When investing a meaningful sum like $50,000, my goal is not to be clever. It is to build a portfolio that balances quality, growth, and resilience, while keeping the number of moving parts manageable.

I am not trying to predict short-term market moves. Instead, I want exposure to businesses and assets that I would be comfortable holding through volatility, knowing that time and fundamentals can do the heavy lifting.

If I were investing $50,000 across the ASX right now, this is how I would allocate it.

$15,000 in Wesfarmers Ltd (ASX: WES)

Wesfarmers is not cheap, but I am willing to pay a premium for quality when the business has a long track record of good return and disciplined capital allocation. With exposure to Bunnings, Kmart Group, Officeworks, industrials, and healthcare, Wesfarmers offers diversification within a single holding.

I like having a business in the portfolio that can generate strong cash flows across different economic conditions. Wesfarmers plays that role for me.

$12,000 in CSL Ltd (ASX: CSL)

CSL gives me exposure to global healthcare and long-term structural growth.

After a disappointing period, expectations are lower and sentiment is more balanced. I do not need CSL to deliver spectacular growth to justify owning it. I just need steady execution, margin recovery over time, and continued demand for plasma therapies.

For a medium-sized portfolio, CSL adds global earnings exposure and defensive qualities that complement more cyclical holdings.

$10,000 in TechnologyOne Ltd (ASX: TNE)

TechnologyOne is one of two quality growth stocks in this portfolio.

Its enterprise software is deeply embedded in government, education, and large organisations, where switching costs are high and contracts are long-dated. The shift to SaaS has improved earnings visibility and margins, while international expansion adds a longer growth runway.

Together with its ongoing investment in research and development (20% to 25% of annual revenue), I believe this is an ASX share with a bright future.

$8,000 in Xero Ltd (ASX: XRO)

Xero adds more quality growth exposure to the portfolio.

This ASX share has built a global small business platform with strong recurring revenue and high customer retention. While the share price can be volatile, I think it is worth sticking with Xero because the long-term opportunity is immense if management continues to execute. The company estimates that it has a total addressable market worth $100 billion.

I would not make Xero my largest position, but I am comfortable allocating a meaningful amount to a global SaaS leader that now trades at a more reasonable valuation than in recent years.

$5,000 in the VanEck Morningstar Wide Moat AUD ETF (ASX: MOAT)

Finally, I would round out the portfolio with an ETF.

The VanEck Morningstar Wide Moat AUD ETF gives exposure to fairly valued US-listed stocks with durable competitive advantages. I like this as a way to add diversification and quality without relying on any single stock.

In a $50,000 portfolio, this ETF helps smooth risk and provides exposure to global businesses with pricing power and strong returns on capital. This is never a bad idea.

Why this mix of ASX shares works for me

This portfolio is deliberately simple. It blends defensive qualities, structural growth, global exposure, and diversification without becoming overly complex.

I am not claiming this is the perfect portfolio, or that it will outperform every year. But it reflects how I prefer to invest. Focus on quality, avoid overtrading, and hold businesses I understand and trust.

The post How I’d invest $50,000 across ASX shares today appeared first on The Motley Fool Australia.

More reading

• Should you buy Wesfarmers shares before February?
• Time to sell? These were my worst ASX shares in 2025
• Snap up these ASX 200 stocks trading close to 52-week lows
• Why I own these amazing ASX ETFs
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor Grace Alvino has positions in CSL and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Technology One, Wesfarmers, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended CSL, Technology One, VanEck Morningstar Wide Moat ETF, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with the smallest of declines. The benchmark index dropped slightly to 8,717.8 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market looks set for a good start to the week following a positive finish to the last one on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 29 points or 0.35% higher. In the United States, the Dow Jones was up 0.5%, the S&P 500 rose 0.65%, and the Nasdaq jumped 0.8%.

Oil prices rise

It could be a good start to the week for ASX 200 energy shares such as Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices rose on Friday night. According to Bloomberg, the WTI crude oil price was up 2.35% to US$59.12 a barrel and the Brent crude oil price was up 2.2% to US$63.34 a barrel. This was driven by concerns over Iranian supply.

Buy Develop Global shares

The team at Bell Potter thinks investors should be buying Develop Global Ltd (ASX: DVP) shares. According to the note, the broker has retained its buy rating on the mining and mining services company’s shares with an improved price target of $5.80. It said: “With Woodlawn de-risking behind us, DVP presents a unique small-cap copper-zinc exposure that is relatively undervalued compared with peers in the Resources space.”

Gold price rises

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a decent start to the week after the gold price pushed higher again on Friday night. According to CNBC, the gold futures price was up 0.9% to US$4,500.9 an ounce. Geopolitical concerns and US interest rate cut optimism were behind the rise.

Hold Atlas Arteria shares

Analysts at Morgans think that Atlas Arteria Group (ASX: ALX) shares are fairly valued at current levels. They have retained their hold rating on the toll road operator’s shares with a trimmed price target of $4.74. The broker said: “Forecast of ALX free cashflow and cash reserves is downgraded (but we still see ALX as capable of sustaining the current DPS of 40 cps until at least the end of the decade). DCF-based business-as-usual valuation of ALX reduces 30 cps to $4.43/sh, due to the forecast changes. 12 month target price (which includes a mild premium for potential takeover activity) declines 31 cps to $4.74/sh.”

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

More reading

• Why did Morgans just downgrade its view on this ASX industrials stock?
• ASX 200 materials sector dominates as scores of mining shares hit new highs
• Santos, Beach Energy, or Woodside shares. Which ASX energy share paid the most passive income in 2025?
• Here are the top 10 ASX 200 shares today
• Top Australian stocks to buy with $5,000 in 2026

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. 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.

With February reporting season approaching, many investors are asking the same question. Is it worth buying Wesfarmers Ltd (ASX: WES) shares before the company reports or should you wait?

At a current share price of $80.91, Wesfarmers is trading 15% below its 52-week high of $95.18. 

That pullback has reopened the debate, particularly given the company’s reputation for quality and long-term execution. While buying any stock ahead of earnings carries risk, I think there is a reasonable case for considering Wesfarmers before February.

A high-quality ASX stock after a pullback

Wesfarmers is not a cheap stock on traditional valuation metrics. It rarely is. What investors are paying for is the quality of the portfolio, the resilience of earnings, and management’s long track record of disciplined capital allocation.

Consensus estimates from CommSec point to earnings per share of $2.52 in FY26, rising to $2.75 in FY27. That is not explosive growth, but it reflects steady progress from a diversified group that includes Bunnings, Kmart Group, Officeworks, WesCEF, and Wesfarmers Health.

The recent share price weakness does not appear to reflect a fundamental breakdown in the business. Instead, I think it looks more like a reset in expectations after a very strong run.

Dividends remain a key part of the appeal

For long-term investors, dividends matter. Wesfarmers has a strong history here, and current expectations remain supportive.

According to CommSec, fully franked dividends of $2.14 per share are expected in FY26, rising to $2.33 in FY27. At today’s share price, that represents an attractive income stream backed by cash-generative businesses and a strong balance sheet.

While dividends are never guaranteed, I think Wesfarmers’ focus on capital discipline and shareholder returns suggests income remains a priority.

What reporting season could bring for Wesfarmers shares

Buying before reporting season always comes with uncertainty. Short-term market reactions can be unpredictable, even when results are solid.

That said, commentary from the 2025 annual general meeting (AGM) pointed to resilient trading conditions, ongoing investment in productivity, and a diversified portfolio that helps offset weakness in individual divisions.

But if the results were to disappoint, I believe the downside risk from here may be more limited than it was at higher price levels.

Why I lean towards buying before February

For me, the decision comes down to time horizon.

If you are a short-term trader trying to guess the market’s reaction to earnings, waiting may make sense. But if you are a long-term investor looking to own a high-quality ASX 200 stock through multiple cycles, I think the current setup is reasonable.

Wesfarmers shares are not cheap, but I believe they represent value relative to the quality, stability, and long-term earnings power of the business. I would rather lock up a purchase at this price than waiting and risk them rising back towards their 52-week high.

Foolish takeaway

Buying Wesfarmers shares before February is not without risk. Earnings season always carries uncertainty. However, after a meaningful pullback, supported by solid earnings expectations and attractive fully franked dividends, I think the risk-reward balance looks acceptable for long-term investors.

The post Should you buy Wesfarmers shares before February? appeared first on The Motley Fool Australia.

More reading

• Don’t want to rely on your wage? Build a second income with these ASX shares
• Here are my top 10 ASX stocks for 2026
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• 5 unbeatable ASX stocks I’m eager to buy in 2026
• My top 5 ASX stocks to buy in early 2026

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.

Liontown Ltd (ASX: LTR) has been one of the ASX 200’s standout performers over the past year. The lithium producer’s share price is now sitting at $2.05, up an impressive 266% over the past 12 months, and more than 30% higher in just the past week.

That surge has pushed Liontown’s market capitalisation to around $6 billion, cementing its place among Australia’s most closely watched lithium stocks. After such a powerful run, is there more upside ahead in 2026?

Let’s unpack.

Lithium prices have rebounded sharply

A major driver behind Liontown’s surge has been the recovery in lithium prices.

Spot lithium carbonate prices are currently around US$19,800 per tonne, marking the strongest levels seen in more than 2 years. Prices had collapsed during the downturn but have rebounded as demand from electric vehicles and energy storage improves.

According to Trading Economics, lithium prices are expected to trade in a broad US$11,000 to US$28,000 per tonne range through 2026, depending on supply growth and EV demand. This improving pricing backdrop has lifted sentiment across the lithium sector.

Liontown’s financial position

Liontown is still in a heavy investment phase, which shows clearly in its financials.

Over the past 12 months, the company generated around $298 million in revenue, reflecting its transition into production. However, it remains loss making, with a net loss of roughly $193 million over the same period.

This profile is not unusual for a developing lithium producer, but it does mean the company is highly sensitive to lithium prices, production ramp up, and cost control.

Liontown has approximately 2.94 billion shares on issue, and its 52-week trading range spans from about 42 cents to just over $2.09, highlighting how quickly sentiment has shifted.

What brokers are saying

Broker views on Liontown have become more divided following the sharp rally.

Some analysts remain positive on the long-term outlook for lithium and continue to see strategic value in Liontown’s Kathleen Valley project. That said, valuation concerns are starting to surface at current price levels.

Consensus broker data points to an average 12-month price target of around $1.17, well below the current share price. As a result, many ratings now sit at ‘hold’, reflecting caution around valuation rather than a loss of confidence in lithium’s longer-term demand.

Can the rally continue?

Liontown’s share price momentum has been exceptional, but expectations are now much higher. For the stock to keep climbing, lithium prices will likely need to remain supportive and the company must deliver on production and costs.

After a 260% run, volatility should be expected. Pullbacks are common after moves of this size, particularly in commodity-linked stocks where sentiment can turn quickly.

The post Up 260% in a year, can this ASX 200 lithium stock keep climbing in 2026? appeared first on The Motley Fool Australia.

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• 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.

As I covered this week, 2026 was a decent year for both the S&P/ASX 200 Index (ASX: XJO) and my own portfolio of ASX shares. I was able to slightly outperform the market’s 10.3% return (growth plus dividend income) in 2025, thanks in part to the winners I discussed on Friday.

But not all of my ASX stocks did well in 2025. In fact, two stood out as notable laggards.

Two ASX shares that dragged on my portfolio in 2025

CSL Ltd (ASX: CSL)

I first picked up CSL shares a number of years ago for about $225 each. This healthcare stock had a horrid 2025, which prompted me to pick up some more shares at just under $200. Alas, CSL finished the year at $172.65 each. That means my position went backwards by the best part of 30% last year. Ouch. At least I didn’t buy my entire position on 1 January last year, which would have lost me closer to 40% of my investment.

Even so, CSL was a stinker investment. But I’m not too worried. For one, it is still growing, with the company reporting underlying profit growth of 14% in August for its full-year earnings.

Yes, the company is facing some short-term hurdles, particularly from US tariffs. But as a world-leading vaccine and blood plasma medicine manufacturer, I think its long-term future is bright. Some experts agree, with Morgan Stanley recently giving the company a buy rating and a 12-month share price target of $256.

Kogan.com Ltd (ASX: KGN)

ASX e-commerce share Kogan is my other 2025 stinker. This stock had a disastrous year last year, falling from $6.21 to the $3.67 it finished December. That’s a drop with a nasty 40.9%.

I’ll admit, I didn’t buy this ASX share at the right price. Kogan has had a few issues in recent years, including problems with its acquisition of the New Zealand-based Mighty Ape. But I’m not selling, as I think Kogan is primed for a recovery. Its 2025 financial results were encouraging, with Kogan reporting 6.2% revenue growth and a 12.7% lift in net profits.

With the company writing down some of the goodwill from its Mighty Ape acquisition last year, I feel confident that 2026 will be a better year. I am also encouraged by the ongoing share buyback program Kogan is pursuing. Given the company’s low share price over much of 2025, this should boost shareholder returns quite nicely in the years ahead.

The post Time to sell? These were my worst ASX shares in 2025 appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Sebastian Bowen has positions in CSL and Kogan.com. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Kogan.com. The Motley Fool Australia has recommended CSL and Kogan.com. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) has held relatively steady over the past few weeks, and currently sits at approximately 8 ,718 points. 

While this is below the record highs hit back in August and Octovber last year, it’s not too far behind. 

The same can’t be said for all 200 companies sitting within the index. 

But when quality companies see a share price dip, it can create an opportunity for investors to scoop them up at a discount. 

To be clear, companies trading close to 52-week lows don’t come without risk. 

After all, there’s a reason investors have exited. 

The question for potential buyers to consider is if the stock has fallen below fair value – with consideration for any red flags. 

Let’s look at two companies trading close to yearly lows. 

Amcor plc (ASX: AMC)

Amcor is an international plastics packaging company. 

It develops and produces responsible packaging solutions for food, beverage, pharmaceutical, medical, home and personal-care, and other products.

Over the last year, its share price is down almost 17%. 

A big chunk of this selloff occurred following the company’s fourth quarter update last August. 

This ASX 200 stock fell 10% in one day, after EBITDA results fell short of the consensus estimates.

Now trading close to 52 week lows, there are some positives to consider with this ASX 200 stock. 

First of all, it’s expected to pay a dividend yield of over 6% in the next year. 

Secondly, experts are tipping a recovery for its share price. 

Morgans has a buy rating and $15.20 price target on this ASX 200 stock. 

From last week’s closing price of $12.86, this indicates an upside of more than 18%. 

Xero Limited (ASX: XRO)

Xero shares have been hotly covered here at The Motley Fool in recent months as general consensus indicates these shares are trading below fair value. 

Despite this sentiment, Xero shares have continued to tumble. 

The company offers cloud-based, accounting software for small to medium businesses.

These ASX 200 shares are down almost 37% in the last 12 months despite the company showing healthy growth in its subscriber base and revenue. 

Targets from analysts indicate this ASX 200 stock should recover. 

Macquarie currently has an outperform rating and $230.30 price target on Xero shares.

From last week’s closing price of $107.46, this indicates more than 114% upside.

The post Snap up these ASX 200 stocks trading close to 52-week lows appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Amcor Plc and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The team at Morgans have just lowered their price target on ASX industrials stock Atlas Arteria Ltd (ASX: ALX). 

Let’s find out why. 

What is Atlas Arteria?

Atlas Arteria is a global owner, operator, and developer of toll roads. It has a portfolio of five toll roads in France, Germany, and the United States. The company was created out of the reorganisation of Macquarie Infrastructure Group in 2010. 

This ASX industrials stock has experienced some volatility in the last 6 months. 

Its stock price has fluctuated between $5.50 and $4.75. 

It closed last week at $4.86. 

However, in a recent note out of Morgans, the broker has updated its guidance on this ASX industrials stock. This was alongside a decreased price target. 

Looking big picture

Morgans have made slight adjustments to forecasts ahead of Atlas Arteria’s FY25 result due to be released on 26 February. 

These changes were made due to newer traffic data, inflation updates, FX moves, and a few financing/toll tweaks across ALX’s assets.

APRR, the French toll road business, saw slight earnings downgrades as lower inflation will lead to smaller toll increases than previously expected, along with some tax-related adjustments.

At Dulles Greenway in the US, earnings have been upgraded in the short term, but the long-term outlook has been trimmed because future toll increases will be lower than Morgans had previously assumed.

The Chicago Skyway also saw a modest improvement in earnings, although this was partly offset by higher borrowing costs.

The assumption adjustments result in earnings downgrades for APRR, FY25-26 upgrades for Dulles Greenway (but long term downgrades), and mild upgrades for the Chicago Skyway. Forecast of ALX free cashflow and cash reserves is downgraded (but we still see ALX as capable of sustaining the current DPS of 40 cps until at least the end of the decade).

Is there any upside for this ASX industrials stock?

Based on this guidance, Morgans 12 month target price (which includes a mild premium for potential takeover activity) declined 31 cps to $4.74. 

Based on last week’s closing price, it seems Atlas Arteria shares are trading close to fair value. 

The updated price target indicates a downside of just over 2.4%. 

Elsewhere, TradingView has an average one year price target of $5.26. 

This indicates approximately 8% upside from current levels. 

It is worth reminding investors this ASX industrials stock also is expected to is pay unfranked dividend yield of more than 8% this year.

The post Why did Morgans just downgrade its view on this ASX industrials stock? appeared first on The Motley Fool Australia.

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

ASX ETFs offer diversification in one simple trade. 

Investing in hundreds or even thousands of companies at once can help smooth out market volatility. 

However with the rise of thematic ETFs, even successful funds can be exposed to market dips. 

The following three funds have had a successful track record of returns, but underperformed last year relative to historic performance.

This could make them attractive investment options at current prices. 

Etfs Morningstar Global Technology ETF (ASX: TECH)

This ASX ETF targets companies positioned to benefit from the increased adoption of technology, including companies whose principal business is in offering computing Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS), and/or cloud and edge computing infrastructure and hardware.

Since its inception in 2017, the fund has risen more than 100%. 

This includes almost 8% p.a. returns over the last 5 years. 

This hasn’t come without years of volatility.

It is down 10% over the last 12 months. 

With that in mind, this fund has exposure to sectors that are paramount to the growth of technology and cloud computing.

These include semiconductors, software and electronics. 

At the time of writing, it includes 38 underlying holdings, with its largest geographical exposure being to: 

• United States (60.76%)
• Netherlands (8.90%)
• Germany (6.65%)

Betashares India Quality ETF (ASX: IIND)

Another thematic fund with a good track record, but a down year is the Betashares India Quality ETF. 

As the name suggests, it targets high quality Indian companies. 

According to Betashares, it includes 30 high quality Indian companies based on a combined ranking of the following key factors: high profitability, low leverage and high earnings stability.

The thematic nature of this fund means it relies on the performance of the Indian economy. 

However despite falling more than 5% over the last year, its long-term prospects are intriguing. 

India’s economy is one of the fastest-growing in the world, with future growth potential underpinned by strong structural fundamentals.

India is expected to remain among the best performing economies globally; the IMF forecasts GDP to expand 6.4% p.a. in the next year. 

Furthermore, this fund has actually already shown a strong track record. 

It has risen 60% since March 2020. 

iShares International Equity ETFs – iShares S&P Small-Cap ETF (ASX: IJR)

As the name suggests, this fund focuses on small-cap US stocks. 

According to iShares, it tracks the performance of the S&P Small-Cap 600, before fees and expenses. The index is designed to measure the performance of small-capitalisation US equities.

In the last 12 months it only rose 1%. 

However it has an average annual return of 10% over the last 5 years. 

The post 3 undervalued ASX ETFs with proven track records appeared first on The Motley Fool Australia.

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

Investing does not have to be complicated to be effective.

Over time, I have come to appreciate the value of owning investments that quietly do the heavy lifting in the background.

Rather than constantly adjusting a portfolio or trying to predict short-term market moves, I like assets that give me exposure to powerful long-term trends and high-quality businesses in a simple, disciplined way.

While individual ASX shares certainly offer this, it can also be achieved easily with exchange traded funds (ETFs).

And two ASX ETFs that I own for this reason are named below. Here’s why I think they are amazing picks for Aussie investors.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF gives me exposure to some of the most influential companies in the global economy through a single ASX investment.

This hugely tracks the Nasdaq 100 Index, which includes many of the world’s leading technology and innovation-driven businesses. These companies sit at the centre of long-term trends such as cloud computing, artificial intelligence, digital advertising, and e-commerce.

Major holdings typically include global leaders like Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and NVIDIA (NASDAQ: NVDA). These are businesses with scale, global reach, and the ability to invest heavily in innovation year after year.

What appeals to me most about the Betashares Nasdaq 100 ETF is how it allows the portfolio to evolve over time. As new leaders emerge and others fall away, the index adjusts. That makes this ETF a simple way to stay exposed to where growth and innovation are actually happening, without needing to constantly make the decisions myself.

VanEck Morningstar Wide Moat AUD ETF (ASX: MOAT)

The VanEck Morningstar Wide Moat ETF complements the Betashares Nasdaq 100 ETF by taking a more selective approach to investing.

Rather than focusing on the fastest-growing companies, it invests in US businesses that have wide economic moats. These are companies with strong brands, high switching costs, or structural advantages that protect profits over long periods.

The portfolio is relatively concentrated and currently includes companies such as United Parcel Service (NYSE: UPS), Salesforce.com (NYSE: CRM), and Adobe (NASDAQ: ADBE). These are businesses that tend to generate strong cash flow and maintain pricing power through different economic environments.

For me, the VanEck Morningstar Wide Moat ETF adds an extra layer of quality and discipline to a portfolio. It focuses on businesses that are not only strong today, but also difficult to displace over time.

The post Why I own these amazing ASX ETFs appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe, Apple, BetaShares Nasdaq 100 ETF, Microsoft, Nvidia, Salesforce, and United Parcel Service. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft, long January 2028 $330 calls on Adobe, short January 2026 $405 calls on Microsoft, and short January 2028 $340 calls on Adobe. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Adobe, Apple, Microsoft, Nvidia, Salesforce, and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Westpac Banking Corp (ASX: WBC) shares are a popular option for Australian investors.

This is particularly the case for those with a penchant for passive income, with Australia’s oldest bank among the most generous dividend payers on the Australian share market.

For example, in FY 2025, the bank’s steady financial performance and strong capital position allowed its board to declare a final ordinary dividend of 77 cents per share with its full year results, taking its fully franked dividends to $1.53 per share for the year. This equates to a payout ratio of 75% of profit after tax, excluding notable items.

This represents a total payout of $5.2 billion to its 571,800 shareholders.

To put that into context, this is more than the market capitalisation of Breville Group Ltd (ASX: BRG) and Treasury Wine Estates Ltd (ASX: TWE).

But what sort of passive income could I earn from Westpac shares in the future? Let’s take a look at what the market is expecting from the big four bank.

Passive income from Westpac shares

Let’s first imagine that I have $100,000 to invest in the bank’s shares. With the Westpac share price currently fetching $37.90, this means I could buy approximately 2,638 shares.

According to a recent note out of UBS, its analysts are expecting Westpac to increase its fully franked dividend to $1.70 per share in FY 2026.

This represents a dividend yield of almost 4.5% and would mean that those 2,638 Westpac shares would generate $4,484.60 in passive income.

The good news is that the broker believes that another increase is coming for shareholders in FY 2027. UBS has pencilled in a fully franked dividend of $1.75 per share for that financial year.

This represents a 4.6% dividend yield and would mean passive income of $4,616.50 for that $100,000 investment. Combined, investors are looking at a total of $9,101.10 across the two financial years.

It is worth noting, however, that the interim dividend for FY 2026 has just been paid. But barring a sudden cut in FY 2028, the actual dividend income paid out over the next 24 months shouldn’t diverge too much from the above.

Should you invest?

Although UBS is very positive on the bank’s outlook, it currently only has a neutral rating and $40.00 price target on Westpac’s shares.

This implies potential upside of 5.5% for investors over the next 12 months. Together with forecast dividends, this means there’s a total potential return of 10% if UBS is on the money with its recommendation.

The post How much passive income could I earn from Westpac shares appeared first on The Motley Fool Australia.

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