Aussies love how ETFs make it so easy to invest. They pretty much remove the need for individual stock research by allowing investors to buy a basket of shares in a single trade.

But that doesn't mean every ETF is a great buying opportunity all the time.

ASX ETFs can overshoot in value, just like individual shares, when there is too much exuberance in the market. 

The indexes they follow will never perform in a consistently straight line, and the thematic ETFs, in particular, will wax and wane as macroeconomic factors and social trends change.  

Here is one ETF to buy and one to sell, according to experts. 

Firetrail Australian Small Companies Fund – Active ETF (ASX: FSML)

Andrew Wielandt of DP Wealth Advisory says this actively managed ASX ETF is a buy.

On The Bull, Wieland noted that FSML ETF has risen from $1.55 per unit on 9 April to $2.22 today. 

The ETF's key holdings include Genesis Minerals Ltd (ASX: GMD), Aspen Group Ltd (ASX: APZ), Life360 Inc (ASX: 360), NexGen Energy Ltd (ASX: NXG), and Regis Healthcare Ltd (ASX: REG).

Wielandt explains his rating: 

This active exchange traded fund focuses on smaller ASX-listed companies. It generally holds between 30 and 60 companies, aiming to outperform the ASX Small Ordinaries Accumulation Index over the medium to long term. 

The fund returned 11.03 per cent, after fees, for the month ending August 31, 2025, outperforming the ASX Small Ordinaries Accumulation Index by 2.62 per cent.

We expect FSML to continue performing well. 

VanEck Global Listed Private Credit (AUD Hedged) ETF (ASX: LEND)

On the other side of the coin, Jonathan Tacadena from MPC Markets says the LEND ETF is a sell. 

On The Bull this week, Tacadena points out that this ASX ETF has fallen from $19.60 per unit on 28 July to $17.25 today. 

The analyst says: 

LEND provides investors with exposure to a portfolio of the 25 largest listed companies involved in private credit. It aims to provide investment returns before fees and other costs which track the performance of the index with returns hedged into Australian dollars.

The total return was down 5.22 per cent for the three months ending September 30, 2025. Investors may want to consider cashing in gains as we believe better prospects exist elsewhere on the ASX at this stage of the cycle.

The post ASX ETFs: Experts reveal 1 to buy and 1 to sell appeared first on The Motley Fool Australia.

When his tariff policy was first unveiled on 'Liberation Day', markets were rattled. The S&P 500 Index (SP: .INX) plunged to a 52-week low of 4,835 points in April. 

However, between deadline extensions, exemptions, and some trade deals, market sentiment has turned more positive. 

Last week, the S&P 500 reached an all-time high of 6,290 points. This is a staggering 30% higher from April's low point. 

However, with President Trump extending the deadline for some countries to negotiate and instructing tariffs on some nations to kick in on 1 August, uncertainty remains. 

Today, the S&P 500 Index is trading at a price-to-earnings (P/E) ratio of approximately 22.  

This is far above the historical average of 17. It is the highest in recent history, only to be exceeded by the Dotcom bubble that peaked in the year 2000. 

The S&P/ASX 200 Index (ASX: XJO) paints a similar picture, trading at a P/E of approximately 19. This is well above its historical average of 15. 

With equity markets trading at elevated multiples, Australian investors concerned about valuation may be finding it challenging to find attractively valued investment opportunities.

A moment for private credit

Last Friday, Marc Pinto, global head of private credit at Moody's Ratings, told Bloomberg that President Donald Trump's tariff policies present a compelling opportunity for private credit markets.

Tariffs are expected to motivate companies to shift operations to the US.

According to Pinto:

Governments are pressured and they have capacity constraints….That's where private credit markets can step in.

He highlighted data centres as an area where private credit is likely to step in and provide financing. Pinto expects US$2.5 trillion to be spent on data centres over the next 5 years, providing a massive opportunity.

How can ASX investors participate?

According to the Reserve Bank of Australia, global private credit assets under management quadrupled between 2013 and 2023 to U$2.1 trillion. North America accounts for around 70% of global private credit raised since 2008, while Europe represents around 25%. 

The Reserve Bank of Australia also estimates that there is around $40 billion in private credit outstanding in Australia, which is around 2.5% of total business debt.

Previously, private credit markets were only open to the wealthy and well connected, and out of reach of retail investors. However, in recent years, they have become more 'mainstream'. 

Australian investors wanting broad based exposure to private credit can invest in ASX-listed exchange-traded fund, VanEck Global Listed Private Credit (AUDH) ETF (ASX: LEND). 

For an annual management fee of 0.65%, investors gain exposure to 25 of the largest listed companies involved in private credit.

This ETF has only been around since January 2024, and is therefore yet to develop a long-term track record.

Since inception, the LEND ETF has averaged a return of 6.06% per annum. This comprised of 9.75% from income and a capital loss of 3.69%

However, should Trump's trade policies spur demand for private credit, the LEND ETF could be materially higher in five years' time.

The post Expert says demand for private credit could soar amid Trump's trade war. How to invest? appeared first on The Motley Fool Australia.

ASX investors now have several options to choose from if they wish to gain exposure to the world of private credit – or put simply, lending money to companies.

This kind of investing might appeal to a certain slice of the investing population. Private credit investments are governed by different rules than stock market investments. The certainty of income and lack of market volatility are aspects that some investors prioritise in their own portfolios. Not that this investing is risk-free, of course.

As with stocks, investors always have to worry about defaults and bankruptcies.

How to invest in private credit on the ASX

One option is to seek out companies that facilitate private credit themselves, and buy shares in those companies. Obviously, this method would have less appeal amongst investors who want to avoid owning stocks in the first place. But others may not mind if they are still getting the returns, albeit indirectly.

One company that has dedicated a lot of resources to private credit investments in recent years is investing house Washington H. Soul Pattinson and Co Ltd (ASX: SOL). Soul Patts happens to have just released its latest earnings report today. These covered the half-year to 31 January 2025.

This report revealed that Soul Patts' private credit portfolio, valued at $1.2 billion, now makes up 10% of the company's entire portfolio, up from 6% ($700 million) in the first half of FY2024.

Soul Patts grew this portfolio by a whopping 73.2% over the past 12 months and received a net cash flow of $94.1 million from it over the half year.

There's also an ETF for that

Investors who might prefer to access private credit investments more directly do have ASX options though. One such option is the VanEck Global Listed Private Credit ETF (ASX: LEND).

This exchange-traded fund (ETF) invests in a basket of global companies that are all direct providers of private credit. Some of LEND's current holdings include Blackstone Secured Lending Fund, Blue Owl Capital Corp, Ares Capital Corp, and Hercules Capital Inc.

This ETF was incepted back in January of 2024. Since then, it has averaged a return of 14.69% per annum. Of that 14.69%, 10.56% came from income, with the remaining 4.13% from capital growth.

LEND charges a management fee of 0.65% per annum.

The post How ASX investors can tap into the rise of private credit appeared first on The Motley Fool Australia.