Australians hold more money in ASX ETFs than at any point in the market’s history. Three funds in particular stand out.

Between them, VAS, VGS, and NDQ manage more than $52 billion.

Popularity and performance are not the same thing, though.

So here is how the most widely held funds on the local market have actually done over the last year.

1. Vanguard Australian Shares Index ETF

The Vanguard Australian Shares Index ETF (ASX: VAS) is the largest fund on the ASX.

The ETF held $26.19 billion as of 31 July and charges just 0.07% per year, which works out to $7 annually on a $10,000 holding.

The fund tracks the S&P/ASX 300 Index (ASX: XKO) across 321 holdings.

Its total return over the twelve months to 31 July was 5.79%, of which 3.13% arrived as distributions.

Across a decade, the ETF has compounded at 8.92% a year.

Those figures are quite respectable, but not as strong as the next two.

2. Vanguard MSCI Index International Shares ETF

The Vanguard MSCI Index International Shares ETF (ASX: VGS) is the international counterweight most Australians own alongside VAS.

The ETF manages $17.21 billion and charges 0.18% per year for exposure to 1,247 companies across developed markets.

The United States accounts for 73.2% of the portfolio, followed by Japan at 5.8% and the United Kingdom at 3.7%.

VGS returned 10.47% over the same twelve months and 13.79% a year over the past decade.

3. Betashares Nasdaq 100 ETF

The Betashares Nasdaq 100 ETF (ASX: NDQ) is the most aggressive of the three ETFs, but also the most expensive at 0.48% in fees a year.

The fund holds roughly $8.7 billion and buys the 100 largest non-financial companies listed on the Nasdaq.

Information technology represents 58.2% of the fund, with communication services at 13.7% and consumer discretionary at 11.2%.

The fund’s trailing distribution yield is only 1.5%, so the fund’s return comes primarily as capital growth.

Over the past twelve months, NDQ has returned roughly 12%, which puts it narrowly ahead of the field.

Which of these ASX ETFs performed best?

The differences in performance are not really about fund selection, but rather reflect a year in which American technology earnings kept growing as the Australian index leaned on slower-growth banks and miners.

A softer Australian dollar flattered both offshore funds along the way, since their assets are unhedged.

Foolish takeaway

One year of performance tells you almost nothing about which of these ASX ETFs deserves your money.

The ten-year numbers are far more instructive: I would still start with VAS for franking credits and VGS for a strong geographic spread.

NDQ is the satellite holding. With 58% of holdings in the technology sector, this fund is a concentrated bet and carries more risk than the other three.

The post These are the most popular ASX ETFs. Which has performed best over the last year? appeared first on The Motley Fool Australia.

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Motley Fool contributor Mark Verhoeven 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 BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended 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.

Commonwealth Bank of Australia (ASX: CBA) shares are among the most popular ASX dividend options because of the company’s perceived stability and dividend yield.

However, the ASX bank share doesn’t usually have the highest dividend yield of its major peers, including National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC) and ANZ Group Holdings Ltd (ASX: ANZ).

But, what CBA lacks in dividend yield, it has made up for with dividend stability and growth over the last decade and a half.

Commonwealth Bank has grown its payout each year since the COVID-impacted year of 2020.

The recent FY26 result was a great example of the bank’s ability to generate larger earnings and dividends.

In FY26, CBA decided to hike its annual dividend per share by 4% to $5.05 following a 8% rise in statutory net profit to $10.9 billion and a 7% rise in cash net profit to $11 billion.

But, in this article, we’re not thinking about FY26 payments, we’re looking at the FY27 annual dividend, which will be paid in 2027.

2027 dividend projection for owners of CBA shares

According to the projection on CMC Invest, the ASX bank share is projected to pay an annual dividend per share of $5.20 in the 2027 financial year.

At the time of writing, that forecast translates into a dividend yield of 3.3% excluding franking credits and a grossed-up dividend yield of 4.7%, including franking credits.

If someone were to invest $15,000 in Commonwealth Bank, they would be able to buy 94 CBA shares (with a little bit of money left over).

With those 94 CBA shares, investors could receive $488.80 of passive income cash and $698.29 overall, including the franking credits.

Is this a good time to invest in Commonwealth Bank?

According to CMC Invest, there have been eight analyst rating calls on the business in the last three months.

Of those eight, all of them were a sell rating. So, the investment professionals are very negative on the appeal of the company’s valuation right now.

The average price target of those eight ratings is $122.33. That means, collectively, those analysts are predicting the CBA share price could fall by 23% within the next year. The Commonwealth Bank share price has drifted lower since early August, so we’ll see what happens next.

For now, there seem to be better ASX shares out there that Australians can buy.

The post If I invest $15,000 in CBA shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

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• What’s driving the ASX 200 higher today?
• ASX shares investors are getting younger and trading more often: CBA report
• Westpac shares are under pressure: Is it time to buy the dip?
• A broker just put a sell rating on CBA shares. Is Australia’s biggest bank finally too expensive?
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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 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.

Coles Group Ltd (ASX: COL) is one of the first businesses I think of when looking for defensive qualities on the ASX.

Australians still need groceries when economic conditions become difficult, giving the supermarket giant a dependable source of demand.

I think there is also enough growth ahead to make Coles more than simply a defensive holding.

Everyday demand is a major strength

Coles serves millions of customers buying food and household essentials each week.

That gives the business a level of resilience that companies dependent on discretionary spending cannot always match.

Consumers may change what they put in their baskets when budgets become tighter, but grocery spending itself remains difficult to avoid.

Coles also has enormous scale across stores, distribution, online shopping, and its Flybuys loyalty program. I think those customer relationships and infrastructure help reinforce its position in a highly competitive industry.

For investors looking for a share that could hold up reasonably well across a range of economic conditions, those qualities are attractive to me.

There is still a growth story

What strengthens the investment case for me is the opportunity for Coles to improve an already enormous business.

The company has invested heavily in automated distribution centres and online fulfilment infrastructure.

These investments can help Coles move products through its growing network more efficiently, improve availability, and handle growing online demand.

Small operational improvements can become meaningful when applied across a supermarket business of this size.

The earnings forecasts suggest analysts expect those efforts to translate into continued progress.

According to CommSec consensus estimates, earnings per share are forecast to rise from 98.2 cents in FY27 to $1.05 in FY28 and $1.15 in FY29.

That represents cumulative growth of around 17% over those two years.

What about the price?

At around $23.39, Coles trades on a PE ratio of approximately 24 times forecast FY27 earnings, falling to just over 20 times FY29 earnings.

I would not call that cheap. However, I think a premium can be justified for a business offering resilient demand alongside a positive earnings outlook.

Income investors also have something to consider. CommSec consensus estimates point to fully franked dividends of 83.5 cents per share in FY27, 88.8 cents in FY28, and 97.4 cents in FY29.

That starts with a forward dividend yield of around 3.6%, with the potential for the income to increase over time if those forecasts are achieved.

Foolish takeaway

Coles remains one of my preferred defensive ASX shares.

Its grocery business gives it dependable demand, while automation, online shopping, and an expanding Australian population provide opportunities to keep growing.

Coles shares carry a premium, but I think the quality of the business and forecast earnings growth make that price reasonable.

For investors seeking resilience without sacrificing the prospect of long-term growth, I think Coles remains a strong buy.

The post Is Coles still one of the best defensive ASX shares to own? appeared first on The Motley Fool Australia.

More reading

• Coles vs Woolworths shares: One I’d buy and one I’d sell
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• Own BHP, Woodside or Coles shares? Here’s what investors should know

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 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.