The BHP Group Ltd (ASX: BHP) share price closed at $47.58 on Tuesday, up 2.3% amid a strong day for mining stocks.

As many commodity prices soar, the market’s largest ASX mining share hit a near two-year high of $48.49 last Wednesday.

Over the past week, six brokerages and global banks have updated their ratings for the ASX 200 iron ore and copper mining giant.

The one that stands out is from Jason Fairclough at Bank of America.

Fairclough reiterated his buy rating on BHP and raised his 12-month share price target from $49 to $56.

This implies a potential 18% upside for investors who buy BHP shares today.

A $56 share price would be a record for Australia’s largest mining company.

The all-time high for the BHP share price was $50.84, reached on 28 December 2023.

Let’s see how other analysts’ ratings have changed.

Where to next for the BHP share price?

Yesterday, Macquarie reiterated its hold rating on BHP and raised its 12-month share price target from $43 to $48.

Morgan Stanley reiterated its buy rating on BHP shares with a price target of $48.

Last week, Citi reiterated its hold rating and raised its price target from $47 to $48.

Barclays also reiterated its hold rating with a price target of $50.12.

Ord Minnett reiterated its buy rating on BHP shares with a price target of $48.

Rising commodity prices

The BHP share price is rising alongside commodity values.

The iron ore price is up almost 10% over the past year to US$108.25 per tonne.

The copper price is up 39% to US$5.97 per pound, and hit a record above US$6 per pound last week.

BHP is now the world’s largest copper producer.

BHP also has high-quality metallurgical coal operations.

The coking coal price has risen by almost 20% over the past 12 months to US$235.33 per tonne.

BHP is building the Jansen potash project in Canada, with first production anticipated in mid-2027.

While Jansen is not yet operational, a 24% lift in the potash price over the past 12 months bodes well for BHP shares.

The potash price is currently US$358.33 per tonne.

BHP announced it was putting its Western Australia Nickel operations into care and maintenance in July 2024 due to a slump in nickel prices.

The slump was caused by a huge ramp-up in Chinese-backed nickel mining operations in Indonesia.

But nickel appears to be rebounding, up 26% in one month and 13% year over year.

On Tuesday, Trading Economics analysts commented:

Improving demand from Chinese stainless steel mills and EV battery producers is supporting the rebound, while traders adjust speculative positions amid ongoing supply uncertainty from Indonesia, the world’s largest nickel producer.

Indonesia had signaled a potential 34% cut in 2026 output, but final quotas remain pending.

According to BHP, the miner intends to review its decision to temporarily suspend Western Australia Nickel by February next year.

The only commodity not rising that impacts BHP is thermal coal, which is down 6.5% over the past year.

The post BHP share price tipped to rise to $56: expert appeared first on The Motley Fool Australia.

More reading

• As CBA shares struggle, is BHP set to retake the biggest ASX stock crown?
• 5 things to watch on the ASX 200 on Tuesday
• The perfect retirement stock with a 4.4% payout each month
• Why ASX 200 copper stocks like Sandfire and BHP shares could be in the sweet spot in 2026
• ASX 200 materials sector dominates as scores of mining shares hit new highs

Citigroup is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Barclays Plc. 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.

Fortescue Ltd (ASX: FMG) shares have been on a tear since late June.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed up 0.76% on Tuesday, trading for $22.57 apiece.

That sees the share price up a very impressive 55% since the recent closing lows of $14.54 posted on 23 June.

Taking a step back, Fortescue shares have gained 26% since this time last year. Atop those capital gains, the ASX 200 mining stock also trades on a fully-franked trailing dividend yield of 4.9%.

But looking ahead, the analysts at Jeffries expect that shareholders will be giving back some of those gains over the coming months.

Are Fortescue shares set to fall 18%?

The team at Jeffries recently downgraded Fortescue to an underperform rating from the prior hold rating (courtesy of The Bull).

Jeffries reduced its price target for the miner from $19.25 to $18.50. That’s 18% below Tuesday’s closing price, though it’s still more than 27% above the recent June lows.

What’s been happening with the ASX 200 mining stock?

A resilient iron ore price counts among the tailwinds helping to lift Fortescue shares over the past seven months.

At the end of June, the industrial metal was trading for around US$94 per tonne. On Tuesday, that same tonne was trading for around US$109.

Lower average iron ore prices in FY 2025 were reflected in Fortescue’s full-year results covering the 12 months to 30 June.

Although Fortescue achieved record iron ore shipments in FY 2025 of 198.4 million tonnes (Mt), the company’s revenue declined 15% year on year to US$15.5 billion. This was driven by an 18% decrease in Fortescue’s average iron ore (hematite) revenue to US$85 per dry metric tonne.

On the bottom line, Fortescue’s net profit after tax (NPAT) plunged 41% from FY 2024 to US$3.4 billion.

Although Fortescue shares closed down 3.9% on 26 August, the day the miner reported those results, a rebounding iron ore price saw investors rushing to buy the dip over the following weeks.

Those investors will have been vindicated following the release of Fortescue’s record-breaking first-quarter (Q1 FY 2026) results, released on 23 October. That included all-time high quarterly iron ore shipments of 49.7 million tonnes, up 4% year on year.

The average price the miner received for its iron ore lifted to US$89 per dry metric tonne.

“Fortescue has delivered a strong start to FY26,” CEO Dino Otranto said.

But if Jeffries has it right, now may be an opportune time to cash in some gains on Fortescue shares.

The post Up 55% since June, are Fortescue shares set for a big retrace? appeared first on The Motley Fool Australia.

More reading

• ASX 200 materials sector dominates as scores of mining shares hit new highs
• Fortescue, Rio Tinto or BHP shares? Guess which ASX mining stock paid the most passive income in 2025
• Buy, hold, sell: Fortescue, Qantas, and WiseTech shares
• Guess which ASX All Ords share is leaping higher on BHP and Fortescue contract news
• How much could the Fortescue share price rise in 2026?

Motley Fool contributor Bernd Struben 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 Jefferies Financial Group. 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 iShares S&P 500 ETF (ASX: IVV) is one of the most popular exchange-traded funds (ETFs) on the ASX. With more than $13 billion under management, it is currently the third-most bought fund on the ASX, and the second-most popular fund that tracks non-ASX shares.

So it goes without saying that there are more than a few Australian investors who own the iShares S&P 500 ETF within their stock portfolios.

But how many of those investors know what they’re actually buying when purchasing this index fund? Many might have just heard the legendary investor Warren Buffett endorse an S&P 500 investment and followed suit.

So today, let’s get into the S&P 500 ETF and check what ASX investors are really putting their money into when buying IVV units.

How does the iShares S&P 500 ETF work?

Like most index funds, the ASX’s IVV ETF works by mirroring an index. That index, in this case, is the flagship S&P 500 Index (SP: .INX), the most widely tracked of its kind in the world. The S&P 500 represents the largest 500 companies that are listed on the American stock markets, weighted by market capitalisation. Warren Buffett calls this index a ‘slice of America’.

It includes everything from the tech titans like Apple, Microsoft, and Amazon to smaller stocks like Ford Motor Co, Colgate-Palmolive, and Kraft Heinz.

So at any one time, an ASX investor who owns the iShares S&P 500 ETF owns a small slice of all of those shares, plus hundreds more. The 500 largest US stocks aren’t a static list, though. They are in constant flux, with sizes changing every day that the share market is open. To ensure that the IVV ETF always holds the largest 500 American stocks, it is rebalanced every three months. The stocks that are on the rise get added to the IVV portfolio, while the losers are sold down, and in some cases, removed entirely.

It’s for this reason that passive investors love investing in ETFs like IVV. The fund does the hard work for you over time, while you can just leave it in the proverbial bottom drawer.

What does buying IVV get you?

Since IVV is weighted by market capitalisation, the largest American companies get to hold the largest positions in the IVV portfolio. That’s why the most valuable US stocks can account for more than 7% of the ETF’s portfolio, whilst the smallest barely make an impact at 0.01%.

But let’s get into what the iShares S&P 500 ETF’s current portfolio looks like.

As of 9 January, this ASX ETF’s largest ten holdings are as follows:

1. Nvidia Corp (NASDAQ: NVDA), worth 7.53% of IVV’s portfolio
2. Apple Inc (NASDAQ: AAPL), at 6.42%
3. Microsoft Corp (NASDAQ: MSFT) at 5.97%
4. Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) at 5.77%
5. Amazon.com Inc (NASDAQ: AMZN) at 4.03%
6. Broadcom Inc (NASDAQ: AVGO) at 2.73%
7. Meta Platforms Inc (NASDAQ: META) at 2.38%
8. Tesla Inc (NASDAQ: TSLA) at 2.1%
9. Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK.B) at 1.53%
10. JPMorgan Chase & Co Inc (NYSE: JPM)

Other big names that are also at the top of the IVV pack include Johnson & Johnson, Visa, Walmart, and ExxonMobil.

You might notice a notable tech bias to IVV’s current holdings. Indeed, all seven of the ‘Magnificent 7’ stocks are in IVV’s largest ten holdings. Together, they account for 34.2% of the entire portfolio of the iShares S&P 500 ETF. That means that for every $100 you invest in IVV units, $34.20 ends up invested in these seven stocks. That’s something to keep in mind if you’re concerned about diversification.

The post Investing in the iShares S&P 500 ETF (IVV)? Here’s what you’re really buying appeared first on The Motley Fool Australia.

More reading

• VGS ETF outperformed ASX IVV in 2025. Here’s why
• 2 ASX ETFs I would buy in 2026 and hold forever
• Own IVV ETF? Here are your returns for 2025
• Own IVV or IOO ETFs? It’s dividend payday for you!
• 4 pros and cons of buying the iShares S&P 500 ETF (IVV) in 2026!

JPMorgan Chase is an advertising partner of Motley Fool Money. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, Apple, Berkshire Hathaway, Kraft Heinz, Meta Platforms, Microsoft, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Colgate-Palmolive, JPMorgan Chase, Meta Platforms, Microsoft, Nvidia, Tesla, Visa, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom, Johnson & Johnson, and Kraft Heinz and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, Visa, and 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.

Blue chip investing is often misunderstood. It is not about buying the biggest ASX 200 shares simply because they are big.

It is about owning companies with proven business models, strong competitive advantages, and the ability to keep adapting as markets evolve over the years.

The best ASX 200 blue chip shares do not just defend their position, they continue to find ways to grow. This is what creates shareholder wealth.

With that in mind, let’s now take a look at three ASX 200 blue chip shares that combine scale, quality, and long-term relevance. Here’s what you need to know about them:

Goodman Group (ASX: GMG)

Goodman Group shows how a blue chip does not have to be static. While often categorised as a property company, Goodman’s exposure goes far beyond traditional real estate. Its global portfolio increasingly supports logistics, automation, and digital infrastructure. The latter includes a rapidly growing exposure to data centres across the globe.

Through its development-led and partnership-based model, this ASX 200 blue chip share continues to grow its earnings while maintaining balance sheet flexibility. This gives it leverage to some of the most important long-term trends shaping global commerce.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne has spent decades building mission-critical software for governments, universities, and large organisations.

In recent years, the company has been transformed by its transition to a software-as-a-service model. This has dramatically improved revenue visibility, increased recurring income, and strengthened cash generation.

Looking ahead, the ASX 200 blue chip share still appears to be in a growth phase rather than a mature one. International expansion, particularly in the United Kingdom, is opening up new opportunities, while ongoing product development allows the company to sell more functionality to existing customers.

With a highly sticky customer base and a growing suite of cloud-based solutions, TechnologyOne has multiple levers it can pull to keep expanding over time.

Woolworths Group Ltd (ASX: WOW)

Woolworths earns its blue chip status through its dominance of the Australian supermarket industry.

As Australia’s leading supermarket operator, it benefits from steady demand regardless of economic conditions. Food and everyday essentials are not discretionary, which supports resilient cash flows through cycles.

At the same time, Woolworths continues to invest in supply chain efficiency, digital platforms, and data-driven customer engagement to entrench its leadership position and leave it placed for growth. This combination of stability and incremental improvement is what allows a blue chip like Woolworths to remain relevant over decades.

And while the last 12 months have been challenging, there are signs that it is now over the worst and returning to form.

The post 3 ASX 200 blue chip shares built for the long term appeared first on The Motley Fool Australia.

More reading

• Buying Woolworths shares? Here’s how the supermarket is tapping into the AI revolution
• Smart investors are betting on this ASX passive income stock
• My top 3 artificial intelligence ASX stocks to buy for 2026
• 3 defensive ASX dividend shares to buy with $10,000
• How I’d invest $50,000 across ASX shares today

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

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• ASX mining shares on fire! New 52-week highs today
• Endeavour Group: H1 FY26 sales rise, retail margin narrows
• GQG Partners reports US$163.9bn FUM for 2025
• Buy, hold, sell: ANZ Bank, Monadelphous, and Northern Star shares
• Fletcher Building Q2 volume update: Key results and outlook

Motley Fool contributor Sebastian Bowen 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 positions in and has recommended Imdex. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Surging commodity prices are providing tremendous support to ASX mining shares as new global trends take hold.

Today, we saw plenty of ASX mining shares hit new 52-week highs as metal and mineral prices lifted again.

Those stocks included iron ore and lithium producer Mineral Resources Ltd (ASX: MIN), lithium pure-play PLS Group Ltd (ASX: PLS), silver miner South32 Ltd (ASX: S32), gold miner Newmont Corporation CDI (ASX: NEM), and aluminium stock Alcoa Corporation CDI (ASX: AAI)

Some commodities have risen by more than 25% and even up to 70% over the past month alone.

What’s pushing commodity values higher?

Strong central bank buying, falling US interest rates, and less faith in the US dollar are supporting safe-haven commodities, gold and silver.

Additionally, after decades of discussion and years of government planning, the green energy transition is well underway.

This is showing up in surging demand for copper and silver, which have high electrical conductivity and other industrial usages.

Silver is used to make solar panels and modern tech devices, and is used in the wiring for electric vehicles (EVs) and data centres.

Lithium prices have been on the rise for six months after three years of global oversupply finally thinned out.

Demand for lithium to power batteries, such as those in EVs, is increasing as the world embraces low-emissions cars.

EVs outsold traditional vehicles for the first time in China last October.

Many nations are also resetting their supply chains after COVID highlighted the need for home-based manufacturing and diversified sources of essential inputs.

US tariffs are partly aimed at encouraging global companies to set up at least some of their manufacturing inside the US.

The US also wants to diversify away from China, which was the impetus behind an $8.5 billion trade deal with Australia last year.

The deal centred around rare earths and other critical minerals essential for mobile phones, rockets, aircraft, and EVs.

Both the US and China are limiting exports to protect home-based manufacturing and limit other nations’ access to critical minerals.

This is changing the global supply/demand dynamic, pushing commodity prices up and benefiting many ASX mining shares.

Additionally, amid growing geopolitical tensions, developed nations are seeking to strengthen their military might.

Last year, NATO made a commitment to increase its defence spending from 2% to 5% of GDP over the next 10 years.

To build ships and military tanks, along with high-tech software for defence applications, a lot of metals and minerals are required.

This is also lifting many commodity values.

Nations incentivise critical minerals producers

Many developed nations, including the US and Australia, have developed critical minerals lists and offered incentives to local producers.

The US added silver to its Critical Minerals List in November.

Other metals and minerals on the list include copper, used in wiring and cables  for decades, but now also in demand for wind turbines.

There is also aluminium, used to build cars, trucks, planes, electrical transmission lines, and machinery.

Antimony is also on the list. It has many industrial and defence uses and is found in lead-acid batteries, bullets, and semiconductors.

Lithium is on the list, as is gallium, used in semiconductors, and indium, used in flat-panel LED TVs and tech gadget touchscreens.   

Platinum, palladium, and rhodium are on the list. They’re used in catalytic converters in low-emission vehicles.

4 commodities up 25% to 70% in a month

Here are four commodities that have surged over the past month, benefitting many ASX mining shares.

Silver

The silver price is up 34% in just one month and up 181% year over year.

Today, analysts at Trading Economics said:

Silver remained above $85 per ounce on Tuesday, hovering near record highs as concerns over the US Federal Reserve’s independence, geopolitical tensions, and renewed trade fears bolstered demand for safe-haven metals.

Investors were also watching escalating protests in Iran, which raised fears of potential US intervention, alongside President Trump’s statements on annexing Greenland.

Lithium

The lithium carbonate price is up 68% in one month and 110% year over year.

On Tuesday, the analysts said “signs of strong demand for power storage coincided with the outlook of capped supply”.

They added:

Chinese authorities lowered export rebates for battery producers from April, driving manufacturers to front-run lithium orders.

In the meantime, ambitious bets in power and datacenter infrastructure by the Chinese government was combined with the announcement of higher power storage spending, supporting the outlook for lithium and other battery metals.

This was combined with Beijing stating it would double EV charging capacity to 180 gigawatts by 2027, supporting lithium-rich energy storage systems.

Platinum

The platinum price is up 27% in a month and up 150% over 12 months.

The surge reflects strong safe-haven demand amid geopolitical tensions in Iran, where unrest has claimed hundreds of lives.

At the same time, slower-than-expected US employment growth in December, despite a resilient unemployment rate, supported expectations of Federal Reserve rate cuts, boosting demand for non-yielding assets like platinum.

Nickel

The nickel price is up 26% in one month and 13% year over year.

Nickel appears to be starting a recovery after a three-year slump created by an explosion in Chinese-backed nickel mining in Indonesia.

The Trading Economics analysts commented:

Improving demand from Chinese stainless steel mills and EV battery producers is supporting the rebound, while traders adjust speculative positions amid ongoing supply uncertainty from Indonesia, the world’s largest nickel producer.

Indonesia had signaled a potential 34% cut in 2026 output, but final quotas remain pending.

Check out the 12 fastest-rising commodities of 2025 here.

The post Why are commodity prices going crazy? appeared first on The Motley Fool Australia.

More reading

• Down 67% since June, why Goldman Sachs thinks Boss Energy shares are still overvalued
• Zip shares slide 10% today as investors head for the exits. Here’s why
• Where I would invest $5,000 in ASX ETFs in January
• VGS ETF outperformed ASX IVV in 2025. Here’s why
• Buying Woolworths shares? Here’s how the supermarket is tapping into the AI revolution

Motley Fool contributor Bronwyn Allen has positions in Alcoa and South32. 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.

Boss Energy Ltd (ASX: BOE) shares aren’t joining in the broader market rally today.

Shares in the S&P/ASX 300 Index (ASX: XKO) uranium miner closed yesterday trading for $1.555. In afternoon trade on Tuesday, shares are swapping hands for $1.532 apiece, down 1.5%.

For some context, the ASX 300 is up 1% at this same time.

Today’s underperformance won’t be welcomed by faithful stockholders. But with Boss Energy holding the ignominious title of most shorted stock on the ASX this week, with a whopping short interest of 19.7%, not everyone will be lamenting today’s losses.

With today’s intraday fall factored in, Boss Energy shares are down 67.2% since market close on 30 June. And with its market cap crumbling, the Aussie uranium miner was dropped from the ASX 200 in the S&P Dow Jones Indices quarterly rebalance, effective 22 December.

Despite those sharp falls, the analysts at Goldman Sachs believe the ASX uranium stock still looks overvalued.

Goldman Sachs issues sell rating on Boss Energy shares

Goldman Sachs recently initiated coverage on Boss Energy with a sell rating (courtesy of The Bull).

The broker remains concerned about the outlook for “resource recovery, production rates, and cost structures” at Boss’ flagship Honeymoon uranium project, located in South Australia.

With these uncertainties in mind, Goldman Sachs has a $1.20 price target on Boss Energy shares. That’s almost 22% below current levels.

What’s been happening with the Honeymoon uranium project?

The latter half of 2025 saw Boss Energy come under heavy selling pressure amid growing investor concerns related to a shrinking uranium production outlook and rising costs at Honeymoon.

On 28 July, Boss Energy shares closed down a painful 44% after the miner downgraded its full-year FY 2026 uranium production guidance to 1.6 million pounds per year. That was down from the prior FY 2026 guidance goal of 2.45 million pounds of uranium.

And citing cost pressures “primarily due to an expected decline in average tenor and an optimised lixiviant chemistry”, management forecast FY 2026 an all-in sustaining cost (AISC) between $64 to $70 per pound, topping market expectations.

Following an extensive review of Honeymoon, Boss Energy shares plunged another 24.6% on 18 December after management reported “an expected material and significant deviation” from the assumptions underpinning Honeymoon’s 2021 Enhanced Feasibility Study (EFS).

This saw the miner officially withdraw the EFS for the project.

Pointing to a potential silver lining, Boss Energy managing director Matthew Dusci said:

Although Boss acknowledges this disappointing outcome, the Honeymoon review and delineation drilling programs have enabled the identification of a potential pathway forward through a new wide-spaced wellfield design.

While additional work is necessary to finalise a new Feasibility Study, this development presents an opportunity for Boss to potentially lower operating costs, optimise production profiles, and extend mine life compared to the current wellfield design.

The post Down 67% since June, why Goldman Sachs thinks Boss Energy shares are still overvalued appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Buying ASX uranium shares like Paladin Energy? Here’s why they’re starting 2026 with a bang!
• These are the 10 most shorted ASX shares
• Leading brokers name 3 ASX shares to buy today
• Up 119% since April, 3 reasons to buy this newly-minted ASX 200 uranium share today

Motley Fool contributor Bernd Struben 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 Goldman Sachs Group. 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 Zip Co Ltd (ASX: ZIP) share price has taken a sharp step backwards today after a strong run in recent months.

Shares in the buy now, pay later (BNPL) company are down 9.30% to $3.22 at the time of writing. Even after today’s pullback, the stock remains up close to 10% over the past year, highlighting how much ground it had already covered.

So, what is driving the sell-off?

Profit taking follows a strong rally

The most likely explanation for today’s sell-off is profit-taking after Zip entered overbought territory.

In recent weeks, the share price pushed sharply higher, moving well above key moving averages. Technical indicators such as the relative strength index (RSI) climbed into the low 70s, signalling stretched conditions.

When stocks move too fast, a pullback is common. That appears to be what is unfolding today rather than a reaction to any new negative news.

What the charts are saying now

From a technical perspective, Zip’s pullback has brought the share price back toward more neutral levels.

The RSI has cooled back toward the mid-range, suggesting selling pressure may begin to ease if buyers step in. Bollinger Bands also show the price retreating from the upper band, another sign that the stock was previously overextended.

Key support levels to watch sit around $3, followed by stronger support near $2.85. On the upside, resistance is now evident around $3.50 and again near $3.80, where sellers previously emerged.

The business backdrop remains solid

Importantly, nothing material has changed in Zip’s underlying business.

The company operates across Australia, New Zealand, and the United States, offering point of sale credit and digital payment solutions. Management has spent the past two years aggressively improving profitability, cutting costs, exiting weaker markets, and focusing on higher-quality earnings.

That work has paid off. Zip has delivered strong cash earnings growth, improved margins, and a healthier balance sheet. The company has also continued to execute share buybacks, signalling confidence in its financial position.

The US market remains a key growth driver, while transaction volumes and active customers have stabilised after a volatile period for the BNPL sector.

What investors should watch next

The next major catalyst will be Zip’s upcoming half-year results on 19 February, where investors will be looking for confirmation that earnings momentum is continuing into FY26.

Any update on transaction growth, bad debt trends, and US expansion will be closely watched.

Foolish Takeaway

Zip’s sharp fall today looks more like a technical pullback than a fundamental shift.

For investors with a long-term view, periods like this often come with the territory. Despite the swings, the business continues to move in the right direction.

The post Zip shares slide 10% today as investors head for the exits. Here’s why appeared first on The Motley Fool Australia.

More reading

• The 3 stocks I’d buy and hold into 2026
• Could the Zip share price benefit from Trump’s latest proposal?
• These ASX 200 stocks could rise 20% to 35%
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares 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.

If you have $5,000 to invest in exchange traded funds (ETFs) this month, then it could be worth checking out the five in this article.

Here’s why I think they could be top picks for Aussie investors in January:

Vanguard MSCI International Shares ETF (ASX: VGS)

I would start with the Vanguard MSCI International Shares ETF.

This ASX ETF gives investors exposure to over a thousand companies across developed markets.

But its real value is what it removes. It removes reliance on the Australian economy, local interest rate cycles, and domestic sector concentration. Over long periods, global diversification tends to smooth outcomes.

The Vanguard MSCI International Shares ETF is the ETF I would be happiest owning without checking regularly. It quietly captures global economic growth as it unfolds.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF is another ASX ETF I would buy with the $5,000.

This ETF concentrates on US tech stock that reinvest heavily, move fast, and shape how people work, communicate, and spend.

Holding the Betashares Nasdaq 100 ETF alongside the Vanguard MSCI International Shares creates an interesting contrast. One is broad and balanced. The other is focused on technological progress.

VanEck Morningstar Wide Moat AUD ETF (ASX: MOAT)

Another ASX ETF to consider buying is the popular VanEck Morningstar Wide Moat ETF.

Instead of guessing which sector will perform best, this ASX ETF looks for businesses that are difficult to disrupt. Strong brands, high switching costs, and entrenched positions are the common thread. These companies often look boring until you realise how consistently they generate cash.

The VanEck Morningstar Wide Moat ETF is the ETF I would rely on when markets become volatile. It is designed to reward investors willing to make patient long-term investments.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The Betashares Asia Technology Tigers ETF could be a great option for investors this month.

Many of the world’s most engaged digital consumers live in Asia, and this ETF targets the platforms they use every day. Payments, gaming, social commerce, and online services dominate the portfolio.

The Betashares Asia Technology Tigers ETF adds a layer of growth that does not depend on US leadership alone. It can be volatile at times, but it reflects where future economic growth is likely to come from.

Betashares Crypto Innovators ETF (ASX: CRYP)

Finally, the Betashares Crypto Innovators ETF is one worth considering if you have a high tolerance for risk and believe that cryptocurrencies are here to stay.

Rather than betting directly on digital assets, it focuses on the businesses building the infrastructure around them. Exchanges, miners, and service providers rise and fall with adoption trends, regulation, and sentiment.

The post Where I would invest $5,000 in ASX ETFs in January appeared first on The Motley Fool Australia.

More reading

• VGS ETF outperformed ASX IVV in 2025. Here’s why
• Guess how much $10,000 invested in these ASX ETFs 3 years ago is worth today?
• 3 fantastic ASX ETFs for growth investors to buy before it’s too late
• New to Investing? Here are 3 ASX ETFs to get you started
• 2 ASX ETFs I would buy in 2026 and hold forever

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF, Betashares Capital – Asia Technology Tigers Etf, and VanEck Morningstar Wide Moat 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 VanEck Morningstar Wide Moat ETF 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.

The Vanguard MSCI Index International Shares ETF (ASX: VGS) delivered a total gross return of 13.34% in 2025.

This comprised 9.81% in capital growth and a dividend yield of 3.53%, less fees.

By comparison, the iShares Core S&P 500 AUD ETF (ASX: IVV) rose 8.24% and delivered a total return of 10.13%.

Why did VGS ETF do better than IVV last year?

The US stock market has delivered unbelievable returns over the past three years.

This has largely been due to the performance of global tech giants listed in the US.

While VGS is overweight in US stocks, about 30% of its investments are in other global markets that are starting to surge.

This, along with a weaker US dollar against most developed-nation currencies, is why the VGS ETF outperformed ASX IVV last year.

A review of the 2025 performance of various global indices outside the US depicts the trend.

Other global markets surge in 2025

Last year, the S&P 500 Index (SP: INX) gave a total return of 17.88% (the IVV ETF returned less than this due to the currency exchange).

A total return of almost 18% in a year is an outstanding return in anyone’s language.

The VGS ETF is comprised of 73.6% US stocks, so the S&P 500’s performance heavily influenced its 2025 return.

But look what other global indices did.

The S&P Japan 500 Index delivered a total return of 25.12%, outperforming the S&P 500 by more than 7%.

Japan is the second biggest geographic exposure in the VGS ETF at 5.6%.

Canada’s benchmark, the S&P/TSX Composite Index, delivered a total return of 31.68%. That’s almost 14% more than US stocks.

Canada is the third largest geographic exposure in the VGS ETF at 3.4%.

The S&P United Kingdom Index returned 25.71%, outperforming the S&P 500 by almost 8%.

The United Kingdom is the fourth-largest geographic exposure in ASX VGS, at 3.4%.

The S&P Europe 350 Index returned 20.5%. Grouped together, European stocks make up 15.9% of the VGS ETF.

The S&P Pan Asia BMI Index, which incorporates Japan, China, South Korea, Taiwan, and Australia, returned 27.31%.

Grouped together, the Pacific represents 6.5% of the VGS ETF’s geographic mix.

Diversity advantage of ASX VGS

While heavily invested in US stocks, the Vanguard MSCI Index International Shares ETF provides exposure to other international shares.

That diversification is proving useful, with experts suggesting markets outside the US could outperform over the next decade.

Top broker Goldman Sachs says international markets will likely outperform US shares over the next 10 years.

Peter Oppenheimer, chief global equity strategist at Goldman Sachs Research, said:

We expect higher nominal GDP growth and structural reforms to favor emerging markets, while artificial intelligence’s long-term benefits should be broad-based rather than confined to US technology stocks.

A declining US dollar could also favor non-US equities, adding an extra layer of opportunity for globally diversified portfolios.

Goldman favours emerging markets and Asia ex-Japan over the 10-year outlook.

Here are the broker’s predictions:

Region	Average return over 10 years	Drivers
US	+6.5%	Driven primarily by EPS growth, with valuations trending lower and dividends remaining modest
Europe	+7.1%	Balanced contributions from earnings and shareholder distributions, including about a 3% dividend yield
Japan	+8.2%	Underpinned by EPS growth of 6% and and policy-led improvements in dividends and buybacks
Asia ex-Japan	+10.3%	Aided by about 9% EPS growth and 2.7% dividend yield, partly offset by valuation derating
Emerging markets	+10.9%	Led by strong EPS growth in China and India. We also see improving shareholder returns supported by policy reforms

Source: Goldman Sachs

Another top global broker, UBS, foresees stronger earnings growth in China and Europe than the US over the next two years.

In a recent article, UBS recommended that investors “add exposure to global equities amid [a] supportive backdrop”.

The post VGS ETF outperformed ASX IVV in 2025. Here’s why appeared first on The Motley Fool Australia.

More reading

• Where I would invest $5,000 in ASX ETFs in January
• New to Investing? Here are 3 ASX ETFs to get you started
• 2 ASX ETFs I would buy in 2026 and hold forever
• Own IVV ETF? Here are your returns for 2025
• Vanguard reveals next lot of dividends for VAS and other ASX ETFs

Motley Fool contributor Bronwyn Allen has positions in Vanguard Msci Index International Shares ETF and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and iShares S&P 500 ETF. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF and 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.