When markets are moving quickly, it is tempting to feel like you need to act on every opportunity straight away. But I tend to think the better approach is to slow down and assess each investment on its own merits.
Right now, three ASX investments come up often in conversations with investors: ANZ Group Holdings Ltd (ASX: ANZ), Vanguard Australian Shares Index ETF (ASX: VAS), and Zip Co Ltd (ASX: ZIP).
Here's what I would do if I had to make a call on these ASX shares this week.
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ANZ shares
ANZ has been a strong performer over the past year, supported by solid earnings, resilient credit quality, and its strong position in Australian banking.
At this point, though, I would not be in a rush to add more. Bank earnings are heavily influenced by factors such as net interest margins, funding costs, and the broader economic cycle. After a couple of favourable years, I think earnings growth across the sector could become more challenging in 2026 and 2027. This could mean returns are softer for shareholders in the near term.
That does not mean ANZ is a bad investment. Far from it. It remains a high-quality business with a solid balance sheet and a reliable dividend. For existing shareholders, I think it still makes sense to hold and collect the income.
However, if I am deploying fresh capital this week, I do not see ANZ as the most compelling risk-reward opportunity right now compared to other parts of the market.
Vanguard Australian Shares Index ETF
If I could only make one simple investment decision this week, buying the Vanguard Australian Shares Index ETF would be near the top of the list.
The VAS ETF provides broad exposure to the Australian share market, covering large and mid-cap companies across sectors including financials, resources, healthcare, and consumer staples. It is low-cost, diversified, and easy to hold for the long term.
I like this ETF because it removes the need to make perfect stock-picking decisions. Instead, you get exposure to the overall growth of Australian businesses, plus a healthy stream of dividends along the way.
For investors building wealth steadily, adding to the Vanguard Australian Shares Index ETF during periods of uncertainty or volatility is often a sensible move. It may not be exciting, but it is effective. If I am investing this week with a long-term mindset, the VAS ETF is a clear yes for me.
Zip shares
Zip is a very different proposition to ANZ and VAS. It is higher risk, more volatile, and far more sensitive to changes in consumer behaviour and market sentiment.
That said, this is exactly why I think Zip is interesting right now. The company has spent the past couple of years simplifying its business, exiting less profitable markets, and focusing on improving margins and cash flow. While it is still early, the direction of travel looks a lot more encouraging than it did previously.
According to CommSec, consensus forecasts suggest that earnings could improve meaningfully over the next couple of years. If that plays out, Zip's current valuation could prove reasonable relative to its growth potential.
This is not a stock I would buy without understanding the risks. But for investors willing to accept volatility in exchange for upside, I think Zip offers an attractive opportunity at current levels.
