The Australian share market is home to a number of ASX growth stocks that could be destined to grow materially over the next five years.

But which ones could be buys right now? Here are five that analysts currently rate as buys:

Lovisa Holdings Ltd (ASX: LOV)

The first ASX growth stock that could be a buy is Lovisa. Lovisa has built one of the most repeatable growth models on the ASX. Its fast-fashion jewellery concept translates well across markets, allowing the company to roll out new stores using a proven format supported by centralised sourcing and disciplined inventory management.

While the company now has over 1,000 stores globally, with many markets still underpenetrated, it still has a significant expansion opportunity. So, if Lovisa continues executing its rollout strategy as it has to date, the business could be significantly larger in five years without needing to change its playbook.

Morgans is bullish and has a buy rating and $40.00 price target on its shares.

NextDC Ltd (ASX: NXT)

Another ASX growth stock that could be a buy according to analysts is NextDC. It operates behind the scenes of the digital economy, providing data centre infrastructure that supports cloud computing, artificial intelligence, enterprise IT, and increasingly data-intensive workloads. Demand for this infrastructure is driven by long-term digitisation trends rather than short-term economic conditions.

Looking five years ahead, the volume of data being created and processed is likely to be far higher than it is today. If NextDC continues expanding capacity in line with demand, the scale of the business could look very different by the end of the decade.

UBS is bullish on its outlook and has a buy rating and $21.85 price target on its shares.

Temple & Webster Group Ltd (ASX: TPW)

A final ASX growth share to consider is Temple & Webster.

As an online-only furniture and homewares retailer, Temple & Webster benefits from the gradual shift of consumer spending toward ecommerce. Australian furniture remains a category with relatively low online penetration compared to other western markets. This suggests that there’s still plenty of structural growth ahead.

The company’s asset-light model allows it to scale without the costs associated with physical stores or large inventories. As volumes grow, improvements in logistics, supplier relationships, and brand awareness can drive operating leverage.

Over a five-year timeframe, even steady gains in online adoption could see Temple & Webster operating at a much larger scale than it does today.

Bell Potter currently has a buy rating and $19.50 price target on its shares.

The post Why these ASX growth stocks could be much bigger in 5 years appeared first on The Motley Fool Australia.

More reading

• 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
• As reporting season looms, where will the market head next and what should you be buying?
• How to turn ASX dividends into long-term wealth

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

There are plenty of giants to choose from on the ASX 200 index, but which ones could be buys, holds, or sells?

Let’s take a look at three that analysts have just given their verdicts on, courtesy of The Bull. Here’s what they are saying about them:

ANZ Group Holdings Ltd (ASX: ANZ)

The team at Sanlam Private Wealth thinks that investors should be selling big four bank ANZ.

It notes that the ASX 200 giant’s shares have rebounded strongly since the release of its 2030 strategy. It feels this leaves ANZ’s shares trading at a premium with no guarantee that its strategy will be a success. It said:

Investors responded positively after the bank unveiled its 2030 strategy in late 2025. The shares rose from $32.67 on September 24, 2025 to close at $38.85 on November 12. Given ANZ was the cheapest major bank in the sector with the highest yield, the bounce was understandable. The shares were trading at $36.34 on January 22, 2026.

The 2030 strategy included ceasing the $800 million share buy-back and accelerating delivery of the ANZ Plus digital front end to all retail and business customers. Reducing duplication and simplifying the bank is part of the plan. We believe ANZ is trading at a premium given the early stages of an ambitious strategy. We would be inclined to lock in some profits at these levels.

BHP Group Ltd (ASX: BHP)

One ASX 200 giant that Sanlam Private Wealth is positive on is BHP. It has named the Big Australian as a buy this week.

The private wealth company thinks that BHP is well-placed to benefit from probable US interest rate cuts in 2026. It explains:

The resources upgrade cycle continues to unfold as global growth conditions strengthen into 2026. Expected US interest rate cuts should stimulate global growth and put downward pressure on the US dollar. Commodity markets are already tight in terms of adequate supply, and this is already pushing mining stocks higher. This is a global theme. BHP fits the bill as global investors are drawn to earnings upgrades driving share price gains. Also, investors are exposed to a currency gain if the Australian dollar strengthens during 2026.

Macquarie Group Ltd (ASX: MQG)

Finally, over at Red Leaf Securities, its analysts have put a hold rating on this investment bank’s shares.

It believes Macquarie is lacking any near term catalysts to justify buying its shares at current levels. Instead, Red Leaf thinks investors should wait for a more attractive entry point. It explains:

Macquarie continues to deliver strong diversified earnings across banking, asset management and commodities, but most of its quality is reflected in recent share prices. The balance sheet is robust and capital management is disciplined. But cyclical exposures, particularly in capital markets and commodity-linked divisions, leave limited upside in the near term, in our view.

For existing shareholders, Macquarie remains a high quality core holding, offering attractive dividends and resilient earnings through cycles. However, we can’t immediately identify any catalysts justifying aggressive accumulation. Maintaining positions while awaiting potentially more attractive entry points is the prudent strategy.

The post One ASX 200 giant to buy, one to hold, and one to sell appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• Forget BHP shares! Buy these ASX dividend shares instead for passive income
• 5 fantastic ASX shares to buy for an SMSF
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• Why this ASX iron ore stock could outperform BHP and Fortescue shares

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 Macquarie Group. 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.

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

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

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

• Domino’s Pizza Enterprises Ltd (ASX: DMP) has become the most shorted ASX share with short interest of 17.3%. Though, this is down slightly week on week. Short sellers appear to be doubting that this pizza chain operator’s turnaround strategy will be a success.
• Boss Energy Ltd (ASX: BOE) has seen its short interest reduce materially to 16.3%. This uranium producer’s shares have rallied strongly since the start of the year amid optimism over uranium demand and prices.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.8%, which is up week on week. This taco and burrito seller’s performance has been softer than expected, especially in the United States.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest jump to 13%. This wine giant is facing distributor uncertainty in the United States and unfavourable consumer trends.
• IDP Education Ltd (ASX: IEL) has 12.3% of its shares held short, which is up week on week. Student visa changes in key markets are negatively impacting the company’s performance and outlook.
• Paladin Energy Ltd (ASX: PDN) has short interest of 11.9%, which is down week on week again. This uranium producer’s shares hit a 52-week high last week, much to the dismay of short sellers.
• Polynovo Ltd (ASX: PNV) has short interest of 11.7%, which is up since last week. This may be due to concerns over this medical device company’s valuation.
• Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 11.3%, which is flat week on week. Short sellers may believe that this radiopharmaceuticals company could struggle with its FDA approvals and increased regulatory scrutiny.
• Flight Centre Travel Group Ltd (ASX: FLT) is back in the top ten with short interest of 11.1%. This may be due to concerns over the travel agent’s revenue margin outlook.
• PWR Holdings Ltd (ASX: PWH) has short interest of 10.7%, which is down week on week again. Short sellers have been closing positions after this advanced cooling products and solutions provider’s shares jumped to a 52-week high thanks to a defence contract win.

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

More reading

• An Australian energy stock poised for major growth in 2026
• Guzman Y Gomez shares push higher on Uber deal
• Guzman y Gomez teams up exclusively with Uber Eats for Australian delivery
• 3 ASX 200 shares I would buy before February
• Here are the top 10 ASX 200 shares today

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

If you are looking for some of the best Australian shares to buy for when the market reopens, then read on!

Listed below are three shares that could be top picks for investors after the public holiday.

CSL Ltd (ASX: CSL)

While recent years have been underwhelming, CSL continues to set the standard for Australian shares operating on a global stage.

The biotech giant’s plasma collection network and biotechnology operations form a system that is extraordinarily difficult to replicate. This creates a natural barrier to competition and supports long-term demand for its therapies, which are tied to essential healthcare needs rather than economic cycles.

What often gets overlooked is how CSL reinvests in its business. Capacity expansion, research and development, and operational efficiency remain ongoing priorities, even when conditions are less supportive. This leaves it well-positioned for growth once the headwinds it has been facing ease.

REA Group Ltd (ASX: REA)

Another Australian share that could be a best buy is REA Group.

This real estate listings company’s digital platforms are deeply embedded in how buyers, sellers, and agents interact, creating strong network effects that reinforce its market position. Even when transaction volumes fluctuate, the relevance of REA’s platforms remains intact.

You only need to look at its numbers to see this. In the first quarter of FY 2026, it boasted 147.9 million average monthly visits. This is a whopping 111.4 million more monthly visits than the nearest competitor on average.

It also highlighted that 12.6 million people visited its site each month on average, with 6.7 million people exclusively using realestate.com.au.

This domination gives it significant pricing power and cements its position as the place to go for property in Australia. So, with its shares down meaningfully from recent highs, now could be an opportune time to invest.

WiseTech Global Ltd (ASX: WTC)

A final Australian share that could be a great option for investors is logistics solutions technology company WiseTech Global.

Its software platform plays a critical role in freight forwarding and logistics, handling complex regulatory, operational, and data requirements across international supply chains. Once implemented, WiseTech’s systems are deeply embedded in customer workflows, making them difficult to replace.

Recent controversies have drawn attention away from the underlying business, which continues to benefit from increasing supply chain complexity and globalisation of trade. This has weighed on its share price and arguably created an incredible buying opportunity for patient investors.

The post The best Australian shares to buy in 2026 appeared first on The Motley Fool Australia.

More reading

• Forget PLS shares! This ASX growth stock is tipped to rise 60% by 2027
• How to build a $50,000 portfolio with ASX 200 shares
• Why Wisetech could be worth watching after a rough year
•  Why are WiseTech shares still falling?
• 2 beaten-down ASX blue-chip tech shares I’d buy today

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

At this time of year, it’s great to think about some of the best Aussie stocks we can buy for the rest of 2026.

There is a lot of excitement in the technology space right now, so I think it’s wise to be more thoughtful about the investments we make in that industry.

Instead, I’m going to look at two Aussie stocks that give exposure to some of the areas in which Australia’s economy is a leader.

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

Soul Patts, as this business is regularly called, is an investment house that’s invested across numerous sectors.

Agriculture and resources are two major elements of the Australian economy – they are also two significant parts of the Aussie stock’s investment portfolio. They offer very different profit profiles, giving Soul Patts largely uncorrelated and diversified earnings.

It’s also invested in industries such as telecommunications, swimming schools (another activity Australia is known for), financial services, credit, and more.

Soul Patts is already 120 years old; its ability to invest in different sectors can help it thrive for decades to come. There are some businesses I’m less confident about their long-term success, given how the world is changing.

A large portion of the company’s earnings comes from operations in Australia, making it a very Aussie stock. I think this business can continue outperforming the S&P/ASX 200 Index (ASX: XJO) over the long term as the investment team adjusts the portfolio accordingly.

As a bonus, it has increased its annual regular payout every year for close to three decades.

Breville Group Ltd (ASX: BRG)

There are not many things Australians seemingly care about more than coffee. Breville is one of the world’s leading coffee machine businesses with a number of brands including Breville, Sage, Lelit and Baratza. It also has its own coffee bean business called Beanz.

Breville is one of the success stories of the ASX, having expanded into a number of markets in the northern hemisphere, including the US.

It’s the scale of its success in the US that has caused volatility in Breville’s share price over the last 12 months due to its exposure to US tariff changes. It’s down 17.5% in the past year, at the time of writing.

The company is working hard to shift its US-market production out of China and into other countries, such as Mexico. This should help reduce the risk of tariff impacts.

Breville is expanding its growth potential by tapping markets like China and South Korea, where coffee has significant room to grow.

The forecast on Commsec suggests the Aussie stock’s earnings per share (EPS) could rise to $1.05 in FY27, putting it at under 30x FY27’s estimated earnings.

The post Here are my top Aussie stocks to buy for 2026 appeared first on The Motley Fool Australia.

More reading

• Here’s how you could turn the stock market into a $1,000 monthly passive income machine
• 5 fantastic ASX shares to buy for an SMSF
• 3 outstanding ASX shares the market seems to be ignoring
• 5 ASX stocks to hold for the next decade
• 1 Australian stock down 14% that’s pure long-term perfection

Motley Fool contributor Tristan Harrison has positions in Breville 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 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.

The Rio Tinto Ltd (ASX: RIO) share price has staged a strong recovery, rising around 48% since hitting a low of $100.75 in June 2025. The rebound reflects renewed investor interest in large mining stocks with strong cash flows and exposure to rising commodity prices.

With copper and silver prices pushing to fresh record highs, there could be further upside ahead for Rio shares in 2026.

Copper and silver prices are exploding

According to Trading Economics, silver prices have surged to around US$99 per ounce, hitting new all-time highs. Over the past 12 months, silver is up more than 220%, driven by a mix of investor demand and industrial use.

Silver is critical for solar panels, electronics, and clean energy systems. It also attracts investors during periods of global uncertainty, which has helped fuel the latest rally.

Copper prices are also sitting near record levels. Copper recently traded around US$5.80 per pound, up roughly 35% over the past year. Demand is being driven by electric vehicles, power grids, renewable energy projects, and data centres.

Many analysts believe the world is heading into a multi-year copper shortage as new supply struggles to keep pace with rising demand. Years of underinvestment in new mines, longer approval timelines, and rising production costs are all tightening the market.

Rio Tinto is delivering strong production growth

Rio’s latest update highlights solid performance across its major operations.

Copper production rose 11% in 2025 to 883,000 tonnes, beating the company’s guidance range. Copper is now making up a growing share of Rio’s earnings, supported by rising demand from electrification and power infrastructure.

Rio also delivered record iron ore shipments of 89.8 million tonnes from its Pilbara operations in the December quarter. Full-year Pilbara shipments totalled over 331 million tonnes, supported by strong operating performance and improved weather conditions.

The company reported record lithium production, reflecting increased capacity and growing exposure to battery metals used in electric vehicles and energy storage.

Aluminium and bauxite operations were steady, with bauxite production exceeding 55 million tonnes for the year and aluminium output holding firm.

Why the market is warming to Rio Tinto again

Momentum is building around Rio Tinto as investors return to large, diversified miners with strong cash flows and exposure to key future-facing commodities.

Copper, lithium, aluminium, and silver are all essential for electrification and the global energy transition. Governments are prioritising secure supply chains for these materials, especially in the US and Europe.

Ongoing geopolitical uncertainty is also supporting demand for commodities. With strong cash flows, Rio is well placed to keep paying dividends while funding future growth.

Foolish takeaway

The Rio Tinto share price is already up 48% from its 2025 low, but booming copper and silver prices could drive another leg higher.

Rio’s upcoming full-year results will be closely watched for confirmation that this momentum can continue.

The post Up 48% from its 2025 low. Here’s why the Rio Tinto share price could soar again this year appeared first on The Motley Fool Australia.

More reading

• Top 3 ASX 200 blue-chip shares to invest in right now
• Buy, hold, sell: Evolution Mining, Hub24, and Rio Tinto shares
• Rio Tinto shares charge higher on strong FY25 update
• Rio Tinto posts strong 2025 Q4 production results
• 5 things to watch on the ASX 200 on Wednesday

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.

The ASX stock market can be a gateway to unlock a significant monthly passive income for investors.

Many investments available on the ASX (and internationally) pay dividends, as they share profits with shareholders each year. With shares, you don’t need to deal with tenants, leasing agents or repairs.

It’s easy to take a back seat with shares; that’s why I think it’s the best form of passive income.

Businesses aren’t like term deposits – they can grow earnings, increase dividends, and increase share prices. Some businesses on the stock market can provide a better yield than savings accounts straight away.

The power of a dividend yield

If we put $1,000 into a bank account earning 4% interest, we’d expect to earn $40 in annual income.

Investing in stocks comes with different dividend yields. The higher the dividend yield, the more money investors will get. The highest yields (of 10% or more) aren’t necessarily safer, though.

Telstra Group Ltd (ASX: TLS) is an example of a good ASX dividend share. Telstra’s annual payout last year was 19 cents per share, which translates into a 4% cash dividend yield. Franking credits boost the after-tax effect of receiving the dividend (often leading to tax refunds). Including franking credits, Telstra’s FY25 payout equated to a grossed-up dividend yield of 5.75%.

At the current Telstra share price, a $1,000 investment would yield $57.50 in passive income in FY25.

I think there’s a good chance Telstra will increase its payout to 20 cents per share in FY26, which would yield just over $60 of grossed-up passive income (including franking credits). That’s an increase of around 5%.

Savings in the bank account don’t grow like that. You can leave the cash in there (and not utilise the interest), but investors can also reinvest their dividends to accelerate wealth-building.

It also shows how making a $1,000 investment can snowball into more passive income for investors.

There’s more to the stock market than just Telstra shares, of course.

The stock market is a money-making machine for passive income

Some ASX-listed businesses have a record of growing their dividends every year for 20 years in a row, like Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) and APA Group (ASX: APA).

There are some investments with very high dividend yields (over 9%) that haven’t given any payout reductions (though payout growth is slow), such as Shaver Shop Group Ltd (ASX: SSG) and WAM Microcap Ltd (ASX: WMI).

There are a number of other ASX dividend shares that are appealing as passive income options like MFF Capital Investments Ltd (ASX: MFF), L1 Long Short Fund Ltd (ASX: LSF), Pinnacle Investment Management Group Ltd (ASX: PNI), Universal Store Holdings Ltd (ASX: UNI), Charter Hall Long WALE REIT (ASX: CLW), Centuria Industrial REIT (ASX: CIP), Rural Funds Group (ASX: RFF) and WCM Quality Global Growth Fund (ASX: WCMQ).

Many of the above investments offer a dividend yield of 5% or more, which is appealing in my book.

Receiving $12,000 annually (or $1,000 per month) at a dividend yield of 5% would require a $240,000 portfolio.

That portfolio goal may sound like a lot, but if an investor invested $1,500 per month and their portfolio returned an average of 10% per year (the long-term average of the share market), it would only take around nine years to reach $240,000. It just takes investing in the right stocks.

The post Here’s how you could turn the stock market into a $1,000 monthly passive income machine appeared first on The Motley Fool Australia.

More reading

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• This 9% yield is one I’m comfortable holding for the long term
• How to make $24,000 in passive income a year

Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund, Mff Capital Investments, Pinnacle Investment Management Group, Rural Funds Group, Wam Microcap, 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 Pinnacle Investment Management Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Apa Group, Pinnacle Investment Management Group, Rural Funds Group, Telstra Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Mff Capital Investments, Shaver Shop Group, and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If I were sitting on $3,000 and wanted to put it to work sensibly, I wouldn’t overthink it. 

I’d be looking for broad diversification, low fees, and exposures that I could happily hold through market ups and downs without constantly second-guessing myself.

That is where Vanguard exchange-traded funds (ETFs) really shine. They let you build a serious long-term portfolio without needing a huge starting balance or perfect timing.

These are three Vanguard ETFs I would personally buy with $3,000 today, and why.

Vanguard FTSE Asia Ex-Japan Shares Index ETF (ASX: VAE)

Asia is one of the most important growth engines in the global economy, yet it is often underrepresented in Australian portfolios. If I only owned Australian and US shares, this would be one of the first gaps I would want to address.

The Vanguard FTSE Asia Ex-Japan Shares Index ETF provides exposure to major Asian economies, including China, India, Taiwan, and South Korea. These are markets tied to long-term trends like rising incomes, technology adoption, and global manufacturing.

It is unlikely to be the smoothest ride, and I fully expect periods of volatility. But if I am investing with a long-term mindset, I am comfortable with that trade-off. For me, the VAE ETF is about positioning for where global growth is likely to come from over the next decade, not the next quarter.

Vanguard Australian Shares Index ETF (ASX: VAS)

If I could own only one ETF on the ASX, the Vanguard Australian Shares Index ETF would be near the top of my list.

It gives instant exposure to the Australian share market, spreads risk across hundreds of stocks, and delivers a reliable stream of income thanks to Australia’s dividend culture. I like that it includes the banks, healthcare leaders, and resource companies that dominate our market, without having to pick winners within each sector.

For a smaller portfolio, I see the VAS ETF as a strong holding. It is not exciting, but it does not need to be. Its job is to provide steady exposure to the local market and let compounding work its magic over time.

Vanguard Global Value Equity Active ETF (ASX: VVLU)

The Vanguard Global Value Equity Active ETF is the ETF I would use to bring some balance to the portfolio.

A lot of global indices are heavily skewed towards expensive growth stocks. The VVLU ETF takes a different approach by actively tilting towards companies that look cheap relative to their fundamentals, using Vanguard’s quantitative model.

What I like about this ETF is that it still offers broad global diversification, but with a clear value bias. It includes companies across a wide range of sectors and markets, which helps smooth out some of the concentration risk seen in traditional global ETFs.

I see the Vanguard Global Value Equity Active ETF as a patient investor’s ETF. It may not always lead the market in the short term, but over a full cycle, I think it can play an important role in a diversified portfolio.

Why I like this mix

If I put these three ETFs together, I get exposure to Australia, Asia, and developed global markets, with a blend of growth and value styles. That is a level of diversification I would feel comfortable holding through both good markets and bad ones.

With $3,000, the goal is not to be clever. It is to start building habits, stay invested, and give your money the best chance to grow over time. For me, these Vanguard ETFs tick all of those boxes.

The post 3 excellent Vanguard ETFs I would buy with $3,000 appeared first on The Motley Fool Australia.

More reading

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• How I would invest $3,000 in ASX shares if I were starting today
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• 3 global ETFs I’d hold for the next decade

Motley Fool contributor Grace Alvino has positions in Vanguard Australian Shares Index ETF. 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.

Wesfarmers Ltd (ASX: WES) shares are rarely cheap in an absolute sense. It is one of the highest-quality conglomerates on the ASX, with exposure to defensive retail, improving discretionary earnings, and long-term growth options through its newer businesses.

That said, if I were looking to add a high-quality core holding today, these are the key reasons Wesfarmers would be on my radar.

Recent weakness makes an attractive entry point for Wesfarmers shares

Wesfarmers shares are trading at around $82.98 at the time of writing, which is roughly 13% below their recent high. For a business that has historically traded at a premium due to its quality and reliability, that pullback matters.

The decline has not been driven by any structural deterioration in the business. Instead, it reflects broader market volatility, some caution around consumer spending, and profit-taking after a strong run. For long-term investors, this kind of weakness has often proved to be an opportunity rather than a warning sign.

While this still doesn’t suddenly make Wesfarmers shares cheap, I think the recent pullback improves the risk-reward balance compared to buying near peak optimism.

Earnings growth remains solid and diversified

Wesfarmers’ strength lies in the diversity and resilience of its earnings base. Bunnings continues to be a standout asset with strong market positioning and long-term growth potential. Kmart has proven its ability to gain share even in tougher consumer environments, while Target’s restructuring has reduced drag on group earnings.

Beyond retail, the company’s exposure to chemicals, fertilisers, and industrial safety adds further balance. Over time, its lithium investment also provides optionality that the market may increasingly value as production ramps up.

According to CommSec, consensus estimates point to earnings per share of $2.52 in FY26 and $2.75 in FY27. This continued steady growth is a key part of the Wesfarmers appeal, in my opinion.

A premium valuation that is justified by quality

At the time of writing, Wesfarmers is trading on a forward price-to-earnings (P/E) ratio of around 33 times FY26’s earnings and 30 times FY27’s earnings. That is clearly above the market average.

However, Wesfarmers has rarely traded at market multiples. Its defensive characteristics, strong balance sheet, disciplined capital allocation, and ability to compound earnings through cycles have historically justified a premium valuation.

For investors seeking a reliable long-term compounder rather than a short-term bargain, paying a higher multiple for a business of this quality can still make sense, particularly after a period of share price weakness.

Foolish Takeaway

Wesfarmers is not a deep value play, and it never really has been. But after a meaningful pullback, its shares offer exposure to a high-quality, diversified business with solid earnings growth and a strong long-term track record at a more attractive price.

If I were building or adding to a long-term portfolio today, Wesfarmers is one of the ASX blue chips I would be very comfortable buying at current levels.

The post 3 reason I would buy Wesfarmers shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. 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.

Building a retirement portfolio is less about chasing the next big winner and more about reducing the chances of unpleasant surprises.

For many investors, that means prioritising companies with dependable cash flows, clear demand for their services, and business models that can keep functioning even when economic conditions are less friendly.

Income matters, but so does durability. A good retirement share is one you feel comfortable holding through market cycles without needing to constantly reassess the story.

With that in mind, here are three ASX shares that stand out as sensible options for a long-term retirement-focused portfolio.

APA Group (ASX: APA)

APA Group is the type of business that will never grab headlines. It owns and operates critical energy infrastructure across Australia, including gas pipelines, storage facilities, and electricity assets. These are long-life assets that are essential to keeping the economy running, regardless of short-term economic conditions.

What makes APA particularly suitable for a retirement portfolio is the visibility of its cash flows. Much of its revenue is underpinned by long-term contracts, which helps smooth earnings and support regular distributions. At the same time, APA continues to invest in energy transition opportunities, ensuring its asset base remains relevant as the energy mix evolves.

That combination of essential infrastructure and predictable income can be very attractive for retirees.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX retirement share to consider is the HomeCo Daily Needs REIT.

It owns large-format retail assets that are leased to tenants such as supermarkets, hardware stores, and other non-discretionary retailers. These businesses tend to remain busy even when households tighten their belts, which helps support stable rental income. Its largest tenants are Coles Group Ltd (ASX: COL), Wesfarmers Ltd (ASX: WES), and our next pick listed below.

HomeCo Daily Needs REIT’s properties are typically leased on long-term agreements, often with built-in rent increases. That provides a level of income predictability that many retirement investors value, while also offering some protection against rising costs over time.

Rather than relying on discretionary spending, it is tied to everyday activity, which arguably makes it a natural fit for an income-focused portfolio.

Woolworths Group Ltd (ASX: WOW)

As one of Australia’s dominant supermarket operators, the company sits at the centre of household spending. People continue to buy groceries in good times and bad, which supports steady revenue and cash generation.

What is sometimes overlooked is how Woolworths continues to refine its operations. Incremental improvements in pricing, range, and efficiency help protect margins over time, even in a competitive environment. This steady execution supports dividends that retirement investors can rely on.

Overall, this could arguably make Woolworths one of the best ASX retirement shares for Aussie investors in 2026.

The post 3 of the best ASX retirement shares to buy appeared first on The Motley Fool Australia.

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