Yesterday afternoon, DroneShield Ltd (ASX: DRO) announced the vesting of 9.2 million Performance Options, reflecting a milestone of $200 million in cash receipts within a rolling 12-month period. The company’s continued rapid sales growth has also resulted in a $23.5 million share option non-cash expense for 2025.

What did DroneShield report?

• 9,224,361 Performance Options vested after reaching $200 million in cash receipts over 12 months
• Share option non-cash expense for 2025 totals $23.5 million
• Fully diluted shares on issue will be 930,409,195 if all new options are exercised
• 995,000 Performance Options remain unvested, tied to higher future milestones
• All Performance Options were verified and approved by independent auditor

What else do investors need to know?

DroneShield’s option milestone was independently verified by auditor HLB Mann Judd, covering cash receipts from 2 April 2025 to 13 January 2026. The newly vested options were initially granted when DroneShield’s sales and share price were much lower, designed to reward employees for driving transformational growth.

A revised incentive plan now aligns longer-term performance with shareholder interests. New Performance Options will vest in stages only if the company achieves ambitious annual cash receipt or revenue targets of $300 million, $400 million, and $500 million. These changes apply to eligible employees, with any future grants to the CEO subject to shareholder approval.

What’s next for DroneShield?

Looking ahead, DroneShield’s enhanced incentive plans are designed to motivate its team to reach even higher milestones, with structured vesting aligned to future business expansion. Investors can expect upcoming audited full-year financial results in February 2026, which will formally confirm the company’s performance and option expense.

The company remains focused on scaling its global operations and building on its momentum in the defence technology sector, partnering with governments and enterprise customers to protect critical infrastructure.

DroneShield share price snapshot

Over the past 12 months, Droneshield shares have risen 577%, significantly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post DroneShield hits $200m milestone as 9.2m options vest and 2025 expense revealed appeared first on The Motley Fool Australia.

More reading

• Shares vs. property: Which delivered the best capital growth in 2025?
• Here are the top 10 ASX 200 shares today
• My 3 higher-risk, high-reward ASX stock recommendations for February 2026
• Insignia Financial responds to ASX on disclosure and governance
• Why Capstone Copper, Dateline, DroneShield, and Lindian shares are falling today

Motley Fool contributor Laura Stewart 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 DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

There are not many ASX dividend shares I’d be happy to own which have a dividend yield of more than 9%. The listed investment company (LIC) WAM Microcap Ltd (ASX: WMI) is one that I own and it comes with several positives.

The dividend yield is an appealing factor of the business, but there’s more to it than just huge payouts.

WAM Microcap is run by the fund manager Wilson Asset Management. It is already been around for nine years, and I’m expecting it to in my portfolio for many years to come for a few reasons.

Big dividend yield

Let’s start by acknowledging how big the dividend yield is.

Pleasingly, the business grew its regular annual dividend per share each year between FY18 and FY23. It maintained the payout in FY24 and then increased dividend per share to 10.6 cents in FY25.

In other words, it has delivered a reliable level of dividends over the last several years, as well as a few special dividends.

At the time of writing, the FY25 payout translates into a dividend yield of 9.1%, including franking credits.

It ticks the yield and reliability boxes, but there are two other elements that are attractive.

Small ASX shares can make big returns

A LIC’s job is to make investment returns for shareholders. Those returns can be generated in a variety of different ways, from various sized businesses.

The WAM Microcap investment team look for opportunities at the small end of the ASX share market, which comes with two key advantages.

Firstly, those stocks are much earlier on in their growth journey compared to the well-known ASX shares. They may have a much better earnings growth rate than their larger counterparts. Rising earnings is a key driver of higher share prices.

Second, small businesses are not as widely researched by investors as larger businesses. It’s more likely that a small business will be overlooked and undervalued.

I think it’s the above factors that have helped the WAM Microcap deliver an average return per year of 16.7% since inception in June 2017 (before fees, expenses and taxes). This level of return helps fund the large yield.

Diversification

WAM Microcap is not a highly concentrated portfolio of just a few names. It’s invested in a variety of sectors, with dozens of stocks spread across areas like industrials, consumer discretionary, financials and IT. That gives it good diversification.

Some of its biggest holdings at the end of December 2025 were Autosports Group Ltd (ASX: ASG), Baby Bunting Group Ltd (ASX: BBN), FINEOS Corporation Holdings PLC (ASX: FCL), Generation Development Group Ltd (ASX: GDG), Kelsian Group Ltd (ASX: KLS) and Tuas Ltd (ASX: TUA).

While small caps can be volatile, it’s not exposed too much to one business or one sector. It’s a compelling investment for yield investors, in my opinion.

The post This 9% yield is one I’m comfortable holding for the long term 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
• 1 ASX blue-chip share and one small-cap share to buy in 2026: experts

Motley Fool contributor Tristan Harrison has positions in Tuas and Wam Microcap. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended FINEOS Corporation. The Motley Fool Australia has positions in and has recommended FINEOS Corporation. 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.

Looking a decade ahead changes the way you think about investing.

Short-term market noise fades into the background and what really matters is whether the businesses you own can keep growing, adapting, and generating cash over long periods.

That is where exchange traded funds (ETFs) can be especially useful. They allow investors to back enduring themes and high-quality stocks without needing to constantly reshuffle a portfolio.

With a 10-year-plus horizon in mind, here are three ASX ETFs that could be worth buying and holding until 2036.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

The Betashares Global Cash Flow Kings ETF could be an ASX ETF to buy and hold.

Rather than focusing purely on growth or valuation, this fund targets global stocks that generate strong and sustainable free cash flow.

That cash generation gives businesses flexibility. It can be used to reinvest, reduce debt, pay dividends, or return capital to shareholders.

The portfolio includes high-quality global leaders such as ASML Holding (NASDAQ: ASML), Alphabet (NASDAQ: GOOGL), Costco Wholesale (NASDAQ: COST), NVIDIA (NASDAQ: NVDA), and Visa (NYSE: V). These are businesses that not only operate at scale but consistently turn revenue into real cash.

It was recently recommended by analysts at Betashares.

VanEck MSCI International Quality ETF (ASX: QUAL)

The VanEck MSCI International Quality ETF is another ASX ETF that could be suitable for buy and hold investors.

This ASX ETF invests in international stocks with strong balance sheets, high returns on equity, and stable earnings profiles. These characteristics tend to matter more as time horizons extend, because they reduce the risk of permanent capital loss.

Its holdings read like a list of global corporate leaders. This includes Meta Platforms (NASDAQ: META), NVIDIA, Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Eli Lilly (NYSE: LLY), Alphabet, Visa, and ASML Holding.

This fund was recently recommended to investors by analysts at VanEck.

VanEck China New Economy ETF (ASX: CNEW)

The VanEck China New Economy ETF is a third and final fund for investors to look at.

This ASX ETF targets stocks that are tied to China’s emerging sectors such as healthcare, technology, advanced manufacturing, and consumer innovation.

Holdings include businesses like Intsig Information, Giantec Semiconductor, Shennan Circuits, and several pharmaceutical and biotechnology stocks. These are areas China has been actively investing in as it looks to move up the value chain.

The VanEck China New Economy ETF is certainly not without risk, but over a 10-year horizon it offers exposure to a part of the global economy that is likely to keep evolving.

It was also recently recommended by analysts at VanEck.

The post 3 ASX ETFs to buy and hold until 2036 appeared first on The Motley Fool Australia.

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• Why Aussies are pouring into ASX ETFs at a record pace
• Why this high-quality ASX ETF could be my next ASX buy
• Investing in the VanEck International Quality ETF (QUAL)? Here’s what you’re really buying
• 3 ASX ETFs that could be perfect for beginner investors in 2026
• Why the IVV ETF and these funds could be top buys in 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 ASML, Alphabet, Apple, Costco Wholesale, Meta Platforms, Microsoft, Nvidia, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended ASML, Alphabet, Apple, Meta Platforms, Microsoft, Nvidia, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Turning 50 is a quiet financial milestone. For many Australians, it is the point where retirement shifts from an abstract future idea to something that feels uncomfortably real.

With around 17 years until Age Pension eligibility, superannuation suddenly carries more weight. There’s still time to make meaningful progress, but far less room for complacency.

That naturally leads to one big question: am I roughly where I should be by now for a good retirement? Let’s find out.

What does a good retirement actually cost?

Before looking at balances, it helps to understand where you are going.

According to the Association of Superannuation Funds of Australia (ASFA), retirees generally fall into one of two lifestyle categories.

A comfortable retirement allows for more than just covering the basics. It includes private health insurance, regular leisure activities, reliable transport, and the ability to enjoy travel and time with family. That might includes flights with Qantas Airways Ltd (ASX: QAN) overseas.

As of the September 2025 quarter, ASFA estimates this requires annual spending of around $54,240 for singles and $76,505 for couples. To support that lifestyle from age 67, ASFA suggests a super balance of about $595,000 for singles and $690,000 for couples.

A modest retirement, by contrast, sits slightly above the Age Pension. It covers essentials and occasional leisure, but with limited discretionary spending.

For this lifestyle, ASFA estimates a super balance of roughly $100,000 for both singles and couples.

With those benchmarks in mind, the averages at age 50 start to carry more context.

So, what is the average super balance at 50?

There isn’t a single official data point for exactly age 50, but we can make a reasonable estimate using the surrounding age brackets from ASFA data.

Australian women aged 45 to 49 hold average balances of approximately $147,000, whereas women aged 50 to 54 hold average balances of approximately $190,000. Based on this, we can assume that the average Australian woman has a balance of approximately $169,000.

For men, the averages stand at $193,000 and $254,000 for the two age groups. This would suggest that the average 50-year-old Australian man is sitting on a superannuation balance of approximately $224,000.

Is that enough?

Based on the Rest Super calculator, a 50-year-old woman earning $70,000 a year with a balance of $169,000 could expect to retire with superannuation of $369,000.

Whereas an Australian man of the same age and earning the same amount with $224,000 in super could see their balance grow to $465,000 by retirement.

That places many Australian singles below the level required for a comfortable retirement. But pleasingly, the average Aussie couple would be easily over what is needed.

Is there time to catch up?

At 50, time is no longer abundant, but it is still powerful.

Seventeen years of compulsory employer contributions, combined with investment returns, can materially change outcomes. Many people also reach their peak earning years in their 50s, creating opportunities to boost super through salary sacrifice or concessional contributions, where appropriate.

Investment settings also matter. While everyone’s risk tolerance is different, being overly conservative too early can quietly limit growth. Even small improvements in long-term returns can have a significant impact over the final stretch to retirement.

Foolish takeaway

Being average with super at 50 doesn’t guarantee a comfortable retirement, but it doesn’t rule one out either.

What matters most from here is awareness and intent. Knowing where you stand today allows you to make informed choices about contributions, investment strategy, and expectations for retirement.

Superannuation isn’t about hitting a perfect number by a certain birthday. It is about steadily improving your position, and at 50, there is still plenty of opportunity to do that.

The post Here is the average Australian superannuation balance at 50 in 2026 appeared first on The Motley Fool Australia.

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• Which airline could deliver almost 25% returns? See what the analysts say
• 5 ASX shares I’d buy with $5,000 this week
• 5 ASX 200 shares I think could beat the market in 2026
• ASX income stocks: A once-in-a-decade chance to get rich
• 2 ASX shares highly recommended to buy: Experts

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

In comparing the capital growth rate of ASX 200 shares vs. property in 2025, bricks and mortar won out.

S&P/ASX 200 Index (ASX: XJO) shares rose 6.8% and gave a total return, including dividends, of 10.32%.

Meanwhile, the national median home value, which reflects all property types in a single data point, rose by 8.6%.

The total return, including rental income, was 12.4% over the 12 months, according to data from Cotality.

Drilling down into property types, the national median house price rose 9.3% to $980,343 the apartment price lifted 6% to $728,184.

Investment property market in 2025

Cotality Australia Head of Research, Eliza Owen, said the property market had an unexpectedly strong year.

Owen commented:

Markets entered 2025 under considerable pressure.

Affordability had hit a series high, serviceability was stretched and price growth had flattened out.

What followed was an unexpectedly strong rebound as interest rate cuts, easing inflation and limited supply reignited competition.

The expansion of the 5% Home Guarantee Scheme from 1 October and persistently low listing volumes also helped drive prices higher.

The expanded scheme is now accessible to an unlimited number of first home buyers, regardless of their income.

Property price caps were raised as part of the expansion.

In Sydney and the prime regional NSW hubs of The Illawarra, Newcastle, and Lake Macquarie, the price cap is $1.5 million.

Owen said there were three consecutive months of at least 1% growth in the national median value, from September to November.

The Australian property market is now worth $12 trillion compared to ASX shares at $3.6 trillion and superannuation at $4.5 trillion.

Lower value property markets saw the best growth because they were more affordable.

Let’s look at the specific growth numbers for metro and regional areas last year.

Shares vs. property in 2025: Houses

Here is the capital growth rate for houses in each market, ranked from highest to lowest.

Property market	Capital growth of houses in 2025
Darwin	19.9%
Regional Western Australia	16.5%
Perth	15.7%
Brisbane	14%
Regional Queensland	12.8%
Regional South Australia	10.9%
National	9.3%
Adelaide	8.7%
Regional NSW	7.6%
Regional Tasmania	7.1%
Sydney	6.9%
Hobart	6.8%
Canberra	6.4%
Regional Victoria	6.1%
Melbourne	5.8%
Regional Northern Territory	1.7%

Source: Cotality

Shares vs. property in 2025: Apartments

Here is the capital growth rate for apartments (and other strata properties), ranked from highest to lowest.

Property market	Capital growth of apartments in 2025
Perth	17.5%
Darwin	17%
Brisbane	16.9%
Regional South Australia	14.3%
Regional Queensland	12.1%
Regional Western Australia	9.5%
Adelaide	9.5%
Hobart	6.9%
Regional NSW	6%
National	6%
Regional Victoria	5.8%
Sydney	2.9%
Regional Tasmania	2.8%
Melbourne	2.5%
Canberra	0%
Regional Northern Territory	N/A

Source: Cotality

5 best-performing ASX 200 shares of 2025

Let’s compare shares vs. property in more detail by looking at the capital growth of the five best-performing ASX 200 shares of 2025.

ASX 200 shares	Capital growth in 2025
DroneShield Ltd (ASX: DRO)	300%
Pantoro Gold Ltd (ASX: PNR)	220%
Resolute Mining Ltd (ASX: RSG)	206%
Liontown Resources Ltd (ASX: LTR)	197%
Regis Resources Ltd (ASX: RRL)	196%

The post Shares vs. property: Which delivered the best capital growth in 2025? appeared first on The Motley Fool Australia.

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

Earning $2,000 a month in passive income sounds like a dream.

But you can make it a reality in the share market thanks to ASX shares and the power of compounding.

Here’s how you can do it:

Build your capital first

In the early days, the goal is not passive income. It is momentum.

When a portfolio is small, dividends make very little difference in dollar terms. At this stage, investors are usually better served by focusing on blue chip shares with growth potential, established growth stocks, and broad ASX and global ETFs. These assets are designed to grow earnings and capital over time.

Any income generated along the way should be reinvested instead of spent. Dividends quietly buy more shares. Growth compounds on top of earlier gains. The portfolio starts to build scale, which is essential for meaningful income later on.

Examples of good options for investors at this stage could be the Betashares Nasdaq 100 ETF (ASX: NDQ), the iShares S&P 500 AUD ETF (ASX: IVV), and ResMed Inc. (ASX: RMD)

How much do you need?

If you are wanting passive income of $2,000 a month or $24,000 a year, then you would need a portfolio worth $480,000 based on a 5% dividend yield.

That’s no small sum, but it is more achievable than you think.

Let compounding work for you

This is the part many investors underestimate.

In the early years, contributions do most of the work. Progress feels slow. But over time, returns start to matter more than new money. Compounding does the heavy lifting, provided the investor stays invested through both good and bad markets.

Reaching a portfolio size of $480,000 is usually the result of time and consistency rather than a single great decision.

For example, it would take 16.5 years of investing $1,000 a month to grow a portfolio to $480,000 if you achieved a return of 10% per annum. This sort of return is not guaranteed, but it is broadly in line with long-term market returns. So, it certainly is possible.

Transition from growth to income

Once the portfolio has sufficient size, its role changes.

Growth still matters, but reliability and cash flow become more important. This is where investors often begin shifting toward quality ASX dividend shares and income-focused ETFs. These assets are designed to convert capital into regular income rather than maximise capital growth.

At a 5% yield, a $480,000 portfolio can generate around $24,000 a year. Importantly, this income does not have to come at the expense of long-term stability. Many high-quality ASX dividend payers have durable businesses and growing cash flows. Current examples include Telstra Group Ltd (ASX: TLS) and Harvey Norman Holdings Ltd (ASX: HVN).

Foolish takeaway

Making $24,000 a year in passive income is not about finding the perfect dividend stock today.

It is about building a portfolio large enough to support that income sustainably. By starting with growth assets, allowing compounding to work, and only later transitioning to dividend shares and income ETFs, investors give themselves a realistic path to $2,000 a month in passive income.

The post How to make $24,000 in passive income a year appeared first on The Motley Fool Australia.

More reading

• 5 ASX ETFs for genuine global exposure
• How much could I make investing $500 a month in ASX shares?
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• IVV, VGS, VAS: Which ASX ETF produced the better returns in 2025?
• 3 super ASX ETFs for easy investing in AI

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF, ResMed, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF, Harvey Norman, ResMed, and Telstra Group. The Motley Fool Australia has recommended iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The share market is one of the best avenues for ordinary Australians to build wealth. Anyone over 18 with at least $500 to spare can invest in ASX shares. Given these shares are chosen prudently, they can compound over years, snowballing to deliver exponentially increasing returns.

Choosing those shares is the hard part, of course. With so many options on the ASX alone, it can be overwhelming to sift through the wheat to find the proverbial chaff.

To make things easier, I’ve concocted a simple, three-stock ASX share portfolio that I think any investor, beginner or veteran, can construct with confidence if they are hoping to build long-term wealth.

A simple ASX stock portfolio for building wealth

First up, investors can consider investing in Argo Investments Ltd (ASX: ARG). Argo is a listed investment company (LIC). This means it holds an underlying portfolio of investments, which the company manages on behalf of its shareholders. In Argo’s case, these underlying investments are mostly blue-chip ASX shares, ranging (as of 31 December) from BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA) to Santos Ltd (ASX: STO) and Aristocrat Leisure Ltd (ASX: ALL).

Since Argo manages this portfolio, investors can sit back and forget about buying and selling the right ASX shares. In this way, Argo is a fantastic choice for investors who want to invest in Australian shares but are happy to outsource the hard work.

In that vein, MFF Capital Investments Ltd (ASX: MFF) is a complementary investment to Argo. MFF is another LIC. Instead of holding a portfolio of Australian shares, it opts for the best stocks on the American markets to build wealth for shareholders. MFF has always followed a long-term buy-and-hold mindset. Many of its largest holdings, including Meta Platforms, Google owner Alphabet, Mastercard, and American Express, have been in its portfolio for years.

Adding companies of this world-leading calibre to a portfolio is, in my view, a great way to complement Argo’s Australian blue chips.

Our final investment is another inherently diversified, passive-friendly choice. It is the Vanguard Diversified High Growth Index ETF (ASX: VDHG). This exchange-traded fund (ETF) is really a collection of different index funds. It offers investors exposure to the entire ASX, as well as international markets, emerging markets, and international small companies. It also has a small allocation to fixed-interest investments.

This ‘ETF of ETFs’ is a highly diversified passive investment that offers exposure to almost all corners of global markets.

Foolish takeaway

This simple three-stock portfolio may suit an investor looking to passively build wealth using stocks. You are getting some of the ASX’s most reliable blue-chip shares through Argo. MFF complements them with some of America’s best companies, while Vanguard’s VDHG ETF adds a layer of diversification to the mix. If I were starting an investing journey in 2026, dividing your capital equally between these three investments would, at least in my view, be a good place to start building wealth.

The post Any ASX investor can use this simple 3-stock portfolio to build wealth appeared first on The Motley Fool Australia.

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American Express is an advertising partner of Motley Fool Money. Motley Fool contributor Sebastian Bowen has positions in Alphabet, American Express, Mastercard, Meta Platforms, and Mff Capital Investments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Mastercard, and Meta Platforms. The Motley Fool Australia has recommended Alphabet, BHP Group, Mastercard, Meta Platforms, and Mff Capital Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Australian investors don’t need to leave the ASX to build a genuinely global portfolio.

A handful of well-established ASX ETFs now provide direct access to Europe, US tech leaders, Asia, and emerging markets. All in local dollars.

Together, these five funds span the world’s key growth engines.

Vanguard FTSE Europe Shares ETF (ASX: VEQ)

Europe often flies under the radar, but this ASX ETF gives investors broad exposure to developed European markets, including the UK, Germany, France, and Switzerland. The ETF holds hundreds of large and mid-cap companies across financials, industrials, and healthcare.

Over the past 12 months, VEQ has delivered returns of around 25%, supported by stronger earnings and a rebound in cyclical sectors. Income also plays a role, with a dividend yield near 3%, making it one of the higher-yielding regional ETFs.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

BetaShares NASDAQ 100 ETF remains the go-to ASX ETF for exposure to global innovation. It tracks the NASDAQ-100 Index (NASDAQ: NDX), dominated by technology and growth leaders such as Apple, Microsoft, Nvidia, and Amazon.

After a strong run, NDQ has produced roughly 11% returns over the past year. Dividends are modest, with about 1%. But that’s the trade-off for access to companies driving artificial intelligence, cloud computing, and digital consumption.

iShares MSCI Emerging Markets ETF (ASX: IEM)

For investors chasing higher long-term growth, this ASX ETF opens the door to emerging economies, including China, India, Taiwan, Brazil, and South Korea. The fund spans more than 1,000 companies across tech, banking, and consumer sectors.

Emerging markets staged a sharp recovery, with IEM up around 30% over the past 12 months. Income is secondary here, with a dividend yield of roughly 1.5%, but the growth potential remains the key attraction.

Vanguard FTSE Asia ex Japan ETF (ASX: VAE)

VAE focuses on Asia’s fastest-growing economies while excluding Japan. China, India, Taiwan, and South Korea dominate the portfolio, giving investors exposure to manufacturing, semiconductors, and expanding consumer markets.

The ETF has returned about 20% over the past year, reflecting renewed momentum across Asian equities. Dividends sit around 1.7%, offering a modest income stream alongside growth.

Vanguard FTSE Emerging Markets ETF (ASX: VGE)

VGE provides another take on emerging markets, tracking a slightly different index with a tilt toward larger companies. It overlaps with IEM but often delivers a higher income profile.

Over the past 12 months, the ASX ETF has generated mid-teens returns while offering a dividend yield of close to 3%, making it appealing to investors seeking emerging-market exposure without sacrificing income.

The post 5 ASX ETFs for genuine global exposure appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, BetaShares Nasdaq 100 ETF, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Amazon, 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.

Building wealth through ASX stocks could be one of the best choices because of the power of compounding and profit growth.

ASX stocks can provide both capital growth and dividends (passive income). That sounds good to me!

If someone were to start investing at the age of 25, they could grow their wealth enormously by the time they wanted to retire.

Time will tell what the usual retirement age will be in 40 or so years. It could be 65, 70 or even older. But, I’m going to show how a 25-year-old investor could grow their wealth over the next four decades.

Compounding potential

Every household’s finances are different, so I can’t say for sure what level of savings someone would be able to unlock for investing. What I do know, is that we want to get to a place where we are spending less than our income so we have money left over to invest.

When we’re able to create savings most months (or every month), then we can put that money towards investing into the ASX stock market.

Investing in shares is simple, comes with a lot less paperwork and costs than property, doesn’t require debt and can deliver great returns in we invest in the right area.

Over the ultra-long-term, shares have returned an average of around 10%. At that rate, the value of the shares would double in just eight years.

Let’s imagine a 25-year-old was able to invest $1,250 each month on average into ASX stocks. That would become $6.64 million after 40 years, with around $6 million of that being generated by returns and the rest being from the monthly deposits.

I’m not sure what portfolio size will be needed to reach a comfortable retirement, but $6 million may be more than enough.

Someone may not want to work as long as that.

After 30 years of following that strategy, the portfolio would be worth $2.47 million.

After 20 years it’d be worth $859,000, which may not quite be enough.

Therefore, it could take less than 30 years for someone to build a substantial wealth fund.

Which ASX stocks to invest in?

The easiest way to invest could be exchange-traded funds (ETFs) that provide diversified exposure to the share market such as BetaShares Australia 200 ETF (ASX: A200) and Vanguard MSCI Index International Shares ETF (ASX: VGS).

Listed investment companies (LIC) such as Australian Foundation Investment Co Ltd (ASX: AFI), WAM Microcap Ltd (ASX: WMI) and L1 Long Short Fund Ltd (ASX: LSF) could be compelling options.

Or, some of country’s best ASX growth shares such as Temple & Webster Group Ltd (ASX: TPW), Tuas Ltd (ASX: TUA) or TechnologyOne Ltd (ASX: TNE) could be compelling picks.

The post If a 25-year-old invests $1,250 a month in ASX stocks, here’s what they could have by retirement appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why I think beginners would love these Vanguard ETFs
• IVV, VGS, VAS: Which ASX ETF produced the better returns in 2025?
• Looking for double-digit returns? Check out RBC Capital Markets’ picks ahead of reporting season
• 3 ASX 200 shares this fund manager says are buys for 2026

Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund, Technology One, Temple & Webster Group, Tuas, and Wam Microcap. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One and Temple & Webster Group. The Motley Fool Australia has recommended Technology One, Temple & Webster Group, and 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.

There’s no denying that ASX small-cap stocks can hold big upside. 

However, it’s also important to remember that just because a stock is cheap doesn’t mean it’s a good value. 

One small-cap stock that has drawn attention from experts is Fenix Resources Ltd (ASX: FEX). 

Fenix Resources overview

Fenix Resources is an Australian company engaged in exploring, developing, and mining mineral tenements.

According to the team at Bell Potter, it is unlocking stranded mining assets across the Mid-West region of Western Australia, through three wholly owned business pillars:

• iron ore mining (Westmine)
• bulk commodity haulage (Newhaul Road Logistics)
• port services (Newhaul Port Logistics)

Over the last 12 months, its operations have produced record iron ore production and sales. 

This has seen its stock price rise from $0.27 to $0.47 per share. 

That’s good for a rise of 74%. 

It has already drawn positive attention from investors in 2026, hitting all-time highs along with posting strong production results. 

The team at Bell Potter believe it has plenty of room to keep rising. 

Printing records & cash

In a new report out of Bell Potter on Thursday, the broker said Fenix Resources reported a record quarterly result, delivering group iron ore production of 1.14 million tonnes and sales of 1.24 million tonnes. 

This was 40% higher than the previous quarter and equates to an annualised run rate of around 4.9 million tonnes. 

The company also generated strong cash flow during the quarter, building its cash balance by $21 million. 

As at 31 December 2025, Fenix held $79 million in cash and had estimated debt, including leases, of approximately $81 million, leaving net debt of around $2 million. 

The broker also said Fenix Resources is on track to shift all mining operations to the Beebyn Hub. 

Its newest mine, Beebyn-W11, is now running steadily. 

FEX continues to demonstrate strong project execution with Beebyn-W11, its third operating mine, reaching steady-state production of ~1.5Mtpa.

Buy recommendation

Bell Potter has maintained its buy recommendation on this ASX small-cap stock. 

The broker has a price target of $0.70 per share. 

From last week’s price of $0.47 per share, this indicates an upside of approximately 49%. 

FEX has outlined a clear pathway to incrementally grow iron ore production to 10Mtpa at significantly lower unit costs, leveraging its integrated logistics network to underpin cash flows and fund its substantial organic growth outlook. FEX holds the largest storage position at the strategic and fast-growing Geraldton Port.

The post The ASX small-cap stock that could be set to boom appeared first on The Motley Fool Australia.

More reading

• Why this ASX iron ore stock could outperform BHP and Fortescue shares
• Why Civmec, Fenix, Paladin Energy, and Vulcan Steel shares are pushing higher today
• This ASX iron ore producer, trading near record highs, just announced a record result

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.