Financial shares led the 11 ASX 200 market sectors with a 1.97% gain last week.

Meanwhile, the benchmark S&P/ASX 200 Index (ASX: XJO) sank 0.95% to finish at 9,005.9 points.

It’s likely that investors buying the dip on bank shares were responsible for last week’s sector rebound after a difficult August.

Three of the four major banks were smashed last month after all of them reported significantly lower mortgage applications since May.

That followed the Federal Government announcing changes to capital gains tax (CGT) and negative gearing in the FY27 Budget.

James Gruber, CommSec Equity Market Strategist, said the financial sector was the worst performer of the August earnings season. 

ASX 200 financial shares lost 6.13% of their value over the month.

That performance left investors feeling wary of how the housing market downturn now underway may impact the banks’ profitability.

Then last week, the Australian Bureau of Statistics (ABS) released economic news that changed the outlook for the banks.

Resilient economy benefits bank stocks

The ABS revealed that gross domestic product (GDP) rose 0.4% in the June quarter and 2.1% over 12 months.

That was stronger than consensus expectations of 0.3% growth in June and 1.8% annual growth, and ahead of the Reserve Bank’s forecast of 1.9% annual growth.

The data raised the chances of another interest rate rise as early as next month, and higher rates can be supportive for bank earnings.

If the banks’ lending rates stay above deposit rates, which is the norm, then a higher cash rate can boost their net interest margins (NIMs).

A stronger economy can also be positive for banks because it typically means stable employment and resilient household spending.

That means people can keep up their repayments on their home loans and other debts with the banks.

Expectations of another rate hike pushed the 3-year government bond yield to 4.82%, and 10-year yields fell to levels not seen since 2011.

This is why the broader ASX 200 had its worst day in three months on the day the GDP data was released, and why it finished the week in the red.

Higher bond yields aren’t great for shares.

When investors can get a pretty high and virtually ‘risk-free’ return from defensive assets like cash or bonds, they can go ‘risk-off’.

That means they are less inclined to invest in shares, which carry a higher risk of capital losses.

Or they might rotate out of growth shares into dividend stocks or blue-chips with reliable earnings (such as the banks!)

This may have also supported ASX 200 bank share prices last week.

As for the rest of the market, 6 of the 11 sectors finished the week in the red.

Let’s recap.

Financial shares led the ASX sectors last week

Commonwealth Bank of Australia (ASX: CBA) shares rose 2.02% to $160.42, recovering some of their 9.9% tumble during August.

Westpac Banking Corp (ASX: WBC) shares lifted 3.13% to $34.96, taking back some of their 8.8% decline last month.

National Australia Bank Ltd (ASX: NAB) shares increased 2.51% to $39.25, pulling back some of their 6.5% loss during earning season.

Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares closed 3.32% higher at $37.95.

The ANZ share price fell just 0.3% last month as investors were impressed with the fruits of a continued reset under CEO Nuno Matos.

Macquarie Group Ltd (ASX: MQG) shares lifted 0.04% to $251.87, recovering a little of their 1% decline last month.

Bendigo and Adelaide Bank Ltd (ASX: BEN) shares rose 0.47% to $10.63, taking back some of their 6.4% fall in August.

Bank of Queensland Ltd (ASX: BOQ) shares lifted 3.89% to $6.68, wiping out their 1.66% dip last month.

Among the investment companies and wealth managers, Magellan Financial Group Ltd (ASX: MFG) shares fell 3.43% to $8.74.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL) shares fell 0.25% to $44.22.

Among the financial services providers, AMP Ltd (ASX: AMP) shares jumped 5.08% to $2.48.

Hub24 Ltd (ASX: HUB) shares fell 3.58% to $73.81 and Netwealth Group Ltd (ASX: NWL) dropped 5.03% to $20.37.

Buy now, pay later company Zip Co Ltd (ASX: ZIP) fell 3.94% to $2.44 per share.

Among the ASX 200 insurance shares, Insurance Australia Group Ltd (ASX: IAG) rose 2.55% to $8.05.

The Suncorp Group Ltd (ASX: SUN) share price leapt 5.04% to $19.37.

Financial companies are among 40 ASX shares with ex-dividend dates next week.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sector	Change last week
Financials (ASX: XFJ)	1.97%
Consumer Staples (ASX: XSJ)	0.88%
Communication (ASX: XTJ)	0.77%
Healthcare (ASX: XHJ)	0.43%
A-REIT (ASX: XPJ)	0.02%
Energy (ASX: XEJ)	(0.74%)
Utilities (ASX: XUJ)	(0.83%)
Industrials (ASX: XNJ)	(1.2%)
Consumer Discretionary (ASX: XDJ)	(1.79%)
Materials (ASX: XMJ)	(4.64%)
Information Technology (ASX: XIJ)	(5.21%)

The post ASX 200 bank shares led a financial sector rebound last week appeared first on The Motley Fool Australia.

More reading

• How to build a winning ASX share portfolio and create wealth
• If I invest $15,000 in CBA shares, how much passive income will I receive in 2027?
• Buy, hold, sell: South32, Australian Finance Group and Magellan shares
• Buy, hold, sell: Wesfarmers, Endeavour, Macquarie shares
• 8 ASX shares upgraded by the professionals post-results this week

Motley Fool contributor Bronwyn Allen has positions in Magellan Financial Group and Zip Co. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24, Macquarie Group, Netwealth Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank, Netwealth Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Hub24 and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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.

More reading

• IVV vs NDQ ETF: Which is the better buy?
• How much is needed in superannuation to target a $60,000 annual passive income?
• These are the most popular ASX ETFs – Which has performed best in 2026?
• ASX shares investors are getting younger and trading more often: CBA report
• How I’d use ASX shares to build wealth outside my superannuation

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.

More reading

• 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?
• Australia’s economy just grew faster than expected. What does this mean for ASX shares?

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.