The ASX share market doesn’t stay calm forever, and 2026 has been a reminder of that. With stretched valuations, slowing global growth and stubborn inflation all doing the rounds, more investors are looking to add some ballast to their portfolios.

Here are three defensive ASX shares and three ETFs worth a look.

Woolworths Group Ltd (ASX: WOW)

Supermarkets don’t stop trading in a downturn — people still need to eat. Woolworths’ dominant market share in the Australian supermarket landscape has long held it in good stead even during tough economic conditions.

And the market has noticed: the ASX share is up 33% year to date. Even as households trade down to cheaper essentials, Woolworths tends to keep the lights on and the dividends flowing.

Ramsay Health Care Ltd (ASX: RHC)

Healthcare demand doesn’t switch off when the economy slows. Ramsay is one of the largest and well-established private healthcare providers, and elective surgery volumes plus global diagnostic demand tend to hold up regardless of the cycle.

It’s the kind of business people rely on whether markets are booming or busting. The ASX share is up an impressive 56% in 2026.

Suncorp Group Ltd (ASX: SUN)

Insurance is one of those products people keep paying for no matter what. Insurance demand tends to remain steady even in weaker economic conditions.

Suncorp hasn’t been a growth story over the past 12 months, down 5%, but that’s rather the point. This $21 billion ASX share is there to steady the ship, not chase the rally.

Vanguard Australian Shares Index ETF (ASX: VAS)

For broad, low-cost exposure with a defensive tilt, the Vanguard Australian Shares Index ETF has characteristics that make it more resilient than many global indices, leaning on Australia’s banks, resources and consumer staples sectors.

It’s a simple, set-and-forget way to add local stability to a ASX shares portfolio.

iShares Global Consumer Staples ETF (ASX: IXI)

If you want global exposure to businesses people buy from no matter the economic weather, this ETF is hard to beat. Its holdings include some of the most dependable companies on the planet, such as Walmart Inc (NASDAQ: WMT), and Coca-Cola Co (NYSE: KO).

These are businesses with strong brands, pricing power, and customer loyalty, making their earnings far more stable than companies tied to discretionary spending.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

Cash is king in a downturn, and this fund is built around exactly that idea. It focuses on stocks with exceptional cash generation, holding global giants like Alphabet Inc (NASDAQ: GOOG) and Visa Inc (NYSE: V).

Two companies with the balance sheet strength to self-fund growth without leaning on debt when conditions get tough.

Foolish takeaway

None of these picks will make headlines for explosive growth, and that’s the whole point of defensive investing.

Pairing a couple of resilient ASX shares with a broad ETF or two can help smooth out the ride without forcing you to sit entirely on the sidelines.

As always, defensive doesn’t mean risk-free. It means being better positioned to weather the storm.

The post Worried about a downturn? 3 ASX shares and 3 ETFs built to weather it appeared first on The Motley Fool Australia.

More reading

• Woolworths vs Coles: Which supermarket giant is the better ASX buy?
• Buy, hold, sell: Echo IQ, James Hardie, Woolworths shares
• Vanguard ETFs vs. Betashares ETFs: Who’s coming out on top?
• Experts name CBA and these big-name ASX 200 shares as sells this week
• How to build a superannuation portfolio generating $50,000 a year

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 Alphabet, Visa, and Walmart. The Motley Fool Australia has recommended Alphabet and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The All Ordinaries Index (ASX: XAO) closed around 1% lower on Tuesday afternoon. The index is also now down 2% for the year-to-date. Now many have their eye focused on which ASX shares could climb even higher over the next 12 months. Here are three ASX shares that brokers think could return up to 122% over the next year.

Meteoric Resources Ltd (ASX: MEI)

Meteoric Resources released its highly anticipated Definitive Feasibility Study (DFS) for its Caldeira Rare Earths project in July. The study included confirmation of a 151 million tonne (Mt) ore reserve grading 3,524ppm TREO and an impressive life of mine (LOM) post-tax NPV of US$847 million at spot prices.

The project has already secured a Preliminary Environmental Licence, with the construction permit (LI) expected by the end of 2026. Meteoric has signed non-binding offtake agreements with major players in South Korea, Canada, and North America and is in advanced funding talks with several government credit agencies.

The company’s next steps involve obtaining the Installation Licence and finalising project funding to move toward a final investment decision and project construction. 

Last month, Meteoric also announced that its shares will begin trading on the US OTCQB Venture Market under the ticker METOF, broadening access for North American investors and supporting future growth.

Experts seem confident the business could boom over the next 12 months. Market Index data shows that all brokers have a strong buy rating on the ASX rare earths shares. The 38 cent target price implies a potential 122% upside at the time of writing.

Generation Development Group Ltd (ASX: GDG)

Generation Development Group is a diversified financial services company focused on investment and retirement products.

The company’s shares have consistently tumbled lower over the past 12 months after spiking to an all-time high in October last year.

It looks like the share price decline through 2026 is part of a reset after the shares rocketed around 107% through the first three quarters of the 2025 calendar year. Many investors took profits after the shares rallied strongly over a short period.

But the company’s FY26 results were strong operationally. Generation Development Group posted record funds under management last month, up 37% to $46.5 billion. 

Meanwhile its underlying NPAT increased 21% to $40.7 million for FY26. Group revenue also increased 23% to $178.7 million.

Going forward, the group said it is well-placed to benefit from strong structural tailwinds across superannuation, retirement, and managed account markets in FY27. Management expects continued FUM growth, supported by adviser adoption and stable product revenue margins.

Brokers are bullish too. Market Index data shows that all brokers agree on a strong buy rating on the ASX shares. The $5.62 average target price implies about 90% upside at the time of writing.

Judo Capital Holdings Ltd (ASX: JDO)

Judo was one of the strongest-performing bank shares on the ASX earlier this year. However, the ASX bank shares crashed 43% in late June after it downgraded its profit guidance for FY26. Since then, it has struggled to recover. 

Even a stronger-than-expected FY26 result in mid-August hasn’t been enough to renew investor confidence. 

Judo reported a 29% increase in NPAT and a 34% increase in profit before tax, at the top end of its revised guidance range. 

The company also expects FY27 profit before tax to be between $210 million and $220 million, driven by growth and operating leverage. That would translate to a 30% increase.

The sell-off earlier this year seems overdone to me, and the bank appears to be performing better than the market expected.

Market Index data shows the majority of brokers have a strong buy rating on the ASX shares. The $1.51 average target price implies a potential upside of around 50%, at the time of writing.

The post Brokers tip these 3 ASX shares to climb between 50% and 122% in the next 12 months appeared first on The Motley Fool Australia.

More reading

• Top 3 ASX 200 shares now below their 200-day moving average
• Buy, hold, sell: Generation Development, Fletcher Building, Saluda Medical shares
• Top 3 ASX shares I’d buy after the most recent sell-off
• Brokers rate these 5 ASX shares as a strong buy, and tip upsides of 28% to 62%
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Samantha Menzies 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 recommended Generation Development Group. The Motley Fool has a “https://www.fool.com.au/fool-com-au-disclosure-policy/”>disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX consumer discretionary shares have suffered a tough 12 months. 

The sector has faced several headwinds over the past year. 

Why are consumer discretionary shares struggling?

Some of the major contributors have been high interest rates, weaker consumer confidence, pressure on household budgets, and growing evidence that retail earnings are softening.

Consumer discretionary shares rely on consumer confidence because they sell non-essential products that consumers can easily delay or cut back on when they feel uncertain about their finances. 

Lower interest rates can reduce mortgage and debt repayments, giving consumers more disposable income to spend on clothing, dining, and entertainment. 

As a result, falling rates, stronger employment and improving consumer confidence can increase discretionary spending and support retailers‘ sales and earnings, while the opposite can hurt them.

One such consumer discretionary stock affected by these pressures is Lovisa Holdings Ltd (ASX: LOV). 

The fashion jewellery and accessories retailer has seen its share price fall 42% in the last 12 months. 

However, a new report suggests it could be a rebound candidate. 

Bell Potter optimistic

Overall, Bell Potter believes this option stands out amongst the retail sector because of its global expansion potential, attractive gross margins and low-price-point proposition. 

The broker said the key attraction is Lovisa’s international growth opportunity, particularly in the US and UK. Bell Potter sees significant room to expand beyond the current ~250 US stores, while the UK could benefit from the exit of a major competitor. 

They also expect relatively easier comparable-sales conditions in the coming months, which could help Lovisa maintain its strong start to FY27.

We continue to see further prospects arising from changes in the US/UK/South African competitor environment with the exit of the key competitor, offsetting risks in the Australian market with a fast growing competitor. 

While we remain cautious on the current weak consumer landscape and investments into market share & store refits to mitigate competitive pressures in key markets, we see a higher tolerance re accessibility from a low price point perspective together with a strong gross margin. LOV stands out in our coverage as a global retailer scaling its presence from ~50 regions with strong US/UK performance with better efficiencies within the US store network.

Healthy upside 

At the time of writing, Lovisa shares are trading at approximately $22.87.

However, the broker has a buy rating and $27.00 price target on the consumer discretionary stock. 

This indicates a healthy upside of 18%. 

The post Is this the best value stock amongst the ASX consumer discretionary sector? appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $6,500 monthly passive income?
• What sort of upside is UBS predicting for Lovisa shares?
• Here are the top 10 ASX 200 shares today
• 33 ASX shares going ex-dividend next week
• How much is needed in superannuation to target a $70,000 annual passive income?

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 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.