The VanEck MSCI International Small Cos Quality ETF (ASX: QSML) is one investment that I think could deliver strong returns over the long-term.

I'm bullish about the ASX ETF for a number of reasons. Let's get into what makes it an effective investment today.

Better valuation

When it comes to investing in growing businesses, I think it's a great time to invest when there's a dip (or worse) in share prices.

As legendary investor Warren Buffett once said:

Be fearful when others are greedy and greedy when others are fearful.

In other words, it's great to load up on shares when prices are lower and the market has lost confidence (temporarily).

High-quality holdings

This ASX ETF invests in a portfolio of 150 international developed-market small-cap quality growth shares.

The idea is that the portfolio contains some of the world's highest-quality companies which are based on three key fundamentals.

The first fundamental is they must have a high return on equity (ROE). That means the business makes a high level of profit for how much shareholder money is retained in the business. It also suggests that future retained earnings could earn a high level of return, which is a good tailwind for future share price growth.

Second, the businesses must have a high level of earnings stability. In my view, if profit isn't going backwards then it means it's rising. That's another tailwind for share price growth, as well as potentially being a relatively safe harbour during volatile times.

Third, the businesses should have lower financial leverage. This means they have very healthy balance sheets.  

Great long-term returns

When you add all of those elements together, it's no wonder that the QSML ETF has performed strongly over time.

Past performance is not a guarantee of future performance of course, but I think the businesses inside this portfolio are some of the most compelling businesses that investors could want to own in the global share market.

Over the past 10 years, the index that this ASX ETF follows has returned an average per year of 14%, outperforming the overall small-cap global share market by an average of around 2.7% per year.

I think if any ASX ETF can return by more than 10% per year over the long-term, that means it's a great long-term investment.

Good diversification

It's important to note that the returns this ASX ETF generates is from more than just a few large US-based technology businesses.

Aside from the US, there are numerous countries that have a weighting of at least 0.5%: the UK, Japan, Canada, Switzerland, Sweden, Thailand, Israel, Denmark, France, Mexico, Finland and Austria.

On the sector side of things, there are five sectors that have a weighting of at least 7.5%: industrials (41.5%), financials (17%), IT (11.8%), consumer discretionary (8.6%) and healthcare (7.6%).

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Wickenden points out that 2025 was the first year since 2020 that ASX small-cap shares outperformed the rest of the market.

The S&P/ASX Small Ords Index (ASX: XSO), which tracks companies ranked 101 to 300 by market cap, delivered a total return (capital growth plus dividends) of 24.96% last year.

By comparison, the S&P/ASX All Ords Index (ASX: XAO) delivered total returns of 10.56%.

Small-cap shares typically have market caps between a few hundred million dollars and $2 billion.

Wickenden said:

Following years of large cap earnings stability and pricing power during the higher-than-normal interest rate environment, 2025 gave way to a rate cutting cycle supporting mid and small caps. 

Lower interest rates reduce smaller companies' debt servicing costs and boost their earnings potential.

Wickenden said:

Mid and small caps in Australia also reported much stronger earnings growth throughout 2025, further driving the performance turnaround. 

Lower funding costs and easing input pressures helped to lift margins and free cash flow across these segments. 

Wickenden points to the Betashares Australian Small Companies Select ETF (ASX: SMLL) as an example of the trend.

SMLL ETF delivered a total return of 36.39% last year. It was the second-best-performing ASX ETF holding Aussie shares in 2025.

Here are three ASX exchange-traded funds (ETFs) that provide exposure to small-cap shares both on the ASX and overseas exchanges.

Betashares Australian Small Companies Select ETF (ASX: SMLL)

This ASX-focused ETF seeks to track the returns of the Nasdaq Australia Small Cap Select Index before costs.

Betashares explains the ETF's strategy:

SMLL invests in a portfolio of ASX-listed companies that are generally within the 91-350 largest by free float market capitalisation. The portfolio will typically consist of 50-100 securities.

SMLL's index uses screens that aim to identify companies with positive earnings and a strong ability to service debt.

Relative valuation metrics, price momentum and liquidity are also evaluated as part of the selection process.

ASX gold stocks dominate the ETF's list of top holdings.

There's Perseus Mining Ltd (ASX: PRU) shares at 6.1%, Westgold Resources Ltd (ASX: WGX) 4.8%, Genesis Minerals Ltd (ASX: GMD) 4.6%, Vault Minerals Ltd (ASX: VAU) 4.4%, Capricorn Metals Ltd (ASX: CMM) 4%, and Ramelius Resources Ltd (ASX: RMS) 3.9%.

Over the past five years, SMLL ETF has delivered an average annual total return of 9.73% after fees.

Vanguard MSCI International Small Companies Index ETF (ASX: VISM)

VISM ETF seeks to track the MSCI World ex-Australia Small Cap Index (with net dividends reinvested) in Australian dollars before fees.

This ASX ETF gives investors access to more than 4,000 smaller companies operating in more than 20 developed countries.

The top holdings are flash memory designer and manufacturer Sandisk Corp (NASDAQ: SNDK) 0.82%, US laser and photonics technologies developer, Coherent Corp (NYSE: COHR) 0.39%, and aircraft engine leasing operator, FTAI Aviation Ltd (NASDAQ: FTAI) 0.29%.

VISM ETF has delivered an average annual total return of 9.9% after fees over the past five years.

VanEck MSCI International Small Companies Quality ETF (ASX: QSML)

QSML ETF seeks to mirror the performance of the MSCI World ex Australia Small Cap Quality 150 Index before costs.

This provides exposure to a diversified portfolio of 150 high-quality, small-cap companies in developed countries outside Australia.

Stocks are selected on three key fundamentals: return on equity (ROE); earnings stability; and low financial leverage.

The top holdings are US aerospace industrial company, Curtiss-Wright Corp (NYSE: CW) 1.9%, precious metals royalties company, Royal Gold Inc (NASDAQ: RGLD) 1.8%, and US convenience store operator, Casey's General Stores Inc (NASDAQ: CASY) 1.65%.

QSML ETF began trading in March 2021.

Over the past three years, the ASX ETF has produced an average annual total return of 14.87% after fees.

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A business growing from $2 billion to $3 billion is an increase of 50%. A business growing from $500 million to $2 billion is a quadrupling in size. The earlier we invest in a business, the more of its growth journey we can ride along for.

I'm going to talk about two investments that I think could deliver significant returns over the next five years.

Siteminder Ltd (ASX: SDR)

Siteminder provides software to hotel operators around the world, to help their operations and bookings. It generates A$85 billion in hotel revenue across 150 countries, with 130 million transactions for more than 50,000 hotel customers globally.

It is able to give its hotel subscribers an extensive view of data and trends, with some modules giving clients the ability for Siteminder to automatically change hotel room prices to maximise revenue and occupancy throughout the year.

The Siteminder share price has dropped around 50% since October 2025, so it's significantly cheaper – I think it's a great time to invest. The fall has happened despite the company generating more annualised recurring revenue (ARR) than ever – it's targeting 30% organic annual revenue growth in the medium-term, which would be an excellent expansion rate.

The ASX small-cap share has recently reached positive profitability and cash flow, so additional revenue growth from here should be very helpful because of the operating leverage of a software business.

Broker UBS forecasts Siteminder's revenue could grow from $284 million in FY26 and reach $589 million by FY30 – that'd be an increase of more than 100%.

VanEck MSCI International Small Cos Quality ETF (ASX: QSML)

This exchange-traded fund (ETF) is a leading option to invest in global small-cap shares. These are typically bigger businesses than ASX small-cap shares, but they have just as much potential.

I also like this option because of the diversification that comes with owning a portfolio of shares, not just a singular name.

It aims to invest in a portfolio of 150 names that come from a variety of countries. Markets with an allocation of at least 0.6% include the US, the UK, Japan, Switzerland, Sweden, Canada, Thailand, Israel, Denmark, France, Mexico and Finland.

This isn't a tech fund though – tech is not even one of the two largest sectors! Industrials has a 40% weighting in the fund and financials is the next biggest at 18.3%. The IT sector is the third and last industry with a double-digit weighting, at 12.1%.

There are three factors that a business must have – a high return on equity (ROE), earnings stability and low financial leverage. Each of those elements are appealing on their own, but together they are a powerful combination when found in the same business.

The fund has delivered an average return of 14.9% per year over the last three years, showing its potential to perform over time, though the next three years may not be as strong.

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Smaller businesses normally have much better growth potential than larger ones because they are earlier in their growth journey.

It's much easier for a business to grow from $1 billion to $2 billion, than it is to go from $10 billion to $20 billion.

The two investments below are ones I think can scale significantly from where they are today, and I'd happily put $2,000 into them.

Siteminder Ltd (ASX: SDR)

Siteminder is a leading ASX technology share that provides software to hotels for their operations and maximising revenue through hotel bookings.

The business has won subscribers from across the world, with a recent focus on larger hotels.

Impressively, the company has a goal of organic annual revenue growth of 30% in the medium-term. It's winning new subscribers and offering a number of modules that can help give hotels data to decide on room prices, or automate it for them.

Maximising revenue and room occupancy is a key factor for the success of a hotel, so Siteminder's service can be integral for the long-term.

As a software business, I'm expecting the company to deliver rising profit margins thanks to operating leverage and how costs may only grow at a relatively slow pace, enabling operating profit (EBITDA) and cash flow to soar in the coming years.

I think it's one of the most promising ASX share investments around.

VanEck MSCI International Small Cos Quality ETF (ASX: QSML)

This is an exchange-traded fund (ETF) that gives investors exposure to a global portfolio of some of the most promising small-cap shares.

It aims to own 150 of the world's highest-quality small companies, based on three key fundamentals.

First, a high return on equity (ROE). Second, earnings stability. Third, low financial leverage. Businesses that make high levels of profit, with earnings don't go backwards and that have low levels of debt are appealing investments.

Noting the great investment performance of small caps, VanEck, the provider of the ETF, says:

Investments focusing on quality small companies have delivered outperformance over the long term relative to other global small companies benchmarks and also relative to large- and mid-cap benchmarks.

Some of the businesses in this portfolio could become tomorrow's blue-chips as they grow and reach their potential.

Pleasingly, the QSML ETF has solid diversification across both sectors and countries, so it has lower risks than if its portfolio was focused on one industry.

Past performance is not a guarantee of future returns, but the fund has delivered an average return per year of 17.1% over the prior three years. I think this fund can continue to deliver impressive double-digit returns over the long-term thanks to its quality-focused construction strategy.

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These three VanEck ETFs stand out to me because they do exactly that, but in slightly different ways. Together, they offer exposure to wide-moat businesses, global quality leaders, and smaller companies with strong fundamentals.

VanEck Morningstar Wide Moat AUD ETF (ASX: MOAT)

This is one of the more interesting ETFs on the ASX, in my view. The VanEck Morningstar Wide Moat AUD ETF focuses on US companies that have sustainable competitive advantages, or wide economic moats. These are businesses that are difficult to disrupt because of things like scale, brand strength, switching costs, or intellectual property.

What I really like is that this fund does not just chase quality at any price. It also targets companies trading at attractive prices relative to the estimate of fair value. That valuation discipline is important, especially after a strong run in US equities.

When I look through the holdings, I see a mix of industrial leaders, healthcare giants, and global consumer brands. It feels like a high-conviction portfolio rather than a broad market clone, which is exactly what I want from something like this.

VanEck MSCI International Quality ETF (ASX: QUAL)

If I were building a core international ETF holding, this would be right near the top of my list. The VanEck MSCI International Quality ETF screens for companies with high return on equity, stable earnings, and low financial leverage across developed markets outside Australia.

In plain English, this fund owns some of the strongest businesses in the world. Names like Microsoft, Apple, Nvidia, and Eli Lilly are all there, but they are included because they meet strict quality criteria, not just because they are big.

I agree with the idea behind this strategy. Over long periods, companies that generate strong returns, carry sensible balance sheets, and deliver consistent earnings tend to outperform. The QUAL ETF gives me exposure to that factor without having to pick individual global stocks myself.

VanEck MSCI International Small Companies Quality ETF (ASX: QSML)

This is the higher-risk, higher-reward option of the three. The VanEck MSCI International Small Companies Quality ETF focuses on small-cap companies in developed markets that still meet the same quality screens of high returns, earnings stability, and low leverage.

Small caps are often under-represented in Australian portfolios, but they can be powerful growth engines over time. By layering a quality filter on top, the QSML ETF avoids the weakest parts of the small-cap universe and instead focuses on businesses with proven fundamentals.

When I look at the holdings, I see a diverse mix across industries and geographies, from industrials and healthcare to specialised manufacturers. It feels like a sensible way to access global small-cap growth without going fully speculative.

Why these three work well together

What I like most is how these VanEck ETFs complement each other. The MOAT ETF provides exposure to attractively priced US companies with durable advantages. The QUAL ETF anchors the portfolio with global large-cap quality leaders. The QSML ETF adds a growth tilt through high-quality international small caps.

If I were building an ETF portfolio today, this combination would give me confidence that I'm not just chasing the latest themes, but backing strong businesses with solid fundamentals across different parts of the market.

The post 3 VanEck ETFs on the ASX I rate as buys appeared first on The Motley Fool Australia.

Bronwyn Allen covered earlier this month that ASX small-cap shares outperformed the larger players by almost 2.5 times in 2025. 

S&P/ASX All Ords Index (ASX: XAO) shares delivered total returns (capital growth plus dividends) of 10.56% last year.

Meanwhile, the S&P/ASX Small Ords Index (ASX: XSO) – tracks companies ranked 101 to 300 by market cap – delivered a total return of 24.96%.

Late last year, another report showed that investors were increasingly looking to capture opportunities across the full spectrum of the Australian equity market rather than concentrating exclusively on the blue-chip heavyweights.

A new report from VanEck Australia indicates that economic tailwinds could be coming for global small-cap companies. 

The case for global small caps 

According to VanEck Australia, we could be about to see a strong surge in global small caps. 

The report said that with markets forecasting two rate cuts in 2026 to stimulate demand, quality small companies could benefit should faster economic growth eventuate. 

These kinds of assets have historically outperformed during expansionary environments.

Additionally, global small companies are trading at historically low levels. 

The speculative 2024/25 rally led by mega-caps, notably the "Magnificent Seven" resulted in the relative underperformance of global small-caps, compared to the broader small-cap market as measured by the Russell 2000 over the past two years.

The report said the speculative rally has led to strong outperformance of low-quality small companies. This has come as investors sought those companies that may have been positioned to benefit from the rise of AI, with less consideration of profitability. 

However, with political uncertainty, geopolitical risks, and inflation concerns flaring up again, speculative assets have started to come under pressure during the last quarter of 2025. 

If these market conditions persist, we could experience an uptick in market volatility in 2026 despite overall economic growth remaining strong. Taking history as a guide, this backdrop bodes well for a quality rotation within the global small companies complex.

According to VanEck, valuations for global small caps are reasonable/attractive relative to global large caps (MSCI World Index), with valuations at 25-year lows.

How to gain exposure to global small-cap companies?

Based on the report from VanEck, a continued easing of tariff policy could support a shift toward a manufacturing-led expansion in the US economy. This is an environment in which high-quality small-cap stocks have historically outperformed the broader market.

Further, markets are forecasting two more rate cuts in 2026. This is typically positive for small-caps, as cheaper access to credit enables them to grow their businesses.

We think the small size of these companies means that double digit growth is potentially more achievable as they are coming off a lower base than large caps.

Global quality small-caps could shine in 2026.

For investors looking to capture exposure to small-cap companies based outside of Australia, there are a few ASX ETFs to consider:

• VanEck MSCI International Small Companies Quality ETF (ASX: QSML) – 150 international developed market small cap quality growth securities. 
• Vanguard MSCI International Small Index ETF (ASX: VISM) – provides exposure to more than 3000 small companies listed in major developed countries. 
• Global X Russell 2000 ETF (ASX: RSSL) – Tracks approximately 2,000 companies that represent the smallest constituents of the Russell 3000 Index. 

The post Why the small-cap renaissance is only just beginning: Expert appeared first on The Motley Fool Australia.

A number of the ASX's leading technology companies are trading at a much cheaper price, including Xero Ltd (ASX: XRO), TechnologyOne Ltd (ASX: TNE), REA Group Ltd (ASX: REA) and Siteminder Ltd (ASX: SDR). I've covered those names in other recent articles.

I'm going to highlight a couple of other names that could deliver significant underlying growth in the coming years.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is one of Australia's leading retailers, in my opinion. It sells furniture, homewares and home improvement products online. The company has an enormous range of items, which are largely shipped directly by suppliers to customers.

This business strategy allows Temple & Webster to have a capital-light model, generate pleasing cash flow and provide the most choice for customers.

It's benefiting from the ongoing adoption of online shopping by consumers, which is helping grow its potential customer base. This is a long-term tailwind – online penetration of the Australian furniture and homewares market has reached 20%, which compares to 29% for the UK and 35% for the US, suggesting Australia could climb towards those figures over time.

The ASX share delivered $601 million revenue in FY25 and aims to hit $1 billion of annual sales in the next few years. It continues to grow at a fast pace – in FY26 to 20 November 2025, its revenue was up another 18% year-over-year, suggesting significant market share gains. It has also started shipping to New Zealand.

I'm optimistic about what the company could achieve in the home improvement segment. The total addressable market ($19 billion) of that sector is similar to furniture and homewares ($18 billion), but the online penetration is only between 5% to 10% for the home improvement sector. Excitingly, in FY26 to 20 November 2025, home improvement revenue was up 40% year-over-year.

The company has a $150 million cash position, which the company is utilising for its ongoing share buyback. I think the ASX share's operating profit can rise significantly in the coming years, particularly as its growing operating leverage plays out.

VanEck MSCI International Small Cos Quality ETF (ASX: QSML)

This is an exchange-traded fund (ETF) that I believe could deliver compelling returns over the next five years.

Every excellent major business today was a small company at some point. This fund gives investors the ability to gain exposure to some wonderful businesses.

The QSML ETF is invested in 150 of the world's highest quality 'small' (by global standards) companies.

To be chosen for the portfolio, it must rank well on three key fundamentals – a high return on equity (ROE), earnings stability and low financial leverage.

In other words, these companies make a high level of profit for how much shareholder money is retained, earnings don't usually go backwards (so therefore profits are rising) and they have very healthy balance sheets (the growth and high ROE are not being funded by debt).

By the way, I'm calling this an ASX share because we can buy it on the ASX and it's about shares.

Impressively, the fund has delivered an average return per year of 17% over the last three years, though I'm not expecting the next three to be as strong as that. However, I do think it can outperform the S&P/ASX 200 Index (ASX: XJO) over the next few years thanks to its quality focus.

These aren't the only two ASX shares I'd buy with $1,000 though, there are plenty of other exciting ideas.

The post This is a great place to invest $1,000 into ASX shares right now appeared first on The Motley Fool Australia.

These centred around sectors like financials and real estate that had a slow second half of the calendar year. 

As the year comes to a close, I am continuing my search for funds that underperformed this year. 

While past performance isn't a guarantee of future performance, these funds had a strong track record of bringing investors strong returns. 

With that sentiment in mind, here are two more ASX ETFs that have fallen below historical performance in 2025. 

VanEck Msci International Small Companies Quality ETF (ASX: QSML)

This fund gives investors a diversified portfolio of 150 international developed market small-cap quality growth securities.

The success of small-cap companies has been an emerging story in 2025. 

Data shows attention is increasingly shifting to smaller and mid-sized companies.

These can offer potential for outsized growth and portfolio broadening. 

This fund may be set to catch these tailwinds in the next 12 months. 

According to VanEck, this fund focuses on quality small companies that have delivered outperformance over the long term relative to other global small companies benchmarks and also relative to large- and mid-cap benchmarks.

In 2025, the fund has risen a modest 4.9%. 

However historically, it has brought returns of more than 11% per annum including dividends. 

The fund was first listed in early 2021. 

The fund is largely weighted towards US securities, with almost 80% of the underlying holdings being US companies. 

By sector, its largest exposure is to: 

• Industrials (38.2%)
• Financials (18.9%)
• Information Technology (12.1%)

Global X Morningstar Global Technology ETF (ASX: TECH)

According to Global X, this ETF seeks to invest in companies positioned to benefit from the increased adoption of technology. 

This includes companies whose principal business is in offering computing Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS), and/or cloud and edge computing infrastructure and hardware.

At the time of writing, it is made up of 39 underlying holdings. 

Its largest exposure is to companies focussed on: 

• Software (34.4%)
• Semiconductors and semiconductor equipment (21.1%)
• Financial services (12.4%)

It is heavily weighted towards US companies, with more than half its portfolio being US based holdings. 

So far in 2025, it has fallen more than 8%. 

However in the last 5 years, it has a p.a. return of 8.45%. 

With global investment in these booming sectors continuing, there's good reason to believe in a bounce back for this fund in 2026. 

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Over the long-term, I'd expect a high-quality business to deliver more profit growth and share price growth compared to a mediocre company.

Of all of the options that Australians could choose for their portfolios, there are few options as high-quality as the ones below.

Pro Medicus Ltd (ASX: PME)

I believe Pro Medicus is one of, if not the, highest quality ASX shares. It describes itself as a leading healthcare informatics company. The company provides a full range of medical imaging software and services to hospitals, imaging centres and healthcare groups worldwide

Pro Medicus has incredibly high profit margins. In FY25, the company generated revenue of $213 million and it produced net profit after tax (NPAT) of $115.2 million with $157.7 million of underlying operating profit (EBIT). Its underlying EBIT margin of 74% is incredible.

A very large amount of new revenue is turned into profit. FY25 saw 31.9% revenue growth and 39.2% net profit after tax (NPAT) growth, which has helped propel Pro Medicus' share price higher. It continues winning new multi-year contracts, which will translate into significantly larger revenue in the coming years.

It is also successful at renewing contracts at a higher fee rate, as well as selling additional modules to existing customers.

It may still trade on a high price/earnings (P/E) ratio, but it's lower now after falling by more than 20% since mid-July 2025.

According to the forecasts on CMC Markets, the ASX share is trading at 124x FY27's estimated earnings.

VanEck MSCI International Small Cos Quality ETF (ASX: QSML)

I think small companies have tremendous growth potential because they are usually much earlier on with their growth journeys – they can still significantly scale from where they are today.

But, investing in small businesses can come with risk, so I'd want to only own good ones. How do you pick out the best ones to own? The QSML ETF could be an excellent option for a few reasons.

The exchange-traded fund (ETF) implements a few quality screening tests to ensure it just invests in the best of the best.

The QSML ETF only invests in businesses with a high return on equity (ROE), good earnings stability and low financial leverage. In other words, these businesses make high levels of profit on retained shareholder money, profit is usually growing and debt levels are low.

It invests in 150 of these high-quality small companies from across the world, with different sectors represented in the portfolio, so it's a diversified investment. Pleasingly, over the last three years, it has returned an average of 16% per year. I think this could still be a great time to invest in these small global companies for the long-term.

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I like investments that don't get as much investor attention because it means they're less likely to be overvalued.

I'm optimistic that the two ideas below could outperform the S&P/ASX 200 Index (ASX: XJO) in the next three years and deliver pleasing capital growth.

L1 Group Ltd (ASX: L1G)

L1 Group recently listed on the ASX after a merger with Platinum, and I'd say its growth outlook is very compelling. For starters, the company is targeting at least $30 million of cost synergies within 18 months.

Its investment funds have delivered impressive investment returns and this alone is a strong tailwind for funds under management (FUM) growth. But, it's also carrying out a capital raising of up to $330 million, which could do multiple things for the company.

It will fund a co-investment in L1 Capital's new global long short strategy, provide co-investment support for another strategy due to be launched in the near term, fund expansion in new investment strategies, including in affiliates and joint venture partners, and support potential acquisitions.

I expect the ASX share's FUM can rise significantly in the coming few years, making this an opportune time to consider a long-term investment in the ASX share.

VanEck MSCI International Small Cos Quality ETF (ASX: QSML)

This is an exchange-traded fund (ETF) focused on compelling, high-quality, smaller global companies.

There are exciting businesses beyond the ASX which aren't the biggest tech companies. Every large business was once a smaller one. The way this fund is set up means investors can gain exposure to some of the most exciting up-and-coming businesses from around the world.

ASX shares only account for around 2% of the global share market, so it's a good idea to look at other areas of the world.

The QSML ETF invests in 150 international developed market small-cap companies that rank well on three key characteristics. They should have a high return on equity (ROE), earnings stability, and low financial leverage.

When you put those three elements together, it means the companies are already very profitable for shareholders, the profit is usually growing, and they're achieving this with relatively little (or no) debt on the balance sheet.

Pleasingly, it also comes with significant diversification across countries and sectors. It has a portfolio weighting of at least 0.5% in the US, the UK, Japan, Sweden, Singapore, Switzerland, Thailand, France, Mexico, Bermuda, the Netherlands, Finland, and Denmark.

I believe smaller companies can outperform larger ones – we've seen strong performance by the QSML ETF in the last few years. In the three years to 30 September 2025, the ASX ETF delivered an average return per year of around 20%. That's an extremely pleasing level of wealth compounding, in my view.

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The ASX 200 is up around 9.7% over the past 12 months. That's almost perfectly in line with the long-term average annual return of roughly 9.3%.

Of course, markets never move in straight lines. Some years surge ahead, others pull back, and over time, it all averages out. So rather than trying to predict where the ASX 200 will end up next year, I prefer to look for areas of the market where powerful tailwinds could create a little extra lift.

Two sectors currently stand out: defence and small caps.

The global re-arming cycle

Defence spending is rising across the world, and not just because of ongoing conflicts or geopolitical tensions. Nations are also modernising their military technology, replacing ageing fleets of aircraft, vehicles, and equipment in what is effectively a decades-long upgrade cycle. 

NATO members recently agreed to increase collective defence spending to 5% of GDP by 2035, a significant step up from the long-standing 2% benchmark set in 2014.

Closer to home, Australia unveiled an additional $50.3 billion investment in the Australian Defence Force earlier this year as part of its new long-term strategy.

And in Asia, Japan's incoming Prime Minister Sanae Takaichi has fast-tracked the nation's goal of reaching 2% of GDP in defence spending, bringing the target forward by two years to 2026.

This means trillions of dollars will continue flowing to companies that design and supply advanced defence systems — from drones and radar to AI-enhanced surveillance and electronic countermeasures — over the coming decade.

On the ASX, DroneShield Ltd (ASX: DRO) and Electro Optic Systems Holdings Ltd (ASX: EOS) have already demonstrated the sector's potential. Their share prices have jumped as swelling global defence budgets translate directly into rising orders, stronger revenues, and renewed investor confidence.

However, defence is not just a local story. Investors seeking diversified exposure might consider ETFs such as the VanEck Global Defence ETF (ASX: DFND) or the Betashares Global Defence ETF (ASX: ARMR). These provide access to global giants like Lockheed Martin, BAE Systems, and RTX Corp — companies building the next generation of defence hardware and software.

The long-term trend looks powerful. Even so, valuation risks are worth keeping in mind after such sharp rallies. A diversified approach could be a safer way to participate in the global re-arming cycle.

Growth and recovery potential

At the opposite end of the market, smaller companies could also shine in 2026.

The S&P/ASX Small Ordinaries Index (ASX: XSO) has surged nearly 22% this year, outpacing the ASX 200's 9.7% gain. That's a sharp turnaround after years of underperformance.

Why the rebound?

Smaller businesses tend to respond faster to improving conditions, and with the Reserve Bank expected to ease rates in 2026, lower borrowing costs could provide a strong tailwind. Many small caps are also trading at more attractive valuations compared to large, fully-priced blue chips.

For investors who prefer a diversified approach, the VanEck MSCI International Small Companies Quality ETF (ASX: QSML) focuses on 150 of the world's highest-quality small businesses. These companies are screened for high returns on equity, stable earnings, and low financial leverage, the kind of financial discipline that has historically led to long-term positive performance.

Foolish Takeaway

There's no guaranteed way to beat the market. Even the most talented investors experience stretches where they don't outperform the ASX 200's average return.

Still, identifying structural trends — like defence modernisation or small-cap recovery — can help investors build a satellite portfolio around a diversified core.

Whether through individual shares or ETFs, these two areas offer fascinating potential for those willing to think a little beyond the benchmark. Just remember: outperformance is possible — it's just never easy.

The post 2 sectors I think could outperform the ASX 200 in 2026 appeared first on The Motley Fool Australia.

Compounding is a very powerful force that helps a business scale its profits. It's quite easy to underestimate how much progress a business can make after three or five years.

Some larger businesses are growing at a rapid pace, but they're priced accordingly. That's why I think it's better to look at smaller businesses that have significant growth potential.

Over the next five years, I believe the two investments below could be two of the stronger (non-resource) performers.

VanEck MSCI International Small Cos Quality ETF (ASX: QSML)

This exchange-traded fund (ETF) is one of the most appealing for growth because of the types of businesses it's invested in.

As the name suggests, it invests in quality, small international businesses. The reason why I'm calling this fund an ASX growth share is because we can buy it on the ASX and the businesses have attractive growth credentials.

It invests in 150 of the world's highest-quality small companies across various countries and sectors, providing diversification.

How is it determined that these businesses are high-quality? There are three factors – a high return on equity (ROE), earnings stability and low financial leverage. Combined, those elements result in the fund only investing in the very best businesses.

Of course, past performance is not a guarantee of future performance, but in the three years to 31 August 2025, the ETF delivered an average return of 18.9% per year.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is a leading online retailer of furniture and homewares. It sells hundreds of thousands of products, with a significant majority shipped straight from suppliers to customers. This gives the ASX growth share a capital-light model and also enables Temple & Webster to sell an enormous range of items.

The company is aiming for $1 billion of annual sales in the next few years and I think it's on track to reach it considering the pace it's growing at. In FY25 it achieved 20.7% revenue growth to $600.7 million, with trading in FY26 to 11 August 2025 showing 28% year-over-year revenue growth.

Temple & Webster also has a small but growing home improvement segment, which is adding to its revenue growth. The company said home improvement was "outperforming" in the first few weeks of FY26.

I believe more people will adopt online shopping in the coming years, which bodes well for the company's market share and profit margins.

Finally, with interest rates falling in Australia, I think household demand could increase for the products Temple & Webster sells.

The post I think these 2 exciting ASX growth shares are buys today appeared first on The Motley Fool Australia.

As the great scientist Albert Einstein once said:

Compound interest is the eighth wonder of the world. He who understands it, earns it, he who doesn't, pays it.

The market can underestimate how much a rapidly growing business can grow over the long term. I think the below two high-growth ASX shares are worth buying for the years ahead.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is a leading online retailer of furniture and homewares in Australia. It sells hundreds of thousands of products, with a large majority of those products shipped by suppliers. This allows the company to operate with a capital-light model and sell a much wider range of items.

After initial excitement following the company's FY25 result, the Temple & Webster share price has fallen around 20% from 14 August 2025, as the below chart shows.

The report included lots of things I wanted to see, including strong growth.

Revenue grew 20.7% to $600.7 million, earnings before interest and tax (EBIT) jumped 301.4% to $10.4 million, and operating cash flow increased 89.6% to $45.9 million. The home improvement segment saw revenue rise 42.5% to $42 million.

As an online business, it's able to take advantage of new tools. The company is utilising technology (including AI) to improve the customer experience, boost conversion, lower costs, and improve efficiencies across the business.  

In FY25, the operating profit (EBITDA) margin achieved was 3.1%. This is expected by the company to be between 3% to 5% in FY26 and reach at least 15% in the long term. This, combined with its $1 billion revenue goal in the medium term, suggests significant profit growth in the longer term for the high-growth ASX share, in my opinion.

VanEck MSCI International Small Cos Quality ETF (ASX: QSML)

This is one of the exchange-traded funds (ETFs) I'm most excited about because it's focused on faster-growing, smaller international businesses.

It has 150 high-quality small companies in the portfolio that are based on three key fundamentals – a high return on equity (ROE), earnings stability, and low financial leverage.

In other words, they earn a high level of profit on retained shareholder money, profits don't typically go down, and debt levels are low. This is a powerful combination and ensures only the best small businesses are invested in the QSML ETF.

Past performance is not a guarantee of future performance, but the QSML ETF has returned an average of almost 19% per year in the last three years. I think this fund and the underlying businesses have very compelling futures.

The post 2 high-growth ASX shares to buy today appeared first on The Motley Fool Australia.

It's much easier for a rapidly growing business to 'grow into' its valuation than a slow-moving one. Companies that are increasing their underlying value at a fast pace may also mean the share price is increasing at a pleasing speed, as long as the share price isn't too highly valued.

I don't have a crystal ball to know how the next few years will turn out, but I think the following investments can offer everything I'm looking for.

Siteminder Ltd (ASX: SDR)

This ASX growth share is the company behind the Siteminder software. The company calls itself the world's leading hotel distribution and revenue platform. It also offers Little Hotelier, an all-in-one hotel management offering.

Siteminder is very important for the global hotel industry. It generates more than 125 million reservations worth over A$80 billion in revenue for its hotel customers each year.

The company can grow its revenue in a variety of ways, such as by increasing both subscription revenue and transactional revenue. The ASX growth share is currently pursuing larger hotel properties with a higher room count and transaction value. This helped increase the net rooms added during HY25 by more than 50%.

HY25 saw the business deliver 18.4% growth of annualised recurring revenue (ARR) to $216.2 million, with 12.7% subscription ARR growth and 31.5% transaction ARR growth.

As a software business, the company is likely to see profit margins rise, thanks to operating leverage. For example, in HY25, it reported its underlying gross profit margin increased 1.18% from the second half of FY24 to 66.9%. Underlying operating profit (EBITDA) was positive $5.3 million for the half, up from a loss of $1.2 million in the prior corresponding period.

The company continues to invest in making improvements to its platform to provide the best features for subscribers, unlock revenue growth, and create stronger loyalty.

In five years, I think the ASX growth share is likely to make a much larger profit.

VanEck MSCI International Small Cos Quality ETF (ASX: QSML)

I believe that smaller businesses have more growth potential because they are earlier on in their growth journey. Going from $250 million to $1 billion in revenue means it has quadrupled, but going from $1 billion to $2 billion is only doubling the revenue.

This exchange-traded fund (ETF) is all about investing in high-quality, relatively small companies. There are 150 businesses in this portfolio, across a range of geographies, sectors, and economies. I think the fund provides adequate diversification in a variety of ways.

For a business to be considered for the portfolio, it needs to score well on three key fundamentals – a high return on equity (ROE), earnings stability, and low financial leverage.

The holdings aren't household names, but the three biggest positions are Comfort Systems USA, Flex, and Curtiss-Wright.

Impressively, this fund has delivered an average return of 17.2% per year. I'm not expecting the next three years to be as strong, but I believe this portfolio can continue to deliver for investors focused on good returns from ASX growth shares.

The post Looking for ASX growth shares? I rate these 2 as buys 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.

Businesses that can grow significantly from where they are today can really benefit shareholders.

It's particularly exciting when businesses plan to expand over the long term, which is why I'm attracted to smaller companies that are earlier on their growth journeys. With that in mind, I like the potential of the two stocks below.

VanEck MSCI International Small Cos Quality ETF (ASX: QSML)

This is an ASX-listed exchange-traded fund (ETF) that aims to provide investors with exposure to a diversified portfolio of 150 small-cap growth stocks from 'developed' markets.

This is not just a portfolio of tech companies; in fact, more than a third of the portfolio (35.7%) is invested in industrial businesses. Three other sectors have double–digit weightings: financials, IT, and consumer discretionary. I like the diversification on offer.

One of the main reasons why I like this fund so much is that it's focused on quality small-caps. I'm calling this an ASX growth share because we can buy it on the ASX.

To earn a place in the portfolio, businesses need to display three traits: a high return on equity (ROE), earnings stability, and low financial leverage. In other words, they earn strong profits for the amount of shareholder money within the business, their earnings don't usually go backwards, and they have low levels of debt for their size.

Pleasingly, over the last three years to June 2025, the QSML ETF has returned an average of 19.2%. Of course, past performance is not a guarantee of future performance when it comes to returns of that size.

Guzman Y Gomez Ltd (ASX: GYG)

In terms of how much larger an ASX growth share could become, I think GYG is one of the most exciting options to consider.

At the end of the FY25 third quarter, the Mexican food business had 211 restaurants in Australia. It aims to reach at least 1,000 Australian locations over the next two decades. That alone is exciting, but the business also has 20 locations in Singapore, four locations in Japan, and six in the US.

If the business can grow its presence in each international market to a meaningful scale, that could be a useful boost to earnings. It has also already demonstrated a willingness to expand overseas, so I expect expansion to other countries in the future (such as Canada and the UK).

But this is not just a store rollout story. Its sales at existing locations are also performing strongly. Comparable sales for Australia, Singapore, and Japan rose 11.1% year over year in the FY25 third quarter, helping total network sales grow 23.6% year over year.

Finally, this ASX growth share is the type of business I expect can deliver pleasing operating leverage, where profit margins improve as it gets bigger and each restaurant serves more customers.

In the FY25 half-year result, GYG reported revenue growth of 27%, operating profit (EBITDA) growth of 28.3%, profit before tax growth of 51.4%, and net profit after tax (NPAT) growth of 91.2%.

I think this company has a long growth runway ahead of it.

The post Looking for ASX growth shares? I rate these 2 as buys 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.

I think it's one of the most appealing ETFs due to its low costs and the exposure it provides to a portfolio of strong, American-listed businesses.

However, as time goes on, the IVV ETF is becoming increasingly concentrated on just a few names including Microsoft, Nvidia, Apple, Amazon, Alphabet, Meta Platforms, Broadcom and Berkshire Hathaway.

It's a great thing to be invested in these businesses. However, for investors wanting more diversification (not less), it could be an idea to add other ASX ETFs that can also perform well, while proving exposure to different businesses.

Betashares Global Quality Leaders ETF (ASX: QLTY)

This fund aims to look for the highest-quality companies from across the world. It does that by looking at four key factors.

Those four attributes which businesses must rank well on include return on equity (ROE), debt to capital, cash flow generation and earnings stability.

In other words, they make strong profits compared to the amount of shareholder money retained within the business, they have low debt, they generate strong cash flow and their earnings typically don't go backwards.

Its 150 holdings are much more evenly weighted than the IVV ETF.

Currently, the biggest holdings in QLTY ETF (with a weighting of 2.1%) are Cisco Systems, Palo Alto Networks, LAM Research and Netflix.

About two-thirds of the portfolio is invested in US-listed shares and the other third is invested in markets like Japan, the Netherlands, France, the UK, Denmark, Switzerland, Hong Kong and Spain.

Past performance is not a guarantee of future performance, but the QLTY ETF has returned an average of 14.9% per annum since inception in November 2018.

VanEck MSCI International Small Companies Quality ETF (ASX: QSML)

I think it's worthwhile that investors consider owning some smaller businesses too because of their ability to produce stronger returns than larger, more mature ones.

This fund provides exposure to 150 international quality small-cap shares from developed markets.

There are three factors that businesses must display to be considered for the portfolio: a high ROE, earnings stability and low financial leverage.

Around 80% of the ASX ETF's portfolio is invested in US-listed shares, but companies from the UK, Japan, Switzerland, Sweden, France, Mexico, Bermuda, Israel, and Finland are also represented.

I think the businesses in this portfolio have a lot of attractive features which have helped them perform strongly. Again, past performance is not a guarantee of future returns. However, the QSML ETF has returned an average of 16.25% per year over the last three years.

The post Overinvested in iShares S&P 500 ETF? Here are two alternative ASX ETFs for growth appeared first on The Motley Fool Australia.

Share prices and valuations are always changing, but the underlying quality of businesses helps drive long-term returns.

I think the quality of business is usually the biggest driver of whether it can continue growing and investing in itself for longer-term profit growth. If it's lower quality, or doesn't have a strong competitive advantage, then competitors may swoop in and challenge that business.

Having said that, below are two of the highest-quality ASX stock investments we can buy right now, in my opinion.

VanEck MSCI International Small Cos Quality ETF (ASX: QSML)

This is an exchange-traded fund (ETF) that gives investors exposure to a portfolio of high-quality, smaller businesses listed globally.

I believe smaller businesses generally have more growth potential than large businesses because they are typically earlier on in their growth journey. I'd say it's much easier to double a $5 billion business in size than a $50 billion business.

I'm calling this fund an ASX stock because we can buy it on the ASX.

The fund is invested in 150 of the world's highest-quality small companies. There are three key fundamentals for a business to be chosen for this fund. First, they must have a high return on equity (ROE), earnings stability and low financial leverage. When you put those elements together, it's a strong combination, in my view.

Another appealing element of this investment is that it's diversified. Its 150 businesses currently come from the following markets: the US, the UK, Japan, Switzerland, Sweden, France, Mexico, Bermuda, Israel and Finland.

It's also diversified by sector, with the four largest weightings being industrials, financials, consumer discretionary and IT.

To me, it's not a surprise that the QSML ETF has returned an average of 16.25% per annum in the last three years.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is one of the most impressive ASX growth stocks, in my opinion. It provides enterprise resource planning (ERP) as a software as a service (SaaS) offering. Its multinational client base includes companies, government agencies, local councils and universities.

The business has an exceptionally high level of customer loyalty, which makes the business defensive, in my opinion. It also says to me that subscribers love the software.

TechnologyOne invests significantly into research and development each year, which helps improve the software and unlocks stronger revenue and profit growth.

The business recently reached $511 million of annual recurring revenue (ARR) in its FY25 half-year result. It's now aiming to reach at least $1 billion of ARR by FY30. I think the company is very capable of reaching that target, particularly if it continues winning new customers in northern hemisphere markets such as the UK.

Due to the nature of software, I'm also expecting the ASX stock to deliver stronger profit margins. I think the combination of strong revenue growth and rising margins could mean excellent bottom-line performance over the long-term and help the TechnologyOne share price climb further in the coming years.

The post I'm very bullish on these 2 ASX stocks appeared first on The Motley Fool Australia.

Every large business was a small company at one point. If we can invest in excellent businesses at an earlier stage of their development, then we can ride along with the business as it grows.

However, we don't need to invest in the tiniest ASX shares to buy into a growing business. The ASX ETF VanEck MSCI International Small Cos Quality ETF (ASX: QSML) is a compelling idea for several reasons, in my opinion.

High-quality small businesses

This fund aims to invest in some of the world's highest-quality small companies based on three key fundamentals – a high return on equity (ROE), earnings stability and low financial leverage.

What this says to me is that these businesses earn high levels of profit for shareholders, the profit doesn't usually go backwards and they have a low amount of debt for their size. Just one of those factors makes for an appealing business, but all three of those factors combined is very attractive, in my opinion.

Outperformance

VanEck, the provider of the ASX ETF, says that investments focusing on quality small companies have delivered outperformance over the long-term relative to other global small companies benchmarks and also relative to large-cap and mid-cap benchmarks.

Impressively, over the last three years, the QSML ETF has returned an average of 14.2% per year. Past performance is not a guarantee of future returns, but with how the QSML ETF is set up, I think it can perform very well in the coming years.

Diversification

This ASX ETF can provide a pleasing level of diversification, just like funds aimed at larger businesses.

The QSML ETF is invested in 150 names from across the world. These businesses come from a number of countries including the US, the UK, Japan, Switzerland, Sweden, France, Mexico and more.

Interestingly, a significant portion of the fund (38.1%) is invested in industrial businesses, which can mean a wide array of areas within that. Other sectors with a weighting of more than 5% in the fund include financials, consumer discretionary, healthcare, IT, resources and consumer staples.

A combination of compelling businesses and good diversification is a winning combination, in my opinion.

The post I think it's a great time to invest in this top ASX ETF appeared first on The Motley Fool Australia.