Australian investors continue to funnel billions of dollars into some of the ASX’s most popular exchange-traded funds (ETFs), with Vanguard ETFs and Betashares dominating many portfolios.

For investors building a portfolio for the long haul, these funds can provide a simple way to gain exposure to hundreds of companies. Vanguard Australian Shares Index ETF (ASX: VAS) and BetaShares Australia 200 ETF (ASX: A200) target the local market, while Vanguard MSCI Index International Shares ETF (ASX: VGS) and BetaShares Nasdaq 100 ETF (ASX: NDQ) give investors access to overseas markets.

But which funds have delivered the goods?

VAS: the Australian market workhorse

The top Vanguard ETF offers exposure to the 300 largest companies listed on the ASX, providing investors with a straightforward way to own a slice of corporate Australia.

Its recent performance has been underwhelming, falling around 3% over the past month and 1% over 12 months. But short-term performance isn’t necessarily the main attraction.

VAS provides broad exposure across Australian industries and a relatively attractive income stream. Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) are among its largest holdings, each representing more than 10% of the portfolio.

The fund’s dividend yield is around 3.7%, although investors should remember that Australian equities are heavily concentrated in financials and resources.

A200: low-cost Australian exposure

BetaShares Australia 200 ETF (ASX: A200) offers a similar proposition to the Vanguard ETF VAS, tracking the 200 largest Australian companies.

It has also struggled recently, down around 3% over the past month and 1% over 12 months.

Where A200 really stands out is cost. Its management fee is just 0.04%, while funds under management have climbed to around $11 billion.

Like VAS, its largest holdings include CBA and BHP, so investors face a similar concentration risk.

For a low-cost Australian core holding, however, A200 remains difficult to overlook.

VGS: taking the portfolio global

VGS tackles one of the biggest drawbacks of an Australia-only portfolio: concentration.

The Vanguard ETF provides exposure to developed international markets and has returned around 8% over the past year.

The US accounts for a significant portion of the portfolio, with technology heavyweights including Apple Inc (NASDAQ: AAPL) and Nvidia Corp (NASDAQ: NVDA) among its largest holdings, each representing more than 5% at the time of writing.

That international diversification opens the door to industries and companies that have a much smaller presence on the ASX.

NDQ: the growth bet

If A200 is the steady option, ASX: NDQ is the higher-octane alternative.

NDQ has gained around 11% over one year and an impressive 75% over five years, powered by its exposure to technology and other US growth companies.

Nvidia and Apple are among its biggest holdings, while the fund’s 0.48% management fee is considerably higher than the 0.18% that Vanguard ETF VGS charges.

After such a powerful run, the question for investors is whether they’re buying tomorrow’s growth or yesterday’s winners.

Foolish takeaway

There isn’t one obvious winner. A200 has the cost advantage, VAS offers broad Australian exposure, VGS provides greater diversification, while NDQ has delivered the strongest growth.

For long-term investors, the better choice may depend less on picking a winner and more on combining complementary ETFs.

The post Vanguard ETFs vs. Betashares ETFs: Who’s coming out on top? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Nasdaq 100 ETF, and Nvidia. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, BHP Group, Nvidia, and 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.

Shares in Lovisa Holdings Ltd (ASX: LOV) have fallen about 20% since the company reported its full-year result, creating a buying opportunity, according to the team at UBS.

UBS has released a new research note on the company with a bullish share price target, which I’ll get to shortly.

First, let’s have a look at Lovisa’s full-year results.

Profit and revenue heading in the right direction

The jewellery retailer boosted total revenue 17.6% to $938.8 million, while comparable store sales were up 2%.

The company opened 160 new stores during the year, to have 1136 at the end of June.

Net profit came in at $95.6 million, up 10.7%, while the dividend was increased 22.2% to 33 cents per share.

Lovisa Chief Executive Officer John Cheston said of the result:

Lovisa has once again been able to deliver strong global sales and profit growth, with the highlights being continued growth in the Americas and Europe and another exceptional Gross Margin performance. I would like to share my appreciation to the global team for their hard work in delivering these outstanding results and continuing the global momentum of the business.

Lovisa said its ongoing focus on the quality of the store network resulted in 43 underperforming stores being closed and 12 relocations.

The company added:

We will continue to focus on store profitability and where landlords don’t provide a profitable rent we will take action on stores not delivering to required levels of return on investment. With a footprint now in over 50 markets and increased support structures in place we are well positioned to continue our global rollout across both existing and new markets. We continue to focus on opportunities for expanding both our physical and digital store network, with structures in place to drive this growth in existing and new markets and formats, with a long new store runway supporting continued store rollout momentum. Our balance sheet remains strong with available cash and debt facilities supporting continued investment in growth.

Lovisa shares looking cheap

UBS said with the share price having weakened, the risk-reward for the shares “is now attractive and we upgrade our rating from neutral to buy”.

UBS added:

LOV enjoys significant store growth potential assisted by a consistent format across markets while leveraging a low ticket price and socialisation by a predominantly youth consumer base, typically a stronger consumer cohort. Store growth, the key EBIT driver, was strong in FY26 (160 gross, 12 relocations, 43 closures) with this expected to continue in FY27.

UBS has a price target of $28 on Lovisa shares compared to $23.07 at the time of writing.

Lovisa is valued at $2.4 billion.

The post What sort of upside is UBS predicting for Lovisa shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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 Lovisa. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Retirement doesn’t have to mean stopping work overnight.

For Australians aged 60 and over, a Transition to Retirement (TTR) strategy could provide a way to cut back hours while using superannuation to help bridge the income gap.

How does a TTR strategy work?

The basic idea is to replace some employment income with payments from your superannuation.

You could reduce your working hours and salary, then draw an income from a TTR pension to make up some of the difference. At the same time, you may be able to salary sacrifice part of your remaining salary into super.

Concessional contributions, including salary-sacrifice contributions, are generally taxed at 15% within super, which can be below your marginal tax rate.

Done carefully, this can create a useful reshuffle of your cash flow: less work, some income from super and continued contributions to your retirement savings.

Here’s what it could look like

Imagine you’re 60 and earn $100,000 a year. You decide to move to a four-day working week, cutting your salary to $80,000. You then draw $20,000 from a TTR pension to help replace the income you’ve given up.

At the same time, you salary sacrifice $15,000 of your wages into superannuation.

The result is a potentially more flexible path towards retirement. You’re working less, drawing some income from super and continuing to put money into your retirement account.

For someone keen to ease into retirement rather than make an abrupt switch, that could be appealing.

But there are catches

TTR isn’t a magic solution, and the rules matter.

Employer Super Guarantee contributions and salary-sacrifice contributions generally count towards your annual concessional contributions cap. Exceeding the cap can result in additional tax.

TTR pensions also have minimum and maximum withdrawal rules, so you can’t simply withdraw whatever amount you want.

Perhaps most importantly, every dollar withdrawn from superannuation is a dollar that is no longer invested in the fund. Drawing too much too early could reduce the amount available to compound for your later retirement years.

Foolish takeaway

A TTR strategy can offer an appealing middle ground between full-time employment and full retirement.

For eligible Australians, combining superannuation withdrawals with salary sacrifice may help reduce working hours, manage taxable income and continue building retirement savings.

However, the most suitable approach depends on your income, super balance, age, contributions and retirement goals. The relevant rules can also be complex, so speaking with a licensed financial adviser or tax professional before making changes may be worthwhile.

For some Australians, though, the concept is compelling: work less, replace some lost income with super and keep building your retirement nest egg.

The post Turning 60? You could be leaving superannuation money on the table appeared first on The Motley Fool Australia.

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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 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.