I've been looking at three Betashares ETFs that provide exposure to different parts of the share market.

Could they be worth buying today?

Here's what I think.

Betashares Nasdaq 100 ETF (ASX: NDQ)

One of the reasons I like the NDQ ETF is that it provides investors with exposure to businesses changing how people live and work.

Think about how much time we spend using digital services, shopping online, watching streaming platforms, and relying on increasingly sophisticated technology.

Many of the companies behind these activities are included in the NASDAQ-100 Index (NASDAQ: NDX), which this Betashares ETF tracks.

And I think there are plenty of reasons to expect these businesses to keep growing.

Artificial intelligence (AI) is creating new opportunities for companies involved in cloud computing, semiconductors, and software. Meanwhile, digital advertising, e-commerce, and other online services continue to play important roles in the global economy.

Of course, valuations can be demanding in this area of the market, and the fund's concentration in large US technology-related companies creates additional risk. Nevertheless, I would be happy buying the NDQ ETF for the long term.

Betashares Australia 200 ETF (ASX: A200)

The next Betashares ETF I would buy takes us much closer to home.

The A200 ETF tracks an index of 200 of Australia's largest listed companies, providing investors with broad exposure to the local share market.

What I like about this fund is that Australian businesses can offer something quite different from the technology-heavy US market.

Banks, mining companies, supermarkets, and healthcare providers all play important roles in the Australian economy. And many have established businesses capable of generating profits and paying dividends through different economic conditions.

I think the income potential is also attractive for investors who want regular cash returns alongside long-term capital growth.

There is considerable exposure to banks and resources, so I would still want international investments alongside it. But I think the A200 ETF is an excellent option for building Australian share market exposure.

Betashares India Quality ETF (ASX: IIND)

The third Betashares ETF I would consider buying is the IIND ETF.

India is one of the markets I'm especially interested in over the next decade. Its expanding middle class, growing financial services industry, and continued investment in infrastructure could create significant opportunities for businesses operating there.

For example, as more people enter the formal banking system and businesses adopt digital services, companies providing those products could enjoy growing demand.

The IIND ETF provides exposure to Indian companies selected using financial quality measures.

I like that approach because strong profitability and financial health could be important when investing in a rapidly developing economy.

Overall, I think the country's long-term economic prospects make the Betashares India Quality ETF a compelling investment to consider.

Foolish takeaway

I would rate all three Betashares ETFs as buys for Australian investors with a long investment horizon.

I like how they provide access to established US businesses, the Australian share market, and India's growing economy.

There will no doubt be periods when one market performs better than the others. But I think owning businesses across these regions could be a sensible way to participate in several long-term growth opportunities.

The post Are NDQ and these Betashares ETFs buys for Australian investors? appeared first on The Motley Fool Australia.

You'll receive your next dividend today.

Let's find out how much.

Betashares ETF dividends

Here are the final distribution amounts confirmed by Betashares for today's dividend payments.

The Betashares Australia 200 ETF (ASX: A200) will pay 167 cents per unit. 

Betashares Ethical Diversified Balanced ETF (ASX: DBBF) will pay 15.6 cents per unit.

The Betashares Ethical Diversified Growth ETF (ASX: DGGF) will pay 10.3 cents per unit.

Betashares Diversified All Growth ETF (ASX: DHHF) will pay 19.6 cents per unit.

The Betashares Diversified Balanced ETF (ASX: DVBA) will pay 14.6 cents per unit. 

Betashares Diversified Growth ETF (ASX: DVGR) will pay 14.3 cents per unit. 

The Betashares Diversified High Growth ETF (ASX: DVHG) will pay 12.3 cents per unit.

Betashares Ethical Diversified High Growth ETF (ASX: DZZF) will pay 4.6 cents per unit.

The Betashares Global Green Bond Currency Hedged ETF (ASX: GBND) will pay 23.1 cents per unit.

Betashares US Treasury Bond 20+ Year Currency Hedged ETF (ASX: GGOV) will pay 15 cents per unit.

The Betashares S&P Global High Dividend Aristocrats ETF (ASX: INCM) will pay 15.1 cents per unit.

Betashares FTSE Global Infrastructure Shares Currency Hedged ETF (ASX: TOLL) will pay 21.3 cents per unit.

The Betashares U.S. Treasury Bond 7-10 Year Currency Hedged ETF (ASX: US10) will pay 53.6 cents per unit.

Betashares Inflation-Protected U.S. Treasury Bond Currency Hedged ETF (ASX: UTIP) will pay 27.8 cents per unit.

Betashares Global Aggregate Bond Currency Hedged ETF (ASX: WBND) will pay 57.2 cents per unit.

View final distributions for Betashares ETFs that pay monthly dividends here.

DRP investors: Did you elect to receive new units instead of cash?

If you are participating in Betashares' distribution reinvestment plan (DRP), you will receive your new units today.

You can find out the DRP prices here.

Own other ASX ETFs?

Vanguard is also paying dividends today.

Vanguard manages some of the most popular ASX ETFs on the market.

They include Vanguard Australian Shares Index ETF (ASX: VAS), which is the largest ETF on the market, Vanguard Australian Shares High Yield ETF (ASX: VHY), and Vanguard MSCI Index International Shares ETF (ASX: VGS).

VanEck is also paying dividends to ASX ETF investors today.

Find out how much here.

Global X will pay its next round of dividends on Monday.

The post Dividend payday for ASX ETF investors! Here is how much you'll get appeared first on The Motley Fool Australia.

The ex-dividend date is today.

Investors will receive their dividends on 16 October.

Betashares ETF dividends

Here are the final distribution amounts for Betashares ETFs.

The Betashares Australia 200 ETF (ASX: A200) will pay 167 cents per unit. 

Betashares Ethical Diversified Balanced ETF (ASX: DBBF) will pay 15.6 cents per unit.

The Betashares Ethical Diversified Growth ETF (ASX: DGGF) will pay 10.3 cents per unit.

Betashares Diversified All Growth ETF (ASX: DHHF) will pay 19.6 cents per unit.

Betashares Diversified Balanced ETF (ASX: DVBA) will pay 14.6 cents per unit. 

Betashares Diversified Growth ETF (ASX: DVGR) will pay 14.3 cents per unit. 

Betashares Diversified High Growth ETF (ASX: DVHG) will pay 12.3 cents per unit.

Betashares Ethical Diversified High Growth ETF (ASX: DZZF) will pay 4.6 cents per unit.

Betashares Global Green Bond Currency Hedged ETF (ASX: GBND) will pay 23.1 cents per unit.

Betashares US Treasury Bond 20+ Year Currency Hedged ETF (ASX: GGOV) will pay 15 cents per unit.

Betashares S&P Global High Dividend Aristocrats ETF (ASX: INCM) will pay 15.1 cents per unit.

Betashares FTSE Global Infrastructure Shares Currency Hedged ETF (ASX: TOLL) will pay 21.3 cents per unit.

Betashares U.S. Treasury Bond 7-10 Year Currency Hedged ETF (ASX: US10) will pay 53.6 cents per unit.

Betashares Inflation-Protected U.S. Treasury Bond Currency Hedged ETF (ASX: UTIP) will pay 27.8 cents per unit.

Betashares Global Aggregate Bond Currency Hedged ETF (ASX: WBND) will pay 57.2 cents per unit.

View final distributions for Betashares ETFs that pay monthly dividends here.

Want to reinvest your dividends?

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

Betashares' registrar, MUFG Corporate Markets, must receive your DRP election by 5pm AEDT on Monday, 5 October.

The DRP prices for each ETF will be announced later today.

Own other ASX ETFs?

Vanguard has also announced its next lot of dividends for Vanguard Australian Shares Index ETF (ASX: VAS) and other ETFs.

The ex-dividend date for Vanguard distributions is today.

Vanguard will pay investors on 16 October.

BlackRock has also announced the next distributions for iShares S&P 500 ETF (ASX: IVV) and other ETFs in its stable.

Those ETFs have already gone ex-dividend.

BlackRock will pay its ETF investors on 9 October.

Global X has also announced its next dividend payments.

The ex-dividend date is tomorrow.

The post Own Betashares ASX ETFs? Here's your next dividend appeared first on The Motley Fool Australia.

Betashares has plenty of funds available on the ASX, but I think these three are among the best to consider for beginners.

Here is why.

Betashares Diversified All Growth ETF (ASX: DHHF)

The DHHF ETF would be one of my first choices for someone who wants to keep things simple.

Rather than focusing on one country or sector, the fund invests across Australian and international shares.

That means a single investment can provide exposure to thousands of growth companies around the world.

I think this can be helpful for beginners because diversification is built into the fund. An investor does not need to decide how much money to put into Australian shares, US shares, or emerging markets and then continually rebalance everything themselves.

For someone investing with a long timeframe, I think the Betashares Diversified All Growth ETF offers a straightforward way to own a broad collection of businesses and benefit if global share markets grow over time.

Betashares Australia 200 ETF (ASX: A200)

The A200 ETF is another fund I think beginners could consider.

It tracks 200 of the largest stocks listed on the ASX, providing exposure to a large part of the Australian share market through a single investment.

That includes businesses operating across areas such as banking, resources, healthcare, telecommunications, retail, and technology.

I like how simple this makes investing, which is good for beginners. Instead of trying to decide which Australian shares will perform best, investors can own a broad selection and participate in the overall performance of the local market.

There is also an income angle. Many large Australian shares pay dividends, which means the fund can provide distributions alongside potential capital growth.

Betashares Global Quality Leaders ETF (ASX: QLTY)

For investors wanting more international exposure, I think the QLTY ETF is worth a look.

Rather than simply buying the world's largest stocks, the fund looks for businesses displaying characteristics such as strong profitability, relatively stable earnings, and healthy balance sheets.

I like that approach because it focuses on companies that have already demonstrated financial strength.

The portfolio also gives Australian investors access to businesses and industries that are not well represented on the ASX. That can provide another source of long-term growth while reducing reliance on the Australian market.

For a beginner looking internationally, I think the Betashares Global Quality Leaders ETF provides an easy way to invest in a collection of established global businesses.

Foolish takeaway

I think all three of these Betashares ETFs make investing relatively easy.

The DHHF ETF provides broad diversification in one fund, the A200 ETF offers exposure to the Australian share market, and the QLTY ETF focuses on financially strong global businesses.

Overall, for a beginner, I think the most important thing is choosing an investment that makes sense to them and that they would be comfortable holding through the inevitable ups and downs of the share market.

The post 3 top Betashares ETFs for beginners to buy appeared first on The Motley Fool Australia.

The Australian ETF industry set new records in August, attracting $7 billion in net inflows and taking total assets to $382 billion. 

International equities led the way, while fixed income remained in focus as yields rose and CGT changes reshaped the investment landscape.

August overview

According to the Betashares Australian ETF Review: August 2026, The Australian ETF industry received an unprecedented $7 billion in net inflows. 

This was amid an ongoing decline in property values and conversation about reforms to CGT arrangements. 

This was above July's then record of $6.83 billion, marking back-to-back months above $6.5 billion for the first time in the industry's history. 

The number of ASX ETFs also passed 500 for the first time.

International Equities broke another monthly record in August at $3.8 billion, surpassing July's previous high of $3.56 billion. 

As a result of recent weakness in Australian equities, investors are rethinking their long-term investment plans with international equity ETFs emerging as a clear beneficiary. 

The category has now set a new all-time monthly record in consecutive months, while Emerging Market ETFs also saw record inflows this month.

Earnings season takeaways

August saw the majority of US and Australian listed companies report in the Q2 and H2 seasons, respectively. 

In the US 86% of companies exceeded EPS estimates, the highest % since Q2 2021, with the broader market achieving an astonishing 50% year-over-year earnings growth rate. 

This outsized growth was attributable in part to unrealised investment gains reported in earnings from big tech's unlisted AI investments, such as in Anthropic and OpenAI. 

Even excluding these windfalls operating EPS grew at 26%. 

The brightest sign of AI driven profitability gains came through reported 17% profit margins, the highest in more than 15 years. 

These developments continue to support the growth of large cap US technology companies. 

Within Australia there was also reason to rejoice with the ASX 200 achieving its first year of earnings growth since FY22. 

According to Tom Wickenden, Investment Strategist at Betashares, a majority of this was driven by outsized materials sector earnings which reported 36% growth. 

Alarmingly the weight of recent budget changes, rate hikes, and related poor consumer confidence saw next years earnings expectations being cut even as companies met expectations this season.

August winners 

In the month of August, the best performing ASX ETFs were: 

• BetaShares Global Gold Miners ETF – Currency Hedged (ASX: MNRS) – rose 31%
• Betashares Ethereum ETF (ASX: QETH) – rose 30%
• Global X Silver Miners ETF (ASX: SLVM) – rose 30%. 

In terms of top inflows: 

• Vanguard MSCI Index International Shares ETF (ASX: VGS)
• BetaShares Australia 200 ETF (ASX: A200)
• Betashares Funds – Betashares Global Shares ETF (ASX: BGBL). 

Another interesting note from the report was that copper has now overtaken iron ore in Australian mining earnings.

Copper is one of the most important materials in building global AI infrastructure and for the green energy transition. 

Data centres, power distribution, wiring. All of it uses copper at an extraordinary scale. So, while Australian investors cannot buy AI companies directly through a local index, Australia's mining sector is now one way to benefit from these buildouts.

The post ASX ETF market just surpassed $7 billion in net inflows – Here's where the money is going appeared first on The Motley Fool Australia.

For investors building a portfolio for the long haul, these funds can provide a simple way to gain exposure to hundreds of companies. Vanguard Australian Shares Index ETF (ASX: VAS) and BetaShares Australia 200 ETF (ASX: A200) target the local market, while Vanguard MSCI Index International Shares ETF (ASX: VGS) and BetaShares Nasdaq 100 ETF (ASX: NDQ) give investors access to overseas markets.

But which funds have delivered the goods?

VAS: the Australian market workhorse

The top Vanguard ETF offers exposure to the 300 largest companies listed on the ASX, providing investors with a straightforward way to own a slice of corporate Australia.

Its recent performance has been underwhelming, falling around 3% over the past month and 1% over 12 months. But short-term performance isn't necessarily the main attraction.

VAS provides broad exposure across Australian industries and a relatively attractive income stream. Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) are among its largest holdings, each representing more than 10% of the portfolio.

The fund's dividend yield is around 3.7%, although investors should remember that Australian equities are heavily concentrated in financials and resources.

A200: low-cost Australian exposure

BetaShares Australia 200 ETF (ASX: A200) offers a similar proposition to the Vanguard ETF VAS, tracking the 200 largest Australian companies.

It has also struggled recently, down around 3% over the past month and 1% over 12 months.

Where A200 really stands out is cost. Its management fee is just 0.04%, while funds under management have climbed to around $11 billion.

Like VAS, its largest holdings include CBA and BHP, so investors face a similar concentration risk.

For a low-cost Australian core holding, however, A200 remains difficult to overlook.

VGS: taking the portfolio global

VGS tackles one of the biggest drawbacks of an Australia-only portfolio: concentration.

The Vanguard ETF provides exposure to developed international markets and has returned around 8% over the past year.

The US accounts for a significant portion of the portfolio, with technology heavyweights including Apple Inc (NASDAQ: AAPL) and Nvidia Corp (NASDAQ: NVDA) among its largest holdings, each representing more than 5% at the time of writing.

That international diversification opens the door to industries and companies that have a much smaller presence on the ASX.

NDQ: the growth bet

If A200 is the steady option, ASX: NDQ is the higher-octane alternative.

NDQ has gained around 11% over one year and an impressive 75% over five years, powered by its exposure to technology and other US growth companies.

Nvidia and Apple are among its biggest holdings, while the fund's 0.48% management fee is considerably higher than the 0.18% that Vanguard ETF VGS charges.

After such a powerful run, the question for investors is whether they're buying tomorrow's growth or yesterday's winners.

Foolish takeaway

There isn't one obvious winner. A200 has the cost advantage, VAS offers broad Australian exposure, VGS provides greater diversification, while NDQ has delivered the strongest growth.

For long-term investors, the better choice may depend less on picking a winner and more on combining complementary ETFs.

The post Vanguard ETFs vs. Betashares ETFs: Who's coming out on top? appeared first on The Motley Fool Australia.

As September begins, three of the provider's biggest funds offer very different propositions — from cheap Australian exposure to high-growth US technology and an all-in-one global portfolio.

A200: The boring ETF that keeps delivering

The BetaShares Australia 200 ETF (ASX: A200) may not be the most exciting ETF on the market, but that is precisely its appeal. The fund returned 1% over the past 12 months, 5% year-to-date and 19% over five years. It gives investors broad exposure to Australia's biggest companies like BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA).

A200's standout strength is its rock-bottom 0.04% management fee, while its Funds Under Management (FUM) has climbed to around $11 billion. Its largest holdings include BHP and Commonwealth Bank, highlighting both the strength and weakness of the strategy.

For investors wanting a low-cost Australian core holding, A200 is hard to ignore. The problem is concentration. Australian equities are dominated by financials and resources, meaning investors are hardly getting a perfectly balanced slice of the economy. There is also no international exposure.

Still, after a relatively modest 12-month return, this Betashares ETF arguably looks more like a dependable long-term compounder than a momentum trade.

NDQ: The growth bet that has already run hard

If A200 is the steady option, BetaShares Nasdaq 100 ETF (ASX: NDQ) is the adrenaline shot.

NDQ has gained 6% YTD, 11% over one year and an impressive 75% over five years. Its portfolio is packed with global technology and growth giants. Nvidia Corp (NASDAQ: NVDA) and Apple Inc (NASDAQ: AAPL) are among its biggest holdings.

That exposure has been a major strength as artificial intelligence and technology spending have surged. But it is also the fund's biggest vulnerability. Investors are paying a 0.48% management fee for a portfolio heavily tilted towards US mega-cap growth stocks.

After such a powerful five-year run, the provocative question for September is whether investors are buying tomorrow's growth or yesterday's winners.

DHHF: The one ETF to rule them all?

The BetaShares Diversified All Growth ETF (ASX: DHHF) takes a completely different approach. It returned 4.5% YTD, 6% over one year and 38% over five years. This Betashares ETF offers exposure to thousands of companies across Australian, developed and emerging markets.

Its biggest underlying exposures include A200 and BGBL, giving investors a combination of Australian and global equities in one package.

The attraction is simplicity. With around $1.6 billion in FUM and a 0.19% management fee, DHHF gives investors a diversified 100%-growth portfolio without having to assemble one themselves.

Its weakness is equally straightforward: investors surrender some control over exactly where their money goes. And because DHHF is entirely growth assets, it can still take a serious hit when global sharemarkets turn south.

For September, DHHF may be the least exciting choice, but for investors seeking simplicity and diversification, that could be exactly the point.

The post Are these 3 top Betashares ETFs a buy in September? appeared first on The Motley Fool Australia.

That means understanding how a company makes money, whether it has a durable competitive advantage, or moat, and whether its shares are trading at a sensible price.

Those principles would shape how I'd invest $10,000 today.

Only buy businesses you understand

This rule can keep investors out of some spectacular investment manias.

Buffett didn't understand the dot-com boom, so he stayed away. He also never understood the investment case for cryptocurrencies, so Buffett didn't buy them.

That doesn't mean every technology stock or cryptocurrency is a bad investment. It's because you don't need to invest in everything.

There are thousands of businesses listed around the world. I'd rather own a handful of companies I understand than pretend I have an edge over the market.

Look for powerful economic moats

Buffett's famous "economic moat" concept is another cornerstone of my how to invest strategy.

I'm looking for businesses with something that makes it difficult for competitors to steal their customers and profits, whether that's a powerful brand, network effects, switching costs, intellectual property or sheer scale.

Apple Inc (NASDAQ: AAPL) is a good example. I understand what Apple sells, why customers want its products and the strength of its ecosystem. That's the sort of business I'd be comfortable owning for years.

But there's another crucial Buffett lesson: even a wonderful business can be a terrible investment if you pay too much. That's why valuation still matters.

Invesing $10,000 today

I'd make the Vanguard MSCI International Shares ETF (ASX: VGS) the foundation of my portfolio. I would allocate $3,500 to this ETF.

With just $10,000, I can't realistically own 50 individual international companies. Trading costs, research and portfolio management would quickly become excessive.

VGS gives me exposure to roughly 1,300 developed-market companies through a single investment. Instead of trying to predict which company will become the next superstar, I can own a slice of many of them.

If an investment compounded at 10% a year, it would roughly double every seven years. That's the sort of long-term compounding I'm targeting, although actual returns will vary.

I'd then put $2,000 into Macquarie Group Ltd (ASX: MQG) as a high-conviction investment. I'm deliberately overweighting a business I believe has a powerful moat and significant long-term earnings potential.

The question isn't whether Macquarie Group rises next month. I'd be asking whether I still want to own the business 10 or 20 years from now.

I'd put another $2,000 into Betashares Australia 200 ETF (ASX: A200). It can play a similar role to VGS by providing diversified exposure to Australian businesses without requiring me to buy dozens of individual stocks.

Finally, I'd keep $2,500 in cash. Why? Because a market correction or an exceptional business suddenly trading at an attractive valuation could create an opportunity to deploy that cash.

Think like a business owner

The biggest advantage may come from changing the timeframe.

If I'm investing for six months, I'm focused on the share price. If I'm investing for 20 years, I'm focused on the business.

"Forever" changes everything. I'm not trying to predict the next market winner. I'm trying to own great businesses, pay sensible prices and give compounding as much time as possible to work.

That's the Buffett philosophy I'd use to invest $10,000 today.

The post How to invest $10,000 the Warren Buffett way: Buy businesses, not stocks appeared first on The Motley Fool Australia.

It depends on whether you want broad Australian exposure or a bigger bet on global growth. But when it comes to returns, there's a clear winner.

A200: the Australian all-rounder

This top Betashares ETF aims to track the S&P/ASX 200 Index (ASX: XJO), providing exposure to the 200 largest companies listed on the Australian share market.

Its biggest holdings include BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA), each accounting for around 11% of the portfolio, while Westpac Banking Corp (ASX: WBC) makes up close to 5%.

The ASX 200 represents roughly 80% of Australia's share market by value, making A200 a straightforward way for investors to gain broad exposure to the local economy.

A200 has delivered a return of almost 20% over the past five years. It is up around 4.5% year to date and 2.5% over the past 12 months.

For Australian investors wanting a low-cost foundation for their portfolio, A200 can make a lot of sense.

NDQ: the growth-focused alternative

This Betashares ETF with $9 billion under management has delivered considerably stronger returns.

The fund aims to track the Nasdaq 100 Index, which contains 100 of the largest non-financial companies listed on the Nasdaq. That gives investors exposure to some of the world's biggest growth companies and significantly greater exposure to technology.

NDQ is up more than 10% year to date, compared with almost 5% for the ASX 200. Over 12 months, this Betashares ETF has gained around 14%, versus roughly 4% for the ASX 200.

The difference becomes even more striking over five years. NDQ has returned around 87%, compared with approximately 21% for the ASX 200.

Its portfolio includes major global technology and growth businesses, giving Australian investors a simple way to diversify beyond the domestic market.

And the winner is…?

Looking purely at returns, NDQ is the clear winner.

Its exposure to global technology and growth companies has produced substantially stronger performance than the broader Australian market over the past five years. But that doesn't automatically make NDQ the better ETF for every investor.

A200 offers broad exposure to Australian companies and can provide a useful core holding for an Australian portfolio. NDQ is more concentrated and carries greater exposure to growth and technology stocks, but it also offers access to some of the world's most powerful businesses.

For investors chasing historical growth and international diversification, NDQ looks like the more compelling bet. For those wanting a simple Australian market foundation, A200 remains hard to overlook.

The post A200 vs NDQ: one Betashares ETF is the clear winner appeared first on The Motley Fool Australia.

It is not a strategy that depends on picking the next great growth stock. Instead, this investing strategy depends on time, consistency and letting compounding do the heavy lifting.

Let's run through what the potential for you is.

Why $500 a month into ASX shares works

The appeal here is simplicity.

You are not trying to time the market or trade around reporting season. Rather, you are buying a slice of the Australian share market every single month, in good years and bad ones.

That means you automatically pick up more units when prices fall and fewer when they run hot, which smooths out your average entry price over the long haul.

Two of the cheapest ways to get exposure to the ASX are through the Betashares Australia 200 ETF (ASX: A200) and the Vanguard Australian Shares Index ETF (ASX: VAS).

A200 tracks the 200 largest companies on our market, and charges a management fee of just 0.04% per annum, which works out at $4 a year for every $10,000 invested.

VAS casts a slightly wider net, holding 321 positions as at 31 July for a 0.07% annual fee.

Either way, the cost of owning hundreds of ASX shares in a single trade is remarkably low.

What 20 years of ASX shares could be worth

Here is where it gets interesting.

Since its inception in May 2009, VAS has delivered an annualised return of 9.17% after fees.

Let's use that figure as a starting point. Investing $500 a month for 20 years means contributing $120,000 of your own money over that period.

At a 9.17% annual return with distributions reinvested, that would grow to roughly $341,000.

More than $221,000 of the final balance would be growth rather than contributions.

Markets rarely cooperate that neatly, so it is worth stress-testing the assumption.

At a more conservative 7% per annum, the same $500 a month becomes about $260,000. At 10%, the figure is closer to $380,000.

The range is wide, but every scenario finishes a long way ahead of the cash you actually put in.

The income these ASX shares could generate

The last piece of the puzzle is what the portfolio might pay you.

A200 currently carries a 12-month distribution yield of 3.2%, which becomes 4.2% on a gross basis once franking credits are counted.

Applied to a $341,000 balance, that is roughly $10,900 a year in cash distributions.

Grossed up for franking, that figure is closer to $14,300.

What's more, unlike a term deposit, the underlying capital also has the potential to keep growing alongside the earnings of Australia's largest listed businesses.

Foolish takeaway

None of this is guaranteed, and the past fortnight is a useful reminder of that.

The S&P/ASX 200 Index (ASX: XJO) fell in five of its last six sessions to Friday, dragged lower by the materials and financials sectors.

The Reserve Bank also left the cash rate on hold at 4.35% on 11 August, noting that headline inflation is still too high.

But that volatility is why a fixed monthly amount works so well. It removes the temptation to guess when the bottom has arrived.

For investors who want a simple way to own Australia's biggest companies, buying low-cost index ASX shares consistently remains one of the more dependable paths available.

The post $500 a month into ASX shares: Here's what that could be worth in 20 years appeared first on The Motley Fool Australia.

That's the cheeky catch with ETF investing: more tickers don't necessarily mean more diversification.

Are your ETFs secretly doing the same thing?

It's surprisingly easy to build an ASX ETF portfolio that looks diversified on paper but is anything but.

Investors might own Betashares Australia 200 ETF (ASX: A200), for example, alongside another Australian broad-market ETF like iShares Core S&P/ASX 200 ETF (ASX: IOZ) without realising just how much their holdings overlap.

The same problem is arguably even more obvious in US-focused ETFs. An investor might own iShares S&P 500 ETF (ASX: IVV) alongside a Nasdaq-focused ETF such as Betashares Nasdaq 100 ETF (ASX: NDQ).

At first glance, these look like different investments. But there's plenty of crossover, particularly among the US technology giants that dominate both indices. That means investors could be doubling down on the same companies without necessarily realising it.

When doubling up can make sense

There are, however, legitimate reasons to hold overlapping ASX ETFs.

Capital gains tax can be a big one. An investor sitting on a substantial unrealised gain may not want to sell an older ETF simply to switch into a cheaper or more suitable alternative.

Instead, they could leave the existing holding untouched and direct future contributions towards their preferred ETF. That's a perfectly reasonable strategy, depending on an investor's circumstances.

The problem arises when investors keep buying overlapping ETFs simply because each one sounds like a useful addition.

Keep the ETF core simple

One way to think about ETFs is to treat them as core portfolio holdings.

That doesn't mean investors can only own a handful of funds. But the core should ideally be straightforward enough that you know exactly what you're buying.

For example, an investor might have one ASX ETF providing exposure to Australian shares, another covering the S&P 500 and another providing broader international exposure.

Satellite investments can then be added around those core holdings, potentially covering areas such as bonds, fixed interest or specialised sectors.

The important thing is knowing what each ETF actually adds.

The diversification illusion

The danger of ETF overlap isn't just paying extra fees. It can also create a false sense of diversification.

You might own five or six ASX ETFs and feel wonderfully diversified, only to discover that many of them hold the same mega-cap companies.

That concentration can become painfully obvious when markets turn bearish and several supposedly different ETFs fall together.

For investors, the lesson is simple: don't count ETFs. Count the underlying exposures. A smaller portfolio of complementary ETFs can provide better diversification than a sprawling collection of funds that all own the same stocks.

After all, the goal isn't to collect ETFs. It's to build a portfolio that actually does what you think it does.

The post Too many ASX ETFs? You could be paying twice for the same shares appeared first on The Motley Fool Australia.

With $5,000 to deploy, the goal is not to find the next rocketship.

The goal is to own a handful of quality businesses, understand why you own them, and start the compounding process.

Here are three I would consider.

1. The core of a first ASX shares portfolio: Betashares Australia 200 ETF

The first of my three ASX shares is not a company at all.

The Betashares Australia 200 ETF (ASX: A200) holds the 200 largest businesses listed on the ASX in a single trade.

That includes the banks, the big miners, the supermarkets, and everything in between.

The ETF's management fee is 0.04% per year. On a $2,000 holding, that works out to roughly 80 cents annually.

Distributions are paid quarterly and typically arrive with franking credits attached.

For a first portfolio, this ETF does the heavy lifting on diversification and takes the guesswork out of stock picking.

2. The blue chip: Wesfarmers

Wesfarmers Ltd (ASX: WES) owns Bunnings, Kmart, Officeworks and a chemicals and fertilisers division.

It is a business most Australians are familiar with. Sometimes, familiarity is useful when learning how to analyse companies.

The conglomerate has also kept growing through a difficult stretch for household budgets.

Many of its businesses are defensive, meaning consumers continue to buy products even during a downturn. For example, Bunnings and Kmart both run everyday low-price models, which tends to help when shoppers tighten their purse strings.

In its most recent earnings, its FY26 half-year result in February, Wesfarmers managed to grow revenue 3.1% to $24.2 billion, while growing statutory net profit after tax 9.3% to $1,603 million.

The board declared a fully franked interim dividend of $1.02 per share, an increase of 7.4%.

Return on equity excluding significant items came in at 32.7%, which is an outstanding figure for a business of this size.

Wesfarmers is scheduled to report its full-year result in late August.

3. The income leg of your ASX shares portfolio: Telstra

Telstra Group Ltd (ASX: TLS) rounds out my three ASX shares.

The telco is about as defensive as the local market gets. Australians keep paying their phone bills regardless of what interest rates do.

In its first-half result, Telstra grew mobile services revenue 5.6% and declared an interim dividend of 10.5 cents per share.

The company also expanded its stock buy-back from up to $1 billion to up to $1.25 billion for FY26.

Telstra may not be a growth company, but it is a steady, cash-generative business that pays you while you wait.

Foolish takeaway

A reasonable split might be $2,000 into A200 and $1,500 into each of the two companies.

That gives you broad market exposure, a quality operator, and a reliable income payer.

None of these ASX shares will double overnight, and so for investors looking to get rich quick these may not be the right picks.

But for investors serious about creating long-term wealth, these three are a good starting point.

The post Top 3 ASX shares to invest your first $5,000 in appeared first on The Motley Fool Australia.

Other investors may be looking to allocate savings to shares or ASX ETFs for the first time. 

If you fall into either basket, there are several ways to build lifetime wealth. 

Here at The Motley Fool, we advocate for a long-term, diversified portfolio.

ASX ETFs offer a simple and effective way to achieve this in just one or two trades. 

The magic of compounding 

One of the core reasons we advocate for long-term investing is the impact of compounding returns.

A simple way to think about compounding is that your money earns returns, and then those returns earn returns too.

For example, if you invest $10,000 in an ASX ETF and it earns an average 10% per year with all dividends reinvested:

• After 10 years: $25,900
• After 20 years: $67,300
• After 30 years: $174,500
• After 40 years: $452,600

You only invested $10,000, but by staying invested and reinvesting your returns, compounding does the heavy lifting over time. 

While this is just a hypothetical example, there are ASX ETFs that have brought annualised returns around this mark. 

This is why long-term investing in ASX ETFs can build significant wealth.

Here are three examples that are built for the long-term. 

BetaShares Australia 200 ETF (ASX: A200)

As the name suggests, this fund from Betashares provides exposure to the S&P/ASX 200 Index (ASX: XJO). 

The ASX 200 is an index that tracks the 200 largest companies listed on the Australian market. 

It represents around 80% of the total value of the Australian share market, making it a good snapshot of how the Australian economy and share market are performing.

Over the last five years, it has brought an annualised return of almost 8% according to Betashares. 

This kind of fund can be a great starting point for an Aussie investor trying to capture the broader Australian market. 

iShares S&P 500 ETF (ASX: IVV)

Turning our attention to the US market, this iShares fund applies the same concept to the largest US stocks. 

It tracks the S&P 500 Index (SP: .INX), which is 500 of the largest publicly traded companies in the United States.

Over the last five years, it has brought an annualised return of over 13%. 

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another great set and forget option is this fund from Vanguard. 

One of the most popular ASX ETFs, it invests in over 1,000 companies from around 23 countries, including the U.S., Japan, the U.K., Canada, France, and Switzerland.

It is a great way to diversify your portfolio in just one trade. 

Over the last five years, it has returned over 10% per annum. 

The post 3 ASX ETFs to buy in FY27 and hold for life  appeared first on The Motley Fool Australia.

Instead of researching and buying individual companies, one investment can provide exposure to dozens, hundreds, or even thousands of shares.

That said, here are five ASX ETFs I think are worth considering in August if you are starting out.

Betashares Australia 200 ETF (ASX: A200)

The A200 ETF provides exposure to 200 of the largest companies listed on the Australian share market.

This includes businesses from banking, mining, healthcare, retail, telecommunications, and other major industries.

I think it offers beginners a straightforward way to invest in Australian shares without needing to decide which individual companies will perform best.

The fund also pays distributions, although both the income and unit price can rise or fall over time.

Betashares Global Shares ETF (ASX: BGBL)

Australia represents only a small part of the global share market.

The BGBL ETF allows investors to spread their money across more than 1,000 companies from developed countries outside Australia, including the United States, Japan, and major European markets.

This gives beginners access to industries that are less prominent on the ASX, particularly global technology, healthcare, consumer brands, and industrial businesses.

I think the Betashares Global Shares ETF is a simple option for someone who wants broad international exposure rather than trying to select individual overseas shares.

Vanguard Diversified High Growth Index ETF (ASX: VDHG)

The VDHG ETF is designed for investors who want several types of investments bundled together.

The fund holds Australian shares, international shares, emerging market shares, and smaller companies. It also keeps a modest allocation to defensive investments such as bonds.

Vanguard manages the mix and regularly brings it back towards its target allocations.

I think that removes several decisions that can overwhelm a beginner. Investors still need to accept share market volatility, but they do not have to choose and manage several different funds themselves.

iShares S&P 500 ETF (ASX: IVV)

The IVV ETF follows the S&P 500 Index, which contains 500 leading US companies.

These businesses operate across technology, healthcare, financial services, consumer products, communications, and many other parts of the economy.

The fund can give beginners exposure to companies such as Apple, Microsoft, and NVIDIA through one ASX investment.

I think the strength and adaptability of major US businesses make the iShares S&P 500 ETF an attractive long-term option, although currency movements will affect returns for Australian investors.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The NDQ ETF invests in 100 of the largest non-financial companies listed on the Nasdaq.

It has significant exposure to technology and businesses benefiting from cloud computing, artificial intelligence, semiconductors, software, and digital services.

I think the Betashares Nasdaq 100 ETF could suit beginners seeking stronger growth potential who are comfortable with larger price swings.

The NDQ ETF is more concentrated than a broad global fund, so I would expect greater volatility when technology shares fall out of favour. Its higher growth potential comes with more risk.

Foolish takeaway

There is no single ETF that will suit every beginner. The A200 ETF offers broad Australian exposure, while the BGBL and IVV ETFs provide different routes into international markets. The VDHG ETF handles much of the diversification work within one investment, while the NDQ ETF provides a more growth-focused choice.

I think the best starting point is the fund an investor understands and feels comfortable holding.

Each of these ETFs offers a simple way to begin investing in August, but I think beginners should consider their goals, time horizon, and tolerance for volatility before buying.

The post 5 top ASX ETFs for beginner investors in August appeared first on The Motley Fool Australia.

The June quarter consumer price index is the final major data release before the board meets, and economists are split on the outcome.

Where the interest rate debate stands

The cash rate currently sits at 4.35% after three increases across 2026.

The board left rates unchanged in June while it assessed the impact of those earlier moves.

Its language was not especially comforting, noting that headline and underlying inflation are "still too high".

Commonwealth Bank, NAB and ANZ all expect the cash rate to hold through the remainder of 2026, while Westpac continues to forecast another hike.

The Reserve Bank, however, has been careful not to close the door on either outcome.

Its June statement committed the board to doing what is necessary to return inflation to target, "including increasing the cash rate target further if required".

What Wednesday's number needs to show

The most recent monthly reading had annual inflation at 4.0% in the 12 months to May, down from 4.2% in April.

That headline improvement was flattered by the halving of the fuel excise on 1 April.

The underlying picture was considerably less reassuring.

Trimmed mean inflation, the measure the Reserve Bank watches most closely, rose to 3.6% from 3.4%. That is the highest reading since September 2024 and remains well above the 2% to 3% target band.

Services inflation also picked up to 3.7%, while housing costs rose 6.5% over the year.

The Reserve Bank's own baseline forecast has headline inflation peaking at 4.8% in the June quarter before easing as fuel prices decline.

Brent crude topping US$100 a barrel last week makes that assumed decline look a good deal less certain than it did in May.

What an interest rate move means for ASX shares

ASX investors have limited ability to dodge a rate decision, but it is still worthwhile to understand potential exposure.

This is particularly true for investors who have broad exposure to the market through ETFS like the Betashares Australia 200 ETF (ASX: A200), which tracks the largest 200 companies on the ASX, or the Vanguard Australian Shares Index ETF (ASX: VAS), which casts a slightly wider net across the ASX 300.

Both ETFs are heavily weighted towards banks and miners, which respond to rate moves in opposite directions. Higher rates typically support bank net interest margins while pressuring the valuations placed on long-duration growth companies.

Overall, the ASX 200 delivered a total return of roughly 7% in FY26, including dividends, which is well short of its long-run average.

A hawkish surprise on Wednesday would likely pressure the market in the short term, whereas a soft print could do the opposite.

Foolish takeaway

Independent economist Saul Eslake has said he expects an August increase, but would reconsider if inflation comes in around 3% to 3.25% or lower. That is a useful marker to hold in mind when the numbers land.

It is worth remembering that a single interest rate decision rarely determines long-term returns.

Investors who bought index funds through the tightening cycle of 2022 and 2023 have generally been rewarded for sitting still.

The risk may not be that the Reserve Bank moves, but rather that reacting to a short-term number may have implications for longer-term returns for ASX investors.  

The post Why Wednesday's inflation print may move the RBA's next interest rate call appeared first on The Motley Fool Australia.

I think the best buy-and-hold ETFs make that decision easier by giving investors exposure they can remain confident in for years.

For that reason, the three Betashares ETFs below would be high on my list.

Betashares Global Shares ETF (ASX: BGBL)

I would begin with a broad international holding. The BGBL ETF invests in approximately 1,000 stocks across more than 20 developed markets outside Australia. That gives investors access to many of the businesses shaping how the world spends, communicates, travels, receives healthcare, and adopts new technology.

I like this fund because it does not require investors to predict which country or industry will lead the next decade.

The United States represents a large part of the portfolio, but the ETF also reaches into Europe, Japan, Canada, and other developed markets. Its holdings span technology, healthcare, financial services, consumer goods, industrials, and more.

That breadth allows the portfolio to change naturally as companies rise and fall in importance.

There will be periods when international shares struggle or the Australian dollar weighs on returns. But over a long holding period, I think the BGBL ETF provides a straightforward way to participate in the growth of global businesses that are largely absent from the ASX.

Betashares Australia 200 ETF (ASX: A200)

Australian investors may already earn their income, own property, and hold superannuation assets locally. Even so, I think Australian shares can still deserve a place in a balanced portfolio.

The A200 ETF owns 200 of the largest companies listed on the ASX.

This gives investors exposure to the businesses financing Australian homes, supplying commodities to global markets, operating supermarkets, building infrastructure, providing healthcare, and paying many of the market's largest dividends.

The local market has a sizeable weighting towards banks and resources companies, so the A200 ETF will move with interest rates, commodity prices, and the health of the Australian economy. That concentration is one reason I would hold it alongside international shares rather than rely on it alone.

For someone who wants broad local exposure without choosing between individual banks, miners, retailers, and healthcare companies, I think this fund is an attractive long-term holding.

Betashares Global Quality Leaders ETF (ASX: QLTY)

The final Betashares ETF takes a more selective approach.

The QLTY ETF holds 150 global stocks outside Australia that rank highly on measures linked to quality, including profitability, balance sheet strength, and earnings stability.

I see this as a way to lean a portfolio towards businesses that have already shown an ability to manage capital well.

Strong companies can often keep investing when weaker competitors are forced to retreat. They may have loyal customers, healthier margins, lower debt, or products that remain in demand through changing economic conditions.

A quality screen will not protect investors from every fall. These companies can still become expensive, disappoint the market, or struggle when investors favour more speculative areas.

But for money I wanted to leave invested for many years, I would be comfortable placing greater weight on businesses with strong financial foundations.

Foolish takeaway

Buy-and-hold investing works best when the portfolio does not need constant repair.

The BGBL ETF could provide broad access to global growth, the A200 ETF can keep investors connected to Australian earnings and dividends, while the QLTY ETF offers exposure to financially strong international businesses.

Combined, I think this makes these Betashares ETFs great buy and hold options for Australian investors.

The post Why these Betashares ETFs could be strong buy and hold investments appeared first on The Motley Fool Australia.

Building lasting wealth is rarely about a single big win, but rather about small, repeatable habits.

Do them consistently, and the results can be incredible.

Here are some of the best saving techniques to help you build long-term wealth.

Simple saving techniques that build wealth

Start by making your money work for you.

Move money into savings the day you get paid, before you spend a cent.

Automating this step removes willpower from the equation, and so when the transfer happens by itself, you never miss the money.

Next, get on top of the big three costs: housing, transport, and food.

These usually dwarf the small stuff like your morning coffee.

Trimming a large recurring bill saves you money every single month.

Similarly, refinancing a loan or renegotiating a plan can free up hundreds of dollars a year.

Another of the most effective saving techniques is tracking where your money goes. You cannot fix what you cannot see.

A simple spreadsheet or budgeting app will do the job. Review it once a month and look for leaks.

Finally, treat windfalls with care.

Tax refunds, bonuses, and pay rises are easy to spend away. Instead, directing even half of these windfalls to savings can accelerate your progress.

None of these steps requires a finance degree. They just require consistency.

Put your savings to work

Saving is only half the story.

Cash sitting idle in the bank slowly loses value to inflation.

To get a grip on inflation, the Reserve Bank of Australia held the cash rate at 4.35% in June 2026.

Although that is a reasonable return on savings, shares have historically returned more to ASX investors.

The S&P/ASX 200 Index (ASX: XJO) has delivered a long-term annualised return of roughly 8.2%, including dividends.

But what if you don't know what to invest in? Low-cost index funds (or ETFs) are a simple way to capture market returns without having to do any of the heavy lifting.

Two examples of this are VAS and A200.

The Vanguard Australian Shares Index ETF (ASX: VAS) tracks the top S&P/ASX 300 Index (ASX: XKO) companies, whereas the BetaShares Australia 200 ETF (ASX: A200) tracks the largest 200.

Both charge tiny fees of 0.04% and can be bought in a single trade.

Reinvesting distributions from these funds, along with additional savings, lets compounding do the heavy lifting.

Over many years, that compounding effect can turn modest savings into serious wealth.

Foolish Takeaway

None of these saving techniques is complicated, which is the point.

Pay yourself first, automate, track your spending, and invest the difference.

Start small if you need to, then build from there.

Repeat the process long enough, and with compounding, the numbers can look after themselves.

Master a few simple saving techniques today, and your future self may thank you.

The post Best money-saving techniques to build long-term wealth appeared first on The Motley Fool Australia.

For investors who understand how to use it, it is one of the most tax-effective passive income generators available in the Australian financial system.

Earnings inside super during the accumulation phase are taxed at just 15%, compared to marginal rates outside super that can exceed 45%.

In retirement, those earnings become completely tax-free.

That tax advantage, compounded over decades, is what turns ordinary dividend income into extraordinary retirement wealth.

Start with what you actually own inside superannuation

Most Australians sit in a default balanced or growth fund option and have no clear picture of what they actually own.

The first step toward generating passive income from super is understanding your current investment mix and whether it is oriented toward income-producing assets.

Furthermore, the concessional contributions cap just rose to $32,500 from 1 July 2026. This has given investors more room to build a passive income portfolio inside this tax-advantaged structure.

Every additional dollar contributed at the 15% concessional rate rather than at a higher marginal rate is a dollar compounding more effectively toward retirement income.

Here are three ASX stocks known for their ability to generate passive income.

Commonwealth Bank of Australia: the fully franked income anchor

Commonwealth Bank of Australia (ASX: CBA) is the most widely held stock inside Australian superannuation funds for a straightforward reason.

CBA pays a fully franked dividend, expected at approximately $5.15 per share in FY26.

For a super fund in accumulation phase taxed at 15%, the 30% franking credit attached to CBA's dividend generates an additional net refund. This effectively lifts the after-tax yield above the headline figure.

At the current share price of approximately $169, CBA's fully franked dividend implies a grossed-up yield of approximately 4.4%.

Inside super, that turns into one of the most tax-effective income stream available from any large-cap ASX stock.

What's more, CBA has grown its dividend every year since 2021, giving investors a passive income stream that grows consistently each year.

Betashares Australia 200 ETF: instant diversification at the lowest possible cost

For investors who want broad exposure to Australia's dividend economy without picking individual stocks, the Betashares Australia 200 ETF (ASX: A200) is the most cost-efficient option available.

A200 charges a management fee of just 0.04% per annum. This is the lowest among Australian share ETFs. Furthermore, the ETF pays quarterly distributions with 85.14% franking.

That quarterly income, combined with partial franking credits, gives super fund investors regular cash flow that compounds more frequently than the twice-yearly dividends paid by most individual ASX stocks.

The underlying index has returned approximately 8.53% per annum including dividends since inception.

For investors starting out with passive income investing inside super, A200 is the simplest and most effective starting point available.

BHP: commodity income with a structural growth tailwind

BHP Group Ltd (ASX: BHP) adds a third dimension: commodity income with a strong structural growth story behind it.

The company pays fully franked dividends twice per year. Specifically, BHP pays a trailing twelve-month dividend of approximately $1.96 per share, implying a yield of approximately 3.36% at the current share price of $58.28.

For the first time in BHP's 136-year history, copper earnings exceeded iron ore contributions in the first half of FY26. This was driven by AI data centre construction, electric vehicle adoption, and grid infrastructure investment.

This structural tailwind supports the earnings that fund BHP's dividend, giving superannuation fund income investors a defensible long-term outlook.

Foolish takeaway

Passive income from superannuation is the natural result of investing in quality, income-producing assets inside a structure that taxes earnings at 15% rather than your marginal rate.

CBA provides the fully franked income anchor. A200 provides the low-cost diversification with quarterly distributions. BHP provides the commodity income growth tailwind.

Together, they form the foundation of a portfolio that compounds into meaningful passive income over a superannuation career.

The post Do you want to earn passive income from your superannuation? Here's a guide to get you started appeared first on The Motley Fool Australia.

Three meaningful changes took effect on 1 July 2026 and will appear in your FY27 return.

Understanding each of them before you lodge will help you maximise your refund and avoid common mistakes.

Change one: the 15% tax rate

The most important change is the reduction in the marginal tax rate on income between $18,201 and $45,000.

That rate dropped from 16% to 15% from 1 July 2026, delivering a tax cut worth up to $268 per year to every Australian taxpayer.

For most salary and wage earners, this adjustment was already applied to your take-home pay from 1 July through your employer's PAYG withholding calculations.

When you lodge your FY27 return, the ATO will calculate your tax at the new 15% rate automatically.

You do not need to do anything specific to claim this benefit.

However, if you changed jobs during the year, started freelancing, or had irregular income, your employer may not have withheld at exactly the right rate.

Change two: the $1,000 instant work-related expense deduction

From FY27, every Australian who earns salary or wage income can claim up to $1,000 in work-related expenses without keeping a single receipt.

Previously, the receipt-free limit was $300.

The new $1,000 deduction applies automatically when you lodge your return.

For a worker on a 32.5% marginal tax rate, claiming the full $1,000 deduction is worth approximately $325 in tax savings.

The deduction cannot be combined with specific expense claims above $1,000. If your actual work-related expenses exceed $1,000 and you have receipts to prove it, you should claim the actual amount rather than the instant deduction.

Work-related expenses include items like home office costs, professional development, tools, uniforms, and technology used for work.

Change three: higher Medicare levy thresholds

Medicare levy low-income thresholds increased from 1 July 2025 and apply to the FY27 return.

The threshold for singles rose to $28,011, up from $27,222, meaning more low-income Australians will pay no Medicare levy on their FY27 return.

The family threshold rose to $47,238 and increases by $4,338 for each dependent child or student.

For single seniors and pensioners, the threshold rose to $44,268.

If you earn below these thresholds, you may be entitled to a Medicare levy reduction or exemption when you lodge.

What to do with any tax refund

A tax refund is not a windfall. Instead, it is the return of money you overpaid during the year.

However, how you deploy a refund still matters.

Spending it immediately on discretionary items means the tax cut effectively disappears into everyday consumption.

Investing it, even a modest amount, is the start of a compounding habit.

Commonwealth Bank of Australia (ASX: CBA) is the most widely held ASX share among Australian retail investors. The company offers a fully franked dividend yield and long-term earnings track record that suits a regular, small-investment approach.

Alternatively, for investors who want instant diversification rather than individual stock selection, the Betashares Australia 200 ETF (ASX: A200) charges just 0.04% per annum and tracks the performance of 200 of Australia's largest companies in a single trade.

For global technology and AI exposure, the Betashares Nasdaq 100 ETF (ASX: NDQ) gives investors access to the world's largest non-financial technology companies. This will includes SpaceX following its Nasdaq-100 inclusion this week.

Foolish takeaway

Your FY27 tax return will be simpler in some ways and more lucrative in others.

The 15% rate and the $1,000 instant deduction both reduce your tax liability automatically.

The Medicare levy changes may eliminate the levy entirely for lower-income earners.

Understanding the changes before you lodge means you claim what you are entitled to, rather than leaving money on the table.

The post Your FY27 tax return will look different. Here's what changed and how to prepare appeared first on The Motley Fool Australia.

A new report from Betashares has reinforced that the new capital gains tax (CGT) changes may have handed index ETFs like this one an advantage.

What is changing with the Capital Gains Tax?

Currently, if you own shares for more than 12 months in Australia, you generally get a 50% Capital Gains Tax (CGT) discount.

On 12 May 2026, as part of the 2026-27 Federal Budget, the Government announced it would reform negative gearing and capital gains tax (CGT) arrangements.

These changes will apply from 1 July 2027:

• Limit negative gearing for residential property investments to new builds.
• Replace the 50% CGT discount for individuals, trusts and partnerships with cost base indexation and a 30% minimum tax rate on capital gains.

What does this mean for investors?

In the latest report from Betashares, the ETF provider contends that under the new laws, it could make it more expensive (tax-wise) to own a portfolio of individual shares.

However owning an ASX ETF (like Betashares A200) may become more tax-efficient.

The proposed CGT indexation rules would reduce after-tax returns for investors who hold diversified portfolios of individual shares. 

This is because losses on underperforming stocks cannot fully offset gains on outperforming stocks after adjusting for inflation.

By contrast, investors who hold a single pooled investment, such as an ETF, avoid this issue. This is because gains and losses are effectively netted within the fund, resulting in a lower overall tax burden.

Therefore, index ETFs could theoretically become more tax-efficient than directly holding a portfolio of shares under the new CGT regime.

The case for this ASX ETF

According to Betashares, one way an investor can seek to reduce the CGT indexation tax drag that stems from holding a portfolio of stocks in their own name is to invest in a market-capitalisation index tracking ETF instead.

A pooled managed investment scheme, like a managed fund or an ETF, will invariably have some capital gains that need to be distributed on an ongoing basis. But index ETFs, such as A200, are already very tax efficient at minimising those ongoing tax consequences.

And now they have the additional benefit of being able to effectively offset winners and losers within the ETF. When an investor disposes of an ETF, the capital gain is calculated based on the ETF on-market price they buy and sell at, not at the underlying stock level.

Foolish takeaway

While investors should be aware of the upcoming changes to CGT, taxes are only one part of your overall return.

The quality of your investments, diversification, risk tolerance, and time horizon are often more important.

Your personal circumstances also matter.

The impact of the proposed CGT changes depends on your marginal tax rate, whether you invest personally or through a trust, company, or superannuation fund, and how often you buy and sell investments.

The post Why the CGT changes may have handed this ASX ETF an advantage : Expert appeared first on The Motley Fool Australia.