Every chatbot answer and every model trained has to run somewhere – and that somewhere is a vast, power-hungry data centre.

That simple fact is driving one of the largest capital spending waves in corporate history.

Concrete, copper, and kilowatts

The world's biggest technology companies – Amazon, Microsoft, Alphabet, and Meta Platforms – are racing to build the physical backbone of AI. Together, these hyperscalers plan to spend a combined US$725 billion on AI development this year, with roughly 70% to 75% of that flowing straight into infrastructure. 

Infrastructure here means something concrete. It means the data centres themselves, the chips inside them, the networking that connects them, and – crucially – the power grids and cooling systems that keep them running.

And this is not a one-year story. There are Broad estimates that global data centre spending will exceed US$2 trillion over the next five years. 

A data centre is essentially a warehouse full of servers that runs around the clock. It draws enormous amounts of electricity, generates significant heat, and requires constant cooling. Build thousands of them, and you create huge, durable demand for utilities, copper, engineering, and essential-service operators.

That is the part of the AI trade that often gets overlooked. The picks and shovels, not the gold.

Why a basket beats a single bet

Picking the single biggest winner from this buildout is hard. Will it be the chipmaker, the power company, the cooling specialist, or the copper miner? Guess wrong, and you can miss the whole move.

This is where exchange-traded funds (ETFs) earn their keep. Instead of betting on one name, an ETF spreads your capital across a basket of companies tied to the same theme. You trade the chance of picking a single moonshot for far lower concentration risk. 

Two ASX ETFs offer a neat way in.

The first is the VanEck FTSE Global Infrastructure (Hedged) ETF (ASX: IFRA). It holds around 150 listed infrastructure companies across developed markets, spanning electric utilities, toll roads, pipelines, airports, and rail networks. 

Think of IFRA as the boring backbone of the boom. Every data centre needs a power grid, and this fund owns the companies that run them. It currently trades around $25.50 and is forecast to yield almost 3% over the next 12 months. 

The second is the more direct play – the Global X Artificial Intelligence Infrastructure ETF (ASX: AINF). Launched in 2025, it was the first ASX-listed fund built specifically around the physical AI buildout.

AINF holds an equally weighted basket of 31 stocks across energy, materials, and data infrastructure, including copper and uranium producers, utilities, and engineering firms. It has large positions in Delta Electronics, GE Vernova, and Vertiv Holdings. 

The trade-off is clear. IFRA is broader, hedged, and pays an income. AINF is narrower, more thematic, and built purely for this moment.

Foolish Takeaway

The AI data centre boom is real, and it runs on far more than software. It runs on power, metal, and physical construction – the kind of long-lived assets that tend to keep earning long after the hype fades.

Neither fund is risk-free. A slowdown in hyperscaler spending or a renewed rise in long bond yields could weigh on both. But for investors who believe the buildout has years to run, IFRA and AINF offer two distinct ways to own the foundations rather than guess the winner.

Sometimes the smartest way to play a gold rush is to back the people selling the shovels.

The post 2 ASX ETFs positioned for the booming AI data centre buildout appeared first on The Motley Fool Australia.

James Gerrish from Shaw and Partners says Amazon, Microsoft, Google parent, Alphabet, and Facebook parent, Meta Platforms, are the hyperscalers of AI, and they plan to spend a combined $725 billion on AI development this year alone.

In a recent Market Matters newsletter, Gerrish said:

All four companies appear to be following the same narrative – the cost of falling behind in AI is greater than the risk of overspending.

Gerrish noted that 70% to 75% of this capex spending was going to AI infrastructure.

AI infrastructure includes GPUs, custom silicon, data centres, networking, and the energy and cooling systems required to run them.

This is a clear shift beyond traditional cloud computing capex, Gerrish said.

Gerrish provided an assessment and guidance on three ASX exchange-traded funds (ETFs) with exposure to the AI infrastructure buildout.

Here are his thoughts.

Global X Semiconductor ETF (ASX: SEMI)

The ASX SEMI is $35.47 apiece, down 2.3% on Tuesday and up 51% in the year to date (YTD).

Semiconductors control electrical currents in devices like computer chips and smartphones.

Gerrish said:

In simple terms, no AI model gets trained, no data centre gets built, and no smart device gets made without the chips SEMI's holdings produce, making it the most direct play on the raw computing power driving the entire AI buildout.

If the AI buildout continues to accelerate, this is where the capex flows first.

The ETF holds 31 global stocks, with more than 60% exposure to US names, positioning it at the pointy end of the AI infrastructure cycle.

It has already delivered ~36% in 2026, and we see scope for further upside, provided hyperscaler spending remains robust.

The world's biggest semiconductor manufacturer, Taiwan Semiconductor Manufacturing Company, and semiconductor designers Broadcom and Nvidia are among this ETF's largest holdings.

In terms of a buy-in price, Gerrish said he was bullish on this ASX ETF at about $31 apiece:

We like the SEMI ETF through 2026, but from a risk/reward perspective, would leave some flexibility to add into the next ~$3-4 pullback.

VanEck FTSE Global Infrastructure (Hedged) ETF (ASX: IFRA)

IFRA ETF is $25.19 apiece, up 1.2% today and up 8% YTD.

Gerrish said:

The IFRA ETF gives ASX investors diversified exposure to the world's essential infrastructure operators, electric utilities, toll roads, pipelines, airports and rail networks across developed markets.

It can be considered the boring backbone of the AI buildout, with every data centre needing a power grid, and IFRA owns the companies that run them.

However, the returns over the last year haven't been particularly boring, with the ETF up more than +16%.

The ETF holds about 150 stocks with more than 70% exposure to the US and Canada.

The ASX ETF's top holding is Australian toll road operator Transurban Group (ASX: TCL).

Gerrish added:

It's arguably less sexy than the pure AI plays, but increasingly relevant, data centres require enormous amounts of electricity, cooling, and physical construction.

The more AI adoption accelerates, the more demand rises for the heavy industries that support it.

For good measure, the ETF is also forecast to yield almost 3% over the coming 12-months.

Gerrish said he is bullish and 'long' on this ASX ETF, and it is held in the Market Matters' Core ETF portfolio.

Global X Artificial Intelligence Infrastructure ETF (ASX: AINF)

AINF ETF is $17.44 apiece, down 2.5% today and up 17% YTD.

Gerrish said:

AINF arguably offers the purest exposure among the four ETFs looked at today, providing targeted access to the physical backbone of AI, spanning energy, data and materials infrastructure.

This includes copper and uranium producers, utilities and engineering firms, effectively everything required to build and power the data centres underpinning AI's global expansion.

Only launched in April 2025, the AINF was the first ASX-listed fund targeting the physical buildout of AI, and it has delivered a strong ~20% return in 2026.

The AINF ETF invests in 31 stocks with about 50% exposure to the US market.

The largest positions are Delta Electronics Inc, GE Vernova Inc, and Vertiv Holdings Co.

In terms of value, Gerrish said he was bullish on this ASX ETF below $18:

We like this ETF moving forward, but from a risk/reward perspective, we would leave room to average into dips below $17.

The post Best 3 ASX ETFs to leverage massive artificial intelligence buildout appeared first on The Motley Fool Australia.

The idea isn't complexity. It's owning the right mix and sticking with it.

Here's a punchy strategy designed for investors targeting early retirement.

Growth, income anchor, and outsized gains

Start with WiseTech Global Ltd (ASX: WTC) as your primary growth engine. This is a high-quality software business embedded in global logistics, with strong pricing power and long-term expansion potential. It's the kind of company you hold for years and let compounding work in the background.

To balance that, Commonwealth Bank of Australia (ASX: CBA) plays the role of income anchor. If you're serious about early retirement, you'll eventually need reliable cash flow, and CBA's dividends can help fill that gap. It's not about explosive growth here—it's about dependability.

For a higher-risk, higher-reward tilt, PLS Group Ltd (ASX: PLS), formerly known as Pilbara Minerals, adds exposure to lithium and the broader electrification trend. Commodity stocks can be volatile, but that volatility is exactly where outsized gains can come from if the cycle plays in your favour.

Blue chips, international tech, and infrastructure

On the ETF side, Vanguard Australian Shares Index ETF (ASX: VAS) forms the core of the early retirement portfolio. It provides low-cost exposure to the broader Australian market, helping smooth out individual stock risk while still delivering solid long-term returns.

It's heavily weighted toward banks and miners, which dominate the local market. BHP Group Ltd (ASX: BHP) and CBA are typically the two biggest positions, alongside CSL Ltd (ASX: CSL) and the major banks.

To tap into global innovation, BetaShares Nasdaq 100 ETF (ASX: NDQ) gives you access to leading US tech names and AI-driven growth that simply isn't available on the ASX. This adds a powerful international growth layer. Tech dominates the portfolio, so returns can be powerful in a bull market, but expect volatility when sentiment shifts.

Rounding things out, iShares Global Infrastructure ETF (ASX: IFRA) introduces a more defensive element. While holdings are more spread out, you'll typically find companies involved in toll roads, airports, pipelines, and electricity grids.

Infrastructure assets tend to generate steady income and can act as a buffer during inflationary periods, which becomes increasingly important as you approach retirement.

Foolish Takeaway

What makes this combination effective is how each piece plays a role. The growth names push your portfolio higher over time, the income exposure helps prepare for life after work, and the diversification reduces the risk of relying on any single outcome.

Add in a disciplined approach – regular investing, reinvesting dividends, and staying invested through market swings – and the path to early retirement at 57 starts to look far more achievable than most people assume.

The post This ASX shares and ETF mix could be the key to early retirement appeared first on The Motley Fool Australia.

One distinction that VanEck believes could be worth monitoring is real assets. 

Real assets are physical, tangible investments such as property and infrastructure. These derive value from their use and often generate income. 

These differ from other investment classes like bonds, which represent contractual claims on value rather than ownership of physical goods.

A new report from VanEck has shed light on why ASX ETFs focused on physical assets could be worth considering. 

Infrastructure and listed property

Two examples of physical assets that VanEck points to are infrastructure and physical property. 

VanEck explained that global real estate includes investment opportunities not readily available in Australia, including student housing developments, storage, data warehouses, and hotels. 

Often, rental income is linked to inflation, so it tends to increase with CPI. Australians have had a long affinity with property investing, and the requirement for income is a key driver of its demand.

Investors have also come to recognise that infrastructure assets tend to be linked to steady and reliable income, supported by real assets that tend to be long-lived and that generally retain their value.

One example of this is ASX-listed toll operator Transurban Group (ASX: TCL). 

Generally, road tolls increase in line with changes in the Consumer Price Index. Government regulation determines the amount and the frequency of toll price increases each year. And despite these rises, these roads still have traffic jams.

This highlights one of the key drivers of the long-term performance of global infrastructure securities: they exhibit inelastic demand for the services they offer.

VanEck said that with many investors predicting a high inflation and low growth, a stagflationary environment, infrastructure is piquing investor interest.  

In the past global listed infrastructure has outperformed global equities during recent stagflationary environments, when US inflation was above 2.5%, and US real GDP Growth was below 2.5%, in 3 out of the last 4 periods.

How to gain exposure with ASX ETFs

VanEck has identified two ASX ETFs that offer exposure to these real assets. 

Firstly, the VanEck FTSE Global Infrastructure (AUD Hedged) ETF (ASX: IFRA). 

The fund gives exposure to listed infrastructure companies across developed markets. The underlying index framework is designed around infrastructure sub-sectors, with target exposures of roughly 50% to utilities, 30% to transportation, and 20% to other infrastructure. 

In practice, that means investors are buying into assets such as regulated utilities, toll roads, airports, pipelines, towers and related essential-service businesses. That is a compelling setup when markets are rewarding resilient cashflows and businesses with pricing power or long-duration demand.

The second fund to consider is the VanEck FTSE International Property (AUD Hedged) ETF (ASX: REIT). 

It gives investors exposure to roughly 300 international property securities/REITs across countries and sectors that are not easily accessible through the local market. 

We think the bullish case is that elevated cash yields, stable income demand, a recovering property sector and ongoing infrastructure investment keep supporting listed real assets. 

The main risks are a renewed rise in long bond yields, slower-than-expected rate cuts, and sector-specific weakness in parts of the property or infrastructure markets.

The post Why now is the perfect time to target real assets with these ASX ETFs appeared first on The Motley Fool Australia.

Defensive investing is often ideal during periods of market volatility because it prioritises stability, and risk management over aggressive growth. 

When markets fluctuate sharply due to economic uncertainty, geopolitical events, or shifting interest rates, defensive strategies focus on assets that tend to remain resilient – such as high-quality dividend stocks, essential consumer goods companies, and other sectors with steady demand. 

These investments typically experience smaller price swings and provide more predictable income, helping investors reduce the impact of sudden downturns. 

By emphasising consistency and financial strength, defensive investing allows portfolios to weather turbulent markets while maintaining the flexibility to pursue growth opportunities once conditions stabilise. 

For investors aiming to minimise volatility in their portfolios, here are three ASX ETFs to consider. 

VanEck Ftse Global Infrastructure (Hedged) ETF (ASX: IFRA)

IFRA gives investors exposure to a diversified portfolio of infrastructure securities listed on exchanges in developed markets around the world.

At the time of writing, it includes 134 holdings. 

The fund tracks the FTSE Global Core Infrastructure Index and primarily invests in utilities, energy infrastructure, and transportation assets around the world. 

It is currency-hedged to the Australian dollar and carries a management fee of approximately 0.20%.

It may attract defensive investors because infrastructure companies operate under long-term contracts or regulated revenue frameworks, which can make their income streams more predictable and their cash flows generally more stable than those of typical equities. 

The fund has risen almost 10% this year amidst wider global volatility. 

iShares Edge Msci Australia Minimum Volatility ETF (ASX: MVOL)

This ASX ETF aims to provide investors with the performance of the MSCI Australia IMI Select Minimum Volatility (AUD) Index. 

The index is designed to measure the performance of Australian equities that, in aggregate, have lower volatility characteristics relative to the broader Australian equity market.

According to iShares, minimum volatility strategies aim to lose less than the broad market during downturns. 

It includes exposure to companies providing essential services like Telstra Group Ltd (ASX: TLS) and Transurban Group (ASX: TCL). 

At the time of writing, it includes 105 holdings with its largest sector exposure being to: 

• Financials (30.84%)
• Materials (18.50%)
• Industrials (12.06%)
• Communication (7.22%)
• Consumer Staples (7.21%)

iShares MSCI World ex Australia Minimum Volatility ETF (ASX:WVOL)

As the name suggests, this fund uses the same strategy as the previous fund. However this ASX ETF has a global focus rather than Australia. 

The fund aims to provide investors with the performance of the MSCI World ex Australia Minimum Volatility (AUD) Index, before fees and expenses. 

The index is designed to measure the performance of developed market equities that, in the aggregate, have lower volatility characteristics relative to the broader global developed equity markets.

The post Looking to defend your portfolio from volatility? – 3 great ASX ETFs to consider appeared first on The Motley Fool Australia.

This portfolio spreads investments across thousands of companies worldwide, multiple sectors, and defensive assets while maintaining very low fees.

Many long-term Australian investors use a structure like this with multiple ASX ETFs. Let's have a closer look.

Vanguard Australian Shares Index ETF (ASX: VAS)

This ASX ETF forms the income backbone of the portfolio.

VAS tracks the S&P/ASX 300 Index (ASX: XKO), giving investors exposure to hundreds of Australia's largest companies. The ETF is heavily weighted toward financials and resources. They have historically been two of the most resilient sectors in the Australian economy.

Major holdings include blue-chip shares such as Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), and CSL Ltd (ASX: CSL).

These companies generate enormous cash flows and tend to keep paying dividends even during economic downturns. This income stream, often boosted by franking credits, can be especially valuable when markets become volatile.

With a management fee of around 0.07%, this ASX ETF is also one of the most cost-effective ways to gain broad Australian market exposure.

Suggested allocation: 35%

Vanguard MSCI International Shares ETF (ASX: VGS)

This ASX ETF adds global diversification and long-term growth potential.

VGS holds more than 1,300 companies across developed markets, with strong representation in the United States, Europe, and Japan.

Its largest positions include global technology and consumer giants such as Apple Inc (NASDAQ: AAPL) and Nvidia Corp (NASDAQ: NVDA).

These companies dominate global industries and possess enormous balance sheets and pricing power. Many continued expanding during past crises such as the global financial crisis and the pandemic.

This ASX ETF reduces reliance on the Australian economy while providing exposure to sectors underrepresented on the ASX, particularly global technology and innovation.

Suggested allocation: 35%

VanEck FTSE Global Infrastructure ETF (ASX: IFRA)

This VanEck ASX ETF invests in global infrastructure companies, including utilities, pipelines, transport assets, and communication towers. Infrastructure businesses tend to generate stable and predictable cash flows, which is why they are commonly used as defensive holdings in investment portfolios.

The ASX ETF tracks the FTSE Global Core Infrastructure Index and focuses primarily on utilities, energy infrastructure, and transport assets worldwide. It is currency hedged to the Australian dollar, and the management fee is around 0.20%.

Infrastructure ETFs can work well in a recession-focused portfolio because the services they provide are essential to the functioning of the economy. Revenues are often contracted or regulated. This helps provide greater predictability, and cash flows are generally more stable than those of typical equities.

Suggested allocation: 20%

BetaShares Australian High Interest Cash ETF (ASX: AAA)

The BetaShares Australian High Interest Cash ETF provides the defensive buffer.

Unlike equity ETFs, AAA invests in high-interest bank deposit accounts. This means its value tends to remain stable while generating interest income linked to Australian cash rates.

During severe market sell-offs, this allocation can reduce overall volatility. It also provides liquidity that investors can deploy into equities at lower prices.

Having a small cash allocation can also make it psychologically easier to stay invested during major market downturns.

Suggested allocation: 10%

The post 4 ASX ETFs to ride through recessions and market crashes appeared first on The Motley Fool Australia.

In Australia, funds like Vanguard Australian Shares Index ETF (ASX: VAS) and iShares Core S&P/ASX 200 ETF (ASX: IOZ) track the biggest companies domestically. 

Additionally, there are similar funds to track US blue-chips.

However, there have been plenty of new funds hitting the market this year as providers try to focus on niche sectors and themes.

At the end of October, Betashares dropped its newest fund. 

The fund is the FTSE Global Infrastructure Shares Currency Hedged ETF (ASX: TOLL). 

ASX ETF overview 

According to Betashares, the fund aims to track the performance of an index (before fees and expenses) that provides exposure to infrastructure companies from developed countries, hedged into Australian dollars.

It is currently made up of 135 holdings. 

The provider said 50% of the portfolio is invested in utilities, 30% in transportation companies and 20% in infrastructure REITs, energy pipelines and telecommunications.

Infrastructure companies provide capital-intensive essential services that tend to be in consistent demand across the economic cycle. As a result, they typically enjoy strong market positions and pricing power, making them a useful portfolio building block. Low historical correlations with global equities mean an allocation to global infrastructure can also contribute to portfolio diversification.

According to the provider, the companies that this fund invests in tend to generate stable, long-term cash flows that are often linked to inflation. 

It aims to generate attractive quarterly income, funded by the dividends paid by the companies in the portfolio.

It has a 12 month trailing dividend yield of 3.2%.

Geographically, its largest exposure is to companies in: 

• United States (59.0%)
• Canada (10.8%)
• Australia (6.2%)
• Spain (5.7%)
• Britain (4.2%)

The fund is currency-hedged to AUD. This means the fund seeks to neutralise fluctuations in foreign currencies vs the Australian dollar. That means investors hold a "global infrastructure" exposure but with reduced foreign-exchange risk.

How has it performed?

This ASX ETF has only been listed for roughly one month so far. 

However, it is up 1.26% in that span. 

The fund may be ideal for investors wanting global infrastructure exposure without currency risk. 

It is worth mentioning there are some funds already listed on the ASX that may be directly competing with this Betashares ETF. 

For example: 

• Vanguard Global Infrastructure Index ETF (ASX: VBLD) – This fund offers exposure to infrastructure sectors, including transportation, energy and telecommunications. The ETF is exposed to the fluctuating values of foreign currencies.
• VanEck Ftse Global Infrastructure (Hedged) ETF (ASX: IFRA) – Also gives investors exposure to a diversified portfolio of infrastructure securities listed on exchanges in developed markets around the world.

The post Meet the newest ASX ETF from Betashares appeared first on The Motley Fool Australia.

The infrastructure sector is responsible for the backbone of the US economy. Plenty of businesses are involved in owning and operating infrastructure, which can be good investments.

The US is the world's biggest economy and more than 330 million people live there. However, according to the ETF provider Global X, the US is in "dire" need of infrastructure upgrades, with at least US$3.8 trillion ($5.76 trillion) worth of additional investment to "adequately repair existing infrastructure and keep pace with economic expansion."

Global X also said a growing driver of demand for infrastructure investment is the increased frequency of natural disasters. In 2023, the US reportedly experienced a record-breaking 28 weather and climate disasters, each costing more than US$1 billion.

Which ASX ETFs can be used to take advantage?

Some businesses are involved with infrastructure projects' construction, engineering, material procurement, transportation, and equipment distribution processes.

These companies can significantly benefit from the increased expenditure on US infrastructure from governments and privately-funded infrastructure projects.

The Global X US Infrastructure Development ETF (ASX: PAVE) invests in US-domiciled companies to capture the value of growing spending in the world's largest economy.

Some businesses inside the PAVE ETF include Eaton Corp, Trane Technologies, Quanta Services, Martin Marietta Materials, Emerson Electric and Parker Hannifin. It has a total of approximately 100 holdings.

In terms of risks, Global X noted that these companies "typically face intense competition and can be adversely impacted by shifts in government regulations and actions."

Do other funds provide infrastructure exposure?

Other ASX ETFs and investments can also provide exposure to global infrastructure. The US economy's size leads to those funds usually having a large weighting to US shares.

Examples include Vanguard Global Infrastructure Index ETF (ASX: VBLD) (with a 68.8% US weighting), VanEck FTSE Global Infrastructure (Hedged) ETF (ASX: IFRA) (with a 57.2% US weighting) and Magellan Infrastructure Fund (currency hedged) (ASX: MICH) (with a 38% US weighting).

While these ASX ETFs have a smaller allocation to US infrastructure, they're also not targeted at the new spending on infrastructure in the country. Instead, many of the businesses in the portfolios I mentioned have existing assets that are typically generating strong cash flows for shareholders and are hard to replicate.

The post How to get exposure to a potential $5.7 trillion US sector with ASX ETFs appeared first on The Motley Fool Australia.

And all this risk and uncertainty has wreaked untold havoc on global stock markets. It's begun to feel like just as things start looking up, a new destabilising event comes along and rocks the stock markets all over again.

Here at the Fool, we understand how nauseating market volatility can be. And we know that no amount of upbeat articles explaining how share price corrections are just a normal part of a well-functioning market makes them any less anxiety-inducing to actually live through.   

But there are some steps you can take to reduce the impact of market volatility on your portfolio.

Safe-haven assets and defensive shares are types of investments that don't typically exhibit the same level of price volatility as riskier shares. This means that they often preserve their value in a crisis – even if the rest of the market is tanking. These shares are unlikely to provide stellar growth opportunities, but adding some of them to your portfolio could help prop it up in a downturn.

So in this article, we look at 5 top ASX share contenders for turbulent times!

CSL Ltd (ASX: CSL)

The first share on our list is ASX healthcare giant, CSL. Healthcare is a great sector to invest in if you're worried about the economy.

Healthcare companies – particularly mature, well-established ones like CSL – tend to remain profitable even when the rest of the economy is struggling. This can make them great defensive shares to add to your portfolio.

CSL is a biopharmaceutical company that specialises in developing treatments for serious medical conditions. This includes vaccines for illnesses like polio and whooping cough, antivenom for snake and spider bites, and lifesaving medical treatments derived from human blood plasma. CSL makes well over US$2 billion in net profit each year, and somehow still manages to spend over US$1 billion on researching and developing new products. This makes it one of the safest ASX healthcare shares to own.

Woolworths Group Ltd (ASX: WOW)

Consumer staples are another sector of the economy that tends to remain resilient in a downturn.

Staples include household essentials like groceries, cleaning products, personal hygiene products – even alcohol and tobacco. Because they are necessities, consumer staples are usually among the last products households will cut back their spending on when times are tough.

Stable levels of demand mean consistent profits for consumer staples companies, even if the economy is experiencing a recession.

As the operator of the largest supermarket chain in the country, Woolworths is the dominant player in the ASX consumer staples sector. The ongoing Senate inquiry into supermarket pricing has caused a bit of tumult in the sector recently, but Woolworths remains a good long-term play for those looking to de-risk their portfolio.

Telstra Group Ltd (ASX: TLS)

In the modern world, phone and internet access is about as necessary for human survival as food and water. It's how we communicate, shop, work – our entire economy relies on it.

When Telstra's main rival Optus had a nationwide outage in 2023, it was estimated to have impacted 400,000 businesses. Life, as we knew it, ground to a screeching halt.

Because the internet is so necessary in our daily lives, telecommunications shares can be good investments to own in turbulent times (provided they keep their networks running!). Consistently high demand means telcos tend to generate predictable profits regardless of the state of the broader economy. Telstra holds the largest market share among Australian telcos and it also has a long history of paying healthy dividends to its shareholders.

Global X Physical Gold ETF (ASX: GOLD)

This list wouldn't be complete without at least a couple of exchange-traded funds (ETFs).

ETFs are a great way to instantly diversify your portfolio. Investing in an ETF can provide you with exposure to whole sectors of the stock market in just a single trade – some can even give you access to entirely different asset classes.

That's the case with the Global X Physical Gold ETF. Buying units in the fund gives you exposure to the price of gold, the king of safe-haven investments. Throughout history, gold has always been seen as valuable, meaning that investors often flock to it in a crisis. This increase in demand often results in the price of gold actually rising when other financial markets are imploding. This could help stabilise the value of your portfolio if the share market goes belly-up.

VanEck FTSE Global Infrastructure Hedged ETF (ASX: IFRA)

The last contender on our list of shares to own for turbulent times is another ETF. As the name suggests, VanEck's Global Infrastructure Fund invests in a diversified portfolio of international infrastructure shares.

Among its largest holdings are Australian toll-road operator Transurban Group (ASX: TCL), Auckland International Airport Ltd (ASX: AIA) and leading US electric utility company American Electric Power Company Inc (NASDAQ: AEP).

In fact, around 50% of the fund is allocated towards utilities companies. Like telcos, utilities tend to generate consistent revenues regardless of economic conditions. This could make the Global Infrastructure Fund another good option for investors who want more stability in their share portfolios.

The post 5 ASX shares to buy for turbulent times appeared first on The Motley Fool Australia.