Tag: Stock pick

Last year, the US Magnificent Seven stocks fell short of the extraordinary performance that investors worldwide have come to expect.

Only two Mag 7 shares delivered impressive capital growth, while the other five underperformed the major US indices.

Yep, they underperformed.

The health of the Mag 7 companies matters to Australian investors because we are heavily invested in them, whether we like it or not.

Got a superannuation fund? Chances are a chunk of your retirement savings are invested in these seven high-tech companies.

Own exchange-traded funds (ETFs) tracking the US or global markets?

You’re definitely invested in the Mag 7 stocks.

The Mag 7’s high market caps mean they dominate the S&P 500 Index (SP: .INX) and the Nasdaq Composite Index (NASDAQ: .IXIC).

Therefore, their performance has a direct impact on many Australians’ investments.

Let’s take a look at how the Magnificent 7 stocks performed in 2025, starting with the No. 1 riser.

And no, it’s not the stock you think!

Magnificent Seven stocks in 2025

To set the scene for you, the S&P 500 rose 16.39% and the Nasdaq Composite lifted 20.36% last year. (Compare that to ASX shares here.)

Here’s how the Magnificent Seven stocks compared to the broader market.

1. Alphabet Inc Class A (NASDAQ: GOOGL)

Both Class A and Alphabet Inc Class C (NASDAQ: GOOG) shares lifted 65% in 2025.

Class A stock closed at US$313 per share, and Class C shares closed at $313.80.

Nvidia Corp (NASDAQ: NVDA)

US stock market darling Nvidia still put in a good performance as it continues to leverage the artificial intelligence megatrend.

Stock in the US graphics and AI chip designer rose 39% to close at US$186.50 per share on 31 December.

In October, Nvidia became the first company in the world to reach a US$5 trillion market cap.

Investment platform Stake reports that Nvidia was one of the five most traded US stocks by Australian traders last year.

According to Stake’s 2025 Retail Investor Report Card:

It beat revenue estimates every quarter in 2025 by an average of 8.9% and is on track to generate US$212B in FY26.

Its earnings have become a global market catalyst: Nvidia’s results serve as a directional signal for traders worldwide.

For Stake investors, the biggest ‘buy-the-dip’ moment came during the DeepSeek moment in January, when Nvidia lost US$260B in market cap but buy orders surged 460%.

Microsoft Corp (NASDAQ: MSFT)

The Microsoft stock price rose 15% to close 2025 at US$483.62 per share.

Meta Platforms Inc (NASDAQ: META) 

Meta Platforms shares rose 13% to finish the year at US$660.09.

Tesla Inc (NASDAQ: TSLA)

Stock in electric vehicle manufacturer Tesla rose 11% to US$449.72 per share.

Stake analysts said Tesla was the only Magnificent Seven stock not to set a new share price record in 2025.

Apple Inc (NASDAQ: AAPL) 

US technology stock Apple rose by 9% to close at US$271.86 per share on 31 December.

Amazon.com, Inc. (NASDAQ: AMZN) 

The Amazon share price inched 5% higher to close at US$230.82 on 31 December.

Interesting sidenote

My US Fool colleague Trevor Jennewine recently covered the third-quarter report from Warren Buffett’s Berkshire Hathaway Inc (NYSE: BRK.A) (NYSE: BRK.B).

The report showed that the ‘Oracle of Omaha’, who retired at the end of last year, bought Alphabet stock — the best performer of the Magnificent Seven in 2025 — and continued to sell down Apple — the second-worst performer of the group — during the third quarter.

Berkshire Hathaway purchased 17.8 million shares in Alphabet, which now accounts for 2% of the company’s $267 billion portfolio of 41 stocks.

Berkshire sold 41.7 million Apple shares, and although the company remains Berkshire’s largest holding at 21%, its position has reduced by 74% in just two years.

The post Here’s how the US Magnificent Seven stocks performed in 2025 appeared first on The Motley Fool Australia.

More reading

• 4 pros and cons of buying the Vanguard Australian Shares ETF (VAS) in 2026!
• My 10 top stocks to buy to start the New Year off right
• 1 unstoppable artificial intelligence stock you’ll want to own in 2026
• 4 reasons to buy Nvidia stock like there’s no tomorrow
• 2 AI stocks to buy in January and hold for 20 years

Motley Fool contributor Bronwyn Allen 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, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 Domino’s Pizza Enterprises and HMC Capital. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has recommended Domino’s Pizza Enterprises and HMC Capital. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Getting started in the share market can feel overwhelming. With thousands of shares to choose from, it is easy to fall into analysis paralysis before you even begin!

One simple way to cut through the noise is to build a diversified portfolio using a small number of broad-based exchange traded funds (ETFs). This approach can provide instant exposure to hundreds, or even thousands, of shares, while keeping costs, effort, and complexity low.

If you are new to investing and looking for a straightforward place to start, here is how a three-ETF ASX portfolio could do most of the heavy lifting.

Vanguard Australian Shares ETF (ASX: VAS)

The first building block is exposure to the Australian share market.

To achieve this, the Vanguard Australian Shares ETF would be a natural choice. The hugely popular fund tracks the performance of the largest listed shares on the ASX.

This means investors gain easy access to household names across banking, resources, healthcare, and consumer staples. This includes well-known businesses like Telstra Group Ltd (ASX: TLS), Westpac Banking Corp (ASX: WBC), Woolworths Group Ltd (ASX: WOW), and Ramsay Health Care Ltd (ASX: RHC).

Vanguard MSCI International Shares ETF (ASX: VGS)

While Australian shares can form a strong foundation, relying solely on the local market can leave portfolios overly concentrated.

The Vanguard MSCI International Shares ETF helps solve this problem by providing exposure to global markets, including the United States, Europe, and parts of Asia. It holds many of the world’s largest and most successful companies across technology, healthcare, consumer goods, and industrials. In fact, at the last count, there were over 1,200 shares in the fund.

For new investors, this ETF adds geographic diversification and reduces reliance on the Australian economy. It also provides access to global growth opportunities that are not well represented on the ASX.

Betashares Diversified All Growth ETF (ASX: DHHF)

This third ASX ETF could act as a simple way to broaden portfolio diversification even further with a single click of the button.

The Betashares Diversified All Growth ETF is an all-in-one growth ETF that invests across Australian shares, international shares, and emerging markets.

While it does overlap somewhat with the first two ETFs, it adds additional exposure to regions and companies that may otherwise be underrepresented. Betashares highlights that it provides exposure to approximately 8,000 shares that are listed on over 60 global exchanges.

For beginners, this type of ETF can help smooth out returns over time and reduce the need to constantly rebalance a portfolio. It was recently recommended by analysts at Betashares.

The post New to Investing? Here’s a 3-ETF ASX portfolio appeared first on The Motley Fool Australia.

More reading

• 4 pros and cons of buying the Vanguard Australian Shares ETF (VAS) in 2026!
• 3 Australian ETFs to buy and hold forever
• Getting your personal finances on track in 2026? Here are three steps to take
• 3 unstoppable Vanguard ETFs to buy even if there’s a stock market sell-off in 2026
• 5 fantastic ASX ETFs for beginners in 2026

Motley Fool contributor James Mickleboro has positions in Woolworths Group. 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 positions in and has recommended Telstra Group and Woolworths Group. 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.

Major oil and gas producers Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) are dominant players on the S&P/ASX 200 Index (ASX: XJO).

At the time of writing on Wednesday afternoon, Woodside shares are down 2.47% to $22.94 a piece. For 2026 so far, Woodside shares are down 3.53% and they’re currently trading 10.29% lower than this time last year.

Santos shares are also trading in the red at the time of writing, down 2.78% to $5.92 a piece. For 2026 so far, the shares are 4.13% lower, and they’re down 14.97% from this time last year.

For context, the ASX 200 Index is up 0.39% today, up 0.18% for the year to date, and 5.21% above the levels seen this time last year.

What happened to Woodside shares this year?

It was a volatile year for Woodside’s shares. Dwindling oil prices dampened the ASX 200 Australian petroleum exploration and production company’s performance potential throughout most of the year.

Its share price pushed higher on the back of a steep uptick in the crude oil price in late October, climbing nearly 20% over a four-week period. But the shares dropped again, around 7%, in mid-December after it announced the shock exit of its CEO.

In its latest quarterly update, in October, Woodside showed an uptick in revenue and production. The oil and gas producer thinks the two metrics will keep growing in 2026, too. Woodside has upgraded its full-year production guidance to 192–197 MMboe and plans to progress its pipeline of global projects this year.

What happened to Santos shares this year?

Santos shares fell sharply in late August after the company posted its half-year results and a potential takeover proposal by an ADNOC-led group collapsed. The group dropped the takeover bid in mid-August after the process raised concerns about governance and regulatory issues.

Dwindling oil prices also played their part in the latter few months of 2026. WTI crude oil prices fell in late-December following supply concerns, dragging down the independent oil and gas producer’s share price with it.

But there were quite a few positive developments out of the company in late-2025 too. In mid-December, Santos announced it had accelerated the final repayment under the PNG LNG project finance facility, bringing the facility to a close. Santos made its final $363 million payment six months ahead of the June 2026 repayment deadline.

The company also executed a conditional sale and purchase agreement to divest its 42.86% operated interest in the Mahalo Joint Venture to Comet Ridge Ltd (ASX: COI).

Are the ASX 200 oil and gas producers a buy, hold or sell for 2026?

Analysts are split about the outlook for Woodside shares in 2026. TradingView data shows that out of 16 analysts, 7 have a buy or strong buy rating on the shares and the other 9 have a hold rating.

The average 12-month target price for Woodside shares is $26.21, which implies a potential 14.64% upside ahead for investors. But some analysts think the shares could jump as high as $33.49, which implies a 46.54% upside at the time of writing.

It’s a similar story for Santos shares. Data shows that 10 out of 15 analysts have a buy or strong buy rating on Santos shares. Meanwhile 4 have a hold rating and 1 analyst rates Santos shares as a sell.

The average 12-month target price on Santos shares is $7.37, which implies a potential 24.34% upside for investors. However some think the share price could climb up to $8.71, which represents a 46.91% upside at the time of writing.

The post Santos vs Woodside: Are these ASX 200 oil and gas shares a buy, hold or sell for 2026? appeared first on The Motley Fool Australia.

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• Buying ASX energy shares like Woodside and Santos? Here’s why Venezuela matters
• After strong dividends? Look at these 2 major ASX energy stocks
• 5 things to watch on the ASX 200 on Tuesday
• Leading brokers name 3 ASX shares to buy 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 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 team at Morgans has been busy running the rule over some popular ASX shares recently.

Let’s see what it is saying about the two listed below. Are they buys, holds, or sells?

Chalice Mining Ltd (ASX: CHN)

This mineral exploration company’s shares have been on fire over the past 12 months. The good news is that the broker doesn’t believe it is too late to invest, but only if you have a high tolerance for risk.

Morgans recently put a speculative buy rating and $4.50 price target on its shares. This implies potential upside of over 80%.

It believes the ASX share is well-positioned to benefit from increasing demand for palladium. It said:

CHN released a Pre-Feasibility Study (PFS) for the Gonneville Pd-Ni-Cu project. The PFS was broadly in line with MorgansF, with key beats to Stage 1 capex (-9%) and palladium payabilities (+7%). Macro tailwinds are turning supportive: the EU is moving to soften its 2035 ICE ban (supportive for hybrids/Pd demand) while the already small ~9Mozpa palladium market is tightening, running an estimated ~0.2Moz deficit even before any meaningful industrial demand uplift.

We reiterate our SPECULATIVE BUY rating with a A$4.50ps target price (previously A$2.90ps), a function of a refreshed spot scenario following a +122% increase in Pd prices over the past eight months and PFS input updates.

Northern Star Resources Ltd (ASX: NST)

This gold miner’s recent quarterly update didn’t impress Morgans. It notes that the ASX share is experiencing operational challenges across all hubs.

As a result, the broker has downgraded its shares to a hold rating with a reduced price target of $26.00.

While the broker is positive on the company’s long-term outlook, it thinks it sees the short term as challenged. It explains:

NST has revised FY26 guidance lower after another soft sales quarter, cutting the midpoint ~8% to 1,650koz (from 1,775koz). The downgrade reflects ongoing operational challenges across all hubs, including grade, throughput and utilisation constraints. This marks the second guidance miss in as many years. While we remain constructive on NST’s long-term growth pathway, we are adopting a more cautious (previously bullish) short-to-midterm production outlook, maintained until delivery consistency improves.

We now forecast FY26 sales of 1,589koz (-9%), marginally below updated guidance (1,600–1,700koz). We lift our AISC to A$2,770/oz, reducing forecast EBITDA and EPS by 16% and 22% respectively. Rating revised to HOLD, price target A$26.00ps (previously A$27.41ps). The downgrade partly offset by our higher spot scenario of US$3,500/oz (from US$3,250/oz).

The post Buy, hold, sell: How does Morgans rate these ASX shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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.

If you are looking for big returns for your portfolio in 2026, then it could be worth considering the ASX 200 stock in this article.

That’s because analysts at Bell Potter believe it could be dirt cheap at current levels.

Which ASX 200 stock?

The stock that Bell Potter is urging investors to buy is Premier Investments Ltd (ASX: PMV).

It is the conglomerate behind the Smiggle and Peter Alexander brands, as well as investments in property and appliance manufacturer Breville Group Ltd (ASX: BRG).

Bell Potter notes that the company recently released its guidance for the first half of FY 2026. It acknowledges that it has fallen short of expectations due to the underperformance of the Smiggle brand. It said:

Premier Investments (PMV) provided 1H26 guidance of $120m in Pre-AASB 16 EBIT for Premier Retail at the Dec AGM, implying a ~10% miss to Consensus. The continuing overall underperformance has been driven by the Smiggle brand and in particular the UK business which sees weaker growth in both store network and comps (vs last reported of -4% in Sep), while the Peter Alexander (PA) brand remains healthy to see consistent growth. PMV also announced interim leadership appointments in Smiggle and an on-market buyback of up to $100m over the next 12 months.

Smiggle to shrink further

While this has led to a downgrade to its earnings estimates, Bell Potter remains positive on the ASX 200 stock despite expecting Smiggle to shrink in size. This is because it feels that its current valuation factors this in and more. It said:

We see the Smiggle business (~30% of Retail) shrinking further especially in the largest region, UK (35-40% of the brand, as per BPe) and also seeing pressures with the rate cut cycle in the core region, Australia. The operating deleverage in the brand continues to dilute the overall group (BPe EBIT margins ~10% in FY26e vs prev. 17%), offsetting strengths from PA (~70% of Retail). We see limited catalysts for Smiggle, apart from the interim management change and lower our assumptions.

However, our views remain unchanged that the current share price implies minimum levels of earnings assumed in the Smiggle brand and any improvements from a lower base case should see some risk-reward for current conditions. Our sum of the part valuation sees a $2.0b EV for the PA brand (derived on FY26e $160m EBIT at 13x multiple, which includes $103m EBIT for 1H26e).

Time to buy

Despite the doom and gloom around the Smiggle brand, Bell Potter is recommending this ASX 200 stock as a buy with a reduced price target of $20.00 (from $26.50).

Based on its current share price of $13.39, this implies potential upside of almost 50% for investors over the next 12 months.

In addition, it is expecting dividend yields of 5.5% in FY 2026 and 6.5% in FY 2027. This brings the total potential 12-month return to approximately 55%.

The post Why this beaten down ASX 200 stock could rise 50% appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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 Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

As we embark on a new calendar year, one constant on the ASX looks likely to continue – the supremacy of the Vanguard Australian Shares Index ETF (ASX: VAS). This exchange-traded fund (ETF) remains, by far, the most popular of its kind on the Australian markets, with more than $22.5 billion in assets under management.

Given this enduring popularity, it’s a great time, as we start another lap around the sun, to do a deep dive into this index fund. So let’s talk about two reasons ASX investors might want to buy the Vanguard Australian Shares ETF in 2026, and two reasons why they might wish to reconsider an investment.

Two reasons why the VAS ETF is an ASX buy in 2026

VAS: Simple and cheap

One of the reasons ASX investors love investing in VAS is its simple nature. This index fund offers exposure to the largest 300 stocks listed on the ASX, weighted by market capitalisation. Nothing more, nothing less. Like all index funds, this avenue is appealing for many investors who wish to take a hands-off, passive approach to investing. The largest 300 companies in Australia change over time, VAS changes with them though, periodically rebalancing its portfolio to ensure that the successful stocks are added to, while the losers are weeded out.

The Vanguard Australian Shares ETF charges a relatively cheap 0.07% per annum for this service.

A stellar long-term track record

We can point to decades of historical data that show the Australian share market has always generated wealth-building returns for investors. The Vanguard Australian Shares Index ETF has itself returned an average of 9.15% per annum since its inception in 2009. But, as we looked at in August of last year, Vanguard itself has calculated that the Australian market returned 9.3% per annum over the 30 years to 30 June 2025.

Past performance is never a guarantee of future returns, of course. But it still gives us an insight into the potential benefits of long-term investing.

Two reasons to sell the Vanguard Australian Shares ETF (VAS)

So there are plenty of positives in buying the VAS ETF for an ASX portfolio. But this is arguably no slam dunk. Many investors have justified concerns about ploughing more capital into this fund in early 2026. Let’s go through two.

Banks and miners

One of the primary concerns over buying more VAS units in the ASX investor community is its over-concentration on two sectors of the Australian share market. Most ASX investors know that bank stocks like Commonwealth Bank of Australia (ASX: CBA) and mining shares like BHP Group Ltd (ASX: BHP) dominate the ASX. But a look at VAS’ portfolio throws this dynamic into sharp relief.

As it currently stands, more than 50% of any investment in VAS today would go into either financial or mining shares. That’s 32.1% to financials and 22.1% to miners. The next most influential sector in this ASX ETF is healthcare, making up just 7.9% of VAS’ portfolio. The big four banks alone attract more than $1 of every $5 invested in the fund.

This might be just fine with investors who prioritise dividend income. But any investor who wants true diversity might wish to at least dilute this heavy exposure to banks and miners with other ASX ETFs.

VAS: Where’s the innovation?

Another potential concern that some ASX investors might have with the Vanguard Australian Shares ETF is the lack of innovative, exciting and quick-growing companies at its highest echelons. VAS’ banks and miners might be mature, profitable businesses. But there aren’t too many companies in this ETF that are moving fast or breaking things, to paraphrase Mark Zuckerberg.

While the flagship S&P 500 Index that tracks the US markets holds innovators like Amazon, Microsoft, NVIDIA and Zuckerberg’s own Meta Platforms among its top holdings, most of the ASX’s top stocks have been delivering steady but slow growth for decades.

If you’d like to invest in an index fund that includes at least some innovative, exciting companies that are growing at healthy clips, VAS might not be the fund for you.

The post 4 pros and cons of buying the Vanguard Australian Shares ETF (VAS) in 2026! appeared first on The Motley Fool Australia.

More reading

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• 3 unstoppable Vanguard ETFs to buy even if there’s a stock market sell-off in 2026

Motley Fool contributor Sebastian Bowen has positions in Amazon, Meta Platforms, Microsoft, and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Every so often, long-term investors are presented with an opportunity that does not come from hype or speculation, but from time and patience. An opportunity is created when a major region of the world delivers very little for years, only to begin moving again, just as many investors have lost interest.

I think that is exactly what is happening right now with the Vanguard FTSE Asia Ex-Japan Shares Index ETF (ASX: VAE).

A strong year that hides lost years

At first glance, the VAE ETF does not look like a contrarian idea. The fund has performed strongly over the past 12 months, reflecting a recovery across parts of Asia.

But zoom out, and the picture changes dramatically.

Remarkably, all of the Vanguard FTSE Asia Ex-Japan Shares Index ETF’s gains in 2025 account for almost its entire return over the last five years. In other words, Asian equities have spent most of the past half-decade going sideways while US and Australian markets surged ahead.

That kind of long-term underperformance often sets the stage for the next cycle. It suggests there may still be a lot of lost ground to make up over the coming decade, especially if growth, innovation, and demographics begin to reassert themselves.

Exposure to the engines of Asian growth

This Vanguard index fund offers broad exposure to Asia, excluding Japan, Australia, and New Zealand, covering approximately 1,400 stocks across 12 markets.

Its largest country exposures are China, Taiwan, India, and South Korea, together accounting for around 80% of the portfolio. These are not fringe markets. They are central players in global manufacturing, technology, finance, and consumption.

The ETF’s top holdings include some of the most important companies in the global economy, such as Taiwan Semiconductor Manufacturing, Tencent, AIA Group, China Construction Bank, Alibaba, Samsung Electronics, and SK Hynix. These businesses sit at the heart of long-term themes like semiconductors, cloud computing, artificial intelligence, and digital payments.

Importantly, this exposure is diversified across sectors, company sizes, and countries. That diversification matters in a region that can be volatile in the short term but powerful over longer time horizons.

A demographic and economic tailwind

Asia is home to more than half of the world’s population and many of its fastest-growing middle classes. Over time, rising incomes, urbanisation, and consumption tend to translate into higher corporate earnings and expanding capital markets.

India’s growing financial sector, Taiwan and Korea’s dominance in advanced manufacturing, and China’s vast domestic economy all contribute to the long-term investment case. This Vanguard index fund allows investors to access this growth without needing to pick individual winners.

A simple way to diversify an Australian portfolio

For Australian investors, the VAE ETF also plays a useful portfolio role.

Local portfolios are often heavily concentrated in banks, miners, and domestic equities. Adding Asian exposure can improve diversification and reduce reliance on a single economic cycle. Vanguard itself suggests this ETF can complement broader diversified funds, helping investors balance their exposure geographically.

It is worth noting that the Vanguard FTSE Asia Ex-Japan Shares Index ETF is unhedged, meaning returns will be influenced by currency movements. That adds volatility, but for long-term investors, it also adds diversification benefits.

Foolish Takeaway

The Vanguard FTSE Asia Ex-Japan Shares Index ETF is not a short-term trade. It is a buy-and-hold investment for those willing to think in decades, not quarters.

After years of underperformance followed by a strong but still early recovery, Asian equities may be entering a new phase. If that happens, the VAE ETF offers a low-cost, diversified way to participate.

For investors looking ahead to 2026 and beyond, this could be one of those rare moments where patience today is handsomely rewarded over the next decade.

The post A once-in-a-decade investment opportunity: 1 brilliant Vanguard index fund to buy in 2026 appeared first on The Motley Fool Australia.

More reading

• The best performing Vanguard ASX ETFs of 2025

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 positions in and has recommended Taiwan Semiconductor Manufacturing and Tencent. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alibaba Group. 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 share price of ASX insurance stocks QBE Insurance Group Ltd (ASX: QBE) and Suncorp Group Ltd (ASX: SUN) haven’t moved much during Wednesday’s trading.

QBE is the largest ASX insurance stock and has seen its share price drop slightly by 0.25% to $19.83. Its $19 billion rival Suncorp has gained 0.2% in value at $17.34.

Both insurance companies have had a past 6 months to forget, with QBE tumbling almost 14%, and Suncorp 16%.

Let’s have a closer look at what 2026 might bring for the two heavyweight insurance stocks.

QBE

ASX insurance stock QBE is a large, globally diversified insurer. The company spreads catastrophe and economic risk across many markets.

The weakness of the past 6 months followed a strong start to 2025. Investor confidence was shaken when QBE announced that premium-rate increases had slowed significantly across several business lines, particularly in commercial property insurance.

That said, the underlying business remains sound. QBE delivered solid half-year results, supported by improved underwriting margins, stronger investment income, and a more disciplined portfolio.

The company also launched a sizeable on-market share buyback, signalling confidence in its balance sheet and capital position. However, a softer third-quarter update for FY2025 overshadowed these positives, shifting market focus toward slowing growth.

Despite these headwinds, broker sentiment remains supportive. Most analysts rate QBE as a buy or strong buy, with an average 12-month price target of $22.30, implying upside of around 13% from current levels.

The maximum price target is set at $25.42, a potential gain of 28%.

However, Bell Potter has put the ASX insurance stock on the sell list. It is feeling cautious about the company’s outlook, given how premium growth is moderating and claim costs are rising.

The broker estimates that QBE’s shares will provide investors in FY 2026 with dividend yields of 4.7%.

Suncorp

Suncorp is more Australia-focused than QBE. It relies heavily on domestic personal and small commercial insurance brands. The heavier domestic exposure makes the ASX insurance stock more sensitive to Australian natural disaster losses and regulatory and premium pressures than QBE.

The insurer experienced five difficult months to November 2025, marked by elevated natural hazard losses. December, on the other hand, proved to be a comparatively quieter month for weather-related events.

Even so, total costs still exceeded Suncorp’s $885 million first-half allowance. Broker UBS estimates a catastrophe budget overrun of $420 million, reduced from its earlier estimate of $580 million.

UBS has assigned a buy rating to Suncorp shares, with a price target of $20.85 on the ASX-listed insurance stock. This points to a 20% upside over the next 12 months.

In terms of the dividend, the projection on CMC Markets suggests the business could deliver an annual dividend per share of 78.5 cents. At the current Suncorp share price, it could pay a grossed-up dividend yield of 6.3%, including franking credits.

The post Which ASX insurance stock to buy in 2026: QBE or Suncorp? appeared first on The Motley Fool Australia.

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• Why these brokers are bullish on the Suncorp share price
• Which ASX insurance stocks performed best this year?
• 3 ASX insurance shares to sell: experts
• Experts name 3 ASX 200 shares to sell now
• Suncorp shares tread water as investors digest 2026 dividend timeline

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.

Lynas Rare Earths Ltd (ASX: LYC) is catching traders’ attention today, with its share price up 10.19% to $14.49.

The move follows a sharp rebound after the rare earths producer hit a four-month low of $12.15 on 2 January 2026.

Since then, Lynas shares have climbed steadily as sentiment towards the rare earths sector improves.

Several factors now appear to be lifting both Lynas and the broader rare earths market.

So, what is driving today’s performance, and does this rally have more to run?

A sharp technical rebound lifts sentiment

Lynas shares were under pressure late last year as investors sold down commodity and growth-exposed stocks.

Concerns about slowing electric vehicle demand and weaker rare earths prices weighed heavily on the sector.

That selling pushed Lynas shares into oversold territory from a technical perspective.

The January lows now appear to have attracted buyers looking for value. Today’s rally suggests confidence is returning after the recent pullback.

Rare earths prices are showing signs of stabilising

A key driver behind Lynas’ rebound is improving sentiment around rare earths prices. Neodymium and praseodymium (NdPr) are the company’s most important products and the main contributors to its revenue.

These materials are essential for permanent magnets used in electric vehicles, wind turbines, robotics, and defence technology. Industry data suggest that demand for NdPr magnets could grow at 8% to 10% per year through the late 2020s, underpinned by trends in electrification and clean energy.

After a tough 2024 and 2025, several brokers have noted that rare earths prices may now be bottoming. NdPr oxide prices fell more than 40% from their 2022 highs, which weighed heavily on earnings across the sector.

Looking ahead, longer-term forecasts indicate rising demand and limited new supply outside of China. Some analysts expect NdPr prices to recover gradually from 2026 as supply conditions tighten.

That outlook remains supportive for Lynas, which already has processing capacity and scale in place.

A strategically important producer outside China

Lynas is the largest producer of rare earths outside China, giving it significant geopolitical importance.

Western governments continue to prioritise supply chain diversification for critical minerals. That trend supports long-term demand for Lynas’ production across electric vehicles, renewables, and defence industries.

The company also continues progressing expansion plans to lift processing capacity in coming years. Those projects could materially increase earnings if pricing conditions improve.

What to watch next

Today’s rally reflects a mix of technical factors, improving sentiment, and stabilising rare earths prices. However, Lynas shares remain volatile and closely tied to commodity price movements.

Investors will be closely watching the trends in rare earths prices and the company’s next quarterly update. Any improvement in pricing or production guidance could provide further upside momentum.

For now, Lynas is firmly back on investors’ radars after a strong January rebound.

The post Why Lynas shares are soaring 10% today after a sharp rebound from January lows appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Here are my top 3 ASX shares to buy in January
• Why 4Medical, Guzman Y Gomez, Lynas, and Predictive Discovery shares are falling today
• 5 magnificent ASX stocks that can make you richer in 2026
• Lynas shares: After a year of outperformance, is it still a buy?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. 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.