It's hard to ignore the headlines right now.

Geopolitical tensions are rife across multiple regions. Energy markets are under pressure. Inflation remains sticky. And here in Australia, cost-of-living pressures are front of mind for most households.

For younger investors, this environment can feel like the worst possible time to invest.

But history suggests something different.

Periods of uncertainty are not new. What is consistently powerful, however, is the maths of long-term investing — and the earlier it starts, the better.

Why uncertainty feels worse than it is

When markets are volatile and headlines are negative, it's natural to focus on what could go wrong.

That often leads to hesitation — delaying investments, holding excess cash, or waiting for "certainty" to return. The challenge is that certainty rarely arrives in real time. Markets tend to move ahead of improving conditions, not after them.

This is where younger investors may have an advantage.

With a longer time horizon, short-term volatility becomes less of a risk and more of a feature of the journey.

The real driver: compounding over time

One of the most powerful concepts in investing is compounding — the ability for superannuation returns to generate their own returns over time.

It's simple in theory, but incredibly powerful in practice.

A useful shortcut to understand this is the Rule of 72.

Take 72 and divide it by your expected annual return. That tells you roughly how long it takes for your money to double.

At a 9% return, your money doubles about every 8 years.

That means over a 30-year period, your investments could double roughly three to four times.

Put simply:

• Year 0: $100,000
• Year 8: ~$200,000
• Year 16: ~$400,000
• Year 24: ~$800,000
• Year 30: ~$1 million+

That's the power of time doing the heavy lifting.

For many investors, this kind of long-term exposure can be achieved through diversified ETF options like the Vanguard Australian Shares Index ETF (ASX: VAS), which provides broad access to the Australian share market without needing to pick individual winners.

The key variable isn't timing the perfect entry point.

It's time in the market.

The $30,000 superannuation cap most investors overlook

For Australian investors, there is an often under-appreciated opportunity: the ability to invest up to $30,000 per year into tax-advantaged structures like superannuation (subject to current concessional contribution caps).

While this may not be achievable for everyone immediately, it provides a useful framework.

Let's break it down:

• $30,000 per year invested consistently
• Over 30 years
• Compounding at a long-term rate like 9%

Even allowing for market cycles along the way, the end result can be substantial.

And importantly, a large portion of that outcome is driven not by how much you contribute, but how long your money is compounding.

It's a drum worth banging repeatedly: what matters most is consistency, not perfection.

Building the habit early

The biggest risk for younger investors isn't volatility.

It's inaction.

Many people spend years waiting for the "right time" to begin, only to realise later that starting earlier would have made a far greater difference than any short-term market movement.

A disciplined approach might include:

• Investing regularly (monthly or quarterly)
• Focusing on broad market exposure through diversified assets
• Adding selective positions over time as knowledge and confidence grow

This approach aligns with what many long-term investors aim to do — build steadily, rather than chase short-term gains or headlines.

A mindset shift that changes everything

It's easy to view today's environment as risky.

And in the short term, it is.

But for long-term investors, uncertainty can also create opportunity — particularly when it encourages lower prices and higher future return potential.

The key is reframing the question.

Instead of asking:

"Is now the perfect time to invest?"

A more useful question may be:

"Will I wish I had started earlier?"

Foolish takeaway

Short-term uncertainty can feel overwhelming, especially for younger investors navigating their early years of wealth building.

But the combination of time, compounding, and consistent investing — particularly when taking advantage of structures like the $30,000 annual cap — can be incredibly powerful.

Markets will always face challenges.

The superannuation investors who tend to benefit most are those who start early, stay consistent, and allow time to do the heavy lifting.

The post How the average Aussie at 30 could reach over $1 million in superannuation appeared first on The Motley Fool Australia.

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• Own ASX VAS or other Vanguard ETFs? Dividends just announced
• Is it too late to start investing in ASX shares in your 40s?
• This simple ASX ETF strategy could quietly build serious wealth
• 5 of the best ASX ETFs to buy in April
• How I'd aim to build a $100,000 ASX share portfolio starting at zero

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

Right now, it feels like investors are being hit from every angle.

Ongoing conflicts in regions like Ukraine and the Middle East are creating uncertainty. Energy markets remain volatile, fuelling concerns about inflation. And here in Australia, cost of living pressures are at the forefront of households' minds.

When headlines are dominated by fear, it becomes harder to stay optimistic — and even harder to stay consistent with an investment plan.

Yet history suggests this is exactly when simple strategies matter most.

Markets have always climbed a wall of worry

It is easy to believe that "this time is different".

The current backdrop — geopolitical tensions, rising fuel costs, and inflation — feels uniquely challenging. But zooming out tells a very different story.

Over the past century, equity markets in both Australia and the United States have navigated:

• World wars
• Oil shocks
• Financial crises
• Pandemics
• Political instability

And yet, broad indices like the S&P/ASX All Ordinaries Index (ASX: XAO) and major US benchmarks have continued to trend higher over time.

This phenomenon is often described as the "wall of worry" — markets advancing despite a constant stream of negative news.

The key insight is simple: short-term fear is persistent, but long-term progress in businesses and economies has historically been more powerful.

The strategy that gets hardest when it matters most

Dollar-cost averaging is often described as one of the simplest ways to invest.

Invest regularly. Ignore short-term noise. Let time and compounding do the heavy lifting.

But the reality is more nuanced.

This approach becomes most difficult during market declines — precisely when it is most powerful.

When markets fall, sentiment weakens. Confidence drops. The instinct to pause or wait for clarity kicks in.

Yet those periods often produce the most attractive long-term entry points.

Buying when prices are lower sounds easy. Continuing to do so when the news cycle is negative is where discipline is tested.

A practical framework: building a core and adding conviction

One way to stay grounded through volatility is to structure a portfolio deliberately.

A commonly used approach is the core and satellite strategy — a framework that balances stability with opportunity.

The core: broad exposure that does the heavy lifting

At the centre of the portfolio sits a diversified foundation, typically built using broad-market ETFs.

For Australian investors, that often includes:

• Vanguard MSCI International Shares ETF (ASX: VGS) – exposure to around 1,500 global companies
• BetaShares Australia 200 ETF (ASX: A200) – coverage of Australia's largest listed businesses
• iShares S&P 500 ETF (ASX: IVV) – access to leading US companies
• VanEck Morningstar Wide Moat ETF (ASX: MOAT) – focused on businesses with durable competitive advantages

These types of holdings are designed to capture long-term economic growth across markets, sectors, and geographies.

They are not about chasing the next big winner. They are about participating in the broader progress of global business over time.

The satellites: targeted ideas around the edges

Around that core, investors can allocate a smaller portion to higher-conviction ideas.

This could include individual companies or thematic ETFs such as:

• BetaShares Global Cybersecurity ETF (ASX: HACK)
• VanEck Global Defence ETF (ASX: DFND)

These positions bring focus and potential upside, particularly in areas benefiting from structural tailwinds like digital security, defence spending, or large-scale technology adoption.

The key is proportion.

The core provides stability and consistency. The satellites introduce variability and opportunity.

Why this approach fits today's environment

In uncertain periods, complexity often increases.

Investors are tempted to react — shifting allocations, chasing trends, or waiting for clarity that rarely comes.

A structured approach helps cut through that noise.

• The core ensures you remain invested in long-term growth
• The satellites allow you to express views without overexposing your portfolio
• Dollar-cost averaging keeps capital flowing consistently

Importantly, this framework does not rely on predicting macro events — something even professionals struggle to do consistently.

Foolish takeaway

The current environment feels challenging, but uncertainty has always been part of investing.

Markets have moved forward through decades of conflict, inflation shocks, and economic cycles.

For investors, the real edge often comes from consistent behaviour.

Simple strategies like dollar-cost averaging, combined with a clear core and satellite structure, can help maintain that discipline.

Because in many cases, the moments that feel hardest to invest are the ones that matter most over the long term.

The post This simple ASX ETF strategy matters more than ever in today's uncertain market appeared first on The Motley Fool Australia.

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

Long-term thematic investing has historically played a key role in capturing outsized returns.

Major technological shifts, from the expansion of the internet back to mass automobile production, highlight how early exposure to structural change can drive meaningful value creation.

Today, artificial intelligence (AI) and semiconductor infrastructure are shaping up as two of the most important themes of the next decade.

The challenge, however, is not recognising the trend — it is figuring out how to invest in it before the opportunity becomes obvious to everyone.

The rise of AI and semiconductor infrastructure

AI is no longer a niche concept. It is rapidly becoming embedded across industries, from healthcare and finance to logistics and defence.

Behind that shift sits an enormous infrastructure buildout.

Data centres are expanding. Cloud computing demand continues to rise. High-performance chips are becoming more critical with each new generation of AI models.

Semiconductors are effectively the "picks and shovels" of this transformation. Without them, AI simply does not function.

At the same time, the ecosystem is far broader than just chipmakers. It includes equipment suppliers, data centre operators, network providers, and unique part manufacturers.

That complexity is part of what makes the opportunity so compelling — and also what makes it difficult for investors to navigate.

Why picking winners can be harder than it looks

While it may be tempting to back a handful of individual companies, this approach comes with risks.

Even if an investor correctly identifies a leading player, there is no guarantee it will capture the majority of value over time.

Technology cycles can shift quickly. Competitive dynamics evolve. New entrants can disrupt incumbents.

In many cases, the biggest winners are not always the most obvious at the start.

That is one reason some investors are increasingly looking beyond individual stocks and toward broader exposure.

A different approach: Thematic ETFs

Exchange-traded funds (ETFs) offer a way to gain exposure to a theme rather than a single company.

Instead of trying to pick one or two winners, investors can access a diversified basket of businesses that are all positioned to benefit from the same structural trend.

Two ASX-listed ETFs that focus directly on this theme include:

• Global X AI Infrastructure ETF (ASX: AINF) – targets companies enabling AI through data centres, cloud infrastructure, and hardware
• Global X Semiconductor ETF (ASX: SEMI) – provides exposure to global semiconductor leaders, including chip designers, manufacturers, and equipment providers

These types of ETFs reflect the reality that AI is not just an endpoint use case story; it is also an infrastructure story.

They provide exposure across the value chain rather than relying on a single company to execute perfectly.

Where these ETFs can fit in a portfolio

For many investors, broad index ETFs remain the foundation of a portfolio. These provide exposure to the overall market and help manage risk through diversification.

Thematic ETFs, on the other hand, tend to play a different role.

They can be used as a satellite allocation — a smaller portion of a portfolio designed to target specific areas of potential growth.

In this context, an investor might allocate a portion of their capital to themes like AI infrastructure, while maintaining core holdings elsewhere.

This allows for targeted exposure without overcommitting to a single idea.

It also aligns with a broader strategy of building a portfolio over time, focusing on quality, diversification, and compounding.

The trade-offs to consider

While thematic ETFs offer clear advantages, they are not without trade-offs.

Because they are more focused, they can be more volatile than broad market funds. They may also become crowded if investor enthusiasm runs ahead of fundamentals.

And importantly, not every theme will deliver the returns investors expect.

However, for investors who believe AI and semiconductors could remain at the centre of global growth, the question may not be whether to gain exposure, but how.

Foolish Takeaway

AI and semiconductor infrastructure are already reshaping industries and attracting enormous global investment.

For those looking to participate without picking individual winners, ETFs like AINF and SEMI offer a simple, diversified entry point.

Used thoughtfully within a broader portfolio, they may provide exposure to one of the most powerful investment themes of the coming decade before it becomes fully priced in.

The post As AI spending accelerates these ASX ETFs could help you tap into the boom appeared first on The Motley Fool Australia.

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

Most Australians know superannuation matters. Fewer know whether they are actually on track — or how much time they have left to do something about it.

At 55, retirement is no longer a distant concept. It is approaching, but it is not here yet. That distinction matters.

Because while 60 is often framed as the "line in the sand", 55 is where the real decisions get made — particularly around how you accumulate, invest, and position your final years of working life.

So instead of asking what your super should look like at retirement, a more useful question might be this: what position do you want to be in five years earlier?

The benchmark still matters — but timing changes everything

The Association of Superannuation Funds of Australia (ASFA) continues to provide a useful guidepost.

A comfortable retirement today still implies spending of roughly $55,000 per year for a single person and over $78,000 for a couple. To support that lifestyle, the broad benchmark sits around $630,000 in super for singles and closer to $730,000+ combined for couples.

Those figures assume home ownership and some support from the Age Pension from 67.

At face value, the targets have not changed dramatically. What has changed is how much flexibility you still have at 55.

Where Australians in their mid-50s are actually sitting

For many Australians, the gap is already visible by 55.

Average balances tend to sit meaningfully below the "comfortable" benchmarks — particularly for singles and women. Structural factors such as career breaks, part-time work, and lower lifetime earnings continue to show up in the data.

Couples, on the other hand, are often closer to the mark on a combined basis, especially when both partners have maintained steady contributions over time.

But averages only tell part of the story.

At 55, most people are still working. That means contributions are ongoing, investment returns are still compounding, and decisions made now can have an outsized impact compared to earlier decades.

Why your 50s are the most powerful investing years

There is a tendency to become more conservative as retirement approaches. In some cases, that is sensible. In others, it can quietly work against long-term outcomes.

The reality is that your early-to-mid 50s may represent the most capital-rich period of your life:

• Your income is often at or near its peak
• Debts may be lower or more manageable
• Super balances are large enough for compounding to matter
• Time horizon is still meaningful (10–20 years of retirement ahead)

That combination creates a window where both contributions and investment allocation can materially change your trajectory.

Even small adjustments — whether that is increasing concessional contributions, reviewing fees, or ensuring your super is appropriately invested for growth — can compound over the next decade.

This is also where the mindset subtly shifts.

Earlier in life, investing is about building. In your 50s, it becomes about finishing well — maximising what you already have.

The levers available at 55

Unlike at 60, where the focus often shifts to drawing down, 55 still offers a full toolkit for accumulation.

There are three broad levers worth understanding:

• Contributions: Concessional contributions (up to current caps) remain one of the most tax-effective ways to boost super. Carry-forward rules may also allow for larger catch-up contributions depending on your balance and history.
• Downsizer strategy (later optionality): While typically used closer to retirement, understanding the ability to contribute proceeds from a future home sale can influence planning decisions now.
• Investment positioning: Reviewing asset allocation, fees, and fund structure can be just as impactful as adding new money. Over a 5–10 year window, these changes can compound meaningfully.

None of these are silver bullets on their own. Together, they can meaningfully shift outcomes.

A different way to think about "on track"

The conversation around super often focuses on a single number at a single age.

In reality, the more useful lens is trajectory.

At 55, you are not locked in. You are positioned.

Some Australians will already be within reach of a comfortable retirement. Others will see a gap that feels confronting at first glance.

The key difference now is that you still have time — and, more importantly, leverage.

Foolish takeaway

Looking at super at 55 reframes the conversation.

It is less about whether you have "enough" today, and more about what you can still influence before retirement begins.

For couples, the path to a comfortable retirement may already be visible. For singles, the gap can be more pronounced — but not necessarily fixed.

The final working years are not just a countdown. They are an opportunity.

And how you approach accumulation and investing from here may matter more than anything that came before.

The post What Australians must focus on at 55 to build enough superannuation before retirement appeared first on The Motley Fool Australia.

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

It hasn't been the smoothest ride for Energy One Ltd (ASX: EOL) shareholders over the past year.

Despite operating in a sector benefiting from structural tailwinds, the ASX small-cap's share price has fallen more than 35% from its recent peak. For many investors, that kind of decline can raise red flags.

But dig a little deeper, and the underlying business appears to be telling a very different story.

What does Energy One actually do?

Energy One is not your typical energy company.

Rather than producing or supplying power, it provides software, outsourced operations, and advisory services to wholesale energy, environmental, and carbon trading markets across Australia and Europe.

Its platform helps participants manage complex tasks like trading, market communication, and power plant operations — effectively acting as digital infrastructure for increasingly sophisticated energy markets.

As grids become more decentralised and volatile, software like this becomes more critical.

Strong results hiding behind the share price fall

While the share price has pulled back, recent financial results paint a picture of a business gaining momentum.

For the latest half, Energy One reported:

• Revenue of $34.8 million, up 21%
• Annual recurring revenue (ARR) of $64.0 million, up 20%
• Operating margins (EBITDA margin) expanding to 21%
• Underlying net profits (underlying NPAT) of $4.5 million, up 56%
• Net debt reduced to $5.8 million (down $7.2 million)

This is the kind of profile investors often look for in small-cap software businesses: recurring revenue, expanding margins, and improving balance sheet strength.

In particular, the growth in ARR suggests increasing visibility and predictability, which can be valuable in more uncertain market environments.

Why the disconnect?

So why has the share price gone backwards?

There's no single answer, but a few themes may be at play.

First, ASX small-cap tech and software names have been under pressure more broadly as interest rates rise and expectations remain elevated. Higher discount rates can weigh on valuations, particularly for growth-oriented businesses. 

Second, Energy One operates in a niche that doesn't always attract widespread attention. Unlike high-profile AI or consumer tech names, its role in energy market infrastructure is more behind the scenes. 

And finally, the software industry as a whole has faced valuation headwinds in the face of AI disruption. Sentiment against software as a service (SaaS) stocks turned negative in early this year, described as a "SaaSpocalypse", driven by fears that AI tools will disrupt the traditional software business model. 

Broker sees potential upside

Interestingly, at least one broker sees the current weakness as an opportunity.

Ord Minnett has placed a buy rating on the stock with a price target of $21.58, implying potential upside of more than 50% over the next 12 months.

The broker also highlighted the company's margin expansion and its position as a profitable, cash-generative business growing revenue at over 20% annually.

That combination — growth plus profitability — is not always easy to find in the ASX small-cap universe.

The bigger picture

Zooming out, Energy One sits at the intersection of several long-term trends.

Energy markets are becoming more complex, driven by electrification, renewables, and decentralisation. That complexity tends to increase demand for software, data, and automation.

If that theme continues to play out, companies providing the "plumbing" of these markets could quietly benefit.

Of course, small caps come with their own risks — including execution, competition, and market volatility.

But with strong recent growth, improving margins, and a share price well below its highs, this ASX small cap may be one to keep on the radar.

The post This energy focussed ASX small-cap could surge 50% as earnings build appeared first on The Motley Fool Australia.

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Motley Fool contributor Leigh Gant has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Energy One. 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.

While the broader market is currently questioning capital expenditure and return on investment from hyperscalers like Amazon.com Inc (NASDAQ: AMZN), Meta Platforms Inc (NASDAQ: META), and Alphabet Inc (NASDAQ: GOOG), looking elsewhere for beneficiaries of structural tailwinds could present opportunities over the long run.

In Australia and globally, several powerful themes are driving investment. Electrification is reshaping energy systems, requiring significant spending on transmission infrastructure, renewable generation, and storage. At the same time, strong commodity prices are supporting mining companies, while large-scale infrastructure projects — including those linked to the Brisbane 2032 Olympics — are lifting activity domestically.

Against this backdrop, two ASX-listed companies, Wagners Holding Company Ltd (ASX: WGN) and NRW Holdings Ltd (ASX: NWH), have delivered standout share price performance over the past 12 months, rising over 157% and 94%, respectively.

But after such strong gains, are the fundamentals keeping pace?

Riding the infrastructure and construction wave

Wagners is a construction materials and infrastructure business with exposure to concrete, cement, composite materials, and aviation services. The company generates revenue by supplying essential inputs into infrastructure, civil construction, and mining projects — sectors that are currently benefiting from elevated investment levels.

Recent updates suggest Wagners has been experiencing strong trading momentum, supported by higher demand across its key divisions. In particular, infrastructure activity in Queensland and major project pipelines have been contributing to increased volumes and improved pricing outcomes.

The company has also continued to invest in its proprietary composite technologies, which offer lighter and more durable alternatives to traditional materials. This positions Wagners to benefit not only from near-term construction demand but also longer-term structural shifts in how infrastructure is built.

Looking ahead, the outlook appears supported by sustained infrastructure spending and population growth, particularly in regions such as southeast Queensland. If project activity continues to ramp up, Wagners could see further earnings growth, provided cost pressures remain controlled.

NRW Holdings: Leveraged to mining services growth

NRW Holdings operates as a mining services contractor, providing civil, mining, and drill and blast services to resource companies. Its revenue is largely tied to contract work across mine development, production, and infrastructure.

The company has benefited from strong commodity prices, which have left many miners with robust balance sheets and the ability to fund expansion projects and exploration programs. This has translated into a growing pipeline of work for contractors like NRW.

Recent results highlight solid profit growth and a healthy order book, with the company securing new contracts and maintaining strong utilisation across its fleet. Importantly, NRW's diversified exposure across commodities and clients helps mitigate reliance on any single project or resource.

The outlook remains favourable as mining investment continues, particularly in bulk commodities and critical minerals linked to the energy transition. As long as commodity markets remain supportive, demand for mining services is likely to stay elevated.

What could drive the next leg of growth?

Both ASX shares are benefiting from trends that appear durable rather than cyclical in nature.

Electrification requires significant capital investment in infrastructure. Mining companies are expanding to meet demand for key resources. And government-backed infrastructure pipelines remain strong.

However, after such significant share price appreciation, future returns may depend more heavily on continued earnings growth rather than multiple expansion.

For Wagners, this means maintaining margins while scaling production and delivering on project demand. For NRW, it comes down to converting its order book into sustained revenue and profit growth while managing costs.

If both companies can continue to grow revenue and earnings, maintain or expand margins, and avoid valuation compression, there is potential for further upside over time.

As always, the key will be execution.

The post 2 ASX shares booming on electrification and mining. Is there more upside ahead? appeared first on The Motley Fool Australia.

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Motley Fool contributor Leigh Gant has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, and Meta Platforms. The Motley Fool Australia has recommended Alphabet, Amazon, and Meta Platforms. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Australian share market has pulled back from recent highs, with investors navigating a mix of rising interest rates, geopolitical uncertainty, and shifting global growth expectations.

While this type of volatility is not unusual, some sectors have felt the pressure more than others. In particular, non-bank financials have had a challenging period, with several high-quality names seeing meaningful share price declines.

Two examples are Pinnacle Investment Management Group Ltd (ASX: PNI) and Netwealth Group Ltd (ASX: NWL). Over the past 12 months, their share prices have fallen more than 27% and 20%, respectively.

For long-term investors, periods like this often spark discussion around contrarian thinking. When sentiment turns negative, it can sometimes push share prices below what the underlying business performance might justify. That doesn't automatically mean value is present — but it can create a reason to look more closely.

So, how are these two businesses actually performing beneath the surface?

Inflows climbing

Pinnacle operates a multi-affiliate funds management platform. Rather than managing all assets directly, it takes equity stakes in specialist investment boutiques (known as affiliates) and earns a share of their fees and profits.

This model allows Pinnacle to scale across asset classes and geographies while remaining relatively capital-light.

Recent results suggest the underlying business continues to grow, even as performance fees fluctuate. Funds under management (FUM) reached $202.5 billion, up 13%, supported by record net inflows of $17.2 billion for the half.

Importantly, core earnings appear resilient. Pinnacle reported strong growth in its share of affiliate profits (excluding performance fees), with underlying net profit (NPAT) also rising solidly versus the prior period.

The variability comes from performance fees, which declined compared to the previous corresponding period — highlighting the cyclical nature of earnings in funds management.

Strategically, the business continues to expand globally, with increasing exposure to international markets and private assets, alongside new investments such as its stake in Pacific Asset Management.

Improving profitability 

Netwealth is a platform provider offering technology, administration, and investment solutions to financial advisers and their clients. It generates revenue primarily from fees linked to funds under administration (FUA) and from transaction and ancillary services.

The structural tailwinds behind the business — including the shift towards platform-based investing and independent advice — remain firmly in place.

Recent results highlight strong operational momentum. Netwealth reported FUA of $125.6 billion, up 23.6% year on year, alongside total income growth of 24.7% to $193.8 million.

Profitability also improved, with operating earnings (EBITDA) rising 23.9% and net profit after tax increasing nearly 20%.

Revenue growth has been broad-based, with platform revenue climbing 25.3%, supported by growth across administration, transaction, and ancillary fees.

The company continues to benefit from strong inflows and adviser growth, with custodial inflows of $16.4 billion for the half and expanding market share in the platform sector.

Management remains focused on investing in technology and product capability, including AI-driven enhancements, to support long-term growth and adviser productivity.

Foolish takeaway

Despite notable share price declines over the past year, both Pinnacle and Netwealth appear to be delivering solid underlying business performance.

Pinnacle's growth continues to be driven by inflows and its scalable affiliate model, while Netwealth is benefiting from structural industry shifts and strong platform growth.

As always, markets can sometimes weigh short-term uncertainty more heavily than longer-term fundamentals. If these companies can continue to grow revenue and earnings over time, a shift in sentiment could eventually see valuations move higher again.

Whether that plays out — and over what timeframe — remains something investors will be watching closely.

The post 2 beaten-down ASX financial stocks worth a closer look appeared first on The Motley Fool Australia.

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Motley Fool contributor Leigh Gant has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth Group and Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Netwealth Group and Pinnacle Investment Management Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The last time Australia faced back-to-back interest rate rises, most investors were hoping the worst was behind them.

Not anymore.

The Reserve Bank of Australia has now raised the cash rate to 4.1%, following a hike in February, and all four major banks had tipped this move as a near certainty heading into today's decision. That is two increases in a matter of months, reversing much of the easing cycle that played out through 2025. The catalyst is well-known: persistent inflation, a tight labour market, and an oil shock from the Middle East conflict that has complicated the RBA's path back to target.

For shareholders in Commonwealth Bank of Australia (ASX: CBA), the question is what any of this actually means for one of the ASX's most closely watched businesses.

The rate rise paradox

Higher interest rates are, in theory, good for banks. When the cash rate rises, lenders can reprice their loan books faster than their deposit costs, widening the net interest margin (NIM) — the spread between what a bank charges borrowers and what it pays savers. Commonwealth Bank's NIM is already among the strongest of the major banks.

But there is a catch. That same rate rise squeezes the customers Commonwealth Bank relies on.

With the cash rate now at 4.1%, and potentially heading higher again in May if inflation data stays sticky, mortgage holders are absorbing real pressure. Each 25 basis point rise adds roughly $90 per month to repayments on a $600,000 loan. Two rises in 2026 alone adds $180 per month for millions of Australian households — many of whom bank with the big four.

The risk is not just sentiment; it is also credit quality. Higher rates for longer raise the probability of loan arrears climbing and some borrowers falling into difficulty. The RBA's own forecasts project unemployment will rise gradually toward 4.6% by mid-2028 as tighter policy slows growth. That headwind does not hit immediately, but it builds.

What does the current valuation actually tell you?

Commonwealth Bank shares are currently trading around $176, which puts the price-to-earnings ratio at roughly 28 times. That is the highest valuation of the big four banks, and well above the long-run average for Australian banking stocks as a sector.

To put that in context: the trailing dividend yield sits at close to 2.9%, fully franked. The most recent interim dividend was $2.35 per share, paid in late March. For income-focused investors, the franking credits add meaningful value on a grossed-up basis. However, compared to where Commonwealth Bank has historically yielded — and compared to peers like National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC), which trade at lower multiples and higher yields — the income argument for buying Commonwealth Bank at current prices is relatively thin.

The premium has always been there, and it has always been justified to a degree. Commonwealth Bank's H1 FY 2026 cash net profit after tax came in at $5.45 billion, up 6% on the prior period. Return on equity remains among the highest in the sector. The brand, the scale, and the technology investment program are genuine competitive advantages that peers have not been able to replicate.

Yet, a premium valuation priced for near-perfection leaves limited room for error. If net interest margins normalise as competition for deposits intensifies, or if loan impairments tick up in a higher-for-longer rate environment, that 28 times multiple becomes harder to defend.

Foolish Takeaway

Commonwealth Bank is not a bad business. It is arguably one of the best-run banks in the world, and it has consistently rewarded long-term shareholders who held through noise and uncertainty.

The honest question in 2026 is whether the current price already reflects all of that quality, and then some. At 28 times earnings with a sub-3% yield, investors are paying a significant premium over peers for a franchise that, while exceptional, faces the same credit cycle headwinds as every other lender. That does not make the shares uninvestable. But for investors weighing up where to put new capital in a rising rate environment, the price being asked for Commonwealth Bank deserves careful thought.

The post Rates are rising. Are Australia's biggest bank shares still worth buying? appeared first on The Motley Fool Australia.

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• What happened with ASX 200 bank stocks like CBA and Westpac in March?
• Why sitting out this ASX share market chaos could cost you big
• How are these 5 ASX share giants really tracking in 2026?

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

The Shape Australia Corporation Ltd (ASX: SHA) share price has delivered strong returns for investors over the past year, though the small-cap has pulled back slightly from recent highs.

At the time of writing, shares in the fitout and construction services specialist are trading around $6.51, down from a high of $7.59 in mid-February following the release of its latest half-year results.

Despite that modest pullback, the company's first-half FY26 result showed continued revenue growth, improving margins, and expanding opportunities in new markets.

Let's take a closer look at what's driving the company's momentum.

Strong revenue and profit growth in 1H FY26

Shape reported revenue of $553.3 million for the six months to December, representing a 16% increase compared with the prior corresponding period.

Profitability also improved significantly during the half:

• Operating earnings (EBITDA) rose 45% to $21.4 million
• Net profit after tax (NPAT) climbed 49% to $14 million
• Earnings per share (EPS) increased to 16.8 cents

Management attributed the result to a diversified order book, disciplined cost management, and strong project execution.

Margins also improved during the period, with gross margin lifting to 9.8% from 9.1% in the prior corresponding period.

In addition, the company declared an interim dividend of 14 cents per share, which represented a 40% increase on the prior year's payout.

Diversification strategy starting to pay off

A key theme in Shape's strategy is diversification beyond its traditional office fitout market.

The company is increasingly targeting sectors such as education, industrial, data centres, aged care, and retail, which management believes can provide more stable demand and improved margins.

For example, project wins in the education sector surged 170% to $153.5 million during the half.

Meanwhile, emerging segments are also gaining traction. The industrial and data centre sectors delivered $137.4 million in project wins, compared with just $7 million a year earlier.

Another growth area is "Modular by SHAPE", the company's modular construction business. Revenue from this division reached $38.7 million in the first half, already exceeding the $16.4 million generated for the entire FY25.

Acquisition expands addressable market

Shape also completed the acquisition of Arden Group in December 2025, a national retail fitout and maintenance specialist.

Management believes this deal could open new opportunities, particularly in multi-site rollout projects across fuel and convenience retail networks.

The acquisition is also expected to provide recurring maintenance revenue and cross-selling opportunities, potentially improving the group's overall margin profile over time.

A strong pipeline heading into the second half

Looking ahead, the company appears well-positioned for the remainder of FY26.

Shape reported a backlog of $686.1 million, 33% higher than the prior year, along with an identified project pipeline of approximately $3.8 billion.

Management also noted that the Arden acquisition only contributed one month of earnings in the first half, meaning the second half of the financial year should reflect a fuller contribution.

Combined with growing demand in areas such as modular construction and data centres, this could support further growth in revenue and earnings.

Foolish bottom line

Shape's recent results highlight a company that is expanding its capabilities, improving margins, and diversifying into new markets.

While the share price has eased from its February highs, the underlying business continues to show steady operational progress.

For investors watching the small-cap construction space, Shape Australia's growing pipeline, expanding modular division, and new retail capabilities could make the company one to keep on the radar as FY26 unfolds.

The post This ASX small cap could be in a sweet spot for construction demand appeared first on The Motley Fool Australia.

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• After more than doubling over the past year one broker sees more upside for this ASX small-cap stock

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

Most Australians know they should be thinking about superannuation. Far fewer know whether they are actually on track.

Turning 60 is a pivotal moment. It is when the abstract concept of retirement starts to feel tangible — and when the numbers in your super account start to matter in a very real way. With the Age Pension not available until 67, the seven years between now and eligibility need to be funded by something. For most people, that something is super.

So here is the honest question: what does your superannuation balance at 60 need to look like in 2026 to support a comfortable life after work?

The benchmark that matters

The Association of Superannuation Funds of Australia (ASFA) regularly publishes a Retirement Standard — the most widely referenced guide for retirement adequacy in Australia.

According to ASFA's current figures, a comfortable retirement allows you to cover everyday essentials, maintain private health insurance, run a car, enjoy leisure activities, and take domestic holidays annually, with an overseas trip every seven years. That lifestyle requires annual spending of around $54,840 for a single person and $77,375 for a couple.

To sustain that spending through retirement, ASFA estimates you need around $630,000 in super as a single person, or $730,000 combined as a couple, assuming you own your home outright and can draw a partial Age Pension from 67.

At the other end of the scale, a modest retirement — covering basic needs and sitting slightly above the Age Pension — requires between $110,000 and $120,000 for either singles or couples.

Where the average super actually sits

The honest answer is: short of comfortable for most singles, but closer to the mark for couples.

Using data from Rest Super, the average superannuation balance for a 60-64-year-old man in 2026 is estimated at roughly $395,852. For women, it is approximately $313,360. A typical couple at 60, therefore, holds a combined balance of over $700,000 — within reach of the ASFA comfortable retirement target of $730,000.

For singles, however, the gap is more confronting. A sixty-year-old woman with around the average balance needs more than double her current balance to reach the comfortable benchmark. An average amount for a 60 year old man is closer, but still more than $200,000 short.

The gender gap in super balances at this age reflects well-documented structural factors: time out of the workforce for caring responsibilities, higher rates of part-time employment, and lower average lifetime earnings. It is a real and persistent disadvantage.

It is also worth noting a timing effect. Some Australians begin drawing from their super around 60 when they reach preservation age, which can reduce balances in the 60–64 bracket relative to peak accumulation years. That means averages can understate what disciplined savers have actually built.

There is still time to move the needle

Sixty is not the finish line. For most Australians, it is the last meaningful stretch.

Three levers are worth understanding. First, downsizer contributions allow eligible homeowners aged 55 and over to contribute up to $300,000 — or $600,000 for a couple — from the sale of their primary residence directly into super. This is one of the most powerful balance-boosting tools available. Second, personal concessional contributions allow you to add up to $30,000 per year into super from pre-tax income, reducing your tax bill while lifting your balance. Third, even switching to a lower-fee fund or reviewing your investment option allocation can compound significantly over seven years.

The Foolish takeaway

The average superannuation balance at 60 tells a story of genuine progress but also an important reality check if falling short, particularly for singles.

Couples are broadly within reach of a comfortable retirement, especially once the Age Pension is factored in from 67. Singles face a more material gap, and the next seven years represent the best opportunity most will have to close it. The numbers can be confronting at first glance, but they are also actionable. Knowing where you stand is the first step to changing where you end up.

The post Here's what your superannuation balance at 60 needs to be for comfort in 2026 appeared first on The Motley Fool Australia.

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• These are the 10 most shorted ASX shares

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

Many "global" portfolios are really US-heavy.

Even diversified investors often end up with significant exposure to American megacaps. The Magnificent 7 have driven much of the recent market returns, and US companies still dominate broad global indices.

But what if the next wave of AI and growth is broader?

Two themes suggest that the AI opportunity may not be confined to Silicon Valley: India's structural transformation and Asia's dominance in the semiconductor supply chain. For investors looking beyond the US, two ASX-listed ETFs offer targeted exposure to those trends.

India's structural shift

India hasn't been the standout performer among emerging markets this year. In fact, its equity market has lagged broader emerging indices, reflecting a mix of cautious sentiment and concerns around valuations.

Yet beneath the surface, structural forces are building.

India remains one of the fastest-growing major economies in the world. Its young population, rising middle class and ongoing urbanisation create a long runway for domestic demand. At the same time, the government has been pursuing fiscal discipline while maintaining heavy capital expenditure in infrastructure, energy and manufacturing.

That combination matters. Infrastructure spending in transport, power and digital networks lays the groundwork for productivity gains over the next decade. Meanwhile, policy incentives are aimed at strengthening domestic manufacturing, including electronics and semiconductors.

There is also a clear AI angle emerging.

Global technology giants are committing capital to cloud and data centre expansion in India. What was once seen primarily as an outsourcing hub is increasingly being positioned as a regional AI infrastructure base. As hyperscaler spending flows into data centres, computing capacity and digital services, Indian corporates may benefit both directly and indirectly.

For investors, an India-focused ETF such as the Global X India Nifty 50 ETF (ASX: NDIA) provides exposure to 50 of India's largest listed companies. These include leaders in financials, energy, IT services and consumer sectors – businesses that stand to gain if India's domestic growth story continues to strengthen.

It's not a pure-play AI bet. Instead, it's a way to access a large, reform-driven economy that could become increasingly central to the global digital buildout.

Asia's AI supply chain advantage

While the US designs many of the world's most advanced AI chips, much of the physical manufacturing happens in Asia.

As American tech giants ramp up spending on data centres and AI infrastructure, demand is flowing through the semiconductor supply chain. That includes chip fabrication, advanced memory and specialist components – areas where Asian companies dominate.

Across Asia, several countries sit at the centre of the global technology supply chain.

Taiwan and South Korea are home to some of the world's most advanced semiconductor fabrication and memory manufacturing capabilities. These businesses produce the chips and components that power data centres, cloud computing and AI workloads. Meanwhile, parts of China and other Southeast Asian economies host major hardware producers, consumer technology leaders and digital platforms that support the broader ecosystem.

If AI-related data centre spending continues to rise, a meaningful share of that investment is likely to flow through companies based in these markets. An ETF such as the Betashares Asia Technology Tigers ETF (ASX: ASIA) provides diversified exposure across key technology-heavy markets including Taiwan, South Korea and China. 

Rather than relying on a single company, investors gain access to a broad mix of semiconductor firms, hardware manufacturers and digital platform businesses that are deeply embedded in the region's innovation engine.

For investors who feel heavily exposed to US tech, this can provide a complementary angle – capturing the "picks and shovels" of AI beyond American borders.

The Foolish takeaway

Every investment theme comes with risks. Emerging markets can be volatile. Currency movements, geopolitical tensions and regulatory shifts can affect returns. And questions remain about the long-term sustainability of AI-related capital expenditure.

However, AI is increasingly a global infrastructure story, not just a US equity story.

India is investing in the foundations of its next growth phase. Asia is manufacturing the hardware that powers the AI revolution.

For investors building long-term portfolios, broadening exposure beyond the US – through targeted ASX ETFs – could mean participating in a much wider slice of the next decade's growth.

The post If AI isn't just a US story, these 2 ETFs could benefit appeared first on The Motley Fool Australia.

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

Artificial intelligence might grab headlines for disrupting software and productivity, but the real-world buildout is happening in concrete, cables, switchboards, and server racks.

As hyperscalers expand data centres and governments invest in electrification and transport upgrades, billions of dollars are flowing into the physical backbone that powers AI. For investors, that opens the door to companies that build and wire the infrastructure rather than design the software.

Here are three ASX-listed ideas exposed to that trend.

Southern Cross Electrical Engineering 

Southern Cross Electrical Engineering Ltd (ASX: SXE) is an electrical, instrumentation, and communications services provider with exposure to infrastructure, resources, energy, and increasingly, data centres.

In December, the company announced it had secured approximately $90 million in new contracts across data centres and rail. That included works at DigiCo Infrastructure REIT (ASX: DGT)'s SYD1 data centre project in Sydney's inner west, where the facility is being expanded with additional levels and increased power capacity.

The company's subsidiary, Heyday, was awarded design and construct works for low-voltage switchboards, busways, generators, UPS systems, and general power systems. On the rail side, Southern Cross secured electrical and communications works linked to Sydney Metro's St Marys Station Project.

As data centres scale up to handle AI workloads and transport infrastructure modernises, companies like Southern Cross are directly involved in delivering the power and systems that make it all work.

SKS Technologies 

SKS Technologies Group Ltd (ASX: SKS) is another contractor positioned at the heart of the digital infrastructure buildout.

The company provides structured cabling, audiovisual, electrical, and communication solutions, with a growing footprint in data centres. While it is smaller than some industrial peers, its exposure to mission-critical infrastructure projects makes it a leveraged play on data centre expansion.

As AI models become more complex, demand for high-performance computing infrastructure continues to rise. That means more server rooms, more connectivity, and more integrated systems. Contractors like SKS sit at the implementation layer, helping deliver the physical networks and environments that support these facilities.

Rather than betting on which AI platform dominates, SKS offers exposure to the broader theme: more data, more processing power, and more infrastructure to house it.

Global AI Infrastructure ETF 

For investors seeking diversified exposure, the Global X AI Infrastructure ETF (ASX: AINF) provides a different angle.

The ETF is designed to track companies globally that build and enable AI infrastructure. That can include data centre operators, semiconductor manufacturers, networking hardware providers, and power and cooling specialists.

Instead of selecting individual stocks, AINF spreads exposure across the ecosystem supporting AI's growth. That may help reduce single-company risk while still capturing the broader structural theme.

As global investment in AI infrastructure accelerates, including new data centres and upgrades to energy and grid capacity, the ETF offers a way to participate in that buildout through a single ASX-listed vehicle.

The Foolish big picture

AI and electrification are not overnight stories. They are multi-year, potentially multi-decade shifts that require vast physical infrastructure.

While software companies may capture much of the attention, the engineering firms installing switchboards and cabling, and the global suppliers of servers and semiconductors, are integral to the process.

Of course, project-based businesses can face margin pressure and cyclical swings, and thematic ETFs can be volatile. Still, as capital continues flowing into data centres and grid upgrades, investors may keep a close eye on who is being paid to build the backbone of the AI age.

The post 3 ASX shares riding the AI infrastructure buildout appeared first on The Motley Fool Australia.

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Motley Fool contributor Leigh Gant has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Sks Technologies Group and Southern Cross Electrical Engineering. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Yesterday, ASX small-cap Mader Group Ltd (ASX: MAD) gave investors a rollercoaster ride.

After releasing its 1H FY26 result, the share price plunged as much as 15% in early trade before clawing back most of those losses to finish the session down just over 3%. That kind of intraday swing usually signals something dramatic.

In this case, the numbers looked more like business as usual.

What does Mader actually do?

Mader is a global provider of specialised maintenance services to the mining, energy and industrial sectors. It supplies skilled technicians who maintain and repair heavy mobile equipment, often working onsite in remote locations.

The ASX small-cap has built its reputation on a scalable workforce model. Instead of owning large fleets of equipment, Mader deploys highly trained personnel where they are needed. That asset-light structure has historically supported solid margins and strong cash generation when demand is steady.

Its growth strategy has combined organic expansion with selective acquisitions, particularly offshore, as it pushes deeper into North America and other international markets.

A steady set of numbers

According to its 1H FY26 result, Mader delivered net profit after tax of $30.5 million, up 17% on the prior corresponding period

Revenue and earnings continued to track higher, reflecting ongoing demand for maintenance services across its key markets. On the face of it, this was not a half-year marked by collapsing margins or vanishing contracts.

The headline surprise was elsewhere.

Management chose not to declare an interim dividend. Instead, the company said it would defer the first half interim payout to accelerate its pathway to a net cash position and strengthen liquidity.

In its words, this move would bring forward the achievement of its net cash target and support a more aggressive approach to organic and inorganic growth opportunities.

For income-focused investors, the absence of a dividend can feel like a red flag. Markets often react quickly to that signal, even when profitability is still rising.

When sentiment runs ahead of substance

The initial 15% sell-off suggests some investors interpreted the dividend decision as a sign of stress.

Yet the profit line moved in the opposite direction.

This is where markets can occasionally behave less like weighing machines and more like voting machines, at least in the short term. A single headline can overwhelm the broader context, especially when it challenges expectations.

By the close of trade, the share price had recovered much of its losses. That intraday reversal hints that cooler heads may have revisited the actual numbers rather than just the dividend line item.

It is worth remembering that deferring a dividend to reduce debt is not the same as cutting it due to falling earnings. One speaks to capital allocation priorities. The other can point to operational weakness.

Looking beyond the ticker tape

None of this means the market is wrong. Investors may reasonably question whether accelerating toward a net cash position will ultimately translate into higher long-term returns. Execution risk always exists when companies pursue both organic growth and acquisitions.

However, the broader principle remains important.

Short-term price action often reflects emotion and expectations. Underlying business performance, on the other hand, is measured in revenue growth, profitability, cash flow, and balance sheet strength.

For the ASX small-cap, the first half of FY26 showed rising net profit and a strategic decision around capital management.

Whether the market continues to view that through a sceptical or supportive lens will likely depend on what the company delivers next.

For long-term investors, moments of volatility can be a reminder to focus less on a single day's price swing and more on what the business itself is actually doing behind the scenes.

The post The market might be pricing this growing ASX small-cap like it's broken appeared first on The Motley Fool Australia.

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

Reporting season has been anything but calm.

In recent weeks, we have seen sharp moves across the market. High-quality software names such as WiseTech Global Ltd (ASX: WTC) and Pro Medicus Ltd (ASX: PME) have pulled back heavily on the back of results and AI disruption fears. Meanwhile, banks like ANZ Group Holdings Ltd (ASX: ANZ) and miners such as BHP Group Ltd (ASX: BHP) have pushed toward, or beyond, new highs.

If you are focused on individual stock picking, this kind of environment can feel exhausting.

One week, you are up double digits. The next, a headline wipes out months of gains.

And yet, broad-based ETFs tracking large indices have largely ticked along in the background.

That contrast says something important.

Volatility is normal

Individual shares can be wonderful wealth builders. They can also be wildly volatile.

Earnings misses, guidance tweaks, margin compression, AI threats, commodity prices, interest rates – each factor can send a single stock sharply higher or lower in a matter of hours.

For many investors, especially those building wealth alongside a career and family, that level of intensity is not sustainable.

A diversified ETF portfolio, on the other hand, spreads risk across dozens or hundreds of companies. Instead of betting on one narrative, you own the market.

That shift in mindset can make all the difference.

Start with the core: broad market exposure

A simple starting point is broad exposure to Australia and the US.

For example, the Vanguard Australian Shares Index ETF (ASX: VAS) tracks the largest companies on the ASX. It gives investors exposure to banks, miners, healthcare, industrials and more in one trade.

Similarly, the iShares S&P 500 ETF (ASX: IVV) provides access to 500 of the biggest businesses in the United States. That includes global leaders across technology, consumer brands, healthcare and financials.

Together, these two ETFs give exposure to thousands of billions of dollars' worth of productive businesses.

When one sector stumbles, another often picks up the slack.

This kind of structure is consistent with the idea of building a portfolio you can "sleep through a market crash" with.

Add resilience, not complexity

Some investors go a step further and add diversification beyond equities.

That could mean including a global ex-US ETF, an emerging markets ETF, or even a bond-focused ETF to dampen volatility.

The goal is not to perfectly optimise returns.

The goal is robustness.

A robust portfolio is one that:

• Survives bear markets
• Reduces the temptation to panic sell
• Encourages long-term contributions
• Frees up your mental energy

The irony is that simplicity often increases durability.

The more moving parts you have, the more decisions you must get right.

Discipline beats drama

The biggest edge most investors have is not stock selection.

It is behaviour.

An ETF-based approach shifts the focus away from short-term noise and toward:

• Consistently investing surplus cash
• Progressing in your career
• Spending less than you earn
• Avoiding costly emotional decisions

You are no longer trying to outguess the next earnings update from a single company.

You are participating in the long-term growth of global capitalism.

Over decades, markets have rewarded patience and diversification. They have punished overconfidence and reactionary moves.

Staying in the game matters most

There is nothing wrong with owning a handful of high-conviction shares if you enjoy research and accept volatility.

However, if headlines about AI disruption, interest rates or geopolitics are causing sleepless nights, it may be worth reassessing your structure.

A low-cost, diversified ETF portfolio may not be exciting.

It may not produce brag-worthy weekly gains. Yet, it can help you stay invested through good times and bad.

And in investing, staying in the game is often the real superpower.

The post The sleep easy ETF portfolio to survive market crashes appeared first on The Motley Fool Australia.

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Motley Fool contributor Leigh Gant has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global 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 WiseTech Global. The Motley Fool Australia has recommended Pro Medicus 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.

Can you retire in 10 years?

For many Australians in their mid-50s, that question feels uncomfortably close to home. The numbers tell an important story.

According to recent data, the average superannuation balance for Australians aged 55 sits well below what most experts consider necessary for a "comfortable" retirement at 65. Meanwhile, industry benchmarks suggest a couple retiring at 65 may need well over $600,000 in super to fund a comfortable lifestyle, depending on spending expectations and eligibility for the Age Pension.

That gap is the simple number most Australians miss.

It is not just about how much you have today. It is about how much your capital can grow over the next decade.

The 10-year compounding window

Over the past 30 years, the Australian share market has delivered average annual returns of around 9.3%, including dividends. That does not mean markets rise by 9.3% every year. Some years are strong, others are deeply negative. However, over long periods, that average has held remarkably steady.

If you are 55 today and planning to retire at 65, you still have a full decade for your capital to compound.

For example, a $400,000 super balance growing at an average rate close to long-term market returns could look very different after 10 years of compounding. Even modest additional contributions during this period can meaningfully lift the final balance.

The key insight is this: the last 10 years before retirement are not a time when growth stops mattering. In many cases, they matter most.

The sequencing risk trap

There is, however, a major risk that often goes overlooked.

It is known as sequencing risk.

This refers to the danger of experiencing poor market returns in the years immediately before or after retirement. A sharp downturn just as you begin drawing income can have a disproportionate impact on how long your capital lasts.

This is why many investors think carefully about how they transition from growth to income. It is rarely an all-or-nothing decision.

Strategies such as dollar-cost averaging, where investments are made progressively over time rather than in one lump sum, are often discussed as a way to smooth out entry points and reduce the impact of short-term volatility. While no strategy removes market risk entirely, spreading investments over time can help investors navigate the natural ups and downs of markets and potentially stay closer to long-term average returns.

Growth first, income second

One of the most common mistakes is focusing too early on income and yield, especially when retirement is still years away.

For many Australians at 55, the priority over the next decade may still be capital growth. As retirement approaches, portfolios can gradually shift toward more income-oriented assets, depending on personal circumstances, risk tolerance, and access to other income sources.

The simple number that matters is not just your current super balance.

It is the number you are likely to have at 65.

That difference depends on three things:

• Your starting balance
  
• Your contribution rate over the next decade
  
• Your average return over that period
  

Retirement in 10 years is not simply about cutting spending or hoping the Age Pension fills the gap. It is about making deliberate decisions during what could be the most powerful compounding phase of your financial life.

For Australians approaching their mid-50s, the question is not whether retirement is close.

It is whether the next 10 years are being used wisely.

The post Is your superannuation investing on track to retire in 10 years? appeared first on The Motley Fool Australia.

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• Buy, hold, sell: Cochlear, South32, and Westpac shares
• These are the 10 most shorted ASX shares

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

Building passive income from ASX shares does not require a six-figure portfolio.

In fact, $50,000 is enough to lay the foundations of a simple dividend strategy that blends growth with income. The key is balance. Chasing the highest yield alone can expose investors to unnecessary risk, while focusing only on growth may delay income generation.

A blended approach using exchange-traded funds (ETFs) could provide both.

Step one: Diversify exposure to dividends and growth

One way to structure a starter portfolio is to split it into two parts. The first part focuses on broad market exposure.

For example, an ETF tracking the the top Australian businesses such as the Vanguard Australian Shares Index ETF (ASX: VAS) provides exposure to many of Australia's largest dividend-paying companies. Banks, miners, healthcare leaders, and industrials all sit inside the index. Over time, this gives investors access to both capital growth and dividend income.

Pairing that with an S&P 500 Index (SP: .INX) ETF, like the iShares S&P 500 AUD ETF (ASX: IVV), adds global exposure. The US market includes world-leading companies across technology, consumer goods, and financial services. While US dividend yields are typically lower than Australia's, the long-term growth profile has historically been strong.

An illustrative allocation might look like:

• $20,000 in an ASX 300 ETF
  
• $15,000 in an S&P 500 ETF
  

This portion of the portfolio focuses on broad diversification and long-term capital growth. Dividends are part of the return, but not the only driver.

Step two: Dedicated dividend exposure

The second portion of the portfolio can lean more deliberately toward income.

One way investors do this is by allocating capital to high-dividend-yield ETFs. For example, Vanguard Australian Shares High Yield ETF (ASX: VHY) focuses on Australian companies with comparatively higher forecast dividend yields. The portfolio typically includes large, established businesses such as BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA), while still applying diversification rules to avoid being overly concentrated in one sector.

High-yield exposure can lift the portfolio's overall income profile. However, it also means being mindful of sector bias. Australian dividend ETFs often have heavier exposure to banks and resources, which can introduce cyclical risk.

To complement this, some investors consider adding an income-focused bond ETF such as VanEck Emerging Income Opportunities Active ETF (ASX: EBND).

Bond income behaves differently from share dividends. Instead of relying on corporate profits, it is driven by interest payments from fixed-income securities. While emerging market bonds carry their own risks, including currency and credit risk, they can provide an alternative income stream that is not directly tied to share market performance.

For a starter passive income portfolio, that difference matters. If equity markets experience volatility, bond income may help smooth overall returns and reduce reliance on dividend payments alone.

An illustrative allocation for the income sleeve could look like:

• $10,000 in a high dividend yield ETF
  
• $5,000 in a bond income ETF

The compounding effect matters

The real power of a starter dividend portfolio lies in reinvestment.

If dividends are reinvested and the portfolio continues to grow through additional contributions, the income stream can expand over time. Australian shares have historically delivered long-term returns that combine both price appreciation and dividends, and reinvested income has been a major driver of total return.

A $50,000 portfolio generating income today could look very different in a decade if contributions and compounding continue.

Income and growth do not need to be opposites

One of the biggest misconceptions about dividend investing is that investors must choose between income and growth.

A blended ETF approach allows for both.

Broad market exposure provides participation in Australia's and the United States' largest companies. Dedicated dividend ETFs can tilt the portfolio toward higher income.

For investors starting with $50,000, the goal may not be to replace a salary immediately. Instead, it may be to build a structured, diversified foundation that can grow alongside an expanding passive income stream over time.

The post Here's a $50,000 starter dividend portfolio delivering passive income appeared first on The Motley Fool Australia.

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• 3 of the best ASX ETFs for income investors in 2026
• A simple 3-ETF portfolio I'd use to build long-term wealth

Motley Fool contributor Leigh Gant has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended iShares S&P 500 ETF. The Motley Fool Australia has recommended BHP Group, 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.

Gold and silver prices tumbled sharply overnight after reports emerged that Russia is considering a return to the US dollar as part of a broader economic partnership.

According to reports, the proposal could involve Russia pivoting back toward the US dollar settlement system in exchange for closer economic cooperation with the United States.

Markets reacted swiftly.

Silver prices fell nearly 10% in around 30 minutes, dropping back below US$76 per ounce. Gold also slid heavily, shedding roughly 3.5% in 15 minutes and falling back under US$5,000 per ounce.

Across global markets, as much as US$3.2 trillion in value was wiped out within an hour as investors rapidly repositioned portfolios.

What is being proposed?

While details remain limited, the suggested framework includes:

• Cooperation between the US and Russia on fossil fuel production
• Joint investment in natural gas infrastructure
• Partnerships in offshore oil and critical raw materials
• Preferential treatment for US commercial interests
• Russia's return to US dollar-based trade settlement

In simple terms, the proposal centres on Russia moving away from efforts to reduce reliance on the US dollar and instead re-engaging with the American financial system.

That potential shift is what appears to have rattled precious metals markets.

Why would this hit gold and silver?

Gold and silver are often viewed as hedges against uncertainty.

Investors typically buy precious metals when they are worried about geopolitical instability, currency debasement, or fractures in the global financial system. In recent years, one of the dominant narratives has been "de-dollarisation" – the idea that major economies, including Russia and members of the BRICS bloc, were gradually shifting away from the US dollar in trade and reserves.

That narrative has helped underpin demand for gold in particular, as central banks increased bullion purchases and investors sought alternatives to the US dollar.

If Russia were to pivot back to the US dollar system, it would signal a potential reversal of that trend.

In that scenario, fears of a fragmented global currency system may ease. A stronger US dollar outlook can also weigh on gold and silver prices, as both metals are priced in US dollars and tend to move inversely to it.

In short, if confidence in the US dollar rises, the immediate need for alternative stores of value can diminish. That dynamic helps explain the sharp and rapid selling in precious metals following the reports.

A market moving in real time

The speed of the move highlights how sensitive markets are to shifts in global power structures and currency alliances.

Gold falling more than 3% in minutes and silver plunging close to 10% in half an hour underscores just how crowded some of these thematic trades may have become.

For now, what we have are reports of discussions and a potential framework. No formal agreement has been announced.

But the reaction shows that sentiment weighs heavily towards any signs that the global financial architecture could be shifting again.

Whether this proposal advances or fades, the world will be watching closely. The implications stretch far beyond gold and silver prices and into energy markets, currency dynamics, and the broader balance of economic power.

The post Why did the silver and gold price just fall so sharply? appeared first on The Motley Fool Australia.

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Motley Fool contributor Leigh Gant has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 more than a decade, US stocks have done the heavy lifting for global equity returns. 

From Big Tech dominance to relentless earnings growth, American markets have rewarded investors who stayed the course.

However, thoughtful investors know markets move in cycles. Leadership changes. And when one region stumbles or simply delivers more modest returns, others can quietly step into the spotlight.

That is where emerging markets may come back into focus and why this ASX ETF could be an opportunity if US stocks disappoint.

A strong but narrowing US run

There is no denying the strength of the US markets in recent years. In 2025, American shares delivered a better-than-average year, supported by resilient consumer demand, strong corporate balance sheets, and the obvious enthusiasm for artificial intelligence and productivity gains. ETF investors did well, with total returns, including dividends, of 17.88% for the 2025 calendar year.

However, that performance has also led to concentration risk. A small number of mega-cap companies now account for a significant share of index returns. Valuations were elevated by historical standards, and expectations for continued earnings growth are high in 2026.

If those expectations are merely met — rather than exceeded — future returns may be more subdued.

This does not mean US stocks are destined to fall. It simply raises a reasonable "what if" question for long-term investors building diversified portfolios.

Emerging markets quietly outperformed in 2025

While US stocks captured headlines, emerging markets delivered a quietly impressive year in 2025.

Across Asia, Latin America, and parts of Eastern Europe, equity markets benefited from easing inflation pressures, stabilising interest rates, and improving economic momentum. In several regions, earnings growth outpaced developed markets, helped by younger populations, rising consumption, and improving productivity.

Importantly, emerging markets entered 2025 from a position of relative valuation discount after years of underperformance. That combination — improving fundamentals and lower starting valuations — helped produce returns that rivalled, and in some cases exceeded, those of the US.

Why 2026 could keep the theme alive

Looking ahead to 2026, several structural factors continue to support the emerging markets case.

Many emerging economies now have healthier balance sheets than in past cycles, with higher foreign exchange reserves and more flexible currencies. Supply chains are also diversifying, with manufacturing, energy, and technology investment spreading beyond traditional developed markets.

At the same time, demographic trends remain favourable. Growing middle classes across Asia and parts of Latin America continue to drive demand for housing, healthcare, financial services, and technology.

None of this guarantees another strong year. But it does suggest emerging markets remain relevant for investors thinking beyond a single economic cycle.

One simple way to gain exposure

For Australian investors, the iShares MSCI Emerging Markets ETF (ASX: IEM) offers a straightforward way to access this theme.

Rather than betting on individual countries or companies, the ETF provides broad exposure across dozens of emerging economies and hundreds of businesses. That diversification matters in a region where political, regulatory, and economic conditions can change quickly.

For long-term investors, it can act as a complement to US-heavy portfolios, helping reduce reliance on a single market driving returns.

Foolish Takeaway

This is not a call to abandon US stocks. They remain home to some of the world's strongest businesses.

However, if US markets deliver more modest returns in the years ahead, emerging markets could matter a lot more than many investors expect. Having diversified exposure in place before leadership changes is often easier than reacting after the fact.

The post If US stocks disappoint, this overlooked ASX ETF could matter a lot more appeared first on The Motley Fool Australia.

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• New to investing? Start with ASX ETFs and quality ASX stocks

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.

Periods of market volatility often feel uncomfortable. 

Entire sectors can fall out of favour, sentiment can turn quickly, and even high-quality ASX shares can be swept up in the sell-off. 

That has certainly been the case for many software businesses over recent months, as concerns around valuation and the disruptive potential of artificial intelligence have weighed heavily on the sector.

Against that backdrop, some well-regarded names are now trading close to their 52-week lows. Two that stand out are TechnologyOne Ltd (ASX: TNE) and Pro Medicus Ltd (ASX: PME). Both have seen their share prices fall sharply from last year's highs, despite continuing to report solid underlying business performance.

Technology One

Technology One is a long-established Australian software company that provides enterprise resource planning (ERP) solutions to government, education, and large corporate customers. Its software helps organisations manage core functions such as finance, human resources, and asset management, with a growing focus on cloud-based delivery.

The company has spent more than a decade transitioning customers from on-premise software to its proprietary cloud platform. This shift has driven more predictable, recurring revenue and has improved long-term visibility over cash flows. Technology One has also built a reputation for disciplined execution, consistently delivering revenue growth and strong margins.

Despite these strengths, the Technology One share price is down more than 30% from its peak and remains close to recent 52-week lows. Like many software businesses, it has not been immune to a broader de-rating of the sector. Investors have become more cautious about growth stocks, particularly those trading on higher earnings multiples, even when fundamentals remain intact.

For long-term investors, the key question is whether this pullback reflects a deterioration in the business, a reset in valuation expectations across the market or a great buying opportunity.

Pro Medicus 

Pro Medicus operates in a very different niche, but has faced similar share price pressure. The company develops high-end medical imaging software used by hospitals and healthcare providers around the world. Its flagship Visage platform enables radiologists to view and analyse large imaging files quickly and efficiently, supporting better clinical decision-making.

Over recent years, Pro Medicus has delivered exceptional growth, driven by major contract wins in the United States and ongoing global expansion. The business is capital-light, highly profitable, and benefits from long-term customer contracts that create sticky, recurring revenue streams.

Even so, Pro Medicus shares are down more than 40% from last year's highs and are hovering near 52-week lows. Part of this reflects the company's premium valuation following a long period of outperformance. Broader concerns around healthcare spending cycles and the sustainability of high growth rates have also weighed on sentiment.

As with Technology One, the market is questioning how much investors should be willing to pay for quality growth, even when long-term drivers remain in place.

A classic quality-versus-sentiment test

History shows that some of the best long-term opportunities can emerge when high-quality businesses are caught in sector-wide sell-offs. At the same time, not every falling share price represents value. Sometimes lower prices signal that expectations were too optimistic, or that competitive and structural challenges are emerging.

For investors watching Technology One and Pro Medicus, the task is to separate short-term noise from long-term reality. Are these share prices reflecting temporary pessimism toward software stocks, or a more permanent shift in how the market views growth and valuation?

Either way, periods like this can be a useful reminder. When entire sectors get pummelled, it is often wise to revisit proven businesses, reassess the fundamentals, and decide whether today's prices are offering opportunity — or a warning worth heeding.

The post 2 quality ASX shares near 52-week lows worth watching appeared first on The Motley Fool Australia.

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Motley Fool contributor Leigh Gant has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. 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.

If you're trying to beat the S&P/ASX 200 Index (ASX: XJO), it helps to be honest about the playing field.

Australia's largest companies like Commonwealth Bank of Australia (ASX: CBA) and BHP (ASX: BHP) are heavily researched, widely owned, and constantly scrutinised by analysts and institutions. By the time an opportunity becomes obvious in the top 200, it is often already reflected in the share price.

That doesn't mean outperformance is impossible. It just means investors looking for stronger returns may need to broaden their search. For many, that search leads to ASX small-caps.

Why small caps can offer more opportunity

The ASX small-cap universe is far larger and more diverse than the headline indices suggest. It includes emerging leaders, niche operators, turnaround stories, and businesses still flying under the radar.

This part of the market is also less efficiently priced. Many small companies are followed by few analysts, and institutional ownership is often limited. As a result, share prices can lag behind fundamentals — creating potential opportunities for patient investors.

Small-caps also tend to respond more dramatically to changes in earnings expectations, sentiment, or economic conditions. While that volatility can be unsettling, it is also what creates the possibility of outsized gains.

Rotation can leave quality businesses behind

Markets move in cycles. Capital rotates between sectors, styles, and company sizes as conditions evolve.

When investors crowd into popular themes, other areas of the market can be left behind. ASX small-caps often feel this effect more acutely, with entire segments sold down regardless of individual company performance.

At times, this can result in high-quality businesses trading at prices that reflect pessimism rather than reality. For investors willing to look past short-term noise, rotation can open the door to opportunities that are harder to find in larger, more stable stocks.

Depressed valuations can support future returns

After several years of lagging large caps, parts of the small-cap market have been trading on noticeably lower valuations.

That does not guarantee a rebound. Markets can stay out of favour longer than expected. Still, when expectations are already low, companies often need less "good news" to surprise on the upside.

If earnings stabilise or improve, valuations can recover alongside profits. Over time, that combination has the potential to support stronger returns than those available in more fully priced parts of the market.

Small companies can change faster

Large companies can grow, but their size often limits how quickly they can transform.

Small-caps, by contrast, can materially change their trajectory in a short period. That might involve reaching profitability, expanding into new markets, securing a major contract, or strengthening the balance sheet.

These inflection points tend to have a greater impact on smaller businesses, which is why returns across the small cap universe are far more dispersed. Some companies struggle. Others go on to deliver substantial gains as their prospects improve.

M&A activity can act as a tailwind

Another factor supporting interest in ASX small caps is mergers and acquisitions.

When organic growth is hard to find, larger companies often look to acquisitions to expand earnings. Smaller, well-run businesses can become attractive targets — particularly when valuations are reasonable and growth elsewhere is scarce. Just look at some of 2025's small cap takeover winners like RPM Global (ASX: RUL).

Foolish takeaway

ASX small-caps are not without risk.

They can be more volatile, less liquid, and more sensitive to economic shocks than large caps. That is the price investors pay for the potential upside.

For many, the question isn't whether small-caps are better than large-caps. It's whether small-caps can play a role in a diversified portfolio — particularly for investors seeking opportunities beyond the most crowded parts of the market.

For investors willing to think long term and accept volatility, ASX small-caps could be where the next wave of returns comes from.

The post ASX small-caps could be where the next wave of returns comes from appeared first on The Motley Fool Australia.

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