Getting started with ASX shares does not need to be difficult.

For me, simplicity usually comes down to choosing businesses that are easy to understand, operate in essential areas, and have relatively predictable earnings.

That does not remove risk, but it can make it easier to stay invested and build confidence over time.

Here are three ASX shares I think are straightforward starting points.

Woolworths Group Ltd (ASX: WOW)

Woolworths is about as easy as it gets to understand.

It sells groceries and everyday essentials, which means it benefits from consistent demand. People still need to buy food regardless of what the economy is doing.

What I like here is the stability. The business generates steady cash flow, which supports regular dividends and ongoing investment in its operations.

There is also a gradual growth element through improvements in efficiency, supply chain, and digital capabilities.

For someone starting out, I think that mix of simplicity and reliability can be helpful.

Telstra Group Ltd (ASX: TLS)

Telstra offers exposure to another essential service.

Telecommunications infrastructure underpins how people work, communicate, and consume content. That creates a recurring revenue base for the company.

What stands out to me is the predictability. Telstra has a large customer base and generates consistent earnings, which helps support its dividend payments.

It may not be a high-growth business, but I think it can play a steady role over time, particularly for investors interested in income.

Sigma Healthcare Ltd (ASX: SIG)

Finally, Sigma Healthcare adds a slightly different angle.

Following its merger with Chemist Warehouse, the business now has a much larger presence across both distribution and retail pharmacy.

I think that integration is important. It gives Sigma Healthcare exposure to the full supply chain, from wholesaling medicines to selling them directly to consumers around the world.

Healthcare demand also tends to be relatively stable, supported by long-term trends such as population growth and ageing.

For someone starting out, I think Sigma offers a combination of defensiveness and growth potential, even if the share price may move around in the short term.

Foolish takeaway

Starting to invest does not require complex strategies. For me, it is about choosing businesses you can understand and hold with confidence.

Woolworths, Telstra, and Sigma Healthcare operate in areas people rely on every day, which supports steady demand.

I think that kind of foundation can make it easier to stay focused on the long term and continue building from there.

The post 3 simple ASX shares to start investing today appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• How to build a winning 10 ASX share portfolio from scratch in 2026
• Buy, hold, sell: Life360, Northern Star, and Sigma shares
• 3 ASX blue chips I’d buy for a $250,000 retirement portfolio
• Why ASX dividend investing still works for building long-term wealth

Motley Fool contributor Grace Alvino 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 Telstra Group and Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are on the lookout for some new portfolio additions, then it could be worth hearing what analysts are saying about the ASX shares named below, courtesy of The Bull.

Are they bullish, bearish, or something in between? Let’s find out.

Commonwealth Bank of Australia (ASX: CBA)

Shaw and Partners has given its verdict on this banking giant. Unfortunately, it thinks CBA shares are a sell this week.

The main reason for this is its current valuation. The broker sees little margin for error and better value elsewhere in the sector. It said:

The CBA remains a high quality banking operation, but its valuation is increasingly difficult to justify. The stock trades at a significant premium to global peers despite a mature domestic banking market and limited growth potential, in my view.

While earnings remain stable, we see better value elsewhere in the sector. We believe the current share price leaves little margin for error, supporting a sell recommendation on valuation grounds. The shares have risen from $158.74 on February 10 to trade at $181.65 on April 9.

Reece Ltd (ASX: REH)

Over at DP Wealth Advisory, its analysts have named this plumbing parts company’s shares as a sell.

It highlights supply and demand pressures as a reason to be cautious, as well as a premium valuation. It explains:

This plumbing supplies company operates in Australia, New Zealand and the United States. It’s exposed to cyclical forces within the building industry, including supply and demand pressures. While sales revenue was up 6 per cent in the first half of 2026 compared to the prior corresponding period, net profit after tax fell 20 per cent. EBITDA declined 6 per cent in response to elevated costs.

The company is re-investing to drive longer term cost efficiencies and growth opportunities. However, the company is trading on a lofty price/earnings ratio compared to peers. In my view, Reece is exposed to supply chain and cost issues if the Middle East turns into a prolonged conflict.

Wesfarmers Ltd (ASX: WES)

Shaw and Partners is a little more positive on Bunnings owner Wesfarmers. It has named its shares as a hold this week.

While the broker is a fan of the company, it believes its share price is fully valued now and offers only limited upside. It said:

This company continues to deliver reliable earnings through its diversified portfolio of quality retail and industrial businesses. Company net profit after tax rose 9.3 per cent in the first half of 2026 when compared to the prior corresponding period. Revenue was up 3.1 per cent. Hardware giant Bunnings lifted total sales by 4 per cent. Total sales at Officeworks were up 4.7 per cent.

Strong balance sheet discipline and management execution support resilience across economic cycles. Much of this is already reflected in the share price, limiting near term upside, in my view. While it remains a high quality core holding, we believe a hold rating is appropriate until a lower share price or growth catalyst emerges.

The post Buy, hold, sell: CBA, Reece, and Wesfarmers shares appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend shares I’d buy for reliable passive income
• ASX 200 shares rip with financials leading a remarkable recovery last week
• How to build a winning 10 ASX share portfolio from scratch in 2026
• If I invest $8,000 in CBA shares, how much passive income will I receive in 2027?
• Why I think CBA shares are a top buy with $5,000

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 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.

Viva Energy Group Ltd (ASX: VEA) shares are pushing higher on Monday.

In mid-afternoon trade, the Viva Energy share price is up 3.19% to $2.59. That is comfortably outperforming the S&P/ASX 200 Index (ASX: XJO), which has opened lower as oil prices jumped following the collapse of US-Iran talks over the weekend.

The gain extends Viva Energy’s strong 2026 run, with the stock now up about 26% year to date.

The move appears to reflect both stronger crude prices and a company-specific accounting update. While negative on the surface, the issue looks manageable against the size of the business.

Let’s dive right in.

Oil surge gives refiners and fuel retailers a lift

A key driver today is the rebound across ASX energy stocks. That follows brent crude pushing back above US$101 a barrel amid renewed geopolitical tensions in the Middle East.

The move has lifted refiners and downstream fuel businesses, with Viva among the sector’s stronger performers in Monday trade.

That makes sense given Viva’s exposure across refining, wholesale fuel supply, and its national convenience and fuel retail network.

Higher energy prices, such as natural gas, are also giving the sector an extra lift.

Earlier in the session, Viva was among the ASX 200’s better performers, rising about 6.5% before easing back toward its current gain.

ASIC review adds a $25 million impairment hit

Separately, The Australian reported that Viva will take an additional $25 million impairment charge tied to the way some of its petrol station assets were valued.

According to the report, ASIC challenged the company’s previous approach of grouping certain convenience retail sites together for impairment testing instead of assessing them individually.

The revised treatment increases Viva’s total retail site impairment charge for the 2025 financial year.

With a market capitalisation of roughly $4.25 billion and a network of about 900 stores and 1,300 service stations nationally, the adjustment is unlikely to worry investors too much.

Instead, the market may be treating it as an accounting clean-up rather than anything linked to underlying trading.

Foolish Takeaway

Today’s gain in Viva Energy shares appears to be driven more by the oil rebound and stronger sector sentiment than the ASIC charge.

The extra $25 million write-down is not ideal. Even so, investors seem more focused on firmer oil prices and earnings support.

With the shares already up 26% this year, the next key drivers are likely to be oil prices, refining spreads, and fuel demand.

The post Oil is surging and this ASX fuel stock is one of Monday’s winners appeared first on The Motley Fool Australia.

More reading

• ASX 200 energy shares whipsaw amid fragile ceasefire
• ASX shares to watch as oil price crashes
• These were the best-performing ASX 200 shares in March
• 4 ASX 200 energy shares rated buys
• 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.

Market pullbacks and corrections can feel uncomfortable in the moment. But for long-term investors, they are often where the best opportunities are found.

The key is knowing what you want to buy before prices fall.

Here are three ASX 200 shares I would be ready to buy immediately if the market dips again.

Goodman Group (ASX: GMG)

The ASX 200 share I would be watching closely is Goodman Group.

At first glance, Goodman might look like a traditional property company. But its real strength lies in logistics and data infrastructure.

The group develops and manages high-quality industrial properties, many of which are critical to ecommerce supply chains and increasingly, data centre ecosystems.

As demand for digital infrastructure grows, Goodman is positioning itself to benefit from trends like cloud computing and artificial intelligence.

A market pullback could provide a chance to gain exposure to these structural themes through a proven operator.

ResMed Inc (ASX: RMD)

Another ASX 200 share I would target is ResMed.

ResMed sits at the intersection of healthcare and technology, focusing on sleep apnoea devices and connected care solutions. What makes it particularly interesting is how its business model is evolving beyond hardware.

Each device sold opens the door to long-term recurring revenue through masks, software, and patient monitoring platforms.

Concerns around weight loss drugs briefly pressured sentiment, but the reality is that sleep apnoea remains underdiagnosed globally and management sees the drugs as supporting demand rather than limiting it.

If the share price were to dip again, it could be an opportunity to pick up a high-quality global healthcare leader at a more attractive valuation.

Xero Ltd (ASX: XRO)

A third ASX share I would buy on weakness is Xero.

Xero has already built a massive global platform for small business accounting, but the next phase of its growth could be even more interesting.

Rather than just adding new users, the company is focused on deepening its ecosystem. Payments, payroll, lending integrations, and analytics all create additional value for customers and increase revenue per user.

This shift means Xero’s growth is becoming more efficient and potentially more predictable. And while there are concerns that AI will disrupt its business, management doesn’t believe this will be the case. In fact, it expects AI to support the business and has recently announced a deal with AI giant Anthropic.

If volatility returns and the share price pulls back, it could present a compelling entry point into a business with strong long-term potential.

The post 3 ASX 200 shares I would buy immediately if the market dips again appeared first on The Motley Fool Australia.

More reading

• Why these ASX 200 stocks could be perfect for buy and hold investors
• Leading brokers name 3 ASX shares to buy today
• Down 55%, are Xero shares the most overlooked bargain now?
• How to build a winning 10 ASX share portfolio from scratch in 2026
• Brokers name 3 ASX shares to buy right now

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

Building passive income from ASX shares is not just about chasing the highest dividend yield.

For me, it is more about reliability. I want businesses that can keep generating cash through different conditions and continue paying dividends over time.

That usually means focusing on companies with stable demand, strong market positions, and the ability to grow earnings, even if only gradually.

Here are three ASX dividend shares I would consider for dependable passive income.

HomeCo Daily Needs REIT (ASX: HDN)

HomeCo Daily Needs REIT is an interesting way to access income through property, but with a very specific focus.

It owns large-format retail centres that are anchored by tenants providing everyday services. This includes supermarkets, medical centres, and discount retailers. These are places people tend to visit regularly, regardless of the broader economic backdrop.

What I find appealing is how that translates into rental income. When tenants are tied to essential spending, it can support more stable occupancy and cash flow. That, in turn, underpins distributions to investors.

The yield on offer here is attractive, but for me, it is the nature of the underlying assets that stands out. It is property, but not the kind that relies heavily on discretionary retail.

Coles Group Ltd (ASX: COL)

Coles is a business that tends to operate quietly in the background, but I think that is part of its appeal.

Grocery retail is highly competitive, but it is also incredibly consistent. People continue to spend on food and essentials, which gives the business a steady revenue base.

What I like here is the operational focus. Margins in supermarkets are not large, so execution matters. Over time, improvements in supply chains, store formats, and private label offerings can make a real difference to profitability. Coles is an expert at this.

For income investors, that consistency in earnings is key. It supports dividends that may not be the highest on the market, but are generally reliable.

Wesfarmers Ltd (ASX: WES)

Wesfarmers offers a slightly different take on income. It is not a high-yield stock, but I think it brings something important to an income-focused approach, and that is resilience.

Its portfolio of businesses, led by Bunnings and Kmart, gives it exposure to different parts of the economy. That diversification can help smooth earnings over time.

What stands out to me is how the company allocates capital.

It has a track record of investing in growth areas while still returning cash to shareholders through dividends. That balance can support both income today and the potential for higher dividends in the future.

For me, Wesfarmers is a way to combine income with long-term stability.

Foolish takeaway

Reliable passive income usually comes from businesses that can keep performing, rather than those offering the highest headline yields.

HomeCo Daily Needs REIT provides income backed by essential property assets, Coles delivers steady earnings from everyday spending, and Wesfarmers adds diversification and long-term resilience.

The post 3 ASX dividend shares I’d buy for reliable passive income appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: CBA, Reece, and Wesfarmers shares
• How to build a winning 10 ASX share portfolio from scratch in 2026
• How I’d invest $15,000 in ASX shares right now
• $5,000 invested in Coles shares 10 days ago is now worth…
• How to invest $300 a month in Australian shares to target a $50,000 annual second income

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 HomeCo Daily Needs REIT and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With so many shares to choose from on the Australian share market, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Megaport Ltd (ASX: MP1)

According to a note out of Citi, its analysts have retained their buy rating and $14.65 price target on this network solutions company’s shares. The broker highlights that demand for GPU rentals has been surging, which bodes well for its Latitude business. This is especially the case given how it has been increasing prices, which should be a boost to annual recurring revenue. In fact, Citi believes that there is upside risk to forecasts for 2026 and 2027. Looking ahead, the broker believes there is a strong chance that management will increase its FY 2026 guidance at an event. The Megaport share price is trading at $6.89 on Monday afternoon.

Northern Star Resources Ltd (ASX: NST)

Another note out of Citi reveals that its analysts have retained their buy rating on this gold miner’s shares with an improved price target of $29.70. The broker has been busy updating its gold coverage to reflect stronger prices. This has led to a significant increase in earnings estimates for the gold mining industry. Overall, the broker is positive and sees value in Northern Star shares at current levels. So much so, the gold miner is one of its preferred picks in the industry at present. The Northern Star share price is fetching $23.68 at the time of writing.

ResMed Inc. (ASX: RMD)

Analysts at Ord Minnett have retained their buy rating on this sleep disorder treatment company’s shares with a trimmed price target of $41.40. According to the note, the broker is expecting ResMed to deliver double-digit earnings and revenue growth in FY 2026. It then expects this trend to continue through to at least FY 2028. Ord Minnett believes this will leave ResMed with a significant cash balance, which it suspects could lead to further capital management activities. Overall, it feels this makes the company a top option for investors at current levels. The ResMed share price is trading at $32.22 this afternoon.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• Why A2 Milk, Metallium, Northern Star, and St Barbara shares are sinking today
• 5 things to watch on the ASX 200 on Monday
• Buy, hold, sell: Life360, Northern Star, and Sigma shares
• 2 ASX gold stocks to buy next week
• Are Northern Star shares a cheap buy?

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in Megaport and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Life360 Inc (ASX: 360) shares have slipped back toward fresh lows. During morning trade, the battered ASX tech stock fell to a 52-week low of $17.12 before clawing back some ground in the afternoon to $17.97 at the time of writing.

That still leaves it down 7.8% on the day and extends a brutal 65% decline over the past six months.

It’s left investors asking a simple question: Is something actually broken, or is this just another wave of tech sector volatility washing through the market?

Why are Life360 shares falling?

The answer, for now, looks more nuanced than alarming.

There hasn’t been a single company-specific shock driving the move of Life360 shares. No major profit warning. No headline-grabbing downgrade. Instead, the weakness appears to be the result of multiple smaller forces hitting at once — and they’re all familiar ones for high-growth tech stocks.

Start with sentiment. Life360 is still treated by the market as a high-growth technology name, which means it rises fast when optimism is high and falls just as quickly when risk appetite fades.

Right now, that appetite is fading again. Rising interest rate expectations, ongoing valuation compression across growth stocks, and renewed caution around software-style business models have all weighed on sentiment across the sector.

Life360 hasn’t been immune to that rotation.

Analyst snapshot

Then there’s the analyst backdrop.

While there hasn’t been a dramatic fresh downgrade triggering today’s move, the tone from brokers on Life360 shares has become more cautious in recent weeks. Price targets have been nudged lower in some cases, reflecting a more conservative view on near-term growth expectations.

Importantly, this isn’t a call that the business is deteriorating. It’s more about slowing the pace of upside after a strong run. That distinction matters. The market, however, tends to react less to nuance and more to momentum. When sentiment turns cautious, even solid companies can drift lower as buyers step back.

Short-term uncertainty

Company-specific developments haven’t helped the Life360 share price either.

Life360 has recently been reshaping parts of its business, including restructuring efforts tied to artificial intelligence adoption and operational efficiency. While these moves are aimed at long-term scalability, they can introduce short-term uncertainty around margins and execution. Markets don’t always reward transition phases, even when they are strategically sound.

At the same time, investors are still focused on one critical question: How efficiently can Life360 convert user growth into higher-margin subscription revenue? That remains the key battleground for valuation.

Foolish Takeaway

Put it all together, and the picture becomes a bit clearer. This isn’t a story of collapsing fundamentals. It’s a story of cooling expectations meeting fragile sentiment around Life360 shares.

The business is still growing, still expanding its ecosystem, and still pushing deeper into its core family safety and location platform. But the market is no longer willing to price perfection into that growth story.

Life360’s move to fresh lows looks less like a breakdown and more like a re-rating in real time. The business hasn’t changed dramatically, but investor expectations clearly have.

And in today’s market, that can be enough to push even strong growth stories lower before they find their footing again.

The post Why are Life360 shares sliding to fresh lows today? appeared first on The Motley Fool Australia.

More reading

• $5,000 to invest? 3 ASX shares that could be no-brainer buys right now
• How to build a winning 10 ASX share portfolio from scratch in 2026
• Buy, hold, sell: Life360, Northern Star, and Sigma shares
• Here’s why Life360 shares could rise a massive 75%
• 5 things to watch on the ASX 200 on Friday

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 Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you had $5,000 ready to invest today, where would you put it?

Markets have been volatile, sentiment has swung sharply, and a number of high-quality ASX shares are still trading well below their peaks. For long-term investors, that combination can open the door to attractive opportunities.

Here are three ASX shares that could be no-brainer buys right now.

CSL Ltd (ASX: CSL)

The first ASX share that looks very attractive at current levels is biotech leader CSL.

It is not often that a company of CSL’s calibre trades at a discount, but recent headwinds have created that setup. Concerns around the underperformance of its key CSL Behring business, a sudden CEO exit, and broader market sentiment have weighed on the CSL share price.

However, these challenges appear largely short-term rather than structural. CSL remains a global leader in plasma therapies, with demand underpinned by ageing populations and rising healthcare needs. These are long-term drivers that are unlikely to change.

As its performance normalises and operational efficiencies improve, there is a clear pathway for margins to recover.

For patient investors, this could be one of those rare windows to buy a world-class business at a more attractive price.

Life360 Inc (ASX: 360)

Another ASX share that could be worth considering is location technology company Life360.

Life360 is transitioning from just a user growth story into both a monetisation and user growth story. Its platform continues to grow globally, but the focus is now on improving revenue per user through subscriptions, partnerships, and new services.

At the same time, profitability is improving as the company demonstrates operating leverage.

This is often the phase where growth companies begin to rerate, as investors gain confidence in the sustainability of earnings.

If that shift in perception continues, the current share price may prove to be an attractive entry point.

WiseTech Global Ltd (ASX: WTC)

A final ASX share that could be a strong buy is WiseTech Global.

WiseTech is building what is increasingly becoming the operating system for global logistics. Its CargoWise platform is deeply embedded across supply chains, making it highly difficult for customers to replace.

The interesting part of the story right now is not the business itself, but how it is being priced.

Like many growth names, WiseTech has experienced volatility as investors reassess valuations and consider the impact of emerging technologies. Yet the company continues to expand globally, win larger customers, and deepen its product suite.

With logistics becoming more complex and digitised, WiseTech’s long-term opportunity remains substantial.

The post $5,000 to invest? 3 ASX shares that could be no-brainer buys right now appeared first on The Motley Fool Australia.

More reading

• Why are Life360 shares sliding to fresh lows today?
• 5 ASX 200 shares that could be a bargain right now
• Better buy? CSL vs Rio Tinto shares
• How to build a winning 10 ASX share portfolio from scratch in 2026
• Buy, hold, sell: Life360, Northern Star, and Sigma shares

Motley Fool contributor James Mickleboro has positions in CSL, Life360, and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Life360, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Life360 and WiseTech Global. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Vanguard Australian Shares Index ETF (ASX: VAS) has a number of positives going for it at the moment, which could make it a good investment.

Plenty of investors may already be utilising this exchange-traded fund (ETF) with a dollar-cost averaging (DCA) strategy, so short- to medium-term issues may not matter when choosing to invest in it.

But for investors with a wide range of investment choices, there are supportive factors that could help the VAS ETF deliver good returns relative to many other ASX ETFs or individual companies. Let’s run through my thoughts on the appeal.

Bank exposure benefits from rising interest rates

ASX bank shares make up a significant part of the S&P/ASX 300 Index (ASX: XKO) – that’s the index that the VAS ETF tracks. At the end of February 2026, approximately a third of the fund was invested in ASX bank shares.

We’re talking about names like Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), ANZ Group Holdings Ltd (ASX: ANZ), National Australia Bank Ltd (ASX: NAB), Macquarie Group Ltd (ASX: MQG), Bank of Queensland Ltd (ASX: BOQ), and Bendigo and Adelaide Bank Ltd (ASX: BEN).

So, whatever happens with banks plays an important role in the index’s overall return.

Elevated inflation and higher interest rates are a headwind for plenty of companies’ earnings and their share prices. However, for banks, it could be a net positive.

While it may lead to higher arrears and bad debts with a few borrowers, the potential uplift in the net interest margin (NIM) is compelling. A higher RBA cash rate should mean banks can earn a higher loan interest rate on lending out transaction account fund balances (which pay little/no interest to customers).

Following the earnings performance of banks during the 2022 to 2024 period, I think this could be a useful time to have ASX bank share exposure.

Commodity price growth

Materials make up just over a quarter of the VAS ETF, with names like BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), Fortescue Ltd (ASX: FMG), South32 Ltd (ASX: S32), and ASX gold shares all potential beneficiaries. ASX shares related to energy, like ASX lithium shares, ASX coal shares, and Woodside Energy Group Ltd (ASX: WDS), could also see rising earnings.

I don’t know how long inflation will persist or how high it will go, but I think it is a longer-term tailwind for resource prices.

As an index with significant exposure to ASX mining shares, I think the VAS ETF could be a beneficiary in the foreseeable future.

Good dividend yield

The VAS ETF could be an appealing option for passive income, as it offers a stronger dividend yield amid rising household costs.

At the end of February 2026, the VAS ETF had a dividend yield of 2.9%, with franking credits a bonus on top of that.

If bank and miner dividends can grow amid rising profits, then the Vanguard Australian Shares Index ETF could deliver rising distributions for investors.

The post 3 reasons why the Vanguard Australian Shares Index ETF (VAS) could perform strongly appeared first on The Motley Fool Australia.

More reading

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• How long does it take to become a millionaire with ASX shares?
• Own ASX VAS or other Vanguard ETFs? Dividends just announced
• Is it too late to start investing in ASX shares in your 40s?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank and 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.

Origin Energy Ltd (ASX: ORG) shares are edging lower today.

Shares in the S&P/ASX 200 Index (ASX: XJO) energy provider closed on Friday trading for $12.38. During the Monday lunch hour, shares are swapping hands for $12.28 each, down 0.8%.

For some context, the ASX 200 is down 0.5% at this same time.

Taking a step back, Origin Energy shares have gained 21.7% over 12 months, handily outpacing the 15.1% one-year gains posted by the benchmark index.

And that doesn’t include the 60 cents a share in fully-franked dividends the company has paid eligible stockholders over this time. Origin Energy stock trades on a fully-franked trailing dividend yield of 4.9%.

And looking ahead, Shaw and Partners’ Jed Richards forecasts more outperformance to come (courtesy of The Bull).

Here’s why.

Should you buy Origin Energy shares today?

“Origin combines an attractive income profile with leveraged exposure to Australia’s evolving energy market,” Richards said.

Citing the first two reasons he’s bullish on Origin Energy shares, Richards said, “The company benefits from scale in electricity generation and retailing, while its yield remains appealing in a market still sensitive to income certainty.”

On the risk front, he added, “That said, regulatory risk and energy price volatility remain key risks.”

And the third reason you might want to buy the ASX 200 energy stock today relates to Australia’s ongoing sustainable energy push.

“We see Origin as well placed to balance defensive income characteristics with longer term opportunities tied to the domestic energy transition,” Richards concluded.

What’s the latest from the ASX 200 energy stock?

Origin Energy reported its half-year results (H1 FY 2026) on 12 February.

Over the six months, the company noted that higher-than-expected earnings in its Energy Markets segment were offset by lower earnings in its Integrated Gas segment and a lower contribution from Octopus Energy.

This saw a 17.5% year-on-year reduction in underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) to $1.589 billion. On the bottom line, underlying profit of $593 million was down 35.8% from H1 FY 2025.

Pleasingly, the ASX 200 energy stock upgraded its full-year underlying Energy Markets EBITDA guidance to between $1.55 billion and $1.75 billion.

“Origin’s first half results are solid, allowing an upgrade to full-year guidance for Energy Markets,” Origin Energy CEO Frank Calabria said.

Calabria added:

Retail performance continued to strengthen, grid-scale batteries added further portfolio flexibility, gas production was steady, and cost management remained disciplined as commodity prices softened.

Origin Energy shares closed up 3.9% on the day of the results release.

The post 3 reasons to buy Origin Energy shares today appeared first on The Motley Fool Australia.

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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 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.