BlackRock has announced the estimated distributions (dividends) for a range of its ASX iShares exchange-traded funds (ETFs).

The fund manager will pay investors on 21 April.

Dividends for iShares ASX ETFs

Here are the estimated dividends that investors will receive on 21 April.

The amounts will be finalised tomorrow, which is also the record date.

These iShares ETFs are trading ex-dividend today.

How is ASX IOZ performing?

The ASX IOZ aims to mirror the performance of the S&P/ASX 200 Accumulation Index, before fees and expenses.

The Accumulation Index is different to the S&P/ASX 200 Index (ASX: XJO) because it assumes the reinvestment of dividends.

Therefore, the index reflects total returns over a given period, whereas the benchmark ASX 200 Index only reflects capital gains.

This ETF provides an easy way to invest in the top 200 companies by market capitalisation on the ASX.

It includes exposure to the biggest ASX 200 banks and mining shares, which have traditionally paid some of the largest dividend yields.

They include the market's largest company, Commonwealth Bank of Australia (ASX: CBA), as well as BHP Group Ltd (ASX: BHP) shares.

Over the 12 months to 31 March, ASX IOZ returned 11.71% to investors.

The ETF's three-year average return is 9.47%. The five-year average return is 8.56%.

The management fee is 0.05%.

The post Own ASX IOZ or other iShares ETFs? Here is your next dividend appeared first on The Motley Fool Australia.

Those ETFs include iShares Core S&P/ASX 200 ETF (ASX: IOZ) and iShares S&P/ASX Small Ordinaries ETF (ASX: ISO).

IOZ ETF delivered a solid 10.36% return for 2025 in line with the strength of the benchmark S&P/ASX 200 Index (ASX: XJO) last year.

The ISO ETF outperformed, producing a 24.54% total return as ASX small-cap shares benefitted from three interest rate cuts.

Small-caps have market valuations of between a few hundred million dollars and $2 billion, and carry more debt to fund their growth.

Perpetual portfolio manager Alex Patten said 2025 represented the first time that small-caps had outperformed "in a number of years".

Patten said:

… now that rates are starting to come down, we're seeing more interest in small and micro caps and bit more liquidity in the market.

How much will ASX ETF investors receive today?

We have summarised the dividend amounts that investors will receive today, rounded to two decimal places.

The post Own IOZ or ISO ETFs? It's dividend payday for you! appeared first on The Motley Fool Australia.

Or perhaps iShares S&P/ASX 20 ETF (ASX: ILC) or iShares S&P/ASX Small Ordinaries ETF (ASX: ISO)?

BlackRock has just announced the estimated distributions (dividends) for its ASX iShares exchange-traded funds (ETFs).

BlackRock will pay its next round of dividends on 19 January.

If you own any of these ETFs and want to top up your holdings ahead of this round of payments, you'd better be quick.

The ex-dividend date is tomorrow.

How much will iShares ASX ETF investors receive?

Here are the estimated dividends that investors will receive on 19 January.

The amounts will be finalised on Thursday, which is the record date.

Prefer to reinvest your dividends?

A distribution reinvestment plan (DRP) is available for all of the ASX iShares ETFs above.

A DRP allows investors to reinvest their distributions automatically each time dividends are paid.

It's a helpful set-and-forget option for investors seeking compounding returns over the long term.

BlackRock will be accepting DRP elections up until 5pm today.

The post Own ASX IOZ or other iShares ETFs? Dividends just announced! appeared first on The Motley Fool Australia.

If so, we have exciting news for you!

BlackRock has just announced the estimated distributions for a range of its ASX iShares exchange-traded funds (ETFs).

Distributions is just another word for dividends. BlackRock will make the next round of payments on Wednesday, 22 October.

If you own any of these ETFs and want to top up your holdings ahead of the next distribution payment, you'd better be quick.

The ex-dividend date is tomorrow.

How much will iShares ASX ETF investors get?

Here are the estimated distributions for a range of ASX iShares ETFs.

Bear in mind that the amounts shown above are estimated distributions. BlackRock will advise us of the finalised figures on Monday.

Investors will receive their dividends on 22 October.

Want to reinvest your dividends?

A distribution reinvestment plan (DRP) is available for all of the ASX iShares ETFs above.

The DRP allows shareholders to reinvest their distributions automatically each time dividends are paid.

It's a helpful set-and-forget option for investors seeking compounding returns over the long term.

BlackRock will be accepting DRP elections up until 5pm today.

ASX IOZ share price snapshot

The IOZ ETF is trading at $36.43 per unit, up 0.5% on Thursday and up 9.2% over the past year.

ASX IOZ seeks to track the performance of the S&P/ASX 200 Accumulation Index, before fees and expenses.

The post Own ASX IOZ or other iShares ETFs? Here's your next dividend appeared first on The Motley Fool Australia.

Interest rate cuts are often universally celebrated in the media. However, they might not be welcomed by all Australians.

Falling interest rates do mean cheaper mortgages and loans. But lower rates also mean that the interest investors and savers can enjoy from cash investments like savings accounts and term deposits drops too.

This can be a hard pill for many investors, particularly those who are retired, to swallow. These investors often hold a significant amount of capital in bank accounts and term deposits, thanks to the safety and capital protection that they offer. For those Australians who are no longer working, this protection is important, as they are not always comfortable holding the vast majority of their capital in the share market.

So, what could be the top places to park your cash following the RBA's interest rate cut last week?

Interest rate cut: Where to get the best bang for your buck?

Well, to start with, this isn't 2021. You can still get a term deposit offering a decent yield in 2025, just not quite at the levels we saw at the start of the year. To illustrate, today, you can obtain a 12-month term deposit with an interest rate as high as 4.5% from select providers. You'll have to look outside the big four banks, though.

For 24-month deposits or longer, the top rate you could expect from the current market is around 4.3%.

Even longer than that, though, and rates start dropping fast. The best rate for a three-year term is about 4.1%. For a five-year term, you'd be lucky to get anything over 3.75% per annum.

There are other options, though.

You could look at a cash exchange-traded fund (ETF). These investments hold cash assets as part of an underlying portfolio. Often at slightly higher interest rates than retail banking products.

For example, the BetaShares Australian High Interest Cash ETF (ASX: AAA) currently offers an interest rate of 3.94% per annum and a 12-month dividend distribution yield of 4.4%. The iShares Core Cash ETF (ASX: BILL) has a similar story. It currently offers a trailing yield of 4.36%.

If an investor were willing to depart from cash and consider a bond ETF, the returns could be marginally higher again. An example might be the BetaShares Australian Bank Senior Floating Rate Bond ETF (ASX: QPON). Holding bonds issued by our major banks, this ETF is currently sitting on a running yield of 4.78% per annum. That's with an estimated yield to maturity on its underlying investments of 4.32%.

The post The top places to park your cash following the RBA's rate cut appeared first on The Motley Fool Australia.

Investors may have accumulated cash by selling down existing investments or saving their wages. They may be looking to buy shares, but waiting for lower prices. Alternatively, they may wish to take some time to do more research. 

During this period, it's important to consider where to keep their cash. With the cash rate still at 4.10%, there are many options to earn an attractive return while they wait to invest in the stock market. These include savings accounts, transaction accounts, term deposit and cash exchange-traded funds (ETFs).

Maximise returns and flexibility with ASX cash ETFs

Term deposits, where an investor's money is locked away for a fixed period, typically offer superior returns to traditional savings or transaction accounts. While several term deposits in Australia offer up to 4.95% interest, they often come with restrictive conditions. This can cause investors to receive a return that is much lower than the advertised rate. 

For example, sometimes, higher interest rates are only available for balances over a certain amount. 'Honeymoon rates', whereby higher interest rates are offered for a short period before switching to a lower rate, are also common. Additionally,  penalty interest may be charged if the funds are withdrawn before the end of the defined term deposit period. This can be very restrictive for investors wanting to withdraw cash to buy shares when an opportunity arises.

ASX cash ETFs, which are traded on the ASX like shares and other ETFs, overcome many of these disadvantages. Most importantly, like all ETFs, they are extremely liquid investments that can be bought or sold at any time during market trading hours. This allows investors to redeem their investment at any time without incurring a penalty.  

Investors looking to generate an attractive return with low-risk exposure while avoiding the disadvantages of term deposits should consider the following two ETFs.

BetaShares Australian High Interest Cash ETF (ASX: AAA)

BetaShares Australian High Interest Cash ETF provides exposure to Australian bank deposits, with distributions that exceed the 30-day Bank Bill Swap Rate (BBSW). Unlike a term deposit, there is no need to open a bank account to make this investment. As of 28 February 2025, this ETF offered a trailing yield of 4.4%. Distributions are paid monthly. Its management expense is relatively low at 0.18%. Those wanting to maximise flexibility with their cash investments while locking in an attractive return should consider this ETF.

iShares Core Cash ETF (ASX: BILL)

iShares Core Cash ETF tracks the performance of the S&P/ASX Bank Bill Index. With 58 holdings, it provides exposure to a diversified portfolio of short-term money market instruments. The fund is extremely liquid, holding only investments that can be sold on a same-day basis. As of March 2025, the yield was 4.43%. Like BetaShares Australian High Interest Cash ETF, it also pays monthly distributions. However, its management fee is lower at just 0.07%. 

The post Looking to set aside cash for buying opportunities? Maximise returns and flexibility with ASX cash ETFs appeared first on The Motley Fool Australia.

Cash ETFs are a popular alternative to putting money in the bank yourself. These funds invest unitholders' money into a range of liquid, cash-based investments. These typically include deposits at major banks. As well as other money market instruments.

Some of the ASX's most popular cash ETFs include the BetaShares Australian High Interest Cash ETF (ASX: AAA) and the iShares Core Cash ETF (ASX: BILL).

Obviously, the appeal of these cash ETFs is going to fluctuate, depending on the investing climate. The appeal of cash is governed by various factors, such as interest rates, market fear, and greed.

As it happens, cash is seeing a surge of interest in 2025, if one report is to be believed.

ASX cash ETFs see surge in funds

According to a report from the Australian Financial Review (AFR), investors are currently pouring money into cash ETFs "at their fastest rate since the start of the COVID-19 pandemic".

The report cites a Bank of America survey. It reveals that cash holdings among global fund managers spiked from 3.5% in February to 4.1% in March, the biggest one-month jump since 2020.

Bank of America strategist Michael Hartnett was quoted as stating, "This month's decline is the largest since March 2020, and the seventh largest in the past 24 years, only surpassed by extreme bear sentiment observed around major market shocks".

This shift to cash has come at the cost of exposure to the share markets. These same investors have reduced their exposure to US stocks to their lowest level since June 2023.

Some of the capital has been redeployed to European stocks, amongst other assets, but cash is a main beneficiary of this trend.

It's not just this survey that reveals a renewed taste for cash amongst institutional investors, though.

The report also cites comments from ETF providers VanEck and BetaShares.

Arian Neiron, head of Asia-Pacific at VanEck, told the AFR that investors are using cash ETFs as an investment. But also as a stabling facility of sorts when moving capital between different asset classes:

Investors are recalibrating… They are pursuing, on a relative basis, other asset classes that present cheaper and more upside than the US market like emerging market equities, Europe, and gold bullion.

Meanwhile, Betashares told the AFR that cash accounted for 9% of ETF inflows in March so far, up from  2% in February and 1% in January.

The post Who is buying ASX Cash ETFs this month? appeared first on The Motley Fool Australia.

Whilst 2024 has been a phenomenal year to own ASX shares, many investors, not to mention prospective investors, might be feeling queasy about buying in right now. Given the above-average gains this year has already brought us, and all.

After all, higher ASX share prices, particularly from expanding price-to-earnings (P/E) ratios, translate into higher risk for new buyers.

But don't take it from me. Take it from legendary investor Warren Buffett, who once said this:

Whether we're talking about stocks or socks, I like buying quality merchandise when it is marked down.

He also once stated:

The three most important words in investing are 'margin of safety.'

The vast majority of quality ASX shares are most certainly not marked down right now. And that means that finding a top-shelf company with a margin of safety is a very difficult task indeed.

But ASX investors shouldn't despair.

How to invest when ASX shares are at record highs

For one, index investing, particularly through a dollar-cost averaging strategy, has proved to be an effective path to accumulating wealth through all kinds of markets.

If you are a long-term investor, I think you can still feel confident in periodically investing in a cheap, diversified index fund, even at current prices. But make sure you continue to buy with the same gusto next time there is a stock market correction or crash. This strategy doesn't work very well if you only 'buy high'.

But if you can't stomach putting any more capital into the stock market right now, there are still plenty of alternatives.

There's always that great Australian pastime – buying property – to consider. However, I acknowledge that this isn't an easy alternative for most readers.

That's why you might want to take advantage of the current high interest rate environment. Most Australians would be aware that interest rates are currently at decade-highs. While this has caused a lot of economic pain for many Australians, high rates do come with a silver lining.

Cash and offset accounts can balance ASX shares

Interest rates on savings accounts and term deposits haven't been as high as they are today in many years. You can easily put your money in the bank (savings account or term deposit) and secure an interest rate of at least 5% right now.

That's a 5% return with zero risk (up to $250,000 anyway). Most of the popular ASX dividend shares are presently offering much less than 5% in yield today, thanks to rising share prices. To illustrate, Commonwealth Bank of Australia (ASX: CBA) stock will only get you a 2.94% trailing yield right now.

As such, if you value capital preservation, a term deposit might be a good alternative to shares in the current environment. If you don't want to use a term deposit or a savings account, a good ASX alternative is a cash exchange-traded fund (ETF) like the BetaShares Australian High-Interest Cash ETF (ASX: AAA) or the iShares Core Cash ETF (ASX: BILL).

Alternatively, if you already have a mortgage on a property, you might want to take advantage of an offset account. With high interest rates, an offset account can help you benefit from holding cash but without paying those pesky taxes on interest earned at the bank.

Remember, holding a dollar in an offset account attached to a 7% mortgage will net you a real return of 7% on that dollar every year until the mortgage is paid off.

Don't forget about bonds

If you don't have a mortgage, another alternative to the share market that has the potential to deliver some reasonable returns is bonds. It's difficult for most ordinary investors to invest in government or corporate bonds directly. However, once again, ASX ETFs provide an avenue.

For example, the Vanguard Australian Fixed Interest ETF (ASX: VAF) and the iShares Core Composite Bond ETF (ASX: IAF) are two popular options. Both offer yields of between 2-3% right now, and could increase in value if interest rates start falling.

Foolish takeaway

The recent record highs of the share market are certainly something to take into account if you have money to invest right now.

But don't despair. This is not 2021, and there are many alternatives to the share market if you're looking for real yield but are not comfortable with the recent highs.

The post Concerned about ASX shares at all-time highs? Don't worry, you've got options appeared first on The Motley Fool Australia.

However, investors who have a day job and a primary source of income usually invest very differently from those investors who are retired and rely on passive dividend income to pay their bills. An investing mistake is a lot more difficult to bounce back from when you don't have a regular salary to patch over your portfolio's cracks.

So with this in mind, today let's discuss how to prepare your ASX share portfolio for the transition to retirement.

Three steps to prepare an investment portfolio for the retirement transition

Prioritise defensive ASX dividend stocks

Many investors love owning ASX shares that are growing fast and have delivered pleasing share price gains. While the likes of Xero Ltd (ASX: XRO) and WiseTech Global Ltd (ASX: WTC), for example, have done very well for investors in recent years, these stocks are arguably less suited to a retiree.

That's because their share prices tend to be relatively volatile, making regular sales a little difficult. Not to mention, they don't tend to pay much in terms of dividend income (in Xero's case, none).

As such, if one is approaching retirement, one might consider transitioning away from growth shares and into more defensive dividend payers that supply a more reliable paycheque.

Telstra Group Ltd (ASX: TLS), Coles Group Ltd (ASX: COL), and Washington H. Soul Pattinson and Co Ltd (ASX: SOL) are all examples of stocks that have managed to keep their dividends flowing throughout the economic cycle.

Maximise your franking credits

Franking credits are great for any ASX investor. But they can be particularly useful for retirees. Depending on your own personal tax and superannuation circumstances, it's possible that you'll be able to get a cash refund for your franking credits upon retirement instead of the standard tax break.

With that in mind, it is probably a good idea for most retirees to prioritise fully franked dividend income.

Most ASX 200 shares pay franked dividends. But some popular stocks don't, for various reasons. So, if you're approaching retirement, it might be worth considering whether to swap out stocks like Scentre Group (ASX: SCG) or Transurban Group (ASX: TCL), which usually don't attach meaningful franking credits to their dividends.

To illustrate, right now, Telstra shares are trading on a dividend yield of 4.49%, while Transurban is offering 4.56%. Even though Transurban's yield is nominally higher, Telstra's full franking credits will probably make it a better income investment for a retiree (assuming these yields hold, of course).

Look to alternative asset classes as retirement investments

As we mentioned earlier, a key consideration for any retiree is that investment mistakes are harder to endure.

ASX shares are the asset class that has traditionally delivered the highest returns over long periods of time.

However, given most retirees' reduced tolerance for risk, permanent capital loss, and income volatility, it might be worth considering increasing exposure to 'safer' asset classes as retirement investments.

Cash and government bonds are usually considered safer investments than ASX shares when considering the risk of capital losses. With interest rates at decade-highs, these investments will currently pay you a lot more to hold them, too.

Exchange-traded funds (ETFs) allow easy access to these asset classes. Two popular examples are the Vanguard Australian Fixed Interest Index ETF (ASX: VAF) and the iShares Core Cash ETF (ASX: BILL).

The post 3 steps to prepare an investment portfolio for transition to retirement appeared first on The Motley Fool Australia.

But while most ASX All Ords shares have paid out their biannual dividends, we still have some stragglers to report on. Next week, we'll see no fewer than four All Ords stocks scheduled to trade ex-dividend.

Ex-dividend?

When a company trades ex-dividend, it draws a line in the sand over which investors are eligible for an upcoming dividend payment, as well as any associated franking credits.

If investors own a company's shares at the close of trading one day before the ex-dividend date, they will be eligible for the particular payout. But bad luck for any investor who buys that company's shares on or after the ex-dividend date.

As such, it's important for investors to keep abreast of the ex-dividend dates of any ASX All Ords share they wish to receive a paycheque from.

So, with all that in mind, here's the list of the ASX All Ords shares that will experience this very phenomenon next week:

4 ASX All Ords shares trading ex-dividend next week

 *Dividend yield as of Thursday's close

But that's not all, folks. There are a slew of popular ASX exchange-traded funds (ETFs) from provider BlackRock that are also scheduled to go ex-dividend (or ex-distribution in this case) next week on 9 April.

These include the iShares Core S&P/ASX 200 ETF (ASX: IOZ), the iShares Treasury ETF (ASX: IGB) and the iShares Core Cash ETF (ASX: BILL), among others.

Whilst not technically ASX All Ords shares, these ETFs will still all pay out their respective distributions.

So keep your eyes on any or all of these investments next week if you own any of them, or perhaps if you are just looking for a share price dip before your next buy.

The post 4 ASX All Ords shares with ex-dividend dates next week appeared first on The Motley Fool Australia.

While that makes paying off the mortgage pretty tough, it also means that the income we can receive from cash assets like savings accounts and term deposits is also at a decade-high.

Term deposits vs ETFs

Saying that, you still have to extensively shop around for the best interest rates for your savings. Accounts and term deposits that are offered by the big four banks, including Commonwealth Bank of Australia (ASX: CBA) are rarely the best on the market. And even if you do find a market-beating cash asset, chances are it will come with conditions attached.

This could be a requirement that you tap your card a certain amount of times. Or else you make no withdrawals in the month you want to receive your full interest rate.

It's for that reason that many investors who wish to seek the safety of cash might like to consider a cash ASX exchange-traded fund (ETF).

Yes, these cash-based ETFs do trade on the stock market. But they are not shares, and do not represent an investment in shares. As such, they don't come with the same sort of volatility that cash investors might be seeking to avoid by keeping their money in the bank. However, they do still come with those same interest rates we can enjoy on our savings accounts and term deposits. And sometimes even better.

Both of the funds I discuss below are designed to be completely liquid. This means that (unlike a term deposit) you can sell out of them at a moment's notice. It will also be worth taking a look at their unit prices, so you can see how involatile they are compared to your traditional shares.

2 ASX cash ETFs to consider today

BetaShares High Interest Cash ETF (ASX: AAA)

This ETF form provider BetaShares allows investors access to a portfolio of cash assets that are "invested in deposit accounts held within selected banks in Australia".

The AAA ETF pays out dividend distributions monthly, and currently has a running interest rate of 4.44%. That's with a trailing distribution yield of 3.6% over the past 12 months.

It charges a management fee of 0.18% per annum.

iShares Core Cash ETF (ASX: BILL)

Another option to consider is this offering from BlackRock. Similarly, the iShares Core Cash ETF offers monthly distributions. It works slightly differently to Betashares AAA, offering cash assets as well as short-term money market instruments among both Australian and international banks.

The BILL ETF has a present running interest rate of 4.43% and has yielded 3.7% over the past 12 months. This fund charges a management fee of 0.07% per annum.

The post These cash ASX ETFs could be better than your bank account appeared first on The Motley Fool Australia.

An ex-dividend date is the date that any new investors are cut off from receiving an upcoming dividend payment. It's simple — if you own share shares before the ex-dividend date, the dividend is yours. If you buy after the date, no dividend.

That's why we usually see a share that trades ex-dividend fall in value on the day in question.

So let's now talk about two ASX ETFs trading ex-distribution tomorrow.

These two cash-based ASX ETFs are going ex-distribution

The first is the iShares Core Cash ETF (ASX: BILL). Yes, ETFs can invest in cash too. This ETF from BlackRock puts investors' money to work in "high quality short-term money market instruments". The iShares Core Cash ETF pays out a distribution every month. Its latest payment is due on 16 December, and will be worth 24.02 cents per unit.

But investors will need to own units of this ETF tomorrow if they wish to receive this distribution. That will equate to a yield of around 0.24% on the current unit price of $100.56 (at the time of writing). Over the past 12 months, the iShares Core Cash ETF has a trialling yield of approximately 0.74%.

Our next ETF is also a cash-focused fund from BlackRock's iShares. The iShares Enhanced Cash ETF (ASX: ISEC) is a similar fund to the Core Cash ETF. However, it invests in "a diversified portfolio of higher-yielding high quality short-term money market instruments, including floating rate notes".

This ETF also pays out monthly distributions. Its next distribution is also due on 16 December, with the ex-dividend date set for tomorrow, 6 December. The iShares Enhanced Cash ETF will dole out 24.75 cents per unit, which would give investors a yield of 0.25% or so on today's unit pricing.

Over the past 12 months, this fund now has a trailing yield of 0.81%.

So tomorrow is a big day for these two cash-based ETFs on the ASX.

The post 2 ASX ETFs trading ex-dividend tomorrow appeared first on The Motley Fool Australia.

Investors put in the highest-ever amount of dollars into local ETFs in October, but some products fared far better than others.

A BetaShares report showed cash, bond and fixed interest ETFs featured prominently among the top 10 ETFs that saw the largest inflow of cash last month. 

This perhaps indicated some anxiety with investors about the US election result and sky-high share valuations.

Top 10 hottest Australian ETFs

ETF pioneer Vanguard dominated the top of the charts. 

Its Vanguard Australian Shares Index ETF (ASX: VAS), Vanguard Global Aggregate Bond Index (Hedged) ETF (ASX: VBND), Vanguard Msci Index International Shares Etf (ASX: VGS), and Vanguard Australian Fixed Interest Index ETF (ASX: VAF) collectively brought in about $478 million for the company.

But the most attractive fund of October, iShares Core S&P/Asx 200 Etf (ASX: IOZ), alone pulled in a stunning $326 million of investor funds.

Top 10 coldest Australian ETFs

At the other end of the charts, foreign assets seemed to go out of favour with Australian ETF investors.

The trend could be a validation of the successful suppression of COVID-19 in Australia while the northern hemisphere copped a third wave as it headed into the colder months.

iShares Edge MSCI World Multifactor ETF (ASX: WDMF), iShares MSCI South Korea ETF AUD (ASX: IKO), BetaShares US Dollar ETF (ASX: USD), iShares Europe ETF AUD (ASX: IEU) and Platinum International Fund (Quoted Managed Hedge Fund) (ASX: PIXX) all suffered significant outflows.

BetaShares itself had $34.8 million pulled out of its BetaShares Australian Resources Sector ETF (ASX: QRE), which was the 2nd highest amount.

It's often hard to pinpoint the exact reasons for outflows from a particular ETF, BetaShares head of strategy Ilan Israelstam told The Motley Fool.

"Investors will have their own motivations for increasing or reducing their positions," he said.

"On QRE in particular, our suspicion is that most of the selling was due to investors taking profits, given QRE was up around 34% from its lows in March."

Betashares and AMP Limited (ASX: AMP) recently closed down a trio of ETFs they jointly operate due to a lack of investor interest. Those funds will trade on the ASX for the last time on 4 December.

The last two months have been the only time in history that the Australian ETF industry saw more than $2 billion come inwards each month.

Local ETFs collectively manage $73.8 billion, which is another all-time record.

The post 10 hottest (and coldest) Aussie ETFs right now appeared first on The Motley Fool Australia.

Well, it's a fraught question. What do we really mean by 'safe'? For most investors, a 'safe' share is one that won't lose its value under any market conditions. And on this front, it's almost impossible to call any ASX share 'safe'. See, the share market is a volatile place. In theory, it should always be pricing every asset according to its true and intrinsic market value. But the problem is that markets don't put much store in theory. In reality, emotional investing (either fear or greed) is the predominant force in moving shares on a day to day basis. Legendary investor Benjamin Graham once said that the stock market is a 'voting machine in the short-term, and a weighing machine in the long-term', or words to that effect.

So it's almost impossible to find a share that never loses its value at any point in time. A cash-based exchange-traded fund like the iShares Core Cash ETF (ASX: BILL) is probably your best bet. But that's not too different to just having your money in a bank account anyway.

So what's your next best option? A seasoned investor might point you to ASX blue chip shares like Woolworths Group Ltd (ASX: WOW) or Wesfarmers Ltd (ASX: WES). Or even the ASX banks, because they're 'safe as banks' right? Well, try telling that to anyone who was a shareholder in Westpac Banking Corp (ASX: WBC), which saw its value crater by more than 50% between September 2019 and March 2020.

ASX blue chips are no safer than any other ASX 200 share in a market crash. What really matters is the durability of a business' cash flow. If a company has a robust and resilient revenue base, it's more likely (but not certain) to hold its market value over time.

What about inflation-safe ASX shares?

But perhaps market volatility is not the only thing that troubles some investors. The more pessimistic market participants amongst us have another fear: inflation. With governments around the world spending an unprecedented amount of cash to combat the coronavirus crisis, there are sections of the investing community that believe this will eventually lead to massive inflation – the loss of a currency's purchasing power through increased supply.

Figuring out which ASX shares are best placed to survive a world of high inflation depends on a few factors. Firstly, does the company have sufficient pricing power to be able to increase its revenues at least in line with the rate of inflation? Those companies that dominate their markets usually have the most power in this regard and are more equipped to deal with a high-inflation world. Think Apple with its iPhones, or the A2 Milk Company Ltd (ASX: A2M) with its premium dairy products.

Secondly, does the company have real, tangible assets it can use to support its cash flow? Transurban Group (ASX: TCL) for example, owns and operates a series of toll roads. No matter what is happening with inflation, Transurban is always going to have a portfolio of assets that consumers want (or even need) to use. This gives Transurban a massive advantage in a world of high inflation. It's a similar story with Sydney Airport Holdings Pty Ltd (ASX: SYD) or AGL Energy Limited (ASX: AGL). If you're worried about future inflation, these kinds of companies are a good place to start looking for a 'safer' investment, in my view.

Foolish takeaway

There's really no such thing as a 'safe' share or investment on the share market. If you have specific worries around inflation or any other kind of economic calamity, there are steps you can take to position your ASX portfolio accordingly. But investing in shares is never going to be a game of gains with no risk of losses. If you really can't deal with the fact your portfolio's value will fluctuate, then I would recommend periodically investing in exchange-traded funds (ETFs) without ever looking at your portfolio's value. The only other option is leaving your cash in the bank, I'm afraid.

The post Which ASX 200 shares are the safest? appeared first on The Motley Fool Australia.

Whilst lower interest rates on the surface may seem like a good thing for mortgage applicants, I don't believe there is much upside at all for anyone looking to hop onto the property ladder. Here's why – when interest rates are lowered, it lowers what's known as the 'risk-free rate' of investing. This raises the perceived value of other riskier income assets like shares and property as investors chase higher yields outside of government bonds.

Lower interest rates are petrol on the fire of house prices and the Reserve Bank just poured more on. What's more is that when a first home buyer walks into Commonwealth Bank of Australia (ASX: CBA) for a home loan, they are likely to come out with a variable interest rate on the mortgage. In other countries, fixed-rate mortgages are quite common, but they are not in Australia (at least beyond 5 years at most). So when interest rates eventually rise, your mortgage repayments will rise with them. You may be locked into a loan based on a house price from a low-interest rate environment with a rising interest rate (not a good place to be).

Things are difficult for those who haven't got to the deposit yet as well. Even the best savings accounts are now unlikely to get you more than around 1.8% for your money, which means you're barely keeping up with inflation. Normally shares are not recommended for anyone who may need the capital for at least 5 years (the stock market is a volatile place).

What about ETFs?

There are some Exchange Traded Fund (ETF) options that can help you squeeze a little more blood from the stone.

The iShares Core Cash ETF (ASX: BILL) is an ETF that invests in short-term money market instruments (mostly short-term loans between banks). BILL has returned around 2% over the past year after fees and is a pretty safe place to have your money as its underlying assets are basically just cash and not shares. Its also an extremely liquid fund, which means it's easy to get your money out again without any hassles.

Another option is the BetaShares Australian High-Interest Cash ETF (ASX: AAA) which operates in a very similar manner and returned 2.03% over the past year. Both ETFs pay monthly interest distributions and have fees of 0.07% and 0.18% respectively.

For prospective house buyers in this low-rate environment, it pays to keep the risks in mind and look at all options for your hard-earned cash.

The post How to use ASX ETFs to save for a house deposit appeared first on The Motley Fool Australia.