Tag: Stock pick

A 20-year investment horizon changes the way I look at ASX 200 shares.

I am less interested in what a company might do next quarter and more interested in whether it can still be relevant, useful, and growing many years from now.

That does not mean ignoring valuation or risk. But it does mean looking for businesses with long runways and strong positions in markets that should keep expanding.

Three ASX 200 shares I would consider buying for the next 20 years are named in this article.

ResMed Inc (ASX: RMD)

ResMed is one ASX 200 share I think could still be a high-quality business two decades from now.

The company is a global sleep health leader, with devices, masks, accessories, and software used to treat sleep apnoea and other breathing-related conditions.

What I like is the ongoing nature of the need. Sleep apnoea is not a short-term trend. Many people remain undiagnosed, and awareness of the condition can still grow. As healthcare systems put more focus on prevention, chronic disease, heart health, and quality of life, sleep health could become even more important.

ResMed also has a useful business model. Devices are important, but masks, accessories, connected care, and software can keep customers engaged over time.

Competition and pricing pressure remain risks, but I think ResMed has the brand, scale, and market position to keep growing for many years.

Goodman Group (ASX: GMG)

Goodman Group is another ASX 200 share I would consider for a long holding period.

The business has already evolved from a traditional industrial property company into a global owner, developer, and manager of scarce logistics and data centre sites.

I like Goodman because it is exposed to two major long-term shifts. The first is the need for efficient logistics space close to major cities and transport routes. The second is the growing demand for data centre infrastructure, driven by cloud computing, digital services, and artificial intelligence.

Goodman’s advantage is not just owning property. It has development skill, customer relationships, capital partners, and access to locations that can be difficult to replicate.

The share price can be sensitive to interest rates and expectations around data centres. But over 20 years, I think high-quality infrastructure in the right places could become even more valuable.

Sigma Healthcare Ltd (ASX: SIG)

Sigma Healthcare has become a very attractive long-term idea since merging with Chemist Warehouse.

The combined business gives investors exposure to pharmacy retail, healthcare distribution, wellness products, and repeat-purchase health needs.

I like this because healthcare retail can have a different demand profile from many discretionary categories. Consumers may pull back on plenty of things, but medicines, health products, prescriptions, and pharmacy services remain important.

Chemist Warehouse also gives Sigma a powerful brand, scale, and a large customer base.

The opportunity over the next 20 years is not just about selling more products. It is about using scale, distribution, data, store networks, and brand strength to build a larger healthcare retail platform.

Another positive is the recent expansion into the UK market. This could be a key driver of growth over the next two decades if it executes successfully.

Foolish takeaway

When I think about investing for 20 years, I want businesses that can keep finding new ways to grow.

That does not mean every year will be smooth. It means the long-term need behind the business remains strong.

Sleep health, digital infrastructure, logistics, pharmacy, and everyday healthcare are not areas I expect to disappear. That is why I think these three ASX 200 shares could be worth buying with a genuinely long-term mindset.

The post I’d buy these ASX 200 shares if I wanted to invest for the next 20 years appeared first on The Motley Fool Australia.

More reading

• These 3 ASX healthcare stocks have been crushed in 2026. They could be set for a comeback
• Buy, hold, sell: Goodman, Megaport, and New Hope shares
• 3 ASX shares riding the data centre boom that investors keep overlooking
• 5 ASX 200 growth shares to buy next month
• Top brokers name 3 ASX shares to buy now

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 Goodman Group and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are plenty of ASX dividend shares to choose from on the Australian share market.

But which ones could be top buys as we head into June? Let’s look at three that offer attractive dividend yields. They are as follows:

Dicker Data Ltd (ASX: DDR)

The first ASX dividend share to look at is Dicker Data.

It is a technology distributor that connects many of the world’s largest hardware, software, cloud, and cybersecurity vendors with resellers across Australia and New Zealand.

This may not sound as exciting as a fast-growing software company, but it is an important part of the technology supply chain. Businesses still need devices, networks, cloud infrastructure, security tools, and ongoing support to keep operating efficiently.

Dicker Data has built a strong position by offering a broad product range, deep vendor relationships, and service levels that make it valuable to both suppliers and resellers.

The company is not immune from weaker technology spending or margin pressure. But over the long term, rising demand for digital tools, cloud adoption, and cybersecurity should support its market opportunity.

Dicker Data shares currently trade with a fully franked trailing 4.4% dividend yield.

Magellan Infrastructure Fund (ASX: MICH)

Another ASX dividend share that could be worth a look is Magellan Infrastructure Fund.

This is not a traditional dividend share. It is an ASX-listed active ETF that invests in global infrastructure companies, with currency hedging designed to reduce the impact of exchange rate movements.

Infrastructure can be useful for income investors because many assets provide essential services. This can include electricity networks, toll roads, airports, water utilities, and communications infrastructure.

These businesses are often supported by long-life assets, regulated returns, contracted revenue, or strong market positions. That can give the fund a more defensive income profile than many cyclical sectors.

The Magellan Infrastructure Fund currently trades with a trailing 3.3% dividend yield.

Rural Funds Group (ASX: RFF)

A third ASX dividend share to consider is Rural Funds.

It owns a diversified portfolio of agricultural assets, including properties used for cattle, almonds, macadamias, vineyards, and cropping.

These assets are leased to high-quality operators, which means Rural Funds is more focused on collecting rental income than running farming operations itself. That gives it a different risk profile from traditional agricultural businesses.

Long leases, exposure to real assets, and demand for productive farmland all support the investment case. The company also gives investors access to a part of the market that is very different from banks, miners, and retailers.

Its guidance for FY 2026 implies a dividend yield of 5.9%.

The post 3 top ASX dividend shares to boost your passive income in June appeared first on The Motley Fool Australia.

More reading

• 2 excellent high-yield ASX dividend stocks I’d buy today
• Buy, hold, sell: Eagers, Dicker Data and Endeavour Group shares
• This ASX tech stock could be one of the most overlooked AI infrastructure plays on the market
• 3 ASX shares riding the data centre boom that investors keep overlooking
• How to invest $25,000 for passive income in superannuation?

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 positions in and has recommended Dicker Data and Rural Funds Group. The Motley Fool Australia has recommended Magellan Infrastructure Fund. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There has been nowhere to hide in ASX healthcare in 2026.

CSL Ltd (ASX: CSL), Cochlear Ltd (ASX: COH), and ResMed Inc (ASX: RMD) have all tumbled to multi-year lows this year as a toxic combination of earnings downgrades, sector rotation, and macro headwinds drove investors toward energy and resources stocks.

But dramatic selloffs in high-quality businesses have a habit of creating opportunities for investors who can think past the next quarter.

Here is where each stock stands today.

CSL

The fall at CSL has been extraordinary by any measure.

CSL shares are down approximately 43% in 2026 and more than 60% over the past twelve months, hitting a 10-year low in recent weeks.

The most recent catalyst was another guidance downgrade.

Interim CEO Gordon Naylor lowered FY2026 revenue expectations to approximately US$15.2 billion on a constant currency basis following a 90-day strategic review.

The market’s patience has run out.

Management has cited weakness in China albumin pricing, inventory normalisation in the US immunoglobulin market, and operational challenges as the primary drivers.

The bull case rests on CSL’s plasma-derived therapies business, which operates behind barriers to entry that no competitor has been able to meaningfully breach in decades.

Plasma collection volumes have recovered from post-COVID lows.

What’s more, the Vifor integration is progressing.

And insiders are now buying shares on market for the first time in years, a signal that those closest to the business believe the selloff has gone too far.

The market wants proof of such a sustained recovery, and that means a sustained recovery in sentiment may still take several quarters to materialise.

But at current prices, CSL trades on a valuation it has not seen since before the pandemic.

Cochlear

Cochlear’s 2026 has been even more brutal than CSL’s.

The shares are down 62% year to date, touching an eleven-year low in recent weeks.

The April guidance downgrade, which cut FY2026 underlying net profit from $435 to $460 million down to $290 to $330 million, was one of the worst earnings cuts in the company’s listed history.

The causes were a mix of the temporary and the concerning.

Hospital capacity constraints, reduced referral activity, and Middle East disruptions pushed patients to delay surgery.

Cost of living pressures in the US appear to be causing some patients to treat cochlear implants as discretionary rather than essential, at least in the short term.

However, the long-term demand picture has not changed.

Cochlear holds approximately 50% global market share in cochlear implants, with just 3% penetration of an addressable market exceeding six million people in developed markets alone.

Brokers including Jarden and Wilsons Advisory still see significant upside from current levels, with some flagging upside of more than 100% over twelve months.

CEO Dig Howitt said:

The clinical need for cochlear implants continues to grow, particularly for the adult and seniors segment… cochlear implants are also associated with a lower incidence of dementia.

Investors should note that surgeries are being delayed, not cancelled.

ResMed

ResMed’s 2026 selloff is being driven by fears about GLP-1 obesity drugs threatening demand for CPAP devices.

Those fears have proven to be significantly overstated.

The company’s own data from 1.7 million patients shows that patients on both GLP-1 therapy and CPAP therapy actually show higher adherence rates than those on CPAP alone.

In Q3 FY2026, ResMed delivered revenue of US$1.29 billion, up 11% year-on-year, with operating income rising 22% and gross margins improving to 58.9%.

CEO Mick Farrell said at the earnings call:

We believe GLP-1s are truly a megatrend, and a once-in-a-generation demand-gen opportunity for ResMed Inc.

Yet the shares remain down approximately 22% in 2026 as sentiment lags the fundamental reality.

At current prices, ResMed trades materially below fair value according to analysts who have updated their models following the Q3 result.

Foolish takeaway

CSL, Cochlear, and ResMed are three of the highest-quality healthcare businesses ever listed on the ASX.

All three are dealing with headwinds that are temporary, cyclical, or based on fears that have not materialised.

That does not mean the bottom is in, and near-term volatility will likely continue.

But for investors with multi-year time horizons, the entry points available in each of these ASX healthcare stocks today look considerably more attractive than anything on offer in the past five years.

The post These 3 ASX healthcare stocks have been crushed in 2026. They could be set for a comeback appeared first on The Motley Fool Australia.

More reading

• Should I buy CSL shares in June?
• After CSL’s 60% share price crash, insiders are starting to buy
• 3 popular ASX 200 shares that experts rate as strong buys
• At under $100 each, Cochlear shares look like a bargain: Here’s why
• 3 ASX 200 shares I’d buy for the future of healthcare

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 CSL, Cochlear, and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended CSL and Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) tumbled 1.4% on Thursday, continuing its recent volatile run. 

It has been increasingly difficult to predict the market in 2026, as inflation, geopolitical uncertainty and CPI data have all sent the market moving in different directions recently. 

Yesterday, two ASX shares in particularly that suffered heavy losses were: 

• Telix Pharmaceuticals Ltd (ASX: TLX) which dropped 4%
• Catalyst Metals Ltd (ASX: CYL) which fell over 7%. 

This single day drop sees both stocks now hovering close to 52-week lows. 

However expert analysis indicates it could be a buy-low opportunity. 

Here’s what brokers are predicting. 

Telix still can’t shake sector woes 

Telix is a commercial-stage biopharmaceutical company focused on the ongoing development of diagnostic and therapeutic (‘theranostic’) products using targeted radiation. 

This process treats cancerous or diseased cells, an alternative approach to many cancer therapies which also attack healthy tissue at the same time.

It has been one of the many ASX healthcare shares that has suffered significantly over the last 12 months. 

Its share price is currently down 50% compared to a year ago. 

However, brokers have consistently reinforced that its underlying fundamentals warrant a higher share price. 

Recently, Bell Potter placed a buy rating and $19 price target on Telix shares. 

Meanwhile, Morgans has price target of $24.33 on the healthcare stock. 

The broker recently said that industry consolidation may spark additional interest in Telix.

Recent news flow around convertible note refinancing, a solid 1Q26 sales (up 11%) and the Regeneron collaboration shows there is plenty happening inside TLX. TLX points to several milestones expected in 2026 including a FDA clearance for the brain cancer diagnostic and resubmission of the kidney cancer diagnostic. Consensus has a target price of A$24.33 which provides significant upside to the current share price.

From yesterday’s closing price of $13.03, these targets indicate an upside potential between 45% and 88%. 

Catalyst Metals close to yearly lows 

Another buy low candidate is Catalyst Metals. 

The company engages in the acquisition, exploration and development of mineral properties. Its portfolio includes Tandarra Gold, Raydarra, Four Eagles, Macorna Bore, Whitelaw Gold Belt and Sebastian projects.

At the time of writing, its share price is down almost 33% year to date. 

It now sits close to a 52-year low at $4.96. 

However, brokers are anticipating a big turnaround for these ASX shares. 

Morgans has a buy rating on this ASX gold mining share with a 12-month target of $15.13.

Brokers have acknowledged short term cost pressures, but Morgans maintains optimism thanks to solid operating cash flow. 

CYL continues to strengthen their balance sheet, adding A$39m during the quarter to close with A$277m in cash and bullion while reinvesting heavily across growth and exploration initiatives.

Growth momentum continues across the Plutonic Belt, with multiple new ore sources advancing (Trident, K2, Old Highway) alongside a high-grade discovery at Cinnamon, supports the pathway to c.200kozpa production.

From yesterday’s closing price, the price target from Morgans indicates an upside potential of over 200%. 

The post After yesterday’s crash these ASX shares could rebound up to 200% appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares I’d buy for the future of healthcare
• What does a takeover in the US tell us about the value of Telix shares?
• 4 ASX 200 shares tipped to jump another 70-80%
• These are the 10 most shorted ASX shares
• These ASX 200 shares have been smashed. I think patient investors should pay attention

Motley Fool contributor Aaron Bell has positions in Telix Pharmaceuticals. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Telstra Group Ltd (ASX: TLS) shares hit a multi-year high last week.

They have since fallen 6%.

That kind of reversal after a strong run tends to unsettle investors.

But is the selling a warning sign, or simply a natural pause after an extended rally?

The answer matters, because Telstra has become one of the more widely held defensive stocks on the ASX in 2026.

What happened

The pullback started when investors began locking in gains after the share price spiked to a multi-year high early last week.

That profit-taking was then accelerated when a flurry of brokers downgraded their outlooks on the stock.

Most notably, Shaw and Partners named Telstra as a sell this week, stating:

Telstra is currently trading at elevated levels, in our view, with its defensive appeal pushing the share price higher. We believe its limited growth potential and narrowing dividend yield make the risk-reward less attractive at current prices.

The bull case is still intact

The bear case on Telstra is primarily about valuation, not the business itself.

And the business itself continues to perform well.

Telstra shares are up 7% year to date and 10% higher than this time last year, even after this week’s pullback.

The company’s mobile division remains the dominant force in Australian telecommunications, with pricing power and subscriber growth continuing to support revenue.

The $1.25 billion on-market share buyback announced earlier this month is a signal of management’s confidence in the business at current prices.

In the first half of FY2026, Telstra delivered mobile services revenue growth of 5.6% and group cash EBIT growth of 14%, confirming the underlying momentum is real.

Analysts forecast a full-year FY2026 dividend of 21 cents per share, representing a 10% increase on FY2025, with UBS forecasting further dividend increases through to FY2030.

The valuation debate

The crux of the bear argument is that Telstra now trades at a premium to its historical average, with its defensive qualities fully priced in.

Brokers have an average price target of $5.33, implying a slight downside from current levels.

That is a tight spread between current price and consensus target, which limits the upside case for new buyers.

Furthermore, the defensive premium that Telstra commands could come under pressure if interest rates stay elevated, as higher rates make income from term deposits and bonds more competitive relative to dividend stocks.

That dynamic is one reason Shaw and Partners cited the narrowing dividend yield as a concern.

Foolish takeaway

The 6% pullback in Telstra shares does not signal anything fundamentally wrong with the business.

The mobile franchise is strong, the dividend is growing, and the buyback shows board confidence.

What the selloff does reflect is a valuation that had run ahead of the underlying growth rate.

For long-term income investors already holding Telstra, there is little reason to panic.

For new investors considering entry, the current pullback has created a marginally better starting point than last week.

The post Why are Telstra shares falling and should investors be concerned? appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares I’d buy for reliable passive income
• Why Telstra and these ASX dividend shares could be top buys for income
• Telstra shares fall 6% from a multi-year high: What happened, and is it time to sell up?
• How much is needed in superannuation to target a $3,000 monthly passive income?
• How to start investing in ASX shares in 2026

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a disappointing session and sank deep into the red. The benchmark index fell 1.45% to 8,592.9 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market looks set to rise on Friday following a positive night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 55 points or 0.65% higher this morning. On Wall Street, the Dow Jones was up 0.05%, the S&P 500 rose 0.6%, and the Nasdaq stormed 0.9% higher.

Oil prices rise

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) will be on watch on Friday after a positive night for oil prices. According to Bloomberg, the WTI crude oil price is up 0.9% to US$89.46 a barrel and the Brent crude oil price is up slightly to US$94.31 a barrel. Traders are waiting for news on whether the US-Iran ceasefire will be extended.

Mineral Resources shares named as a buy

Mineral Resources Ltd (ASX: MIN) shares could be good value according to analysts at Bell Potter. This morning, the broker has retained its buy rating on the mining and mining services company’s shares with an improved price target of $80.50. It said: “Completion of the US$765m MIN-POSCO lithium transaction will accelerate balance sheet deleveraging paired with cash flows from persistent iron ore and lithium market prices. MIN’s mining services platform delivers a stable earnings stream that is expected to expand with internal and third-party volume growth. The company is well positioned to execute its next phase of growth with potential to reinstate fully franked dividends.”

Gold price recovers

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a good finish to the week after the gold price rebounded overnight. According to CNBC, the gold futures price is up 1% to US$4,527.9 an ounce. Traders were buying the precious metal after the release of US inflation data which was in line with expectations.

Champion Iron given hold rating

Champion Iron Ltd (ASX: CIA) shares are fully valued now according to analysts at Bell Potter. In response to the iron ore miner’s FY 2026 results, the broker has retained its hold rating with a trimmed price target of $4.85 (from $5.00). It said: “CIA expect to ramp-up high-grade concentrate (DRPF grade) production from mid2026. While we expect iron content price premiums for this product, full value-in-use premiums are unlikely to be realised until longer-term offtake is secured. Free cash flow should improve from FY27 as capex rolls off, supporting debt servicing and ongoing dividends. On valuation, we retain our Hold recommendation.”

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

More reading

• Is this ASX materials stock a buy, hold or sell after sliding on earnings results?
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: Kingsgate, Metcash, Woodside shares
• 6 ASX 200 shares just upgraded by the experts
• Why Eagers Automative, Endeavour, IPH, and Newmont shares are sinking today

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. 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.

Can $5,000 a year really turn into serious wealth?

I think it can. But the important part is not trying to make every dollar work overnight. It is letting repeated investing and time do the work together.

Investing $5,000 a year into ASX shares

Let’s assume an investor puts $5,000 a year into ASX shares and achieves an average annual return of 9%.

That return is not guaranteed. The share market will have strong years, flat years, and painful years. But 9% is a useful long-term target for understanding how compounding can work.

After five years, investing $5,000 a year at 9% could grow to roughly $32,000. That is a solid result, but it may not feel life-changing.

After 10 years, it could be worth around $80,000.

At that point, the portfolio is starting to look more meaningful. But the really interesting part comes later, when the investment returns start becoming larger than the annual contribution.

That is when compounding begins to feel more powerful.

The later years can change everything

After 20 years, investing $5,000 a year at 9% could grow to around $280,000.

After 30 years, it could grow to approximately $740,000.

Finally, after 34 years, the figure could be more than $1 million.

That is the part I find most interesting. The annual investment amount has not changed. It is still $5,000 a year. But the result becomes much larger because the returns are building on a bigger and bigger base.

This is why I think time is such an underrated part of investing.

A person does not need to find the perfect ASX share every year. They need a sensible plan, patience, and the discipline to keep putting money to work through different markets.

What would I invest in?

If I were investing $5,000 a year, I would focus on quality and diversification.

That could mean using an ASX exchange-traded fund (ETF) like the Vanguard MSCI Index International Shares ETF (ASX: VGS) for broad exposure, then adding individual ASX shares where I see strong long-term opportunities.

I would want businesses with durable demand, capable management, good balance sheets, and the ability to grow earnings over time.

I would not want the plan to depend on one hot stock, one sector, or one short-term theme. Over decades, the market will change many times. A more balanced approach gives investors a better chance of staying the course.

Foolish takeaway

So, can someone get rich by investing $5,000 a year into ASX shares?

I think the answer is yes, provided they give the plan enough time and avoid getting shaken out by every market downturn.

The most powerful part of this strategy is not the first year, or even the first decade. It is what happens when the habit keeps going for 20, 30, or 35 years.

That is when ordinary annual contributions can become something much more impressive.

The post Can you get rich by investing $5,000 a year into ASX shares? appeared first on The Motley Fool Australia.

More reading

• 3 top ASX ETFs for Gen Z investors to buy
• How to become a millionaire on a $70,000 salary
• An easy 2 ASX ETF portfolio to fund retirement 
• If I could buy only one ASX ETF for the next 10 years, this could be it
• VGS vs IVV: Which ASX ETF is better?

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 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.

Most investors know they should be investing in Australian shares.

Far fewer know the most efficient way to do it.

The Betashares Australia 200 ETF (ASX: A200) solves that problem in a single trade, giving investors ownership of 200 of the largest companies listed on the ASX at a management fee of just 0.04% per annum.

This is the lowest of any Australian shares index ETF available on the market.

Or, to put it in other words, that is $4 per year on a $10,000 investment.

What A200 actually holds

A200 tracks the Solactive Australia 200 Index, which covers 200 of the largest ASX-listed companies by free float-adjusted market capitalisation.

The top holdings read like a who’s who of Australian business: Commonwealth Bank, BHP, CSL, NAB, Westpac, ANZ, Macquarie, and Wesfarmers all feature prominently.

Financials make up approximately 32% of the fund, materials approximately 20%, and healthcare around 10%.

That concentration in banks and miners is both a strength and a risk.

It means A200 captures the extraordinary dividend income that Australian banks and resource companies generate.

But it also means the fund underperforms in periods when technology or healthcare stocks lead global markets.

The income case

For income investors, A200 offers a particularly attractive proposition.

The fund pays distributions quarterly, in January, April, July, and October, with the most recent quarterly distribution of $1.20 per unit paid on 20 April 2026 carrying 85.14% franking.

That high franking level reflects the concentration of ASX banks and major miners in the portfolio, which historically pay some of the most tax-effective fully franked dividends available anywhere in the world.

For Australian taxpayers who can utilise those credits, their effective dividend yield rises significantly above the headline figure.

The performance track record

A200 was launched in May 2018 and has delivered annualised total returns of approximately 9.8% per annum since inception, closely tracking the ASX 200’s performance after fees.

Over the past twelve months, the fund has delivered a total return of approximately 2.4%, reflecting a market that has been held back by rate hikes and healthcare sector weakness even as resources and energy stocks surged.

A200’s 52-week high of $153.82 was reached on 2 March 2026, with the fund currently trading at approximately 6% below that peak.

This may represent a more attractive entry point than was available earlier in the year.

Why the 0.04% fee matters more than most investors realise

The difference between a 0.04% and a 0.20% management fee sounds trivial.

Over 30 years on a $100,000 investment growing at 8% per annum, the difference in ending wealth is approximately $85,000.

That is the compounding cost of paying a slightly higher fee, year after year, on the same underlying index exposure.

A200’s 0.04% fee is not just the lowest Australian shares ETF fee on the ASX.

It is meaningfully lower than its closest competitors, including Vanguard’s VAS at 0.07% and iShares’ IOZ at 0.09%, giving A200 a cost advantage that compounds in investors’ favour over time.

The risks

A200 is not a hedge against a broad Australian market downturn.

If the ASX 200 falls, A200 falls with it.

The concentration in financials and materials means the fund is particularly sensitive to housing market stress, commodity price cycles, and Chinese economic conditions.

Investors seeking global diversification will need to complement A200 with offshore exposure.

Foolish takeaway

A200 will, consistently and at minimal cost, deliver the return of Australia’s 200 largest businesses, including their fully franked dividends, reinvested quarterly into a growing portfolio.

For long-term investors who want a simple, low-cost core allocation to Australian shares, it is very hard to beat.

The post Why this ASX ETF could be the simplest way to own Australia’s 200 best businesses appeared first on The Motley Fool Australia.

More reading

• Building wealth with ASX ETFs? Don’t make these errors
• Top 10 ASX shares bought and sold in April

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 CSL, Macquarie Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended BHP Group, CSL, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX materials stock Champion Iron Ltd (ASX: CIA) has been making headlines this week after tumbling on earnings news. 

Champion Iron is an iron ore miner, explorer, and developer operating in Quebec, Canada. The company currently owns and operates the Bloom Lake open-pit mine which exports high-grade, low-contaminant iron ore globally.

As Aaron Teboneras reported yesterday, investors were exiting their positions after Champion Iron released its fourth-quarter results.

What did the company report?

For the three months ending March 31, the company reported: 

• Champion Iron produced 3.4 million wet metric tonnes (wmt) of high-purity 66.2% iron ore concentrate during the quarter. This was up 8% from the same period last year.
• Revenue fell to US$414.5 million for the quarter, down from US$425.3 million a year earlier.
• Net income fell, dropping to US$23.2 million from US$39.1 million.

These results left investors seemingly disappointed, with the ASX materials stock falling over 4% on Thursday following the release. 

Its share price is now down 22% year to date. 

Bell Potter weighs in 

Following these results, the team at Bell Potter provided updated guidance on this ASX materials stock. 

Largely, the company delivered FY26 earnings below Bell Potter’s expectations, mainly due to weaker realised iron ore prices and higher operating costs. 

EBITDA was C$499 million compared with the broker’s forecast of C$541 million, while net profit came in at C$169 million versus expectations of C$207 million.

According to Bell Potter, the increase in unit costs was driven by lower sales volumes, logistics disruptions, severe winter weather and inventory de-stocking. The company also provided little additional operational commentary beyond its April production update.

CIA elected to pay a much lower final dividend to preserve cash liquidity given volatile macroeconomic conditions, breaking a track record of consistent C$0.10/sh semi-annual payments.

Hold recommendation maintained for ASX materials stock 

Based on this guidance, Bell Potter retained its hold recommendation. 

The broker also lowered its 12 month price target to $4.85 (previously $5.00). 

Based on this share price target, the broker sees little upside for this ASX materials stock. 

Champion Iron shares closed trading yesterday at $4.78. 

CIA expect to ramp-up high-grade concentrate (DRPF grade) production from mid 2026. While we expect iron content price premiums for this product, full value-in-use premiums are unlikely to be realised until longer-term offtake is secured. Free cash flow should improve from FY27 as capex rolls off, supporting debt servicing and ongoing dividends. On valuation, we retain our Hold recommendation.

The post Is this ASX materials stock a buy, hold or sell after sliding on earnings results? appeared first on The Motley Fool Australia.

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• Warning: Champion Iron shares slide as profits take a hit
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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 market frenzy that swept ASX gold stocks in 2025 and into the start of 2026 seems to have subsided. 

Investors were pouring into the safe-haven sector over the last 18 months. However it now appears many see opportunities elsewhere. 

Despite this shifting sentiment, the team at Bell Potter has just identified a new ASX gold stock and initiated coverage with significant optimism. 

The company in focus is Aurum Resources Ltd (ASX: AUE). 

Company overview 

Aurum Resources is a Perth-based gold exploration and development company. It is focused on its two projects in Côte d’Ivoire, West Africa:

• The flagship Boundiali Gold Project (BGP) and;
• The more recently acquired Napié Gold Project (NGP). 

According to Bell Potter, Aurum Resources is well funded, with a cash balance of $61.5m at end March 2026. 

It is undertaking an aggressive exploration and Resource growth strategy with the objective of building a substantial multi-asset gold business in Côte d’Ivoire. 

Current funding is sufficient to achieve key upcoming milestones of a Pre-Feasibility Study (imminent), Resource updates (2HCY26) and completion of a Definitive Feasibility Study (4QCY26).

Like many ASX small-cap stocks, it has experienced plenty of volatility this year. 

At the time of writing, it is down 23% year to date. 

However Bell Potter believes it can double in the next 12 months. 

Strong ownership and value mindset 

Bell Potter believes the ASX gold stock’s management and board are strongly aligned with shareholders.

According to the broker, the company is committed to cost effective strategies. 

A clear example is AUE’s owned and operated fleet of 16 diamond drill rigs which operate at a fraction of the cost of third-party rigs and under the direct control of AUE, bringing multiple benefits.

Bell Potter estimates that more than 90% of Aurum Resources’ spending in FY26 year-to-date has gone directly into exploration and evaluation activities, rather than overheads.

Aurum Resources has grown its mineral resources from 3.28 million ounces of gold in July 2025 to 4.38 million ounces by May 2026 at an estimated discovery cost of only A$15–17 per ounce. This is considered very cost-effective for the gold industry.

Significant upside for this ASX gold stock

Bell Potter has initiated coverage on this ASX gold stock with a speculative buy recommendation. 

The broker has also placed a price target of $1.30 on the company, which indicates an upside potential of 136% from current levels. 

AUE is one of the most successful gold exploration companies active in West Africa. Its management team has a demonstrated track record of discovery, Resource growth, project construction, development, operation and divestment. AUE is well funded, shows exploration upside and ongoing successful, value accretive drilling.

The post This ASX small-cap gold stock could surge 136% according to Bell Potter appeared first on The Motley Fool Australia.

More reading

• Is this ASX materials stock a buy, hold or sell after sliding on earnings results?
• Why this ASX real estate stock is a compelling buy according to Bell Potter
• Are Nufarm shares a buy, hold or sell after jumping 13% on half-year results?
• This ASX industrials stock could be set to race 20% higher: Expert
• This ASX small-cap could be set to rise 47%

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.