Some Australians may want to find funds that are weighted towards businesses with strong capital growth potential. Other investors may want to own investments that provide a pleasing level of passive income.

There are advantages (and disadvantages) to each type of ETF strategy, so I think it's wise to look at both ideas.

Capital growth

The power of compounding can help capital growth deliver very pleasing wealth-building over time.

Capital growth would suggest that the businesses involved are growing revenue/profit at a useful speed to help send the share price higher over time.

I don't think investors can go too far wrong with an international-focused ASX ETF that provides pleasing exposure to high-quality, growing businesses such as Vanguard MSCI Index International Shares ETF (ASX: VGS) and iShares S&P 500 ETF (ASX: IVV).

But, I'm a big believer in the idea that higher-quality businesses will outperform average businesses over the long-term, particularly when the market/economy goes through a rough patch.

I like the following international-focused ETFs because of how they build a portfolio based on quality attributes: Global X S&P World Ex Australia GARP ETF (ASX: GARP), VanEck MSCI International Quality ETF (ASX: QUAL), Betashares Global Quality Leaders ETF (ASX: QLTY) and VanEck Morningstar Wide Moat ETF (ASX: MOAT).

I believe the four options above are great to consider for building wealth and they can also be great options for Australians looking to invest in retirement.

For starters, a retiree may still have decades ahead that their portfolio needs to last, so capital growth is a useful feature.

Secondly, when in retirement, Australians can unlock income by selling a portion of their investment holding each year. For example, if they have $100,000 in an ASX ETF, they could sell $4,000 to unlock a 4% cash flow 'yield'. Its long-term capital growth may be strong enough for the portfolio/ETF value to outpace the sales.

For example, if a $100,000 investment grows in value by 10% over a year it becomes $110,000 and a sale of $4,000 would mean $106,000 remaining for the next year. That's a combination of capital growth of $4,000 of income to spend.

ASX ETFs that provide dividends

Some retirees may not want to sell anything. Instead, their preference may be just to hold an investment and receive passive income from it.

A lot of internationally-focused ASX ETFs don't have a large dividend yield because the underlying shares don't have a large yield either, meaning there's not much income for the ETF to pass on.

Some people may like the Vanguard Australian Shares High Yield ETF (ASX: VHY) because it invests in high-yielding ASX shares, enabling it to give investors a lot of passive income. However, the compound earnings growth of the businesses in this fund are typically low, so I'm not a huge fan.

That's why I like ASX ETFs that have a pleasing targeted distribution yield while still providing investors with a good dividend yield.

One of my favourite ideas in this space is WCM Quality Global Growth Fund (ASX: WCMQ), which targets a distribution yield of 5%. Growth of the fund's net asset value (NAV) can unlock distribution growth for investors.

The post Which ASX ETFs I'd buy for retirement investing appeared first on The Motley Fool Australia.

Of course, a $1 million portfolio doesn't just appear out of nowhere.

Anyone with a bit of flexibility with their budget, which may be a bit rarer during this period, may be able to regularly put some money aside into investing.

Australians need to be patient when it comes to wealth-building. Rome wasn't built in a day, after all.

But, having said that, people that can invest should be able to reach $1 million thanks to the power of compounding. The power of compounding helps a number grow into a much larger figure over time – our portfolio can grow itself.

It's like planting a small sapling and it growing into a fruit tree that can start producing its own fruit.

How long would it take for our financial tree to turn into $1 million? That's what I'm about to show.

The power of compounding to $1 million

Each Australian household will need to figure out how much they are able to invest into ASX shares. So, I'll show how it could look for a variety of regular investment sizes.

For starters, the local share market has returned an average of around 10% per year over the ultra-long-term. We can invest in the ASX share market quite easily through the Vanguard Australian Shares Index ETF (ASX: VAS).

We'd need a crystal ball to know what the future returns will be, but I think using a 10% return is a simple number to use in the following calculations.

If a household can invest $500 per month and it returns 10% per year, that would grow to $1 million in less than 31 years.

Investing $1,000 per month would turn into $1 million in less than 24 years.

Being able to invest $2,000 per month would allow the portfolio value to become $1 million in less than 18 years.

For me, one of the most appealing things about these scenarios is how little an investor needs to invest to become a millionaire.

For example, in the scenario where someone is investing $500 per month for 31 years, that household has only invested $186,000 of their own money and the rest has been created from investment compounding.

Someone who has invested $1,000 per month for 24 years would have contributed $288,000.

How can I reach millionaire status sooner?

There are two main ways investors can accelerate their wealth-building. First, we can simply invest more per month. But, that's not available to all Australians because of budgetary constraints.

The other way to grow our wealth faster is to choose investments that could produce stronger returns than the VAS ETF.

I think there are plenty of opportunities to do that, even just in the exchange-traded fund (ETF) space such as Vanguard Msci Index International Shares ETF (ASX: VGS), VanEck MSCI International Quality ETF (ASX: QUAL) and VanEck Morningstar Wide Moat ETF (ASX: MOAT).

I'm also excited about the potential of ASX growth shares to outperform the ASX share market.

The post How long does it take to become a millionaire with ASX shares? appeared first on The Motley Fool Australia.

The team at Bell Potter thinks that this has created a compelling buying opportunity for investors.

What is it saying?

The broker highlights that there are high-quality stocks trading at attractive levels. It notes that this valuation reset comes despite earnings remaining robust and fundamentals not weakening. It said:

A wide range of quality companies are currently trading at valuations that are attractive relative to historical norms and their long-term earnings potential. These companies have strong balance sheets, providing insulation against both the rising cost of capital and geopolitical volatility. Importantly, the structural tailwinds for some of these companies from AI and digital transformation remain largely independent of Middle Eastern tensions or fluctuating oil prices.

This valuation reset is underpinned by robust earnings rather than weakening fundamentals. While not cheap in absolute terms, this shift represents an attractive entry point relative to recent history. Importantly, earnings revisions remain positive despite higher oil prices; the S&P 500 has seen 2.5% upgrades in the past month. The recent sell-off appears indiscriminate, but we expect a rotation towards quality given positive fundamentals and the heightened uncertainty we expect to persist.

But if you're not a fan of stock picking, don't worry. That's because Bell Potter thinks two ASX ETFs could be a way to take advantage of the weakness.

Global X Fang+ ETF (ASX: FANG)

The first ASX ETF it is recommending is the Global X FANG ETF. It gives investors access to 10 of the best stocks from across the globe. It explains:

The Global X FANG ETF (FANG) provides concentrated, high conviction exposure to the leaders of the modern economy. It tracks the NYSE FANG Plus Index, which is composed of 10 highly traded growth stocks across the technology and communication services sectors. This includes the original FANG names alongside other innovative giants such as Nvidia and Microsoft. With a management fee of 0.35% per annum, it offers an efficient way to target the specific mega cap tech names that have seen the most significant sentiment-driven de-rating despite their robust balance sheets and leading roles in the AI revolution.

VanEck MSCI International Quality ETF (ASX: QUAL)

Another ASX ETF that the broker is recommending is the VanEck MSCI International Quality ETF.

It gives investors exposure to 300 of the best stocks from across the world. It said:

For those preferring a more diversified approach, the VanEck MSCI International Quality ETF (QUAL), offers exposure to approximately 300 of the world's highest quality companies. This fund follows a rules-based methodology that selects stocks based on three key fundamental factors: high return on equity, stable year-on-year earnings growth, and low financial leverage. While still heavily weighted towards US technology giants like Apple and Microsoft, QUAL provides a broader safety net by including high quality names across healthcare, industrials, and consumer staples.

The post Bell Potter names 2 of the best ASX ETFs to buy now appeared first on The Motley Fool Australia.

From low-cost local exposure to global growth leaders, here are five of the best ASX ETFs to consider today.

Vanguard Australian Shares Index ETF (ASX: VAS)

First up is this popular Vanguard ETF, which remains a go-to core holding for local market exposure. This fund tracks a broad basket of Australian shares and includes many of the ASX's biggest dividend payers like BHP Group Ltd (ASX: BHP) and Wesfarmers Ltd (ASX: WES).

If you want a reliable, set-and-forget foundation for your portfolio, VAS is hard to beat.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

For global diversification, the ASX ETF stands out. It gives investors access to hundreds of companies across major developed markets, including the US, Europe, and Japan.

With names like Apple Inc (NASDAQ: AAPL) and Microsoft Corp (NASDAQ: MSFT) in the mix, it's a powerful way to tap into global growth trends. This fund remains one of the most popular ETFs and it helps reduce overexposure to Australian banks and miners.

BetaShares Australia 200 ETF (ASX: A200)

If keeping fees as low as possible is your priority, take a look at the BetaShares Australia 200 fund. The ASX ETF offers exposure to 200 of Australia's largest companies at one of the lowest management fees on the market.

Over the long term, those lower costs can make a meaningful difference to your returns. This BetaShares fund could be a low-cost alternative to VAS.

iShares S&P 500 ETF (ASX: IVV)

Want more direct exposure to the powerhouse US market? This index fund is a popular pick. It tracks the S&P 500, giving you access to 500 of America's largest companies.

With the US continuing to lead in innovation — particularly in tech and Artificial Intelligence — IVV offers a simple way to ride that wave.

VanEck MSCI International Quality ETF (ASX: QUAL)

Finally, for investors looking for a quality tilt, this VanEck fund is worth a look. It's great for investors who want Warren Buffett-style businesses globally.

This ETF focuses on high-quality global companies with strong balance sheets, stable earnings, and competitive advantages. It's a great option if you want to reduce risk while still staying invested in global equities.

Foolish Takeaway

The bottom line? You don't need to overcomplicate things.

A handful of high-quality ETFs like these can form the backbone of a strong, long-term portfolio — and April could be a great time to get started.

The post 5 of the best ASX ETFs to buy in April appeared first on The Motley Fool Australia.

They give investors access to many world-class businesses and companies with strong long-term growth potential.

Here's why I would be seriously considering them this week.

Vanguard Australian Shares Index ETF (ASX: VAS)

I would start with a core allocation to the Australian market through the Vanguard Australian Shares Index ETF.

It provides exposure to a broad range of Australian shares, from large caps like BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA) through to mid and smaller companies like Temple & Webster Ltd (ASX: TPW) and Siteminder Ltd (ASX: SDR).

I like the balance it offers between income and growth, as well as the benefit of franking credits. It is not the most exciting ASX ETF, but I think it is one of the most dependable.

Vanguard S&P 500 US Shares Index ETF (ASX: V500)

Next, I would want meaningful exposure to the United States through the Vanguard S&P 500 US Shares Index ETF.

In my view, it is hard to ignore the long-term strength of the US market.

This ETF gives access to 500 of the largest companies in the world's biggest economy, including global leaders across technology, healthcare, and consumer sectors.

I see this as a key growth driver in the portfolio, and a way to diversify away from Australia's relatively concentrated market.

VanEck MSCI International Quality ETF (ASX: QUAL)

While broad exposure is important, I also like having a tilt toward quality.

That is where the VanEck MSCI International Quality ETF comes in.

This ETF focuses on stocks with strong returns on equity, stable earnings, and low financial leverage. I think that kind of discipline can be particularly valuable during periods of volatility.

For me, this is about increasing the overall quality of the portfolio without having to pick individual global stocks.

Vanguard FTSE Asia Ex-Japan Shares Index ETF (ASX: VAE)

I would also include the Vanguard FTSE Asia Ex-Japan Shares Index ETF.

I believe Asia will play an increasingly important role in global economic growth over the coming decades.

This ETF provides access to a wide range of markets, including China, India, Taiwan, and South Korea. It adds a different set of growth drivers compared to the US and Australia.

It can be more volatile, but over the long term, I think that growth potential is worth having in the portfolio.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Finally, I would add a small allocation with the BetaShares Global Cybersecurity ETF.

Cybersecurity is an area I believe will only become more important over time. As businesses and governments continue to migrate to the cloud, the need to protect data and systems is growing rapidly.

This ASX ETF provides exposure to a range of global cybersecurity companies, offering a more targeted growth opportunity alongside the broader market exposures.

Foolish takeaway

If I were investing $50,000 today, I would focus on ETFs that I could hold for years.

The VAS ETF would provide a strong Australian foundation, the V500 ETF would deliver exposure to the US, the QUAL ETF would add a quality tilt, the VAE ETF would capture Asian growth, and the HACK ETF would bring a thematic edge.

The post Here are 5 ASX ETFs that I would buy with $50,000 appeared first on The Motley Fool Australia.

But I'm not trying to predict what April will bring. Markets can move for all sorts of reasons in the short term. I'm thinking about what I would be happy to hold for the long term.

Right now, there are two ASX exchange-traded funds (ETFs) on my watch list. 

Each could play a different role in a portfolio, and together I believe they offer a compelling mix of quality, growth, and global diversification.

VanEck MSCI International Quality ETF (ASX: QUAL)

One of the hardest parts of investing, in my experience, is consistently sticking to high-quality businesses. It is easy to get distracted by hype or short-term opportunities. That is where I believe this ETF really earns its place.

The VanEck MSCI International Quality ETF systematically filters for stocks with strong returns on equity, stable earnings, and sensible balance sheets. In other words, it focuses on businesses that are already doing a lot of things right.

But what appeals to me most is not just the end result. It is the process.

I like knowing that there is a rules-based approach constantly refining the portfolio, keeping it tilted toward financially strong companies without me having to make those calls myself.

Of course, you end up with familiar global leaders in the mix. But I think the real value lies in the consistency of the quality filter over time. Personally, I see this as a core building block. It is the part of a portfolio I would feel most comfortable holding through volatility without second guessing.

Vanguard FTSE Asia Ex-Japan Shares Index ETF (ASX: VAE)

I think it is very easy as an Australian investor to end up overly exposed to a handful of familiar markets. Australia. The United States. Maybe a bit of Europe. 

But when I look ahead 10 or 20 years, I find it hard to believe that growth will be concentrated only in those regions.

That is why I think the Vanguard FTSE Asia Ex-Japan Shares Index ETF is well worth considering.

This ETF gives exposure to a wide range of Asian economies, from China and India through to Taiwan and South Korea. And what I find compelling is the diversity within that region.

You have advanced semiconductor manufacturing, rapidly expanding middle classes, digital platforms with enormous user bases, and economies still earlier in their growth journey compared to the West.

I do not see this as a short-term trade. In fact, I think it requires patience. There will likely be periods of volatility, particularly given geopolitical and economic uncertainties.

But if I am investing with a long-term mindset, I believe having meaningful exposure to Asia is not just an option. It is something I want to build over time.

Foolish takeaway

As I head into April, I am not trying to make bold, all-or-nothing bets.

Instead, I am thinking about how to steadily build a portfolio of ASX ETFs that I would be comfortable holding for years.

For me, these two ETFs tick all the boxes and could move from my watch list to my portfolio next month.

The post Why I'm seriously thinking about buying these ASX ETFs in April appeared first on The Motley Fool Australia.

Currently, a good coffee could cost around $7 per cup in one of Australia's major cities, which translates into $49 per week and approximately $2,550 per year.

That doesn't sound like a lot compared to the current Age Pension of $1,100.30 per fortnight, or $28,600 annually, for a single person.

But, compounding is a great ally to assist with wealth building. Compounding can help a small number grow into a much larger figure over time as interest earns interest.

The power of a coffee and compounding

The numbers I'm about to outline are based on what daily coffee typically would cost, but it doesn't need to be a coffee exactly, it could be another relatively small expense that is replaced. Or even just what can happen when someone regularly invests a limited amount each year. I'll base the number on someone who's currently 30 years old, with 40 years to retirement. Someone older may have less time to retirement, but more financial capability to invest bigger sums each year.

Simply putting $2,550 each year under the mattress would mean $102,000 after 40 years. That wouldn't be enough to outperform the Age Pension. Stashing money under the mattress would not mean any protection from inflation over those years.

If someone earned 4% interest during those years from a bank acount, the $102,000 would actually grow into $242,315. With a 4% interest rate, that would generate $9,692.6 of annual interest, which still doesn't match the current income from the Age Pension.

If we choose great (ASX) share investments, that could lead to very strong wealth creation.

For example, up until February 2026, the VanEck MSCI International Quality ETF (ASX: QUAL) had returned an average of 15.3% per year since its inception in October 2014.

If our daily coffee figure achieved that same return over the next 40 years – remembering that past performance is not a guarantee of future performance – then it would grow into $4.94 million. That's how powerful compounding is.

Withdrawing 4% per year from that balance would mean annual cash flow of $197,523. In my view, that's likely to be (far) more than what the Age Pension will be in 40 years from now.

I'd invest more than that

Of course, we don't know how shares will perform over the next 40 years, and it's also hard to say what inflation will do to the value of a dollar.

So, I think it'd be a wise idea to invest more than $2,500 per year into shares, if a household's finances allow.

I'm currently building my non-super share portfolio to provide a mixture of both capital growth and dividend income, with the dividends adding to my regular income from names like Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). I like that strategy to help both my shorter-term and long-term finances.

The post You can aim to beat the Age Pension for the price of a daily coffee! appeared first on The Motley Fool Australia.

Some simply track broad indices, while others take a more selective approach by focusing on businesses with strong fundamentals.

With that in mind, here are three ASX ETFs that put quality at the centre of their strategy and could be worth considering today.

VanEck MSCI International Quality ETF (ASX: QUAL)

The first ETF that has gained a strong following is the VanEck MSCI International Quality ETF.

This fund screens global companies based on metrics such as return on equity, earnings stability, and low financial leverage. The result is a portfolio of high-quality businesses with proven track records.

Its holdings include companies like Microsoft (NASDAQ: MSFT), NVIDIA (NASDAQ: NVDA), and Visa (NYSE: V). Microsoft, for example, generates recurring revenue through its cloud platform Azure and its Office software suite, which are deeply embedded in business operations worldwide. This creates a highly predictable earnings stream and strong margins.

By focusing on these types of companies, the ETF aims to provide exposure to global leaders that can compound earnings over time. The team at VanEck recently recommended this fund.

BetaShares Australian Quality ETF (ASX: AQLT)

For investors wanting a local angle, the BetaShares Australian Quality ETF applies a similar philosophy to the Australian market.

Instead of concentrating on just the biggest companies, it selects businesses based on profitability, earnings consistency, and financial strength. This can result in a portfolio that looks quite different from the broader ASX.

Its holdings include companies such as CSL Ltd (ASX: CSL), REA Group Ltd (ASX: REA), and Goodman Group (ASX: GMG). CSL is a good example of a quality business, with a global presence in plasma therapies and vaccines, supported by significant research and development capabilities and strong margins.

This focus on high-quality Australian shares can help investors gain exposure to businesses with more resilient earnings profiles. This fund was recently recommended by analysts at Betashares.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

A final ASX ETF with a quality tilt is the VanEck Morningstar Wide Moat ETF.

Rather than using financial metrics alone, this fund looks for companies with sustainable competitive advantages, or economic moats. These are businesses that can protect their market position and profitability over long periods.

Its holdings include companies like Airbnb (NASDAQ: ABNB), Boeing (NYSE: BA), and Nike (NYSE: NKE). Airbnb, for instance, dominates the short-term stays market with an accommodation network stretching across the globe.

The ETF also incorporates valuation into its process, aiming to invest in these high-quality companies when they are attractively priced.

By combining competitive advantages with valuation discipline, it offers a slightly different take on quality investing.

The post 3 amazing ASX ETFs that focus on quality appeared first on The Motley Fool Australia.

For beginners, the focus should be on building a simple, diversified portfolio that can grow over time.

Exchange traded funds (ETFs) can be ideal for this, offering exposure to a wide range of companies or strategies through a single investment.

With $5,000 to invest, here are three ASX ETFs that could help you get started on the right foot.

VanEck MSCI International Quality ETF (ASX: QUAL)

The first ASX ETF that stands out for beginners is the VanEck MSCI International Quality ETF.

Instead of tracking the biggest companies, this fund focuses on businesses with strong fundamentals, such as high returns on equity, low debt levels, and consistent earnings growth. These are often the types of companies that can perform well across different market cycles.

By investing in the VanEck MSCI International Quality ETF, you are effectively gaining exposure to a curated group of global stocks that have demonstrated financial strength and resilience.

For new investors, this can provide a more disciplined approach to global investing compared to traditional index funds.

This fund was recently recommended by analysts at VanEck.

BetaShares Australian Quality ETF (ASX: AQLT)

If you want local exposure, the BetaShares Australian Quality ETF takes a similar approach within the Australian market.

Rather than holding all the major ASX shares, it selects those that score highly on profitability, earnings stability, and financial health.

This results in a portfolio that tilts towards more reliable and consistent performers, rather than simply the largest companies by market value.

Current holdings include BHP Group Ltd (ASX: BHP), Telstra Group Ltd (ASX: TLS), and Wesfarmers Ltd (ASX: WES).

For beginners, this can be an appealing way to invest in Australian shares while focusing on quality over size, potentially helping to smooth returns over time.

Analysts at Betashares recently recommended this fund.

iShares S&P 500 ETF (ASX: IVV)

To complement these quality-focused strategies, the iShares S&P 500 ETF offers broad exposure to the US market.

This ASX ETF gives investors access to 500 of the largest companies in the United States, covering sectors such as technology, healthcare, and consumer goods.

Among its holdings are the likes of Microsoft (NASDAQ: MSFT), Walmart (NYSE: WMT), and Apple (NASDAQ: AAPL).

This means it provides instant diversification and access to many of the world's most influential businesses, potentially making it a strong core holding for beginner investors.

The post 3 ASX ETFs for beginners starting with $5,000 appeared first on The Motley Fool Australia.

A new report from VanEck has shed light on the sectors that may hold up in this current environment. 

Global energy fragility 

According to VanEck, The Middle East crisis has reinforced how fragile global energy security is, particularly given Iran's role in oil production and the Strait of Hormuz chokepoint. 

As a result, investors are wondering how best to position themselves for the turmoil.

VanEck said we may be moving from a short-lived shock to a conflict that could last months, disrupting crude oil and LNG supply and affecting the energy system's core infrastructure, transport, production, and refining.

We think gold, defence, commodities and quality are structurally positioned for this environment.

Gold still a safe-haven 

VanEck said gold is supported by central bank accumulation, fiscal deterioration and geopolitical uncertainty.

Since the crisis broke out, gold has risen back above US$5,200/oz on safe-haven demand, and we think it is expected to push further.

According to the report, the structural drivers for gold, central banks accumulating at the fastest pace since Bretton Woods, US fiscal deterioration and the slow unwinding of dollar hegemony were in place before the Middle East conflict. 

The Strait of Hormuz threat, if it materialises, introduces the prospect of an inflationary oil shock on top of an already uncertain rate environment. That combination, geopolitical uncertainty plus inflation risk, is an environment in which gold has historically performed best.

For investors looking to gain exposure to gold shares, options include: 

• Vaneck Gold Bullion ETF (ASX: NUGG)
• VanEck Vectors Gold Miners ETF (ASX: GDX) – gives investors instant access to 92 of the largest and most liquid global gold mining companies.

Defence 

VanEck also noted defence spending was already in a structural upcycle; the conflict has accelerated the long-term repricing of security.

In terms of defence, if investors think long-term yields are near their highs, they could consider layering in duration, at the same time, with short-term rates rising, the yields on floating rate exposures will increase as rates rise. In addition, US Treasuries offer a potential portfolio hedge against risk-off periods and periods of rising rates.

ASX ETFs to consider in this sector include: 

• Vaneck Global Defence Etf (ASX: DFND)
• Betashares Global Defence ETF – Beta Global Defence ETF (ASX: ARMR). 

More information on global defence ETFs can be found here.

Energy and quality 

Furthermore, demand for traditional energy has increased, and investors are once again turning to traditional resources as well as critical minerals for strategic portfolio exposures. 

In terms of quality investing: 

The uncertainty creates volatility and quality companies tend to do relatively well in these environments as investors seek companies with stronger balance sheets and stable earnings.

Real assets also tend to perform relatively well because they provide tangible, consistent cash flows and act as inflation hedges.

For investors seeking energy and quality focussed exposure: 

• VanEck Vectors Msci World Ex Australia Quality ETF (ASX: QUAL)
• VanEck Australian Resources ETF (ASX: MVR)

The post How to position your ASX portfolio in the current environment – Expert appeared first on The Motley Fool Australia.

The short-term may be volatile, but that can happen every so often on the share market. Sometimes the world can throw up a big unexpected event which cause share prices to drop.

Earnings of some businesses may well fall. But, some may fare better than others because of the quality metrics they possess.

I want to highlight two funds in-particular that have performed strongly over the long-term and could be resilient through whatever happens next. But, I have a positive view about the long-term.

Betashares Global Quality Leaders ETF (ASX: QLTY)

This ETF represents a global portfolio of 150 companies that are ranked by the highest quality score.

By owning 150 businesses from across the world and in different sectors, it offers investors significant diversification, much more than what the S&P/ASX 200 Index (ASX: XJO) currently provides.

BetaShares says that the quality score rankings used to select the stocks in the index are based on a combined ranking of four key factors – return on equity (ROE), debt-to-capital, cash flow generation ability and earnings stability.

In other words, these businesses make a lot of profit for shareholders, they use little-to-no debt to do so, they generate plenty of cash flow and their earnings are stable. But combining these elements, I think you're left with many of the world highest-quality companies in the portfolio.

Over the three years to the end of February 2026, the QLTY ETF returned an average of 17.3% per year, which is an excellent return, in my view. Past performance is not a guarantee of future returns of course.

I'm backing the ASX ETF's portfolio to continue delivering good results over time.

VanEck MSCI International Quality ETF (ASX: QUAL)

The QUAL ETF has a somewhat similar setup – it's aiming to provide investors with a high-quality global portfolio that is decided by a few quality-based metrics.

It doesn't look at quite as many quality characteristics, but it does own twice as many shares as the QLTY ETF. In terms of the number of different names it provides exposure to, it does have more diversification.

The three metrics that this ASX ETF looks for is a high return on equity, earnings stability and low financial leverage. In other words, these businesses are very profitable on behalf of shareholders' funds, the profit is resilient and doesn't usually go backwards, and these companies don't utilise much, if any debt, as part of the business.

Impressively, to 28 February 2026, it has returned an average of 20.3% per year over the prior three years, though that's not a guarantee of future returns.

The post 2 ASX ETFs I'd buy for returns and to sleep well at night appeared first on The Motley Fool Australia.

These funds can provide diversification, exposure to resilient assets, and lower volatility during economic downturns.

Rather than trying to time market swings, defensive ASX ETFs aim to smooth returns. They do this by investing in assets that have historically held up better during crises, such as government bonds, gold, and high-quality global companies.

If I were building a more resilient portfolio today, these three ASX ETFs would be on my radar.

Vanguard Australian Fixed Interest ETF (ASX: VAF)

This Vanguard ASX ETF focuses on investment-grade Australian bonds, including government and high-quality corporate debt.

Bonds are often considered one of the most reliable defensive assets because they tend to perform better when economic growth slows and central banks cut interest rates. During equity market selloffs, investors frequently rotate into bonds for safety, which can support prices.

The fund tracks a broad bond index and includes securities issued by the Australian government as well as major financial institutions such as Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd (ASX: NAB).

The strength of this ASX ETF is stability. Income from interest payments can help cushion portfolios during equity downturns, and the diversification across many issuers reduces individual credit risk.

However, bond ETFs are not completely risk-free. Rising interest rates can push bond prices lower, which means returns may be weaker during periods of tightening monetary policy.

Global X Physical Gold ETF (ASX: GOLD)

The Global X Physical Gold ETF offers investors exposure to the price of physical gold stored in secure vaults.

Gold has long been viewed as a hedge during financial crises, inflation shocks, and currency volatility. When investors lose confidence in financial markets, demand for gold often increases.

That dynamic has helped the metal perform well during several major market disruptions, including the Global Financial Crisis and the COVID-19 market crash.

Unlike equity ETFs, this ASX ETF doesn't hold corporate shares. Instead, it tracks the price of physical bullion. While gold mining giants such as Newmont Corporation (ASX: NEM) and Barrick Mining Corp (NYSE: B) are often influenced by the same underlying commodity trends, this ETF gives direct exposure to the metal itself.

The key strength here is diversification. Gold often moves differently from shares and bonds, which can help reduce overall portfolio volatility.

The main drawback is that gold does not generate income like dividends or interest, meaning long-term returns depend entirely on price appreciation.

VanEck MSCI World ex Australia Quality ETF (ASX: QUAL)

The VanEck ASX ETF focuses on high-quality global companies with strong balance sheets, high returns on equity, and stable earnings.

Quality investing is a defensive strategy because companies with durable competitive advantages and consistent cash flow often perform better during economic slowdowns.

The ETF holds global leaders such as Apple Inc (NASDAQ: AAPL) and Microsoft Corp (NASDAQ: MSFT), along with dozens of other financially strong multinational businesses.

One of the biggest advantages of this ASX ETF is exposure to resilient global franchises that dominate their industries. These types of businesses tend to maintain profitability even when economic conditions weaken.

The main risk is that the fund still invests in equities, meaning it can fall during broad market selloffs. However, quality stocks have historically been less volatile than the broader market over the long term.

The post 3 defensive ASX ETFs to battle through market turmoil appeared first on The Motley Fool Australia.

Rather than concentrating everything in one sector, I would spread the portfolio across several parts of the market and combine that with broad exchange-traded funds (ETFs).

Here's how I would do it.

Half in reliable ASX dividend shares

For the first half of the portfolio, I would focus on dependable Australian companies with a history of generating strong cash flow and paying dividends.

Infrastructure would be one area I would want exposure to. Businesses that own long-life assets such as toll roads or energy infrastructure often produce predictable revenue streams, which can support stable dividends. Companies like Transurban Group (ASX: TCL) and APA Group (ASX: APA) are examples of the type of infrastructure exposure that can play a role in income-focused portfolios.

I would also want exposure to defensive consumer businesses. Supermarkets and essential retail tend to hold up relatively well during economic downturns because households continue spending on everyday goods. Businesses such as Woolworths Group Ltd (ASX: WOW) fall into this category and can add stability to a portfolio.

Banks would likely form another part of the mix. Australian banks have historically paid attractive fully franked dividends and remain some of the largest income generators on the ASX. Institutions such as Commonwealth Bank of Australia (ASX: CBA) and Macquarie Group Ltd (ASX: MQG) often play a role in income-focused portfolios for that reason.

I would also include exposure to the resources sector for balance. Mining companies can be cyclical, but the major diversified miners have historically returned large amounts of cash to shareholders when commodity markets are strong. Companies like BHP Group Ltd (ASX: BHP) or Rio Tinto Ltd (ASX: RIO) could provide that element of the portfolio.

Together, a diversified group of high-quality dividend stocks across these sectors could form the foundation of the portfolio's income.

Half in diversified ETFs

The remaining half of the retirement portfolio I would allocate to broad ETFs.

This would help diversify the portfolio beyond Australia and reduce reliance on any single company or sector. It also provides exposure to hundreds or even thousands of businesses across global markets.

One option could be the VanEck MSCI International Quality ETF (ASX: QUAL), which focuses on global companies with strong balance sheets, high returns on equity, and stable earnings growth.

Another ETF that could complement this is the iShares S&P 500 AUD ETF (ASX: IVV), which provides exposure to the 500 largest companies on Wall Street.

Adding ETFs like these would bring global diversification to the portfolio while still allowing the Australian dividend stocks to do most of the heavy lifting on income.

Retirement income

Based on the above, I would be expecting a dividend yield in the region of 3% to 4% from this ASX retirement portfolio.

That means with $1 million invested, I would expect to be receiving income of $30,000 to $40,000 each year.

But it shouldn't stop there. The way this portfolio is set up, I would expect my income to increase each year that it is operational.

Foolish takeaway

If I were building a $1 million ASX retirement portfolio, my focus would be on balance.

Roughly half could be invested in reliable Australian dividend shares across sectors such as infrastructure, banking, consumer staples, and resources.

The other half could sit in diversified ETFs to provide global exposure and long-term growth.

Together, that type of portfolio could potentially deliver an income stream around the 3% to 4% mark while remaining diversified enough to weather different market conditions over time.

The post This would be my $1 million ASX retirement portfolio appeared first on The Motley Fool Australia.

For many investors, exchange traded funds (ETFs) offer a cleaner, lower-maintenance way to build long-term wealth. With a single trade, you can gain exposure to entire regions, themes, or investment styles.

With that in mind, here are five fantastic ASX ETFs that could be worth buying and holding for years to come.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The first ASX ETF that could be a buy is the Betashares Asia Technology Tigers ETF. It is an easy and effective way to access the digital transformation happening across Asia.

This fund includes major regional innovators such as Tencent (SEHK: 700), Alibaba (NYSE: BABA), and Baidu (NASDAQ: BIDU). These companies are deeply embedded in ecommerce, cloud computing, artificial intelligence, and digital payments across some of the world's fastest-growing economies.

Rather than relying solely on US tech giants, this fund gives exposure to businesses shaping how hundreds of millions of consumers interact online throughout China and broader Asia. As internet penetration, middle-class wealth, and AI adoption expand across the region, that structural growth story remains compelling.

Betashares Nasdaq 100 ETF (ASX: NDQ)

Another ASX ETF that could be a top buy and hold pick is the Betashares Nasdaq 100 ETF. It provides investors with exposure to the heavyweights of global innovation.

This includes companies such as Nvidia (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), and Netflix (NASDAQ: NFLX). While best known for its technology tilt, the Nasdaq 100 also includes global consumer brands and platform businesses with enormous pricing power.

The common thread is scale. Many of these companies generate massive free cash flow and reinvest aggressively into research, infrastructure, and new products. Over long periods, that reinvestment has translated into earnings growth that outpaces broader markets.

Betashares Global Defence ETF (ASX: ARMR)

The Betashares Global Defence ETF provides investors with exposure to global defence and security spending.

Its holdings include companies such as Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC), and RTX Corporation (NYSE: RTX). As geopolitical tensions rise and governments commit to long-term military and cybersecurity budgets, defence spending has become less cyclical and more structural.

This fund was recently recommended by analysts at Betashares.

VanEck MSCI International Quality ETF (ASX: QUAL)

The VanEck MSCI International Quality ETF is built around the idea of owning a collection of high-quality companies.

The fund screens for businesses with high returns on equity, stable earnings growth, and low financial leverage. Current holdings include Meta Platforms (NASDAQ: META), Eli Lilly (NYSE: LLY), and Visa (NYSE: V).

These are companies that consistently convert revenue into profit and often dominate their industries. Quality investing does not chase hype. It focuses on balance sheets, margins, and durability. Analysts at VanEck recently recommended this fund.

Vanguard Australian Shares Index ETF (ASX: VAS)

The Vanguard Australian Shares Index ETF may be the most straightforward ETF on this list.

It tracks the broad Australian share market, giving exposure to companies such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and CSL Ltd (ASX: CSL).

Owning this ASX ETF means participating in Australia's banking system, resource exports, healthcare innovation, and consumer economy all at once. It also provides access to the relatively attractive dividend yields that the local market is known for.

The post 5 fantastic ASX ETFs to buy and hold for 10 years appeared first on The Motley Fool Australia.

For me, that means combining structural growth themes, international diversification, and quality businesses.

Right now, three ASX ETFs stand out as a combination I'd feel comfortable allocating serious capital to.

Vanguard FTSE Asia Ex-Japan Shares Index ETF (ASX: VAE)

If you believe the next few decades won't be dominated solely by Western economies, exposure to Asia makes sense.

The VAE ETF gives access to around 1,800 companies across major Asian markets, including China, Taiwan, India, and South Korea. That's meaningful diversification away from Australia's banks and miners, and even away from the US-heavy global indices.

What I like most about this ETF is its exposure to structural growth stories. Taiwan Semiconductor Manufacturing, Tencent, Samsung Electronics, and Alibaba are not small, speculative names. They're large, influential companies embedded in global supply chains and digital ecosystems.

India's growing middle class, Taiwan's semiconductor dominance, and South Korea's advanced manufacturing capabilities all sit inside this one ETF. For a long-term investor, I think that's a powerful mix.

Betashares Global Cybersecurity ETF (ASX: HACK)

Cybersecurity is one of those areas where demand doesn't disappear when the economy slows.

The HACK ETF gives exposure to global stocks focused on protecting data, networks, and digital infrastructure. As governments, corporations, and even households become more connected, the need for security only increases.

I see cybersecurity less as a trend and more as a necessity. It doesn't matter whether we're talking about cloud computing, artificial intelligence, or digital payments. All of it requires protection.

Allocating part of a $50,000 investment to the HACK ETF gives exposure to that long-term theme without trying to pick individual winners. For me, it's a way to add growth potential with a clear structural tailwind.

VanEck MSCI International Quality ETF (ASX: QUAL)

If the VAE ETF gives me regional diversification and the HACK ETF gives me thematic growth, this ETF gives me discipline.

The QUAL ETF screens global stocks based on quality metrics such as high return on equity, stable earnings, and low financial leverage. That means it tilts toward businesses with strong balance sheets and consistent profitability.

Its holdings include global leaders like Nvidia, Apple, Microsoft, and Eli Lilly, but what matters to me isn't just the names. It's the process. The VanEck MSCI International Quality ETF is designed to emphasise companies with durable competitive advantages and financial strength.

Over time, I believe quality tends to outperform, particularly during periods of volatility. That makes the QUAL ETF, in my view, a strong core holding for long-term capital growth.

Foolish Takeaway

If I were investing $50,000 today, I'd want diversification, structural growth exposure, and high-quality businesses all working together.

For me, the Vanguard FTSE Asia Ex-Japan Shares Index ETF, the Betashares Global Cybersecurity ETF, and the VanEck MSCI International Quality ETF tick those boxes. I'd be comfortable building a long-term portfolio around them.

The post Why I would buy these ASX ETFs with $50,000 appeared first on The Motley Fool Australia.

If you are one of them, or are planning to become one, and are looking for investment ideas, then read on.

Listed below are three super ASX exchange traded funds (ETFs) that could be top picks for an SMSF. Here's what you need to know about them:

VanEck MSCI International Quality ETF (ASX: QUAL)

The first ASX ETF that could be a strong fit for an SMSF is the VanEck MSCI International Quality ETF.

This ETF focuses on high-quality global companies with strong balance sheets, consistent earnings, and high returns on capital. Rather than chasing short-term growth, it targets businesses that have proven their ability to perform across economic cycles.

Holdings include stocks such as Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), and Visa (NYSE: V). These businesses operate at global scale and benefit from entrenched positions in their respective markets.

For an SMSF, the VanEck MSCI International Quality ETF can work as a core international holding, offering exposure to global leaders while leaning toward financial strength and durability rather than speculation.

It was recently recommended to investors by the fund manager.

Betashares Global Defence ETF (ASX: ARMR)

Another ASX ETF that may appeal to SMSF investors is the Betashares Global Defence ETF.

This fund provides exposure to global defence companies at a time when government spending in this area is increasing. Geopolitical uncertainty, regional conflicts, and heightened focus on national security have led many countries to commit to higher defence budgets over the long term.

Holdings include companies such as Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC), and RTX Corporation (NYSE: RTX). These businesses often benefit from long-dated government contracts, which can provide revenue visibility.

Overall, the Betashares Global Defence ETF offers exposure to a sector that is less tied to consumer spending and economic cycles, adding diversification to a long-term portfolio.

This fund was recommended by the team at Betashares.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

A final ASX ETF to consider for an SMSF is the Betashares Global Cash Flow Kings ETF.

This fund invests in global companies with strong and consistent free cash flow generation. This focus can be particularly attractive for retirement-focused investors, as cash flow underpins dividends, reinvestment, and balance sheet strength.

Holdings include stocks such as Alphabet (NASDAQ: GOOGL), Costco Wholesale (NASDAQ: COST), and Johnson & Johnson (NYSE: JNJ). These businesses generate significant cash while operating in industries with long-term demand.

The Betashares Global Cash Flow Kings ETF could complement growth-oriented holdings by adding exposure to companies that emphasise financial discipline and sustainable returns. It was also recently recommended by the fund manager.

The post 3 super ASX ETFs to add to your SMSF appeared first on The Motley Fool Australia.

The global share market is home to thousands of businesses, but not all of them will be great ones to own for the long term.

Wouldn't it be good to just own a portfolio of the best ones? That's what the two ASX ETFs I'm going to talk about have constructed – portfolios full of purely high-quality businesses that have a good chance to deliver pleasing returns.

VanEck MSCI International Quality ETF (ASX: QUAL)

Both of the ASX ETFs I'm going to talk about offer fairly similar investment strategies. I have been invested in the QUAL ETF for some time, but I'd happily own units in the other fund (or both).

The QUAL ETF aims to have 300 companies in its portfolio, which are diversified across a range of geographies, sectors, and economies. I like this for the diversification it provides for investors.

VanEck, the provider of this fund, says that investments focusing on companies with quality characteristics have historically delivered outperformance over the long term compared to the global share market benchmark.

The QUAL ETF looks for three fundamentals to decide if a business is high-quality.

First, there's the requirement that they have a high return on equity (ROE). That means they earn a high level of profit for how much money is retained within the business. That demonstrates a high level of profitability and suggests how much the business could make on additional profits retained within the business.

Second, the businesses in the ASX ETF must have stable earnings. In my mind, if earnings aren't going backwards, then it means profit is probably rising, which is a good tailwind for share price growth.

Third, the QUAL ETF's holdings must have low financial leverage. That means the balance sheets are healthy and the ROE hasn't been boosted artificially by utilising a lot of debt.

Unsurprisingly, this has led to its top holdings being names like Meta Platforms, Nvidia, Apple, Microsoft, Eli Lilly, Alphabet, Visa, and ASML.

The investment strategy is clearly working well, with the QUAL ETF delivering a total return per year of 14.8% over the last decade. Time will tell if it can produce further strong returns in the coming years.

Betashares Global Quality Leaders ETF (ASX: QLTY)

There are some differences between the QLTY ETF and the QUAL ETF, which could make the one I'm about to outline seem more appealing in its own way.

The QLTY ETF has only 150 companies in its portfolio, but their weightings are more evenly spread, which, in some ways, makes it more diversified than the QUAL ETF.

This portfolio is also spread across a number of countries, including the US, Japan, the Netherlands, Switzerland, France, Hong Kong, Spain, and the UK. Excitingly, the fund has a double-digit allocation to a number of sectors, including IT, industrials, healthcare, financials, and consumer discretionary.

There are four factors that decide what the QLTY ETF invests in – ROE, debt to capital, earnings stability, and cash flow generation ability. The first three elements are essentially the same as the QUAL ETF, so I won't repeat what they mean. The fourth element – cash flow – means that we want to see earnings translate into cash hitting the bank account.

Since the QLTY ETF's inception in November 2018, it has returned an average of 14.4% per year. I think its future returns are promising, so we'll see how it performs in the coming years, but I'm optimistic.

The post 2 excellent ASX ETFs I rate as buys in February appeared first on The Motley Fool Australia.

The simplest ones track the performance of major indexes such as the S&P/ASX 200 Index (ASX: XJO).

These are called 'passive ETFs' because they simply seek to mirror the performance of an indices, minus fees.

Active ETFs are managed by a professional team that selects the stocks in the portfolio for a higher fee.

Australians invested a net $53 billion into ASX ETFs last year, up 75% on 2024, according to Betashares data.

Given the popularity of ETFs, have you ever wondered which ones other investors are targeting?

We get a clue by looking at the full-year data recently published by the ASX.

The data shows which ETFs have the most funds under management.

This gives an indication as to which ETFs investors have had the most confidence in over the years.

Check them out.

Which ASX ETFs do investors like best?

1. Vanguard Australian Shares Index ETF (ASX: VAS)

ASX VAS has $22.585 billion in funds under management. In 2025, a net $3 billion flowed in.

The VAS ETF tracks the S&P/ASX 300 Index (ASX: XKO), which represents the 300 largest listed companies by market capitalisation.

This includes blue-chip shares like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia Ltd (ASX: CBA), and CSL Ltd (ASX:CSL).

2. Vanguard MSCI Index International Shares ETF (ASX: VGS)

VGS has $14.192 billion in funds under management. The ASX VGS brought in $2.6 billion in new funds last year.

The VGS ETF tracks the MSCI World ex-Australia (with net dividends reinvested) in Australian dollars Index.

ASX VGS gives investors exposure to about 1,300 international shares across 23 nations. US shares dominate the portfolio at 74%.

3. iShares S&P 500 ETF (ASX: IVV)

IVV has $13.11 billion in funds under management. The ASX IVV attracted a net inflow of $1.17 billion in 2025.

ASX IVV tracks the performance of the S&P 500 Index (SP: .INX), which represents the 500 biggest listed companies in the US.

4. BetaShares Australia 200 ETF (ASX: A200)

A200 has $8.88 billion in funds under management. The ASX A200 brought in $2.1 billion in new funds last year.

The BetaShares Australia 200 ETF tracks the ASX 200.

5. VanEck MSCI International Quality ETF (ASX: QUAL)

QUAL ETF has $8.07 billion in funds under management. In 2025, a net $293 million flowed in.

The QUAL ETF tracks the MSCI World ex Australia Quality Index, which encompasses 300 diversified and high-quality companies listed on exchanges in developed markets outside Australia.

The 'quality' component has a specific definition: High return on equity (ROE), earnings stability, and a healthy balance sheet.

6. iShares Core S&P/ASX 200 ETF (ASX: IOZ)

IOZ ETF has $7.798 billion in funds under management. The ASX IOZ brought in $1.1 billion in new funds last year.

The iShares Core S&P/ASX 200 ETF tracks the performance of the ASX 200 Accumulation Index.

This index tracks the ASX 200 but also takes into account the reinvestment of dividends.

7. Betashares NASDAQ 100 ETF (ASX: NDQ)

NDQ ETF has $7.69 billion in funds under management. In 2025, a net $927 million flowed in.

This ETF tracks the NASDAQ-100 Index (NASDAQ: NDX), which represents the 100 largest companies listed on the tech-heavy US NASDAQ.

8. Dimensional Australian Core Equity Trust — Active ETF (ASX: DACE)

This ASX ETF has $6.434 billion in funds under management. In 2025, DACE attracted a net inflow of $293 million.

DACE invests in a portfolio of ASX shares selected by Dimensional analysts.

9. Magellan Global Fund – Open Class Units – Active ETF (ASX: MGOC)

MGOC has $6.372 billion in funds under management. This ETF had a net outflow of $1.3 billion in 2025.

MGOC ETF invests in 20 to 40 stocks that the Magellan team considers best in their class.

10. Vanguard US Total Market Shares Index ETF (ASX: VTS)

VTS ETF has $6.361 billion in funds under management. In 2025, investors ploughed an extra $377 million net into this ETF.

The VTS ETF tracks the CRSP US Total Market Index.

This gives investors exposure to more than 3,700 US-listed companies.

The post 10 most popular ASX ETFs on the market today appeared first on The Motley Fool Australia.

Compounding is a very powerful financial force that helps grow a number into a much larger figure.

If $100 grew at an average of 10% per year for ten years, it'd be understandable to think it'd be just a little over $200. It actually comes to $259, a rise of 159%. By investing in businesses that are growing at a good pace, we're more likely to see great results ourselves.

I'm a fan of the below names for the long-term.

Tuas Ltd (ASX: TUA)

Tuas hasn't been operating in Singapore that long, yet it has already become one of the main challengers in the Asian country's telecommunications sector.

At the recent AGM update, the company revealed continued strong progress with mobile user growth of 20% to 1.34 million. It's winning customers thanks to its value offerings.

I'm expecting the business to continue gaining market share, particularly once its acquisition of competitor M1 is completed. Broadband could also become a useful contributor if the company can reach a meaningful market share.

As its scale increases, I'm predicting the company's profit margins will increase thanks to operating leverage.

I'm hoping the ASX share will look to expand beyond Singapore in the years ahead, expanding its total addressable market.

VanEck MSCI International Quality ETF (ASX: QUAL)

Over longer time periods, I think it's the highest quality businesses that will outperform and rise to the top.

This exchange-traded fund (ETF) gives Aussies an easy way to invest in a portfolio of the best businesses in the world.

It has 300 positions in the portfolio from a number of countries including the US, Switzerland, the UK, Japan, the Netherlands, Germany, Denmark, Canada, France, Sweden and more.

The QUAL ETF is well-diversified, in my opinion, as the portfolio is also spread across a number of sectors including IT, healthcare, industrials, communication services and financial services.

The most important part is how it picks the highest-quality companies for its portfolio. Companies involved have a high return on equity (ROE), earnings stability and low financial leverage. This is a powerful combination, in my view.

Over the past five years, the QUAL ETF has returned an average of 15.5% per year. While I'm not expecting it to do as well as that going forward, I think its characteristics are highly effective and likely to unlock further good returns for investors.

I believe this is a very good investment to help investors just invest in the great businesses rather than the entire global share market.

The post 2 incredible ASX shares to buy in February appeared first on The Motley Fool Australia.

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.