Tag: Stock pick

The ASX passive income stock Shaver Shop Group Ltd (ASX: SSG) may not be one of the most popular options for dividends. But, in some ways, it’s one of the leading options to consider.

Shaver Shop describes itself as an Australian and New Zealand specialty retailer of male and female grooming products. It aspires to be the market leader in ‘all things related to hair removal’. It sells items like electric shavers, clippers, trimmers, wet shave items, oral care, hair care, massage, air treatment and beauty categories.

At the end of the FY26 half-year period, it had 126 Shaver Shop stores across Australia and New Zealand, while also having online marketplaces. It sells a wide range of brands, with some exclusive products with suppliers.

Now that you know what it does, let’s take a look at why it’s so compelling.

Excellent ASX passive income stock credentials

The business has one of the highest dividend yields on the ASX.

Its last two declared half-year dividends come to 10.3 cents per share. At the time of writing, this represents a grossed-up dividend yield of 10.7%, including franking credits. That’s huge! It also looks like a ‘real’ yield to me.

Some businesses have very large dividend yields because the share price has dropped and the market is expecting a decrease of earnings (and the dividend).

Shaver Shop has paid a dividend each year since 2017. It increased its dividend every year in that time aside from FY24 when it maintained the dividend.

I think it’s very likely that the business can continue to maintain its dividend at this level and possibly grow it in the longer-term. In the FY26 half-year result it maintained its interim dividend at 4.8 cents share amid 1.5% growth of net profit to $12.2 million.

Its FY25 dividend payout ratio was 89.6% of net profit, which is fairly high but sustainable because it was under 100%. It kept some of the generated profit to improve the business.

Why I think this is a great time to invest

There are a few reasons why this looks like a great time to invest.

First, at the time of writing, the Shaver Shop share price has dropped 11% since the end of February 2026, which has had a big, positive effect on the dividend yield on offer from the ASX passive income stock.

Second, the business is looking to grow its earnings through store growth, expanding its own brand (Transform-U), unlocking more exclusive products and hopefully benefit from increased scale.

Third, it’s trading on a very low price/earnings (P/E) ratio. According to the forecast on CMC Markets, the business is projected to generate earnings per share (EPS) of 11.6 cents. That means it’s valued at 12x FY26 estimated earnings.

The post With a 10.7% yield, could this be the ASX’s best passive income stock? appeared first on The Motley Fool Australia.

More reading

• I’d buy 11,651 shares of this ASX stock to aim for $100 a month of passive income
• 2 ASX dividend shares with yields above 7%
• These ASX dividend shares pay 7% and could jump 25%

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 recommended Shaver Shop Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When I look at long-term investing, I focus on simplicity, scale, and staying invested.

That is why the Vanguard Diversified All Growth Index ETF (ASX: VDAL) stands out to me as a compelling option for a $10,000 investment.

A Vanguard ETF built entirely for growth

This Vanguard ETF is designed with a clear purpose.

It targets a 100% allocation to growth assets, which means the portfolio is fully invested in equities across global markets. This creates direct exposure to the parts of the market that have historically driven long-term returns.

For investors with a long time horizon, that focus can be powerful. It aligns the portfolio with the goal of capital growth and allows compounding to work over time.

Global diversification in one trade

One of the things I like most about the VDAL ETF is how much it covers in a single investment.

The ETF holds a mix of Vanguard funds that span Australian shares, international developed markets, emerging markets, and smaller companies. 

Its largest allocations include the Vanguard Australian Shares Index ETF (ASX: VAS) at around 36% and the Vanguard MSCI Index International Shares ETF (ASX: VGS) at roughly 27%, alongside meaningful exposure to hedged international equities and emerging markets.

That creates a portfolio that reflects the global economy.

For me, that kind of diversification is valuable. It spreads exposure across regions, sectors, and company sizes, which can support more consistent long-term outcomes.

Exposure to different layers of the market

The VDAL ETF is more than just broad market exposure.

It also includes allocations to emerging markets and international small companies, which add different growth drivers to the portfolio. These segments can behave differently to large developed market companies and can contribute to returns in different ways over time.

That layered exposure is what makes the portfolio feel complete.

It is capturing growth across multiple parts of the market rather than relying on a single theme.

A structure that runs itself

Another feature that stands out to me is how this Vanguard ETF is managed.

It maintains a strategic asset allocation across its underlying funds, and Vanguard handles the rebalancing. As markets move, the portfolio is adjusted to stay aligned with its long-term targets.

For me, that is a big advantage. It allows the investment to stay on track without requiring ongoing decisions, which can help keep the focus on the long term.

Low-cost access to a diversified portfolio

Cost plays a role in long-term returns, and Vanguard has built its reputation on keeping fees low.

The VDAL ETF provides access to a diversified, multi-asset portfolio through a single ETF structure and a management fee of 0.27% per annum.

That can make it a simple and cost efficient way to invest across global markets without needing to manage multiple holdings.

Over time, keeping costs low can help more of the returns stay with the investor.

Foolish takeaway

This Vanguard ETF offers a straightforward way to invest in global equity markets with a clear focus on growth.

It combines Australian shares, international equities, emerging markets, and smaller companies into a single portfolio, supported by automatic rebalancing and a low-cost structure.

For a $10,000 investment, I think it provides a clean and effective way to gain broad exposure and stay aligned with long-term growth.

The post Why I’d invest $10,000 in this Vanguard ETF appeared first on The Motley Fool Australia.

More reading

• Why this ASX ETF is one of the best buys for Australians
• 3 ASX shares for a winning retirement portfolio
• Why this ASX dividend share is a retiree’s dream
• The pros and cons of buying Qantas shares this month
• How many shares in this high-dividend toll road stock do you need for a $10,000 income stream?

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 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.

The ASX-listed exchange-traded fund (ETF) VanEck MSCI International Quality ETF (ASX: QUAL) is a top-quality investment for investors who are searching for long-term returns.

Plenty of Australians may be lacking exposure to the global share market. That’s a shame because there are a lot of great businesses out there listed beyond the ASX.

We don’t necessarily need to leave the ASX to make investments in those great businesses – ASX ETFs can give us that exposure.

However, we don’t necessarily need to own all (or most) of the international businesses. I’d rather just invest in the best ones.

The QUAL ETF has a very effective investment strategy to do that selective investing, which attracted me to it.

High-quality portfolio

The best reason to like this fund is the high-quality nature of the businesses and how the portfolio is put together.

There are three things businesses must have to be considered for this portfolio.

First, they must have a high return on equity (ROE). In other words, they make a high level of profit for the amount of shareholder money retained within the business. As shareholders, we want to see those businesses making a good level of profit, considering they’re keeping that money rather than paying it as a dividend to investors.

The businesses in the portfolio are generating some of the highest ROEs in the world.

Second, these businesses have a high level of earnings stability. It’s pleasing when the company’s profit doesn’t go backwards. But that also suggests that profit is nearly always rising, which is a great tailwind for long-term share price growth. 

Thirdly, the QUAL ETF businesses must have low financial leverage. A healthy balance sheet is a good thing for the company’s long-term growth plans and for navigating difficult economic periods.

There are more reasons to like this ASX ETF beyond the great businesses, but the fund has delivered an average annual return of 14.5% over the past decade, thanks to the quality of its holdings.

Strong diversification

The fund owns approximately 300 companies from different sectors and countries.

There’s no specific number of businesses that makes a portfolio diversified or not. I’d say 300 holdings provides ample diversification. Even 100 holdings would be more than enough, in my book.

The biggest positions in the portfolio are many of the strongest and most recognisable businesses in the world. These are names like Meta Platforms, Nvidia, Apple, Microsoft, Alphabet, ASML, Eli Lilly, and Visa.

It’s important to note this is not essentially a US tech fund – less than 30% of the ASX ETF is invested in IT shares.

On top of that, the portfolio has a position of at least 0.5% in a number of countries, providing strong geographic diversification. Those places with a noticeable allocation include the US, Switzerland, the UK, Japan, the Netherlands, Germany, Canada, Denmark, Sweden, and France.

This impressive ASX ETF has an annual management fee of 0.4%, which I view as attractive given the quality of the portfolio and the work that has gone into creating the fund’s global portfolio.

The post Why this ASX ETF is one of the best buys for Australians appeared first on The Motley Fool Australia.

More reading

• Stop ‘saving’, start investing! How to target a $1 million ASX share portfolio
• 5 excellent ASX ETFs to buy next week
• 5 ASX ETFs that could supercharge your portfolio
• Which ASX ETFs I’d buy for retirement investing
• How long does it take to become a millionaire with ASX shares?

Motley Fool contributor Tristan Harrison has positions in VanEck Msci International Quality ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ASML, Alphabet, Apple, Meta Platforms, Microsoft, Nvidia, and Visa and is short shares of Apple. The Motley Fool Australia has recommended ASML, Alphabet, Apple, Meta Platforms, Microsoft, Nvidia, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Building a retirement portfolio is about reliability, resilience, and the ability to generate income over time. The right mix of ASX shares can provide steady cash flow while still offering modest growth to keep up with inflation.

With that in mind, here are three ASX shares that could help form a winning retirement portfolio.

APA Group (ASX: APA)

The first ASX share to consider is APA Group.

It is a major player in Australia’s energy infrastructure sector, operating gas pipelines and related assets across the country.

What makes APA attractive for a retirement portfolio is the nature of its income. Much of its revenue is generated through long-term contracts, which can provide a high level of visibility and stability.

This supports consistent distributions, making it a popular choice among income-focused investors.

While its growth may not be rapid, the predictability of cash flow is a key strength. It also handily offers a forecast dividend yield near 6%.

Transurban Group (ASX: TCL)

Another ASX share that could be worth considering is Transurban Group.

It owns and operates toll roads in Australia and North America, providing essential infrastructure that is used daily. This includes CityLink and West Gate Tunnel in Melbourne and the Cross City Tunnel and the Eastern Distributor in Sydney.

Its business model is built around long-term concessions, with revenue linked to traffic volumes and, in many cases, inflation. This can create a growing income stream over time, which is particularly valuable for retirees.

As populations grow and cities expand, demand for toll road infrastructure is expected to remain strong.

Woolworths Group Ltd (ASX: WOW)

A third ASX share that could be a top addition to a retirement portfolio is Woolworths.

It is of course one of Australia’s leading supermarket operators, providing essential goods to millions of customers every week. In fact, the company estimates that it serves 24 million customers each week across its growing network of businesses.

This gives it a very defensive earnings profile. Regardless of economic conditions, people still need to buy groceries.

The company also has a strong market position and a track record of paying dividends, making it a reliable option for income-focused investors.

Over time, its modest growth combined with steady dividends could help support a stable retirement income.

The post 3 ASX shares for a winning retirement portfolio appeared first on The Motley Fool Australia.

More reading

• How to build a Warren Buffett-inspired ASX share portfolio
• The ASX dividend stocks I’d trust for long-term income
• Why I think ‘boring’ ASX shares could make you richer over time
• Are these ASX stocks hitting 52-week highs a buy, hold, or sell?
• The ASX shares I’d buy for passive income in April and beyond

Motley Fool contributor James Mickleboro has positions in Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Apa Group, Transurban Group, and Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX dividend share Charter Hall Long WALE REIT (ASX: CLW) is a great one to consider for most of the retiree community (and other investors wanting passive income).

I think the real estate investment trust (REIT) sector is a good one to consider amid rising interest rates because of the better value and distribution yield on offer.

Rather than having to go and individually buy all of these commercial properties, an REIT enables investors to buy a small slice of a property portfolio in a single investment.

Diversified portfolio

The REIT is invested in more than 500 properties across several key defensive industries that are more resilient to economic shocks than other areas.

It’s invested in sectors like government-tenanted properties (such as the Australian Border Force, Geosciences Australia and Department of Defence), pubs and hotels, grocery and distribution, data centres, telecommunication exchanges, service stations, food manufacturing, waste and recycling management, Bunnings properties and so on.

This property portfolio is spread across Australia, including NSW, Victoria, Queensland, WA, ACT, South Australia, Northern Territory and Tasmania. It also has a small exposure to New Zealand.

The one thing that all of these properties have in common is that the Charter Hall Long WALE REIT aims to have them signed on for long-term leases.

The REIT’s WALE is currently around nine years, which means a lot of rental income is already contracted from high-quality tenants like the Australian government, Endeavour Group Ltd (ASX: EDV), Telstra Group Ltd (ASX: TLS), BP, Coles Group Ltd (ASX: COL) and Metcash Ltd (ASX: MTS).

The ASX dividend share’s yield

I’m sure many retirees and passive income investors want to know about the distribution yield on offer, so let’s look at that.

The business is expecting to grow its FY26 annual distribution by 2% to 25.5 cents per unit, which translates into a forward distribution yield of 7.3%.

That yield is based on an expected distribution payout ratio of 100% of its operating rental earnings.

Why is the yield so high? It’s because the business is trading at 26% discount to its net tangible assets (NTA) at 31 December 2025.

It’s delivering underlying growth

It’s important to remember not to invest in something just because of the yield. I believe there should be underlying growth, otherwise there’s a high risk of the valuation (and passive income payment) going backwards over the longer-term.

Some of the ASX dividend share’s property portfolio has fixed annual rental increases, while the rest has increases linked to inflation. This helped the FY26 half-year net property income (NPI) increase by 3% on a like-for-like. That’s not a lot of growth, but it’s positive and makes me comfortable to invest in a high-yielding business like this.

The post Why this ASX dividend share is a retiree’s dream appeared first on The Motley Fool Australia.

More reading

• 2 ASX blue-chip shares offering big dividend yields
• Looking for long-term passive income? Try one of these ASX shares
• Is it time to load up on these high-yielding ASX dividend shares?
• 20 ASX shares with ex-dividend dates next week
• 2 ASX dividend shares with yields above 7%

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 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.

The Qantas Airways Ltd (ASX: QAN) share price has seen plenty of pain since February, as the below chart shows. Is this time to be greedy or fearful?

The impacts of the Middle East conflict have been wide-reaching, with fuel costs being the most obvious effect.

Qantas is a major fuel user, and it’s understandable why the market is feeling cautious on the airline. Let’s get into the positives and negatives I’m seeing.

Negatives

Let’s get the bad news out of the way first.

It’s hard to say how long the events in the Middle East will affect fuel costs. Even with a complete truce, it could still take some time for fuel access and availability to return to ‘normal’, whatever the new normal looks like.

There’s also a question in my mind of how travel demand will hold up during this period, which is a key element of keeping Qantas planes (fairly) full at the prices it’s charging.

The uncertainty appears to have led the leadership to at least delay the $150 million share buyback, which means a delay to shareholders receiving that benefit.

The final negative I’ll point out is that inflation could become more widespread than just fuel, which could increase the airline’s other costs.

Positives

For investors considering an investment in Qantas, the value is materially more attractive. At the time of writing, it’s 8% cheaper than it was at the end of February 2026. It’s not as cheap as it was in March, but that’s still a sizeable discount.

I’d rather invest in Qantas shares when they’re cheaper rather than when the share price is higher.

Another positive is that the business said it has hedged approximately 90% of its FY26 second-half exposure to crude oil, though it is still exposed to movements in the jet refining margin.

Qantas said that it’s still seeing strong demand for international travel to Europe, so it has redeployed capacity from the US and its domestic network to increase flights to Paris and Rome.

It has also reduced its domestic capacity in the fourth quarter of FY26 by around 5 percentage points.

The airline is also expecting its domestic and international revenue per available seat kilometre (RASK) to grow by approximately 5% in the second half of FY26, which should help offset the cost growth, assuming travel demand remains strong.

According to the projection on CMC Markets, the business is currently forecast to generate earnings per share (EPS) of 93 cents, which puts the Qantas share price at around 10x FY26’s estimated earnings.

I do think this is a good time to invest, the valuation is lower and travel demand is strong, but if it fell further, I’d say it’s an even better buy.

The post The pros and cons of buying Qantas shares this month appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy right now
• Why a $700 million move into Qantas shares is turning heads today
• Top brokers name 3 ASX shares to buy today
• Are Qantas shares still a buy after its latest market update?
• Why Clarity, Qantas, Universal Store, and Westpac shares are falling today

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.

For some investors, a solid income stream, as opposed to a focus on capital returns, is the holy grail.

One stock that is currently paying a very solid trailing dividend is toll roads operator Atlas Arteria Ltd (ASX: ALX), which, according to ASX data, is now paying a dividend yield of 9.36%.

It’s worth noting that the Atlas Arteria dividend is unfranked, which might make it less attractive for some investors.

Steady income streams

So what does the company do?

Atlas Arteria holds stakes in toll road businesses across France, Germany, and the US.

To be more specific, in the company’s own words:

Today the Atlas Arteria Group consists of toll road businesses in France, Germany and the United States. In France, we currently own a 30.8% interest in the 2,424km motorway network located in the country’s east, comprising APRR, AREA, A79 and ADELAC. In the US, we own a 66.67% interest in the Chicago Skyway, a 12.5km toll road in Chicago and have 100% of the economic interest in the Dulles Greenway, a 22km toll road in the Commonwealth of Virginia. In Germany, we own 100% of the Warnow Tunnel in the north-east city of Rostock.

In February, the company announced a net profit of $181.8 million, down from $300.2 million for the previous year, on revenue of $2.01 billion.

Chief Executive Hugh Weghby said regarding the result:

2025 was another positive year for Atlas Arteria. We delivered strong revenue growth and steady traffic performance. We continued to build and optimise our businesses to improve safety and customer experience. This performance supports a 40 cps distribution for our investors for 2025, in line with guidance. We’re focused on building a resilient portfolio for the long term. That starts with getting the most out of the businesses we own – through strong performance and by pursuing value accretive growth opportunities, including preparing for upcoming French concession retenders. We’re also actively looking at new opportunities across OECD markets where we see strong fundamentals and the potential to deliver attractive returns for securityholders.

Assurance on dividends

Importantly for investors, the company has signalled its intention to keep the dividend steady at 40 cents per share annually, “supported by growing free cash flow”.

So, how many Atlas Arteria shares do you need to generate $10,000 per year?

Thankfully, the maths is quite simple – you need 25,000 shares multiplied by the 40 cent dividend.

This comes to a value of $106,750 at the share price of $4.27 at the time of writing, which is not too far off the 12-month low.

Atlas Arteria is valued at $6.19 billion.

The post How many shares in this high-dividend toll road stock do you need for a $10,000 income stream? appeared first on The Motley Fool Australia.

More reading

• This ASX dividend stock is now paying out more than 9%
• 5 things to watch on the ASX 200 on Thursday
• 6 ASX shares hitting 52-week lows amid today’s market rally
• Is it time to load up on these high-yielding ASX dividend shares?
• 3 ASX dividend shares yielding 9% (or more)

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

TechnologyOne Ltd (ASX: TNE) shares have been strong performers over the past month, rebounding strongly after being caught up in the artificial intelligence (AI)-induced tech selloff.

Unfortunately, the team at Bell Potter thinks that this leaves the ASX 200 tech stock fairly valued now and has downgraded it.

What is the broker saying?

The broker highlights that TechnologyOne’s shares now trade at a significant premium to WiseTech Global Ltd (ASX: WTC), Pro Medicus Ltd (ASX: PME), and Life360 Inc. (ASX: 360). It explains:

We downgrade our recommendation on Technology One from BUY to HOLD given the rally in the share price to above our target price. We believe the stock now looks fairly valued on FY26 and FY27 EV/EBITDA multiples of c.32x and 28x which [we] note are the highest in our coverage of S&P/ASX 100 technology stocks and well above that of WiseTech Global on c.22x and 18x.

We acknowledge that Technology One is probably the best placed amongst our coverage of technology stocks to withstand AI disruption given its large proprietary data assets and mostly government and higher education customer base. The company is also embedding agentic AI across its product suite which will both improve the customer experience and further strengthen its position against disruption. But the recent outperformance of the stock relative to others in the sector like WiseTech, Pro Medicus and Life360 now makes it look relatively expensive and we see better value elsewhere.

Downgraded to hold

According to the note, the broker has downgraded the ASX 200 tech stock to a hold rating with an improved price target of $31.00 (from $29.00).

This is largely in line with the current TechnologyOne share price of $30.83.

Commenting on the company, Bell Potter said:

With the recent rebound in technology stocks we have increased the multiples we apply in the PE ratio and EV/EBITDA valuations from 55x and 30x to 60x and 32.5x. and also modestly reduced the WACC we apply in the DCF from 8.4% to 8.3%. The net result is a 7% increase in our target price to $31.00 which is only a modest premium to the share price so is consistent with the downgrade to a HOLD recommendation.

We note there is perhaps a lack of catalysts for the stock with the company already – and unusually – providing full year guidance at the AGM in February (this is usually provided at the H1 result in May). There is also a greater-than-usual earnings skew to H2 this year due to higher investment in H1 so we do not see much if any potential of an upgrade to the guidance at the H1 result.

The post Which ASX 200 tech stock has Bell Potter just downgraded? appeared first on The Motley Fool Australia.

More reading

• The tech rally is back: here are 5 ASX shares leading the charge
• 3 ASX 200 stocks leaping higher in this week’s slumping market
• 2 high-quality ASX stocks to buy and hold long term
• WiseTech shares rocket 11% higher today: Buy, sell or hold?
• Is the ASX 200 tech wreck over amid a 6% rise in shares today?

Motley Fool contributor James Mickleboro has positions in Life360, Pro Medicus, Technology One, and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Technology One, and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Life360 and WiseTech Global. The Motley Fool Australia has recommended Pro Medicus and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

One of the best things that Australians can do for their finances is to spend less than they earn, also known as saving. That’s key to improving our net worth. But, for those aspiring to build $1 million of wealth, simply saving cash in a bank account isn’t likely to be as effective as investing in ASX shares.

I do think everyone should have some cash in the bank. There’s power in having an emergency fund. Saving for a house deposit is also a great way to use a savings account.

In terms of just building wealth, cash is not very powerful for compounding.

At the moment, savers may be able to get a savings product that offers a 5% interest rate. That’s quite high compared to most of the last decade.

Let’s assume someone can save $1,500 per month. If that money earned a 5% interest rate it would take around 27 years to reach $1 million.

Investing in ASX shares makes a lot more sense to me.

The power of investing in ASX shares over just saving

One of the most popular ways to invest in ASX shares is with the Vanguard Australian Shares Index ETF (ASX: VAS), an exchange-traded fund (ETF) that tracks the S&P/ASX 300 Index (ASX: XKO) – that’s 300 of the largest businesses on the ASX.

Over the decade to 31 March 2026, the VAS ETF has returned an average of 9.35% per year. That’s a solid return and close to double what return savings accounts are offering right now.

It’s important to remember that interest income on offer doesn’t include the negative of tax while the VAS ETF returns don’t include tax or the positive of franking credits as part of the distribution income that is sent to investors. Plus, distributions from an ETF can benefit from capital gains tax discounts (which interest income doesn’t).

So, it’s hard to exactly compare apples to apples. But, I’ll use the return quoted by Vanguard.

If someone invested $1,500 per month and it returned 9.35% per year, that would turn into $1 million in less than 20 years!

In other words, that’s shaving around seven years off the time that it takes to get to a $1 million net worth.  

But the VAS ETF is not the only way to invest in ASX shares, of course.

Plenty of content on this site is about finding ASX growth shares with significant potential to deliver returns.

There are also international-focused ASX ETFs that could provide both pleasing diversification and good returns such as Vanguard MSCI Index International Shares ETF (ASX: VGS) and VanEck MSCI International Quality ETF (ASX: QUAL) which have both returned an average of more than 13% in the past decade. That level of return – which is not guaranteed – would turn $1,500 per month into $1 million in less than 17 years!

The post Stop ‘saving’, start investing! How to target a $1 million ASX share portfolio appeared first on The Motley Fool Australia.

More reading

• 5 excellent ASX ETFs to buy next week
• 3 reasons why the Vanguard MSCI Index International Shares ETF is a great buy for wealth building
• The biggest ASX ETFs revealed – are they still buys?
• 5 ASX ETFs that could supercharge your portfolio
• 3 ASX ETFs to buy and hold for the next decade

Motley Fool contributor Tristan Harrison has positions in VanEck Msci International Quality ETF. 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.

If you are planning to invest this month, ASX exchange traded funds (ETFs) can be a great place to start.

They offer instant diversification, exposure to global markets, and a simple way to build a portfolio without needing to pick individual stocks.

The key is choosing funds that give you a mix of growth, quality, and long-term opportunity.

Here are five excellent ASX ETFs to consider next week.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The first ASX ETF that could be a top option is the Vanguard MSCI Index International Shares ETF.

This ETF provides broad exposure to developed markets around the world, including the United States, Europe, and parts of Asia.

Its holdings include global giants such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and NVIDIA (NASDAQ: NVDA).

What makes the Vanguard MSCI Index International Shares ETF appealing is its simplicity. It allows investors to access global growth through a single investment, potentially making it an ideal core holding.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

Another ASX ETF that could be worth considering is the hugely popular BetaShares Nasdaq 100 ETF.

It focuses on the Nasdaq 100, which is heavily weighted towards technology and innovation-driven companies.

Top holdings include Amazon (NASDAQ: AMZN), Meta Platforms (NASDAQ: META), and Alphabet (NASDAQ: GOOGL).

This fund provides more concentrated exposure to high-growth sectors, which could help drive strong portfolio returns over time.

VanEck MSCI International Quality ETF (ASX: QUAL)

A third ASX ETF that could be worth considering is the VanEck MSCI International Quality ETF.

It focuses on high-quality stocks with strong earnings, solid balance sheets, and lasting competitive advantages.

Its holdings include Microsoft, Visa (NYSE: V), and Johnson & Johnson (NYSE: JNJ).

This quality tilt can help provide resilience during periods of market volatility. It was recently recommended by analysts at VanEck.

BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)

A fourth ASX ETF to consider is the BetaShares S&P/ASX Australian Technology ETF.

It offers exposure to Australia’s leading technology companies. This includes Xero Ltd (ASX: XRO), WiseTech Global Ltd (ASX: WTC), and TechnologyOne Ltd (ASX: TNE).

It provides a way to gain access to local innovation and growth businesses that are expanding globally. And with ASX tech shares down heavily from their highs, now could be an opportune time to snap up the fund.

It was recently recommended by analysts at BetaShares.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Finally, the Vanguard Australian Shares High Yield ETF could be a top addition if you’re looking for a source of income.

It focuses on high-dividend-paying Australian shares, such as major banks, mining companies, and other established businesses with reliable cash flows.

This could make it a useful complement to growth-focused ETFs, adding stability to a portfolio.

The post 5 excellent ASX ETFs to buy next week appeared first on The Motley Fool Australia.

More reading

• Why I’d buy and hold NDQ and these ASX ETFs for 10 years
• 3 reasons why the Vanguard MSCI Index International Shares ETF is a great buy for wealth building
• The biggest ASX ETFs revealed – are they still buys?
• ASX ETFs to target if you expect struggling sectors to rebound
• How to build a $100,000 ASX share portfolio

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF, Technology One, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, BetaShares Nasdaq 100 ETF, Meta Platforms, Microsoft, Nvidia, Technology One, Visa, WiseTech Global, and Xero and is short shares of Apple and BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF, WiseTech Global, and Xero. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Technology One, Vanguard Australian Shares High Yield ETF, Vanguard Msci Index International Shares ETF, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.