It includes the 200 largest Australian companies based on market capitalisation.

The index is also market-cap weighted, meaning bigger companies have more influence on the index's movement

In simple terms: it shows how the top slice of the Australian stock market is performing overall.

Here in Australia, it has a strong weighting towards big banks and mining companies, which make up most of the largest companies. 

Investors often monitor the performance of this index to see how their portfolio compares. 

Many Aussie investors also compare the ASX 200 Index to the benchmark index in the US – the S&P 500 Index (SP: .INX). 

The S&P 500 tracks the performance of 500 of the largest publicly traded companies in the United States.

Unlike the ASX 200, it is weighted heavily towards technology giants like Apple and consumer discretionary stocks like Amazon. 

How do you invest in these markets?

The simplest way for investors to gain exposure to these markets is through ASX ETFs.

If you are looking to track the performance of the ASX 200, two options to consider are: 

• iShares Core S&P/ASX 200 ETF (ASX: IOZ)
• BetaShares Australia 200 ETF (ASX: A200)

Meanwhile, for exposure to the S&P 500, investors may consider: 

• iShares S&P 500 ETF (ASX: IVV)
• SPDR S&P 500 ETF Trust (ASX: SPY)

There are also several alternatives to these ASX ETFs that may provide a slightly different focus for investors to consider. 

For example, investors looking for slightly more diversification in the Australian market could consider the Global X Australia 300 ETF (ASX: A300). 

As the name suggests, it includes the 300 largest companies rather than the traditional 200. 

Focusing on the US, another popular investment is in the BetaShares NASDAQ 100 ETF (ASX: NDQ). 

This index is often referred to as representing the new economy – including 100 of the largest non-financial companies listed on the Nasdaq in the US. 

My colleague Grace Alvino explains why investors may target this fund instead of the traditional S&P 500 in her article from this morning. 

It's also important to note that investors do not have to decide between one or the other.

Many investors choose to include both US and Australian focused funds in their portfolio.

Which is performing better this year?

So far in 2026, the ASX 200 has increased by approximately 2.7%. 

Considering a fall of 9% during March, it has shown resilience to geopolitical volatility this year. 

Meanwhile in the US, the S&P 500 has increased 1.59%. 

Finally, the NASDAQ-100 Index (NASDAQ: NDX) is currently tracking somewhere in between the two, rising 2.5% year to date. 

The post Has the ASX 200 or S&P 500 been a better investment this year? appeared first on The Motley Fool Australia.

Instead of guessing which companies will win, you can build a diversified, low-maintenance portfolio in minutes. For beginners, that's a powerful way to invest with confidence over the long term.

If you're aiming for a balanced, defensive mix of Aussie and global exposure, these three ASX ETFs could be ideal "set and forget" options.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

This ASX ETF gives you instant exposure to hundreds of large companies across developed markets like the US, Europe, and Japan. That global diversification is a huge strength, as you're not relying solely on the Australian economy.

It also taps into powerful long-term growth trends across industries. Key holdings include NVIDIA Corp (NASDAQ: NVDA), Alphabet Inc (NASDAQ: GOOG), and Johnson & Johnson (NYSE: JNJ).

The main risk? Currency fluctuations and market volatility. But over a 10-year horizon, global diversification can be a major advantage.

BetaShares Australia 200 ETF (ASX: A200)

This ASX ETF tracks the top 200 companies on the ASX, offering broad exposure to the Australian market at a very low cost. It's a simple way to gain access to dividends, franking credits, and the strength of local blue chips.

Its holdings span multiple sectors, including companies like Wesfarmers Ltd (ASX: WES), CSL Ltd (ASX: CSL), and Macquarie Group Ltd (ASX: MQG).

The risk here is concentration. The Australian market is heavily weighted toward financials and resources. But paired with global exposure, it works well in a balanced portfolio.

iShares Core Composite Bond ETF (ASX: IAF)

This ETF invests in a diversified basket of Australian government and high-quality corporate bonds. It won't deliver explosive growth, but that's not the point.

IAF helps smooth out volatility and provides more stable income, especially during market downturns.

Its holdings include Australian Government bonds and debt issued by major institutions like Westpac Banking Corp (ASX: WBC) and ANZ Group Holdings Ltd (ASX: ANZ).

The trade-off is lower returns compared to shares, and sensitivity to interest rate movements.

Foolish Takeaway

These three ASX ETFs offer a powerful combination: global growth (VGS), Australian income and stability (A200), and defensive protection (IAF).

For new investors, that's a simple, diversified portfolio you can build today, and potentially hold for the next decade with confidence.

All three ASX ETFs are also highly cost-effective options. The Vanguard ETF VGS charges a low management fee of around 0.18% per year, while the BetaShares Australia 200 ETF is even cheaper at approximately 0.04%. And the iShares Core Composite Bond ETF costs about 0.10% annually.

The post New to investing? 3 ASX ETFs to set and forget for 10 years appeared first on The Motley Fool Australia.

Some of the most popular ASX ETFs have dropped significantly since the beginning of the conflict in the Middle East.

This kind of sell-off can set off alarm bells for holders of these funds. 

However, it's always worth remembering that over the long-term, these funds have come out ahead. 

This has been consistent for heavy sell-offs like in March 2020 and April 2025. 

In fact, a report from Betashares points out that markets take on average 109 days to recover from geopolitical shocks. 

Of course, perfectly timing the bottom of any cycle is near impossible. 

However this data from Betashares reinforces that for investors with a long-term focus, the current fall could be just a blip on the radar.

Here are three that could be worth considering after falling to start 2026. 

BetaShares Australia 200 ETF (ASX: A200)

As the name suggests, this ASX ETF tracks the performance of the S&P/ASX 200 Index (ASX: XJO). 

This index comprises 200 of the largest companies by market capitalisation listed on the ASX.

It includes strong weightings towards blue-chip companies like BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA).

This ASX ETF is one of the most popular amongst investors for its simple and low-cost tracking of the Australian market. 

The fund is down roughly 7% in the last month. 

However, it has delivered an average annualised return of almost 9% in the last 5 years. 

BetaShares NASDAQ 100 ETF (ASX: NDQ)

This ASX ETF aims to track the NASDAQ-100 Index (NASDAQ: NDX)

This index comprises 100 of the largest non-financial companies listed on the Nasdaq market, and includes many companies that are at the forefront of the new economy.

It includes companies like Nvidia Corp (NASDAQ: NVDA) and Apple Inc. (NASDAQ: AAPL). 

It can attract investors looking for established companies with growth potential. 

Since the start of 2026, it has fallen more than 9%. 

However, in the last 5 years it has averaged an impressive 15% return per annum. 

Vanguard MSCI Index International Shares ETF (ASX: VGS)

This ETF is the most popular internationally focussed fund listed on the ASX. 

Compared to the other two funds mentioned above, this fund is much more diversified, including almost 1,300 underlying holdings. 

Geographically, this is weighted towards the United States (71%).

It has fallen roughly 7% so far in 2026. 

This dip may attract investors with a long-term outlook, as the fund has delivered annualised returns of nearly 15% per year over the last 5 years. 

The post Why now could be the time to buy these popular ASX ETFs appeared first on The Motley Fool Australia.

Investors who own these Betashares ASX ETFs below will receive their dividends on 20 April.

The ex-dividend date is tomorrow, 1 April, and the record date is Thursday.

Dividends for A200 and other ASX ETFs

Here are the estimated dividends that investors will receive, rounded to the nearest cent, on 20 April.

The Betashares Australia 200 ETF (ASX: A200) will pay a quarterly dividend of $1.20 per unit.

A200 ETF tracks the performance of the benchmark S&P/ASX 200 Index (ASX: XJO) before costs and fees.

ASX A200 is trading at $143.79 per unit, up 0.94% today.

The Betashares Australian Dividend Harvester Active ETF (ASX: HVST) will pay a monthly dividend of 6 cents per unit.

The Betashares S&P Australian Shares High Yield ETF (ASX: HYLD) will pay a monthly dividend of 12 cents per unit.

Betashares Nasdaq 100 Yield Maximiser Complex ETF (ASX: QMAX) will pay a monthly dividend of 17 cents per unit.

The Betashares Australian Top 20 Equity Yield Maximiser Fund (ASX: YMAX) will pay a monthly dividend of 4 cents per unit.

Betashares S&P 500 Yield Maximiser Complex ETF (ASX: UMAX) will pay a monthly dividend of 11 cents per unit.

The Betashares Diversified All Growth ETF (ASX: DHHF) will pay a quarterly dividend of 14 cents per unit.

Betashares Ethical Diversified Balanced ETF (ASX: DBBF) will pay a quarterly dividend of 13 cents per unit.

The Betashares Ethical Diversified Growth ETF (ASX: DGGF) will pay a quarterly dividend of 9 cents per unit.

Betashares Ethical Diversified High Growth ETF (ASX: DZZF) will pay a quarterly dividend of 4 cents per unit.

The Betashares FTSE Global Infrastructure Shares Currency Hedged ETF (ASX: TOLL) will pay a quarterly dividend of 21 cents per unit.

Betashares Australian Government Bond ETF (ASX: AGVT) will pay a monthly dividend of 15 cents per unit.

The Betashares US Treasury Bond 7-10 Year Currency Hedged ETF (ASX: US10) will pay a quarterly dividend of 40 cents per unit.

Betashares Global Aggregate Bond Currency Hedged ETF (ASX: WBND) will pay a quarterly dividend of 45 cents per unit.

Want to reinvest your ASX ETF dividends?

A distribution reinvestment plan (DRP) is available for eligible Betashares ETFs.

If you're newly invested in Betashares ETFs and would like to reinvest your dividends, you will need to lodge your DRP election form by 5pm AEST next Tuesday, 7 April.

The post Own A200 or other Betashares ASX ETFs? Dividends just announced appeared first on The Motley Fool Australia.

From low-cost local exposure to global growth leaders, here are five of the best ASX ETFs to consider today.

Vanguard Australian Shares Index ETF (ASX: VAS)

First up is this popular Vanguard ETF, which remains a go-to core holding for local market exposure. This fund tracks a broad basket of Australian shares and includes many of the ASX's biggest dividend payers like BHP Group Ltd (ASX: BHP) and Wesfarmers Ltd (ASX: WES).

If you want a reliable, set-and-forget foundation for your portfolio, VAS is hard to beat.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

For global diversification, the ASX ETF stands out. It gives investors access to hundreds of companies across major developed markets, including the US, Europe, and Japan.

With names like Apple Inc (NASDAQ: AAPL) and Microsoft Corp (NASDAQ: MSFT) in the mix, it's a powerful way to tap into global growth trends. This fund remains one of the most popular ETFs and it helps reduce overexposure to Australian banks and miners.

BetaShares Australia 200 ETF (ASX: A200)

If keeping fees as low as possible is your priority, take a look at the BetaShares Australia 200 fund. The ASX ETF offers exposure to 200 of Australia's largest companies at one of the lowest management fees on the market.

Over the long term, those lower costs can make a meaningful difference to your returns. This BetaShares fund could be a low-cost alternative to VAS.

iShares S&P 500 ETF (ASX: IVV)

Want more direct exposure to the powerhouse US market? This index fund is a popular pick. It tracks the S&P 500, giving you access to 500 of America's largest companies.

With the US continuing to lead in innovation — particularly in tech and Artificial Intelligence — IVV offers a simple way to ride that wave.

VanEck MSCI International Quality ETF (ASX: QUAL)

Finally, for investors looking for a quality tilt, this VanEck fund is worth a look. It's great for investors who want Warren Buffett-style businesses globally.

This ETF focuses on high-quality global companies with strong balance sheets, stable earnings, and competitive advantages. It's a great option if you want to reduce risk while still staying invested in global equities.

Foolish Takeaway

The bottom line? You don't need to overcomplicate things.

A handful of high-quality ETFs like these can form the backbone of a strong, long-term portfolio — and April could be a great time to get started.

The post 5 of the best ASX ETFs to buy in April appeared first on The Motley Fool Australia.

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.

Australia's benchmark index entered correction territory briefly this week before slightly bouncing back. 

A new report from Betashares has explored how long similar falls in the past have taken to recover.

What is a correction and how often do they happen?

A market correction is a short-term drop in stock prices – usually defined as a decline of 10% or more. 

A bear market usually involves a decline of 20% or more.

According to Betashares, falls of more than 5% happen roughly once a year on average. 

Of those that reach 10%, just over half go on to become deeper declines, although the risk is lower when the economy is not heading into recession.

Hans Lee, Senior Finance Writer at Betashares, said the most recent comparable moment was Liberation Day in April last year, when Trump's tariff announcement sent the ASX down 15.8% peak-to-trough in a matter of days. 

It recovered fully within weeks.

Before that, investors experienced a 35% fall in the Australian share market in just five weeks during early 2020. Markets recovered to pre-crash levels just 13 months later.

History offers some reassurance here. Markets price fear faster than they price recovery – which is why making significant decisions on instinct tends to produce worse results than sitting tight.

Why is the market falling?

The ongoing conflict in the Middle East is the main catalyst of recent declines. 

However unlike liberation day sell-offs last year, the current fall is having more direct impacts to the economy. 

Last year, when President Trump announced widespread tariffs, markets reacted quickly, and priced in this fear before any real economic impact was felt. 

This was a classic example of markets reacting more to expectations and uncertainty than to immediate, measurable economic damage.

In contrast, the current conflict is resulting in higher oil prices. These feed directly into inflation, complicating the picture for central banks.

The RBA raised rates again earlier this month fearing inflationary pressures from the impact of higher oil prices, while the US Federal Reserve signalled it's in no hurry to cut rates any time soon.

Is this likely to persist?

According to Betashares, history says there is a good chance the conflict is short lived. 

Research by Hartford Funds found that historically the S&P 500 was higher one year after the onset of conflict 73% of the time , with average one-year returns in the high single digits. Oil-driven shocks can take longer to resolve, but history still favours patience over panic.

Chief Economist David Bassanese's base case is that a negotiated resolution remains the most likely outcome. But markets are waiting for confirmation and, until they get it, volatility will be the default setting.

Is now the time to buy?

Here at The Motley Fool, we are long-term focussed. 

With that framework in mind, a 10% decline to Australia's benchmark index is a chance to top up your portfolio at a relative value. 

It's important to remember that short-term volatility is likely to persist. There's no guarantee of a quick resolution to the current conflict in the Middle East. 

However as Betashares research points out, over the long-term, markets like the ASX 200 will recover, and eventually steam ahead. 

If you are looking for broad exposure to the ASX 200, here are a few ASX ETFs to consider: 

• BetaShares Australia 200 ETF (ASX: A200)
• iShares Core S&P/ASX 200 ETF (ASX: IOZ)
• Vanguard Australian Shares Index ETF (ASX: VAS) – Targets the ASX 300 rather than just the 200 largest companies. 

The post How long will it take for the ASX 200 to recover? Expert appeared first on The Motley Fool Australia.

With thousands of companies to choose from, constant market noise, and the fear of losing money, getting started can feel overwhelming.

But building wealth through investing doesn't need to be complicated. A straightforward portfolio of broad ASX ETFs, quality ASX shares, and bonds can help investors build a resilient portfolio that grows over the long term.

Here's how I'd do it.

Broad market index funds

Step one is to start with broad market ASX ETFs. Exchange-traded funds are one of the easiest ways to gain instant diversification. Rather than trying to pick individual winners from day one, investors can spread their money across hundreds of companies.

A simple starting trio could include the BetaShares Australia 200 ETF (ASX: A200) for exposure to Australia's blue-chip shares. Then add the Vanguard MSCI International Shares ETF (ASX: VGS) for global diversification, and the iShares MSCI Emerging Markets ETF (ASX: IEM) for access to faster-growing developing economies.

Together, these ASX ETFs provide exposure to thousands of companies across Australia, the US, Europe, and emerging markets. That kind of diversification can reduce risk and smooth returns over time.

High-quality ASX stocks

Once the ASX ETFs and the foundations are in place, investors can begin layering in individual companies with strong competitive advantages and long-term growth potential.

The Australian market is home to several world-class businesses that have delivered impressive shareholder returns over decades.

Companies like CSL Ltd (ASX: CSL), REA Group Ltd (ASX: REA), and Xero Ltd (ASX: XRO) have built powerful market positions and continue expanding globally. Adding a handful of quality growth shares can give a portfolio an extra engine for capital appreciation.

Reliable dividend payers

The next step is to include reliable dividend payers. Income is another important component of long-term investing, especially for Australians who benefit from franking credits.

Well-established businesses such as Wesfarmers Ltd (ASX: WES) and Commonwealth Bank of Australia (ASX: CBA) have long histories of returning cash to shareholders through dividends. Reinvesting those dividends can significantly boost returns through the power of compounding.

Stability through bonds

Then it's time to add stability through bonds. Shares can be volatile, particularly during market downturns. Bonds can help stabilise a portfolio and reduce overall risk.

One easy way to gain exposure is through bond ASX ETFs such as the Vanguard Australian Fixed Interest Index ETF (ASX: VAF). These funds invest in government and high-quality corporate bonds, providing steady income and typically moving less dramatically than equities.

Having a portion of a portfolio in bonds can provide valuable balance during turbulent markets.

Invest consistently, think long term

Perhaps the most important step is simply sticking with the plan: invest consistently and think long term. Markets will rise and fall, sometimes sharply. But history shows that patient investors who regularly add to their portfolios tend to be rewarded over time.

Rather than trying to time the market, a steady investing habit — such as contributing monthly — can smooth out volatility and build wealth gradually.

In the end, successful investing doesn't require complex strategies or constant trading. A simple mix of diversified ASX ETFs, quality ASX shares, and stabilising bonds can form a powerful foundation for long-term wealth creation.

The post New to investing? Start with ASX ETFs and quality ASX stocks appeared first on The Motley Fool Australia.

At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is down 5% and the S&P 500 Index (SP: .INX) is down nearly 2% just since the beginning of March. 

Watching your portfolio plummet can induce panic. 

However it's at times like these investors need to remain focussed on the long-term. 

Research from Betashares reinforced the importance of this discipline. 

Hans Lee, Senior Finance Writer at BetaShares said price swings and permanent losses are not the same thing. 

What often separates the two is whether an individual stayed invested long enough for the market to do its job.

During the Liberation Day sell-down, a hypothetical investor who sold right at the top and reinvested just 3 months later would have underperformed an investor who 'rode out' the crash without selling by more than 8% in less than a year.

In other words, remaining invested would have resulted in better returns.

For those investors focussed on holding through the volatility, here are three ASX ETFs that have risen steadily over the long term. 

BetaShares Australia 200 ETF (ASX: A200)

Put simply, this ASX ETF aims to track the performance of an index (before fees and expenses) comprising 200 of the largest companies by market capitalisation listed on the ASX.

The fund includes blue-chip companies like the big four banks, as well as mining and materials giants. 

It is a popular option for investors looking for simple exposure to the ASX 200. 

Furthermore, it has a strong track record, with a per annum return of 10.97% over the last 5 years. 

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A nice compliment to an Australian focussed ASX ETF is this fund from Vanguard. 

It includes around 1,300 companies from developed countries, excluding Australia.

Investing internationally offers greater access to sectors such as technology and health care that aren't as well represented in the Australian share market.

It has brought annual returns of almost 15% over the last 5 years. 

Vanguard S&P 500 US Shares Index ETF (ASX: V500)

This fund from Vanguard is actually brand new. 

It only hit the market last week. 

However, the fund provides exposure to a diversified portfolio of the 500 largest publicly listed U.S. companies across all major sectors. 

While the fund is new, the index it tracks – the S&P 500 – is one of the benchmark US indexes. 

The index is up 71.19% over the last 5 years. 

The post Look long-term with these 3 ASX ETFs appeared first on The Motley Fool Australia.

Instead of trying to pick individual winners, this approach focuses on owning the market through a handful of low-cost exchange-traded funds.

Over time, diversified ETF portfolios like this have proven remarkably resilient. They have navigated events such as the dot-com crash, the Global Financial Crisis and the COVID-19 market shock.

Yet investors who stayed invested and reinvested their dividends have still benefited from powerful long-term compounding. Let's have a closer look at the 3 ASX ETFs.

BetaShares Australia 200 ETF (ASX: A200)

The first building block is the BetaShares Australia 200 ETF. This ASX ETF tracks the S&P/ASX 200 Index (ASX: XJO) and provides exposure to 200 of the largest companies listed on the Australian market.

In other words, investors gain broad exposure to the Australian economy in a single trade. The fund's biggest holdings include blue chips such as Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), and CSL Ltd (ASX: CSL).

One of the biggest advantages of A200 is its ultra-low cost. With a management fee of just 0.04%, it is one of the cheapest ASX ETFs available on the Australian share market. Low fees are critical for long-term investors because they leave more of the portfolio's returns in shareholders' pockets.

Vanguard MSCI International Shares ETF (ASX: VGS)

Next comes global diversification through the Vanguard MSCI International Shares ETF. While Australia has many strong companies, it represents only a small share of the global stock market.

This ASX ETF solves this problem by investing in more than 1,300 companies across developed markets including the United States, Europe and Japan. Its largest holdings include global giants such as Apple Inc. (NASDAQ: AAPL) and NVIDIA Corp. (NASDAQ: NVDA).

These businesses dominate their industries and generate enormous cash flows. By owning VGS, investors gain exposure to some of the most innovative and powerful companies in the world.

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The final piece of the puzzle is the ASX ETF ASIA. This fund focuses on leading technology companies across Asia, a region that has become one of the most dynamic growth engines of the global economy.

The portfolio includes well-known companies such as Alibaba Group Holding Ltd (NYSE: BABA) and Samsung Electronics Co. Ltd (KRX: 005930).

Asia's rapidly expanding middle class, rising technology adoption and growing digital economies could provide powerful long-term tailwinds for these companies.

Foolish Takeaway

The beauty of this lazy millionaire portfolio lies in its simplicity. With just three low-cost ASX ETFs, investors can build a diversified portfolio designed to weather market volatility while still capturing long-term growth.

A simple allocation could see investors place around 40% into A200, 40% into VGS and 20% into ASIA. Together, these three ETFs provide exposure to hundreds of leading companies across Australia and the global economy.

For patient investors willing to stay invested and reinvest dividends along the way, this ASX ETFs portfolio shows that sometimes the simplest strategy can also be the most powerful.

The post Just 3 ASX ETFs could build a lazy Australian millionaire portfolio appeared first on The Motley Fool Australia.

They will form a simple, low-cost ETF strategy without the need to constantly check the market.

Let's have a closer look at the ASX ETFs.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

If you want broad global exposure in a single trade, this ASX ETF is hard to beat. VGS gives you access to more than 1,000 companies across major developed markets, including the US, Europe, and Japan.

You're buying global heavyweights like Apple Inc (NASDAQ: AAPL) and Nvidia Corp (NASDAQ: NVDA), along with healthcare leaders such as Johnson & Johnson (NYSE: JNJ). That means exposure to technology, consumer brands, industrials, and more — all in one fund.

This global ASX ETF is low-cost, highly diversified, and removes the risk of relying too heavily on the Australian market.

BetaShares Australia 200 ETF (ASX: A200)

Next is the BetaShares Australia 200 ETF. While global exposure is crucial, Australian shares still deserve a place in a long-term portfolio, especially for dividend income.

This ASX ETF tracks the 200 largest companies on the ASX at a very competitive management fee. Its top holdings include blue-chip stocks such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and CSL Ltd (ASX: CSL).

That gives investors exposure to mining, banking, and healthcare — three pillars of the Australian economy. The income component is also attractive, as Australian blue chips tend to pay reliable, franked dividends.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

Finally, consider adding growth power with this Nasdaq-focused ASX ETF. This Betashares fund focuses on the 100 largest non-financial companies listed on the Nasdaq exchange in the US.

It's more concentrated and more growth-focused than VGS, but that's part of the appeal. This ASX ETF holds innovative giants such as Amazon.com Inc (NASDAQ: AMZN) and Meta Platforms Inc (NASDAQ: META). These businesses dominate cloud computing, digital advertising, e-commerce, and artificial intelligence.

While tech stocks can be volatile, they've historically delivered strong long-term returns. Including this ETF alongside broader funds adds extra growth potential to a portfolio built for the next decade.

Foolish Takeaway

For a new investor looking ahead to 2036, this type of ETF trio offers a straightforward strategy: buy quality, stay diversified, keep costs down, and let compounding do the heavy lifting.

The result? Exposure to thousands of companies across industries, including finance, mining, healthcare, consumer goods, and cutting-edge tech. You're spreading risk across countries and sectors while keeping costs low and management simple.

The post New to investing: 3 ASX ETFs to set and forget until 2036 appeared first on The Motley Fool Australia.

With one trade, you get exposure to hundreds – even thousands – of companies, spreading risk and reducing the need to pick individual winners.

Here are 3 ASX ETFs that can offer a genuinely stress-free start to investing.

Betashares Australia 200 ETF (ASX: A200)

This ASX ETF is a straightforward way to own Australia's 200 largest listed companies. Blue chips such as Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) and CSL Ltd (ASX: CSL) dominate its portfolio.

In one trade, you're effectively buying a slice of the Australian economy. It spans from banks and miners to healthcare leaders and retailers. A200 ETF is known for its ultra-low management fee, which helps maximise long-term compounding.

While banking and mining heavyweights dominate the Australian market, this ETF provides broad, diversified exposure. All without the stress of choosing individual blue chips.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

This fund opens the door to developed markets worldwide. This ASX ETF holds thousands of companies across the United States, Europe and parts of Asia.

Among its largest holdings are global giants such as Apple Inc (NASDAQ: AAPL), Amazon.com Inc (NASDAQ: AMZN) and NVIDIA Corp (NASDAQ: NVDA). That exposure adds powerful technology and innovation leaders that are underrepresented on the ASX.

By spreading your money across multiple economies and industries, VGS ETF can help smooth returns over time. However, currency movements may influence performance in the short term.

iShares Core S&P/ASX 200 ETF (ASX: IOZ)

This ASX ETF is rounding out the trio. Like A200, IOZ ETF focuses on Australia's largest 200 companies, tracking the S&P/ASX 200 Index (ASX: XJO). Its top holdings closely mirror the leaders of the local share market, including retail giant Wesfarmers Limited (ASX: WES) and Macquarie Group Ltd (ASX: MQG), alongside the major banks and miners.

This ASX fund offers strong liquidity and exposure to the companies that drive much of the ASX's overall performance.

Foolish Takeaway

The beauty of these ASX ETFs is their simplicity. You can choose one as a starting point or combine Australian exposure through A200 or IOZ with global diversification via VGS.

Instead of chasing hot tips, you own broad sections of the market and let time and compounding do the heavy lifting.

For investors who want a calm, disciplined entry into the share market, that kind of structure can make all the difference.

The post 3 ASX ETFs for a stress-free start to investing appeared first on The Motley Fool Australia.

Among the most widely held are three familiar tickers: Vanguard Australian Shares ETF (ASX: VAS), BetaShares Australia 200 ETF (ASX: A200), and iShares Core S&P/ASX 200 ETF (ASX: IOZ).

They look similar on the surface, but each has a slightly different focus and appeal depending on what kind of investor you are.

VAS: The broad, all-rounder

Vanguard Australian Shares ETF is often the first ETF investors encounter — and for good reason. It tracks the S&P/ASX 300 Index (ASX: XKO), giving exposure to around 300 of the largest Australian-listed companies. That makes it the most diversified of the three.

The ASX ETF is heavily weighted toward financials and resources. It has big positions in Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), CSL Ltd (ASX: CSL), National Australia Bank Ltd (ASX: NAB), and Westpac Banking Corp (ASX: WBC). Because it reaches beyond the top 200 stocks, VAS also includes a meaningful slice of mid-caps. They can add a touch of growth over the long term.

VAS is attractive to investors who want a true "own the market" approach. It's often used as a core holding, particularly for long-term and income-focused portfolios. It pays regular dividends largely funded by bank and mining dividends.

A200: Low cost, big names

BetaShares Australia 200 has surged in popularity thanks to one key differentiator: cost. The ASX ETF tracks the S&P/ASX 200 Index (ASX: XJO), like iShares Core S&P/ASX 200 ETF, but with one of the lowest management fees available in Australia.

The fund focuses on the country's 200 largest companies. That means it's slightly more concentrated than VAS and excludes smaller mid-cap names. Its largest holdings overlap heavily with VAS. Think Commonwealth Bank, BHP, CSL, ANZ Group Holdings Ltd (ASX: ANZ), and Macquarie Group Ltd (ASX: MQG), but without the long tail of smaller stocks.

A200 appeals to cost-conscious investors who believe fees matter over the long run. If your goal is simple, low-cost exposure to Australia's biggest and most liquid companies, this ASX ETF is hard to ignore.

IOZ: The established core option

This ASX ETF is one of the longest-standing Australian equity ETFs and also tracks the ASX 200. iShares Core S&P/ASX 200 ETF sits somewhere between VAS and A200 in terms of approach. It offers broad large-cap exposure with a competitive – though not the lowest – fee.

Like A200, IOZ is dominated by banks, miners, and healthcare giants. Investors get exposure to Australia's dividend-heavy blue chips. That makes it popular with income seekers and SMSFs looking for simplicity and reliability.

IOZ's appeal lies in its track record and issuer reputation. It's often chosen by investors who want a no-frills, set-and-forget ETF from a well-established provider.

Foolish Takeaway

VAS suits investors wanting the broadest exposure to the Australian market. A200 is ideal for those focused on minimising fees while sticking to large caps.

The third ASX ETF, IOZ, offers a proven, straightforward way to access Australia's biggest companies. None are better in isolation. The right choice depends on whether you value diversification, cost, or simplicity most.

The post 3 most popular ASX ETFs focused on Aussie shares appeared first on The Motley Fool Australia.

The simplest ones track the performance of major indexes such as the S&P/ASX 200 Index (ASX: XJO).

These are called 'passive ETFs' because they simply seek to mirror the performance of an indices, minus fees.

Active ETFs are managed by a professional team that selects the stocks in the portfolio for a higher fee.

Australians invested a net $53 billion into ASX ETFs last year, up 75% on 2024, according to Betashares data.

Given the popularity of ETFs, have you ever wondered which ones other investors are targeting?

We get a clue by looking at the full-year data recently published by the ASX.

The data shows which ETFs have the most funds under management.

This gives an indication as to which ETFs investors have had the most confidence in over the years.

Check them out.

Which ASX ETFs do investors like best?

1. Vanguard Australian Shares Index ETF (ASX: VAS)

ASX VAS has $22.585 billion in funds under management. In 2025, a net $3 billion flowed in.

The VAS ETF tracks the S&P/ASX 300 Index (ASX: XKO), which represents the 300 largest listed companies by market capitalisation.

This includes blue-chip shares like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia Ltd (ASX: CBA), and CSL Ltd (ASX:CSL).

2. Vanguard MSCI Index International Shares ETF (ASX: VGS)

VGS has $14.192 billion in funds under management. The ASX VGS brought in $2.6 billion in new funds last year.

The VGS ETF tracks the MSCI World ex-Australia (with net dividends reinvested) in Australian dollars Index.

ASX VGS gives investors exposure to about 1,300 international shares across 23 nations. US shares dominate the portfolio at 74%.

3. iShares S&P 500 ETF (ASX: IVV)

IVV has $13.11 billion in funds under management. The ASX IVV attracted a net inflow of $1.17 billion in 2025.

ASX IVV tracks the performance of the S&P 500 Index (SP: .INX), which represents the 500 biggest listed companies in the US.

4. BetaShares Australia 200 ETF (ASX: A200)

A200 has $8.88 billion in funds under management. The ASX A200 brought in $2.1 billion in new funds last year.

The BetaShares Australia 200 ETF tracks the ASX 200.

5. VanEck MSCI International Quality ETF (ASX: QUAL)

QUAL ETF has $8.07 billion in funds under management. In 2025, a net $293 million flowed in.

The QUAL ETF tracks the MSCI World ex Australia Quality Index, which encompasses 300 diversified and high-quality companies listed on exchanges in developed markets outside Australia.

The 'quality' component has a specific definition: High return on equity (ROE), earnings stability, and a healthy balance sheet.

6. iShares Core S&P/ASX 200 ETF (ASX: IOZ)

IOZ ETF has $7.798 billion in funds under management. The ASX IOZ brought in $1.1 billion in new funds last year.

The iShares Core S&P/ASX 200 ETF tracks the performance of the ASX 200 Accumulation Index.

This index tracks the ASX 200 but also takes into account the reinvestment of dividends.

7. Betashares NASDAQ 100 ETF (ASX: NDQ)

NDQ ETF has $7.69 billion in funds under management. In 2025, a net $927 million flowed in.

This ETF tracks the NASDAQ-100 Index (NASDAQ: NDX), which represents the 100 largest companies listed on the tech-heavy US NASDAQ.

8. Dimensional Australian Core Equity Trust — Active ETF (ASX: DACE)

This ASX ETF has $6.434 billion in funds under management. In 2025, DACE attracted a net inflow of $293 million.

DACE invests in a portfolio of ASX shares selected by Dimensional analysts.

9. Magellan Global Fund – Open Class Units – Active ETF (ASX: MGOC)

MGOC has $6.372 billion in funds under management. This ETF had a net outflow of $1.3 billion in 2025.

MGOC ETF invests in 20 to 40 stocks that the Magellan team considers best in their class.

10. Vanguard US Total Market Shares Index ETF (ASX: VTS)

VTS ETF has $6.361 billion in funds under management. In 2025, investors ploughed an extra $377 million net into this ETF.

The VTS ETF tracks the CRSP US Total Market Index.

This gives investors exposure to more than 3,700 US-listed companies.

The post 10 most popular ASX ETFs on the market today appeared first on The Motley Fool Australia.

ASX stocks can provide both capital growth and dividends (passive income). That sounds good to me!

If someone were to start investing at the age of 25, they could grow their wealth enormously by the time they wanted to retire.

Time will tell what the usual retirement age will be in 40 or so years. It could be 65, 70 or even older. But, I'm going to show how a 25-year-old investor could grow their wealth over the next four decades.

Compounding potential

Every household's finances are different, so I can't say for sure what level of savings someone would be able to unlock for investing. What I do know, is that we want to get to a place where we are spending less than our income so we have money left over to invest.

When we're able to create savings most months (or every month), then we can put that money towards investing into the ASX stock market.

Investing in shares is simple, comes with a lot less paperwork and costs than property, doesn't require debt and can deliver great returns in we invest in the right area.

Over the ultra-long-term, shares have returned an average of around 10%. At that rate, the value of the shares would double in just eight years.

Let's imagine a 25-year-old was able to invest $1,250 each month on average into ASX stocks. That would become $6.64 million after 40 years, with around $6 million of that being generated by returns and the rest being from the monthly deposits.

I'm not sure what portfolio size will be needed to reach a comfortable retirement, but $6 million may be more than enough.

Someone may not want to work as long as that.

After 30 years of following that strategy, the portfolio would be worth $2.47 million.

After 20 years it'd be worth $859,000, which may not quite be enough.

Therefore, it could take less than 30 years for someone to build a substantial wealth fund.

Which ASX stocks to invest in?

The easiest way to invest could be exchange-traded funds (ETFs) that provide diversified exposure to the share market such as BetaShares Australia 200 ETF (ASX: A200) and Vanguard MSCI Index International Shares ETF (ASX: VGS).

Listed investment companies (LIC) such as Australian Foundation Investment Co Ltd (ASX: AFI), WAM Microcap Ltd (ASX: WMI) and L1 Long Short Fund Ltd (ASX: LSF) could be compelling options.

Or, some of country's best ASX growth shares such as Temple & Webster Group Ltd (ASX: TPW), Tuas Ltd (ASX: TUA) or TechnologyOne Ltd (ASX: TNE) could be compelling picks.

The post If a 25-year-old invests $1,250 a month in ASX stocks, here's what they could have by retirement appeared first on The Motley Fool Australia.

The report highlights that this investment class is becoming an increasingly attractive asset option for investors. 

Key takeaways

According to the Global X report, the Australian ETF market grew 34.1% in 2025 and is running at a five-year compound annual growth rate (CAGR) of 28.3%. 

This growth was driven by over $53 billion in net inflows over the past year, positive market movements, and unlisted funds converting into active ETFs.

Investors poured $5.3 billion in Australian ETFs in the final month of the year, capping off a record breaking 2025 with net inflows totalling $53.3 billion to close out the year, shattering the prior record of $31 billion set in 2024.

But it wasn't just the total investment that broke records. 

For the first time since 2019, 92% of Australian-listed ETFs delivered positive returns. 

These milestones highlight how ETFs have firmly established themselves as mainstream investment vehicles for Australian investors, offering transparency, liquidity and cost efficiency. 

With ETF penetration in Australia still well below international markets, we believe adoption has further room to grow as investors increasingly use ETFs as core portfolio building blocks across asset classes and investment styles.

The report also noted that most Australian ETF investors opt for unhedged currency funds for their global exposure. 

Historically, only 10-15% of global equity ETF allocations have been directed to currency-hedging strategies.

However, according to Global X, in 2025, that share rose. Roughly one in every five dollars flowing into currency-hedged exposures, reflecting a heightened focus on managing currency risk.

December at a glance

The report highlighted that December 2025 was dominated by a powerful surge across precious metals. 

This capped off a year where commodities emerged as the standout investment theme of 2025. 

Gold, silver, platinum and palladium all rallied sharply in the final month, supported by tight supply conditions, resilient central bank demand and growing expectations of easier monetary policy in 2026.

What were the most popular categories in 2025?

The report also shed light on the most heavily sought after sectors in 2025. 

Equity ETFs dominated inflows, capturing about two-thirds of total ETF flows in 2025. 

Of the $35 billion allocated to equity ETFs, $7.3 billion went into broad-based global equity ETFs, making them the most popular category as investors sought low-cost, diversified exposure.

Broad-based Australian equity ETFs ranked second, after leading flows in 2024.

Defensive assets were also significant, with $14 billion allocated to fixed income ETFs. Global diversified fixed income ETFs had a particularly strong December, boosted by a large model portfolio rotation, contributing to $2.1 billion in inflows for the year.

Liquid alternatives regained momentum, with commodity ETFs attracting over $2 billion in net inflows. Their share of total flows was the highest since 2020, reflecting renewed interest in diversification, inflation hedging, and real assets.

How to target these sectors?

For investors looking for exposure to these sectors, there are plenty of ASX ETFs to consider. 

Amongst thematic ASX ETFs, Global X identified the following as the fastest growing: 

• Global X China Tech Etf (ASX: DRGN)
• Global X Ai Infrastructure ETF (ASX: AINF)
• Global X Gold Bullion (Currency Hedged) ETF (ASX:GHLD). 

For global equities, popular ASX ETFs to consider include: 

• Vanguard MSCI Index International Shares ETF (ASX: VGS)
• iShares S&P 500 ETF (ASX: IVV)
• VanEck MSCI International Quality ETF (ASX:QUAL)

For broad-based Australian Shares: 

• Vanguard Australian Shares Index ETF (ASX: VAS)
• BetaShares Australia 200 ETF (ASX: A200)
• Global X Australia 300 Etf (ASX: A300). 

The post Why Aussies are pouring into ASX ETFs at a record pace appeared first on The Motley Fool Australia.

Investors in the Betashares Global Gold Miners Currency Hedged ETF (ASX: MNRS) will be among those paid today.

The gold miners ETF was one of the best performers of 2025, delivering a whopping total return of 149%.

MNRS tracks the performance of the Nasdaq Global ex-Australia Gold Miners Hedged AUD Index.

The 65% rally in the gold price last year, building on the 24% lift in 2024, was a big tailwind behind MNRS last year.

Investors in Betashares Global Defence ETF (ASX: ARMR) will also be paid today.

ARMR is benefitting from a big increase in global defence spending amid volatile geopolitics these days.

It tracks the VettaFi Global Defence Leaders Index and gave investors a total return of 48% last year.

Dividends to be paid today

Here are the dividends that investors will receive, rounded to two decimal places, today.

The Betashares Australia 200 ETF (ASX: A200) will pay $1.15 per unit with 60% franking.

Betashares Australian Quality ETF (ASX: AQLT) will pay 47 cents per unit with 93% franking.

The Betashares Global Defence ETF (ASX: ARMR) will pay 32 cents per unit.

Betashares Global Gold Miners Currency Hedged ETF (ASX: MNRS) will pay 3 cents per unit.

The Betashares Asia Technology Tigers ETF (ASX: ASIA) will pay 67 cents per unit.

Betashares S&P/ASX Australian Technology ETF (ASX: ATEC) will pay 6 cents per unit with 106% franking.

Betashares Diversified All Growth ETF (ASX: DHHF) will pay 30 cents per unit with 22% franking.

The Betashares Global Sustainability Leaders ETF (ASX: ETHI) will pay 4 cents per unit.

Betashares Australian Sustainability Leaders ETF (ASX: FAIR) will pay 29 cents per unit with 65% franking.

But wait, there's more…

The Betashares Geared Australian Equity Fund – Hedge Fund (ASX: GEAR) will pay 45 cents per unit with 225% franking.

Betashares Australian Dividend Harvester Active ETF (ASX: HVST) will pay 6 cents per unit with 74% franking.

The Betashares S&P Australian Shares High Yield ETF (ASX: HYLD) will pay 12 cents per unit with 66% franking.

Betashares Australian Financials Sector ETF (ASX: QFN) will pay 28 cents per unit with 89% franking.

Betashares Global Quality Leaders ETF (ASX: QLTY) will pay 9 cents per unit.

The Betashares Australian Resources Sector ETF (ASX: QRE) will pay 11 cents per unit with 101% franking.

Betashares Global Uranium ETF (ASX: URNM) will pay 3 cents per unit.

The Betashares Australian Top 20 Equity Yield Maximiser Fund (ASX: YMAX) will pay 13 cents per unit with 31% franking.

Betashares Global Banks Currency Hedged (ASX: BNKS) will pay 11 cents per unit.

Betashares Global Energy Companies Currency Hedged ETF (ASX: FUEL) will pay 9 cents per unit.

The post Own MNRS or ARMR ETFs? Here's why it's a big day for you appeared first on The Motley Fool Australia.

The backbone of any ETF portfolio is broad market exposure. A total world or developed markets ETFs give you instant access to thousands of companies across countries and sectors.

This portfolio leans on a 30% Australian base, around 35% global equities, and a stabilising mix of bonds and cash. It's designed to be boring in the best possible way.

Australian backbone

Every portfolio needs a strong local anchor, and ETFs like BetaShares Australia 200 ETF (ASX: A200) or Vanguard Australian Shares Index ETF (ASX: VAS) will do the heavy lifting. Tracking the top 200 companies on the ASX, they give instant exposure to the pillars of the Australian market: Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), CSL Ltd (ASX: CSL), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), and Wesfarmers Ltd (ASX: WES).

Banks, miners, and healthcare dominate, delivering dividends and a familiar economic link to home. At roughly 30% of a portfolio, this ETF provides stability and income without stock-picking risk.

Global heavyweights

For broad offshore exposure, iShares Global 100 ETF (ASX: IOO) owns the biggest corporate names on the planet. This ETF holds around 100 global giants, including Apple, Microsoft, Amazon, and Alphabet.

The US leads the weighting, but Europe and Japan feature strongly, giving investors exposure to multiple economies through companies with global revenue streams. IOO forms the backbone of global equity exposure without overcomplicating things.

Growth kicker

While iShares Global 100 covers the world's blue chips, BetaShares NASDAQ 100 ETF (ASX: NDQ) adds growth firepower. Tracking the NASDAQ-100 Index (NASDAQ: NDX), it is packed with technology and innovation leaders such as Nvidia, Apple, Microsoft, Meta and Alphabet.

This tech ETF is more volatile, but it has historically driven returns during periods of strong global growth. A modest allocation helps tilt the portfolio toward the future without dominating it.

Liquidity and safety

Cash is unfashionable until markets fall apart. When share markets wobble, bonds often soften the blow, providing income and stability. This ETF acts as the portfolio's shock absorber rather than a return engine.

iShares Core Composite Bond ETF (ASX: IAF) invests in high-interest bank deposits, offering capital stability and ready liquidity. It won't deliver fireworks, but it provides flexibility, whether for opportunities, expenses, or peace of mind.

Put together, these five ETFs or equivalent funds create a low-cost, diversified, easy-to-manage portfolio that spans Australian shares, global leaders, growth stocks, bonds, and cash. No guessing, just broad exposure built for the long haul.

The post 5 ETFs for an effective global portfolio appeared first on The Motley Fool Australia.

With more than $8 billion in assets under management, QUAL is currently the fifth most popular ASX ETF on our markets. It comes in behind the Vanguard Australian Shares Index ETF (ASX: VAS), the Vanguard MSCI Index International Shares ETF (ASX: VGS), the iShares S&P 500 ETF (ASX: IVV) and the BetaShares Australia 200 ETF (ASX: A200).

Unlike those four ETFs, though, QUAL isn't a market-wide index fund that blindly invests in companies according to their market capitalisation, with few other considerations.

Instead, it tracks an index that actively screens companies to identify their quality. These screens include factors like a stock's return on equity, earnings stability and financial leverage.

After applying these screens to a range of internationally listed shares, the VanEck International Quality ETF settles on a portfolio of around 300 different stocks, hailing from more than a dozen different countries. These countries range from Switzerland, Japan and the United Kingdom to China, Denmark and Ireland.

However, the vast majority of QUAL's portfolio is drawn from the United States of America, which commands more than three-quarters of this ETF's weighted holdings.

So, let's get into what you're actually buying when purchasing QUAL units in 2026.

QUAL: What's in this ASX ETF's box?

Here are the current top ten holdings of the VanEck International Quality ETF, as well as their respective weightings in the QUAL portfolio:

1. Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) at 5.67% of the total QUAL portfolio
2. Meta Platforms Inc (NASDAQ: META) at 5.02%
3. NVIDIA Corporation (NASDAQ: NVDA) at 4.64%
4. Apple Inc (NASDAQ: AAPL) at 4.62%
5. Microsoft Corporation (NASDAQ: MSFT) at 4.46%
6. Eli Lilly & Co (NYSE: LLY) at 3.44%
7. Visa Inc (NYSE: V) at 2.92%
8. ASML Holding N.V. (AMS: ASML) at 2.52%
9. Johnson & Johnson (NYSE: JNJ) at 1.86%
10. Walmart Inc (NYSE: WMT) at 1.77%

Some other significant QUAL holdings include Mastercard Inc (NYSE: MA), Netflix Inc (NASDAQ: NFLX), Costco Wholesale Corp (NASDAQ: COST) and Caterpillar Inc (NYSE: CAT).

Not only does this list reveal how dominant the US is in this ASX ETF, but it shows how similar its holdings are to a broad-market US index fund like the iShares S&P 500 ETF. We discussed that ETF just the other day, so check out how its holdings compare to QUAL's here.

This methodology seems to have worked quite well for the VanEck International Quality ETF, though. As of 31 December, QUAL units have returned an average of 14.8% per annum over the past ten years, and 22.85% per annum over the past three. It will be interesting to see if this performance keeps up in 2026.

This ASX ETF charges a management fee of 0.4% per annum.

The post Investing in the VanEck International Quality ETF (QUAL)? Here's what you're really buying appeared first on The Motley Fool Australia.

Done wrong, it's a monster of overlapping funds and hot themes that fizzle out. Here's how to build a sound ETF portfolio that works hard while you get on with life.

Start with the big, boring stuff

The backbone of any ETF portfolio is broad market exposure. Think global equities, not 'AI blockchain space robotics ETF of the week'. A total world or developed markets ETF, gives you instant access to thousands of companies across countries and sectors.

Here's an example balanced DIY ETF portfolio tailored for an Australian investor with a moderate risk/return profile. A balanced portfolio typically aims for roughly 50–60 % equities (growth) and 40–50 % bonds (defensive). It's a classic mix that aims to grow your wealth over time without the wild swings of an all-equity portfolio.

It's diversification in one click and diversification is the only free lunch in investing.

Home bias: helpful, not obsessive

It's fine to tilt towards your home market for familiarity, dividends and tax efficiency. But don't go all in, and allocate say 25% of the equities to homegrown stocks.

Vanguard Australian Shares Index ETF (ASX: VAS) and BetaShares Australia 200 ETF (ASX: A200) for instance both offer a broad coverage of Australia's largest stocks.

A healthy slice of international equities, about 30%, reduces your dependence on one economy, one currency and one political mood swing. Balance is the name of the game.

An ETF such as Vanguard MSCI Index International Shares ETF (ASX: VGS) gives you broad exposure to large and mid-cap companies in developed markets outside Australia like the US, Europe, Japan.

Add bonds for ballast

Equities are the engine; bonds are the shock absorbers. They won't make headlines at dinner parties, but they reduce risk and help smooth the ride when markets wobble.

iShares Core Composite Bond ETF (ASX: IAF) does just that. It's a broad fixed-income ETF covering Australian government and corporate bonds.

A broad bond ETF can reduce volatility and give you dry powder when stocks are on sale. The closer you are to needing the money, the more bonds deserve a seat at the table.

Keep costs on a tight leash

Fees matter. A lot. ETFs shine because they're cheap, but "cheap" isn't automatic. Check management fees and avoid paying extra for fancy packaging.

Over decades, even small fee differences can mean thousands of dollars more in your pocket—not the fund manager's.

Resist the siren song of themes

Thematic ETFs are exciting. They're also often late to the party. By the time a trend has an ETF, expectations are sky-high and valuations stretched.

If you must dabble, keep it small. Your core portfolio should be sturdy, not trendy.

Rebalance, don't react

Markets move. Your portfolio drifts. Rebalancing – once or twice a year – forces you to trim what's run hot and top up what's lagging.

It's disciplined, slightly boring and surprisingly powerful. Reacting to headlines, on the other hand, is a fast track to regret.

The golden rule: keep it simple

You don't need 15 ETFs to look sophisticated. Three to five well-chosen funds can cover global shares, home market exposure and bonds. Simple portfolios are easier to stick with and sticking with a strategy beats constantly chasing the next shiny thing.

The post This is how I would build a sound ETF portfolio from scratch appeared first on The Motley Fool Australia.