Tag: Stock pick

Yesterday, we examined the pros and cons of buying the ASX’s most popular exchange-traded fund (ETF) – the Vanguard Australian Shares Index ETF (ASX: VAS). Today, I thought we’d do the same with another popular fund amongst Australian investors, the iShares S&P 500 ETF (ASX: IVV).

This product is the only fund on the ASX that offers direct exposure to the S&P 500 Index (SP: .INX). This index, representing the largest 500 publicly traded American stocks, is the most widely tracked in the world. As such, this ASX-listed vehicle is a go-to choice for Australian investors seeking some exposure to the American economy.

Let’s discuss two reasons why Australian investors might wish to buy into the iShares S&P 500 ETF in 2026, as well as two reasons they might wish to reconsider.

Two reasons to buy the iShares S&P 500 ETF today

IVV has the best stocks in the world

Firstly, the S&P 500 is quite simply home to many, if not most, of the world’s best businesses. The ASX is home to some great companies. But none can match the global dominance and scale of names like Coca-Cola, Visa, Costco, Apple, Microsoft, Nvidia, Netflix, and hundreds of other top stocks.

These companies are well-known around the world and have long histories of delivering monstrous profits to their investors. The ASX’s IVV ETF is an easy way to gain exposure to all of them, as well as many more.

Warren Buffett recommends the S&P 500

Legendary investor Warren Buffett has recommended a simple S&P 500 index fund for most investors for years, calling it a ‘slice of America’. Buffett has often argued that even most professional investors often struggle to outperform the S&P 500 over long time frames.

As such, he argues that investing in an S&P 500 ETF, such as the ASX’s IVV, is a no-brainer for most ordinary investors like you and me. He once said that if an investor buys the fund and “invests through thick and thin, and especially through thin”, they will build meaningful wealth.

Why might investors want to avoid IVV in 2026?

So if even Warren Buffett is telling us to buy the S&P 500, why might investors not want a slice of the ASX’s IVV ETF in 2026?

Well, here are two reasons why investors may wish to reconsider the iShares S&P 500 ETF today.

Tech, tech and more tech

Despite holding 500 individual stocks within its portfolio, the iShares S&P 500 is not what you would call diversified. It’s no secret that the ‘Magnificent 7’ tech stocks now dominate this index to an extent rarely seen in American history. Sure, these stocks have produced extraordinary returns over the past decade. But this has resulted in them occupying a huge role in the S&P 500 as it stands in early 2026. The Magnificent 7, together with the myriad of other leading tech companies that the US hosts, means that just over 34% of the S&P 500’s weighted portfolio goes towards tech companies.

Coincidentally, 34.1% of the S&P 500 is also represented by the Magnificent 7 alone (Amazon, Alphabet, Tesla, and Meta Platforms aren’t officially tech stocks).

If you aren’t comfortable with this level of tech exposure, IVV might not be the right ASX ETF for you.

A bet on America

As we touched on earlier, Warren Buffett calls the S&P 500 a ‘slice of America’ and buying it a ‘bet on America’. That might not sound too appealing to many investors right now. To be fair, Warren Buffett has long told the world not to bet against the United States, citing its 250 years of capitalistic innovation. He stands firm in that faith today.

But it may be hard for other investors to share that faith. The United States remains the largest and most dominant economy in the world. But it is not without its problems. Government debt is ballooning, with no sign of slowing. America is politically and socially riven with division. And the current administration is pursuing economic policies (tariffs in particular) that many economists argue are counterproductive.

If you aren’t certain that the United States is on a prosperous path as it stands in early 2026, buying a ‘bet on America’ might not align with your own investing preferences.

The post 4 pros and cons of buying the iShares S&P 500 ETF (IVV) in 2026! appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, Apple, Berkshire Hathaway, Coca-Cola, Costco Wholesale, Meta Platforms, Microsoft, Netflix, Vanguard Australian Shares Index ETF, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Costco Wholesale, Meta Platforms, Microsoft, Netflix, Nvidia, Tesla, Visa, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Netflix, Nvidia, Visa, 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.

Sometimes the best income opportunities don’t come from exciting stories or bold forecasts. They come from boring assets doing exactly what they are supposed to do.

That’s how I feel about HomeCo Daily Needs REIT (ASX: HDN) right now.

At a share price of $1.36 at the time of writing, and FY26 distribution guidance of 8.6 cents per unit, this ASX real estate investment trust (REIT) is offering a forward dividend yield of over 6%, before any potential benefit from valuation upside. 

For a REIT with defensive tenants, high occupancy, and growing earnings, that immediately gets my attention.

A portfolio built for everyday life

What I like most about HomeCo Daily Needs REIT is its practical portfolio.

The REIT focuses on convenience-based retail and services that people use regardless of economic conditions. This includes neighbourhood retail centres, large format retail, and health and service assets located in metropolitan growth corridors. These are properties anchored by tenants such as supermarkets, hardware stores, healthcare providers, and essential services.

Its three largest tenants include Coles Group Ltd (ASX: COL), Woolworths Group Ltd (ASX: WOW), and Bunnings and Kmart owner Wesfarmers Ltd (ASX: WES).

This focus shows up clearly in the numbers. Occupancy has remained above 99% since its IPO, and cash rent collection has also stayed above 99%. That consistency matters a lot when you are relying on distributions to fund retirement or supplement income.

In a world where discretionary spending can swing wildly, HomeCo Daily Needs REIT’s exposure to daily needs provides a level of earnings stability that many REITs simply don’t have.

Solid earnings and growing distributions

The FY25 result confirmed why I’m comfortable with this REIT.

Funds from operations (FFO) came in at 8.8 cents per unit, in line with guidance, while distributions reached 8.5 cents per unit. More importantly, management has guided to FY26 FFO of 9 cents per unit and FY26 distributions of 8.6 cents per unit.

That may not sound dramatic, but modest growth combined with reliability is exactly what I want from an income REIT. I am far more interested in sustainability than in stretching for yield.

At today’s share price, investors are being paid well to wait, with the prospect of gradual distribution growth layered on top.

Balance sheet strength and valuation upside

Another reason I would be comfortable owning this ASX REIT is its balance sheet.

Gearing sits around 35%, right in the middle of the target range. The trust has also actively managed its debt, recently refinancing $810 million of facilities out to 2028 at improved margins. Around 70% of debt is hedged until December 2026, which provides a degree of protection if rates remain higher for longer.

What really stood out to me recently was the valuation update from last month. As at December 2025, the trust recorded $219 million in gross valuation gains, driven by strong net operating income growth and slight cap rate tightening. This marked the fourth consecutive period of positive revaluations.

That tells me two things. First, the assets are performing operationally. Second, investor demand for high-quality daily needs property remains strong.

Why I think HomeCo Daily Needs REIT is a top buy for 2026

I’m not buying HomeCo Daily Needs REIT because I expect explosive growth. I’m buying it because it does the basics exceptionally well.

It owns assets that people rely on every day. It leases them to high-quality tenants. It maintains high occupancy. It manages its balance sheet conservatively. And it pays a reliable, growing distribution.

In an environment where income remains valuable and certainty is scarce, that combination is hard to ignore.

For investors seeking to position their portfolio for 2026 with a focus on income, stability, and prudent risk, I believe HomeCo Daily Needs REIT deserves serious consideration.

The post Oh my, this 6% dividend yielding ASX REIT is a top buy for 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Woolworths Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It is easy to get caught up in short-term share price moves. But the ASX shares that often deliver the strongest long-term returns are those quietly expanding their addressable markets, deepening customer relationships, and reinvesting to stay ahead of competitors.

With that in mind, let’s now take a look at a couple of ASX growth stocks that could realistically be much larger businesses by 2030 than they are today.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is arguably one of the most impressive growth stories on the Australian share market and it has achieved this by doing one thing exceptionally well.

Its Visage medical imaging platform is increasingly being adopted by large hospital networks, particularly in the United States. Speed, scalability, and reliability are critical in medical imaging, and once the software is embedded into clinical workflows, it becomes very difficult to replace.

The long-term opportunity remains significant. Imaging volumes continue to rise, data sets are becoming larger and more complex, and healthcare providers are battling radiologist shortages and under constant pressure to improve efficiency. All of this plays directly into Pro Medicus’ strengths.

If adoption continues to broaden globally, the business could be servicing a far larger slice of the healthcare system by the end of the decade.

In addition, the company is expanding into other ologies, such as cardiology and pathology, giving it a significant growth runway over the next decade.

Catapult Sports Ltd (ASX: CAT)

Another ASX growth stock that could grow materially in the future is Catapult Sports.

It specialises in wearable tracking technology and performance analytics used by professional sporting teams and organisations around the world. These tools help teams optimise performance, manage workloads, and reduce injury risk, which are areas where marginal gains can have a significant impact.

What makes Catapult particularly interesting over the long term is the size of its opportunity relative to its current scale. The global professional sports technology market is expected to grow strongly through to the end of the decade, as data and analytics become standard tools across more sports and competitions.

As mentioned here, Bell Potter highlights that “the pro sports technology market is currently valued at US$36bn in 2025 and is forecast to double to US$72bn by 2030.” This bodes well for Catapult, especially given how it is a market leader.

As adoption deepens and operating leverage improves, the business has the potential to generate significantly higher earnings than it does today.

The post Why these ASX growth stocks could be much bigger in 2030 than today appeared first on The Motley Fool Australia.

More reading

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

High-conviction investing is not about owning dozens of shares or reacting to every market headline. It is about identifying a small number of exceptional businesses and being willing to back them through market cycles.

This approach requires patience and discipline. It also requires comfort with short-term volatility in exchange for long-term compounding.

Rather than trying to predict what the market will do next, the focus is on what a business could look like many years from now.

Here is how I would go about building a high-conviction ASX share portfolio.

Start with a clear framework

Before choosing any ASX shares, I would define what earns a place in the portfolio.

For me, high-conviction picks tend to share a few characteristics. They operate in markets with long-term growth drivers, they have competitive advantages that are difficult to replicate, and they are run by talented management teams.

Importantly, I would be comfortable owning these businesses even if markets fell sharply in the short term.

Focus on quality

A high-conviction ASX share portfolio should be anchored by businesses with proven quality.

One example could be CSL Ltd (ASX: CSL). It operates in essential healthcare markets, benefits from structural demand growth, and has spent decades building scale, expertise, and intellectual property.

Another is Cochlear Ltd (ASX: COH). Its leadership position, deep clinician relationships, and high switching costs make it the kind of business that can compound steadily over long periods.

These types of companies could form the backbone of a high-conviction ASX share portfolio.

Add scalable growth engines

Once a quality foundation is in place, I would look to add businesses with clear scalability.

TechnologyOne Ltd (ASX: TNE) is a good example. Its mission-critical software, high recurring revenue, and low customer churn provide strong earnings visibility. With international expansion and ongoing product development, the company still appears to have a long growth runway ahead. Management believes it can double in size every five years.

I would also look for exposure to global infrastructure-style growth through businesses like Goodman Group (ASX: GMG). Its development-led model and exposure to logistics and data centres give it leverage to long-term trends such as e-commerce, automation, and digital infrastructure demand.

These businesses could deliver growth without relying on economic perfection.

Keep the ASX share portfolio focused

A high-conviction ASX share portfolio does not need many holdings.

In fact, too much diversification can dilute the impact of great ideas and could lead to diworsification. I would rather own five or six businesses I understand deeply than twenty I barely follow. This also makes it easier to stay invested during periods of volatility, because each holding has a clear long-term role.

Position sizing matters too. No single stock should dominate the portfolio, but the strongest ideas should be allowed to meaningfully contribute to returns.

Foolish takeaway

Building a high-conviction ASX share portfolio is about patience and quality businesses.

By focusing on a small number of shares with competitive advantages, long growth runways, and proven execution, investors can give themselves a better chance of benefiting from long-term compounding.

The post How I’d build a high-conviction ASX share portfolio appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
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Motley Fool contributor James Mickleboro has positions in CSL, Cochlear, Goodman Group, and Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Cochlear, Goodman Group, and Technology One. The Motley Fool Australia has recommended CSL, Cochlear, Goodman Group, and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

More reading

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Motley Fool contributor Sebastian Bowen has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, CSL, Catapult Sports, and Life360. The Motley Fool Australia has positions in and has recommended Catapult Sports and Life360. The Motley Fool Australia has recommended CAR Group Ltd and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Scores of ASX lithium shares have reset their 52-week highs as lithium commodity prices continue to rise.

Shares in the market’s largest pure-play lithium producer, PLS Group Ltd (ASX: PLS) lifted 1.2% to a new 52-week high of $4.89 today.

The IGO Ltd (ASX: IGO) share price rose 2.1% to a 52-week high of $8.95.

Liontown Resources Ltd (ASX: LTR) shares lifted 3.5% to a 52-week high of $2.10.

The Core Lithium Ltd (ASX: CXO) share price rocketed 24% to a two-year high of 36 cents.

Lake Resources NL (ASX: LKE) shares rose 14.3% to a 52-week high of 16 cents.

Elevra Lithium Ltd (ASX: ELV) shares increased 1.9% to a 52-week high of $9.

Galan Lithium Ltd (ASX: GLN) shares rose 5.5% to a 52-week high of 38 cents.

The Delta Lithium Ltd (ASX: DLI) share price lifted 8.5% to a 52-week high of 25.5 cents.

Wildcat Resources Ltd (ASX: WC8) shares rose 10.3% to a 52-week high of 43 cents.

Pmet Resources CDI (ASX: PMT) shares rose 11.3% to a 52-week high of 69 cents.

The Winsome Resources Ltd (ASX: WR1) share price lifted 9.8% to a 52-week high of 56 cents.

Midas Minerals Ltd (ASX: MM1) shares rose 10% to a 52-week high of 66 cents.

Lithium prices have been steadily lifting since mid-2025 and leapt higher overnight.

Let’s find out why.

Why are lithium prices rising again?

Trading Economics analysts say lithium prices are on the mend due to higher demand and lower supply worldwide.

The lithium carbonate price rose 3.75% overnight to a 19-month high of US$19,793 per tonne.

The Spodumene Concentrate Index (CIF China) Price lifted 1.69% to US$1,800 per tonne.

The Battery-Grade Lithium Hydroxide price rose 3.6% to US$16,213.76 per tonne.

There is greater demand globally for batteries and power infrastructure amid the green energy transition.

Additionally, sales of electric vehicles (EVs) in China are rising, with EVs outselling traditional cars for the first time last October.

Trading Economics reports that ‘new energy vehicles’ in China rose 20.6% annually to a record of 1.823 million units in November.

China has pledged to double EV charging capacity to 180 gigawatts by 2027.

Amid higher demand for lithium, China is also seeking to stabilise lithium prices by implementing measures to avoid over-capacity.

Analysts at Trading Economics said:

The Bureau of Natural Resources of Yichun, which includes the lithium mining hub in the Chinese Jiangxi province, stated it would cancel 27 mining permits early next year.

The move was consistent with the earlier suspension of activity in CATL‘s Jianxiawo lithium mine as the Chinese government aims to reduce capacity in many goods industries to prevent the ongoing race-to-the-bottom that has stirred deflationary pressures.

The post 12 ASX lithium shares rip to 52-week highs appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Bronwyn Allen has positions in Core Lithium. 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 investors looking for passive income, the Australian share market has a multitude of options.

To narrow things down, let’s look at three ASX dividend stocks that experts think could be in the buy zone right now.

Here’s what they are recommending to clients:

Centuria Industrial REIT (ASX: CIP)

The first ASX dividend stock that could be a buy is Centuria Industrial REIT.

It is one of Australia’s leading industrial real estate companies. At the last count, its portfolio comprised 87 high-quality, fit-for-purpose industrial assets worth a collective $3.89 billion. These assets are situated in key in-fill locations and close to key infrastructure.

The team at UBS is feeling positive about the company and its outlook. It believes it is positioned to reward shareholders with dividends per share of 16.8 cents in FY 2026 and then 17.9 cents in FY 2027. Based on its current share price of $3.33, this equates to dividend yields of 5% and 5.4%, respectively.

The broker has a buy rating and $3.95 price target on its shares.

IPH Ltd (ASX: IPH)

Another ASX dividend stock that experts are recommending is IPH.

It is a global intellectual property services group that helps clients across the world protect their patents, trademarks, and intellectual property across multiple jurisdictions.

The company’s defensive business, strong cash conversion, and disciplined capital management have allowed the company to pay generous dividends over the past decade.

The good news is that Morgans expects this trend to continue. It is forecasting fully franked dividends of 37 cents per share in both FY 2026 and FY 2027. Based on its current share price of $3.60, this would mean dividend yields greater than 10% for both years.

Morgans has a buy rating and $6.05 price target on its shares.

Sonic Healthcare Ltd (ASX: SHL)

A third ASX dividend stock that is rated highly by experts is Sonic Healthcare.

It is one of the world’s leading healthcare providers with operations spanning laboratory medicine, pathology, radiology, and primary care medical services.

After a tough period following the end of COVID testing, Bell Potter believes the company is now positioned for sustainable growth.

This is expected to support the payment of partially franked dividends per share of $1.09 per share in FY 2026 and $1.11 per share in FY 2027. With Sonic shares trading at $22.14, this equates to dividend yields of 4.9% and 5%.

Bell Potter has a buy rating and a $33.30 price target on its shares.

The post Buy these ASX dividend stocks for 5% to 10% yields: Experts appeared first on The Motley Fool Australia.

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

Shares in Ansell Ltd (ASX: ANN) are under pressure on Thursday after the company released a leadership update to the market.

At the time of writing, the ASX 200 healthcare stock is down 7.03% to $33.09, marking its lowest level since late October. The pullback extends a softer run for the stock, with Ansell shares now down around 8% over the past month.

While the sell-off follows a CEO transition update, investors are now assessing whether the sharp drop has left the stock oversold.

Let’s take a closer look.

CEO transition triggers short-term selling

Ansell announced that long-serving CEO Neil Salmon will retire, with Nathalie Ahlstrom appointed as his successor. The transition will formally take place in February, following a short handover period.

Mr Salmon has spent more than 13 years at the company, including several years as CEO, overseeing significant operational improvements and major acquisitions. Any leadership change at a $5 billion company can create uncertainty in the short term, which likely explains part of today’s market reaction.

Importantly, the board framed the move as an orderly succession, with Mr Salmon remaining involved as a senior adviser until mid-2026.

While this update may have unsettled some investors, it does not materially change Ansell’s underlying business outlook.

The share price is flashing oversold signals

From a technical perspective, Ansell shares are beginning to look stretched on the downside.

The stock’s relative strength index (RSI) has slipped into oversold territory, suggesting selling pressure may be close to exhaustion. At the same time, the share price has pushed below the lower Bollinger Band, a signal that often appears during short-term capitulation moves.

Adding to that, the current price level lines up with a key support zone that has held on several occasions over the past year. Historically, Ansell shares have attracted buyers when trading near this region.

Taken together, these indicators suggest the recent decline may be more about sentiment than fundamentals.

A high-quality defensive business

Ansell remains a global leader in personal protective equipment, supplying healthcare and industrial customers across more than 100 countries. The company benefits from long-term structural demand, strong brand positioning, and exposure to defensive end markets.

At current levels, Ansell is trading well below its recent highs, despite no deterioration in balance sheet strength or long-term growth drivers. The stock also offers a dividend yield of around 2.3%, providing some income support while investors wait for sentiment to stabilise.

Should investors consider buying the dip?

While short-term volatility may persist, the latest pullback appears to have pushed Ansell shares into oversold territory.

For long-term investors, this weakness could present an attractive entry point into a high-quality ASX healthcare name with defensive characteristics.

As always, a patient, long-term mindset could prove a winning strategy from here.

The post Ansell shares tumble to a 3-month low. Is this a buying opportunity? appeared first on The Motley Fool Australia.

More reading

• Why Ansell, Elsight, Ramelius, and SGH shares are falling today
• $5 billion ASX 200 healthcare stock tumbling on CEO exit
• Ansell announces CEO transition: Nathalie Ahlström to succeed Neil Salmon in 2026
• Analysts name 2 top ASX 200 shares to buy 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 recommended Ansell. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

BetaShares Australian Resources Sector ETF (ASX: QRE) is trading for $8.98 per unit on Thursday, down 0.8%.

This exchange-traded fund (ETF) provides broad exposure to ASX mining shares at a time when many major commodities are soaring.

Strong commodity prices led to the ASX 200 materials sector topping the 11 market sectors for capital growth last year.

The S&P/ASX 200 Materials Index (ASX: XMJ) rose by 31.71% and produced total returns, including dividends, of 36.21%.

In the first week of 2026, many ASX mining shares are resetting their 52-week highs as metal and mineral prices continue their run.

The big ones to watch are gold, silver, copper, and lithium, which have clocked 12-month gains of 66%, 160%, 36%, and 77%, respectively.

By investing in the QRE ETF, you are buying exposure to 43 ASX shares.

It’s heavily weighted to diversified miner BHP Group Ltd (ASX: BHP), whose share price has lifted 20% over the past 12 months.

BHP, which has exposure to iron ore and copper and is the largest miner on the ASX, makes up 34% of QRE’s investments.

QRE is also invested in gold, copper, lithium, mineral sands, rare earths, and alumina producers.

When we think about the ‘resources sector’, the mind naturally goes to ASX mining shares. But this ASX ETF is broader than that.

QRE ETF also holds a significant number of ASX energy stocks, including oil & gas producers, as well as uranium and coal miners.

Woodside Energy Group Ltd (ASX: WDS) is the fund’s third-largest holding at 6.4%.  

ASX utilities share Origin Energy Ltd (ASX: ORG) is also in the mix at 2.8%.

The ASX ETF pays distributions, or dividends, twice per year.

The management fee is 0.34% per annum, which is one of the lowest on the market.

Say you bought QRE ETF a year ago.

While ASX mining stocks have done well since then, energy shares have struggled.

So, how has this investment turned out for you?

What is your investment worth now?

On 8 January 2025, the QRE ETF closed at $6.73 apiece.

If you had put $10,000 into the QRE ETF then, it would have bought you 1,485 units (for $9,994.05).

There’s been a capital gain of $2.25 per unit since then, which equates to $3,341.25 worth of capital growth.

Thus, your BetaShares Australian Resources Sector ETF holdings are now worth $13,335.

In terms of distributions, the QRE ETF paid 10.1811 cents per unit in July and will pay 10.6539 cents per unit on 19 January.

Altogether, that is just over $309 in annual income from your 1,485 QRE ETF units.

Miners and energy producers tend to pay fully-franked dividends, so the average franking on this ETF is high at 88%, amplifying your yield.

Total returns for the QRE ETF…

Your capital gain of $3,341.25 plus your distributions of $309 gives you a total return in dollar terms of $3,650.25.

Now remember, you invested $9,994.05 purchasing QRE ETF on 8 January last year.

This means you have received a total return, in percentage terms, of 36.5%.

While that’s a ‘wow’ of a return, we must remember that mining and energy shares are volatile in nature.

We can see this in the long-run average annual total return after fees for this ASX ETF.

Since inception on 10 December 2010, QRE ETF has delivered an average annual total return after fees of 4.85%.

The post $10,000 invested in QRE ETF a year ago is now worth… appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. 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 shares to choose from on the ASX 200 index.

To narrow things down for investors, let’s see what analysts are saying about these popular options.

Are they buys, holds, or sells? Let’s find out.

AGL Energy Limited (ASX: AGL)

The team at Ord Minnett is feeling bullish on this energy giant. It has a buy rating and $13.00 price target on its shares.

The broker sees potential for AGL’s earnings to rise from higher Victorian wholesale prices. It said:

The company has demonstrated solid momentum over recent times with the Tilt renewable asset sale, flexible capacity development at Bayswater, progress in its Western Australia operations and a series of power purchase agreements (PPAs), and we see further drivers to come from revaluation of its 20% stake in energy management platform Kaluza, a closure of Energy Australia’s Yallourn power station that will push Victorian wholesale prices, and thus AGL earnings, higher, and repricing of Tomago supply contracts.

Post the investor day, we have raised our FY26 EPS estimates by 6.1% to incorporate wider electricity margins partially offset by higher growth capital expenditure, while our forecasts for FY27 and FY28 are trimmed 0.5% and 0.2%, respectively.

Coles Group Ltd (ASX: COL)

Over at Morgans, its analysts have been pleased with the supermarket giant’s performance in FY 2026, despite softer than expected liquor sales.

However, due to recent share price strength, the broker thinks its shares as fairly valued. As a result, it has a hold rating and $22.90 price target on its shares. Morgans feels that investors should wait for a better entry point. It said:

COL reported a solid 1Q26 sales trading update driven by growth in its Supermarkets division. However, Liquor sales were softer than expected as consumers remain focused on value. Management indicated that Supermarkets sales growth in early 2Q26 has remained broadly in line with 1Q26, at ~4.8%. With Woolworths’ (WOW) Australian Food sales up ~3.2%, COL continues to outperform, although the gap is narrowing. The liquor market remains challenging.

We decrease FY26-28F underlying EBIT by 1%, mainly on the back of lower Liquor forecasts due to the ongoing softness in the market. Our target price declines to $22.90 (from $23.45) and we maintain our HOLD rating. While Supermarkets momentum remains positive heading into the key Christmas trading period and execution continues to be strong, trading on 23x FY26F PE with a 3.6% yield, we view COL as fully valued. We would look to reassess our view should the share price weaken further.

PLS Group Ltd (ASX: PLS)

Morgans has also been looking at lithium giant PLS Group, which was formerly known as Pilbara Minerals.

It thinks its shares are overvalued following a strong gain. As such, it has put a sell rating and $3.10 price target on them. It said:

Strong 1Q26 result with production, costs and revenue ahead of expectations. PLS continues to engage with the government following the Australia-US critical minerals framework. Management stipulated its preference for shared infrastructure initiatives over potential price floors. Following recent share price strength we believe PLS is now trading well ahead of fundamentals and we therefore move to a SELL rating.

The post Buy, hold, sell: AGL, Coles, and PLS shares appeared first on The Motley Fool Australia.

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