Over the past few years, or even perhaps decades, passive investing has become one of the most widely-implemented strategies when it comes to building wealth on the stock market. ASX investors simply love index funds, with the ease of access, cheap management fees, and hands-off approach resonating with many Australians.

In years gone by, there were only a handful of index funds available to Australian investors, making the choice, if one had decided to go down the index fund road, easy. However, that is not really the case today. If you are searching for index funds on the ASX, there are now an overwhelming number of options one could go for. This situation, whilst good for the discerning investor, can make life tricky for those just wanting a set-and-forget strategy.

With that in mind, today, let's go through three ASX index funds that I think amount to the best choices our market has to offer a passive investor in 2026.

Three top ASX index funds for passive investing in 2026 and beyond

First up, we have the BetaShares Australia 300 ETF (ASX: A300). This ASX index fund tracks the largest 300 stocks listed on the Australian share market. That includes everything from Commonwealth Bank of Australia (ASX: CBA) and Telstra Group Ltd (ASX: TLS) to Coles Group Ltd (ASX: COL) and Ampol Ltd (ASX: ALD).

Like most index funds (and the other two we'll discuss in a moment), this fund is weighted by market capitalisation. That means the larger the company, the larger its slice of the index fund pie.

Full disclosure, I own an S&P/ASX 300 Index (ASX: XKO) fund, but it's not A300. This fund only launched in August of last year, and I have held the Vanguard Australian Shares Index ETF (ASX: VAS) for many years. But A300 would be my choice for new investors, simply because it charges a lower management fee of 0.04% per annum.

Our next fund worth considering is the iShares S&P 500 ETF (ASX: IVV). This fund is similar in nature to A300. However, instead of holding the ASX's 300 largest stocks, it holds the 500 largest companies in the American markets. That includes big tech titans like Nvidia, Tesla, Amazon, and Microsoft, as well as other American companies such as ExxonMobil, Coca-Cola, Walmart, and General Motors.

I think most ASX investors will benefit from expanding their portfolios beyond Australia's borders, and IVV holds many of the world's best companies. It also charges a management fee of 0.04% per annum.

Last but not least

Finally, investors may wish to consider the Vanguard MSCI Index International Shares ETF (ASX: VGS). As its name implies, this ASX index fund represents access to a number of international stock markets. That includes the US, but also Britain, Canada, Japan, Spain, Israel, Singapore, and many others. In addition to IVV's top holdings (which VGS largely shares), this fund's portfolio includes stocks such as Nestle, Toyota, AstraZeneca, and Shell.

If you wanted a US-centric index fund that also grants exposure to a diversified supplementation of advanced economies' markets, VGS is a fabulous option to consider. This ETF charges a management fee of 0.18% per annum.

The post What are the ASX's top 3 index funds for passive investing? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Amazon, Coca-Cola, Microsoft, and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, AstraZeneca Plc, Microsoft, Nvidia, Tesla, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended General Motors and Nestlé. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Amazon, Microsoft, Nvidia, Vanguard Msci Index International Shares 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.

It was a rather disappointing end to the short trading week for the S&P/ASX 200 Index (ASX: XJO) this Thursday. After initially starting strong this morning, investors took a major step back when US President Donald Trump addressed the nation at midday (our time).

Trump's declaration that the war with Iran would go on for another "two to three weeks" was enough to start the selling. By the time the markets closed up for the Easter break, the ASX 200 had slumped by a nasty 1.06%. That fall leaves the index at 8,579.5 points as we head into the long weekend.

This volatile session for Australian investors follows a far more optimistic morning up on the American markets (let's see what happens tomorrow over there).

The Dow Jones Industrial Average Index (DJX: .DJI) had a comfortable time of it, rising by 0.48%.

Meanwhile, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was even more enthusiastic, gaining 1.16%.

But let's return to the local markets now and check out how the various ASX sectors dealt with today's whipsawing trading conditions.

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

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group and Woolworths Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Looking at the WAM Capital Ltd (ASX: WAM) share price today, it's likely that one particular metric might jump out at you. That would be this listed investment company (LIC)'s dividend yield. At the time of writing, WAM Capital shares are going for $1.69 each. At this pricing, WAM Capital is trading with a trailing dividend yield of 9.17%.

Let that sink in for a moment. We have a stock that is ostensibly offering to return $9 a year in cash flow for every $100 invested. That's almost twice what you could expect from a savings account or term deposit right now. And more than twice what other popular dividend stocks, ranging from Coles Group Ltd (ASX: COL) to Commonwealth Bank of Australia (ASX: CBA) and Telstra Group Ltd (ASX: TLS), currently have on the table.

So, does that 9% yield make WAM Capital shares a screaming buy for income-hungry investors, or investors more generally?

Well, as you might suspect, the answer is definitely not an unambiguous 'yes'. Whenever the market is offering a stock with a 9% yield, one should always exercise a high degree of caution. After all, if that kind of yield was a sure thing, investors would flock to its shares, pushing up the price and lowering the running yield.

That is clearly not happening with WAM Capital, so we must ask ourselves why.

Does a 9% yield make WAM Capital shares a screaming buy?

Well, our first red flag is the WAM Capital share price itself. This is not what one might call a high flyer. At the current share price, this LIC has lost more than 24% of its value over the past five years. In fact, investors who bought WAM Capital shares ten years ago would also be down by about 25% from their initial investment.

This indicates to us that WAM Capital pays out all of its profits, and then some, as dividends.

WAM Capital's dividends also look to be on shaky ground. Over 2025, this company paid an annual dividend of 15.5 cents per share. As of the company's most recent update, it appears that WAM Capital has only 21.1 cents per share in its 'profit reserve', which it uses to fund its dividends. That means WAM Capital can only afford another 12-18 months of payouts if this reserve isn't topped up.

So, it seems the market has weighed up all this and decided there is a high risk of lower dividends from WAM Capital going forward. This company could well be a reliable source of dividend income for investors who buy today. But given the company's poor share price performance over many years and its near-empty profit reserves, investors should at least consider the not-insignificant risks of this stock.

The post Thinking of buying WAM Capital shares for the 9% dividend yield? Read this first appeared first on The Motley Fool Australia.

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

ASX stocks that offer investors the prospect of both growth and income are a rare breed on the ASX. I think MFF Capital Investments Ltd (ASX: MFF) is one such share though.

MFF Capital is a listed investment company (LIC) that has been on the ASX for almost two decades. Despite a lack of publicity and fanfare, it has produced some exciting returns for investors ever since its listing.

Today, its sharers are looking compelling. MFF currently sports a trailing dividend yield of 4.09% (as of yesterday's closing price). So let's discuss whether this ASX stock is the best growth and income play on the ASX.

Like most LICs, MFF owns and manages an underlying portfolio of investments. In this case, that underlying portfolio consists mostly of US stocks, with some other international companies thrown in. MFF has always followed a Warren Buffett-insprired approach to investing. Its holdings tend to be mature, dominant companies that display signs of possessing a moat, or intrinsic competitive advantage that helps it stay ahead of competition. These companies are purchased at compelling prices, and held indefinitely for the benefit of MFF shareholders.

Some of MFF's largest positions have been in its portfolio for many years. They include the likes of Amazon, Mastercard, Alphabet, Visa, American Express, and Microsoft.

This strategy has paid off for MFF's long-term investors. By my calculations, investors have enjoyed an average total return (share price growth plus dividends) of about 12.1% per annum over the past ten years, and 15.05% per annum over the past five. On the latter metric, investors have received an average share price growth rate of 11.7% per annum.

Growth and income from this top ASX stock?

So we know MFF offers plenty of growth potential. But what about income?

Well, MFF has that in spades too, and is more potent that even its starting 4%-plus yield would indicate. As I've discussed before, MFF is one of the ASX's best dividend growth stocks. To prove it, let's go back through this ASX stock's recent dividend history. Back in 2017, MFF paid out 2 cents per share in fully-franked dividends to its shareholders. By 2021, the company was up to forking out 7.5 cents per share. Last year, it had hit 17 cents per share.

In 2026, the company has told investors to expect a total of 21 cents per share, up 23.5% from just 2025 levels if so. The trajectory of 2 cents per share to 21 cents per share in 2026 would come to an compounded annual growth rate of 26.4% per annum.

If this blistering dividend growth rate continues, it will be exceptionally lucrative for long-term investors.

All in all, I regard MFF Capital as one of the ASX's best performers in recent years, and a stellar investment, period. I am happy to hold it in my own portfolio, and equally happy to recommend it to any investor who is searching for growth and income today.

The post This 4% ASX stock is my top pick for growth and income in 2026 appeared first on The Motley Fool Australia.

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American Express is an advertising partner of Motley Fool Money. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, American Express, Mastercard, Mff Capital Investments, Microsoft, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Mastercard, Microsoft, and Visa. The Motley Fool Australia has recommended Alphabet, Amazon, Mastercard, Mff Capital Investments, Microsoft, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) enjoyed a spectacular rebound this Wednesday, surging back to life after what had been a lacklustre and indecisive few trading days. The ASX 200 spent all day firmly ahead of where it closed yesterday and ended up closing with a sizeable 2.24% gain. That leaves the index at 8,671.8 points.

This jubilant hump day session for ASX shares comes after an even more euphoric morning on the American markets.

The Dow Jones Industrial Average Index (DJX: .DJI) was off to the races, gaining 2.49%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) put the turbocharger on though, exploding 3.83% higher.

Let's get back to the local markets now and see how today's gains filtered down into the different ASX sectors.

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

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Motley Fool contributor Sebastian Bowen 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 Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Late last month, amid all of the chaos of the Iran war, something extraordinary happened on the ASX. More specifically, with Telstra Group Ltd (ASX: TLS) stock.

On 24 March, shares of this ASX 200 telco hit a new 52-week high. Not only was it a new 52-week high, but the highest Telstra stock has traded at in many years. Yep, last Tuesday saw Telstra shares top $5.37 each. We haven't seen that kind of pricing on this telco since at least early 2017. That means Telstra was at a nine-year high a week ago.

Today, Telstra stock has cooled off a little, but is still at $5.32 at the time of writing. That puts the company at an impressive year-to-date gain of 9.45% for 2026, and up 24.8% over the past 12 months.

Telstra is a strong and mature ASX 200 blue-chip stock. But gains of this magnitude prompt us to wonder whether the telco is still a good deal at $5.37 a share. Or indeed, at today's $5.32.

So let's talk about that.

Is Telstra stock a buy at $5.37?

That's a tough question for investors to consider. Telstra, as we've already established, is a high-quality company that dominates its sector and shows characteristics of possessing a wide economic moat.

It is also growing at a slow-but-steady pace. The company's most recent earnings, released in February, showed Telstra growing its reported earnings per share (EPS) by 11% to 9.9 cents, as well as its underlying net profits after tax by 10% to $1.2 billion.

Investors have to consider whether Telstra's future growth trajectory is enough to justify its current share price, though. At today's price, Telstra stock trades at a price-to-earnings (P/E) ratio of 26.6.

That's not ridiculous, but it's arguably not cheap either. For comparison, that's about the same earnings multiple that Google-owner Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) is currently at.

But what about Telstra stock's dividends? After all, many investors just buy this telco for its famously large and dependable income cheques.

Well, Telstra's galloping share price over recent months has indeed come with the unfortunate consequence of reducing Telstra's dividend yield. Investors were perhaps used to a yield well over 4% until Telstra went on this stock price surge. Today, the company is trading with a yield of about 3.8%.

That's certainly not as attractive as it once was. Particularly so if we consider that one can obtain a safer 5% yield with a cash investment like a term deposit these days.

Brokers still call buy

Saying that, some ASX brokers still think Telstra is a buy today. Last week, my Fool colleague covered the outperform rating that Macquarie's brokers gave Telstra shares. Macquarie thinks the recently announced price increases on Telstra's mobile offerings bode well for the company's future and dividends. The broker has set a 12-month stock price target of $5.64 per share for Telstra.

Let's see if Macquarie is on the money there.

The post Is Telstra stock a buy at $5.37 a share? appeared first on The Motley Fool Australia.

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

The war that the United States of America and Israel launched against Iran at the start of this month has comprehensively changed the investing landscape. Many ASX shares that were previously expecting to have a relatively smooth 2026 are now wargaming the supply of their most basic inputs – energy. Investors with ASX share portfolios would be forgiven for wondering how to chart a course forward. 

Of course, the energy shock that has resulted from this war is still reverberating through the global economy. We don't yet know whether the Strait of Hormuz will be closed for another day or another year. 

What we do know is that things will be different, in both the Australian and global economies, for a while.

So how do we account for these differences in our own ASX share portfolios?

Well, I think there are three things investors can do.

Three ways to position an ASX share portfolio for 2026

Firstly, ASX investors can focus on finding and owning shares of companies that possess a moat, or an intrinsic competitive advantage that can protect them from inflation, recessions, and other potential economic maladies in 2026. 'Moats' are a concept initially coined by legendary investor Warren Buffett, who only tends to buy companies that he thinks possess at least one wide moat. This could be a cost advantage, a powerful brand that inspires loyalty, or else making a good or service that investors find difficult to avoid buying.   

Companies that possess these moats are usually the most resilient in the markets. They tend to survive the bad times and thrive when the global economy is booming.

Secondly, investors can take advantage of higher interest rates. Few Australians get excited when the Reserve Bank of Australia (RBA) lifts rates, as it did at the start of this month. But while higher rates make loans and mortgages more expensive to service, they also increase the returns of cash and fixed-interest investments. With term deposit rates now above 5%, there's nothing wrong, at least in my view, with parking your surplus cash in the bank rather than the share market if you are worried about where things might go next. After all, the interest rate on a term deposit is completely safe, unlike an investment in any ASX share.

This time it's different?

Finally, and this might be tough to hear, investors might want to prepare for a rough 2026 by lowering their expectations. The past few years have been exceptionally lucrative for stock market investors. To illustrate, as of 28 February, the iShares Core S&P/ASX 200 ETF (ASX: IOZ) has averaged 12.15% per annum over the past three years, and hit 16.2% for the preceding 12 months. Those are uncommonly high returns for a simple ASX index fund. The longer-term average sits closer to 8% per annum.

I'm a firm believer in the enduring tendency for investing metrics to regress to their mean. As such, I wouldn't be surprised to see a return of well below 12% for the ASX 200 in 2026, and possibly in 2027 and beyond as well.

The post The Iran war has changed investing. Here are 3 ways to position an ASX share portfolio appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 was a wild, but ultimately positive Tuesday for the S&P/ASX 200 Index (ASX: XJO) today. Initially, investors were not in a good mood this morning. But that sentiment changed just before lunchtime and held for the rest of the afternoon as investors pushed the market higher. By the time the closing bell rang, the ASX 200 had recorded a 0.25% rise. That leaves the index at 8,481.8 points.

This optimistic session for the local markets followed a mixed start to the American trading week over on Wall Street in the early hours of this morning.

The Dow Jones Industrial Average Index (DJX: .DJI) managed to snatch a win from the jaws of defeat, rising by 0.11%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) wasn't so lucky, though, falling 0.73%.

But let's return to Australian shares now and take stock of how today's indecisiveness affected the various ASX sectors this session.

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

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Motley Fool contributor Sebastian Bowen 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 SiteMinder, Temple & Webster Group, and Xero. The Motley Fool Australia has positions in and has recommended SiteMinder and Xero. The Motley Fool Australia has recommended Generation Development Group and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It's always exciting when a big-name company conducts an initial public offering (IPO) on the ASX. This week, the latest company set to go through an IPO is furniture company, and now stock, The Koala Company Ltd (ASX: KOA).

IPOs are blockbuster events, as they mark the transition, listing, and debut of what is usually a private company into the public markets. An IPO is the first chance most ordinary retail investors have to buy shares in a company they might already know and love. As such, they can provoke intense speculation and excitement in the markets. We saw this in action back in mid-2024 with the IPO of Guzman y Gomez Ltd (ASX: GYG), whose shares ended up soaring when they began trading on the ASX.

Today, Koala stock has followed GYG to list on our stock market. This company will already be familiar to many Australians, thanks to the popularity of its online-based mattress, sofa, and furniture store.

By all accounts, Koala is a very successful business. In a pre-IPO ASX release, the company told investors that its revenues were up 24% over the first half of FY2026 to $165.1 million. That helped Koala book an operating profit of $10.7 million from the period, up from $3.64 million over the same period in 2025.

Koala stock IPOs on the ASX

After a prospectus launch, stock offering, and settlement that all occurred earlier this month, The Koala Company's stock has debuted on the ASX today under the ticker code 'KOA'. The shares are floating after being offered at $3.40 each, giving Koala a nominal market capitalisation of $305.3 million and an enterprise value of $259.9 million. The new shares that will be issued under this IPO are forecast to raise $20 million for Koala.

At the time of writing, the IPO has gone well, with Koala stock currently up 2.65% at $3.49 a share.

Koala looks like a potentially exciting investment and is a home-grown success story. However, I will not be buying Koala stock during this IPO. I won't be buying them today, this week, or probably anytime soon.

Why? I have nothing against Koala itself. But I do not participate in IPOs as a rule.

The problem with IPOs

There are a few reasons why. Firstly, IPOs tend to generate huge hype and buzz, things that tend to push shares up higher than they should go. After a few days or weeks, that buzz fades as the new company begins to blend into the broader market. Investors, of course, are left holding the bag.

We saw this happen with Guzman y Gomez in 2024. GYG shares had a phenomenal IPO, gaining almost 50% in the first few months of trading on the ASX. But, as of today, GYG is down by more than 46% from where it began its ASX life.

That brings us to the second reason. IPOs are designed, front to back, to maximise the value for the sellers of shares into an IPO. Not for the buyers they are selling to. There are many ways the orchestrators of the IPO can do this, by deciding how many shares will float at the IPO to when insiders can sell their shares and what price the shares debut at.

It's for this reason that I think most buyers will be better off to wait.

I invested in an IPO once and lost a lot of money as a result. So perhaps I am biased here. But no matter how exciting a company is, I will always wait for the dust to settle from an IPO before I buy shares. That includes Koala stock.

The post I won't be buying the Koala stock IPO. Here's why appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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.

We've always lived in an uncertain world. However, I think it's fair to say that 2026 is shaping up to be a lot more uncertain than 2025. If the energy shocks that have gripped the globe since the start of March continue, we might be looking at the most uncertain year since 2020. Investing through such uncertainty can be intimidating. That's why I think one ASX exchange-traded fund (ETF) is worth a look right now.

It's my view that ASX investors who are looking to brace their portfolios against further geopolitical or economic shocks should resist the siren's song of buying energy shares, oil ETFs or other short-term bets.

Instead, those investors should consider which companies are best placed to protect their earnings bases amid the significant challenges that the world is currently throwing their way.

It's my view that consumer staples stocks are a sector that is best positioned to protect investor capital amid high levels of uncertainty. Consumer staples stocks are companies that produce or sell goods that we tend to need to buy regularly. That includes food, drinks and household essentials, as well as alcohol and tobacco. Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL) and Endeavour Group Ltd (ASX: EDV) are all prominent examples on the ASX.

However, I think an ASX ETF is a better option than a single ASX stock in terms of protecting a portfolio against uncertainty. That's why I think the iShares Global Consumer Staples ETF (ASX: IXI) is a perfect fund for an uncertain 2026.

Why this ASX ETF is an antidote for uncertainty

As the name implies, this ASX ETF holds a basket of global consumer staples stocks. These range from food and drink producers like Coca-Cola Co, Nestle and Cadbury-owner Mondelez International and makers of household essentials like Colgate-Palmolive and Procter & Gamble to staples retailers and grocers like Walmart, Costco Wholesale and Kroger. Even our own Woolworths and Coles feature as holdings.

It's my view that these sorts of companies can ride out economic shocks and inflation better than any other sector. We all need to buy food and household essentials on a regular basis. That means that, although painful to consumers, these companies can effectively pass on higher costs without the threat of significant sales losses.

Even if consumers switch en masse from expensive branded products to cheaper home-brand options, this ASX ETF holds a mix of companies with strong brands (Procter & Gamble, Coca-Cola) and supermarket stores, mitigating this potential trend.

IXI's holdings are also spread across many different markets, also lowering geographic and currency risk to the ASX investor.

Pulling all of these factors together, and I think we have an ASX ETF that is a perfect investment for the uncertain world we find ourselves in in 2026.

The post This ASX ETF is perfect for an uncertain world appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Coca-Cola, Costco Wholesale, Mondelez International, and Procter & Gamble. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Colgate-Palmolive and Costco Wholesale. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Kroger and Nestlé. The Motley Fool Australia has positions in and has recommended Woolworths Group and iShares International Equity ETFs – iShares Global Consumer Staples ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) had a rough start to the trading week this Monday, although the markets recovered a little from a brutal mid-morning plunge by the time trading wrapped up today.

After starting deep in red territory this morning, the ASX 200 dropped as low as 8,379 points during intra-day trading before wrapping up at a flat 8,461 points. That puts the index down 0.65% for the session today.

This rather bleak Monday for ASX investors came after an even more turbulent end to the American trading week on Saturday morning (our time).

The Dow Jones Industrial Average Index (DJX: .DJI) was hit hard, dropping by a nasty 1.73%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fared even worse, falling by a horrid 2.15%.

But let's get back to this week and our local markets, and check out the damage to the different ASX sectors inflicted by today's market drop.

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

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Motley Fool contributor Sebastian Bowen 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.

Well, the hopes of investors for a smooth and prosperous 2026 that many harboured at the start of this year are looking increasingly precarious as we approach April. With the ongoing and perhaps escalating war in the Middle East, investors are bracing for ongoing fallout in their ASX share portfolios.

This war has already delivered a severe and perhaps unprecedented energy shock, which is what happens when 20% of the global oil supply is effectively shuttered overnight. By many accounts, even if the war ends tomorrow, the energy shock will persist for some time. And if it doesn't end in the next few weeks, that shock could get even worse.

This all puts ASX investors in a tricky position. Almost no ASX share outside the energy sector is completely immune from the deleterious effects of sharply higher oil costs. Oil and its derivatives, including petrol, diesel, aviation fuel, and plastics, are inputs into the production of most every good and service one can think of. Not to mention the primary input of transport.

So, putting all of this together, how should investors build a defensive portfolio in 2026 that is capable of riding out this brewing storm?

Building a defensive ASX share portfolio in 2026

It might be tempting to take a look at what's happening in the Middle East and go out and buy ASX energy stocks. Or even energy-linked exchange-traded funds (ETFs) like the BetaShares Global Energy Companies ETF (ASX: FUEL). Otherwise, investors might be tempted to sell ASX shares and buy that famous 'safe-haven asset', gold.

I'm not doing any of that though.

Yes, energy shares are the one sector that is shining right now. However, energy prices are famously volatile. If this energy shock begins to choke the growth of the global economy, there is a good chance that oil prices come off the boil and fast. Recessions tend to see demand for energy collapse, as we saw back in the global financial crisis. No one knows if or when this dynamic could play out. As such, I would equate buying ASX energy shares right now to gambling.

Instead, I would continue to invest as I always do – by looking for ASX shares that possess some kind of economic moat that can protect them from inflation, high energy prices, or a recession. The best companies tend to possess at least one form of moat. That could be a cost advantage (i.e. providing a good or service at consistently lower prices than competitors), or else selling a good or service that customers find difficult to avoid using.

Moats are your ASX share portfolio shield

Telstra Group Ltd (ASX: TLS) and Woolworths Group Ltd (ASX: WOW) are two examples of companies that possess such a moat. Telstra offers vital telecommunications services to Australians with the nation's superior mobile network. Many customers simply have to use Telstra for mobile and internet, given it covers parts of the country that competitors do not. Higher energy costs and lower economic growth will not change this dynamic.

In Woolworths' case, yes, its costs are set to rise significantly with higher energy bills. But, given we all need to eat and stock our households with life's essentials, most of us will continue to shop there if it remains the cheapest and most convenient place to do so.

As such, I would ensure my ASX share portfolio is only occupied by these sorts of companies that offer some kind of moat that can protect their profits from external threats.

A final note on cash

Normally, I don't hold a lot of cash in my portfolio, besides a prudent rainy day safety net. I also don't sell ASX shares just because the market is in a downturn. However, I think as a short-term investment, cash is abnormally attractive right now. Interest rates are high, and might continue to rise. Indeed, you can apply for a term deposit with an interest rate above 5% today. A safe 5% return is not a bad way to put your surplus cash to work in an environment so rife with uncertainty as this.

The post How to build a defensive ASX share portfolio in 2026 appeared first on The Motley Fool Australia.

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

It was a sour end to what has otherwise been a sweet week for ASX investors this Friday. After remaining in red territory all session today, the S&P/ASX 200 Index (ASX: XJO) finished the week with a slight 0.11% loss.

As such, we head into the weekend with the ASX 200 at 8,516.3 points.

This disappointing conclusion to the week's trading for Australian investors was preceded by an even more downbeat morning on the American markets.

The Dow Jones Industrial Average Index (DJX: .DJI) gave up an early lead to finish at a significant 1.01% loss.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was hit even harder, falling by 2.38%.

But let's return to the local markets now and dive a little deeper into how the various ASX sectors fared amid today's tough trading conditions.

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

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Motley Fool contributor Sebastian Bowen has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Telix Pharmaceuticals, Treasury Wine Estates, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) has had a rough few weeks, to be sure. Since 2 March, the index has fallen by a rather nasty 7.6%, which is about the same as its average annual gain. That drop has, of course, dragged down the value of many ASX shares. It's a pretty significant drop, given that the ASX 200 is, at today's 8,500 points, back at a level it first hit in early 2025.

Now, no one knows what's next in store for the index. Saying that, I would be willing to wager that the direction the Australian markets take over the coming few months will largely be dictated by what happens in the US-Iran war. I wouldn't be surprised either way: the ASX 200 could rally by 10% by the middle of 2026, or fall by another 10%.

If the latter scenario happens, I've already got my ASX stock watchlist ready to go. After all, market downturns have always been great opportunities to pick up shares of quality companies at bargain prices.

With that in mind, here are two ASX 200 shares that I'll be thinking about buying if we see the ASX 200 give up another 10% in the months ahead.

Two ASX 200 shares I'd buy if the market fell another 10%

First up, we have Telstra Group Ltd (ASX: TLS). I was a Telstra shareholder for many years, but sold out of my position when the company went well over $5 a share. At $5.30 at the time of writing, I don't think I'll be buying back Telstra any time soon. That said, I think this ASX share is one of the most dominant businesses on the market, with a powerful brand, a superior network, and formidable pricing power. It also tends to pay a large and reliable dividend.

I would consider adding Telstra back to my ASX share portfolio if the telco suffered a significant correction, which could well occur if the ASX 200 drops by 10% or more.

Next, let's talk TechnologyOne Ltd (ASX: TNE). This ASX tech stock was a former market darling before suffering a significant pullback over the back half of 2025 and in the first two months of 2026. TechnologyOne delivers incredible numbers every six months. Back in November, investors learned that this company recorded revenue growth of 18% to $554.6 million, as well as a 19% surge in profits before tax to $181.5 million.

Unfortunately, I missed out on the chance to pick up shares of this impressive tech stock when it hit a new 52-week low of just above $20 per share in February. If the market drops another 10% and TechnologyOne returns to that kind of pricing, I won't make the same mistake again.

The post 2 ASX shares I'd buy if the market fell another 10% appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are currently only a handful of ASX dividend stocks that provide monthly income to their investors.

ASX shares typically pay out just two dividends a year. That's the case for most of the ASX's famous blue chips, whether it be Commonwealth Bank of Australia (ASX: CBA), Woolworths Group Ltd (ASX: WOW), or Telstra Group Ltd (ASX: TLS).

Some ASX shares and exchange-traded funds (ETFs) fork out quarterly dividends, but these are uncommon. Rarer still are monthly dividend payers. Yet many investors appreciate the regularity of a monthly dividend.

Those investors currently have only a few options, including Plato Income Maximiser Ltd (ASX: PL8) and the BetaShares S&P Australian Shares High Yield ETF (ASX: HYLD). But they will soon have one more to consider.

This month, fund manager Solaris Investment Management revealed plans to float a listed investment company (LIC) that will follow the strategy of its existing Solaris Australian Equity Income Fund, an unlisted managed fund.

A new monthly ASX dividend stock

This fund invests in a basket of underlying ASX dividend shares. The fund's latest update tells us that these include Nine Entertainment Group Holdings Ltd (ASX: NEC), BHP Group Ltd (ASX: BHP), Westpac Banking Corp (ASX: WBC) and Capricorn Metals Ltd (ASX: CMM).

The Solaris Australian Equity Income Fund has been around since 2016. Since that time, it has delivered some robust results for investors. As of 28 February, investors have enjoyed an average return of 11.21% per annum. Of that 11.21%, 8.33% per annum came from dividend income distributions, including the value of franking credits. The other 2.88% came from capital growth.

As we speak, Solaris is undertaking a capital raising, at $2 a share, from investors to launch the listed version of the Solaris Australian Equity Income Fund. It will be known as Solaris Australian Equity Income Plus Ltd, and will trade with the ASX ticker code 'SET'. Solaris has nominated 17 April 2026 as the day that shares of this new ASX dividend stock are expected to commence trading.

Upon listing, Solaris has stated that the new company will have three objectives:

• generate income, inclusive of franking credits, that exceeds the income of the S&P/ASX 200 Franking Credit Adjusted Daily Total Return Index (Tax-Exempt) (Benchmark) annually
• generate total returns that are broadly in line with, or exceed, the Benchmark over the medium to long term
• deliver regular monthly income in the form of franked dividends

The fund manager expects Solaris Australian Equity Income Plus Ltd to pay the first of its monthly dividends in August this year. While there's no guarantee (as with any ASX dividend stock) that investors will receive an 8%-plus dividend yield going forward, the company's successful track record in delivering income will be reassuring for many.

The post 8% yield: The ASX is getting a new dividend stock that pays out monthly appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Plato Income Maximiser. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group and Woolworths Group. The Motley Fool Australia has recommended Nine Entertainment. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It's no secret that the past few weeks have been tough for most ASX investors. At least those without a portfolio full of energy stocks. Since the beginning of March, the S&P/ASX 200 Index (ASX: XJO) has dropped by more than 7%, which is a fairly hefty fall for four weeks' worth of trading. But let's talk about the journey that Pro Medicus Ltd (ASX: PME) shares have had.

At first glance, it doesn't look as though Pro Medicus' share price has fared any worse than the broader market. The medical imaging tech stock has retreated by 6.15% since 2 March, just under the 6.2% the ASX 200 has shed over that same period.

This ASX stock has had a tough few months…

But if we zoom out, the picture gets a lot bleaker for Pro Medicus investors. This ASX tech stock last peaked in July last year, hitting a new record high of $336. Ever since then, it has been down and down for the company. At today's share price (at the time of writing) of $118.11, Pro Medicus is down a horrid 64.85% from that high. That would have come as quite a shock to investors in this company, who, barring market-wide sell-offs, have largely had to sit back and watch it go up and to the right for years now.

It's not like Pro Medicus has given investors an obvious reason to hit the sell button either. Back in February, the company posted its latest half-year results, which were hard to fault. Pro Medicus reported revenue growth of 28.4% to $124.8 million for the six months to 31 December. Underlying profits were up an even more impressive 29.7% to $90.7  million. That allowed the company to hike its interim dividend by a whopping 28% to 32 cents per share. Pro Medicus has also continued to announce new contract signings regularly.

So, given all this, many investors might be wondering whether Pro Medicus shares offer a compelling 'buy-the-dip' opportunity right now.

Down 65%: Is it time to buy Pro Medicus shares?

Almost every ASX broker covering this company agrees that the Pro Medicus sell-down represents a lucrative buying opportunity.

Last week, my Fool colleague discussed Morgans' 'buy' rating for the company, which included a 12-month share price target of $275. That's more than a doubling of where the shares are today. The broker commented that "the [market] reaction feels overcooked and the setup into 2H is far better than the share price implies".

Another broker, Bell Potter, agrees. It currently has a $240 target on Pro Medicus shares and recently stated, "The company continues to announce new contract wins on a regular basis as the drivers of interest in its product offering remain firmly in place."

Of course, we'll have to see if these brokers are on the money. But Pro Medicus' stunning growth and strong fundamentals do, arguably, make this a stock well worth a deeper dive whilst it is trading at this steep discount.

The post Down 65%: Are Pro Medicus shares in the buy zone yet? appeared first on The Motley Fool Australia.

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

The S&P/ASX 200 Index (ASX: XJO) couldn't hold on to the positive momentum we saw yesterday during this Thursday's session.

Despite several stints in green territory this morning, the ASX 200 ended up closing in the red by the time trading wrapped up this afternoon, dropping 0.1%. That leaves the index at 8,525.7 points.

This miserly day for Australian investors follows a far more optimistic morning on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) was in fine form, rising by 0.66%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) did even better, gaining a rosy 0.77%.

But time to return to the local markets now and see how today's falls were distributed amongst the different ASX sectors today.

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

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Motley Fool contributor Sebastian Bowen has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and DroneShield and is short shares of DroneShield. The Motley Fool Australia has recommended CSL and Elders. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ongoing US-Iran war has investors checking the value of their ASX stock portfolios more frequently than usual. That's fair enough. This conflict, aside from the tragic human cost and flow-on effects on fuel prices, has elicited some of the most dramatic volatility we have seen in years. It is not uncommon these days for major stock market indexes like the S&P/ASX 200 Index (ASX: XJO) to move by more than 1% on any given trading day. It's a similar story with gold and other precious metals, too.

Since the start of March, the ASX 200 has lost about 7.1% of its value. Over on the US markets, the S&P 500 Index is down by roughly 4.2%. These falls have obviously seen the value of many ASX and US stocks decline concurrently. But what has been far more interesting, at least in my view, has been the trajectory of the gold and silver markets.

If you cast your mind back to earlier this year, gold and silver were riding high. Gold saw a new all-time high right at the start of this month, with gold topping US$5,600 per ounce for the first time ever on 1 March.  Silver hit a record high of its own back in January, rising above US$120 per ounce.

Precious metals collapse amid US-Iran war

However, the outbreak of the war saw both precious metals collapse. Gold got as low as US$4,300 just last week, while silver went under US$66 an ounce at about the same time.

These falls have seen investors take major haircuts on their gold and silver positions. This might seem strange to many observers. Precious metals are supposed to be 'safe-haven investments'. Indeed, demand for gold has historically risen in line with global geopolitical tensions or economic uncertainty. And we've seen huge spikes in both this March.

So why are gold and silver collapsing at precisely the time that they should, at least in theory, be attracting dollars hand over fist?

Well, it's hard to know for sure with these things. Perhaps investors are anticipating a global rise in interest rates to combat the likely inflation spike that higher energy prices will probably bring. As zero-yielding investments, metals like gold and silver often suffer under high rates.

I have a theory, though, and if it's true, we might see gold back to US$5,600 or even higher before we know it.

Why gold could bounce back to US$5,600

At the onset of a black swan event like the initial American attack on Iran, fear-filled investors often duck for cover in a 'flight to safety'. The traditional asset for doing so is not gold, but US dollars. US dollars are more liquid than gold or silver and tend to be where investors shelter from short-term uncertainty.

However, as investors digest a crisis and the initial fog clears, the paradigm can change. Back in 2020, the initial onset of the global COVID-19 pandemic saw gold drop from almost US$1,700 per ounce down to under US$1,500 in the first few weeks of global lockdowns. Gold only began to push notably higher from its pre-pandemic state a few months later, once the initial fear had subsided and the picture was clearer.

We saw a similar pattern back in the global financial crisis of the late 2000s.

No one knows when the US-Iran war will end. But we do know that it will likely have a profound effect on global energy markets for months to come. I think gold will rebound to its former levels, or even break new ground, over the months ahead, just as it did in past crises. That's why I'm holding on to my ASX gold shares. Of course, I could be wrong. But the best thing we can do as investors is learn from history. And I think, in this case, the lessons are there for those who are looking.

The post Prediction: Gold will hit US$5,600 again appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Newmont. 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 was another recovery day for the Australian share market this Wednesday. After turning a corner yesterday, investors piled back in to ASX 200 shares over this hump day session with gusto.

By the time trading wrapped up, the S&P/ASX 200 Index (ASX: XJO) had gained a pleasing 1.85%. That lifts the index up to 8,534.3 points.

This happy Wednesday for the local markets comes despite a far more bearish morning over on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) couldn't quite stick the landing, dropping 0.18%

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fared even worse, falling by 0.84%.

But let's get back to the ASX now and dig into what was going on amongst the various ASX sectors today.

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

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Motley Fool contributor Sebastian Bowen 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 DroneShield and is short shares of DroneShield. 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.

Qantas Airways Ltd (ASX: QAN) shareholders have had a brutal month. This time last month, the national carrier's share price was sitting at $10.65 a share. Today, those same shares are worth just $8.77 at the time of writing. And that's after today's 5.1% rally (so far). As of yesterday's closing price of $8.34, Qantas stock was down by almost 22% over the previous month.  

As of current pricing, the broader S&P/ASX 200 Index (ASX: XJO) has lost 6.35% since 25 February. So, Qantas has been a disproportionate loser for investors during this tough period. 

The obvious catalyst for this underperformance is the ongoing US-Iran war. 

Qantas is being hit from all angles here. The most obvious headwind the airline is facing is oil prices. With Brent crude surging past US$100 a barrel amid the escalating conflict in the Middle East, Qantas is staring down one of the sharpest spikes in its single largest fixed cost in years. Fuel typically accounts for somewhere between 20% and 25% of an airline's total costs. When it moves this quickly, there is little management can do to offset the hit in the short term. 

But Qantas' pain doesn't end with oil. The war has also disrupted some of the busiest airline routes in the world, with popular airports in Dubai and Abu Dhabi now under constant threat. 

Further, airlines are sensitive to broader economic growth – Australians (along with everyone else) tend to cut back on travel when they are worried about economic uncertainty. With global growth in doubt thanks to the spike in energy prices we are seeing, demand for air travel over at least the remainder of 2026 is arguably looking a little shaky.  

But I think this sell-off raises much bigger questions than just what oil prices do next.

Should investors buy the dip on Qantas stock?

I've never been a huge fan of airline stocks as long-term investments.  

Airlines are capital-intensive businesses that require enormous ongoing investment just to keep operating. They face fierce competition, thin margins, powerful unions, and huge sensitivity to an endless array of potential external shocks that no CEO can control. Oil prices, pandemics, geopolitical crises, recessions. The list goes on. 

I've got nothing against Qantas itself. It is a well-run airline that has delivered some impressive results in recent years. Its Frequent Flyers program is one of the most valuable assets in corporate Australia.

However, it is difficult for even a well-managed company to be a lucrative long-term investment if it operates in a structurally difficult industry. Just as having the best house on a bad street doesn't guarantee prosperity. 

For my money, there are simply better places on the ASX to park long-term capital. Companies with genuine moats, recurring revenue, and the ability to raise prices without losing customers. The kind of businesses that don't need oil prices to cooperate in order to turn a consistent profit. 

As such, I wouldn't be buying Qantas shares at $8.77 today, or indeed at $4.77 if they got back to that pricing. There are simply better investments elsewhere, at least in my view.

The post Qantas stock is down 17.7% in a month. Time to buy? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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.