Tag: Stock pick

It’s common knowledge that geographic diversification in your portfolio is critical. But one common misconception is that achieving it means investing on overseas exchanges. And historically, there was truth to that. Geographic location was a good indicator of a stock’s primary market exposure. But today, using domicile alone can be deceiving.

Here’s why earnings diversity is critical – and how you can achieve it without leaving the ASX.

It’s likely your risks are already concentrated in Australia

Most Australian investors instinctively look to the ASX for their first and often biggest investments. It feels familiar, you’re dealing in Australian dollars, you may avoid some additional tax filing requirements, and your money stays in Australia’s highly regulated environment. And that’s before we even get into the benefits of Australia’s franking credits system. 

But Australia is a small pond. It makes up less than 2% of the global equity market and only 0.33% of the world’s population, so you risk putting all your eggs in one very small basket. 

Additionally, it’s likely that you’re heavily exposed to the Australian economy before you start your portfolio. Your job, your salary, your house and most of your large assets probably sit here. And for most Australians, superannuation is tilted toward domestic shares. It means you’re already flying in one weather system, and if a storm hits the Australian economy, you’re exposed to it on many fronts.

The good news is that you can achieve global exposure without leaving the ASX.

Follow the money on the ASX

Where a company is located is largely irrelevant today. In fact, you could build a portfolio across the ASX, NASDAQ, Nikkei and FTSE, assuming you have achieved diversification, and still be disproportionately invested in one region because that’s where your investments make most of their revenue.

Instead of looking for overseas-based companies to achieve this, you can follow the money and stay on the ASX, by considering:

• Where does the company earn most of its income?
• Where are the majority of its customers based?
• What currency does it transact in?

It’s these factors that determine its exposure to economic, social, regulatory and geopolitical – and, therefore, your geographic diversification.

What ASX shares can I invest in to gain global exposure?

You can build geographic diversity on the ASX with some solid performers. Here are three that are worth a look to get you started:

• Amcor PLC (ASX: AMC) The packaging giant makes most of its money in the US (50%), followed by Western Europe (28%). In fact, Australia and New Zealand combined account for only 1% of its revenue.
• Codan Ltd (ASX: CDA):  Codan makes most of its communications technology and metal detecting equipment sales across North America (40%), Europe and the Middle East (29%) and Africa (18%).
• Brambles Ltd (ASX: BXB):  This large supply chain logistics player brings most of its sales revenue from the Americas (55%) and Europe and the Middle East (37%).

Foolish bottom line

When your income, assets and super are already tied to Australia, doubling down by investing purely in Australian‑centric companies can leave you over-exposed to one economic climate. By focusing on earnings geography rather than company location, you open your portfolio to the other 98% of global market opportunity, all without leaving the relative comfort of the ASX.

The post Diversification: Why earnings geography matters more than company location appeared first on The Motley Fool Australia.

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• In Wilsons Advisory’s ideal portfolio, what are the 10 top stock picks?
• 2 ASX growth shares set to soar higher in 2026
• Top brokers name 3 ASX shares to buy today
• 3 ASX shares that look cheap according to Morgans
• Why I’d forget NAB shares and buy these top Aussie stocks

Motley Fool contributor Melissa Maddison 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 Amcor Plc. 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) was on form in February and managed to carve out a gain of 3.7%.

While that was strong, some ASX 200 shares delivered far more for their lucky shareholders.

Here’s why these shares jumped more than 15% last month:

BHP Group Ltd (ASX: BHP)

The BHP share price surged 15.5% in February. Investors were buying the mining giant’s shares following the release of its half-year results. BHP reported an 11% increase in revenue to US$27.9 billion and a 25% lift in underlying EBITDA to US$15.46 billion. A key driver of this growth was its copper operations, which reported record EBITDA of US$8 billion. This meant that copper contributed the majority of earnings for the first time in its history. Another positive was news that BHP has entered into a long-term streaming agreement with Wheaton Precious Metals Corp. (NYSE: WPM). The Big Australian will receive an upfront payment of US$4.3 billion. In exchange, it will deliver Wheaton a share of silver produced at the Antamina mine in Peru. This agreement represents the most valuable streaming transaction to date based on the upfront consideration.

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price raced 17% higher during the month. Australia’s largest bank impressed the market with its half-year results in February. For the six months, CBA reported a 6% increase in cash net profit to $5,445 million and lifted its fully franked interim dividend by 4% to $2.35 per share. CBA’s CEO, Matt Comyn, said: “Economic growth strengthened during the half, driven by increases in consumer demand and rising investment in AI and energy infrastructure.”

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas Rare Earths share price was on fire and rocketed 27% in February. This followed the release of the rare earths producer’s half-year results. Lynas posted a 63% increase in revenue to $413.7 million and net profit after tax of $80.2 million. The latter compares to a profit of just $5.9 million a year earlier. The company’s CEO and managing director, Amanda Lacaze, said: “The December half of FY2026 was an exciting one for Lynas. We completed commissioning for the Mt Weld expansion project, delivered the first half year of Heavy Rare Earth production at Lynas Malaysia, launched the Towards 2030 growth strategy and successfully completed an equity raising to support our growth agenda.”

PLS Group Ltd (ASX: PLS)

The PLS share price rose 21% during the month. This was driven by the release of a strong half-year result from the lithium miner. PLS’ revenue jumped 47% to $624 million and its underlying EBITDA surged 241% to $253 million. This was driven by a combination of higher production volumes, lower costs, and a rebound in lithium prices. PLS’ managing director and CEO, Dale Henderson, said: “PLS delivered a strong first half, generating Underlying EBITDA of $253 million at a 41% margin reinforcing our low cost position and ability to generate positive EBITDA through the cycle. The result was driven by higher realised pricing, reliable operating performance and continued cost discipline, with unit operating costs declining 8% to $563 per tonne (FOB).”

The post These ASX 200 shares jumped 15% or more in February appeared first on The Motley Fool Australia.

More reading

• The one question I always ask before buying an ASX share
• Here are the top 10 ASX 200 shares today
• Why the Lynas share price could crash almost 40%
• Game on! BHP retakes biggest ASX stock crown as CBA shares sink
• BHP share price has 20% more growth to come: expert

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 recommended Lynas Rare Earths Ltd. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Investing in (ASX) shares for the long-term is a powerful tool because of how compounding and profit growth can lead to great results for shareholders.

If an investment goes up by an average of 10% per year – roughly the long-term return of the global share market – it will double in approximately eight years. If something goes up in value by 15% per year it’ll double in just five years.

No investment is guaranteed to go up by that much, but certain areas of the share market look destined to outperform the S&P/ASX 200 Index (ASX: XJO) over the long-term because of their earnings growth, global ambitions and profitability.

I’m going to talk about two exchange-traded funds (ETFs) that I think are very appealing. I’m calling them ASX shares because they provide access to shares and trade on the ASX.

Vanguard MSCI index International Shares ETF (ASX: VGS)

There are a number of high-quality ASX shares that we can buy, but the ASX only makes up approximately 2% of the global share market. I think it’s a good idea to be invested in good businesses from the other 98%.

The VGS ETF provides low-cost exposure to many of the world’s largest companies that are listed in ‘major’ developed countries.

We’re talking about markets like the US, Japan, the UK, Canada, Germany, France, Switzerland, the Netherlands, Sweden, Spain, Italy, Hong Kong, Denmark and Singapore.

As you can see, it’s extremely diversified geographically and that helps reduce risk and accesses profit generation from across the world.

Secondly, VGS ETF owns a significant number of businesses. At the end of 31 January 2026, it had 1,286 positions, which means it’s very diversified.

But, it’s not appealing because it owns lots of businesses from various countries. To me, that’s just a useful bonus.

These are impressive businesses within the portfolio that have delivered good returns – the VGS ETF has returned an average of 15.1% per year. While past performance is not a guarantee of future performance, the future looks bright.

It’s invested in companies like Nvidia, Apple, Alphabet, Microsoft, Amazon, Meta Platforms, Costco and Intuitive Surgical – these businesses have the biggest influence on the VGS ETF’s return because they have the largest allocations. You don’t find this sort of growth potential with blue-chip ASX shares. The US giants are investing in new services like AI and other technology that could drive earnings higher.

Vanguard reported that the portfolio had an earnings growth rate of 21.2%, which is a strong tailwind for future share price growth. Additionally, it had a return on equity (ROE) of 19.8%, showing its quality and implies the level of return it can generate on future retained profits that are invested in the business.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

This is another ETF that doesn’t invest in ASX shares. Instead, it invests in high-quality US shares that have strong economic moats.

An economic moat is another word for competitive advantages, which is a key element that keeps a company ahead of challengers. A moat could be a cost advantage, brand power, intellectual property, network effects and so on. The stronger the moat, the harder it is for a business to hurt the market share/profit margin.

The MOAT ETF invests in businesses that Morningstar analysts believe the economic moat will endure (more likely than not) for the next 20 years. With that strategy, it gives me a lot of confidence to invest in the fund for the long-term.

In addition to that, the MOAT ETF only invests in businesses when analysts think that the business is trading at good value.

The effectiveness of that strategy has enabled the MOAT ETF to deliver an average return per year of 15.7% over the past decade. I plan to buy more of this ETF in the coming years, though it’s important to note that past performance is not a guarantee of future returns.

The post 2 incredible ASX share investments I’d buy to build long-term wealth appeared first on The Motley Fool Australia.

More reading

• How to make $25,000 of passive income a year
• The lazy investor’s guide to ASX ETFs
• If I had to build an ASX share portfolio from scratch today, here’s how I’d do it
• How I’d Invest $25,000 in Vanguard ETFs today
• 5 amazing ASX ETFs to buy and hold for 20 years

Motley Fool contributor Tristan Harrison has positions in VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Costco Wholesale, Intuitive Surgical, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2028 $520 calls on Intuitive Surgical and short January 2028 $530 calls on Intuitive Surgical. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, 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.

If your goal is to build wealth steadily over decades without constantly adjusting your portfolio, the iShares S&P 500 ETF (ASX: IVV) could be close to the ideal buy and hold investment.

Let’s dig into the reasons why this could be the case.

The iShares S&P 500 ETF is home to the world’s best

As its name implies, the iShares S&P 500 ETF is an exchange traded fund (ETF) that tracks the S&P 500 index, which includes 500 of the largest listed companies in the United States.

That means exposure to global leaders such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Berkshire Hathaway (NYSE: BRK.B). These businesses dominate industries ranging from technology to healthcare to consumer goods.

Rather than trying to identify which single company will win, this ETF gives you broad exposure to the entire ecosystem of American corporate strength.

Over time, the S&P 500 index has proven to be one of the most reliable engines of wealth creation in modern markets.

Built-in diversification

One of the biggest risks for individual investors is concentration.

Buying a single stock can produce strong returns, but it also exposes you to company-specific risks. The iShares S&P 500 ETF spreads your investment across hundreds of stocks and multiple sectors.

Technology, healthcare, financials, industrials, and consumer brands all sit within the portfolio. If one sector struggles, others can offset the weakness.

That diversification makes it easier to stay invested during volatile periods.

Long-term compounding power

The S&P 500 has historically delivered average annual returns close to 10% over the long run, though this is never guaranteed.

At that rate, $10,000 invested and left untouched for 20 years could grow to roughly $67,000. Stretch that to 30 years and the power of compounding becomes even more dramatic.

This fund does not try to beat the market. It simply aims to track it. For many investors, matching long-term market returns is more than enough.

Simplicity that works

One of the most powerful aspects of this ASX ETF is its simplicity.

There are no active managers making subjective calls. The fund passively tracks an index that has stood the test of time.

That simplicity reduces decision fatigue and helps investors avoid the temptation to constantly trade.

Foolish takeaway

The iShares S&P 500 ETF offers exposure to leading global companies, built-in diversification, and a long track record of strong returns.

For investors who want a straightforward buy and hold strategy, it could be a simple way to back the long-term growth of the world’s largest economy.

The post Why the iShares S&P 500 ETF could be a perfect buy and hold investment appeared first on The Motley Fool Australia.

More reading

• How to make $25,000 of passive income a year
• 3 excellent ASX ETFs to buy for an SMSF in March
• 5 amazing ASX ETFs to buy and hold for 20 years
• How to build serious wealth with ASX shares
• 3 ASX ETFs for beginner investors to buy in March

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 positions in and has recommended Apple, Berkshire Hathaway, Microsoft, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Apple, Berkshire Hathaway, Microsoft, and iShares S&P 500 ETF. 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 space is a great place to find investments offering passive income.

I think the stock market is the best hunting zone to find names that can pay a good dividend yield, deliver capital growth and organically raise the passive income. Other non-share investments just don’t seem as appealing on that side of things.

If I’m investing for passive income, which I regularly do, I want to focus on investments that can give me a high level of confidence that they’re going increase the payout annually for the foreseeable future.

I really like the three ASX dividend shares below for dividends and potential capital growth. Let’s dive into why I’d happily spread $10,000 across them.

MFF Capital Investments Ltd (ASX: MFF)

MFF Capital is mostly a listed investment company (LIC), but also has a new funds management segment called Montaka.

The main way MFF makes profit for shareholders is by holding a portfolio of high-quality global shares that are expected to compound earnings in the coming years. By just investing in the best businesses in the world, it has produced solid returns which have helped it fund growing dividends to MFF shareholders.

It also recently acquired Montaka to give MFF access to more investment ideas and research, while also unlocking another earnings growth avenue. A rise in the fund size of Montaka Global Fund – Active ETF (ASX: MOGL) and Montaka Global Extension Fund – Complex ETF (ASX: MKAX) helps generate management fee earnings for MFF.

MFF has guided it’s going to pay an annual dividend per share of 21 cents in FY26, which translates into a grossed-up dividend yield of 6.1%, including franking credits, at the time of writing. That means the ASX dividend share is expecting to increase its FY26 dividend by more than 20% year-over-year.

WCM Global Growth Ltd (ASX: WQG)

WCM Global is another LIC with an impressive record of portfolio performance and dividend growth.

The investment team at WCM – based in California’s Laguna Beach – aim to look for businesses with an expanding economic moat/improving competitive advantages. The LIC also wants to find businesses that have a corporate culture that fosters the improvement of that economic moat.

Its portfolio mix of US shares and international shares provides investors with diversified holdings, along with compelling potential to deliver returns.

By investing in those high-quality names, WCM Global Growth has managed to outperform the global share market return, whilst paying a rising dividend over the last several years.

The ASX dividend share expects to pay an annual dividend in FY26 that equates to a grossed-up dividend yield of 6.7%, including franking credits, at the time of writing.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

I couldn’t write this article without mentioning the leader of dividend growth on the ASX, Soul Patts.

It’s an investment conglomerate that has already been listed on the ASX for more than 120 years and it hasn’t missed paying a dividend in all of that time. Additionally, the business has increased its regular annual payout every year since 1998, which is an incredible record for an ASX dividend share.

The business has built an impressive and largely uncorrelated portfolio across a variety of defensive sectors that can provide cash flow for the business in most economic conditions, giving resilient funding for the growing dividend. The ASX dividend share regularly invests to expand its portfolio and boost its long-term growth potential. I’m forecasting that Soul Patts could pay an annual dividend per share in FY26 that at least translates into a grossed-up dividend of 4.2% (if not more), including franking credits, at the time of writing.

The post Where I’d invest $10,000 into ASX dividend shares right now appeared first on The Motley Fool Australia.

More reading

• Top ASX shares to buy with $10,000 in 2026
• Why I just bought this 6%-yielding ASX dividend stock and plan to buy even more
• 1 Australian stock I’d buy on any dip
• I’d buy 20,409 shares of this ASX stock to aim for $2,000 of annual passive income
• Want to build a second income? I’d buy these ASX shares today

Motley Fool contributor Tristan Harrison has positions in Mff Capital Investments and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Mff Capital Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

$25,000 a year is just over $480 a week. For some, that could cover rent. For others, it might fund travel, school fees, or the freedom to reduce working hours.

But how could I build an asset base that can sustainably produce it?

Here’s a quick guide that could help on this quest.

Know the passive income target

If I aim for a 5% portfolio dividend yield, generating $25,000 a year would require roughly $500,000 invested.

That might sound intimidating. But it is possible in time.

I just need to start by building the capital to produce this passive income.

Focus on building capital

Many investors make the mistake of chasing high dividend yields too early.

However, in the early years, growth is often more powerful than income. Companies that reinvest profits at high returns can compound capital faster than traditional dividend payers.

For example, businesses such as ResMed Inc. (ASX: RMD), REA Group Ltd (ASX: REA), or Pro Medicus Ltd (ASX: PME) may not offer meaningful dividend yields today, but their ability to grow earnings can expand my portfolio value significantly over time.

Broad ETFs such as the iShares S&P 500 ETF (ASX: IVV) or the VanEck Morningstar Wide Moat ETF (ASX: MOAT) can also help accelerate capital growth while keeping diversification intact.

The goal in this phase is not income. It is scale.

Time is my best friend

If I were to invest $1,500 a month and achieve an average 10% annual return over the long term (not guaranteed but historically achievable), my portfolio would grow surprisingly fast.

After 10 years, I would have around $300,000, and after 15 years, I would have approximately $600,000.

As you can see, a snowball effect becomes visible after patience has been exercised.

Transition to income producers

Once my portfolio approaches the $500,000 mark, I can gradually rotate toward income-focused assets.

At present, that might include shares such as APA Group (ASX: APA), Transurban Group (ASX: TCL), or Telstra Group Ltd (ASX: TLS). Income-focused ETFs like Vanguard Australian Shares High Yield ETF (ASX: VHY) could also play a role.

At an average 5% dividend yield across the portfolio, a $500,000 portfolio generates $25,000 per year. Increase the yield slightly or allow dividends to grow over time, and the income can expand further.

Foolish takeaway

Passive income is rarely built in a single leap. It is built in stages.

First, grow the capital. Then, convert that capital into reliable income streams. It may take time, but it is certainly worth it.

The post How to make $25,000 of passive income a year appeared first on The Motley Fool Australia.

More reading

• 3 Australian growth stocks to buy in 2026
• Why Nvidia’s insights suggest ASX tech shares are undervalued
• Here are the top 10 ASX 200 shares today
• 3 excellent ASX ETFs to buy for an SMSF in March
• ASX 200 at a record high? Here’s where I still see value

Motley Fool contributor James Mickleboro has positions in Pro Medicus, REA Group, ResMed, and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed, Transurban Group, and iShares S&P 500 ETF. 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 Apa Group, ResMed, Telstra Group, and Transurban Group. The Motley Fool Australia has recommended Pro Medicus, VanEck Morningstar Wide Moat ETF, Vanguard Australian Shares High Yield ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

In my view, Siteminder Ltd (ASX: SDR) is one of Australia’s top shares. It has excellent growth potential and every result has shown how effective the business is at capitalising on its opportunity.

Siteminder provides software to help hotels run their operations, analyse their performance and maximise their bookings and revenue.

The company reported its half-year result earlier this week and it included everything I wanted to see. Let’s run through some factors why I think it’s a fantastic business to buy today following a large decline during the past year, as shown on the chart below shows.

Great revenue potential

In the FY26 half-year result, total revenue increased by 25.5% to $131.1 million.

Perhaps more excitingly, annualised recurring revenue (ARR) grew 29.7% to $280.3 million, with subscription ARR climbing 18.4% to $168.6 million and transaction ARR growing 51.3% to $111.7 million. Net property additions came to 2,900 during the half, bringing the total to 53,000 – it continues to pursue larger hotel properties.

Siteminder reported that its average revenue per user (ARPU) increased 11.3% to $435 reflect smart platform initiatives and rising product adoption.

Its initiatives with the smart platform mean the business has the potential to extract more revenue from each hotel client, while unlocking more revenue for them.

‘Channels Plus’ aims to streamline distribution expansion and it was launched in FY25. In less than two years, 7,000 hoteliers and 47 distribution partners have signed up.

‘Dynamic Revenue Plus’ aims to help hoteliers make data-driven commercial decisions through proprietary analytics and artificial intelligence. More than 20,000 rooms are now under management. These efforts “represent a significant step forward” in the company’s ability to deliver “high-margin, AI-driven value” to subscribers.

The ‘Smart Distribution Program’ is designed to optimise the “synergies” between Siteminder’s hoteliers and global distribution partners.

Regarding AI agents and booking, Siteminder said:

As AI adoption accelerates across the travel ecosystem – including tools embedded in the Smart Platform – pricing sophistication, update frequency, and distribution intensity are increasing. In this environment, the cost of latency or error rises materially, reinforcing the need for deterministic, high-reliability execution infrastructure.

The emergence of AI agents further amplifies this dynamic: while they may influence discovery and booking decisions, they rely on trusted systems to execute transactions, synchronise pricing and inventory, and fulfil reservations across fragmented hotel and distribution platforms. This positions SiteMinder’s infrastructure as a foundational layer for AI-enabled commerce.

A targeted annual revenue growth rate of 30% makes this a top Australian share, in my view.

Rising profit margins

Rapid revenue growth alone makes this an incredibly attractive business and compelling investment.

As a software business, the company has pleasing operating leverage potential. In other words, costs don’t rise at the same pace as revenue growth. That translates into rising profit margins and accelerates the company’s intrinsic value.

There were a number margins in the result.

Specifically, the adjusted group gross profit margin increased 98 basis points (0.98%) year-over-year to 67.8%. Within that, the adjusted subscription margin increased 125 basis points (1.25%) to 86.7% through operating leverage and AI-driven efficiencies, and the adjusted transaction margin increased by 558 basis points (5.58%) to 40.1%, boosted by the smart platform.

Adjusted operating profit (EBITDA) grew by 132% to $12.3 million, while reported EBITDA grew $11.2 million to $11.5 million. The statutory net loss improved by $9.1 million to a loss of $3.9 million.

Profitability is rapidly improving at the business and I’m expecting its bottom line to significantly improve in the coming years.

Excellent value for one of Australia’s top shares

The business is clearly doing well, yet the Siteminder share price has sunk. At the time of writing, it has dropped more than 50% from 29 October 2025.

When a business falls that far, it’s a lot cheaper. Yet, the business is generating more revenue than ever and its operating profit margins are increasing.

I think it’s a strong buy today after falling so hard, with its price/earnings (P/E) ratio for its FY30 earnings – whatever that ends up being – is significantly lower. I think the market is dramatically undervalued this business.

The post A rare buying opportunity in 1 of Australia’s top shares? appeared first on The Motley Fool Australia.

More reading

• Why Nvidia’s insights suggest ASX tech shares are undervalued
• Morgans just upgraded these ASX shares to buy ratings
• 2 ASX growth shares I invested in last week with $4,000
• Here are the top 10 ASX 200 shares today
• Why the SiteMinder share price is jumping 8% today

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

Tech has not been comfortable to own lately. Artificial intelligence (AI) disruption fears and a sudden market rotation have made growth investors question their convictions, but volatility and opportunity often arrive together.

But if you believe that this selloff is a temporary hiccup, then it could be worth considering the ASX exchange traded funds (ETFs) in this article before they rebound.

Here’s what you need to know about them:

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF is often described as a simple way to invest in US tech giants. That is true, but it misses something important.

The Nasdaq 100 is not just a collection of software companies. It is a portfolio of businesses that sit at the core of digital infrastructure. Think Nvidia (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), and Alphabet (NASDAQ: GOOGL).

These companies are not fringe innovators. They are building the operating systems of the modern economy. Nvidia designs the chips powering AI data centres, Microsoft’s cloud platform underpins enterprise IT, and Alphabet dominates digital advertising and search.

If artificial intelligence, automation, and cloud adoption continue expanding, the companies inside the Betashares Nasdaq 100 ETF could benefit as central players.

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

Instead of Silicon Valley, this ASX ETF focuses on Australian technology leaders such as WiseTech Global Ltd (ASX: WTC), Xero Ltd (ASX: XRO), and TechnologyOne Ltd (ASX: TNE).

These businesses are building globally competitive software platforms from Australia. They serve logistics companies, accountants, governments, and enterprises around the world.

The BetaShares S&P/ASX Australian Technology ETF provides exposure to that ambition. It reflects the idea that innovation does not have to come exclusively from the United States. Australia has its own cohort of scalable, recurring-revenue businesses expanding offshore.

In periods of tech selloffs, local growth names can be hit hard. That can create long-term entry points for investors who believe in their global potential. This fund was recently recommended by analysts at Betashares.

Betashares Global Cybersecurity ETF (ASX: HACK)

The Betashares Global Cybersecurity ETF offers exposure to a very specific problem that is not going away.

Cyber threats are increasing in frequency and sophistication. As digital infrastructure expands, so does the attack surface.

This ASX ETF holds shares such as CrowdStrike (NASDAQ: CRWD), Palo Alto Networks (NASDAQ: PANW), and Fortinet (NASDAQ: FTNT). These firms are effectively digital security providers for governments and corporations.

Unlike many areas of tech spending, cybersecurity is rarely optional. Even when budgets tighten, protecting networks remains a priority. This bodes well for the long-term growth outlooks of the fund’s holdings.

The post Why now could be a great time to buy these amazing ASX ETFs appeared first on The Motley Fool Australia.

More reading

• Where to invest $1,000 in ASX ETFs next month
• 3 top ASX ETFs to buy and hold for 10 years or more
• 5 ASX ETFs to buy with $50,000 today
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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, BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, CrowdStrike, Fortinet, Microsoft, Nvidia, Technology One, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Palo Alto Networks. 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, CrowdStrike, Microsoft, Nvidia, and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Growth investing is about backing businesses that dominate their niches, generate strong returns on capital, and still have room to expand.

But which Australian growth stocks tick these boxes?

Listed below are three that analysts are bullish on and are tipping as buys:

Light & Wonder Inc. (ASX: LNW)

The first Australian growth stock to consider in 2026 is Light & Wonder.

This is not just a gaming machine manufacturer. It is a content company operating across land-based casinos, online real money gaming, and social gaming platforms.

The real strength of Light & Wonder lies in intellectual property. Successful game franchises can be rolled out across physical cabinets, digital channels, and new markets. That multiplies the lifetime value of each piece of content.

As gaming continues shifting toward digital channels and hybrid models, Light & Wonder is positioned across multiple touchpoints rather than relying on a single revenue stream. That diversification gives it more levers to pull over time.

Bell Potter currently rates Light & Wonder shares as a buy with a price target of $220.00.

Pro Medicus Ltd (ASX: PME)

Another Australian growth stock worth serious consideration is Pro Medicus.

Pro Medicus provides imaging software to hospitals and healthcare providers. Its Visage platform allows medical professionals to view and analyse complex imaging data quickly and efficiently.

Healthcare systems do not replace core software lightly. Once embedded, switching costs are high and contracts are often long term.

The company continues to win large hospital networks, expanding its footprint in the US market. With healthcare demand rising and digital imaging volumes growing, Pro Medicus is benefiting from structural tailwinds rather than cyclical ones.

Morgans is a big fan and has a buy rating and $275.00 price target on Pro Medicus’ shares.

REA Group Ltd (ASX: REA)

A final Australian growth stock to consider in 2026 is REA Group.

REA is best known for operating Australia’s leading online property platform. But the real story is its ecosystem.

The company has built a marketplace that connects buyers, sellers, agents, and increasingly data-driven services around property transactions. Premium listings, data insights, and digital tools give REA multiple revenue streams tied to property activity.

Even though property markets can fluctuate year to year, the long-term shift toward digital advertising and data services remains firmly in place. REA’s dominant position gives it pricing power that smaller competitors struggle to match.

The team at UBS is bullish and has a buy rating and $218.90 price target on REA Group’s shares.

The post 3 Australian growth stocks to buy in 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Pro Medicus and REA Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Light & Wonder Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Light & Wonder Inc and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Federal Government has announced a second increase to deeming rates, which may affect your eligibility for the age pension.

This follows the first increase to deeming rates in five years, which came into effect on 20 September last year.

The lower deeming rate will rise from 0.75% to 1.25% for financial assets under $64,200 for single pensioners and $106,200 for couples.

The upper deeming rate will be increased from 2.75% to 3.25% for financial assets above these amounts.

The new deeming rates remain well below the typical interest rate on basic savings accounts.

However, they may affect your pension eligibility if the higher rates push your income above the income test thresholds.

You may also receive a lesser pension as a result of higher deemed investment income.

Deeming rates explained

Deeming is the method used to estimate a pensioner’s investment income each year.

Instead of asking pensioners to report their actual returns, the government assumes a ‘deemed’ rate of return.

The relevant deeming rate is applied to the total value of your assets to work out your deemed investment income per year.

That investment income, along with any other income, determines whether you’ll get the age pension, and if so, how much you’ll receive.

Some assets, such as investment property, are not subject to deeming rules. Pensioners have to report actual net rental income received.

For most other assets, including ASX shares, international shares, bonds, and cash in savings accounts, the deeming rates apply.

Minister for Social Services, Tanya Plibersek, said:

To make sure our social security system delivers value for taxpayers it must be grounded in fairness, which is why we have made responsible adjustments to deeming rates.

Minister Plibersek said the upcoming changes were in line with the government’s commitment to gradual changes to deeming rates.

Deeming rates were frozen during the COVID pandemic and remained static for five years until September last year.

Pension boost

At the same time as announcing the new deeming rates, the minister gave an estimate as to how much the age pension payment would increase next month.

Minister Plibersek said she expected the full single rate of age pension to go up by $22.20 per fortnight in the next lot of indexation changes, effective from 20 March.

The Department of Social Services will confirm the exact amount next month.

The post Pensioners’ investment deeming rates to rise for the second time in 6 months appeared first on The Motley Fool Australia.

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