC, the gold futures price is up 2.4% to US$4,508.8 an ounce. A pullback in oil prices has eased inflation and higher interest rate fears.

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

More reading

• How I’d invest $20,000 in ASX shares right now to help build long-term wealth
• What could $500 a month in ASX 200 shares become in 20 years?
• Here are the top 10 ASX 200 shares today
• Top brokers name 3 ASX shares to buy today
• Why are ASX 200 energy shares tumbling today?

4DMedical Ltd (ASX: 4DX) shares stole the spotlight on Wednesday, surging 34% to a record high and capping off one of the most extraordinary runs on the ASX.

Over the past year, defence stocks have grabbed the headlines with Droneshield Ltd up 330% and Electro Optic Systems Ltd (ASX: EOS) up 540% but the returns from 4DMedical, up a staggering 1,630%, are hard to ignore.

What is driving such an astronomical share price increase?

A major endorsement from Mayo Clinic

The catalyst for the latest move is the deployment of 4DMedical’s CT:VQ technology at the Mayo Clinic in the United States, widely regarded as one of the best hospitals in the world.

This is a high credibility signal. When an institution like Mayo adopts a new technology, it carries weight across the broader healthcare system.

Mayo will use the technology for ventilation and perfusion analysis, initially integrating it into clinical workflows and evaluating its use across a range of applications.

Building serious momentum

What also stands out is the speed of adoption.

In just seven months since receiving FDA clearance in September 2025, 4DMedical has secured deployments at six leading US academic medical centres, including Stanford, Cleveland Clinic, and the University of Chicago.

That level of traction in such a short timeframe is unusual and suggests strong early demand.

The company’s value proposition is clear. Its technology eliminates the need for radioisotopes and contrast agents, integrates into existing CT workflows, and delivers high resolution functional imaging.

It also aligns with reimbursement pathways, which is critical for real world adoption.

What investors should watch

There is no doubt that 4DMedical is one of the hottest stocks on the ASX right now. The rally reflects growing confidence that the company is moving beyond a promising technology story into early commercial execution.

With a market cap exceeding $3Billion, expectations are sky high and the next phase is strong execution. Investors will want to see these deployments translate into meaningful revenue and over time, free cash flow.

The post Forget DroneShield and EOS, this ASX healthcare stock is up 15x in a year! appeared first on The Motley Fool Australia.

More reading

• Why 4DMedical, Brazilian Rare Earths, Clarity, and Tuas shares are racing higher today
• ASX 300 stock rockets 38% on ‘landmark moment’
• Up over 900%: Is it too late to buy this incredible ASX tech stock?
• Are 4DMedical and Life360 shares a buy, hold or sell after rocketing 10% yesterday?
• What to make of these volatile ASX shares

Motley Fool contributor Kevin Gandiya has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and Electro Optic Systems and is short shares of DroneShield. 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.

It hasn’t been the smoothest period for global markets.

Concerns around the Middle East conflict, rising inflation, and the potential impact of artificial intelligence have weighed on sentiment. That has pushed the iShares S&P 500 AUD ETF (ASX: IVV) around 10% below its recent high.

That kind of pullback doesn’t come around often, so is this a buying opportunity?

What you’re actually buying

The IVV ETF gives you exposure to the S&P 500.

That means ownership in 500 of the largest companies in the United States, many of which are global leaders.

Some of its largest holdings include Apple, Microsoft, NVIDIA, Amazon, and Alphabet.

These aren’t just big companies. They sit at the centre of major global trends, including cloud computing, artificial intelligence (AI), digital advertising, and e-commerce.

For me, that’s a big part of the appeal.

Instead of trying to pick which one will outperform, the iShares S&P 500 AUD ETF gives you exposure to all of them in one investment.

Why the recent IVV share price pullback matters

A 10% decline doesn’t necessarily make something cheap. But it does change the starting point.

A few months ago, investors were paying peak prices for this exposure. Now, expectations have come down, and that can improve long-term return potential.

The sell-off appears to be driven more by macro concerns than a sudden deterioration in these businesses.

I think that distinction matters.

Because if the underlying companies continue to grow over time, then a lower entry price can work in your favour.

A track record that speaks for itself

The S&P 500 index has delivered strong long-term returns over decades.

It has navigated recessions, interest rate cycles, geopolitical events, and technological shifts. And through it all, it has continued to trend higher over time.

That doesn’t mean the future will look exactly the same.

But the combination of innovation, scale, and global reach across its companies gives it a strong foundation.

The IVV ETF simply provides a low-cost way to access that.

Why I think it’s worth considering now

Timing the market perfectly is incredibly difficult. But periods of weakness often create opportunities to build positions in high-quality assets.

With the iShares S&P 500 AUD ETF share price down meaningfully from its highs, I think the risk-reward balance is looking more attractive.

You’re getting exposure to some of the world’s most dominant companies, a proven index, and long-term growth drivers.

That’s not something I think should be ignored.

Foolish takeaway

The IVV ETF has pulled back alongside broader market concerns, bringing its share price down around 10% from recent highs.

While uncertainty remains, the underlying businesses in the index continue to operate at the forefront of global growth.

For investors with a long-term mindset, I think this could be one of those moments where stepping in makes sense.

The post After sinking 10%, is the IVV share price too cheap to ignore? appeared first on The Motley Fool Australia.

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• Where to invest $50,000 in ASX ETFs for the next 10 years
• 5 ASX ETFs to buy for an SMSF in 2026
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• 3 ASX ETFs for beginners starting with $5,000
• 5 fantastic ASX ETFs to buy and hold for five years

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 positions in and has recommended Alphabet, Amazon, Apple, Microsoft, Nvidia, and iShares S&P 500 ETF and is short shares of Apple. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Looking for some new portfolio additions? Well, let’s see what analysts at Morgans are saying about these popular ASX shares.

Are they buys, holds, or sells? Let’s find out:

National Australia Bank Ltd (ASX: NAB)

While this banking giant delivered a solid quarterly update last month, it isn’t enough to justify its valuation.

As a result, the broker has retained its sell rating with a $37.27 price target. It said:

Like its peers that reported in February, NAB’s 1Q26 trading update showed it is benefitting from a supportive interest rate, credit growth, and asset quality environment. We make upgrades to our forecasts to reflect performance and outlook. 12 month target price set at $37.27/sh.

With more aggressive assumptions than previously we estimate a higher fundamental value for NAB. However, the share price is still trading far ahead of this revised estimate. SELL retained, with potential TSR of -17% (including 3.6% cash yield).

Pro Medicus Ltd (ASX: PME)

This health imaging technology company’s shares could be undervalued according to Morgans.

Although Pro Medicus’ half-year earnings were a touch short of expectations, the broker remains very positive on its outlook.

And while it has retained its buy rating with a trimmed price target of $275.00, this is more than double its current share price. It said:

PME delivered record revenue and underlying EBIT up ~30% YoY, yet the result fell short of expectations on operating leverage with a jump in staff costs driving an EBITDA miss as Trinity contributed less than anticipated. The longer-term outlook strengthened with more than A$280m of new contracts signed and five-year contracted revenue now around A$1.1bn, though the market remains wary of a heavy 2H execution load and cost base increase.

It is not ideal to deliver a miss in this market, but the reaction feels overcooked and the setup into 2H is far better than the share price implies. Our valuation is reduced to A$275 (from A$290) and we retain our Buy recommendation.

Telstra Group Ltd (ASX: TLS)

Finally, this telco giant delivered a result that was better than expected. However, it only reaffirmed its guidance for the full year.

In light of this, Morgans held firm with its hold rating with a $5.20 price target. It commented:

TLS’s 1H26 result was slightly better than expected albeit with full year guidance broadly reiterated. Highlights of the result were strong performance for the all-important mobile business, strong cashflow and a slightly higher than expected interim dividend. The interim dividend is partially franked (90.5%) and above consensus expectations. Our TP lifts to $5.20 and we retain our Hold recommendation.

The post Buy, hold, sell: NAB, Pro Medicus, and Telstra shares appeared first on The Motley Fool Australia.

More reading

• ASX bank stocks: Buy, sell, or hold?
• How have the ASX big four bank shares held up in March?
• Are these ASX shares hitting 52-week highs still worth buying?
• 3 of the safest ASX 200 dividend stocks in Australia
• Can Telstra Group shares keep soaring after hitting a 10-year high?

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 positions in and has recommended Telstra Group. 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.

The Xero Ltd (ASX: XRO) share price has been hammered in the last six months, falling by more than 50%, as the chart below shows. A lot of that pain has seemingly been due to market concerns about what could happen with AI in the coming years.

As one of the world’s leading cloud accounting software businesses, it offers subscribers an important service.

But it’s certainly possible that the business could be exposed to future competition from AI-developed software. Of course, that doesn’t automatically mean those potential competitors will definitely win sizeable market share – they still need to market to customers and win subscribers.

In a recent note from UBS, the broker revealed that its small and medium business IT spending survey appeared to show that AI risk “appears to be reducing” for Xero.

What did the survey show?

UBS said that its survey across 450 respondents across the US, UK, Canada, and Australia showed three key things.

First, accounting and payments software spending growth is expected to accelerate this year.

Second, customer churn (changing software) intentions remain low, with small and medium businesses “increasingly likely to renew their software subscriptions”.

Third, there is an increase in small and medium businesses looking to buy AI capabilities from incumbents and pre-existing software providers, while doing less “DIY” work themselves.

Xero itself is looking to implement AI (more) throughout its business, so Xero can be the portal through which subscribers gain exposure to AI. Increasing use of AI by Xero’s customers in other areas of operations will help drive AI-uptake with their existing software providers.

UBS judged Xero as screening well in this survey, with Xero customers looking to increase their spending by 7.7% this year, while payments (Melio) customers are looking to lift spending by 13%.

The broker also noted that 86% of Xero’s customers are looking to renew their subscription.

Is the Xero share price a buy?

According to UBS’ projection, Xero could generate NZ$2.7 billion in revenue and NZ$225 million in net profit in FY26. Further growth is expected in FY27, with revenue growth to US$3.58 billion and a rise in net profit to NZ$267 million.

UBS currently has a price target of $174 on the Xero share price, which suggests a possible rise of 130% over the next year, at the time of writing. With that bullish view, it’s no surprise that UBS has a buy rating on Xero shares.

The post Here are expert views on whether the Xero share price is a buy amid AI concerns appeared first on The Motley Fool Australia.

More reading

• 3 ASX growth shares that could rebound strongly after the selloff
• The war in Iran has inspired an unexpected ASX 200 market trend
• Which ASX battered tech stock has the most upside according to brokers?
• This could be a once-in-a-decade opportunity to buy cheap ASX tech stocks
• A rare buying opportunity in 1 of the ASX’s top shares?

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

Putting $20,000 to work in the market is a meaningful step. At that size, I’d be thinking about building a portfolio that can grow through different conditions.

For me, that means combining quality, growth, and a bit of resilience.

Here’s why I would split the money across these four names.

Hub24 Ltd (ASX: HUB)

Hub24 continues to build momentum in a way that’s hard to ignore.

It operates a wealth management platform that continues to attract funds from advisers and clients moving toward more sophisticated investment solutions.

What stands out to me is its ability to consistently grow funds under administration. That kind of growth can compound over time, especially as the shift toward managed platforms continues.

It’s an ASX share that I think could look significantly larger in a decade than it does today.

James Hardie Industries Plc (ASX: JHX)

James Hardie Industries brings exposure to global construction and housing.

That might sound cyclical, and it is, but James Hardie has built a strong position in fibre cement products, particularly in the United States.

What I like is its combination of brand strength and long-term demand. Housing cycles will come and go, but over time, population growth and renovation activity tend to support demand for its products.

That makes it an ASX share I’d be comfortable holding through the ups and downs.

BHP Group Ltd (ASX: BHP)

BHP adds a different dimension to a portfolio.

It gives exposure to commodities like iron ore and copper, which play a key role in global infrastructure and electrification.

Copper in particular is becoming increasingly important, with demand linked to renewable energy, electric vehicles, and data centres.

BHP also has its Jansen potash project in Canada, which is expected to begin production in the coming years and could become a major contributor over time.

For me, this is about combining income with long-term thematic growth.

Telix Pharmaceuticals Ltd (ASX: TLX)

Telix Pharmaceuticals is a higher-growth, higher-risk part of the portfolio.

It operates in radiopharmaceuticals, focusing on diagnostic imaging and cancer treatment.

This is a rapidly evolving area of healthcare, with significant global demand.

Telix has already made strong progress commercially, and I think it has the potential to continue expanding its product portfolio and geographic reach.

It won’t be without volatility, but that’s often where the biggest opportunities come from.

Foolish takeaway

Building long-term wealth in ASX shares doesn’t require chasing trends or constantly trading.

For me, it’s about owning a mix of businesses with strong positions and long-term potential. I think Hub24, James Hardie, BHP, and Telix offer exactly this.

The post How I’d invest $20,000 in ASX shares right now to help build long-term wealth appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• What could $500 a month in ASX 200 shares become in 20 years?
• Are these 3 ASX 200 mining shares a buy, hold, or sell?
• ASX mining shares have slumped but long-term outlook is positive
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Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 and Telix Pharmaceuticals. The Motley Fool Australia has recommended BHP Group, Hub24, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Investing doesn’t have to start with a large lump sum.

Putting $500 a month into ASX 200 shares might not feel like much at first, but over time, it can build into something meaningful.

I’m going to show you how.

The power of compounding

The real driver here is compounding. That’s where your returns start generating their own returns, and the effect builds over time.

If we assume a long-term return of 9% per annum, which is not guaranteed but has been achievable historically over long periods, the numbers start to add up.

After 10 years, a $500 monthly investment could grow to around $95,000.

By 20 years, that same approach could see your portfolio reach approximately $320,000.

What stands out to me is how much the growth accelerates in the second decade. That’s compounding doing the heavy lifting.

Why consistency matters

One of the biggest advantages of investing regularly is that it removes the pressure to time the market.

When you invest every month, you naturally buy more ASX 200 shares when prices are lower and fewer when prices are higher.

This is known as dollar-cost averaging.

It’s a simple approach, but I think it’s incredibly effective.

Instead of trying to predict short-term movements, you’re steadily building your position over time.

Not every year will look the same

A 9% average return doesn’t mean you’ll get 9% every year.

Some years will be strong, with double-digit gains. Other years may be flat or even negative. That’s part of investing in ASX 200 shares.

Volatility is normal, especially over shorter periods.

What matters is staying focused on the long term and not getting distracted by short-term fluctuations.

The role of quality

If I were following this approach, I’d want to focus on quality ASX 200 shares or broad market exposure.

This might include ResMed Inc. (ASX: RMD), Macquarie Group Ltd (ASX: MQG), Hub24 Ltd (ASX: HUB), and Wesfarmers Ltd (ASX: WES).

These are businesses that have proven their ability to grow over time, generate profits, and adapt to changing conditions.

Over long periods, quality tends to win out. And when combined with regular investing, it can create a powerful foundation for wealth building.

Why starting matters

The earlier you begin, the more time compounding has to work.

But I think even starting later can still make a big difference.

What matters most is getting into the habit of investing consistently and sticking with it.

Because over time, those monthly contributions can turn into something far larger than they first appear.

Foolish takeaway

Investing $500 a month into ASX 200 shares may seem simple, but over 20 years, it could grow into around $320,000 based on a 9% annual return.

For me, this highlights what really drives long-term results. Consistency, patience, and letting compounding do its work.

The post What could $500 a month in ASX 200 shares become in 20 years? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• How I’d invest $20,000 in ASX shares right now to help build long-term wealth
• Buy, hold, sell: Breville, Goodman, and Wesfarmers shares
• ASX bank stocks: Buy, sell, or hold?
• Forget CSL shares, this ASX healthcare stock could double in value

Motley Fool contributor Grace Alvino has positions in Hub24 and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24, Macquarie Group, ResMed, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie Group and ResMed. The Motley Fool Australia has recommended Hub24 and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Exchange-traded funds (ETFs) are a popular choice among investors because they offer instant diversification, traditionally low fees, and they tend to grow steadily over time.

Another bonus is that if an ETF’s portfolio includes shares that pay a dividend, the ETF will collect it and pass it on to investors. Like any ASX dividend-paying stock, this is usually paid out quarterly or annually. But then there are the rare few ETFs that pay income to investors monthly.

Here are two of them, and they both have very attractive yields.

BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX)

The Betashares YMAX is an ASX-listed ETF that targets the 20 largest Australian shares on the ASX. 

Since the fund began in April 2023, YMAX has been paying quarterly dividends to its shareholders. But effective from January this year, it has elected to pay out on a monthly basis instead.

As of the 27th of February 2026, YMAX ETF has a 12-month gross distribution (dividend) yield of 9% and a 12-month distribution yield of 7.6%. The total 12-month franking level is 42.4%. The fund’s annual management fee and costs are 0.64%.

Its first-ever monthly dividend payment was paid on the 17th of February, where it handed investors $0.035221 per unit and paid $0.050699 per unit last week. 

Over the past 12 months, YMAX shares have trailed the S&P/ASX 200 Index (ASX: XJO) returns. The ETF’s share price is down 1.98% compared with the ASX 200’s 7.4% annual gain.

BetaShares Dividend Harvester Active ETF (ASX: HVST) 

The Betshares HVST ETF is an ASX-listed ETF that invests in 40 to 60 dividend-paying companies. These are selected from the top 100 largest ASX-listed companies based on their dividend forecasts, franking credits, and expected future gross dividend payments.

The ETF does not track an index; instead, it targets exposure to high-dividend stocks.

The fund is created in a way that allows it to own a dividend share until it trades ex-dividend. At this point, the fund sells the shares and reinvests the proceeds into its next opportunity.

HVST ETF pays investors a regular, franked dividend income that is around double the annual income yield of the broader ASX. 

As of the 27th of February 2026, its 12-month gross distribution (dividend) yield is 7%, and the net yield is 5.5%. The franking level is 64.7%. The fund’s annual management fee and costs are 0.72%.

The fund paid out $0.06 per share to investors in late February and another $0.06 per share last week.

HVST shares have trailed the index over the past 12 months. The ETF’s share price is down 0.1% over the past 12 months, compared with the ASX 200’s 7.4% annual gain.

The post 2 monthly income ETFs with yield reaching as high as 9% appeared first on The Motley Fool Australia.

More reading

• 3 of the best ASX ETFs for income investors
• 3 of the best dividend ASX ETFs right now
• 3 ASX monthly dividend stocks yielding over 5%
• Shift your focus to passive income with these dividend ASX ETFs
• Passive income: How much would I need to invest in ASX shares to earn $1,000 every month?

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.