Here at the Motley Fool, we often encourage investors to diversify their portfolios. Not just using ASX shares, or exchange-traded funds (ETFs), mind you, but buying stocks from other markets as well. The ASX is a wonderful place to invest. But it represents just a tiny fraction of the world’s best businesses.

I have long recommended that Australian investors diversify into US stocks. The US, with its world-class companies like Microsoft, Alphabet, and Mastercard, is fertile ground for finding some of the best companies in the world.

However, chances are most Australians are already quite heavily invested in the American markets thanks to their superannuation funds. Many Australians might also feel a little queasy about investing Stateside right now for various reasons. One might be the high correlation that the ASX and the US stock markets have historically shown.

So, if you are looking for true stock market diversification, you might wish to consider using an ASX ETF that many investors haven’t considered, or may not have even heard of.

The Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE) is a massive investment in scope and scale. It holds more than 4,000 underlying stocks, drawn from about two dozen countries’ stock markets. The economies of these countries, as you might guess from the fund’s name, are classified as emerging. They range from China, India, and Taiwan to Kuwait, Malaysia, and South Africa.

Those are markets that most investors have very little exposure to, if at all. Some of this ETF’s largest holdings are stocks you may have heard of, such as Taiwan Semiconductor Manufacturing Co. or Alibaba. Others, like Saudi National Bank and Petroleo Brasileiro, are more obscure.

An ASX ETF to instantly diversify a stock portfolio

Using an ETF like VGE enables investors to diversify away from both the ASX and the United States as much as one practically can in Australia. For investors who have already done so in recent years, the results have been quite lucrative. As of 31 October, the Vanguard FTSE Emerging Markets Shares ETF has returned 18.57% year to date and 20.96% over the preceding 12 months. Over the past three years, the returns have averaged 17.43% per annum.

Going back further, though, those returns are more tempered. VGE units have averaged 7.71% per annum over the ten years to 31 October, and 7.6% per annum since this ASX ETF’s inception 12 years ago this month. These figures all take into account VGE’s management fee of 0.48% per annum.

ASX investors also have to keep in mind that this ETF is not currency hedged. That means that international currency movements (which can be volatile in emerging markets) have the potential to both positively and negatively influence returns when brought back to Australian dollars.

Even so, this ASX ETF from Vanguard is arguably a great option if you want to meaningfully diversify your ASX investments.

The post Is this the best ASX ETF to diversify your portfolio with? appeared first on The Motley Fool Australia.

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• 1 Australian stock you’ll probably kick yourself for not owning a decade from now
• 3 of the best ASX ETFs to build significant wealth
• I’d listen to Warren Buffett’s advice to buy undervalued ASX shares today
• These are the top ASX blue-chip shares I’d buy today
• Here’s what Westpac says the RBA will do with interest rates in December

Motley Fool contributor Sebastian Bowen has positions in Alphabet, Mastercard, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Mastercard, Microsoft, and Taiwan Semiconductor Manufacturing. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alibaba Group and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Mastercard, and Microsoft. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Every now and then, the market serves up a great business at a very attractive price.

Right now, I believe ResMed Inc. (ASX: RMD) is one of those opportunities.

A global health giant hiding in plain sight

ResMed has quietly grown into one of Australia’s most successful global healthcare companies. It dominates the market for sleep apnoea devices and masks, and its software platforms support millions of patients and providers worldwide.

And yet, despite that leadership, its shares have only risen by 9% since this time four years ago due largely to concerns about weight-loss drugs. But when you zoom out, the long-term outlook becomes impossible to ignore.

Sleep apnoea is one of the most underdiagnosed medical conditions on the planet, with more than one billion people estimated to suffer from it globally. The vast majority are undiagnosed and untreated. That gives ResMed a total addressable market so large that even modest gains in diagnosis and treatment can fuel years, if not decades, of growth.

Long term opportunity

The market became preoccupied with fears that weight-loss medications could meaningfully reduce sleep apnoea cases. But real-world data has shown that isn’t happening. Independent analysts and sleep specialists continue to report that while weight loss helps, it rarely eliminates the condition entirely. In many cases, patients still require ongoing treatment.

At the same time, ResMed has been consistently improving margins through cost efficiencies, manufacturing improvements, and strong demand for its latest devices.

Big potential returns

Despite its world-class fundamentals, ResMed is trading at a sharp discount to what many analysts believe is fair value.

For example, analysts at Citi have a buy rating and $51.00 price target on this Australian stock.

Based on its current share price of $39.31, this implies potential upside of approximately 30% for investors over the next 12 months.

The team at Macquarie isn’t far behind with its outperform rating and $49.20 price target, which offers a potential return of 25%.

Investors don’t often get a chance to buy a healthcare leader of this calibre at a discount, and they rarely get two chances.

Foolish takeaway

Fast-forward 10 years, and this Australian stock is likely to be even bigger, more technologically advanced, and more profitable than it is today.

The sleep apnoea market is vast, underpenetrated, and growing. ResMed’s competitive position is formidable. And the current share price simply doesn’t reflect that long-term potential.

The post 1 Australian stock you’ll probably kick yourself for not owning a decade from now appeared first on The Motley Fool Australia.

More reading

• These are the top ASX blue-chip shares I’d buy today
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• The Warren Buffett golden rule that investors can’t ignore
• These top ASX 200 stocks could rise 25% to 60%

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and ResMed. The Motley Fool Australia has positions in and has recommended Macquarie Group and ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Most people think building wealth requires luck, endless research, or perfectly timing the market.

In reality, long-term wealth is usually created through a simple formula. That is owning great assets, staying invested, and letting compounding quietly work for you.

That is where exchange-traded funds (ETFs) shine.

With a single investment, you can own large numbers of high-quality shares and ride the growth of powerful global trends.

For investors looking to build serious wealth over the next decade and beyond, a handful of ASX ETFs stand out as exceptional foundations.

Here are three that could help turn steady investing into meaningful long-term results.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

If you believe the next generation of global growth will come from Asia, then the Betashares Asia Technology Tigers ETF could be for you.

It provides exposure to the region’s biggest and most influential tech companies, spanning China, Taiwan, and South Korea.

Its portfolio features giants such as Tencent Holdings (SEHK: 700) in gaming and social media, Taiwan Semiconductor Manufacturing Company (NYSE: TSM) in chip manufacturing, and Alibaba Group (NYSE: BABA) in e-commerce and cloud computing. These businesses sit at the centre of digital transformation across Asia, which is a trend poised for decades of growth.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

The Betashares Global Cash Flow Kings ETF focuses on profitable global shares with strong free cash flow, which is one of the most reliable indicators of long-term shareholder returns. Instead of chasing hype, this ASX ETF targets businesses that generate real, recurring cash and deploy it intelligently.

Holdings include Visa (NYSE: V), Alphabet (NASDAQ: GOOGL) and Palantir Technologies (NASDAQ: PLTR). These companies produce vast amounts of cash that can be reinvested, returned to shareholders or used to fund future innovation.

For investors who want growth without excessive speculation, this fund offers a disciplined and quality-focused global portfolio. It was recently named as one to consider buying by Betashares.

Betashares Global Cybersecurity ETF (ASX: HACK)

Finally, the Betashares Global Cybersecurity ETF provides investors with exposure to shares that are safeguarding the world’s data and digital infrastructure. This is an area that is expected to grow rapidly as cyber threats become more frequent and sophisticated.

Major holdings include CrowdStrike Holdings (NASDAQ: CRWD), Palo Alto Networks (NASDAQ: PANW) and Cisco Systems (NASDAQ: CSCO). These are global leaders in cloud security, threat detection, and network infrastructure, which are areas with massive demand and long-term spending growth ahead.

The post 3 of the best ASX ETFs to build significant wealth appeared first on The Motley Fool Australia.

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• 3 defensive ASX ETFs for a rocky 2026
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Motley Fool contributor James Mickleboro has positions in Betashares Capital – Asia Technology Tigers Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, BetaShares Global Cybersecurity ETF, Cisco Systems, CrowdStrike, Palantir Technologies, Taiwan Semiconductor Manufacturing, Tencent, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alibaba Group and Palo Alto Networks. The Motley Fool Australia has recommended Alphabet, CrowdStrike, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If there’s one investing principle Warren Buffett has repeated more than any other, it is to buy wonderful companies at fair or undervalued prices.

Not speculative names. Not the hottest trend. Just proven businesses that are temporarily trading below what they are truly worth.

It is a simple philosophy, but it is also one of the main reasons the Oracle of Omaha has outperformed the broader market for more than half a century, and it remains just as relevant today.

Even after the recent rebound in global markets, pockets of undervaluation still exist. And for long-term investors, these opportunities may be far more attractive than trying to chase whatever is surging right now.

Warren Buffett doesn’t hunt for cheap shares

Buffett has always made it clear that undervalued shares aren’t the same as good value shares. A stock can look cheap on paper but still be a bad investment if the underlying business is deteriorating.

What Buffett actually looks for is value relative to quality, strong competitive advantages, durable earnings, talent management, and long-term tailwinds.

If a company ticks those boxes and the market is mispricing it due to short-term pessimism, that is when Buffett becomes interested.

This mindset has delivered decade after decade of outperformance, not through luck, but because buying undervalued high-quality businesses creates a natural margin of safety and amplifies long-term returns.

Powerful in uncertain markets

A common mistake that investors make is waiting for the perfect moment to buy ASX shares. Buffett doesn’t try to predict market tops or bottoms; he simply focuses on value.

And when markets wobble, sentiment weakens, or headlines turn negative, that’s when mispricings often occur.

Today’s environment is a perfect example. There are plenty of high-quality ASX shares that trade well below their long-term averages. Think of companies such as CSL Ltd (ASX: CSL), which remains deeply discounted despite strong fundamentals, or Xero Ltd (ASX: XRO), which has been sold off far more than its long-term growth outlook deserves.

These situations don’t guarantee gains. No investment does. But what they offer is a level of valuation support that speculative, overhyped sectors simply cannot match.

Buffett’s point is simple: if you buy a high-quality business at a sensible price, you are already ahead, no matter what the market does next.

Foolish takeaway

Warren Buffett’s advice hasn’t changed in 60 years because it keeps working. Buy great businesses when they are good value, hold them for as long as you can, and let compounding do the rest.

Even with markets rebounding recently, there are plenty of high-quality ASX shares that still trade below what they’re worth. For long-term investors, this may be the ideal moment to follow Buffett’s lead.

The post I’d listen to Warren Buffett’s advice to buy undervalued ASX shares today appeared first on The Motley Fool Australia.

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

ASX blue-chip shares are typically some of Australia’s biggest companies. Some of them do not have a lot of growth potential because they’re mature businesses with few avenues to accelerate earnings noticeably.

I think one of the main appeals of good blue chips is that they’re large and can deliver earnings growth.

The three businesses I want to tell you about are three of the strongest Australian companies that can grow at a pleasing pace.

Telstra Group Ltd (ASX: TLS)

Telstra is Australia’s leading telecommunications business, with the most subscribers and the widest network coverage.

Australia is becoming an increasingly digital country, and this is helping grow the importance of a 5G mobile connection. Telstra’s total subscriber numbers continue rising, and the average revenue per user (ARPU) is growing thanks to price increases.

I expect the company’s mobile revenue and operating profit (EBITDA) to increase in the coming years, which is the key division.

A bonus earnings boost could be the adoption of wireless broadband by households and small businesses – that’s where a broadband connection is powered by 5G rather than the NBN cables. These connections could be significantly more profitable for Telstra than a connection through the NBN.

Pleasingly, the ASX blue-chip share has grown its annual payout in recent years and currently has a grossed-up dividend yield of 5.5%, including franking credits.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is one of Australia’s largest retailers with a number of businesses, including Bunnings, Kmart, Officeworks, Target, and Priceline. WesCEF (chemicals, energy and fertilisers), healthcare businesses, and an industrial and safety division make up most of the rest of the business.

The company’s focus on providing customers with great value has led to Kmart and Bunnings achieving a strong market position in their respective retail sectors. Their scale means they’re able to achieve strong profit margins.

I like the efforts of the company to diversify its earnings, such as creating a healthcare division which now includes Priceline, Clear Skincare, SILK Group (laser clinics), Soul Pattinson Chemist, InstantScripts, and SiSU Health. The company is also working on a lithium mining project.

With ongoing business diversification and Kmart looking to sell more Anko products to international markets (such as North America and the Philippines), I think there is still a lot more growth ahead for this ASX blue-chip share.

Macquarie Group Ltd (ASX: MQG)

Macquarie is one of the largest ASX financial shares, and I think it has the ability to significantly scale in the coming years. It has more earnings diversification than the big four banks, with multiple divisions (beyond just banking) that generate a majority of Macquarie’s income internationally.

It has an asset management division, a local banking segment, investment banking, and a commodities and global markets (CGM) division. It has multiple areas that it can allocate money to generate growth.

Macquarie is rapidly growing its market share in Australia’s banking industry. In the FY26 first-half result, its home loan portfolio reached $160.3 billion, up 13% compared to 31 March 2025. That’s an incredible rise in six months – it has now reached a market share of 6.5%. Banking deposits rose by 12% to $192.5 billion.

Its banking strategies are clearly working because it has a net promoter score (NPS) – customer satisfaction – that’s “significantly above major bank peers”.

I think the ASX blue-chip share has a promising future.

The post These are the top ASX blue-chip shares I’d buy today appeared first on The Motley Fool Australia.

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• 3 reasons Telstra shares are a screaming buy right now!
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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 Macquarie Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie Group and 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.

Last week certainly was a big one for interest rates in Australia.

The release of inflation data from the Australian Bureau of Statistics rocked the market and appeared to bring the curtain down on the Reserve Bank of Australia’s (RBA) rate cut cycle.

But is that actually the case? Let’s see what the economics team at Westpac Banking Corp (ASX: WBC) is saying about the outlook for interest rates.

Where are interest rates going?

The good news for borrowers is that Westpac doesn’t believe that interest rate cuts are over.

Its economists Illiana Jain and Ryan Wells highlight that electricity prices were to blame for the spike and don’t expect this pace of inflation to be sustained in 2026.

As a result, they have retained their view on the outlook for inflation and interest rates in Australia. They said:

It was a historic week in Australia, marked by the ABS publishing the October CPI – the first complete set of monthly inflation data. In the event, it surprised markets materially to the upside on both a headline (3.8%yr) and trimmed mean (3.3%yr) basis, although headline came in marginally lower than our forecast of 3.9%. Base effects around electricity prices, due to government subsidies, was the chief culprit behind the lift in headline inflation.

On the firmer trimmed mean result: around a third of the basket is running above 5%yr, but most of these components are administered prices, known supply shocks or volatile items, downplaying the impact of demand-side strength. Given this, we do not suspect such a pace of inflation to be sustained in 2026, so we retain our view on the outlook for inflation and interest rates.

Westpac’s forecasts

Westpac isn’t expecting the RBA to cut rates at next month’s monetary policy meeting, but it doesn’t think homeowners will have to wait too long for further relief.

According to its weekly economic note, Australia’s oldest bank continues to forecast the cash rate to be taken down from 3.6% to 3.35% by June of next year. After which, it expects a further cut to 3.1% by September 2026.

The even better news for borrowers is that Westpac doesn’t see potential for an interest rate hike any time soon. In fact, the bank’s economics team believes that the cash rate will then remain at 3.1% until at least December 2027.

The post Here’s what Westpac says the RBA will do with interest rates in December 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.

S&P/ASX 200 Index (ASX: XJO) shares closed lower on Friday, down 0.4% to 8,614.1 points.

As November draws to a close, we look back on some of the financial reports released this month and subsequent re-ratings from Morgans.

Here, we focus on five ASX 200 large-cap shares, which are companies that have a market capitalisation above $10 billion.

Let’s take a look.

Commonwealth Bank of Australia (ASX: CBA) 

CBA is the market’s largest ASX 200 financial share with a market capitalisation of $254 billion.

The CBA share price closed at $152.51, down 1.12%, on Friday.

Morgans has a sell rating on CBA shares with a price target of $96.07 following the bank’s 1Q FY26 update.

The broker said:

While the market wasn’t expecting much earnings growth (c.2% for 1H26, and we were more bullish than consensus), growth was weaker than these expectations.

We remain SELL rated on CBA, recommending clients aggressively reduce overweight positions given the risk of poor future investment returns arising from the even-now overvalued share price and low-to-mid single digit EPS/DPS growth outlook.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is the third-largest ASX 200 healthcare share with a market capitalisation of $28 billion.

The Pro Medicus share price closed at $266.54, down 0.6% yesterday.

Morgans upgraded Pro Medicus to an accumulate rating with an unchanged share price target of $290 this month.

PME’s share price has continued to decline since our last update, despite stable fundamentals and a consistent outlook.

This decrease appears to be due to a broader market shift away from high-growth stocks, as there have been no major new contracts or company-specific changes for PME since our previous report.

Upgrade to an ACCUMULATE recommendation, with the view that current prices represent a reasonable opportunity for partial positions, noting ongoing volatility in the name could still yet present further downside.

REA Group Ltd (ASX: REA)

The property portal owner is the second-largest ASX 200 communications share with a market capitalisation of $26 billion.

The REA share price closed at $195.91, down 1.33% on Friday.

Morgans upgraded its rating on REA shares to accumulate but cut its price target from $254 to $247 per share.

After REA’s 1Q FY26 trading update, Morgans commented:

REA’s 1Q26 trading update benefited from a strong yield outcome (+13%), which helped to offset a softer new listings environment in the period (volumes down -8% vs the pcp).

Group revenue was A$429m (+4% on pcp), with EBITDA (ex assoc.) up 5% on pcp to A$254m.

Given REA is trading on ~42x FY26F PE (MorgansE), broadly in line with its 10-year historical average, and now with >10% TSR upside to our valuation we upgrade REA to ACCUMULATE.

Goodman Group (ASX: GMG)

Goodman Group is the leader within the property and real estate investment trust (REIT) sector with a market cap of $60 billion.

The Goodman Group share price closed at $29.68, down 0.17% on Friday.

Morgans is positive on the real estate investment manager with an accumulate rating and share price target of $36.30.

GMG continues to reiterate the immense data centre opportunity ahead – 5GW of potential capacity across key global gateway cities.

However, the longer time to develop these assets is seeing capital intensity increase as data centres form a larger proportion of work-in-progress (WIP).

… we attribute much of the recent share price decline to the shifting narrative around the outlook for hyperscale capex.

To this end, we see the recent share price retracement more as an opportunity retaining our ACCUMULATE rating and $36.30/sh price target.

Resmed CDI (ASX: RMD)

Resmed is another giant of the ASX 200 healthcare sector with a market capitalisation of $36 billion.

The Resmed share price closed at $39.31, up 0.36% yesterday.

Morgans has an accumulate rating and $47.04 share price target on Resmed following the medical device developer’s 1Q FY26 update.

1Q results were solid and broadly in line, with high-single digit revenue growth, ongoing margin expansion, and strong cash flow.

We continue to view fundamentals as sound and the company in a strong position to support future earnings growth, with the upper end of FY26 GPM guidance (61-63%) likely achievable given a strong cadence of new high-margin product releases, an expanding US supply chain, along with continued investment in AI and digital health to drive awareness and increase patient diagnosis.

The post 5 ASX 200 large-cap shares re-rated by Morgans appeared first on The Motley Fool Australia.

More reading

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• These top ASX 200 stocks could rise 25% to 60%
• $20,000 invested in CBA shares a year ago is now worth….

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