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.

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

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

Vanguard MSCI Index International Shares ETF (ASX: VGS)

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

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

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

BetaShares Australia 200 ETF (ASX: A200)

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

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

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

iShares Core Composite Bond ETF (ASX: IAF)

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

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

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

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

Foolish Takeaway

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

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

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

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

If you're looking for a simple, diversified approach, these three ASX ETFs could form a powerful retirement foundation.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Starting with the this Vanguard ETF, which is built for income.

It focuses on high-dividend-paying Australian companies, making it a popular choice for retirees seeking steady cash flow. Its strengths lie in strong yield, franking credits, and exposure to some of the ASX's biggest and most reliable dividend payers.

Top holdings include Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) — both known for consistent payouts.

The risks? Concentration. This ASX ETF is heavily weighted toward banks and miners, which can increase volatility if those sectors underperform. Dividends can also fluctuate depending on economic conditions.

VHY ETF charges a management fee of 0.25% per year. That means you'll pay about $2.50 annually for every $1,000 invested — deducted automatically from the fund's returns. It's slightly higher than some broad market ASX ETFs, reflecting its focus on high-yield stocks.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Next is the Vanguard MSCI Index International Shares ETF, which brings global growth into the mix.

This fund gives investors exposure to hundreds of companies across developed markets, including the US, Europe, and Japan. That diversification is a major strength, reducing reliance on the Australian economy.

This ASX ETF also taps into some of the world's biggest growth engines. Key holdings include Apple Inc. (NASDAQ: AAPL) and Microsoft Corp. (NASDAQ: MSFT)

The downside? Currency risk and lower dividend yields compared to Australian shares. VGS is more about long-term capital growth than immediate income, which may not suit every retiree on its own.

VGS ETF has a management fee of 0.18% per year. It's considered very cost-effective for global exposure, especially given the diversification across hundreds of international companies.

iShares Core Composite Bond ETF (ASX: IAF)

Finally, this iShares ETF adds stability.

This ASX ETF invests in a diversified portfolio of Australian government and corporate bonds, helping to reduce overall portfolio volatility. It provides regular income and tends to hold up better during equity market downturns. This is making it a key defensive component.

Major holdings include Australian Government bonds and high-quality corporate debt issued by institutions like National Australia Bank Ltd (ASX: NAB).

The trade-off is lower returns. Bonds typically won't deliver the same growth as shares, and rising interest rates can impact bond prices.

This fund is the cheapest of the three, with a fee of just 0.10% per year. That's only $1 per $1,000 invested, making it a low-cost way to add defensive bond exposure to a portfolio.

The post 3 ASX ETFs to fund a comfortable retirement appeared first on The Motley Fool Australia.

Between artificial intelligence disruption, escalating tensions in the Middle East, and higher interest rates, investors are being hit from all angles. The result? Volatility — and plenty of it.

So here's how to invest when the ASX seems to be spinning out of control?

Lean into defensives

When uncertainty rises, defensive stocks tend to shine.

These are businesses that deliver essential services. Demand doesn't disappear when the economy slows.

Take Telstra Group Ltd (ASX: TLS). People still need mobile and internet access, no matter what markets are doing. That gives Telstra steady earnings and reliable dividends.

Then there's Transurban Group (ASX: TCL). It owns major toll roads across Australia and the US. Traffic may fluctuate slightly, but these are critical infrastructure assets with long-term contracts.

Defensive shares won't always shoot the lights out. But they can help stabilise your portfolio when things get shaky.

Back quality businesses

Volatility is also a great filter. Lower-quality companies tend to struggle when conditions tighten. Strong businesses, on the other hand, prove their worth.

Look for companies with clear competitive advantages. Think strong brands, dominant market positions, or unique assets. Healthcare giant CSL Ltd (ASX: CSL) is an example of a quality ASX stock.

Balance sheets matter too. Companies with low debt and solid cash flow have more flexibility. They can keep investing — even when times are tough.

And don't forget earnings reliability. Consistent profits give investors confidence and reduce downside risk.

In uncertain markets, quality tends to outperform.

Use ETFs to smooth the ride

If picking individual stocks feels too risky right now, an exchange-traded fund (ETF) can help.

They offer instant diversification. That reduces the impact of any single company or sector.

Income-focused ETFs can provide a steady cash flow. Dividend strategies, in particular, tend to favour more mature, stable businesses. Vanguard Australian Shares High Yield ETF (ASX: VHY) is heavily weighted towards banks, miners, and energy giants like Woodside Energy Group Ltd (ASX: WDS)

Bond ETFs are another option. They typically behave differently to equities and can help cushion market swings. iShares Core Composite Bond ETF (ASX: IAF) has broad exposure to Australian government and corporate bonds and provides investors with quarterly income.

Blending equities with income and fixed income exposure can make a portfolio far more resilient.

Keep investing, just pace it

Timing the market during volatile periods is incredibly difficult.

That's where dollar-cost averaging comes in.

Instead of investing a lump sum, you spread your investments over time. You buy more when prices are low and less when they're high, without trying to predict the perfect entry point.

It's a simple way to invest through turmoil. And it works.

More importantly, it keeps you in the market. Sitting on the sidelines often means missing the recovery.

Foolish Takeaway

Yes, markets are volatile. There's a lot going on and plenty of reasons for uncertainty.

But that doesn't mean investors should freeze.

Focus on defensives. Prioritise quality. Use ETFs to diversify. And keep investing steadily.

Because in the long run, staying calm is often the biggest advantage of all.

The post ASX chaos? Here's how to invest smart, stay calm and win 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.

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

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

Australian backbone

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

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

Global heavyweights

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

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

Growth kicker

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

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

Liquidity and safety

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

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

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

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

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

Start with the big, boring stuff

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

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

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

Home bias: helpful, not obsessive

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

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

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

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

Add bonds for ballast

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

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

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

Keep costs on a tight leash

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

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

Resist the siren song of themes

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

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

Rebalance, don't react

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

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

The golden rule: keep it simple

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

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

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.

Let's take a look at how much you'll receive.

If you chose to participate in the distribution reinvestment plan (DRP) for any of these iShares ETFs, we've provided the DRP prices, too.

It's dividend day for IVV ETF investors and others

Here is a summary of the dividend amounts that people invested in these iShares ETFs will receive today.

The iShares S&P 500 ETF (ASX: IVV) will pay 17.371762 cents per unit. The DRP price is 62.963308 cents.

The iShares Global 100 ETF (ASX: IOO) will pay 144.788408 cents per unit. The DRP price is 162.474210 cents.

The iShares Core S&P/ASX 200 ETF (ASX: IOZ) will pay 28.004199 cents per unit. The DRP price is 34.308186 cents.

The iShares Asia 50 ETF (ASX: IAA) will pay 317.017910 cents per unit. The DRP price is 120.104281 cents.

The iShares Core Composite Bond ETF (ASX: IAF) will pay 71.863797 cents per unit. The DRP price is 103.551430 cents.

The iShares MSCI Emerging Markets ETF (ASX: IEM) will pay 73.321424 cents per unit. The DRP price is 73.626987 cents.

The iShares Europe ETF (ASX: IEU) will pay 201.329885 cents per unit. The DRP price is 95.752689 cents.

The iShares MSCI South Korea ETF (ASX: IKO) will pay 142.553569 cents per unit. The DRP price is 111.875719 cents.

The iShares S&P/ASX 20 ETF (ASX: ILC) will pay 35.765356 cents per unit. The DRP price is 32.314116 cents.

But wait, there's more…

The iShares Government Inflation ETF (ASX: ILB) will pay 45.856295 cents per unit. The DRP price is 126.033139 cents.

The iShares MSCI Japan ETF (ASX: IJP) will pay 99.526157 cents per unit. The DRP price is 114.127567 cents.

The iShares S&P Mid-Cap ETF (ASX: IJH) will pay 15.907814 cents per unit. The DRP price is 47.288231 cents.

The iShares S&P Small-Cap ETF (ASX: IJR) will pay 56.095190 cents per unit. The DRP price is 167.136029 cents.

The iShares S&P/ASX Small Ordinaries ETF (ASX: ISO) will pay 5.747119 cents per unit. The DRP price is 4.931342 cents.

The iShares Global Consumer Staples ETF (ASX: IXI) will pay 103.428384 cents per unit. The DRP price is 98.952519 cents.

The iShares Global Healthcare ETF (ASX: IXJ) will pay 135.427098 cents per unit. The DRP price is 130.135897 cents.

How did ASX IVV perform in FY25?

The IVV ETF seeks to track the performance of the S&P 500 Index (SP: .INX) before fees.

US shares outperformed ASX shares again in FY25, and IVV ETF investors reaped the benefits.

The IVV ETF increased by 15.02% and delivered total returns (including dividends) of 15.13%, according to BlackRock.

Data from S&P Global shows the S&P 500 rose by 13.63% to close at 6,204.95 points on 30 June.

If we add dividends, the S&P 500's total gross return for the year was 15.16%.

The difference between the growth rate of the S&P 500 and the IVV ETF represents the impact of the currency exchange.

In Australian dollar terms, S&P Global data shows the S&P 500 rose by 15.8%, with total gross returns of 17.36%.

The post Own IVV ETF or other iShares ASX ETFs? It's dividend payday for you! appeared first on The Motley Fool Australia.

According to the final distributions schedule, iShares will pay investors next Friday, 11 July.

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

iShares has also announced the DRP prices for this next round of distributions. We have included those amounts below.

It's payday for IVV ETF investors and others

Here is a summary of the dividend amounts that people invested in this selection of iShares ETFs will receive on 11 July.

The iShares S&P 500 ETF (ASX: IVV) will pay 17.371762 cents per unit. The DRP price is 62.963308 cents.

The iShares Global 100 ETF (ASX: IOO) will pay 144.788408 cents per unit. The DRP price is 162.474210 cents.

The iShares Core S&P/ASX 200 ETF (ASX: IOZ) will pay 28.004199 cents per unit. The DRP price is 34.308186 cents.

The iShares Asia 50 ETF (ASX: IAA) will pay 317.017910 cents per unit. The DRP price is 120.104281 cents.

The iShares Core Composite Bond ETF (ASX: IAF) will pay 71.863797 cents per unit. The DRP price is 103.551430 cents.

The iShares MSCI Emerging Markets ETF (ASX: IEM) will pay 73.321424 cents per unit. The DRP price is 73.626987 cents.

The iShares Europe ETF (ASX: IEU) will pay 201.329885 cents per unit. The DRP price is 95.752689 cents.

The iShares MSCI South Korea ETF (ASX: IKO) will pay 142.553569 cents per unit. The DRP price is 111.875719 cents.

The iShares S&P/ASX 20 ETF (ASX: ILC) will pay 35.765356 cents per unit. The DRP price is 32.314116 cents.

Here are some more ASX ETFs…

The iShares Government Inflation ETF (ASX: ILB) will pay 45.856295 cents per unit. The DRP price is 126.033139 cents.

The iShares MSCI Japan ETF (ASX: IJP) will pay 99.526157 cents per unit. The DRP price is 114.127567 cents.

The iShares S&P Mid-Cap ETF (ASX: IJH) will pay 15.907814 cents per unit. The DRP price is 47.288231 cents.

The iShares S&P Small-Cap ETF (ASX: IJR) will pay 56.095190 cents per unit. The DRP price is 167.136029 cents.

The iShares S&P/ASX Small Ordinaries ETF (ASX: ISO) will pay 5.747119 cents per unit. The DRP price is 4.931342 cents.

The iShares Global Consumer Staples ETF (ASX: IXI) will pay 103.428384 cents per unit. The DRP price is 98.952519 cents.

The iShares Global Healthcare ETF (ASX: IXJ) will pay 135.427098 cents per unit. The DRP price is 130.135897 cents.

The post Own IVV ETF or other iShares ASX ETFs? Next dividends and DRP prices revealed… 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.

Some ETFs track the performance of certain commodities or sectors. And some of those sectors or commodities have suffered amid high inflation and interest rates.

But that hasn't been an issue for fixed-income ASX ETFs over the past year.

Some track bank deposit rates and others are known as bond ETFs. These exchange-traded funds hold a collection of various bonds, either corporate or government.

Now, most of these underperformed during the 18 months or so of global interest rate tightening. But now that rates in the United States and even Australia have likely topped out and are expected to begin coming down in late 2024 or 2025, the picture is changing.

What's happening with fixed-income ASX ETFs?

According to Australian ETF provider Global X, "higher interest rates have put the 'income' back in fixed income".

Global X noted that "A challenging climate has triggered investors to opt for more low-cost investment options that offer reliable returns … without taking on the higher volatility and market risk from conventional stocks."

The company said the rising popularity of fixed-income ASX ETFs, currently valued at some $28 billion, now sees these constitute 14% of the total Australian ETF market.

"An impressive $6.5 billion was invested into fixed income ETFs in 2023, representing 43% of the total market flows, the highest proportional level recorded," Global X said.

Its analysts reported that, for the first time, inflows into fixed-income ETFs in 2023 were on par with those into equity ETFs.

And with interest rates likely to begin easing over the next two years despite some sticky inflation issues, that could see some stronger performance from bond ETFs.

Why?

According to Global X:

Since fixed-rate bond coupons have an inverse relationship with interest rates, lower interest rates could make existing fixed-rate bonds more attractive, potentially leading to higher prices and capital gains for investors.

Two fixed-income exchange-traded funds to consider

There is a sizeable and growing basket of ASX ETFs focused on the fixed-income space.

Two that you may wish to consider are the Betashares Australian Investment Grade Corporate Bond ETF (ASX: CRED) and the iShares Core Composite Bond ETF (ASX: IAF).

As of 30 June, IAF returned 3.7% over the prior 12 months. That's after fees and includes the quarterly dividend payments.

As of 28 June, CRED has returned 8.8% over the prior 12 months, including post-fee and the monthly dividend payouts.

Looking to the 24 months ahead, both ASX ETFs could benefit if global interest rates begin to ease. This would increase the appeal of the higher-yielding, longer-term bonds these funds hold.

The post Why high interest rates are seeing investors flock to these ASX ETFs appeared first on The Motley Fool Australia.

Fees are one of the most detrimental aspects of owning ETFs and index funds, especially over long periods of time. So minimising the fees one pays to invest in an index fund is of the utmost importance. Luckily for ASX index investors, the past week has seen something of a price war kick off.

It started off with the iShares Core S&P/ASX 200 ETF (ASX: IOZ). At the start of the week, provider BlackRock announced that its 'Core' series of ETFs, which include the iShares ASX 200 ETF index fund, would have their fees slashed.

The iShares ASX 200 ETF previously charged investors a management fee of 0.09% per annum. That's $9 for every $10,000 invested per year. But this week, this fee was slashed by more than 40% to 0.05% per annum.

iShares also reduced the fees of another index fund that tracks the bond markets. The iShares Core Composite Bond ETF (ASX: IAF) previously charged investors 0.15% per annum. But it will now only ask 0.1% per annum.

ASX 200 index funds start ETF price war

Rival ETF provider BetaShares previously boasted the crown of having the cheapest ASX 200 ETF on the market with its BetaShares Australia 200 ETF (ASX: A200). Not to be outdone, it didn't take long for BetaShares to then announce it was reducing its fees. Its flagship index fund will go from charging 0.07% to 0.04% per annum. That's $4 per year for every $10,000 invested.

We haven't yet heard from the ASX 's most popular index fund though. The Vanguard Australian Shares Index ETF (ASX: VAS) is by far the index fund of choice for ASX investors. And by a large margin too.

The Vanguard Australian Shares ETF is a little different to the funds offered by BlackRock and BetaShares. It tracks the ASX 300 Index rather than the ASX 200. This enables it to provide a little more exposure to the bottom end of the Australian share market than the others.

But this Vanguard fund currently has a management fee of 0.1% per annum. That now puts it pretty far from the edge in terms of what other ASX-based index funds are charging. There's been no word yet as to whether Vanguard will be joining this new ETF price war. So watch this space.

The post There's an ETF price war on the ASX right now. Here's what you need to know appeared first on The Motley Fool Australia.

But there are so many ETFs out there these days, covering almost anything one can think of, that it can be difficult to know which ones are the best to have one's money in.

Between index funds, commodity funds and sector-specific ETFs, it can quickly become overwhelming to sift through the cornucopia of ETFs available on the ASX.

So today, let's look at just five ETFs that one exchange-traded fund expert reckons are all you need to successfully invest.

Expert names the only five ASX ETFs you need

When it comes to ASX ETFs, one of the leading experts on the matter is Chris Brycki. Brycki is the founder and CEO of investment company Stockspot. Stockspot builds an investment portfolio for its clients using only ETFs. He recently sat down with Livewire for an interview.

Brycki starts off by naming the five ETFs that he likes to use to build his investors' portfolios.

The first is none other than the Vanguard Australian Shares Index ETF (ASX: VAS). VAS is the most popular ETF on the ASX by funds under management. It is also the only ASX index ETF that tracks the S&P/ASX 300 Index (ASX: XKO), rather than the more popular S&P/ASX 200 Index (ASX: XJO).

This is one of the reasons why Brycki likes this ETF for exposure to Australian shares, also pointing to its low fees, greater liquidity and long-term returns.

But when it comes to international shares, Brycki is happier to go against popular opinion. Currently, the two most popular ASX-listed international shares ETFs are the iShares S&P 500 ETF (ASX: IVV), and the Vanguard MSCI International Shares Index ETF (ASX: VGS). But neither of these funds are Brycki's preferred avenue to international shares.

Instead, Stockspot favours the iShares Global 100 ETF (ASX: IOO). This fund holds only 100 of the world's largest companies. These hail from the US, as well as Europe, Japan, Korea and the United Kingdom. Stockspot uses IOO for its liquidity and longer-listed track record. Not to mention its habit of outperforming its rivals.

Diversifying with exchange-traded funds…

For access to emerging markets, the iShares MSCI Emerging Markets ETF (ASX: IEM) is Stockspot's fund of choice. This ETF holds more than 800 companies from emerging countries like China, India and Taiwan. IEM is also preferred by Stockspot for both its liquidity and long pattern of generating returns. That's despite some of its rivals offering lower fees.

Turning to assets outside the sharemarket now, and we have Brycki's preference for accessing fixed interest bond investments. The iShares Core Composite Bond ETF (ASX: IAF) holds bonds issued by Australian governments. As well as some investment-grade corporate bonds.

Stockspot chooses this bond for fixed-interest asset exposure for "its size, liquidity, track record, high credit quality and relatively short duration". Not to mention its lower fees compared to its rivals.

Stockspot's final ETF covers a different asset class again. And this time, it's gold. For this precious metal, Brycki's choice is the ETFS Physical Gold ETF (ASX: GOLD).

This ETF is backed by physical gold bullion, stored in a vault in London. Stockspot also likes the fact that it is unhedged. This means investors can benefit from a falling Australian dollar. Stockspot also appreciates GOLD's size, as well as the fact that it has the tightest spreads in buying and selling units.

The post How to successfully invest using only ASX ETFs: expert appeared first on The Motley Fool Australia.

At least three ASX ETFs have reached new 52-week lows just today. So let's check them out and see what they might have in common.

3 ASX exchange-traded funds hitting 52-week lows today

The first ASX exchange-traded fund hitting a new 52-week low today is the Vanguard Australian Fixed Interest Index ETF (ASX: VAF). This fund from popular provider Vanguard touched a low of $45.62 a unit today, which is getting quite far from its 52-week high of $51.44. VAF is a bond fund. It primarily holds investment-grade Australian government bonds, issued by both the federal and state governments, but also has some other fixed interest investments from corporations and local governments thrown in. 

Another ETF to check out is the iShares Core Composite Bond ETF (ASX: IAF). This exchange-traded fund is very similar to VAF in nature. It also holds mostly Australian government bonds, with a similar mix of state, local and corporate bonds thrown in. IAF units have also hit a new 52-week low today. This ETF's units hit $103.15 each this morning, again a ways away from this fund's 52-week high of $115.31.  

Finally, we have the BetaShares Australian Investment Grade Corporate Bond ETF (ASX: CRED). This fund is a little different to the above two, in that it only invests in corporate bonds rather than government bonds. This is designed to increase the yield available to investors, albeit without that 'risk-free' tag that comes with a Treasury. But unfortunately for investors, CRED is our third ASX exchange-traded fund to hit a 52-week low today. This ETF touched $23.18 a unit earlier today, putting even more distance between its 52-week high of $27.61. 

Why are bond ETFs being sold off?

So you might have noticed that these three exchange-traded funds are all fixed-interest or bond ETFs. This is not a coincidence then, it seems. Bonds typically rise in value when interest rates go down. That's because their already-set yield becomes more attractive than newer bonds. But the opposite is also true when interest rates rise, and this looks to be occurring today. 

Fresh from the all-time low interest rates we have seen around the world, the US Federal Reserve raised its rate for the first time in years last month. Just yesterday, our own Reserve Bank of Australia (RBA) signalled that rates might be rising here sooner than it initially flagged. 

Thus, it might come as no surprise that bond and fixed-interest ASX exchange-traded funds are currently being sold off. 

The post 3 ASX exchange-traded funds slumping to 52-week lows today appeared first on The Motley Fool Australia.

According to the new Australian ETF Review from ETF provider BetaShares, ASX ETFs have indeed had a rough start to 2022. Although inflows towards ASX ETFs were still positive over January 2022, it wasn't enough to stem the outflowing tide from global markets. According to BetaShares, total funds under management for the sector fell 3.7% over January. That represents a loss of $5.1 billion in funds under management. That left the ASX ETF sector with a total of $131.8 billion in funds under management at the end of January.

That was despite the launch of two new active ASX ETFs during the month, bringing the total number to 282 on the ASX. As an aside, BetaShares is expecting active ETF launches to remain "very frequent" throughout the rest of the year.

ASX ETFs suffer as global markets fluctuate

But even though ASX ETFs had a rough January overall, the sector has still grown by 36%, or $35.5 billion, over the past 12 months.

BetaShares also noted that monthly trading value over January increased by a hefty 26% to $10.3 billion. That's reportedly the second-highest monthly level on record.

So which ETFs were investors buying and selling over January? The research tells us that the BetaShares Australia 200 ETF (ASX: A200) was the most popular ETF by inflows over the month that was. A bit over $300 million found its way into A200. Next up was the Vanguard Australian Shares Index ETF (ASX: VAS), with slightly more than $220 million. Following that, we had the Vanguard MSCI Index International Shares ETF (ASX: VGS) with roughly $118 million in inflows.

Conversely, the iShares S&P/ASX 200 ETF (ASX: IOZ) saw the largest outflows over January, with more than $353 million leaving that fund. Other ETFs experiencing outflows were mostly bond, or fixed-interest funds. Those included the iShares Core Composite Bond ETF (ASX: IAF) and the iShares Treasury ETF (ASX: IGB). 

So another interesting month for ASX exchange-traded funds over January. The sector is clearly not immune from the market volatility we have seen over 2022 thus far. But it arguably is also showing resilience too. It will be interesting to see what the rest of 2022 brings to ASX ETFs. 

The post What's going so wrong for ASX ETFs in 2022 so far? 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.

The name's Bond…

That's because (unlike a share) a bond is essentially a loan. It doesn't represent an ownership stake in a business. Instead, it's an obligation to be repaid a certain amount of capital (or principal), along with interest. That's why bonds are sometimes referred to as 'fixed interest investments'.

Bonds can be issued by all manner of institutions, including corporations and municipalities. But the most common and popular form of bonds are public or government-issued bonds. These are popular because the government of an advanced economy is considered a 'risk-free' lender. Since a government can't really go broke or bankrupt (a privilege that owning currency printing presses allows for), there is no real risk that if you lend your money to the government, it won't be repaid.

It's relatively easy to access these bonds as well for any ASX investor. There is a plethora of bond or fixed-interest exchange-traded funds (ETFs) on the ASX. Some popular examples include the Vanguard Australian Fixed Interest ETF (ASX: VAF) and the iShares Core Composite Bond ETF (ASX: IAF).

So this all sounds pretty good, right?

Well, I think there are a 2 very good reasons why you should avoid bonds and bond ETFs today.

Shaken, not stirred

Firstly, the interest you can expect from a fixed-interest ETF is paltry. Because interest rates are at record lows right around the world (0.25% in Australia right now), the interest governments have to pay on their loans are also very low. Consider this – an Australian Government 10-year bond is today offering an annual yield of 0.93%. That's less than what you can conceivably get from a bank savings account these days. Thus, having a large chunk of your portfolio in bonds right now is essentially dead money.

Secondly, interest rates are at record lows. Whilst this seems similar to what we just discussed, there's another way interest rates affect bonds. Bonds are priced according to interest rates. If a government issues a 10-year bond at 0.93% per annum, and the following year issued one at 2% per annum because interest rates rise, the latter bond becomes more valuable than the former. Thus, because interest rates are virtually zero, anyone holding fixed-interest investments today will see their value decline significantly if the government started raising interest rates at any time over the next few years. And because the Australian cash rate is at 0.25%, there's a lot more ceiling than floor – and thus a lot of risk, in my view.

Foolish takeaway

Bonds used to be an effective asset class to diversify your portfolio, but the current financial environment makes them essentially impotent as an investment, in my view. Instead, it's my opinion that investors should be looking to diversify their portfolios in other ways for the foreseeable future. Perhaps a mix of sturdy dividend-paying shares is a good place to start.

The post Considering ASX bond ETFs for income? Here's why you should stay away appeared first on The Motley Fool Australia.

Now I don't put much stock in these kinds of turns, but there's no doubt the share market got a case of the wobbles last week and it's never fun seeing your own portfolio lose a significant chunk of its value on paper.

Some investors might be happy to ride out the volatility – it's a normal part of investing in the share market after all. And in many cases, it's the right thing to do for your future. The only alternative is selling shares, which is not a good solution for preserving your wealth under most circumstances.

But for those investors out there who can't tolerate the kinds of volatility we've been seeing (such as retirees or capital-conscious investors), there are other options. These options are difficult in themselves as record-low interest rates have altered the playing field somewhat.

But still, they are there. Here are three:

Dividend-paying shares

ASX shares with a long history of paying dividends are a great way of insulating your portfolio. Shares like Woolworths Group Ltd (ASX: WOW), Transurban Group Ltd (ASX: TCL) and Telstra Corporation Ltd (ASX: TLS) all have a beta below 1, which means they are usually less volatile than the overall share market.

The healthy dividends you can expect to receive from these companies will also help bolster your returns in times of volatility.

Use alternative asset classes

Some assets outside shares have something of an inverse correlation with the share market – meaning they usually go up if shares go down. Two of these are gold and government bonds and you can access both through exchange traded funds (ETFs) on the ASX.

Either the iShares Core Composite Bond ETF (ASX: IAF) or the ETFS Physical Gold ETF (ASX: GOLD) are good choices here in my view. You won't get the highest levels of income from these asset classes, but they can serve a useful role in capital protection in a portfolio, nonetheless.

Cash is king

Holding cash is the ultimate protection against volatility. Not only will your cash cushion stay safe in a share market downturn, but you might even be able to use to it pick up some of your favourite shares for a great price!

Again, low interest rates mean your cash won't be making you rich while you wait, but it is still a useful tool in managing portfolio volatility during uncertain times.

Foolish takeaway

There is no silver bullet when it comes to protecting your portfolio from volatility – every asset class and share has its benefits and detractions. And there is no free lunch when it comes to the risk/reward spectrum. But having a healthy mix can help mould your portfolio to your own needs and help protect your capital if that's your priority.

The post How to protect your ASX share portfolio against volatility appeared first on The Motley Fool Australia.