If you are wondering which of the Australian share market’s giants you should buy, then read on.

That’s because the team at Morgans has given its verdict on three of the largest shares on the ASX.

Are they buys, holds, or sells? Here’s what the broker is recommending to clients:

CSL Ltd (ASX: CSL)

Morgans thinks that CSL shares could be in the buy zone right now. The broker believes the biotechnology giant’s shares are trading on an unjustifiably low valuation, which has created a buying opportunity for investors.

The broker has a buy rating and $249.51 price target on its shares. It said:

Despite the majority of the business “tracking to plan”, FY26 cc guidance had been downgraded (2-3% at revenue and NPATA mid-points), mainly reflecting continued declines in US influenza vaccination rates, although Chinese government cost containment affecting albumin demand was also flagged. While management is confident it can limit the impact of the latter to 1HFY26 via mitigation measures, ongoing uncertainty in the US influenza vaccine market has seen FY27-28 NPATA growth expectations moderate (to HSD from DD) and delay the demerger of Seqirus (prior FY26).

Although it remains challenging to know when US influenza vaccination rates will stabilise, we believe the risk of a permanently lower base is being over-priced, with Seqirus and Vifor marked down, with even Behring trading below peers and well under its long-term average, which we see as unjustified.

Commonwealth Bank of Australia (ASX: CBA)

Morgans isn’t anywhere near as positive on banking giant Commonwealth Bank of Australia.

The broker thinks that its shares are overvalued and could fall heavily from current levels. It has a sell rating and $96.07 price target on them.

Morgans is highlights that it is concerned that tougher trading conditions and its current valuation mean there is a risk of poor future investment returns. It explains:

The market’s response to a mild earnings miss for a stock priced for perpetual perfection was today’s sharp share price decline. WBC seemed to be a beneficiary. We’ve downgraded FY26-28F EPS and DPS by c.3%. Lower earnings also reduces terminal ROTE and sustainable growth in our DCF valuation. DCF-based target price declines to $96.07/sh.

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.

Rio Tinto Ltd (ASX: RIO)

The team at Morgans was pleased with this mining giant’s strong finish to FY 2025. However, it highlights that this will be hard to repeat in the first quarter of FY 2026.

As a result, it feels that Rio Tinto’s shares are looking overvalued and has retained its trim rating and $140.00 price target on them. It said:

Record 4Q Pilbara production and shipments enabled RIO to land at the lower end of CY25 guidance, recovering from cyclone disruptions back in 1Q. Copper beat estimates by 14% on Escondida and Oyu Tolgoi strength. Simandou achieved first shipment in December as guided. Making hay while the sun shines, with copper and iron ore beats, but a quarter that will be hard to repeat with Pilbara shipments to normalise and Escondida grades set to moderate in CY26. Valuation remains stretched at current levels. We maintain our TRIM rating with target price unchanged at A$140.

The post Buy, hold, sell: CSL, CBA, and Rio Tinto shares appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• The best Australian shares to buy in 2026
• Up 48% from its 2025 low. Here’s why the Rio Tinto share price could soar again this year
• How to build a $50,000 portfolio with ASX 200 shares
• Top 3 ASX 200 blue-chip shares to invest in right now

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. 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.

I believe there are always opportunities to be found on the ASX share market. If someone were to give me $20,000 to invest in what I think could deliver great returns, there are a couple investments I’d make.

I usually like to mention the business Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) when it comes to companies I like in an article like this. It’s one of my favourites, though I’m not expecting a high level of capital growth over the next three to five years, just a satisfactory level.

But, with the two ASX share investments I’m about to highlight, I think they have strong potential for capital significant growth in the coming years with $20,000.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is one of the leading online retailers in the country, selling a vast number of homewares, furniture and home improvement products.

The business recently took a dive after its most recent trading update. Even so, revenue growth in FY26 to the AGM was still up in the high teens in percentage terms.

Temple & Webster is benefiting from the ongoing adoption of online shopping by households. I’m expecting Temple & Webster’s market share to continue climbing in Australia if Australians follow the same e-commerce trends that are being seen in the US and the UK.

The business is poised to reach $1 billion in annual sales in the next few years. This could help deliver operating leverage for the business as fixed costs become a smaller percentage of revenue. Temple & Webster is also utilising more technology and tools to help it increase margins over time.

I think the market is now undervaluing the ASX share, particularly considering its home improvement segment is growing revenue at a strong double-digit rate.  

Global X S&P World Ex Australia GARP ETF (ASX: GARP)

This is one of my favourite exchange-traded funds (ETFs) because of how it finds great, global businesses that are growing at a good pace, priced reasonably and have solid balance sheets.

When you put those elements together, you’re left with a portfolio of excellent businesses that have been performing incredibly and have a lot of room for ongoing returns, in my view.

How does it pick these businesses? It looks at the 3-year sales per share and 3-year earnings per share (EPS) growth figures of the businesses, it looks at a valuation model similar to the price/earnings (P/E) ratio and it considers the quality (with the return on equity (ROE) and debt level) of the business.

While I’m not expecting the GARP ETF to continue its incredible recent returns at an average of close to 20% per year (over the last five years), I do think it can continue to deliver strong performance compared to most ASX shares.

On top of that, I think the GARP ETF provides effective diversification thanks to the 250 holdings being spread across a number of countries and sectors.

The post Where I’d invest $20,000 into ASX shares right now appeared first on The Motley Fool Australia.

More reading

• Why these ASX growth stocks could be much bigger in 5 years
• If a 25-year-old invests $1,250 a month in ASX stocks, here’s what they could have by retirement
• Here are the top 10 ASX 200 shares today
• Looking for double-digit returns? Check out RBC Capital Markets’ picks ahead of reporting season
• 2 ASX ETFs I’d buy aiming for big returns for the next 5 years

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

If you have $10,000 ready to invest, exchange traded funds (ETFs) can make the process far simpler.

They allow investors to gain exposure to themes, indices, regions, or investment styles with a single click of a button. And by combining a small number of complementary ASX ETFs, it is possible to build a diversified portfolio without overcomplicating things.

With that in mind, here are three ASX ETFs that could be worth considering if you were investing $10,000 today.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF provides investors with access to some of the world’s most influential growth companies.

This ASX ETF tracks the Nasdaq 100 Index, which is heavily weighted toward technology and innovation leaders. Its holdings include companies such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), and Tesla (NASDAQ: TSLA).

What makes the Betashares Nasdaq 100 ETF so attractive is its focus on businesses that continue to reinvest heavily in innovation and scale globally. This cements their leadership positions and leaves them well-placed for growth over the long term. Particularly given their exposure to trends such as cloud computing, artificial intelligence, and digital services.

VanEck Video Gaming and Esports ETF (ASX: ESPO)

Another ASX ETF that could be a great option for a $10,000 investment is the VanEck Video Gaming and Esports ETF.

It offers investors a more thematic way to invest in global growth. This ASX ETF focuses on stocks that are involved in video games, esports, and interactive entertainment. Holdings include businesses such as Nvidia, Tencent Holdings (SEHK: 700), Take-Two (NASDAQ: TTWO), and Roblox Corp (NYSE: RBLX).

Gaming continues to grow as both a form of entertainment and a social platform, with revenues increasingly driven by digital downloads, subscriptions, and in-game spending. The VanEck Video Gaming and Esports ETF provides exposure to this trend without relying on the success of a single title or franchise.

This fund was recently recommended by analysts at VanEck.

VanEck MSCI International Value ETF (ASX: VLUE)

Another ASX ETF that could be worth considering for a $10,000 investment is the VanEck MSCI International Value ETF.

This fund invests in international stocks that score highly on valuation metrics such as price-to-earnings and price-to-book ratios. Its holdings change periodically but currently include established global businesses like Qualcomm (NASDAQ: QCOM), Cisco Systems (NASDAQ: CSCO), and Intel (NASDAQ: INTC).

This focus on value can help offset some of the volatility associated with growth-heavy ETFs. Over time, value stocks have tended to perform well during different phases of the market cycle, particularly when investors rotate away from high-growth names.

This means that the VanEck MSCI International Value ETF can provide diversification not just by geography, but by investment style as well. It was also recently recommended by VanEck recently.

The post Where to invest $10,000 in ASX ETFs appeared first on The Motley Fool Australia.

More reading

• Why ASX ETFs are a good place to start for beginner investors
• How to make $24,000 in passive income a year
• 5 ASX ETFs for genuine global exposure
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• 5 excellent ASX ETFs to buy now

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Nasdaq 100 ETF, Cisco Systems, Intel, Microsoft, Nvidia, Qualcomm, Roblox, Take-Two Interactive Software, Tencent, and Tesla. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Fortescue Ltd (ASX: FMG) share price has risen close to 50% since the low point of June 2025, as the chart below shows. The business recently reported its FY26 second-quarter production update, so this is a good time to consider whether the business is a buy.

The ASX mining share told investors that its total shipments of 50.5 million tonnes (mt) in the second quarter of FY26 led to shipments of 100.2mt in the first half of FY26.

Fortescue said that its average revenue was US$93 per dry metric tonne (dmt) of hematite (iron ore) in the second quarter, while the production costs (C1 unit cost) were US$19.1 per wet metric tonne (wmt) in the quarter.

Was this a strong update?

The broker UBS said that Fortescue’s quarterly update was solid, with record iron ore shipments and strong realised prices for its iron ore. However, production costs rose more than expected because of “mine plan/strip ratio [waste material], and timing of production vs sales, but this is expected to reverse” in the second quarter, according to UBS.

The broker noted that Iron Bridge’s ramp-up is progressing, with the three months to December showing more than 1mt of production.

After seeing the update, UBS decided to change its earnings estimates for the next few financial years. The FY26 earnings per share (EPS) forecast was reduced by 1%, the FY27 EPS forecast was increased by 2% and the FY28 EPS projection was hiked by 3%.

Is the Fortescue share price a buy?

UBS said that in terms of the outlook, the iron ore price continues to surprise, but with port stocks supposedly at three-year highs, the Simandou project in Africa ramping up and the muted growth of the Chinese economy, it appears that risks are “tilted to [the] downside”.

The broker thinks that the Iron Bridge ramping up production and stabilising the strip ratio/cost will be important operations.

UBS also suggested that decarbonisation and emergent tailwinds will help lower production costs over the next year or two.  

The broker forecasts that Fortescue could generate US$4 billion of net profit and US$1.31 of earnings per share (EPS) in FY26 and pay an annual dividend of A$1.27 per share.

UBS has a neutral rating on Fortescue shares with a price target of $20.

I think it’s great to see that Fortescue’s earnings can rise in the 2026 financial year, along with a solid dividend. But, I don’t think this is the best time to invest. I’d prefer to buy when the conditions are weak with iron ore (which would likely mean a lower and more attractive Fortescue share price).

The post Is the Fortescue share price a buy right now? appeared first on The Motley Fool Australia.

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• Why this ASX iron ore stock could outperform BHP and Fortescue shares
• Why Fortescue, Generation Development, Northern Star, and Pantoro shares are falling today
• Fortescue shares tumble as cost increase disappoints
• Fortescue: Record iron ore shipments and strong cash flow in H1 FY26
• ASX 200 materials was the best sector of 2025 but it’s time to sell these 3 shares: broker

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.

Gold has surged through the psychologically important US$5,000 per ounce level for the first time in history. The move marks a major milestone in what has already been a powerful rally for the precious metal.

Gold is now up more than 17% over the past month as investors seek safe-haven assets amid rising geopolitical and economic uncertainty.

At the time of writing, spot gold is trading at US$5,074 an ounce after accelerating sharply in recent sessions. While some profit-taking is possible after such a strong run, many analysts believe the underlying forces supporting the rally remain firmly in place.

Why has gold surged past $5,000?

One of the key catalysts has been a renewed flight to safety. Escalating geopolitical tensions, including friction between major global powers and ongoing conflict risks, have unsettled markets and boosted demand for defensive assets.

Central bank demand is another major pillar supporting prices. Over the past few years, central banks have been consistently increasing their gold reserves as part of a broader diversification strategy away from the US dollar.

Interest rate expectations are also playing a crucial role. Markets are increasingly pricing in the possibility of interest rate cuts later this year. Lower rates reduce the opportunity cost of holding non-yielding assets like gold, making bullion more attractive relative to cash and bonds.

On top of that, major investment banks have turned increasingly bullish. Goldman Sachs recently lifted its 2026 gold price target to US$5,400 an ounce, citing strong official sector buying and rising private investment demand. Bank of America has gone even further, suggesting gold could reach US$6,000 by spring 2026 if current trends persist.

What does this mean for ASX gold stocks?

The breakout above US$5,000 has put gold miners firmly back in focus on the ASX. Higher gold prices generally translate into stronger margins and cash flows, particularly for producers with disciplined cost structures.

Northern Star Resources Ltd (ASX: NST) remains one of the most closely watched names in the sector. While the company has faced recent operational challenges and higher costs, the stronger gold price provides an important buffer and improves earnings potential over time.

Evolution Mining Ltd (ASX: EVN) has also benefited from the rally. The miner has focused on balance sheet strength and cost control, positioning it well to take advantage of sustained higher bullion prices. Investor sentiment has improved as margins expand and cash generation strengthens.

That said, not all gold stocks will move in line with the commodity. Operational execution, production consistency, and cost management remain critical, even in a strong gold price environment.

Foolish bottom line

Gold moving above US$5,000 shows how strongly investors are responding to current risks. It reflects a powerful mix of geopolitical risk, central bank buying, and shifting interest rate expectations that could support prices through 2026.

The post Gold has smashed through $5,000. Why analysts think the rally may still have further to run appeared first on The Motley Fool Australia.

More reading

• ASX Sectors to target and avoid in 2026: Expert
• 5 things to watch on the ASX 200 on Tuesday
• Experts call time on these rip-snorting ASX 200 mining shares
• Here are the top 10 ASX 200 shares today
• Why Life360, Northern Star, Objective Corp, and Rox shares are charging higher today

Motley Fool contributor Aaron Teboneras 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.

A new report from Canaccord Genuity/Wilsons Advisory has shed light on the ASX sectors to target and avoid this year. 

The 2026 Market Outlook report said S&P/ASX 200 Index (ASX: XJO) returns are somewhat constrained by the risk of RBA rate hikes. 

This is in addition to elevated valuations, with the index trading on a forward P/E of 18.2x – ~1 standard deviation above its five-year average.

Here were key sectors tipped to outperform and underperform in 2026. 

Remain overweight resources

According to the report, after a multi-year downturn, market sentiment towards the resources sector has improved materially over the past six months. This has been underpinned by broad-based strength in commodity prices. 

Greg Burke, Equity Strategist in the Investment Strategy team at Wilsons Advisory said the he sees scope for a continued metal pricing upgrade cycle. This is alongside a sustained rotation into the resources sector in 2026. 

This is for several key reasons: 

• While macro and geopolitical risks persist, generally positive ‘big picture’ macro trends support expectations of moderate global economic growth and further interest rate cuts from major central banks. 
• Expected USD depreciation relative to the AUD over the course of 2026, driven by a widening US-AU interest rate differential, alongside structural concerns over the US government’s fiscal position.
• Energy transition, re-armament, supply chain onshoring, and AI, driving an uplift in demand for a range of ‘future facing’ metals and minerals.
• Gold and Silver prices to remain supported by safe-haven buying amidst ongoing geopolitical risks. 
• Several key commodities – including Copper, Aluminium and Lithium – face increasingly tight supply/demand balances in 2026.  This should provide support to underlying commodity prices.

Consequently, we remain positive towards the resources sector and continue to advocate for an overweight exposure. Among the major commodities.

According to the report, the preferred exposures across base metals include:

• Sandfire Resources Ltd (ASX: SFR)
• Capstone Copper Corp (ASX: CSC). 

Within precious metals, the report said it remains positive towards:

• Evolution Mining Ltd (ASX: EVN)
• Northern Star Resources Ltd (ASX: NST). 

Canaccord Genuity Group remains cautious towards Iron Ore given expectations of widening oversupply in 2026. 

It does see value in BHP Group Ltd (ASX: BHP) as the lowest cost producer with significant copper exposure. It noted at spot prices BHP would generate more EBITDA from Copper than Iron Ore in FY26e.

Retain exposure to ‘AI Winners’

The report indicated that the AI revolution is a genuine megatrend that is closer to early than late cycle. 

However it did identify the risk of some ‘AI impatience.’

This comes as investors scrutinise the return on capital from the acceleration in Big Tech AI CAPEX in recent years.

The next wave of AI winners is likely to emerge through the adoption and implementation of AI within companies’ operations to improve productivity, alongside the embedding of AI into product suites to enhance functionality, strengthen customer value propositions and expand addressable markets. 

On the ASX, this opportunity is most evident among the major software providers.

The report listed Xero Ltd (ASX: XRO) and Technology One Ltd (ASX: TNE) as AI winners. 

Remain underweight banks

The report said investor interest in the banks is expected to fade. 

Accordingly, we continue to advocate an underweight portfolio exposure to the sector. We expect CommBank’s market leadership to erode over 2026.

Canaccord Genuity prefers ANZ Group Holdings Ltd (ASX: ANZ) and Westpac Banking Corp (ASX: WBC) out of the big four banks. 

According to the report, both have reasonable valuation support, benefit from sector-leading capital positions, and offer the most consensus earnings upside from internal ‘self-help’ initiatives such as technology upgrades, process simplification, and cost-out programs.

The post ASX Sectors to target and avoid in 2026: Expert appeared first on The Motley Fool Australia.

More reading

• Gold has smashed through $5,000. Why analysts think the rally may still have further to run
• 5 things to watch on the ASX 200 on Tuesday
• One ASX 200 giant to buy, one to hold, and one to sell
• Top brokers name 3 ASX shares to buy next week
• Which one of these popular ASX copper stocks is the smarter buy?

Motley Fool contributor Aaron Bell has positions in BHP Group and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended BHP 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.

On Friday, the S&P/ASX 200 Index (ASX: XJO) ended the week with a small gain. The benchmark index rose 0.1% to 8,860.1 points.

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

ASX 200 expected to jump

The Australian share market looks set to rise on Tuesday following a strong start to the week in the United States. According to the latest SPI futures, the ASX 200 is poised to open the day 61 points or 0.7% higher. In late trade on Wall Street, the Dow Jones is up 0.7%, the S&P 500 is up 0.7%, and the Nasdaq is also up 0.7%.

Oil prices fall

It could be a subdued session for ASX 200 energy shares Karoon Energy Ltd (ASX: KAR) and Santos Ltd (ASX: STO) after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 0.8% to US$60.61 a barrel and the Brent crude oil price is down 0.5% to US$65.55 a barrel. This follows a strong gain a day earlier amid output disruptions in U.S. crude-producing regions and tensions between the U.S. and Iran.

BHP and Rio Tinto on watch

BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) shares could have a good session on Tuesday after their London-listed shares charged higher overnight. Both miners finished the session almost 2% higher on the London stock exchange in response to rising commodity prices. At the end of last week, copper rose above US$13,000 on supply worries.

Gold price reaches US$5,000

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Ramelius Resources Ltd (ASX: RMS) could have a good session on Tuesday after the gold price rose again overnight. According to CNBC, the gold futures price is up 1% to US$5,029 an ounce. This was driven by safe haven demand.

Hold Pantoro shares

Pantoro Gold Ltd (ASX: PNR) shares are fully valued according to analysts at Bell Potter. This morning, the broker has retained its hold rating on the gold miner’s shares with an improved price target of $6.05. Bell Potter has concerns that Pantoro could fall short of its guidance. It said: “Heading into 2HFY26, pressure remains on guidance, which sits well outside both production and cost run-rates despite the improved December quarter performance. PNR had previously stated it was running ahead of planned production through the start of the December quarter, so the production miss has been a disappointment to the market.”

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

More reading

• Gold has smashed through $5,000. Why analysts think the rally may still have further to run
• ASX Sectors to target and avoid in 2026: Expert
• Morgans updates ratings on Pantoro Gold and Generation Development shares
• One ASX 200 giant to buy, one to hold, and one to sell
• Up 48% from its 2025 low. Here’s why the Rio Tinto share price could soar again this year

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

It’s fair to say that Australian and global equities look expensive right now. 

The S&P/ASX 200 Index (ASX: XJO) and the S&P 500 Index (SP: .INX) are trading close to all-time highs. 

This can make it feel difficult to identify individual stocks that are undervalued. 

When that’s the case, it can be a good opportunity to turn to income investing. 

Dividend or income investing focuses on owning assets that pay regular cash (like dividends). This means your returns don’t rely entirely on rising share prices. 

When equities look expensive, this strategy is attractive because income provides a steady return and downside cushion. This allows you to stay invested and get paid while waiting for better valuation-driven opportunities.

Here are 3 ASX ETFs income focussed investors might consider. 

Global X S&P/ASX 200 High Dividend ETF (ASX: ZYAU)

This ASX ETF invests in 50 high-dividend stocks from the S&P/ASX 200 Index.

This fund is designed to focus on forward-looking positive dividend yields while ensuring it does not deviate too much from the benchmark in terms of sector weights. 

To achieve this, Global X applies a momentum filter. The filter removes stocks experiencing sharp price falls, helping to reduce the risk of being exposed to dividend traps.

According to a recent report from Global X, the fund is a purely income-focused strategy with limited capital gain upside, making it well-suited to sideways or falling markets while helping investors supplement portfolio returns in a challenging environment.

The ASX ETF provider said it currently has a trailing annual distribution income of ~10% p.a., made up of dividends, franking credits, and options premium yield, and is currently the only index-based Australian share covered call ETF on the market.

Betashares S&P Australian Shares High Yield Etf (ASX: HYLD)

This fund aims to track the performance of an index (before fees and expenses) that provides exposure to a share portfolio of 50 high-yielding Australian companies.

It currently offers a dividend yield of approximately 4.5%. 

According to Betashares, it seeks to improve on traditional high-dividend strategies by aiming to screen out potential ‘dividend traps’ such as companies projected to pay unsustainably high dividend yields, as well as companies that exhibit high levels of volatility relative to their forecast dividend payout.

It includes a similar portfolio to the Global X fund above, with an exposure to some of Australia’s largest banking and mining companies. 

Russell Investments High Dividend Australian Shares ETF (ASX: RDV)

Another strong income ETF to consider is the Russell High Dividend Australian Shares ETF. 

This fund aims to track the Russell Australia High Dividend Index, which comprises Australian blue-chip companies with a bias towards those that have a high expected dividend yield. 

It combines this with companies that meet other characteristics including: 

• a history of paying dividends
• dividend growth
• consistent earnings.

It has a yield of just over 4.5%. 

The post 3 high yield ASX ETFs perfect for income investors appeared first on The Motley Fool Australia.

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

ASX 200 companies have begun releasing quarterly and half-yearly updates ahead of the official reporting season next month.

Among them last week were Pantoro Gold Ltd (ASX: PNR) and Generation Development Group Ltd (ASX: GDG).

Morgans took at a look at their reports and updated their ratings and 12-month share price targets on these ASX 200 shares.

Let’s take a look.

Broker recommends trimming Pantoro Gold shareholdings

ASX 200 gold miner Pantoro Gold released its quarterly production update last week.

Pantoro Gold reported 22,071 ounces of gold production during the December quarter.

Pantoro sold 22,473 ounces at an average realised price of A$6,077 per ounce and an all-in-sustaining-cost (AISC) of A$2,571 per ounce.

The gold miner reported earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $83.6 million for the three months.

Morgans said a 12% quarterly increase in production was not enough to inspire confidence that Pantoro would meet its FY26 guidance.

Pantoro said it expects production to improve and finish the year at the lower end of the guidance range of 100,000 to 110,000 ounces.

Morgans is sceptical, commenting:

On a half yearly basis, PNR have only delivered 39.6% of ounces using the guidance midpoint of 105koz, despite this guidance being reiterated, although is expected to be at the lower end.

We update our model for the result and reiterate our TRIM rating, price target A$5.00ps (previously A$5.02ps).

Amid a 65% rally in the gold price last year, Pantoro Gold was the best performing ASX 200 mining share for growth, rising 220% in 2025.

The Pantoro Gold share price closed at $5.40, up 4.85% on Friday.

Buy rating maintained on ASX 200 financial share

Generation Development Group also released its December quarter results last week.

Generation Development Group is a market leader in retirement and investment solutions, including bonds.

The company posted a record December quarter with total funds under management (FUM) up 36% year-over-year to $34.5 billion.

Morgans appreciated the record investment bond sales but noted that Evidentia FUM came in 2% below Visible Alpha consensus.

The broker said:

In our view, the IB performance made this a positive quarterly result overall, albeit the market clearly wants to see Evidentia FUM growth gain traction.

We lift our GDG FY26F/FY27F EPS by 1%-2% with increases in our IB sales and FUM growth targets offsetting slight downgrades to our Evidentia FUM growth levels.

Morgans lifted its price target on Generation Development shares slightly from $7.95 to $7.97.

The broker added:

We think GDG has a great story, and management has executed well over time.

With the stock trading at a >20% discount to our target price, we maintain our Buy recommendation.

Generation Development Group shares experienced the best capital growth of ASX 200 financial shares in 2025, rising 66%.

The Generation Development Group share price closed at $5.52, down 2.3%, on Friday.

The post Morgans updates ratings on Pantoro Gold and Generation Development shares appeared first on The Motley Fool Australia.

More reading

• ASX gold shares go crazy as gold price rips toward US$5,000 on Friday
• Two ASX 200 stocks to buy after crashing 6-9% yesterday
• Why Fortescue, Generation Development, Northern Star, and Pantoro shares are falling today
• Pantoro shares plunge 10% today. What just happened?
• Generation Development Group posts record December quarter earnings and inflows

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Generation Development Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Getting started with investing can be difficult. New investors are often faced with thousands of shares, endless opinions, and the fear of making an early mistake that puts them off investing altogether.

That is why many people look for a reminder that investing does not need to be complicated to be effective.

For a lot of beginners, ASX exchange traded funds (ETFs) are a sensible place to start.

They reduce the pressure of stock picking

One of the biggest hurdles for new investors is stock selection. Choosing a single ASX share means deciding which business will outperform, which management team will execute best, and which industry will hold up over time.

That is a lot to ask when you are still learning how markets work.

ETFs remove much of that pressure by spreading your investment across many shares at once. Instead of betting on one outcome, you gain exposure to a broad group of businesses, which can make the experience far less stressful in the early stages.

Diversification

Diversification is one of the most important concepts in investing, but it is also one of the hardest to achieve with a small amount of money.

Buying a single ASX share, or even a handful of shares, can leave a portfolio heavily exposed to one sector or theme. ETFs solve this problem by offering instant diversification across industries, regions, or investment styles.

For new investors, this means fewer portfolio swings tied to one ASX share and a smoother introduction to how markets move over time.

ASX ETFs are simple to understand and manage

Complex strategies can make investing harder than it needs to be.

Most ASX ETFs have a clear purpose. Some track the broader market like the Betashares Nasdaq 100 ETF (ASX: NDQ), others focus on global shares like the Vanguard MSCI Index International Shares ETF (ASX: VGS), income, or specific themes. This transparency arguably makes it easier for beginners to understand what they own and why they own it.

And because ETFs trade like shares on the ASX, they are also easy to buy, hold, and track, without needing specialist knowledge or constant decision-making.

They can grow with you as an investor

Starting with ETFs does not mean you have to stick with them forever.

Many investors begin with ETFs to build confidence and understanding, then gradually add individual ASX shares as their knowledge grows. Others continue using ETFs as the core of their portfolio while selectively adding other investments around them.

Either way, ETFs provide a flexible foundation that can adapt as goals and experience change.

Foolish takeaway

Everyone has to start somewhere. ASX ETFs offer new investors a simple, diversified, and low-stress way to begin investing. By reducing the need for stock picking, encouraging long-term thinking, and making diversification accessible, they can help beginners focus on building good habits rather than chasing quick wins.

The post Why ASX ETFs are a good place to start for beginner investors appeared first on The Motley Fool Australia.

More reading

• How to make $24,000 in passive income a year
• 5 ASX ETFs for genuine global exposure
• If a 25-year-old invests $1,250 a month in ASX stocks, here’s what they could have by retirement
• Why I think beginners would love these Vanguard ETFs
• IVV, VGS, VAS: Which ASX ETF produced the better returns in 2025?

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.