It usually trades at a premium to the rest of the banking sector, and that can make investors hesitate.

But when I look at the bigger picture, I think there are good reasons why it continues to be priced that way. And for long-term investors, that quality can still make it an attractive place to put $5,000 to work.

A business built on consistency

One of the things I value most in investing is reliability. And that is where Commonwealth Bank of Australia stands out.

The bank has spent decades building a dominant position in the Australian market. Its scale, brand strength, and customer relationships make it difficult for competitors to match.

You can see that in the underlying trends. During the first half, ongoing growth in lending and deposits is helping to support earnings, even as margins face some pressure.

For me, that kind of steady performance is important, particularly in an uncertain environment.

Strong foundations matter

Another reason I like CBA is the strength of its balance sheet.

The bank maintains high levels of capital and funding, which gives it flexibility to support customers, invest in its business, and navigate changing economic conditions .

That matters more than it might seem at first. Banking is a cyclical industry, and conditions can shift quickly. Having a strong financial position helps CBA manage those cycles more effectively than many peers.

It is one of the reasons I think it is often viewed as the highest-quality bank on the ASX.

Income remains a key part of the story

CBA is also a major income payer. The bank recently declared an interim dividend of $2.35 per share, fully franked .

That reflects both its profitability and its willingness to return capital to shareholders.

While dividend levels can vary over time, I think the bank's earnings base provides a solid foundation for ongoing income.

For investors, that combination of income and stability can be appealing.

The premium is there for a reason

There is no denying that CBA shares often look expensive compared to other banks.

But I think that premium reflects something real. This is a business that has consistently delivered strong returns, invested heavily in technology, and maintained a leadership position in digital banking.

It is not just about what the bank earns today.

It is about its ability to keep delivering over the long term.

Foolish takeaway

Commonwealth Bank may not always be the cheapest bank option on the ASX.

But I think its consistency, balance sheet strength, and reliable income make it a compelling long-term investment.

If I were putting $5,000 to work today, it is one of the shares I would still feel comfortable buying and holding through different market conditions.

The post Why I think CBA shares are a top buy with $5,000 appeared first on The Motley Fool Australia.

It's great news for investors after the bank's share price fluctuated over the past month as the market adjusted to a new market normal. Throughout March ANZ's share price fell 8.5%.

Despite ongoing global uncertainty, cash rate hikes, and a slowdown in lending, the banking giant's shares are now up 2.3% for the year-to-date and 39% above their trading levels this time last year. 

For context, the S&P/ASX 200 Index (ASX: XJO) is practically flat for the year-to-date, and 18.9% higher than 12 months ago.

Despite interest rate headwinds and broad under-certainty across the ASX financial sector, I still think ANZ shares are a great buy.

Here are three reasons why.

1. ANZ has stable earnings and a predictable cash flow

ANZ is generally considered to have stable earnings and predictable cash flow. This is due to its position as one of Australia's big four banks. The bank has a strong deposit base and a diversified portfolio that means it is relatively defensive in nature.

In mid-February, ANZ posted a first-quarter cash profit of $1.94 billion, up a whopping 75% from the second-half average of FY25. Operating income was up 4% and cash return on tangible equity climbed 11.7% over the quarter.

The news beat expectations, delighted investors and instilled some renewed confidence into the stock. ANZ shares closed at an all-time high following the announcement.

2. It pays a regular dividend to shareholders

ANZ traditionally makes dividend payments to shareholders every six months, payable in July and December. It also offers both a dividend reinvestment plan (DRP) and a bonus option plan (BOP) as alternatives to receiving cash dividends on ANZ ordinary shares.

The bank's most recent dividend was paid out to shareholders in December. It paid 83 cents per share franked at 70%. This brought the total annual dividend to $1.66 per share, at a yield of 4.45%. UBS brokers are projecting a similar payout from ANZ in FY27, resulting in a dividend yield of 4.2% (excluding franking credits).

3. It has a better share price outlook versus some of its peers

Brokers are neutral on the outlook for ANZ shares over the next 12 months. Most have a hold rating with an average target price of $38.01, which implies a potential 2% upside at the time of writing. 

Therefore, ANZ has a better share price outlook than its big four bank peers. Brokers hold a strong sell rating on Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corporation Ltd (ASX: WBC) with a 25% and 11% downside respectively.

Brokers have a neutral rating on National Australia Bank Ltd (ASX: NAB) shares but with a smaller 0.08% average upside. 

The post 3 reasons to buy ANZ shares today appeared first on The Motley Fool Australia.

But when I break it down, it becomes far more manageable.

It is not about finding the perfect ASX share or timing the market. It is about consistency, patience, and leveraging the power of compounding.

The maths behind it

Let's start with a simple assumption.

If you can achieve an average return of 9% per year, which I think is a reasonable long-term expectation for a diversified portfolio of ASX shares, although not guaranteed, the path to $1 million becomes clearer.

At that return, investing $5,000 per year would grow to roughly $1 million in just over 33 years.

Clearly this is not a one-off effort. It is a habit. A system that builds momentum over decades.

And once that momentum builds, the numbers can start to accelerate in ways that are hard to appreciate early on.

The early years feel slow

In the beginning, progress can feel underwhelming. After five years, you have contributed $25,000. The portfolio might be worth a bit more than that, but not dramatically so.

This is where a lot of people lose interest. But I think this is the most important phase.

Because what you are really building early on is not wealth. It is discipline.

You are learning to invest regularly, ignore short-term noise, and stay focused on the long term.

Then compounding starts to show up

As the portfolio grows, something changes. The returns begin to matter more than the contributions.

At some point, your portfolio might grow by more in a year than you are adding yourself.

That is when compounding really starts to work in your favour.

And from there, the process becomes less about how much you can contribute and more about how long you can stay invested.

Which ASX shares I would invest in

If I were building a portfolio like this, I would keep things simple.

I would focus on high-quality ASX shares that have the potential to grow earnings over time and deliver a mix of capital growth and income.

This might mean companies like Goodman Group (ASX: GMG), ResMed Inc. (ASX: RMD), and Cochlear Ltd (ASX: COH) for exposure to global growth themes.

At the same time, businesses such as TechnologyOne Ltd (ASX: TNE) and WiseTech Global Ltd (ASX: WTC) provide exposure to high-margin software models with recurring revenue.

And I would likely balance that with more established names like Commonwealth Bank of Australia (ASX: CBA) and Telstra Group Ltd (ASX: TLS), which can provide stability and income along the way.

The exact mix is less important than the principle. Own quality businesses and give them time.

Foolish takeaway

Building a million-dollar ASX share portfolio from zero is not about luck or timing. It is about consistency and time.

A steady investment of $5,000 per year, combined with a long-term return of around 9%, could get you there over a few decades.

It may not feel exciting in the early years. But over time, compounding can turn small, consistent steps into something significant.

The post How to build a million-dollar ASX share portfolio from zero appeared first on The Motley Fool Australia.

Markets have pulled back, potentially creating opportunities to pick up shares in quality companies at a discount to what people were willing to pay only recently.

Here are three popular ASX shares that I'd buy this month.

BHP Group Ltd (ASX: BHP)

When I look at BHP, I see a company that is closely tied to some of the biggest long-term trends in the global economy.

Copper demand is one of the clearest examples. Electrification, renewable energy, and infrastructure all require large amounts of copper, and I think that demand could remain strong for many years.

BHP also offers exposure to iron ore, which continues to underpin its earnings today, as well as longer-term projects like potash that could diversify future growth.

What makes BHP appealing to me right now is the balance. It is not just a growth story. It is also an income-generating business that can return capital to shareholders through the cycle.

In a market where uncertainty is rising again, I think that combination of income and long-term exposure to global demand is hard to ignore.

Commonwealth Bank of Australia (ASX: CBA)

Commonwealth Bank is often described as expensive. And I think that is fair.

But I also think there is a reason it continues to trade at a premium. CBA has consistently delivered strong returns, supported by its scale, brand strength, and leading position in the Australian banking system.

Even in a higher interest rate environment, it has shown an ability to maintain margins and generate reliable earnings.

For me, this is less about finding a bargain and more about owning quality. If I were building or adding to a long-term portfolio in April, I would still consider CBA shares because of its consistency and resilience.

It may not be the fastest grower, but it is one of the most dependable.

DroneShield Ltd (ASX: DRO)

DroneShield sits at the opposite end of the spectrum. This is not a mature, steady business. It is a company operating in a rapidly evolving industry with significant potential.

What stands out to me is how quickly the business has scaled. In FY25, the company delivered around $260 million in revenue, roughly four times higher than the previous year, while also achieving profitability.

At the same time, its sales pipeline has grown to around $2.3 billion across nearly 300 deals, which suggests a large opportunity set ahead.

I also find the broader industry backdrop compelling. Counter-drone technology is still in its early stages, with adoption across both military and civilian markets expected to expand over time. The company itself points to a very large addressable market and increasing global demand for these solutions.

Of course, this kind of growth story comes with more risk.

But I think that is part of the appeal. In a diversified portfolio, DroneShield shares could provide exposure to a theme that is very different from traditional sectors.

Foolish takeaway

I think combining these types of ASX shares in a portfolio can make a lot of sense for long-term investors.

BHP offers exposure to global growth and commodities, CBA provides stability and income, and DroneShield brings higher-risk, higher-potential growth tied to a rapidly evolving industry.

The post Why I think BHP, CBA, and DroneShield shares are buys in April appeared first on The Motley Fool Australia.

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

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

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

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

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

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

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

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

BetaShares Australia 200 ETF (ASX: A200)

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

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

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

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

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

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

BetaShares NASDAQ 100 ETF (ASX: NDQ)

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

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

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

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

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

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

Vanguard MSCI Index International Shares ETF (ASX: VGS)

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

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

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

It has fallen roughly 7% so far in 2026. 

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

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

Interestingly, the ASX 200 is one of the most concentrated developed-market indices on the planet.

According to VanEck, the top 5 securities account for 33% of Australia's benchmark index. 

This means that when these companies rise or fall, they can heavily influence the broader performance of the ASX 200. 

In the month of March, the ASX 200 index fell almost 8%. 

This was the largest single-month fall in some time, heavily influenced by the conflict in the Middle East. 

Let's look at how some of the largest blue-chip shares performed during this month.

Commonwealth Bank of Australia (ASX: CBA)

CBA is Australia's largest company and largest bank.

The performance of CBA shares strongly influences many other equities, including financial and ASX 200 tracking ETFs.

Out of the big four bank shares, CBA was the best to own during the month of March. 

CBA shares finished trading in February at $174.62 and finished March at $167.70 each. 

In total, that was a 4.0% fall in March, significantly outperforming the 7.8% loss posted by the benchmark index.

The Motley Fool's Bronwyn Allen reported last week that CBA has drawn bull rally predictions from experts recently. 

The report suggested CBA shares could rally to as high as $190 each. 

This suggests that the recent pull back could be an attractive entry point for those seeking exposure to the blue-chip stock. 

BHP Group Ltd (ASX: BHP)

BHP is Australia's largest blue-chip mining company, and is among the world's top producers of major commodities including iron ore, copper, and metallurgical coal.

It was hit hard during the month of March, falling approximately 15%. 

The blue-chip company remains up 12% year to date, and has drawn positive outlooks from experts following March's sell-off. 

Remo Greco from Sanlam Private Wealth has a buy rating on BHP shares.

In a note (via The Bull), he said the current volatility presents investors with an opportunity to buy this global miner at attractive prices.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is Australia's largest blue-chip consumer discretionary company.

Its subsidiaries include household names such as Bunnings Warehouse, Kmart Australia, Officeworks, Priceline, and more.

Wesfarmers shares also underperformed across the month of March, falling approximately 9%. 

Despite this fallback, Wesfarmers remains a strong defensive option for investors expecting more volatility this year. 

How to target ASX blue-chip shares

For investors trying to hone in on ASX blue-chip shares, a viable option is the iShares S&P/ASX 20 ETF (ASX: ILC). 

It is designed to track the performance of the 20 largest Australian securities listed on the ASX. 

This includes the three companies listed above, as well as other banking and mining giants. 

It has outperformed Australia's benchmark index so far in 2026, rising 4% compared to a 1.7% fall for the ASX 200. 

The post How did these ASX blue-chip shares perform in March? appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) bank stock even paid two fully franked dividends in the pandemic addled year of 2020.

Looking at the last two payouts, CBA paid a final dividend of $2.60 a share on 29 September. And the big four bank just paid its interim dividend of $2.35 a share on 30 March.

Atop those fully franked dividends, CBA shares have also gained 11.5% in 12 months, outperforming the 8.3% one-year gains posted by the ASX 200.

But with the CommBank share price now having more than doubled over five years, closing at $172.82 on Thursday, is Australia's biggest bank still a good passive income play?

Should you buy CBA shares for passive income?

Sanlam Private Wealth's Remo Greco recently ran his slide rule over the ASX bank stock (courtesy of The Bull).

"The bank is a quality company and a staple in investor portfolios," he said. "It has established a strong track record of performance over many years."

As for the passive income potential, Greco said:

The company delivered a 5% increase in statutory net profit after tax in the first half of fiscal year 2026. However, the dividend yield was trading below 3% on March 26, so better income is available elsewhere.

Indeed, at Thursday's closing price CBA shares trade on a fully franked trailing dividend yield of 2.9%.

That's significantly less than passive income investors were banking from the stock a few years ago.

For example, three years ago, on 31 March 2023, you could have bought CBA stock for $98.32 a share. And with an eye on the $4.20 a share in fully franked dividends the bank paid out over the prior 12 months, it was then trading on a trailing dividend yield of 4.3%.

Connecting the dots, Greco issued a sell recommendation on the big four bank.

He concluded:

The conflict in Iran suggests a possibly slowing global economy likely to impact credit growth in Australia's higher interest rate environment. CBA is trading at a premium to peers, so it may be time to consider reducing exposure in this volatile environment.

What kind of a premium does CommBank stock command?

CBA shares trade on a price to earnings (P/E) ratio of around 28 times.

As for the other big four Aussie banks: Westpac Banking Corp (ASX: WBC) trades on a P/E ratio of around 20 times; ANZ Group Holdings Ltd (ASX: ANZ) trades on a P/E ratio of around 19 times; and National Australia Bank Ltd (ASX: NAB) trades on a P/E ratio of around 19 times.

The post Are CBA shares still a good buy for passive income? appeared first on The Motley Fool Australia.

ASX 200 shares rallied 1.76% to close at 8,671.8 points yesterday after US President Donald Trump suggested they could be out of Iran within two or three weeks.

This boosted investors' confidence in the global economic outlook, with European and US markets also responding positively overnight.

ASX 200 shares were initially higher today, rising to 8,723.3 points before retracing to 8,594.8 points, down 0.9%, at the time of writing.

While the ASX 200 is still volatile, Gerrish said the market is preparing for a rally.

After a steep 9.1% drop between 27 February and 23 March, the ASX 200 reversed its trajectory last Tuesday and has since gained 2.7%.

In this Market Matters newsletter today, Gerrish said:

With hostilities potentially nearing an end, investors rotated aggressively into cyclicals, particularly resources.

While it's no surprise the market staged an aggressive relief rally with an end to the conflict now in sight, the key question is what comes next, with the ASX200 still ~6% below its March high.

Gerrish cautioned that "we're not out of the woods yet".

He said if ASX 200 shares were to fall below 8,550 points again in the coming days and weeks, a re-test of the 8,200 trough was "likely".

The ASX 200 fell to a 10-month low of 8,262.4 points last Monday.

Gerrish and his team remain bullish on ASX shares for 2026 because of the strong February earnings season and stable credit markets.

He said:

The markets' performance over the next 24 hours will give us a big clue as to the strength in equities, if they're strong into Easter, the bulls could be in control.

Gerrish and his Market Matters team are bullish on ASX 200 shares for the rest of 2026.

Today, they named two ASX 200 shares that they expect to "ride the rebound".

These companies both reported well in February, initially sending their share prices higher, before the Iran war dragged them back down.

Gerrish said this was "potentially affording an opportunity to buy high-performing stocks at a cheaper entry".

Here are those ASX 200 share picks.

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price is $172.33, up 0.25% on Thursday.

The ASX 200 financial share has fallen 0.66% over the past month.

Gerrish and his team like CBA shares at today's price, and predict a 10% rally ahead to about $190 apiece.

He said:

If we are correct and the ASX is going to test/make new highs in 2026, a call many find it hard to imagine, CBA will likely come along for the ride.

Australia's largest bank delivered a strong 1H result in February which saw the stock surge ~12% in 2-days, a huge move for such a stock let alone bank of its size.

CBA beat consensus on cash profit and lifted the interim dividend, with volume growth and improving credit quality offsetting margin pressure and higher costs.

The stock's "drift" lower in March demonstrates that investors are hesitant to reduce their position in the bank, even during a war.

Ramsay Health Care Ltd (ASX: RHC)

The Ramsay Health Care share price is $39.01, down 0.15% today.

This ASX 200 healthcare share has fallen 9.5% over the past month, after reaching an 18-month high of $44.73 in early March.

The Market Matters team is "cautiously bullish" on Ramsay Health Care shares at today's price.

Gerrish said:

RHC surged ~10% after the private hospital operator delivered a better than expected 1H result in February.

We liked the comments from Chief executive Natalie Davis saying the turnaround strategy for Australia's largest private hospital operator is gaining traction, pointing to improved admissions, better utilisation of operating theatres, increased market share, and growth in both revenue and margins.

Ramsay's domestic performance likely marks an inflection point after years of post-pandemic stagnation, with early margin improvement signalling that management's operational focus is beginning to drive earnings momentum despite ongoing challenges.

The stock has rallied 30% from its 2025 low and we still see reasonable value in this turnaround story, although it's unlikely to enjoy the same tailwind from a broader "risk-on" rally as some other areas of the market.

The post 2 ASX 200 shares to buy ahead of anticipated rally: expert appeared first on The Motley Fool Australia.

March was a difficult month for most stocks following the onset of the Iran war at the end of February.

The resulting conflict in the Middle East saw the Brent crude oil price spike 48% over the month just past, soaring from US$72.50 on 27 February to US$107.50 on 31 March, according to data from Bloomberg.

That's likely to push inflation significantly higher over the coming months, which in turn could pressure global central banks, including the Reserve Bank of Australia, into raising interest rates.

As you're likely aware, the RBA already has hiked the official cash rate twice this year. The second interest rate rise was delivered on 17 March, with the 0.25% lift taking the benchmark rate to 4.10%.

Higher interest rates have the potential to support ASX 200 bank stocks by enabling a larger net interest margin (NIM). But if higher rates and rising inflation lead to a broader economic downturn in Australia, the banks – among other headwinds – could get hit with a material increase in non-performing loans.

With that picture in mind…

ASX 200 bank stocks retreat in March

Commonwealth Bank of Australia (ASX: CBA) was the best performing big bank stock last month.

CBA shares closed out February trading for $174.62 and finished March at $167.70 each. That put the CBA share price down 4.0% in March, significantly outperforming the 7.8% loss posted by the benchmark index.

Westpac Banking Corp (ASX: WBC) shares also outperformed the benchmark.

Barely.

Shares in the ASX 200 bank stock closed on 27 February trading for $42.54. When the closing bell sounded on 31 March, shares were changing hands for $39.47 apiece. This saw Westpac shares down 7.2% over the month.

That was a better performance than we saw from ANZ Group Holdings Ltd (ASX: ANZ).

ANZ shares ended February at $40.04 and closed out March trading for $35.97. The 10.2% decline in ANZ shares over the month underperformed the benchmark.

Which brings us to March's laggard, National Australia Bank Ltd (ASX: NAB).

NAB shares closed out February trading for $49.02. On 31 March, shares ended the day changing hands for $41.44. That saw the NAB share price down 15.5% over the month, or almost twice the losses posted by the benchmark index.

Taking a step back

While March saw the big four ASX 200 bank stocks take a tumble, investors who bought any of the banks a year ago will still be sitting on some benchmark beating gains.

Here's how they've performed (as at time of writing today) over the past 12 months, not including dividends:

• NAB shares are up 21.6%
• CBA shares are up 11.0%
• Westpac shares are up 25.6%
• ANZ shares are up 22.6%

The post What happened with ASX 200 bank stocks like CBA and Westpac in March? appeared first on The Motley Fool Australia.

The ASX share market has pulled back from recent highs and the benchmark index is down roughly 6% over the past month at the time of writing.

At first glance, that kind of drop can feel uncomfortable. But history tells a different story. Some of the best long-term returns are made when investors buy during fear, not when markets feel safe.

Rising oil prices, war, inflation

So, what's driving the chaos?

In recent weeks, markets have been rattled by a mix of global tensions and economic uncertainty. Rising oil prices, renewed Middle East conflict, stubborn inflation, and fresh doubts around Artificial Intelligence (AI) spending have all weighed on sentiment.

That's a sharp shift from earlier this year.

Over the past five years, the ASX share market has delivered strong gains, powered by banks, miners, and a surging tech sector. Optimism around AI, solid commodity demand, and resilient earnings pushed the market toward record highs.

Back then, buying felt easy. Confidence was high, and every rally seemed to confirm investors were making the right call.

High quality stocks at lower prices

But here's the twist — that's usually not the best time to buy.

The real opportunities on the ASX share market often appear when confidence fades.

Market pullbacks allow investors to buy the same high-quality businesses at lower prices. Whether it's blue-chip names like Commonwealth Bank of Australia (ASX: CBA), CSL Ltd (ASX: CSL), or BHP Group Ltd (ASX: BHP), a broad sell-off reduces the cost of future earnings.

Shifting sentiment

And importantly, much of today's uncertainty may not last. Geopolitical tensions, oil price spikes, and inflation shocks tend to be temporary. Markets have weathered similar storms before and recovered.

In fact, we've already seen how quickly sentiment can shift. The ASX 200 recently posted one of its strongest single-day gains in a year on hopes of easing conflict and softer inflation data.

The same applies to AI concerns.

While investors are questioning whether current spending levels are sustainable, global demand for AI infrastructure, data centres, cybersecurity, and automation remains strong. These long-term trends continue to support many ASX-listed companies and the ASX share market.

Foolish Takeaway

When share prices fall but business fundamentals remain intact, the potential for future returns improves. Lower entry prices can boost dividend yields, increase upside potential, and reduce valuation risk.

In other words, buying during downturns can tilt the odds in your favour. Markets rarely give clear signals at the bottom.

But for long-term investors, today's volatility could be the kind of opportunity that builds serious wealth over time.

Sitting on the sidelines might feel safe, but it could also be the mistake that costs you the most.

The post Why sitting out this ASX share market chaos could cost you big appeared first on The Motley Fool Australia.

Between escalating global conflict, rising interest rates, AI disruption fears, and ongoing investor jitters, markets have been anything but steady.

But while some blue chips have struggled, others have thrived — proving it's not all doom and gloom.

Here's how five of the top ASX shares are tracking and what could come next.

Commonwealth Bank of Australia (ASX: CBA)

Starting with Commonwealth Bank of Australia, the banking giant is up 4.4% year to date but has slipped 5.3% over the past month.

CBA continues to benefit from its dominant market position and strong margins, but pressure is building from slowing credit growth and competition.

Still, its defensive earnings profile and consistent dividends should help it weather ongoing volatility, with analysts generally maintaining hold to modestly positive outlooks.

BHP Group Ltd (ASX: BHP)

Next is BHP Group, which is up 10.7% in 2026 but down 11.5% over the past month. Commodity price swings — particularly in iron ore — have driven recent weakness.

However, BHP's low-cost operations and exposure to future-facing commodities like copper position it well for the long term.

Many analysts remain constructive, pointing to its strong balance sheet and resilient cash flow.

Wesfarmers Ltd (ASX: WES)

This ASX share has had a tougher run, down 8.9% year to date and 10% over the past month. Retail weakness and cautious consumer spending have weighed on sentiment.

Even so, Wesfarmers' diversified portfolio, including Bunnings and Kmart, provides stability, and its track record of capital management keeps analysts broadly supportive despite near-term headwinds.

CSL Ltd (ASX: CSL)

It's also been a challenging period for CSL Limited. The healthcare giant is down 18.9% in 2026 and 3.6% over the past month.

 Softer earnings and margin pressure have hit the share price, but CSL's core strengths remain intact.

Demand for its life-saving therapies is resilient, and analysts continue to back a recovery, with many maintaining buy ratings and highlighting long-term growth potential.

Woodside Energy Group Ltd (ASX: WDS)

Finally, Woodside Energy Group has been the standout performer. The energy giant is up a remarkable 48% year to date and 25% over the past month, benefiting from rising oil and gas prices amid global conflict.

Woodside's strong cash generation and leverage to energy markets have driven gains, and if geopolitical tensions persist, the $66 billion ASX share could continue to outperform — though volatility remains a key risk.

Foolish Takeaway

The bottom line? 2026 has already delivered sharp swings for some heavyweight ASX shares. But while some sectors are under pressure, others are thriving.

For investors, it's a reminder that even in uncertain markets, opportunity is never far away.

The post How are these 5 ASX share giants really tracking in 2026? appeared first on The Motley Fool Australia.

Let's see what they are saying about these shares, courtesy of The Bull. Here's what you need to know:

BHP Group Ltd (ASX: BHP)

The team at MPC Markets has named this mining giant as a hold this week.

While it is a fan of BHP, it appears to be waiting for a pullback before recommending its shares as a buy. It said:

The global miner delivered a strong half year result in fiscal year 2026. Copper delivered the majority of earnings for the first time in the company's modern history. The dividend was above expectations. The balance sheet is in good shape. The conflict in Iran has rattled commodity markets, and BHP shares have fallen heavily.

Most of BHP's output goes to Asia, not through the Strait of Hormuz. The market is selling the ticker, not the fundamentals. We suggest adding on weakness, and holding for an upgrade when the conflict ends.

Commonwealth Bank of Australia (ASX: CBA)

Over at Sanlam Private Wealth, it has named this banking giant as a sell this week.

Although CBA is a high-quality bank, it isn't a fan of its valuation. This is particularly the case given how it believes rising interest rates could slow the global economy and credit growth. It explains:

The bank is a quality company and a staple in investor portfolios. It has established a strong track record of performance over many years. The company delivered a 5 per cent increase in statutory net profit after tax in the first half of fiscal year 2026.

However, the dividend yield was trading below 3 per cent on March 26, so better income is available elsewhere. The conflict in Iran suggests a possibly slowing global economy likely to impact credit growth in Australia's higher interest rate environment. CBA is trading at a premium to peers, so it may be time to consider reducing exposure in this volatile environment.

Pro Medicus Ltd (ASX: PME)

One ASX share that MPC Markets is positive on is Pro Medicus. It has named the health imaging technology company's shares as a buy.

MPC Markets thinks investors should be buying the dip after recent share price weakness. It said:

The company provides medical imaging software and services to hospitals and healthcare groups across the world. Its software has quietly become the dominant choice across some of the largest hospital networks in the United States. The product is faster, more scalable and modern than what its competitors offer. Artificial intelligence is built in, so it complements the business.

The share price plunge has been driven by broad technology sentiment as opposed to issues with the business. Earnings are still growing and the company still wins major new hospital contracts. In our view, the market has handed investors an appealing entry point into one of the best software businesses on the ASX. We retain our buy recommendation.

The post Buy, hold, sell: BHP, CBA, and Pro Medicus shares appeared first on The Motley Fool Australia.

ASX share market weakness has been driven by several factors, including global share market weakness, ongoing conflict in the Middle East, concerns about fuel prices and supply chain disruptions. 

Rising inflation figures and fears about more Reserve Bank interest rate hikes have also contributed to broad-based selling. 

And the problem is, this volatility is unlikely to ease in the near future.

The question is, does the current market present a once-in-a-lifetime opportunity for investors to buy in the dip? 

Or is it a better idea to sit tight until the worst is over?

Why it could be better to buy in the ASX share market dip?

ASX share market dips often mean that bargain-hunting investors can buy into high-quality stocks at below their fair value.

After all, it's worth remembering that historically, markets will eventually recover from geopolitical shocks. While it's likely that there could be more downside yet to come, investors who want their money to grow over the next five or 10 years could benefit from buying and holding onto shares with high-growth potential.

Take Zip Co Ltd (ASX: ZIP) for example. The company's shares have plummeted over the past six months after investors took gains off the table following a strong price rally in 2025. 

As a tech company, Zip has also been caught up in the recent sector-wide tech sell off. Rising concerns about the global impact of the war in the Middle East have driven investors away from high-growth technology stocks and towards more stable assets.

But the company's outlook is strong and analysts are tipping an upside of up to 255% over the next 12 months, at the time of writing.  

The cons of buying the the dip is that there could well be more downside to come before shares bottom out and start rising again. 

Why it could be better to stay on the sidelines?

Economists believe the Reserve Bank will raise interest rates again in 2026. This will increase borrowing costs, put pressure on household spending, and restrict company profit margins.

And if the conflict in the Middle East escalates further, or goes on for a lot longer than expected, it could have widespread repercussions on company costs and supply chains.

There is also concern that share prices across some sectors have risen faster than their business fundamentals. 

Take Commonwealth Bank of Australia (ASX: CBA) for example. The banking giant's share price is overvalued relative to its peers, and it's not supported by earnings or business fundamentals. CBA's current price-to-earnings (P/E) ratio, at the time of writing, is 27.62, which is much higher (and therefore more expensive) than that of other major banks. Analysts are forecasting the shares to crash up to 47% over the next 12 months.

If you're a more risk-adverse investor or one who wants to invest for the short term, now is the perfect time to sit back and wait. The market hasn't priced in the worst-case scenario yet.

Ultimately, whether to buy in the dip or sit on the sidelines right now depends on your risk tolerance and how confident you are about a near-term market recovery.

The post ASX share market sell off: Buy in the dip or stay on the sidelines? appeared first on The Motley Fool Australia.

It isn't hard to see why this is the case.

Australia's largest bank is widely regarded as one of the highest quality banks in the world.

In addition, CBA shares have a strong track record of delivering outsized returns for investors.

But right now, according to The Bull, experts think investors should be taking profit and putting their money into a beaten down exchange traded fund (ETF).

Let's see what it is recommending.

Sell CBA shares

Sanlam Private Wealth fears that higher interest rates could impact credit growth for CBA.

And given its premium valuation, it thinks this could make it a good time to reduce exposure to the bank. It explains:

The bank is a quality company and a staple in investor portfolios. It has established a strong track record of performance over many years. The company delivered a 5 per cent increase in statutory net profit after tax in the first half of fiscal year 2026. However, the dividend yield was trading below 3 per cent on March 26, so better income is available elsewhere.

The conflict in Iran suggests a possibly slowing global economy likely to impact credit growth in Australia's higher interest rate environment. CBA is trading at a premium to peers, so it may be time to consider reducing exposure in this volatile environment.

Buy this ASX ETF

Catapult Wealth is very positive on the BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC) after a heavy share price decline.

This week, the wealth management firm named the tech-focused fund as a buy. It thinks artificial intelligence (AI) disruption fears are overdone, explaining:

This exchange traded fund invests in Australian technology companies. ATEC has experienced a material pullback alongside the broader Australian technology sector, creating an attractive entry point for long term investors. Share prices in several of its key constituents, including Xero, WiseTech Global, Pro Medicus and REA Group, have fallen significantly despite stable earnings trajectories and ongoing revenue growth across the sector.

Market concerns surrounding artificial intelligence disruption appear overdone, in my view, particularly given the high costs of switching software platforms. Despite weaker sentiment, fundamentals are largely intact. In our view, an appealing opportunity exists to gain exposure to high quality Australian technology names through ATEC.

The post Forget CBA shares and buy this ASX ETF: experts appeared first on The Motley Fool Australia.

There is no portfolio yet. No momentum. Just a decision to begin.

But I actually think this is one of the best positions to be in. You have complete flexibility. No legacy holdings, no need to unwind past decisions. Just a clean slate and a long runway ahead.

If I were starting today with the goal of building a $100,000 ASX shares portfolio, this is how I would approach it.

Step one: focus on consistency

The first thing I would accept is that I do not need a large lump sum to get started. Instead, I would focus on investing in ASX shares regularly.

Whether it is $500 a month, $1,000 a quarter, or whatever is realistic for my budget, I think consistency matters far more than trying to wait until I have a big amount to invest.

In my experience, the habit of investing is more important than the initial amount. Once that habit is in place, the portfolio can begin to grow steadily over time.

Step two: start with a strong foundation

If I am building from scratch, I want a solid base early on.

For me, that would likely mean starting with a broad market exchange-traded fund (ETF) like the Vanguard Australian Shares Index ETF (ASX: VAS).

It gives instant diversification across the Australian share market, including large caps, mid caps, and smaller companies. That reduces the risk of being too reliant on any one stock in the early stages.

I would keep adding to this core position as I build the portfolio, particularly in the beginning.

Step three: gradually introduce high-quality ASX shares

Once the portfolio starts to take shape, I would begin adding individual ASX shares.

This is where I would focus on quality over quantity.

I would rather own a small number of strong businesses than spread myself too thin across too many names. Companies like CSL Ltd (ASX: CSL), ResMed Inc. (ASX: RMD), and Goodman Group (ASX: GMG) stand out to me as examples of businesses with long-term growth potential.

I would not rush this step.

Instead, I would build positions gradually over time, adding ASX shares when I have new funds available rather than trying to time the market perfectly.

Step four: think about allocation

As the portfolio grows, I would start thinking more deliberately about allocation.

For example, I might aim for a mix that includes a core ETF holding, a handful of growth-oriented companies, and perhaps some more defensive or income-focused names.

That could include businesses like Commonwealth Bank of Australia (ASX: CBA), which I think can provide a level of stability and income alongside higher-growth holdings.

The exact balance would evolve over time, but the key for me would be avoiding overexposure to any single company or sector.

Step five: stay patient

Reaching $100,000 with ASX shares will not happen overnight. It will likely take years of consistent investing, market ups and downs, and staying committed to the plan.

I think the biggest risk along the way is not market volatility. It is losing discipline.

Changing strategy too often, chasing trends or speculative stocks, or trying to outguess the market can all slow progress.

Personally, I would aim to keep things simple. Invest regularly, focus on quality ASX shares, and give the portfolio time to grow.

Foolish takeaway

Building a $100,000 ASX shares portfolio from zero is less about finding the perfect stock and more about building the right habits.

For me, that means starting with a diversified foundation, adding high-quality businesses over time, and staying consistent through market cycles.

It might feel slow at the beginning. But with patience and discipline, I believe it is achievable in time.

The post How I'd aim to build a $100,000 ASX share portfolio starting at zero appeared first on The Motley Fool Australia.

CBA has long been viewed as an expensive bank, but even the detractors of the bank would have to admit that the bank's performance this decade has been more consistent than its major competitors of National Australia Bank Ltd (ASX: NAB), ANZ Group Holdings Ltd (ASX: ANZ) and Westpac Banking Corp (ASX: WBC).

Time will tell exactly what CBA's profit and dividends will do over the next few years, but leading analysts have estimated what could happen with regards to its passive income.

FY26

We're three-quarters of the way through the 2026 financial year, so there's not much longer to go until we learn what the FY26 annual dividend will be.

The business recently reported its FY26 half-year result which included a number of positives.

Firstly, the interim dividend per share increased by 4% to $2.35 per share.

This dividend growth was funded by the ASX bank share's net profit, which increased by 5% to $5.4 billion, and the cash net profit rose 6% to $5.4 billion.

CBA attributed the profit growth to lending and deposit volume growth in its core businesses. This was partially offset by a lower net interest margin (NIM) and higher operating expenses (which was primarily due to inflation and its continued investment in technology).

Australia's biggest bank said that competition continues to be a headwind for the NIM.

The ASX bank share's pre-provision (for bad debts) profit grew 5% year-over-year to $8.1 billion, while the loan impairment was flat year over year (but down 21% compared to the second half of FY25).

Of course, all of these figures happened for the six months to 31 December 2025. That means the Middle East conflict didn't impact the numbers.

Analyst estimates could change in the coming weeks based on what happens in the Middle East, but currently the projection on CMC Invest suggests a FY26 annual dividend of $5.05 per CBA share.

That translates into a grossed-up dividend yield of 4.1%, including franking credits, at the time of writing.

FY27

If the Reserve Bank of Australia (RBA) does continue raising the Australian cash rate to try to tackle inflation, there could be a couple of major factors that play out for CBA.

It could lead to a higher NIM because CBA can earn more margin on lending out money on CBA account balances that pay low/zero interest (like transaction accounts). It may also mean that loan arrears and bad debts increase if some borrowers struggle with the higher interest rate.

The current estimate on CMC Invest suggests the payout will be $5.25 per CBA share, a rise of 4% year-over-year.

FY28

The last year of this series of projections could see another increase of the dividend for owners of CBA shares.

The forecast on CMC Invest suggests that the ASX bank share's annual dividend could increase to $5.40 per share. That would be a year-over-year rise of 2.9%.

If the business does pay that amount, it would mean a grossed-up dividend yield of 4.4%, including franking credits.

The post Here's the dividend forecast out to 2028 for CBA shares appeared first on The Motley Fool Australia.

But I don't think that is necessarily true.

Simple investing

I believe one of the most realistic ways to get to $1 million is surprisingly simple. 

It involves investing consistently, staying patient, and letting compounding do the hard work.

Let's say you invest $5,000 into ASX 200 shares each year and earn an average total return of 9% per annum. Based on that, it would take a little over 33 years to reach $1 million.

That is a long time. But this isn't about getting rich quickly. It is about building wealth steadily and deliberately over time.

The power of consistency

What stands out to me in this scenario is not the return assumption. It is the consistency.

Putting $5,000 into the market each year might not feel life-changing in the short term. In the early years, the portfolio will grow slowly, and it can feel like progress is limited.

But over time, your returns begin generating their own returns. Then those returns generate even more returns. Eventually, compounding starts to take over in a meaningful way.

I think this is where many investors underestimate what is possible. The real growth tends to come later, not at the beginning.

Backing quality ASX 200 shares

Of course, the 9% return assumption isn't guaranteed, but it is possible.

You set yourself up to have a chance of achieving it by owning a portfolio of strong, growing businesses over a long period of time. And in my view, the ASX 200 offers plenty of shares that could help deliver that.

For example, a company like Goodman Group (ASX: GMG) gives exposure to global logistics and data centre infrastructure, which I believe are supported by long-term structural trends.

Healthcare names such as ResMed Inc. (ASX: RMD) and Cochlear Ltd (ASX: COH) operate in areas with growing demand and, in my opinion, strong competitive advantages.

Then there are technology and software businesses like TechnologyOne Ltd (ASX: TNE), Pro Medicus Ltd (ASX: PME), and WiseTech Global Ltd (ASX: WTC). These companies have delivered strong growth historically, and I think they highlight how innovation can drive long-term returns.

Even more traditional names like Commonwealth Bank of Australia (ASX: CBA) or Telstra Group Ltd (ASX: TLS) can play an important role, particularly when it comes to income and stability.

I believe a mix of these types of businesses can help create a balanced portfolio that has the potential to compound over time.

Time in the market matters most

One thing I have learned is that waiting for the perfect moment to invest can be a costly mistake.

Markets will always give you reasons to hesitate. There will be volatility, corrections, and headlines that make investing feel uncomfortable.

But if the goal is to invest $5,000 each year for decades, I think consistency matters far more than timing.

Some years you will invest at higher prices. Other years you will invest during pullbacks. Over time, those decisions tend to average out.

What matters most, in my opinion, is staying invested in ASX 200 shares and continuing to add to your portfolio.

Patience will be required

There is no getting around the fact that 33 years is a long time.

It requires patience and discipline. It also requires sticking with the plan even when markets are not cooperating.

But when I look at the alternative, trying to chase quick gains or jumping in and out of the market, I think the long-term approach is far more reliable.

And importantly, it is repeatable.

You do not need to predict the next big winner. You just need to consistently invest in quality ASX 200 shares and give them time to grow.

Foolish takeaway

Turning $5,000 a year into $1 million is not about luck. It is about consistency, quality, and time.

By investing regularly into ASX 200 shares and aiming for a long-term return of around 9% per annum, I believe reaching that milestone is achievable, even if it takes a little over three decades.

It might not be exciting in the early years. But over time, compounding can turn a simple plan into something very powerful.

The post How to become a millionaire with a $5,000 investment in ASX 200 shares each year appeared first on The Motley Fool Australia.

That's not hard to understand. The big four have historically generated strong profits, paid out a large portion of earnings as dividends, and offered franking credits that can boost after-tax returns for local investors.

For many portfolios, bank shares have been a reliable source of income.

However, it's worth noting that the sector's strong share price performance over the past couple of years has had an impact. As share prices rise, dividend yields naturally compress, which means investors today are generally getting lower yields than they might have a few years ago.

With that in mind, let's take a look at how the major banks stack up right now based on consensus estimates according to CommSec.

Commonwealth Bank of Australia (ASX: CBA)

CBA shares ended yesterday's session at $173.18.

Consensus estimates currently predict fully franked dividends of $5.20 per share in FY26 and $5.50 per share in FY27 from Australia's largest bank. That equates to dividend yields of around 3.0% for FY26 and 3.2% for FY27.

While that is the lowest yield among the big four, it reflects the bank's premium valuation. Investors have historically been willing to accept a lower yield in exchange for what many consider to be the highest-quality banking franchise in Australia.

National Australia Bank Ltd (ASX: NAB)

NAB shares were trading at $42.56 at Thursday's close.

CommSec's consensus estimates point to fully franked dividends of $1.76 per share in FY26 and $1.82 per share in FY27. This implies dividend yields of approximately 4.1% and 4.3%, respectively.

That places NAB in the middle of the pack.

Westpac Banking Corp (ASX: WBC)

Westpac shares last traded at $40.46.

The bank is expected to pay fully franked dividends of $1.56 per share in FY26 and $1.60 per share in FY27. Based on those estimates, Westpac offers dividend yields of roughly 3.9% for FY26 and 4.0% for FY27.

Like NAB, this positions it as a relatively solid income option, though not the highest in the group.

ANZ Group Holdings Ltd (ASX: ANZ)

Finally, ANZ shares last traded at $36.65.

According to CommSec, the bank is expected to pay partially franked dividends of $1.68 per share in FY26 and $1.72 per share in FY27. That puts its forward dividend yield at roughly 4.6% for FY26 and 4.7% for FY27.

The partial franking is worth keeping in mind, as it can affect after-tax income compared to fully franked alternatives.

ANZ is the ASX bank with the biggest dividend yield

Based on current consensus estimates, ANZ offers the highest forecast dividend yield among the big four banks.

However, the difference is not especially large, and it comes with the trade-off of only partial franking.

Foolish takeaway

ANZ may currently offer the highest forecast yield, but its partial franking means the after-tax outcome may not be as straightforward when compared to fully franked alternatives like CBA, NAB, and Westpac. At the same time, CBA's lower yield reflects the premium the market places on its quality and consistency.

In my view, the banks can still provide attractive and relatively reliable income, but the best choice will depend on whether you prioritise yield, franking, or overall business quality.

The post Which ASX bank has the biggest dividend yield? appeared first on The Motley Fool Australia.

BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and CSL Ltd (ASX: CSL) have each built dominant positions in their respective industries over many years.

They've also all had very different share price journeys recently. That raises a simple question. Are they still worth buying today?

Here's how I'm thinking about each of them right now.

BHP shares

I still see BHP as an ASX 200 share to buy, particularly for investors who want exposure to global commodities.

What stands out to me most at the moment is its growing exposure to copper. This is now a major earnings driver for the business, and I think that matters. Copper demand is widely expected to increase over time as electrification, renewable energy, and infrastructure investment continue to scale globally.

That doesn't mean the path will be smooth. Commodity prices can be volatile, and BHP's earnings will always be tied to that cycle. But I think having exposure to a commodity with strong long-term demand tailwinds is a positive.

There's also the Jansen potash project to consider. Potash is linked to global food production, which is another long-term structural trend. It adds a different layer of diversification beyond iron ore and copper.

On top of that, BHP continues to generate strong cash flow and pay dividends, which can help balance returns during weaker periods for commodity prices.

For me, it remains a high-quality way to gain exposure to resources, with a tilt toward future-facing commodities.

CBA shares

I think Commonwealth Bank is one of the highest-quality ASX 200 shares.

The bank has built an incredibly strong position in Australia, supported by its scale, brand, and deep customer relationships. That kind of dominance is difficult for competitors to replicate.

What I like most is the consistency. Through different economic cycles, Commonwealth Bank has continued to generate strong profits and deliver reliable dividends. That track record is a big part of why the market assigns it a premium valuation.

The company's long-term investment in technology is another factor. It has helped the bank stay ahead in digital banking, which I think reinforces its competitive advantage.

The main consideration for me is valuation. Commonwealth Bank often trades at a premium to peers, and that can limit upside if expectations are already high.

Because of that, I would label CBA shares as a buy if you aren't already heavily exposed to banks. But in terms of quality, I think it's hard to look past.

CSL shares

CSL has probably been the most challenging of the three over the past year.

The share price has fallen sharply, reflecting softer results, impairments, and broader uncertainty around the business. It's been a difficult period, especially for a company that has long been seen as one of the ASX's premier names.

There's also been a lot going on behind the scenes. The company has changed CEO abruptly and is in the middle of a transformation program aimed at simplifying operations and improving efficiency. These kinds of changes can take time and often create short-term disruption.

Even so, I don't think the long-term story has disappeared.

CSL remains a global biotechnology leader with a portfolio of critical therapies, strong research capabilities, and a long history of innovation. It continues to generate significant revenue from products that treat serious diseases, and demand for those therapies isn't going away.

Encouragingly, management has maintained its full-year guidance, suggesting expectations for a stronger second half as growth improves in key areas.

I think this is one where patience matters. The turnaround may not happen overnight, but if execution improves, the current weakness could prove to be an opportunity over the long term. As a result, I would buy CSL shares at current levels.

Foolish takeaway

All three of these ASX 200 shares have different strengths, and I think they can each play a role in a diversified portfolio.

BHP offers exposure to commodities with long-term demand drivers like copper. Commonwealth Bank provides consistency and income, supported by a dominant market position. CSL brings global healthcare exposure, even if the near-term outlook remains uncertain.

None of them are immune to volatility, and each comes with its own risks. But taken together, I think they highlight the kind of quality businesses that can compound value over time.

The post Would I buy BHP, CBA, and CSL shares today? appeared first on The Motley Fool Australia.

Here are three Vanguard exchange-traded funds (ETFs) I think are worth a closer look as we head into April.

Vanguard Diversified High Growth Index ETF (ASX: VDHG)

The Vanguard Diversified High Growth Index ETF is the kind of fund I think of as a set and forget option.

It bundles together multiple asset classes, including Australian shares, global equities, and fixed income, into a single investment.

What stands out to me is how it simplifies decision-making. Instead of choosing between regions or sectors, you're getting a pre-built portfolio that automatically rebalances over time.

In periods where markets are volatile, that structure can be useful. You're not trying to pick the exact winner. You're staying invested across everything.

Vanguard Australian Shares Index ETF (ASX: VAS)

The Vanguard Australian Shares Index ETF offers investors something more familiar.

It gives broad exposure to the Australian market, including banks like Commonwealth Bank of Australia (ASX: CBA), miners like BHP Group Ltd (ASX: BHP), and other large domestic businesses like Wesfarmers Ltd (ASX: WES).

This is particularly useful for income investors. The Australian market tends to offer higher dividend yields than many global markets, supported by franking credits. The VAS ETF captures this.

At the same time, it still provides exposure to companies that benefit from economic growth and commodity demand.

Overall, I think it's a simple way to anchor a portfolio in the local market while collecting income along the way.

Vanguard FTSE All-World ex-US Shares Index ETF (ASX: VEU)

The Vanguard FTSE All-World ex-US Shares Index ETF fills a gap that many portfolios overlook.

A lot of global investing ends up heavily concentrated in the United States. The VEU ETF deliberately excludes the US and instead provides exposure to Europe, Asia, and emerging markets.

That changes the mix. You're getting access to different economic cycles, currencies, and industries that don't always move in sync with the US.

In a world where diversification matters, I think that's an interesting angle to add.

Foolish takeaway

The VDHG, VAS, and VEU ETFs each serve a different purpose.

One simplifies everything into a single portfolio, one anchors you to the Australian market and its income, and one expands your reach beyond the US.

Together, I think they can complement each other and help build a more balanced portfolio.

The post 3 top Vanguard ETFs I would buy in April appeared first on The Motley Fool Australia.