The RBA decided to leave the cash rate at 4.35%. 

According to the ABC, the move comes after headline inflation cooled a bit in June. Property prices also declined slightly more than anticipated in recent months.

What is the cash rate and why is it relevant?

The cash rate is the interest rate set by the Reserve Bank of Australia (RBA). It influences other interest rates across the economy, including borrowing and savings rates.

When the cash rate rises, borrowing becomes more expensive. This can reduce consumer spending and business investment and put pressure on company profits and ASX share prices. 

When it falls, the opposite generally occurs, supporting economic activity and share valuations.

While this isn't a hard and fast rule, monitoring the cash rate is important for ASX investors. It can influence borrowing costs, economic growth, company profits and ultimately share prices.

What else did the RBA say?

According to reports, the RBA also updated its inflation targets for 2026. 

The RBA's preferred measure of inflation, the trimmed mean, is expected to reach 3.3% by the end of 2026, down from the previous forecast of 3.5%.

It's expected to hit the mid-range of the RBA's 2-3% target by early 2028, with headline inflation also expected to fall into the mid-range around the same time.

This is also good news for investors, as high inflation can put pressure on ASX shares. 

High inflation often leads to higher interest rates, which increases borrowing costs and can reduce company profits and share valuations. 

However, some sectors, such as resources and companies with strong pricing power, may be better positioned to cope with inflation.

Where to invest in today's climate?

The monetary policy board's next interest rate meeting will be held on September 28-29. 

The current rate remains at its equal highest point since 2011. 

In general, higher interest rates tend to favour banks and some defensive sectors, while putting pressure on property, consumer discretionary and highly leveraged companies because borrowing becomes more expensive.

When the cash rate falls, sectors such as property, consumer discretionary, technology and other growth-oriented companies often benefit because borrowing costs fall and investors become more willing to pay for future growth. 

For investors looking to target bank shares, one option to consider is the VanEck Australian Banks ETF (ASX: MVB). 

It gives investors exposure to a diversified portfolio of ASX-listed banks and financial institutions.

If inflation falls and the RBA responds with rate cuts, growth, property and consumer-related shares are often among the areas to watch.

For investors optimistic about lower inflation, an ASX ETF to consider could be the Vanguard Australian Property Securities Index ETF (ASX: VAP). 

It includes a diversified blend of Australian real estate investment trusts (A-REITs) with residential, office, retail, and industrial assets.

The post The RBA just held the cash rate at 4.35% – what does this mean for ASX shares? appeared first on The Motley Fool Australia.

In fact, they make up almost a quarter of Australia's benchmark index in terms of market cap.

Because of this dominance, the performance of the big four bank shares heavily impacts many investors' portfolios. 

This is true both through individual exposure and many ASX ETFs that include these banks. 

How have they performed in 2026?

Compared to the year prior, the big four bank shares have underperformed in 2026. 

At the time of writing, year to date: 

• Commonwealth Bank of Australia (ASX: CBA) shares are up 5%
• National Australia Bank Ltd (ASX: NAB) shares are down 6%
• ANZ Group Holdings Ltd (ASX: ANZ) shares are down nearly 1%
• Westpac Banking Corp (ASX: WBC) shares have fallen 6%. 

There have been several headwinds contributing to this underperformance. 

Big four bank shares have generally underperformed in 2026 after entering the year on elevated valuations, leaving limited upside as investors questioned whether earnings growth could justify their premium prices. 

Interest rates, softer net interest margins and a rotation into cheaper sectors have also weighed on sentiment toward the major banks.

However, it is worth noting that there has been an upward trajectory in recent weeks, as murmurs of interest rate declines have improved sentiment.

What are experts saying about bank shares?

As we look towards the back half of 2026, there appears to be limited upside for big four bank shares. 

For Australia's largest bank, Morgan Stanley recently maintained its sell rating on CBA shares with a $125 target. 

This target represents a 26% downside compared to current levels. 

Morgan Stanley also has a sell rating on NAB and Westpac shares. 

Its price targets of $34.50 and $31.50, respectively, indicate between 13% and 14% downside risk. 

Finally, in some good news, Citi reaffirmed its buy rating on ANZ shares recently with a price target of $39.25.

This indicates an upside of roughly 9% from current levels. 

Why this unique ASX ETF could be an option 

It's important for investors to understand that broker targets aren't guarantees, and analysts can be wrong. 

However, the current consensus suggests the major banks may offer limited capital growth after their strong run. 

For investors who still want exposure to the sector without relying heavily on any single bank, a diversified ASX ETF such as VanEck Australian Banks ETF (ASX: MVB) could be a smart investment. 

It includes a majority exposure to the big four banks in one simple trade, as well as three other large ASX financials shares. 

It may help investors diversify their exposure to the big four banks. 

The post What are experts tipping for the big four bank shares in the back half of 2026? appeared first on The Motley Fool Australia.

The ex-dividend date for the distributions listed below is next Wednesday, 1 July. The record date is 2 July.

The indicative payment date for most of these ETFs is 27 July.

There are some absolute whopper dividends available for investors who own or buy these ASX ETFs before their ex-dividend dates.

Let's take a look.

How does a 14% to 16% dividend yield in a single payment sound?

The stand-out is VanEck Morningstar Wide Moat (AUD Hedged) ETF (ASX: MHOT), which will pay $20.54 per unit.

That's not a typo.

Today, the MHOT ETF is $138.40 per unit, which means this next distribution, on its own, represents a 14.8% dividend yield.

Let's just take a moment to let that soak in.

Also paying a massive dividend this time around is VanEck Gold Miners ETF (ASX: GDX).

GDX ETF will pay $17.99 per unit.

At the time of writing, ASX GDX is $111.09 per unit, which means the next dividend represents a 16.2% yield.

Why are these payments so big?

In the case of MHOT, this next dividend is the fruits of mainly US companies with major competitive advantages (moats), benefiting from a record-high market, turbocharged by the US dollar's weakness against an ascendant Aussie dollar this year.

In the case of GDX, the dividend is the result of miners' supercharged earnings from a skyrocketing gold price over the past two years.

Other dividends for VanEck ASX ETF investors

Here is a condensed list of estimated distributions that VanEck will pay ASX ETF investors on 27 July.

VanEck Morningstar Wide Moat ETF (ASX: MOAT) will pay $11.61 per unit.

The VanEck MSCI International Value ETF (ASX: VLUE) will pay $6.65 per unit.

VanEck MSCI Multifactor Emerging Markets Equity ETF (ASX: EMKT) will pay $4.64 per unit. 

The VanEck Morningstar International Wide Moat ETF (ASX: GOAT) will pay $2.68 per unit.

VanEck MSCI International Quality ETF (ASX: QUAL) will pay $2.16 per unit.

The VanEck Video Gaming and Esports ETF (ASX: ESPO) will pay $1.93 per unit.

VanEck Global Defence ETF (ASX: DFND) will pay $1.20 per unit. 

The VanEck FTSE China A50 ETF (ASX: CETF) will pay $1.19 per unit.

VanEck MSCI International Sustainable Equity ETF (ASX: ESGI) will pay $1.02 per unit.

But wait, there's more!

VanEck Australian Property ETF (ASX: MVA) will pay 79 cents per unit.

The VanEck MSCI Australian Sustainable Equity ETF (ASX: GRNV) will pay 65 cents per unit.

The VanEck Australian Resources ETF (ASX: MVR) will pay 56 cents per unit.

VanEck Small Companies Masters ETF (ASX: MVS) will pay 27 cents per unit.

The VanEck Australian Banks ETF (ASX: MVB) will pay 15 cents per unit.

VanEck MSCI International Small Companies Quality ETF (ASX: QSML) will pay 13 cents per unit.

The VanEck 5-10 Year Australian Government Bond ETF (ASX: 5GOV) will pay 12 cents per unit.

VanEck Global Clean Energy ETF (ASX: CLNE) will pay 7 cents per unit.

The VanEck Global Healthcare Leaders ETF (ASX: HLTH) will pay 4 cents per unit.

The post Own GDX, MOAT, or ESPO? VanEck just announced ASX ETF dividends appeared first on The Motley Fool Australia.

Saying that, if you are looking for an ETF that offers up a dividend yield greater than 4% today, your choices are far more nuanced. In fact, only a handful of funds still offer yields of that size. Even the broad-based index funds, long famed for their fat dividends, aren't in that ballpark. VAS, for example, currently trades on a trailing yield of 3.14% (as of yesterday's closing price).

That's why, if you're an investor who prioritises maximising dividend cash flow above all else, you may wish to consider the VanEck Australian Banks ETF (ASX: MVB) today.

This is a very simple ASX ETF. As its name implies, MVB gives investors access to an underlying portfolio of ASX bank shares. It keeps things simple, with just seven bank stocks in its portfolio at present. As one might expect, the big four are all there, and take up a lot of room.

Which ASX bank shares are in this dividend ETF?

As it currently stands, Commonwealth Bank of Australia (ASX: CBA) shares are at the top of the pile, taking up about 20% of MVB's portfolio. ANZ Group Holdings Ltd (ASX: ANZ) is next, contributing 19.9%, followed by Westpac Banking Corp (ASX: WBC)'s 18.9%.

National Australia Bank Ltd (ASX: NAB) accounts for a further 17%.

Then we have two of the ASX's smaller bank shares. Bendigo and Adelaide Bank Ltd (ASX: BEN) and Bank of Queensland Ltd (ASX: BOQ) are the smallest holdings in the VanEck Australian Banks ETF.

That's six. So what about number seven? Well, that would be the ASX's 'fifth bank', the millionaire's factory, also more formally known as Macquarie Group Ltd (ASX: MQG). Macquarie, although not a pure bank, is MVB's largest holding, making up 21.4% of the entire portfolio.

As such, the VanEck Australian Banks ETF can be thought of as a 'seven-for-the-price-of-one' investment in the Australian financial sector.

But let's talk dividends.

Over the past 12 months, investors have received four dividend distributions from MVB. These total $2.19 per unit. At the last MVB unit price of $42.52, that gives the VanEck Australian Banks ETF a trailing dividend distribution yield of 5.15%. Those came with an average franking level of 91%.

There's no guarantee buying MVB units today will secure you that kind of yield going forward, of course. No ASX dividend share or ETF can promise that. However, given the high levels of income ASX bank shares tend to pay out, I'd be surprised if this ETF didn't remain a reliable source of income for the foreseeable future.

The post This ASX bank ETF has a 5.2% dividend yield right now appeared first on The Motley Fool Australia.

As reported by Bernd Struben, Australia's official interest rate is now back at its post-pandemic 2024 highs.

November 2011 was the last time rates were higher than the current level. 

The decision from the RBA was influenced by inflation and the ongoing conflict in the Middle East. 

The RBA said:

In addition, the conflict in the Middle East has resulted in sharply higher fuel and related commodity prices, which are already adding to inflation. There are early signs that many firms experiencing cost pressures are looking to increase prices of their goods and services. Short-term measures of inflation expectations have also risen.

Why this matters for investors 

As a quick refresher, the RBA cash rate acts as a benchmark for the Australian economy. 

When the cash rate rises, borrowing becomes more expensive for businesses and consumers. 

This can slow economic activity and reduce company profits, often putting downward pressure on share prices. 

On the flip side, when the cash rate falls, borrowing is cheaper. 

This can stimulate spending and investment, which can boost corporate earnings and generally support higher share prices. 

In this way, changes in the cash rate influence both company fundamentals and investor behaviour across the ASX.

For the everyday Aussie, changes in the cash rate affect how much they pay on mortgages, loans, and credit cards. 

This has a direct influence on spending power and the overall cost of living.

But it isn't bad news for every ASX-listed company when interest rates are high. 

Here are some options for investors looking for companies that could stand to benefit from a high-interest-rate environment. 

Big banks

Banks make much of their profit from the difference between:

• the interest they charge borrowers (home loans, business loans), and
• the interest they pay depositors and wholesale lenders

This difference is called the net interest margin (NIM).

When the Reserve Bank of Australia raises rates, banks usually increase mortgage and business lending rates fairly quickly, but deposit rates often rise more slowly.

That can widen margins and increase profits.

This (not always) can mean bank shares like the big four can benefit in a high-interest-rate environment. 

Investors may choose to target these banks individually. However, another option is to target an ASX ETF that includes all the big four bank shares. 

One such option is the VanEck Australian Banks ETF (ASX: MVB). 

Insurance companies

Another subsector of the ASX that can outperform in high-rate environments is insurance shares. 

These companies can benefit from interest rate rises because they invest premiums and earn more when yields rise. 

Some options include: 

• QBE Insurance Group Ltd (ASX: QBE)
• Suncorp Group Ltd (ASX: SUN)
• Insurance Australia Group Ltd (ASX: IAG)

The post Where to invest with interest rates rising appeared first on The Motley Fool Australia.

According to the report, the Australian market could grow to $380 billion in funds under management in 2026, up from about $320 billion last year and just $71 billion in 2020.

The rise of thematic investing

A significant shift that is contributing to this trend is the rise of thematic investing.

Traditionally, ASX ETFs were designed to track broad, diversified indexes like the S&P/ASX 200 Index (ASX: XJO) or S&P 500 Index (SP: .INX). 

However thematic funds focus on much more specific, niche sectors or "themes". 

This focus can bring amplified returns when these sectors outperform the broader market, as investors gain concentrated exposure to high-growth areas. 

These can be areas like clean energy, artificial intelligence, or cybersecurity. 

However, this same concentration also introduces higher volatility and risk, particularly if the theme falls out of favour or fails to deliver on expected growth. 

Exploring which thematic funds have outperformed can give great insight into the broader economic landscape as to which industries and sectors are outperforming. 

With that in mind, here are three of the best thematic ASX ETFs over the last three years. 

Global X Semiconductor ETF (ASX: SEMI)

This ASX ETF seeks to invest in companies that stand to potentially benefit from the broader adoption of tech-enabled devices that require semiconductors. This includes the development and manufacturing of semiconductors.

It has risen more than 232% in the last three years, driven by the explosion in artificial intelligence.

Semiconductors are a special type of material that can control electricity – sometimes it lets electricity flow, sometimes it blocks it.

Because of this property, semiconductors are the building blocks of modern electronics. They're used to make microchips, which power everything from your phone to cars to medical devices.

BetaShares Global Gold Miners ETF – Currency Hedged (ASX: MNRS)

This ASX ETF aims to track the performance of an index (before fees and expenses) that comprises the largest global gold mining companies (ex-Australia), hedged into Australian dollars.

In the last 3 years, it has risen more than 173%. 

It has risen over the past three years mainly because a strong bull run in gold prices boosted the profits of gold mining companies, whose earnings (and share prices) tend to increase faster than the underlying commodity.

VanEck Australian Banks ETF (ASX: MVB)

Put simply, this fund gives investors exposure to a portfolio of seven ASX-listed banks and financial institutions. 

This includes the big four banks. 

It has risen approximately 48% in the last three years, driven by high interest rates boosting bank profits, and solid dividend payouts attracting investors. 

The post 3 of the best performing thematic ASX ETFs over the last 3 years appeared first on The Motley Fool Australia.

Many price targets indicated these blue-chip stocks were fully valued. 

For example, Commonwealth Bank of Australia (ASX: CBA) was consistently listed as a sell as it reached record highs in the middle of 2025. 

While it did retreat in the back half of last year, it never reached the lows expected by some analysts. 

Fast forward to February earnings season, and all big four bank shares saw healthy stock price growth on the back of results. 

This stock price spike wasn't anticipated by many. 

It's a good lesson to remind investors that broker price targets are not a guarantee. Even blue-chip bank stock markets can shift quickly. 

Another key lesson to remember is these big four bank shares represent a dominant part of the ASX. 

Just as US focussed investors may want exposure to Apple or Tesla, here in Australia, it's the big banks that sit atop the market cap rankings. 

Let's see how much investors may have cashed in over the last months investing in these blue-chip bank shares. 

NAB, Westpac and ANZ lead the charge

Over the last 12 months, these three ASX bank shares have brought similar returns. 

Since this time last year:

• National Australia Bank Ltd (ASX: NAB) has risen 34.88%
• Westpac Banking Corp (ASX: WBC) has climbed 31.45%
• ANZ Group Holdings Ltd (ASX: ANZ) has increased 32.39%. 

For context, a $10,000 investment made in one of these companies a year ago would today be worth between $13,100 – $13,500 depending on the stock.

Meanwhile, CBA shares have risen 10.72%, still slightly ahead of the S&P/ASX 200 Index (ASX: XJO). 

It's worth noting CBA shares are up 18% since late January. 

How to invest in ASX bank shares

ASX bank shares led the way in February, reminding investors that stock prices can continue to rise even when valuations appear full. 

Those waiting for CBA shares to drop to $100 per share which was tipped by some brokers, may now be regretting a missed opportunity. 

It's proof once again for long term investors that time in the market can trump timing the market. 

For investors wanting wider exposure to ASX bank shares rather than individual holdings, one option is VanEck Vectors Australian Banks ETF (ASX: MVB). 

80% of the fund is allocated to the big four banks. The rest is made up of 3 other ASX bank shares. 

It can provide a more diversified approach rather than choosing one bank stock. 

The post How much have investors made in big four bank shares over the past year? appeared first on The Motley Fool Australia.

Zooming out a little further, we can see which sectors generally beat expectations and performed well. 

Investors can then target these sectors through individual shares or thematic ASX ETFs.

Here are some key sectors that performed well over earnings season, and funds that offer exposure to that sector. 

Big four bank recovery

It's well known that the big four banks are a cornerstone of Australia's economic landscape. 

But the performance of the big four banks surprised many this earnings season. 

In the past month: 

• National Australia Bank Ltd (ASX: NAB) have risen 12.8%
• Commonwealth Bank of Australia (ASX: CBA) are up nearly 19%
• Westpac Banking Corp (ASX: WBC) have climbed 9.4%
• ANZ Group Holdings Ltd (ASX: ANZ) are up 7.9%

Key earnings season highlights included: 

• NAB posted a 15% hike in its cash earnings for the first quarter of FY26 and a 6% increase in revenue.
• CBA reported a 6% increase in cash net profit to $5,445 million. The bank also lifted its interim dividend by 4%.
• Westpac reported a 5% increase in unaudited statutory net profit and a 6% increase in net profit excluding notable items.
• ANZ reported a first-quarter cash profit of $1.94 billion, up 75% from the second-half average of FY25.

It's worth noting, some brokers ratings indicate valuations on the big four banks now look inflated.

However,  this earnings season has already proven investors are more than happy to buy big four bank shares regardless. 

Which ASX ETFs include the big four?

If you are looking to target these companies through an ASX ETF, there are a couple of options. 

Firstly, investors might consider VanEck Vectors Australian Banks ETF (ASX: MVB). 

80% of the fund is allocated to the big four, in addition to three other ASX bank shares that make up the rest. 

It has risen 8.7% in the last month. 

Another option is the BetaShares S&P/ASX 200 Financials Sector ETF (ASX: QFN). 

While it doesn't only include banks, the big four make up 75% of the total fund. 

The other 25% is made up of other ASX-listed companies in the financial sector. 

It has risen almost 9% in the last month. 

Miners climb

Broadly speaking, blue-chip energy and materials/miners also performed well this earnings season. 

The S&P/ASX 200 Energy Index (ASX: XEJ) and S&P/ASX 200 Resources Index (ASX: XJR) are up roughly 7% in February.

This has included steady gains from some of Australia's biggest companies: 

• BHP Group Ltd (ASX: BHP) shares are up 10% in a month.
• Woodside Energy Group Ltd (ASX: WDS) shares have lifted 14%.
• Rio Tinto Ltd (ASX: RIO) shares are up over 5%.

For exposure to these companies, some ASX ETFs to consider include: 

• SPDR S&P/ASX 200 Resources Fund (ASX: OZR) includes roughly 50% weighting to these three companies. 
• BetaShares S&P/ASX 200 Resources Sector ETF (ASX: QRE) also has these three companies as its largest three by exposure. 

The post How to target earnings season winners with ASX ETFs appeared first on The Motley Fool Australia.

These are two ASX ETFs I would personally avoid buying in February, based on how I see 2026 shaping up.

BetaShares Australian Equities Bear Hedge Fund (ASX: BEAR)

The BetaShares Australian Equities Bear Hedge Fund is designed to move in the opposite direction to the Australian share market on a day-to-day basis. If the S&P/ASX 200 Index (ASX: XJO) falls, the BEAR ETF should rise. If the market goes up, this fund should fall.

That structure makes sense as a short-term hedge during periods of heightened volatility or when investors are genuinely worried about a sharp market drawdown. But it is exactly why I would avoid it if you have a constructive view on equities.

Personally, I think the Australian share market could deliver something close to a 10% return in 2026. If that happens, the BEAR ETF is effectively positioned to lose money over time. Even modest but consistent market gains can be painful for inverse ETFs, especially when held beyond very short windows.

For me, the BetaShares Australian Equities Bear Hedge Fund is a tactical tool, not a long-term investment. If you believe the market's next meaningful move is higher, owning an ETF that is structurally betting against that outcome just does not make sense.

VanEck Australian Banks ETF (ASX: MVB)

I am generally supportive of parts of the Australian banking sector. In fact, I am a shareholder in Commonwealth Bank of Australia (ASX: CBA) and still view it as one of the highest-quality businesses on the ASX.

The issue with the VanEck Australian Banks ETF is concentration. The ETF gives you broad exposure across the major banks, and that is where I see the problem emerging.

While CBA continues to execute well, I am less convinced the same can be said for all of its peers heading into 2026. Margin pressure, slower credit growth, and higher capital requirements could weigh on earnings for some other banks, naturally restricting returns for the ETF as a whole.

Rather than owning the entire sector through the MVB ETF, I think investors may be better served by being selective or allocating capital to areas of the market with clearer growth or income tailwinds.

Foolish Takeaway

Neither of these ETFs is bad in isolation. They simply feel mismatched to the current environment and my outlook for the year ahead.

With markets showing signs of resilience and selective opportunities emerging elsewhere, I think February could be a better time to focus on funds positioned to benefit from growth, rather than betting against the market or tying returns to parts of the banking sector that may struggle to keep up.

The post 2 ASX ETFs to avoid in February appeared first on The Motley Fool Australia.

When you look at the S&P/ASX 200 Index (ASX: XJO), you notice it is heavily weighted towards sectors like financials (big banks) and materials/resource giants. 

In fact, these two sectors make up more than half of the ASX 200 in terms of market cap.

While it's important to have a diversified portfolio, investing in these markets can also capture strong returns when they outperform. 

If you are looking to ride the returns of Australia's largest sectors, here are some thematic ASX ETFs to consider. 

BetaShares S&P/ASX 200 Resources Sector ETF (ASX: QRE)

This ASX ETF offers exposure to the largest ASX-listed companies in the resources sector, including BHP, Rio Tinto, Woodside Petroleum and more.

Investors should be aware it is heavily weighted towards BHP Group (ASX: BHP) which makes up 33% of the fund. 

In total, it is made up of 43 holdings. 

A bet on Australian resources over the last 10 years has proved a strong investment. 

This ASX ETF is up more than 200% since January 2016. 

This includes a rise of more than 30% in the last 12 months. 

VanEck Vectors Australian Banks ETF (ASX: MVB)

Australian banks make up a massive part of the economy thanks to the dominance of the big four. 

This ASX ETF from VanEck offers a portfolio of ASX-listed banks and financial institutions in one trade. 

The fund is made up of 7 holdings: 

• Commonwealth Bank of Australia (ASX: CBA) 
• National Australia Bank Limited (ASX: NAB)
• Westpac Banking Corporation (ASX: WBC) 
• Australia And New Zealand Banking Group (ASX: ANZ) 
• Macquarie Group Limited (ASX: MQG)
• Bendigo and Adelaide Bank Limited (ASX: BEN)
• Bank of Queensland (ASX: BOQ)

The fund has an almost equal weighting of 20% each for the big four banks. 

Essentially, these four make up 80% of the fund, with Macquarie representing a 17.5% weighting and the final two, smaller banks combining for a 2.6% weighting. 

The fund has risen 66% in the last 5 years. 

VanEck Vectors Australian Property ETF (ASX: MVA)

While real estate isn't one of the biggest sectors on the ASX, it remains a vital component of the Australian economy due to its role in investment, employment, and housing.

This ASX ETF from VanEck gives investors exposure to a diversified portfolio of Australian REITs.

A real estate investment trust (REIT) is a company that owns and operates property assets that typically produce income.

This fund from VanEck is made up of 13 holdings, and includes a 4% dividend yield.

It has risen 13% over the last year. 

The post Best ASX ETFs to target winning Aussie sectors in 2026 appeared first on The Motley Fool Australia.

Every year, new funds are hitting the ASX, giving investors more options to add thematic exposure to their portfolios. 

I also believe in some circles, there is a misconception that ASX ETFs can't bring significant returns compared to individual stocks. 

While ASX ETFs aren't likely to double overnight, gaining timely exposure to certain sectors can provide big upside. 

One such fund that has performed exceptionally well recently is the BetaShares Global Banks ETF – Currency Hedged (ASX: BNKS). 

An ASX ETF with niche exposure 

Some ASX ETFs track indexes like the S&P/ASX 200 Index (ASX: XJO) or the S&P 500 Index (SP: .INX). 

However this fund offers specific exposure to the largest global banks (ex-Australia). 

At the time of writing, it is made up of 60 underlying holdings. This includes banks such as JP Morgan Chase, Bank of America and Wells Fargo. 

Its largest exposure by geography is: 

• United States (28.3%)
• Canada (14.6%)
• Britain (9.5%)

Proven success 

Since April 9th, it is up 50%. 

This has far outpaced the ASX 200 Index (up 20%) and the S&P 500 Index (up 23%) over the same timespan. 

Zooming out even further, it has a per annum return of 22.82% over the past 5 years. 

This means an initial investment of $10,000 five years ago would today be worth $22,321. 

Not bad for a set and forget ASX ETF. 

Can it continue?

While past performance never guarantees future performance, the fund is outperforming for a few reasons. 

This fund is benefiting from a powerful combination of cyclical recovery, policy tailwinds, and renewed investor confidence in global banking profitability.

Global deal-making and IPO activity has surged recently, with interest rate spreads remaining wide. 

Furthermore, US regulatory easing is freeing up capital for dividends and growth. 

For investors looking for exposure here in Australia, another bank focussed ASX ETF that has surged recently is VanEck Vectors Australian Banks ETF (ASX: MVB). 

It is up 31% since April and has nearly doubled in the last 5 years. 

A combination of these two would provide investors with exposure to leading banks both in Australia and globally. 

The post This ASX ETF is up 50% since April and can keep going appeared first on The Motley Fool Australia.

I often advocate for these to make up some portion of an investor's portfolio because they can take some of the guesswork out of long-term decisions. 

For example, investors may learn that in Australia, many of the largest, market-dominant stocks are banks. 

How dominant are bank stocks?

At the time of writing, 5 of the top 10 companies by market capitalisation are part of the bank/financial sectors. 

This might prompt investors to compare the big four banks, or other finance stocks and try to decide which one to add to their portfolio. 

The challenge, of course, is predicting which will rise the furthest in the long term. 

The benefit of ASX ETFs is that you can actually get exposure to all of them in one trade. 

Here are two examples that track this sector that have brought big returns over the past year. 

BetaShares S&P/ASX 200 Financials Sector ETF (ASX: QFN)

As the name suggests, this fund tracks the performance of an index (before fees and expenses) comprising the largest ASX-listed companies in the financial sector, including the 'Big 4' banks and insurance companies, but excluding real estate investment trusts (REITs).

Its largest exposure (31.3% weighting) is to Commonwealth Bank of Australia (ASX: CBA). 

At the time of writing, there are 28 companies in the portfolio. 

Over the last year, it has risen an impressive 18.66% and ended FY25 as one of the top 6 best performing ASX ETFs with Australian companies. 

This means a hypothetical investment of $10,000 a year ago is now worth $11,866 (before fees). 

That is more than $1,800 of profit in just 12 months. 

VanEck Vectors Australian Banks ETF (ASX: MVB)

This fund is even more concentrated than the previous fund. 

It contains 7 ASX-listed banks and financial institutions.

According to Vaneck, the fund always has a minimum of 6 holdings, with a goal of a maximum weighting of 21% for any one company. It also comes with an average dividend yield of 4.05%.

Based on this ethos, it has a close to even split between the big 4 banks and Macquarie Group Ltd (ASX: MQG), which all have weightings between 16-21%. 

Additionally, it has a small exposure (between 1.2% and1.6%) to Bendigo and Adelaide Bank Ltd (ASX: BEN) and Bank of Queensland Ltd (ASX: BOQ).

The fund has risen an impressive 15.45% over the last 12 months. 

This means a hypothetical investment of $10,000 a year ago is now worth $11,545 (before fees). 

The post $10,000 invested in these ASX bank-focused ETFs a year ago is now worth… appeared first on The Motley Fool Australia.

Investors in the VanEck Morningstar Wide Moat (AUD Hedged) ETF (ASX: MHOT) will receive the largest payment of $10.99 per unit.

Those who hold the unhedged VanEck Morningstar Wide Moat ETF (ASX: MOAT) will get the second-highest distribution of $7.56 per unit.

These two ETFs are different in that they do not try to mirror the performance of a major index like the S&P/ASX 200 Index (ASX: XJO).

Instead, the MOAT ETFs track about 50 US shares that have significant competitive advantages, or in other words, a wide 'moat'.

The wider the moat, the more protected a company's brand and its products or services are from competitors in the marketplace.

Here is a summary of VanEck ETFs that will be paying dividends to investors today.

It's payday for VanEck ASX ETF investors!

VanEck Global Clean Energy ETF (ASX: CLNE) will pay 7 cents per unit.

VanEck FTSE China A50 ETF (ASX: CETF) will pay $1.27 per unit.

VanEck Global Defence ETF (ASX: DFND) will pay 3 cents per unit. Find out more about this ETF here.

VanEck Morningstar Australian Moat Income ETF (ASX: DVDY) will pay 20 cents per unit.

VanEck MSCI International Sustainable Equity ETF (ASX: ESGI) will pay $2.34 per unit.

VanEck Video Gaming and Esports ETF (ASX: ESPO) will pay $1.04 per unit.

VanEck Gold Miners ETF (ASX: GDX) will pay 63 cents per unit.

VanEck Morningstar International Wide Moat ETF (ASX: GOAT) will pay $1.66 per unit.

VanEck MSCI Australian Sustainable Equity ETF (ASX: GRNV) will pay 57 cents per unit.

VanEck 5-10 Year Australian Government Bond ETF (ASX: 5GOV) will pay 11.5 cents per unit.

VanEck Global Healthcare Leaders ETF (ASX: HLTH) will pay 2 cents per unit.

Here are a few more…

VanEck Australian Property ETF (ASX: MVA) will pay 42 cents per unit.

VanEck Australian Banks ETF (ASX: MVB) will pay 40 cents per unit.

VanEck Australian Resources ETF (ASX: MVR) will pay 51 cents per unit.

VanEck Small Companies Masters ETF (ASX: MVS) will pay 32 cents per unit.

VanEck MSCI International Small Companies Quality ETF (ASX: QSML) will pay 9 cents per unit.

VanEck MSCI International Quality ETF (ASX: QUAL) will pay $1.23 per unit.

VanEck MSCI International Value ETF (ASX: VLUE) will pay $1.02 per unit.

VanEck ETFs among the market's top performers in FY25

According to ASX data, there were two VanEck ETFs among the six best-performing ETFs holding Aussie shares in FY25.

Ranked 4th, the VanEck Australian Banks ETF delivered a total annual return of 24.86%.

Ranked 6th, the VanEck Australian Property ETF produced a total annual return of 22.92%.

Another two VanEck ETFs featured in the six best-performing ETFs holding international shares in FY25.

Check them out here.

The post Invested in ASX MOAT or other VanEck ETFs? It's dividend day! appeared first on The Motley Fool Australia.

One distinct positive of ASX ETF investing is getting exposure to overseas markets. 

However, there are also funds that are designed to track specific sectors here in Australia. 

This can be a way to increase your exposure to a select few companies in a sector you believe has upside. 

There are two such funds that vastly outperformed the Australian market and doubled in the last 5 years. 

For context, the S&P/ASX 200 Index (ASX: XJO) is up 43.89% over the last five years. 

Let's look at the two. 

VanEck Vectors Australian Banks ETF (ASX: MVB)

Australian banks make up a vital portion of the domestic economy, and it's no surprise that this ETF has outperformed over the last five years, given the sharp rise from the big four. 

The fund is made up of 7 holdings with the following allocation at the time of writing: 

• ANZ Group Holdings Ltd (ASX: ANZ): 20.11%
• Westpac Banking Corp (ASX: WBC): 20.02%
• Commonwealth Bank of Australia (ASX: CBA): 19.74%
• National Australia Bank Ltd (ASX: NAB): 19.69%
• Macquarie Group Ltd (ASX: MQG): 17.62%
• Bendigo and Adelaide Bank Ltd (ASX: BEN): 1.64%
• Bank of Queensland Ltd (ASX: BOQ): 1.23%

This fund's share price was hovering around $20 each in 2020, and today sits at $40.70. 

MVB has surged over the past five years thanks to strong fundamentals, high dividend income from Australia's major banks, and margin expansion driven by rising interest rates since 2021.

It also comes with a 4% dividend yield. 

BetaShares S&P/ASX 200 Financials Sector ETF (ASX: QFN)

This fund aims to track the performance of an index (before fees and expenses) comprising the largest ASX-listed companies in the financial sector, including the big four banks and insurance companies, but excluding real estate investment trusts.

During 2020, its share price was as low as $7.00 each. 

Today, shares are trading at $17.48. 

The big four banks represent roughly 70% of the fund, which has contributed to its sharp rise. 

It also has small exposure to insurance companies such as QBE Insurance Group Ltd (ASX: QBE) and Suncorp Group Ltd (ASX: SUN). 

The post Australian ASX ETFs that have doubled in the last 5 years appeared first on The Motley Fool Australia.

Today, 425 ETFs are trading on the ASX and CBOE exchanges, according to the latest monthly ETF report from BetaShares.

Australian investors love ETFs for their ease and instant diversification.

Not to mention the single brokerage fee it takes to buy one big basket of ASX (or international) shares in just one transaction.

Here, we review newly published ASX data showing which ETFs holding ASX shares produced the best returns for investors in FY25.

Best 6 ASX ETFs for total returns in FY25

According to the data, here are the top six ETFs:

SPDR S&P/ASX 200 Financials ex A-REIT Fund (ASX: OZF)

The OZF ETF delivered a total one-year return of 30.76%. The historical distribution yield is 3.8%.

Its success in FY25 represents the ASX 200 financial sector's status as the No. 1 market sector of the year.

This ETF has a management expense ratio (MER) of 0.34%.

The SPDR S&P/ASX 200 Financials ex A-REIT Fund closed FY25 at $30.52 per unit.

BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)

The ATEC ETF delivered a total annual return of 30.44%. The historical distribution yield is 2.12%.

This ETF's second-place ranking is befitting, given that technology was the No. 2 market sector of FY25.

The ATEC ETF seeks to track the performance of the S&P/ASX All Technology Index (ASX: XTX) before fees.

In terms of capital growth, ASX tech shares outperformed US tech stocks by 2:1 in FY25.

This exchange-traded fund has a MER of 0.48%.

The BetaShares S&P/ASX Australian Technology ETF closed at $31.65 per unit on 30 June.

BetaShares Financials Sector ETF (ASX: QFN)

The QFN ETF delivered a one-year return of 30.17%. The historical distribution yield is 2.75%.

This ETF has a MER of 0.34%.

The BetaShares Financials Sector ETF ended the financial year at $18.12 per unit.

VanEck Australian Banks ETF (ASX: MVB)

The MVB ETF delivered a total annual return of 24.86%. The historical distribution yield is 4.13%.

This ETF has a MER of 0.28%.

The VanEck Australian Banks ETF closed at $42.86 per unit on 30 June.

Betashares Geared Australian Equities Complex ETF (ASX: GEAR)

The GEAR ETF delivered a total one-year return of 24.72%. The historical distribution yield is 1.45%.

This ETF has a MER of 0.8%.

The BetaShares Australian Quality ETF ended the financial year at $34.10 per unit.

VanEck Australian Property ETF (ASX: MVA)

The MVA ETF delivered a total annual return of 22.92%. The historical distribution yield is 4%.

Just one bank dominated the news for share price growth last year: Commonwealth Bank of Australia (ASX: CBA) shares (up 45%).

This ETF has a MER of 0.35%.

VanEck Australian Property ETF closed at $24.75 per unit on 30 June.

The post Top 6 ETFs holding ASX shares that produced the best returns in FY25 appeared first on The Motley Fool Australia.

The ex-dividend date for the distributions listed below is today, 1 July. The record date is 2 July.

The payment date is 25 July.

The biggest payment amount on the VanEck distribution list is a whopper at $10.99 per unit.

That will be paid to investors who own VanEck Morningstar Wide Moat (AUD Hedged) ETF (ASX: MHOT).

Investors in the unhedged version, the VanEck Morningstar Wide Moat ETF (ASX: MOAT), will receive the second-highest distribution of $7.56 per unit.

The VanEck Wide Moat ETFs are a bit different to the norm. They do not seek to track the performance of a major index, like most ETFs.

Instead, the ETFs hold a portfolio of about 50 US shares that have significant competitive advantages, or in other words, a wide moat.

Here is a condensed list of VanEck ETFs and how much each ETF will pay in dividends to their investors later this month.

Payday for VanEck ASX ETF investors

VanEck Global Clean Energy ETF (ASX: CLNE) will pay 7 cents per unit.

VanEck FTSE China A50 ETF (ASX: CETF) will pay $1.27 per unit.

VanEck Global Defence ETF (ASX: DFND) will pay 3 cents per unit. Learn more about this ETF here.

VanEck Morningstar Australian Moat Income ETF (ASX: DVDY) will pay 20 cents per unit.

VanEck MSCI International Sustainable Equity ETF (ASX: ESGI) will pay $2.34 per unit.

VanEck Video Gaming and Esports ETF (ASX: ESPO) will pay $1.04 per unit.

VanEck Gold Miners ETF (ASX: GDX) will pay 63 cents per unit.

VanEck Morningstar International Wide Moat ETF (ASX: GOAT) will pay $1.66 per unit.

VanEck MSCI Australian Sustainable Equity ETF (ASX: GRNV) will pay 57 cents per unit.

VanEck 5-10 Year Australian Government Bond ETF (ASX: 5GOV) will pay 11.5 cents per unit.

VanEck Global Healthcare Leaders ETF (ASX: HLTH) will pay 2 cents per unit.

Show us the money! Here are some more…

VanEck Australian Property ETF (ASX: MVA) will pay 42 cents per unit.

VanEck Australian Banks ETF (ASX: MVB) will pay 40 cents per unit.

VanEck Australian Resources ETF (ASX: MVR) will pay 51 cents per unit.

VanEck Small Companies Masters ETF (ASX: MVS) will pay 32 cents per unit.

VanEck MSCI International Small Companies Quality ETF (ASX: QSML) will pay 9 cents per unit.

VanEck MSCI International Quality ETF (ASX: QUAL) will pay $1.23 per unit.

VanEck MSCI International Value ETF (ASX: VLUE) will pay $1.02 per unit.

The post VanEck ASX ETF dividends: How much you'll get and when appeared first on The Motley Fool Australia.

Which exchange-traded funds (ETFs) are they? And what might the next 5 years look like? 

Let's see.

VanEck Australian Banks ETF (ASX: MVB)

At the time of writing, the VanEck Australian Banks ETF is up 100.53% over the past five years. For an annual management fee of 0.28%, the MVB ETF comprises seven Australian banks, including the big four banks. Each of the big four banks represents approximately 20% of the fund, while Macquarie Group Ltd (ASX: MQG) has a 17% allocation.

The ASX banking sector has performed incredibly well over the past few years. In particular, Commonwealth Bank of Australia (ASX: CBA) has defied analyst expectations and risen 172% in five years. Today, it reached another new all-time high of $192.

However, analysts and fund managers continue to warn that the ASX banking sector is overvalued. Macquarie currently has 2 neutral ratings and 2 underperform ratings on the big four banks. This suggests that the next five years are unlikely to match the past five years.

BetaShares Australian Financials Sector ETF (ASX: QFN)

The BetaShares Australian Financials Sector ETF is up 108.05% over the past 5 years, at the time of writing. For an annual management fee of 0.34%, the QFN ETF tracks the largest ASX financials stocks (including the big four banks), as well as insurance companies. 

With 28 holdings, it is more diversified than the MVB ETF. However, with 70% of the ETF invested in the big four banks, its forward returns are likely to be correlated with those of the MVB ETF.

Betashares Global Banks Currency Hedged ETF (ASX: BNKS)

The Betashares Global Banks Currency Hedged ETF is up 103.36% over 5 years. For an annual management expense of 0.47%, investors gain exposure to the world's largest banks outside of Australia in a single trade. 

This ETF is very well diversified, with 60 holdings. As of 30 May, its largest holdings were JP Morgan & Chase (7.6%), Bank of America (7.3%), and Wells Fargo (6.1%). 

Yesterday, I discussed JP Morgan relative to CBA shares. As explained, JP Morgan is arguably a much higher-quality bank and is trading on a price-to-earnings (P/E) multiple that is less than half of CBA (14 vs 33). By preferencing Australian banks (and Australian bank ETFs) in spite of high valuations, ASX investors are demonstrating a high level of home bias. In the case of ASX bank stocks, this could dramatically impact forward returns.

Based on valuation, the BNKS ETF is likely to outperform the MVB ETF and the QFN ETF over the next 5 years. 

One disadvantage of investing in foreign stocks is currency risk. However, the BNKS ETF is hedged to Australian dollars, reducing this risk. 

Investors looking for banking exposure or ASX financials ETFs over the next 5 years might like to consider the BNKS ETF.

The post 3 ASX financials ETFs that have doubled in 5 years appeared first on The Motley Fool Australia.

As we approach the midpoint of the year, here are two thematic exchange-traded funds that have brought strong returns compared to the ASX 200. 

Thematic investing involves targeting a specific sector or market. It can be ideal if there is a specific industry, technology, or emerging market that you want exposure to.

Betashares Capital Ltd – Asia Technology Tigers Etf (ASX: ASIA)

This ETF aims to track the performance of the 50 largest technology and online retail stocks in Asia (ex-Japan). 

The fund includes technology giants such as Alibaba, Tencent, and Baidu. It has a large exposure to the Asian semiconductor, hardware and storage sectors.

Chinese, Taiwanese and South Korean based companies make up approximately 86% of the fund. 

It has had a strong year, rising 16.17%. 

It seems investors have jumped on the opportunity to gain exposure to Asian tech after years of underperformance. 

This rise has been influenced by robust policy tailwinds in Asian tech, and semiconductors which are seeing surging global demand due to AI and computing needs. 

VanEck Vectors Australian Banks ETF (ASX: MVB)

This thematic ETF is a simple fund made up of seven Australian banks, including the big four. 

Australian banks make up a significant part of the Australian economy. The big four all sit inside the top 10 largest companies in the country by market capitalisation. 

The VanEck Vectors Australian Banks ETF is ideal for investors wanting exposure to these vital companies, without having to choose just one.

Each of the big four represent approximately 20% of the fund. Macquarie Group Ltd (ASX: MQG) follows with a 16.8% allocation.

The fund has proven a market beating fund in recent years. 

So far in 2025, the fund has risen 8.70%. 

The success of the fund has been mainly driven by the 22% share price rise this year of Commonwealth Bank of Australia (ASX: CBA). 

The post Two thematic ETFs beating the ASX 200 this year appeared first on The Motley Fool Australia.

Up until recently, US focused ASX exchange traded funds (ETFs) were among the most popular and successful investments. 

For example, over the past 5 years, Betashares Nasdaq 100 ETF (ASX: NDQ) has returned an impressive 19.6% per annum. This has mostly been driven by the success of the Magnificent Seven companies, including Nvidia Corp (NASDAQ: NDVIA), which is up more than 1,500% over the past 5 years. 

However, more recently, investors have begun to move away from the US, prompted by the US trade war. 

As a result, some investors have been searching for alternative investment options. For ETF investors, there are several ASX ETFs outside the US that also have enviable track records. 

Let's explore two options.

VanEck Australian Banks ETF (ASX: MVB)

VanEck Australian Banks ETF has climbed 118% over the past 5 years. For a management expense of 0.28%, investors gain exposure to seven Australian banks and financial institutions. 

That includes the big 4 banks, as well as Macquarie Group Ltd (ASX: MQG), Bendigo & Adelaide Bank Ltd (ASX: BEN) and Bank of Queensland Ltd (ASX: BOQ). It offers a dividend yield of 4.4%.

While exposure is diversified within the banking sector, these stocks are highly correlated. Therefore, this ETF is most suitable when combined with other ASX ETFs to improve diversification and reduce risk.

SPDR S&P/ASX 200 Financials EX A-REIT ETF (ASX: OZF)

Another option to consider is SPDR S&P/ASX 200 Financials EX A-REIT ETF, up 111% over the past 5 years. The ETF aims to track the S&P/ASX 200 Financials Ex A-REIT Index to effectively represent the financial sector within the S&P/ASX 200 Index. For a management expense of 0.34%, investors gain exposure to 30 companies within the financial sector. This includes banks, REITS and insurance companies. OZF ETF offers a dividend yield of 3.8%.

Although it contains a higher number of holdings relative to the MVB ETF, the correlation between these companies is likely to still be reasonably high. Therefore, it should also be combined with other ASX ETFs to increase diversification. Many experts suggest owning between 25 and 30 stocks for optimal diversification. However, the correlation between those stocks is just as important as the number of stocks held.

Foolish Takeaway

With the 'sell America' trade gaining traction, US focused ETF investors might find themselves looking for alternative options. Those looking for ASX ETFs with impressive 5 year track records are in luck. Both the MVB ETF and OZF ETF have easily cleared this benchmark, driven by the success of Australia's financial sector.

The post 2 under the radar ASX ETFs that are up more than 100% over 5 years appeared first on The Motley Fool Australia.

They dominate the lending market, generate billions in profits, and reward shareholders with fully franked dividends.

But when it comes to picking just one to invest in, things get tricky.

Right now, all four banks have seen share price pullbacks, making them potentially attractive buys for investors wanting exposure to this side of the market.

However, choosing which one to back isn't easy. CBA is the most dominant but also the most expensive. ANZ and NAB offer strong business banking exposure and Westpac is a consumer banking leader.

Instead of trying to pick a winner, there's a simpler solution with exchange traded funds (ETFs).

VanEck Australian Banks ETF (ASX: MVB)

The VanEck Australian Banks ETF gives investors exposure to a portfolio of Australian banks. Instead of betting on just one, you can own all the major players in a single trade.

The fund is heavily weighted towards the big four, with more than 80% of its assets currently spread across ANZ, CBA, NAB, and Westpac.

However, it also includes exposure to Macquarie Group Ltd (ASX: MQG), Bendigo and Adelaide Bank Ltd (ASX: BEN), and Bank of Queensland Ltd (ASX: BOQ).

For investors looking for dividends, the VanEck Australian Banks ETF could be an attractive choice. Australian banks have historically delivered strong dividend yields, and the fund currently boasts a 12-month income yield of 5.9% and a franking level of 91%.

Why consider this ASX ETF?

The fund manager, VanEck, highlights that investors can use the fund to gain diversified exposure to the banks. Rather than trying to pick which big four bank will outperform, you get exposure to them all. If one struggles, the others may pick up the slack.

Another positive is that the fund passes on all dividend income, providing a steady stream of cash flow.

A third positive is that this ASX ETF is a cost-effective way to invest in the sector. Buying individual bank shares means paying brokerage fees on each one. Whereas the VanEck Australian Banks ETF offers a way to own them all with just one transaction.

Foolish takeaway

If you're bullish on the banks but don't want to take on the risk of picking a single stock, this ASX ETF could be a smart option. With exposure to the biggest names in the sector, strong dividend potential, and built-in diversification, it offers a simple and effective way to invest in the financial backbone of Australia.

The post Can't decide which big four bank? You don't have to with this ASX ETF appeared first on The Motley Fool Australia.