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.

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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.

There are countless investing strategies that investors can focus on to generate wealth. 

Two of the most common are growth and value. These two strategies are often viewed as opposing investment styles.

However Global X offers ASX ETFs that combine the best of both worlds.

Growth vs Value

Growth investors seek companies with above-average revenue and earnings growth. 

The attraction is that businesses can sustainably grow their earnings and have the potential to compound shareholder value over time. 

However, it can come with a price. 

As investors become increasingly optimistic about a company’s prospects, its valuation can rise well ahead of its fundamentals.

If expectations are not met, even a high-quality company can experience a significant decline. 

On the other side of the coin sits value. 

Value investors take a different approach, seeking companies that appear inexpensive relative to their fundamentals. 

The challenge is distinguishing between a genuine opportunity and a value trap. 

A company may look cheap because its earnings are deteriorating, profitability is falling or its competitive position is weakening. 

Balancing both using Growth at a Reasonable Price (GARP)

According to Global X, GARP seeks to navigate between these two extremes. 

The opportunity lies where these characteristics intersect. 

GARP doesn’t just blindly pay for growth or buy what looks cheap. It is about finding businesses where the growth opportunity is supported by quality fundamentals and where the price remains reasonable.

Rather than trying to predict which factor will lead the market next, GARP combines several characteristics within a single framework. 

This can provide advisers with a more balanced approach to factor investing, seeking exposure to companies with sustainable earnings growth while maintaining discipline around valuation and quality.

How to invest with GARP principles using ASX ETFs

For investors looking to apply GARP strategy to their own portfolio, there are several ASX ETFs to consider. 

The first is the Global X S&P World Ex Australia GARP ETF (ASX: GARP). 

It provides exposure to approximately 250 global companies that meet the GARP criteria, combining growth, quality and valuation characteristics. 

Since launching in September 2024, GARP has demonstrated the potential of the approach in live market conditions, ranking among the stronger-performing factor strategies over the period.

For investors looking to apply the same framework to Australian shares, an option to consider is the relatively new Global X S&P Australia GARP ETF (ASX: GRPA). 

It provides exposure to approximately 50 Australian companies selected for their combination of growth, financial strength and reasonable valuations. 

It also applies a systematic approach to identifying companies where these characteristics align, but within the Australian equity market.

The post How to balance growth and value using these 2 ASX ETFs 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.

The best exchange traded funds (ETFs) are not always the ones making the most noise today.

For long-term investors, a strong buy and hold pick should offer exposure to markets, industries, or businesses that can keep becoming more important over time.

With that in mind, here are three ASX ETFs that could be worth considering.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The Betashares Asia Technology Tigers ETF gives investors exposure to large technology and online retail companies across Asia, excluding Japan.

This is an interesting part of the market because Asia is both a major producer and consumer of technology.

The region is home to key semiconductor manufacturers, hardware businesses, ecommerce platforms, digital entertainment companies, and internet giants. That means investors are not just buying one narrow idea. They are gaining exposure to several parts of Asia’s digital economy.

Holdings include SK Hynix, Samsung Electronics, and Taiwan Semiconductor Manufacturing Co (NYSE: TSM).

This could make the Betashares Asia Technology Tigers ETF a strong long-term option for investors who want technology exposure beyond the usual US names.

Betashares Global Cybersecurity ETF (ASX: HACK)

The Betashares Global Cybersecurity ETF could be another ASX ETF to look at for the long term.

Cybersecurity is becoming one of those expenses that businesses cannot easily avoid.

Companies can delay some technology projects when conditions are tough. But protecting customer data, payment systems, cloud networks, devices, and internal systems is harder to postpone.

That gives this sector a different feel to many other growth themes. The Betashares Global Cybersecurity ETF owns companies involved in areas such as network security, endpoint protection, identity management, cloud security, and threat detection.

This includes Palo Alto Networks (NASDAQ: PANW), Fortinet (NASDAQ: FTNT), and CrowdStrike (NASDAQ: CRWD).

This ETF can be volatile, but the need for better digital protection is unlikely to disappear.

Vanguard Global Technology Index ETF (ASX: VTEK)

A third ASX ETF that could be a strong buy and hold pick is the Vanguard Global Technology Index ETF.

This fund gives investors exposure to around 300 large and mid-cap technology stocks across developed and emerging markets.

That makes it broader than a fund focused only on one exchange or one technology theme.

The Vanguard Global Technology Index ETF provides exposure to companies involved in chips, software, hardware, digital platforms, cloud infrastructure, and other parts of the global technology sector.

Its holdings include NVIDIA (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT).

For investors who believe technology will keep taking a larger role in business and everyday life, this ETF offers a simple way to invest in that long-term shift.

The post Why these ASX ETFs could be strong long-term picks appeared first on The Motley Fool Australia.

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• 3 Betashares ETFs I want to buy
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• 3 exciting ASX ETFs to watch
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• 3 amazing ASX ETFs for Aussie investors in September

Motley Fool contributor James Mickleboro has positions in Betashares Capital – Asia Technology Tigers Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Global Cybersecurity ETF, CrowdStrike, Fortinet, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Palo Alto Networks. The Motley Fool Australia has recommended Apple, CrowdStrike, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.