With most brokers taking a break over the holiday period, there haven’t been many notes hitting the wires.

But don’t worry because summarised below are three recent recommendations that remain very relevant today. Here’s what brokers are recommending to clients:

Breville Group Ltd (ASX: BRG)

According to a note out of Macquarie, its analysts retained their outperform rating and $39.20 price target on this appliance manufacturer’s shares. The broker highlighted that the Macquarie Kitchen Benchmark and De’Longhi Revenue Index have shown strong growth so far in the third quarter. And given how Breville has outperformed the benchmark by 11% per annum between 2018 and 2024, Macquarie believes this supports its forecast for 10%+ per annum revenue growth between FY 2025 and FY 2028. Key drivers of this are expected to be its coffee segment, new market development, and its investment in new product development. The Breville share price was trading at $29.94 on Friday.

Collins Foods Ltd (ASX: CKF)

A note out of Citi revealed that its analysts retained their buy rating on this KFC restaurant operator’s shares with a trimmed price target of $12.85. This followed the release of a half year result for FY 2026 which came in ahead of the broker’s expectations. In addition, Citi highlighted that management upgraded its profit guidance for the full year. It is now expecting profit growth of mid-to-high teens. This is up from low-to-mid teens previously. And while its sales growth rate is a touch behind expectations, the broker has only reduced its estimates by a touch. The Collins Foods share price was fetching $10.44 at Friday’s close.

WiseTech Global Ltd (ASX: WTC)

Analysts at Macquarie upgraded this logistics solutions technology company’s shares to an outperform rating with a $108.50 price target. According to the note, while Macquarie sees limited risk with its upcoming half year results, it remains cautious on full year results and FY 2027 guidance. Nevertheless, the broker is feeling more confident about WiseTech Global’s business model transition and is bullish on the long term. It believes that the company can and will fundamentally reshape the logistics industry. It also notes that execution risks are commensurate with the size and deliverability of a massive market opportunity, and that its current share price doesn’t reflect this delivery. The WiseTech Global share price ended the week at $68.55.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• 9 ASX All Ords shares upgraded to strong buy ratings for the new year
• Shocking declines: Australian shares that disappointed investors in 2025
• Why WiseTech shares are pushing higher today
• Where to invest $10,000 into ASX 200 shares in January 2026

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

The ASX passive income stock Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) is my leading pick for dividends in 2026.

Regular readers will know I’m a big fan of this business, but I think this is a particularly good time to look at investing in it for passive income.

For starters, the Soul Patts share price has dropped by 16% since September 2025. I get excited when my favourites trade at a discounted price.

The investment conglomerate is already the largest position in my portfolio, and I’m planning to buy more for a few different reasons.

Solid starting dividend yield

If I’m investing in an ASX passive income stock, I’m choosing it with a good initial dividend yield.

I would much rather own Soul Patts shares than have cash in the bank because of the size of the payout and the ability to grow that payment over time.

Based on the FY25 payout, Soul Patts has a grossed-up dividend yield 4%, including franking credits.

Impressively, the business has hiked its annual ordinary dividend every year since 1998, the longest record on the ASX.

I estimate that Soul Patts will pay an annual dividend per share of $1.08, which translates into a potential grossed-up dividend yield of 4%, including franking credits.

I’m very pleased to own an ASX passive income stock that has a clear desire to regularly increase the payout for investors.

Expanding investment portfolio

I like that Soul Patts is an ever-evolving business because of its flexible investment mandate, allowing it to buy and sell assets as it sees new opportunities. This helps it remain future-proof.

Additionally, Soul Patts pays out a majority of the cash flow it receives each year, but it can invest the remainder into new opportunities.

With how Soul Patts is set up, I think it’s a good option for steady compounding as it builds up its portfolio value through new and existing investments.

In recent times, it has allocated money towards areas like electrification, agriculture, swimming schools and more. It has also invested internationally, which I think is a positive development because of the numerous opportunities overseas.

Defensive positioning

Soul Patts has deliberately built its portfolio to be defensive and largely uncorrelated.

Its portfolio being spread across numerous sectors means the company receives cash flow from a variety of sources. This defensive cash flow is integral for paying the consistent and growing passive income.

I like the industries it’s invested in, including telecommunications, resources, building products, industrial properties, financial services, healthcare and more.

I don’t know what’s going to happen in 2026 and beyond, but I think the company’s portfolio has good prospects of delivering good returns in the long-term and it should be able to generate good earnings, even if there’s a downturn, thanks to its defensive portfolio.

The post Here’s my number 1 passive income stock for 2026 appeared first on The Motley Fool Australia.

More reading

• Where I’d invest $10,000 in 2026 in ASX shares aiming to beat the market
• $20,000 in excess savings? Here’s how to try and turn that into a second income in 2026
• 5 ASX shares I want to buy in 2026
• My top 10 ASX stocks to buy for 2026
• The forever portfolio: 3 ASX stocks to buy in 2025 and hold forever

Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are in the market for some blue chip additions to your portfolio, then it could be worth hearing what Morgans is saying about the three listed below.

Let’s see if the broker is bullish on bearish on these big names right now:

Amcor (ASX: AMC)

This packaging giant could be undervalued according to Morgans. Its analysts have put a buy rating and $15.20 price target on its shares.

The broker highlights the low multiples its shares trade on, its positive growth outlook, and its generous dividend yield as reasons to buy. Morgans said:

Our target price is maintained at $15.20 and with a 12-month forecast TSR of 25%, we upgrade our rating to BUY (from ACCUMULATE). Following AMC’s solid 1Q26 result, management’s increased confidence in delivering FY26 synergy targets, and the reaffirmation of FY26 guidance, we believe the outlook remains positive. Trading on 10.4x FY26F PE with a 6.1% yield, we view the valuation as attractive. Potential positive catalysts include meeting or exceeding expectations in upcoming quarterly results and the successful completion of additional asset sales.

ANZ Group Holdings Ltd (ASX: ANZ)

This banking giant’s recent second half results disappointed Morgans.

The broker responded by retaining its trim rating (between hold and sell) on ANZ’s shares with a $33.09 price target. It feels that its shares are expensive after a strong gain. Morgans explains:

Ex $1.1bn of significant items, 2H25 profit declined 7% vs 1H25, with a -3% decline in pre-provision profit (revenue +2%, costs +6%) and a doubling of credit impairment charges. Earnings were materially below market expectations, albeit consensus may not have fully adjusted for the significant items. We have downgraded our FY26-28F cash earnings by 1-2%. However, 12 month target price lifts 29 cps to $33.09/sh due to CET1 capital outperformance in 2H25. We recommend clients TRIM into share price strength, with the share price and implied valuation multiples trading at or around all-time highs.

Macquarie Group Ltd (ASX: MQG)

Finally, Morgans has been looking at this investment bank. It was a little disappointed with its performance in the first half of FY 2026.

In light of this and its fair valuation, the broker has put a hold rating and $215.00 price target on its shares. It commented:

MQG’s 1H26 NPAT (A$1.65bn) was +3% on the pcp, but -9% below company-compiled consensus ($1.81bn). Whilst acknowledging there were some explainable items driving this miss, e.g. increased investment spend in CGM, factors like green asset impairments and non-repeated prior year gains also came into play. Purely on face value, it was another headline result miss for MQG, albeit full year guidance commentary appears relatively unchanged. We make mild downgrades to our MQG FY26 earnings of -2%, with future year earnings slightly lifted (+2% to 4%) on a broad review of our earnings assumptions. Our PT is reduced to ~A$215 (previously ~A$223). We maintain our HOLD recommendation on MQG, believing the stock is currently fair value trading on 19x PE.

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

More reading

• 5 fantastic ASX ETFs for beginners in 2026
• How to retire with a $1 million ASX share portfolio
• 3 ASX dividend shares to buy for passive income in 2026
• Top 5 ASX 200 financial shares of 2025
• Happy New Year: Here are two ASX stocks to watch going into 2026

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

When markets are rising and confidence is high, investing can feel easy.

Almost any decision looks like a good one. It is when uncertainty creeps in, when headlines turn negative, and sentiment becomes fragile that the real work begins.

Economic slowdowns, geopolitical tensions, shifting interest rate expectations, and rapid technological change can all make investors second-guess themselves. In moments like these, the temptation is either to do nothing or to chase whatever feels safest at the time.

Over the years, I’ve found that uncertain periods aren’t a reason to step away from investing. They’re a reason to tighten my focus.

Here’s what I look for in ASX shares when the outlook feels murky.

Businesses that remain relevant

During uncertain times, I’m drawn to ASX shares that people continue to rely on regardless of how the economy is tracking.

These are businesses tied to everyday needs, such as food, healthcare, utilities, infrastructure, and essential services. This might mean ASX shares like CSL Ltd (ASX: CSL) and Woolworths Group Ltd (ASX: WOW). While spending patterns may shift, demand for their products rarely disappears completely.

That resilience makes it far easier to stay invested when markets become volatile.

Strong balance sheets

Uncertainty has a habit of exposing weak balance sheets.

I prefer ASX shares that consistently generate cash and aren’t dependent on constant refinancing or favourable market conditions to survive. Businesses with manageable debt levels, long-term contracts, or recurring revenue streams tend to cope far better when conditions tighten.  An ASX share like Pro Medicus Ltd (ASX: PME) springs to mind immediately.

Importantly, strong balance sheets don’t just reduce risk. They allow companies to keep investing, or even take advantage of opportunities, while competitors are forced to retrench.

Leadership with a long-term mindset

Volatile markets can push management teams into short-term decisions that hurt long-term value.

I pay close attention to how leaders talk about strategy, capital allocation, and growth priorities during tougher periods. The best management teams stay disciplined, even when the market demands quick fixes or aggressive cost-cutting.

When management demonstrates patience and consistency, it gives me confidence the business can navigate uncertainty without undermining its future.

Competitive advantages

Market conditions can change quickly, but genuine competitive advantages tend to persist.

I look for companies with scale, network effects, switching costs, or regulatory protection. These are advantages that aren’t easily eroded when growth slows. These moats help protect margins and market position, even when competition intensifies.

If a company’s success depends entirely on favourable conditions, I would be concerned about holding it for the long term.

Foolish takeaway

Uncertain times don’t demand bold predictions or perfect timing. They demand discipline.

By focusing on essential businesses, financial strength, durable competitive advantages, and realistic valuations, I give myself the best chance of staying invested when it matters most. Rather than reacting to every headline, I aim to own companies I’m comfortable holding, even when the future feels unclear.

The post What I look for in ASX shares when uncertainty is everywhere appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy today
• 5 fantastic ASX ETFs for beginners in 2026
• Are Coles or Woolworths shares a better buy in 2026?
• Best and worst performing ASX 200 sectors of 2025
• Why I plan to buy this incredible ASX 200 stock in 2026

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

This is the perfect time to evaluate where the best opportunities are to invest $1,000, $10,000 or even more into ASX shares.

There are a number of great businesses Aussies can buy that could deliver strong long-term returns such as Guzman Y Gomez Ltd (ASX: GYG), Tuas Ltd (ASX: TUA) and Breville Group Ltd (ASX: BRG). I own shares in each of those names because of my optimistic view of their outlooks.

But, if I had to pick four ideas to invest $10,000 today based on their growth potential and the underlying valuation, I’d spread the money across these names.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

There a few businesses on the ASX that have a long-term track record of delivering good compounding returns over very long stretches of time. Soul Patts is an investment conglomerate, but, unlike Berkshire Hathaway, its success has not been reliant on the investment decisions of just one or two individuals.

Soul Patts has built a diversified portfolio across a variety of sectors including industrial properties, building products, resources, telecommunications, financial services, credit and plenty more.

With the Soul Patts share price down 18% since September 2025, at the time of writing, it looks better value to me. Its portfolio defensive positioning means it doesn’t often fall more than 10%, so this could be an appealing trigger point.

I’m expecting long-term compounding from this ASX share as its existing and future investments grow and deliver value for the company. Expansion of its international investing efforts could be a very pleasing development if that happens in 2026 and beyond – the company has a small part of its portfolio dedicated to international investments.

Temple & Webster Group Ltd (ASX: TPW)

This online retailer of furniture, homewares and home improvements took a big dive towards the end of 2025 after its revenue growth of 18% in FY26 to 20 November 2025 disappointed investors.

But, I think it’s a potential mistake to think the company’s growth prospects have been permanently reduced, so the sell-off could be overdone.

I believe the transition to online shopping will continue, with Australia’s online penetration homewares and furniture at 20% of the overall sector, compared to 29% for the UK and 35% for the US. I think that bodes well for the ASX share as a leader in the e-commerce space.

Pleasingly, certain segments of the business are growing revenue at a faster pace. In the AGM update, it revealed home improvement revenue was up 40% year-over-year, while trade and commercial revenue increased 23% year-over-year.

With revenue continuing to climb at a solid double-digit pace and good prospects for margin improvements in the years ahead, I think this is an underrated ASX share.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The US share market has a lot of great businesses and some Australians may be missing out on investment exposure if they don’t have any money allocated to that market.

The MOAT exchange-traded fund (ETF) allows Aussies to invest in a portfolio of around 50 US businesses that are judged to have economic moats, or competitive advantages, that are expected to (probably) endure for at least 20 years.

There are always good investments out there, but with the local and global share market trading at near all-time highs, it could be prudent to be more selective with what we by.

This exchange-traded fund only invests in the great businesses once Morningstar analysts think the businesses are trading at good value.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne provides enterprise software to local councils, governments, businesses, universities and other education providers.

The TechnologyOne share price has dropped around 30% in the last six months, making this investment an appealing opportunity right now, in my view.

The ASX share is targeting $1 billion of annual recurring revenue (ARR) by FY30, with this being driven by providing better software options for existing clients (and generating more revenue from them) and winning new subscribers. For example, it recently won two London councils, which bodes well for future wins in the UK.

With expectations of growing profit margins and geographic expansion, I think the ASX share has a very promising future and is well worth a buy today with revenue and profit regularly rising at a mid-teen growth rate in percentage terms.

The post Where I’d invest $10,000 in 2026 in ASX shares aiming to beat the market appeared first on The Motley Fool Australia.

More reading

• How to make $20,000 of passive income from ASX shares
• $20,000 in excess savings? Here’s how to try and turn that into a second income in 2026
• Buy, hold, sell: Aristocrat, James Hardie, and TechnologyOne shares
• 10 excellent ASX ETFs to buy in 2026
• 5 ASX shares I want to buy in 2026

Motley Fool contributor Tristan Harrison has positions in Breville, Guzman Y Gomez, Technology One, Temple & Webster Group, Tuas, VanEck Morningstar Wide Moat ETF, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway, Technology One, Temple & Webster Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Berkshire Hathaway, Technology One, Temple & Webster Group, and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Westpac Banking Corp (ASX: WBC) shares have a reputation for dividends. Shareholders or prospective investors may be wondering how much passive income the ASX bank share could pay in 2026 with a sizeable investment.

ASX bank shares tend to trade on a relatively low price/earnings (P/E) ratio and have a fairly generous dividend payout ratio, resulting in a compelling dividend yield for investors.

While banks do have significant capital requirements and may need money to invest in initiatives every so often, it’s not a surprise to me when banks deliver a large dividend payout for investors.

Let’s look at how large the payout could be in 2026.

Analyst forecasts for owners of Westpac shares

The broker UBS currently projects that the ASX bank share could pay a dividend yield of 4.4% in FY26. That projected yield excludes the potential franking credits.

Including franking credits, Westpac could deliver a grossed-up dividend yield of around 6.25%, which is a decent yield and better than what Australians could get from one of its term deposits.

If an investor had $10,000 in Westpac shares today, it could see $440 of cash passive dividend income from the ASX bank share in FY26, or $625 of overall income, including the franking credits.

Is this a good time to invest in the ASX bank share?

Last month, the bank held its AGM and there were two main themes that UBS highlighted.

Firstly, the broker noted that Westpac CEO Anthony Miller is targeting a cost to income (CTI) ratio below the average of its pears and a return on tangible equity (ROTE) above the average of peers by FY29.

Before the AGM, the goal of Westpac was to “improve” those metrics compared to peers. UBS suggested this reveals “improving confidence in UNITE’s implementation”. UNITE is a key, significant initiative by Westpac to improve performance and profitability. This could play an important role for the passive income in the coming years.

UBS wrote about Westpac’s view on UNITE:

UNITE [is] expected to be completed in FY29 and has finalised the scope of 10 work packages with the majority of initiatives on track (8 complete, 51 underway). Current guidance for UNITE spend is expected to increase ~36% to $850-950M in FY26E (~40% of total investment spend FY27-28 and lower in FY29), expensing ~75%.

Questions from the floor were focused on themes that have been discussed in other bank AGMs this year: digital scams, branch closures, sustainability initiatives and efforts as well as AI and job stability were all discussed. Q1 26 update is scheduled to be released on the 13th Feb 2026.

In our view, to achieve these two objectives, strict discipline and consistent progress on Project UNITE are essential.

However, achieving some of the goals could be challenging because UBS expects higher lending growth and higher operating expenditure, primarily due to increased IT costs.

UBS expects owners of Westpac shares to see net profit of $7.26 billion, putting the bank valuation at more than 18x FY26’s estimated earnings.

The post If I invest $10,000 in Westpac shares, how much passive income will I receive in 2026? appeared first on The Motley Fool Australia.

More reading

• Here’s what Westpac says the RBA will do with interest rates in 2026
• Buying ASX shares? Why, and how, you should prepare for higher interest rates in 2026
• BHP, Macquarie, and Westpac: Naughty or nice? 3 popular ASX shares examined
• Why today is a great day to own ANZ and Westpac shares
• 5 things to watch on the ASX 200 on Friday

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

Building wealth through the share market doesn’t require perfect timing or complex strategies. Some of the most successful investors follow a fairly straightforward process and adhere to it through both good times and bad.

As we arrive in 2026, there’s no shortage of uncertainty. But that doesn’t mean the opportunity to build long-term wealth has disappeared. It just means having a clear plan matters more than ever.

Here are five steps I believe are key to building wealth with ASX shares in 2026.

1. Focus on quality

I don’t spend much time trying to forecast where the market is headed next month or even next year. Instead, I focus on owning high-quality businesses like CSL Ltd (ASX: CSL), Commonwealth Bank of Australia (ASX: CBA), and Wesfarmers Ltd (ASX: WES).

These are companies with competitive advantages, strong balance sheets, and products or services that remain relevant regardless of economic conditions. Over time, quality tends to assert itself, even if the journey is volatile.

Trying to predict macro events is hard. Owning great businesses is simpler.

2. Invest regularly

One of the most effective habits for building wealth is consistency.

Rather than waiting for the perfect moment to invest, I prefer to invest regularly. This approach smooths out market volatility and reduces the risk of letting emotions drive decisions.

Markets will fluctuate in 2026. They always do. Consistent investing helps turn that volatility from a source of stress into a long-term advantage.

3. Harness the power of compounding

Compounding is powerful, but it requires patience.

Building meaningful wealth with ASX shares usually happens gradually, then suddenly. Small gains reinvested over long periods can lead to outcomes that surprise even disciplined investors.

The key is giving your investments time, resisting the urge to constantly trade, tinker, or chase short-term trends. The longer quality businesses are allowed to compound, the more powerful the results tend to be.

4. Manage risk

In uncertain markets, risk management matters just as much as return potential.

I pay close attention to balance sheets, diversification, and position sizing. Avoiding permanent capital loss is far more important than maximising returns in any single year.

That also means being honest about risk tolerance. If a portfolio keeps you awake at night, it’s probably taking on too much risk, regardless of potential upside.

5. Stay invested

Finally, building wealth with ASX shares requires staying the course.

Every year brings reasons to be cautious. There will always be headlines predicting crashes, recessions, or bubbles. One day, those warnings will be right. But stepping out of the market too often can be far more damaging than riding through volatility.

I’ve found that staying invested, while continuing to add to high-quality holdings, has been far more effective than trying to sidestep every potential risk.

Foolish Takeaway

Building wealth with ASX shares in 2026 doesn’t require bold forecasts or constant action. It requires discipline, patience, and a focus on quality.

By investing consistently, managing risk, and allowing compounding to work over time, investors give themselves the best chance of achieving long-term success, even in uncertain markets.

The post 5 steps to building wealth with ASX shares in 2026 appeared first on The Motley Fool Australia.

More reading

• 3 strong ASX ETFs that could be top buys in 2026
• How to make $20,000 of passive income from ASX shares
• The pros and cons of buying Zip shares in 2026
• How much superannuation do you really need to retire comfortably in Australia?
• Watch this ugly duckling ASX 200 gold stock in 2026

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

As we arrive in 2026, many investors are thinking about where long-term growth could come from over the next decade.

Exchange-traded funds (ETFs) can be a powerful way to position for those opportunities, offering diversification and exposure to major global themes without the need to pick individual stocks.

With that in mind, here are three ASX ETFs that could be top buys in 2026 for investors focused on long-term growth.

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

The Betashares Global Robotics and Artificial Intelligence ETF could be worth considering in 2026. It gives investors exposure to companies at the forefront of automation, robotics, and artificial intelligence. These technologies are no longer speculative concepts; they are already reshaping the world.

The fund holds a diversified portfolio of global leaders, including NVIDIA Corp (NASDAQ: NVDA), Intuitive Surgical (NASDAQ: ISRG), and ABB Ltd (SWX: ABBN). While all three benefit from the AI and automation boom, NVIDIA stands out as a key enabler. Its chips power everything from data centres to advanced AI models, making it one of the central beneficiaries of accelerating AI adoption worldwide.

The fund was recently recommended by analysts at Betashares.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

Another ASX ETF that could be a buy this year is the Betashares Asia Technology Tigers ETF. It provides investors with access to some of the most influential technology companies across Asia.

This includes exposure to businesses driving innovation in e-commerce, semiconductors, gaming, and artificial intelligence across China, Taiwan, and South Korea.

Key holdings include Tencent Holdings Ltd (SEHK: 700), Taiwan Semiconductor Manufacturing Co (NYSE: TSM), PDD Holdings (NASDAQ: PDD), and Alibaba Group Holding Ltd (NYSE: BABA). Among these, TSMC plays a particularly critical role. As the world’s leading semiconductor foundry, it manufactures advanced chips used by many of the biggest global technology companies, making it a foundational player in the digital economy.

As Asia’s middle class continues to expand and digital adoption accelerates across the region, the Betashares Asia Technology Tigers ETF appears well-placed for the future. It was also recently recommended by Betashares.

Betashares MSCI Emerging Markets Complex ETF (ASX: BEMG)

A final ASX ETF that could be a top pick for 2026 is the Betashares MSCI Emerging Markets Complex ETF. It offers broad exposure to large and mid-cap companies across emerging economies. These markets are often driven by powerful tailwinds such as population growth, urbanisation, and rising consumer demand.

The ETF provides exposure to over 1,000 stocks across 24 emerging market countries, with major holdings including SK Hynix Inc, Xiaomi (SEHK: 1810), and Samsung Electronics Co Ltd (KRX: 005930).

For investors looking to diversify beyond developed economies and tap into faster-growing regions, the Betashares MSCI Emerging Markets Complex ETF could play a valuable role in a long-term portfolio. Betashares recently recommended this one to investors as well.

The post 3 strong ASX ETFs that could be top buys in 2026 appeared first on The Motley Fool Australia.

More reading

• 2 no-brainer AI stocks to buy hand over fist for 2026
• 5 fantastic ASX ETFs for beginners in 2026
• Own Betashares ASX ETFs? Here’s your next dividend
• What are the 2 top artificial intelligence (AI) stocks to buy right now?
• 10 excellent ASX ETFs to buy in 2026

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 Abb, Intuitive Surgical, Nvidia, Taiwan Semiconductor Manufacturing, and Tencent. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alibaba Group and Xiaomi. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When people talk about passive income from shares, the conversation often jumps straight to dividend yields and payout schedules.

But that misses the bigger picture. The most reliable way to generate meaningful, sustainable passive income from ASX shares is not to chase income first.

Here’s one way to think about building a $20,000 annual passive income stream.

Start thinking in ownership

Passive income from ASX shares is simply your share of business profits. The more high-quality businesses you own, the larger your slice becomes.

Instead of looking for the biggest dividend yields today, a better starting point is looking to build ownership in great businesses.

For most investors, this means spending years focusing on portfolio growth, not income. High-quality ASX shares reinvesting profits tend to compound faster than high-yield stocks that distribute most of their cash.

How much do you need

To generate $20,000 a year in passive income at an average 5% yield, you need a portfolio worth $400,000.

That number can sound intimidating, but it needn’t be.

In the accumulation phase, most investors are better off owning a mix of growth-focused ASX shares and broad ETFs.

Reinvesting all dividends during this phase quietly accelerates compounding. That’s because you are buying more shares without adding new capital, which increases future income potential without effort.

Over 10 to 20 years, this approach can dramatically increase the size of the portfolio compared to income-first strategies.

Which ASX shares?

Investors may want to focus on ASX shares that have strong business models and positive long term growth outlooks.

Companies that tick these boxes include Goodman Group (ASX: GMG), ResMed Inc. (ASX: RMD), TechnologyOne Ltd (ASX: TNE), and Xero Ltd (ASX: XRO).

They all have the potential to deliver strong returns over the next decade (and beyond), which could help Aussie investors build up the capital they need to then start generating meaningful passive income.

Speaking of which, starting at zero, if you were able to invest $500 a month into ASX shares, you would arrive at a $400,000 portfolio in 21 years if you averaged a 10% per annum return.

If you want to get there sooner, increase your monthly contributions. $1,000 a month would take 15 years, all else equal.

Foolish takeaway

The real secret to earning $20,000 of passive income from ASX shares is not finding the perfect dividend stock. It is building a portfolio large enough that average yields do the work for you.

Once you reach that point, income generation will be surprisingly easy.

The post How to make $20,000 of passive income from ASX shares appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: CBA, REA Group, and Xero shares
• 3 Australian shares with bullish catalysts heading into 2026
• Buy, hold, sell: Aristocrat, James Hardie, and TechnologyOne shares
• How to retire with a $1 million ASX share portfolio
• 5 ASX shares I want to buy in 2026

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

The Zip Co Ltd (ASX: ZIP) share price has seen enormous volatility since the beginning of April 2025, as the chart below shows. I think it’s a good idea to consider whether the buy now, pay later business is a good investment right now or not.

Zip has a sizeable presence in both ANZ and the US, which are two of the best places for the business to operate, in my view.

Zip has made a lot of progress over the years, and its potential future growth could be one of the best reasons to consider the business, according to the broker UBS.

Positives about Zip shares

The latest update from the business was its FY26 first quarter which showed top-line momentum in the US and a strong cash operating profit (EBTDA) margin outcome, according to UBS.

The broker noted that Zip’s US total transaction value (TTV) and revenue accelerated further – in US dollar terms, it grew TTV by 47%, up from 45% growth in the fourth quarter of 2025. This was supported by customer growth of 12% year-over-year, prompting Zip to upgrade its estimate for US TTV growth to more than 40%, up from growth of more than 35%.

UBS suggested the strength in the first quarter of FY26 would mean a strong second quarter, considering the larger customer base and “continued proof of engagement” through the metrics of spending per customer, higher average order value (AOV) and frequency. That bodes well for Zip shares.

The broker says that ANZ metrics – portfolio yield, excess spread and net transaction margin (NTM) – are strong and UBS is predicting a catch-up of receivables growth from here.

Negatives

On the negative side of things, Zip saw its operating expenditure growth accelerate to 18% in the first quarter of FY26.

The buy now, pay later business is also seeing its US loss rate increase. Even so, UBS said that “a pickup in this metric makes sense given greater growth from new customers (vs existing and re-activated dormant customer) and is still at a comfortable level balancing growth and profitability.”

There’s also a general question of whether some investors may want to own part of a buy now, pay later business. I also think it could be somewhat vulnerable in the next financial recession in Australia and the US, considering how many customers it has now and how some payments could be delayed.

Is the Zip share price a buy?

UBS thinks so, with a buy rating on the company. The broker’s price target on the buy now, pay later business is $5.40. That implies a possible rise of 64%, which would be a very compelling return over the next year, if that happened.

The post The pros and cons of buying Zip shares in 2026 appeared first on The Motley Fool Australia.

More reading

• Up 179% since April, why it’s not too late to buy Zip shares for 2026
• The best Australian stocks to buy in 2026
• Top brokers name 3 ASX shares to buy next week
• 2 great ASX shares to buy for 2026: experts
• Here are the top 10 ASX 200 shares today

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