Tag: Stock pick

IperionX Ltd (ASX: IPX) is back in the spotlight today after unveiling a significant funding and supply win from the US government.

Shares in the advanced materials company are trading 2.58% higher at $7.17 in late morning trade. That extends a powerful rally which has now seen the stock surge around 32% over the past month.

So, what did the company announce?

Fresh support from the US government

According to the release, IperionX confirmed it has received the final US$4.6 million tranche of funding under a previously announced US government award.

The funding comes through the US Department of War’s Industrial Base Analysis and Sustainment program, which aims to strengthen domestic supply chains for critical materials.

Importantly, this latest payment completes a total US$47.1 million funding package that has been progressively awarded to support the company’s titanium manufacturing strategy in the United States.

Management said the funds will be used to help scale up production capacity at its titanium manufacturing campus in Virginia, with planning, design, and long lead-time equipment activities already underway.

Free feedstock supports cost control

Alongside the funding, the US government has also transferred around 290 metric tonnes of high-quality titanium alloy scrap to the company at no cost.

At current operating levels, management estimates the material represents roughly 1.5 years’ worth of titanium feedstock. Free feedstock lowers costs and reduces supply risk for IperionX.

It also reinforces the strategic importance of the company’s technology and assets within the US defence and advanced manufacturing ecosystem.

Why this matters for the bigger picture

Titanium is a critical material used across defence, aerospace, space, additive manufacturing, and advanced industrial applications.

The US government has made no secret of its desire to reduce reliance on imported titanium and establish secure domestic supply chains.

That backdrop helps explain why funding is being directed toward domestic producers with scalable, low-carbon technology. It also puts pressure on companies to prove they can deliver reliable supply at competitive cost.

Foolish Takeaway

With the share price already well up over the past year, now up roughly 60%, today’s move suggests the update has been taken positively by the market.

That said, after a strong run, the stock looks priced for good news in the near term. While the longer-term opportunity remains, I would be inclined to wait for a pullback before getting involved, rather than chasing momentum at current levels.

As always, with any emerging industrial technology company, there is still an execution risk, and volatility should be expected along the way.

The post This ASX stock just scored a US government win. Here’s the details appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
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• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

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 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.

Monadelphous Group Ltd (ASX: MND) shares have been smashing the market over the past 12 months.

During this time, the ASX 200 stock has risen over 100% to currently trade at $29.72.

Despite this incredible rise, this diversified services company has just received an upgrade from analysts at Bell Potter.

Let’s see what the broker is saying about this high-flying stock.

What is the broker saying?

Bell Potter has been impressed with the company’s performance in FY 2026. It highlights that Monadelphous has won significantly more contracts than it was expecting.

Commenting on recent developments, the broker said:

Since we last published in November 2025, MND has maintained its robust contract award momentum, securing work packages (EC and M&I) valued at ~$835m, taking FY26TD contract award value to ~$1,400m (compared with ~$1,550m in the pcp). Notable contract awards include: the ~$250m multidisciplinary construction work package for Rio Tinto’s Brockman Syncline 1 iron ore development (awarded 22 December 2025); and the $300m 5-year maintenance services contract with Rio Tinto for its iron ore operations in the Pilbara region, WA (awarded 14 January 2026).

Given EC and M&I contract terms are generally greater than one year, we anticipate progressively larger annual contract awards over FY24 to FY26TD to imply a positive revenue growth trajectory over FY26-28. For context, MND was awarded contracts valued at ~$1,650m in FY23, $2,090m in FY24, $2,280m in FY25 and $1,405m in FY26TD (~$2,600m annualised).

ASX 200 stock upgraded

According to the note, in response to these contract wins, Bell Potter has lifted its earnings estimates through to FY 2028.

This has seen the broker upgrade its shares to a buy rating with an improved price target of $33.00 (from $24.00).

Based on its current share price of $29.72, this implies potential upside of 11% for investors over the next 12 months.

In addition, Bell Potter is expecting a dividend yield of approximately 3% in FY 2026 from the ASX 200 stock, which boosts the total potential return to 14%.

Commenting on its buy recommendation, the broker said:

MND’s contract award streak has exceeded our expectation, reflecting a stronger development pipeline in the Mining and Energy sectors than we had anticipated. We believe MND has won more than its fair share of work, reinforcing the company’s position as a market leader with robust blue chip customer relationships. Importantly, MND’s current orderbook builds a strong foundation for earnings growth in the near-term that is not reflected in consensus expectations.

The post Why Bell Potter just upgraded this smashing ASX 200 stock appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Friday
• Why EBR Systems, Endeavour, Monadelphous, and Neuren shares are racing higher today
• A fourth contract win in under a month has this ASX 200 company’s shares at a new record high
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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.

There are a lot of ASX shares to choose from on the Australian share market.

To narrow things down, let’s take a look at three shares that brokers have just given their verdicts on. They are as follows:

Catalyst Metals Ltd (ASX: CYL)

This gold miner’s performance in the first half of FY 2026 has gone down well with analysts at Bell Potter.

In response to its quarterly update, the broker has retained its buy rating with an improved price target of $13.50.

Commenting on its quarter, Bell Potter said:

CYL delivered record quarterly production from Plutonic, sourcing ore from three operations: Plutonic, Plutonic East, and Trident OP. K2 is slated as the fourth mine, with higher-grade ore expected before 30 June 2026. Development of Old Highway the fifth mine, progressed with key approvals; we model first production in 2HFY27, contributing ~35kozpa at steady state. OP mining at Trident is expected to conclude in 2HFY26, transitioning to high grade UG operations. We forecast Trident UG to reach steady state of ~50kozpa by 2027. These five mines are to underpin CYL’s 10-year ~200kozpa strategy, which we forecast to be achieved by FY29.

NRW Holdings Limited (ASX: NWH)

Over at Morgans, its analysts have been looking at this contract services provider’s shares.

The broker sees value in the company’s shares at current levels and believes there is scope for a re-rating. As a result, it has put an accumulate rating and improved price target of $6.00 on its shares. It said:

In our view, NWH has scope to re-rate to 11x FY26/27 EBIT in the near term. The company’s relative valuation has lagged the sector following a challenging FY25, marked by cash collection issues, an unexpected CFO transition, material weather disruptions in QLD, and a weak met coal market. With the exception of weather – which remains inherently difficult to forecast – these issues are in the rear-view mirror. We expect a strong 1H26, with demand indicators suggesting that earnings momentum will extend into 2H26.

Our FY26 EBITA forecast has been upgraded to near the top of the guidance range of $260-265m, which translates to +26% EPS growth. We view guidance as conservative, though we remain within the range given weather risk in 2H. We lift our price target to $6.00 (from $4.50) and maintain our Accumulate recommendation.

Paladin Energy Ltd (ASX: PDN)

Bell Potter remains positive on this ASX uranium share. It has retained its buy rating and lifted its price target to $12.50.

The broker believes that Paladin Energy is entering a stable period and highlights that the Patterson Lakes South project is being largely overlooked by the market. It said:

Our target price is increased to $12.50/sh (previously $11.35/sh) on adjustments to our production, sales and costs outlook. PDN is entering a period of relative stability, with rising uranium spot and term prices. As LHM production steadies, the market should gain comfort around performance. We believe the market is ascribing very little value to Patterson Lakes South (PLS), which provides upside as the project is de-risked. EPS changes in this report are: FY26 -69%, FY27 -29% and FY28 -6%.

The post Buy, hold, sell: Catalyst Metals, NRW, and Paladin Energy shares appeared first on The Motley Fool Australia.

More reading

• Bell Potter names the best ASX uranium stocks to buy now
• Why BHP, BlueScope, Catalyst Metals, and Ryman shares are storming higher today
• This ASX 200 gold share is racing 5% higher on record quarter
• Here are the top 10 ASX 200 shares today
• These are the 10 most shorted ASX shares

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.

Capstone Copper Corp (ASX: CSC) shares are having a strong finish to the week.

In morning trade, the ASX copper stock is up 7% to $15.64.

Why is this ASX copper stock jumping?

Investors have been buying this copper miner’s shares after it released a strong production update.

According to the release, on a consolidated basis, Capstone Copper achieved its annual copper production guidance for FY 2025, delivering record annual copper production of 224,764 tonnes.

It notes that consolidated copper production increased by 22% compared to FY 2024 and by 37% compared to FY 2023. This was driven by the ramp-up of the Mantoverde Development Project (MVDP) and the Mantos Blancos debottlenecking project.

For the fourth quarter of FY 2025, the ASX copper stock also achieved record quarterly consolidated copper production of 58,273 tonnes. Management revealed that both Mantoverde and Mantos Blancos delivered record production during the quarter. This was supported by Pinto Valley achieving its strongest quarter of production during 2025 and a solid performance from Cozamin. The latter delivered its third year in a row of increased annual copper production.

Commenting on its performance, the ASX copper stock’s president and CEO, Cashel Meagher, said:

2025 marked an inflection point for Capstone, with the successful execution of several key catalysts delivering transformational copper growth. For the fourth year in a row, we achieved record consolidated copper production, driving a 22% increase in output year-over-year. 2025 consolidated copper production of 224,764 tonnes finished within our guidance range, as we navigated ramp-ups at our two mines in Chile and a severe drought in central Arizona.

During 2025, we delivered a number of milestones supporting our growth trajectory, including sanctioning construction of the Mantoverde Optimized Project, announcing a partner for the Santo Domingo Project, reporting strong results from the first phase of a new exploration program initiated in the Mantoverde-Santo Domingo district, and completing our balance sheet re-financing strategy. In 2026, we are focused on disciplined execution and reliable results, positioning the Company for its next phase of value-accretive growth.

Strike action

The ASX copper stock also provided an update on the union strike at Mantoverde.

Unfortunately, Union #2 currently remains on strike. However, the Mantoverde operation has been able to continue to operate successfully since the initiation of the strike, with copper production maintained at approximately 75% of normal levels to date.

It notes that it “will continue to comply with all applicable legal processes, respect the rights of all its employees, encourage constructive engagement with the union, and cooperate fully with the relevant authorities by providing any requested information.”

The post Guess which ASX copper stock is jumping 7% on record results appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today

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.

The All Ordinaries Index (ASX: XAO) is just about flat in morning trade, but that’s not holding back this surging ASX All Ords lithium share.

The fast-rising stock in question is Wildcat Resources Ltd (ASX: WC8).

Wildcat shares closed yesterday trading for 43.5 cents. In late morning trade on Friday, shares are swapping hands for 45 cents apiece, up 3.5%.

This sees the Wildcat Resources share price up 80% over 12 months, racing ahead of the 7.3% gains delivered by the All Ords over this same period.

And investors who bought the 20 June dip on the ASX All Ords lithium share will be sitting on gains of 246.2% at the time of writing.

Boom!

Here’s what’s catching investor interest today.

ASX All Ords lithium share lifts on quarterly results

The Wildcat Resources share price is charging higher again today following the release of the miner’s December quarter update.

Over the three months to 31 December, the ASX All Ords lithium share continued to advance its Western Australian lithium assets.

Management highlighted the success at the company’s Bolt Cutter Central Lithium Project, located in close proximity to its Tabba Tabba Project. They noted that exploratory drilling at Bolt Cutter “expanded a large, stacked spodumene-bearing pegmatite system that remains open”.

Standout results from the reverse circulation (RC) drilling program over the quarter included: 12m at 1.65% Li2O from 90.0m; and 11m at 1.32% Li2O from 54.0m.

Wildcat intends to commence diamond drilling at Bolt Cutter in 2026.

And Definitive Feasibility Study (DFS) work progressed at Tabba Tabba. The miner said that metallurgical test work had demonstrated the potential to unlock additional ore and by-product credits. The flagship project has a spodumene-dominant Mineral Resource of 74.1Mt at 1.0% Li2O (at a 0.45% Li2O cut-off grade) and a tantalum Mineral Resource of 1.2Mt at 482ppm Ta2O5.

What else happened over the quarter?

In other key developments over the quarter, the ASX All Ords lithium share acquired a tenement adjoining Tabba Tabba. The miner said it expects the new tenement holding to “materially improve mine layout flexibility and deliver potential operating and capital cost efficiencies”.

Also moving Tabba Tabba closer to development over the quarter, Wildcat Resources executed a Native Title Agreement with the Nyamal native title holders, which management called “a critical milestone”.

Turning to the balance sheet, as at 31 December, the ASX All Ords lithium share had $48.5 million in cash, leaving it well funded for the next stages of exploration.

The post Guess which surging ASX All Ords lithium share is smashing the benchmark again today appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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.

Mining stocks are back in the spotlight as 2026 gets underway, with strong copper prices and rising global demand driving momentum.

Copper prices have pulled back slightly from recent record highs, but they remain historically elevated. Copper is trading around US$6 per pound, up roughly 36% over the past year, according to Trading Economics. Even after the recent dip, prices are still near all-time highs.

Demand is being driven by electric vehicles, renewable energy, power grids, and the rapid expansion of data centres. With supply struggling to keep pace, many analysts believe copper could be one of the most important commodities of the next decade.

Why copper demand is accelerating

Copper is essential to electrification. It is used in EVs, charging stations, wind turbines, solar farms, batteries, and data centres. A single electric vehicle uses roughly three to four times as much copper as a traditional petrol car.

According to industry forecasts, global copper demand could rise from about 28 million tonnes today to more than 40 million tonnes by 2040. At the same time, new copper supply is limited. Large discoveries are becoming rarer, and new mines take many years and billions of dollars to develop.

That supply-demand imbalance is a key reason copper prices have surged over the past year and why many analysts expect prices to remain elevated.

Sandfire Resources Ltd (ASX: SFR)

Sandfire Resources is one of the largest copper-focused companies on the ASX. Unlike diversified miners, Sandfire offers more direct exposure to copper prices.

The company operates copper assets in Spain and Botswana and has a market capitalisation of around $8.8 billion. Sandfire shares are currently trading near $19.09, and the stock is up about 103% over the past 12 months, reflecting strong copper prices and improving investor sentiment.

Because Sandfire is more concentrated in copper, its share price can be volatile. However, that leverage can work in investors’ favour when copper prices are rising.

For investors who are bullish on copper, Sandfire provides a clear and focused way to gain exposure.

Rio Tinto Ltd (ASX: RIO)

Rio Tinto is one of the world’s largest mining companies, with operations spanning iron ore, aluminium, lithium, and copper. The company has a market capitalisation of roughly $55 billion.

Rio shares are trading around $147.20 and are up about 23% over the past year. While iron ore remains its biggest earnings driver, copper is becoming increasingly important to the business.

Rio has been expanding its copper exposure and recently secured supply agreements linked to data centre and technology infrastructure demand. The company also offers income appeal, with a dividend yield of about 4%.

For investors who want copper exposure without taking on the higher risk of a pure-play miner, Rio offers scale, diversification, and strong cash generation.

Foolish bottom line

Copper is emerging as a key commodity for the decade ahead, driven by electrification, clean energy, and growing AI infrastructure demand.

Sandfire Resources offers higher-risk, higher-reward exposure to rising copper prices, while Rio Tinto provides a more stable and diversified way to gain exposure.

For investors considering mining opportunities in early 2026, both stocks could surprise as the copper story continues to unfold.

The post Mining momentum: 2 ASX stocks that could surprise investors this January appeared first on The Motley Fool Australia.

More reading

• $10,000 invested in WIRE ETF a year ago is now worth…
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• A fourth contract win in under a month has this ASX 200 company’s shares at a new record high
• Monadelphous secures $300m Rio Tinto contract
• Why I look at past performance of ASX shares to help think about the future performance outlook

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 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.

James Hardie Industries PLC (ASX: JHX) shares are charging higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) building materials company closed yesterday trading for $34.99. In morning trade on Friday, shares are changing hands for $35.70 apiece, up 2%.

For some context, the ASX 200 is down 0.1% at this same time.

This outperformance follows the release of an update on the company’s manufacturing optimisation plans.

Here’s what we know.

James Hardie shares lift on forecast cost savings

Before market open today, James Hardie announced some of the steps it is taking to optimise its manufacturing operations as part of its “commitment to operational excellence” through the Hardie Operating System.

Among the efficiency actions that could support James Hardie shares longer term, the company will close its manufacturing facilities in Fontana, California, and Summerville, South Carolina, within the next 60 days.

The soon-to-be shuttered sites represent around 6% of James Hardie’s year-to-date North American manufacturing volume. The company said this volume will be absorbed by its other facilities.

The company’s Fontana site’s Innovation and Research & Development functions will remain in operation.

Management expects the site closures and optimisation initiatives to realise cost savings of approximately $25 million a year beginning in Q1 FY 2027.

On the cost front, James Hardie shares could be facing some modest pushback amid the forecast $40 million to $44 million one-time pre-tax charges the company expects to incur in connection with its site closures and optimisation actions. Those costs will primarily be recognised in Q4 FY 2026 and split evenly between cash and non-cash items.

James Hardie reaffirmed the guidance for the full year of FY 2026 that it previously provided on November 18.

What did management say?

Commenting on the optimisation initiatives helping to boost James Hardie shares today, CEO Aaron Erter said, “During the past several years, James Hardie has made significant investments in modernising our manufacturing facilities to improve efficiency, support our material conversion opportunities, and to better serve our customers.”

Erter added:

Following a comprehensive review of our manufacturing network, we have decided to transfer more production volume to our modern, advanced plants. These actions will further improve our cost structure, increase productivity, and reinforce the Hardie Operating System, while ensuring we have the capacity needed to support our growth initiatives.

Addressing the impacted employees, Erter concluded, “We are grateful for their many contributions… The decision to close our plants in Fontana, California, and Summerville, South Carolina was not taken lightly.”

The post James Hardie shares lift off on $25 million cost saving initiatives appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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 ANZ Group Holdings Ltd (ASX: ANZ) share price has been an incredible performer over the last 12 months, rising by close to 30%, as the chart below shows.

There are few times in ANZ’s history where it has risen by so much in just one year.

The ASX bank share’s rise hasn’t yet been driven by a huge jump in earnings, but profit could improve in FY26.

Let’s take a look at whether experts think the business can rise further and how much profit the bank could deliver in FY26.

ANZ share price prediction

A price target is where analysts think the share price will be in 12 months from the time of the investment call.

CMC Markets has a collation of eight ratings on the ASX bank share, with an average price target of $34.37. That implies the group of analysts think the ANZ share price could drop by around 8% within a year, from the valuation at the time of writing.

But, that’s just the average price target, there are views that are both more optimistic and more pessimistic. The best price target suggests a possible rise of 8%, while the most pessimistic one implies a possible decline of close to 20% for the ANZ share price.

Time will tell whether analysts are right to be generally negative on the valuation or not.

Which way is net profit projected to go?

The broker pointed out in a note that after ANZ’s AGM in December, the bank’s CEO said there were five priorities.

First, it’s embedding the new leadership team.

Second, it’s aiming to accelerate the integration of Suncorp Bank by June 2027.

Third, it’s delivering the ANZ Plus digital front-end to retail and small and medium enterprise (SME) banking customers by September 2027.

Fourth, it’s aiming to simplify the organisation.

Fifth and finally, it’s looking to enhance its non-financial risk efforts.

UBS highlighted that these priorities are within ANZ’s 2030 strategy, which will be executed in two phases. First, in FY26 and FY27, it’ll focus on substantial productivity improvements and an initial investment for growth. Second, beyond FY27, it’ll look to accelerate growth and outperform the market.

The bank’s success with these efforts could be integral for the ANZ share price.

A key part of ANZ’s targets include reducing its cost-to-income ratio to the mid-40s by FY28 and sustaining that through to FY30, along with improving the return on tangible equity (ROTE) from 10.3% in FY24 to 12% by FY28, then 13% by FY30.

The cost reduction program includes 3,500 staff cuts, with around $543 million in savings – this is underway.

But, at the same time, it plans to increase its number of bankers in retail and business and private banking by up to 50% over the next five years. UBS said it’s targeting top-line revenue growth in a saturated market.

The ASX bank share has some work to do considering it’s still losing market, according to UBS. The new CEO is targeting an improvement in these metrics from March 2026.

UBS predicts that ANZ’s statutory net profit could be $7.28 billion in FY26, with underlying net profit of $7.4 billion. That means the ANZ bank share is trading at 15x FY26’s estimated earnings. The broker UBS rates ANZ shares as a sell.

The post Is the ANZ share price a buy today? appeared first on The Motley Fool Australia.

More reading

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• Buy, hold, sell: ANZ Bank, Monadelphous, and Northern Star shares
• Which of the big 4 ASX 200 bank stocks paid the most passive income in 2025?
• Australian Bank Stocks: Which ones look like a buy (and which don’t)
• CBA shares returned just 4.9% last year. Should investors look elsewhere?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If I had $10,000 sitting in cash and wanted to put it to work on the ASX, I would be tempted to use exchange-traded funds (ETFs).

These financial instruments allow investors to effortlessly buy large groups of shares through a single investment.

But rather than trying to predict which market will perform best over the next 12 months, I would build exposure across Australian shares, global equities, emerging markets, and high-quality businesses with competitive advantages.

Here is how I would invest that $10,000 today.

Vanguard Australian Shares Index ETF (ASX: VAS)

I would start with Australian equities through the Vanguard Australian Shares Index ETF.

The VAS ETF provides access to the largest companies listed on the ASX. This includes the big four banks, mega-cap miners, healthcare leaders, and retail stars. It offers broad diversification and a strong income profile thanks to its franked dividends.

Australia remains a concentrated market, but it is one I am comfortable owning as a foundation. Many ASX shares generate offshore earnings, and the dividend income can be attractive for long-term investors.

If I were allocating $10,000, I would likely put around $3,000 into the Vanguard Australian Shares Index ETF as a core holding.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The next piece would be global diversification through the Vanguard MSCI Index International Shares ETF.

This ETF provides access to around 1,300 companies across developed markets outside Australia. It includes many of the world’s most influential businesses across technology, healthcare, and consumer sectors.

Holdings such as Microsoft, Apple, Nvidia, and Alphabet give investors access to long-term global growth themes without having to pick stocks.

I like the VGS ETF as a buy-and-hold investment that captures global economic growth over decades. I would allocate roughly $3,000 here.

VanEck Morningstar Wide Moat AUD ETF (ASX: MOAT)

To complement broad market exposure, I would add a quality focus through the VanEck Morningstar Wide Moat ETF.

The MOAT ETF focuses on US-listed companies that have competitive advantages, or economic moats. These are generally described as businesses with strong brands, pricing power, or structural advantages that make them difficult to disrupt. Essentially, they are companies that should be around for the long term.

While it is more concentrated than a broad index ETF, I like the emphasis on quality and capital discipline. Over the long term, businesses with competitive advantages tend to compound value more reliably than others.

I would invest around $2,000 into this ETF as a way to tilt the portfolio toward high-quality global companies.

Vanguard FTSE Asia ex Japan Shares ETF (ASX: VAE)

Finally, I would allocate a smaller portion to growth outside developed markets through the Vanguard FTSE Asia ex Japan Shares ETF.

The VAE ETF provides exposure to major Asian economies, including China, India, Taiwan, and South Korea. These regions offer higher long-term growth potential, albeit with greater volatility and risk.

I think some exposure to this area makes sense given the size and importance of Asian economies in global growth over the coming decades.

For that reason, I would invest the remaining $2,000 into this ETF.

Foolish Takeaway

This is not a portfolio designed to shoot the lights out in any single year. Instead, it is built for balance.

Between the VAS, VGS, MOAT, and VAE ETFs, investors get exposure to Australian income, global growth, high-quality US companies, and emerging Asian markets. For a $10,000 investment, that feels like a sensible way to spread risk while still aiming for long-term compounding.

The post I would put $10,000 of my savings into these ETFs appeared first on The Motley Fool Australia.

More reading

• Investing in the VanEck International Quality ETF (QUAL)? Here’s what you’re really buying
• 3 ASX ETFs that could be perfect for beginner investors in 2026
• Investing in the Vangaurd International Shares ETF (VGS)? Here’s what you’re really buying
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Motley Fool contributor Grace Alvino has positions in Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Apple, 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 Alphabet, Apple, Microsoft, Nvidia, VanEck Morningstar Wide Moat ETF, 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.

For generations of Australians, the retirement playbook has been simple: pay off the home, park superannuation in cash, maybe add an investment property, and live off the income.

It feels safe. Familiar. Sensible.

Yet for retirees facing longer life expectancies and rising living costs, that approach may be carrying more risk than many realise.

Two blind spots stand out: the silent erosion of purchasing power, and the belief that property is the only “real” way to generate passive income in retirement.

The hidden danger of playing it too safe with superannuation

Cash has an important role in retirement. It provides stability, liquidity, and peace of mind. High-interest savings accounts and term deposits can feel especially attractive when rates are elevated.

The problem is what happens over time.

Even when interest rates look healthy on paper, they can struggle to keep up with the real cost of living. 

Headline CPI is a blunt instrument. Retirees don’t spend like the “average household”. Healthcare, insurance, utilities, food, travel, and services often rise faster than the official inflation number.

When savings sit entirely in cash, purchasing power can quietly decline year after year. A bit like the frog in the boiling water – the balance might look stable, but what it buys subtly shrinks.

That is why many retirement portfolios are built with a mix of assets. Not to chase returns, but to ensure part of the portfolio continues to grow and generate income that can adapt to rising costs over decades.

Property isn’t the only path to retirement income

Ask Australians about investing, and property dominates the conversation. Investment properties are seen as tangible, reliable, and proven.

But that reputation often ignores the full picture.

Property ownership comes with concentration risk, high upfront costs, ongoing maintenance, vacancy risk, and a level of physical and emotional effort that doesn’t always suit retirees. Net rental income can be far lower than headline yields once expenses are considered.

Shares, on the other hand, have historically delivered strong long-term returns across multiple time periods, with far less hands-on involvement. Importantly, share market returns already account for reinvestment, operating costs, and business expenses before income reaches investors.

For retirees, that difference matters.

Using shares to support both income and longevity

Shares don’t have to mean speculation or sleepless nights. Many retirees and superannuation funds use diversified portfolios designed to deliver a blend of income and capital growth over long periods of time.

Exchange-traded funds (ETFs) can play a central role by removing much of the complexity and ongoing effort. Rather than picking individual companies, investors can access broad diversification and built-in discipline through a small number of holdings.

For income, something like Vanguard Australian Shares High Yield ETF (ASX: VHY) provides exposure to higher-yielding Australian companies, offering regular distributions that may help support retirement cash flow. To complement that, a growth-oriented option such as Vanguard Diversified High Growth Index ETF (ASX: VDHG) blends Australian and global shares into a single diversified investment designed to grow capital over time.

The precise mix will always depend on personal circumstances, but these examples highlight how retirees can combine income and growth in a broadly diversified, low-maintenance way — without the hands-on demands of managing property or constantly monitoring markets.

Crucially, this approach avoids the capital concentration and illiquidity of a single investment property, while offering daily liquidity and the potential for compounding income and capital growth that cash in a bank account alone often struggles to deliver over decades.

Cash still matters

None of this means abandoning cash or property altogether. Cash remains valuable for short-term spending needs, emergency buffers, and smoothing out market volatility. Property may still suit some investors depending on their circumstances.

The key idea is balance.

A retirement portfolio designed for longevity often blends cash for stability, income-producing assets for spending needs, and growth assets to protect purchasing power over decades.

Rethinking retirement in a longer-lived world

Australians are living longer than ever. A retirement that lasts 25 or 30 years demands more than safety alone. It requires adaptability.

Superannuation was designed to be invested, not frozen. By thinking beyond bank accounts and property alone, retirees can build portfolios that aim to generate passive income while still growing enough to support the years ahead.

Sometimes the biggest risk in retirement isn’t market volatility — it’s standing still.

The post Why superannuation tied only to property and cash could fail retirees appeared first on The Motley Fool Australia.

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Motley Fool contributor Leigh Gant 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 Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.