Broad index exchange traded funds (ETFs) tend to reflect where the market is today. More targeted ETFs can tilt towards where growth and returns may come from over the next decade.

Here are three ASX ETFs that offer that potential and were recently recommended by the team at BetaShares:

BetaShares Nasdaq 100 ETF (ASX: NDQ)

The first ASX ETF that could be a market-beater is the BetaShares Nasdaq 100 ETF.

This fund leans into companies that are shaping consumer behaviour and digital infrastructure. It is less about the overall economy and more about where innovation is happening at scale.

Its holdings include companies such as Netflix (NASDAQ: NFLX), Adobe (NASDAQ: ADBE), and Tesla (NASDAQ: TSLA).

Adobe is a good example of how these businesses evolve over time. It has transitioned from one-off software sales to a subscription-based model, creating recurring revenue and improving margins. That ability to adapt is a common feature across many Nasdaq leaders.

With technology continuing to influence how industries operate, the BetaShares Nasdaq 100 ETF could be an ETF to hold for the long term.

BetaShares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

Another ASX ETF to look at is the BetaShares Global Robotics and Artificial Intelligence ETF.

This ETF focuses on automation, which is a theme that is becoming more important as companies look to improve productivity and reduce reliance on labour.

Its holdings include companies such as Fanuc Corporation (TYO: 6954), Intuitive Surgical (NASDAQ: ISRG), and Keyence Corporation.

Keyence stands out for its high-margin business model. It develops sensors and automation equipment used in manufacturing, with a strong focus on efficiency and precision. Its products are embedded in production processes, which can make demand more resilient over time.

As automation expands across industries, the BetaShares Global Robotics and Artificial Intelligence ETF could be destined to outperform over the long term.

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

A final ASX ETF worth considering for the long term is the BetaShares Asia Technology Tigers ETF.

This ETF provides exposure to large technology companies across Asia, where digital adoption continues to accelerate.

Its holdings include companies such as Meituan (SEHK: 3690), PDD Holdings (NASDAQ: PDD), and Samsung Electronics.

Meituan is an interesting one. It operates a platform that connects consumers to services such as food delivery and local retail, building scale through network effects. Its growth reflects how digital ecosystems are developing differently across Asia.

With innovation and consumption trends continuing to evolve in the region, the BetaShares Asia Technology Tigers ETF could be a top long-term pick.

The post 3 ASX ETFs with market-beating potential over the next 10 years appeared first on The Motley Fool Australia.

Yet history shows that wealth is usually built by backing the right assets and then giving them time to work, not by constantly tweaking a portfolio.

If your goal is to invest once, stay invested, and let global growth do the heavy lifting over the next decade, exchange-traded funds (ETFs) are hard to beat. They offer portfolio diversification, exposure to powerful structural trends, and far less stress than trying to pick individual winners.

With that in mind, here are three ASX ETFs that could be top buys in 2026 and worth holding through to at least 2036.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The Betashares Asia Technology Tigers ETF gives investors access to some of the most influential technology companies across Asia, excluding Japan. These are businesses powering everything from ecommerce and digital payments to semiconductors and social media across fast-growing economies.

Key holdings include companies such as WeChat owner Tencent Holdings (SEHK: 700), chip giant Taiwan Semiconductor Manufacturing Company (NYSE: TSM), Temu owner PDD Holdings (NASDAQ: PDD), and ecommerce leader Alibaba Group (NYSE: BABA).

While Asian tech stocks can be volatile in the short term, the long-term opportunity is compelling and underpinned by rising middle classes, accelerating digital adoption, and ongoing innovation.

This fund was recently recommended by analysts at Betashares.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF is one of the simplest ways to invest in many of the world's highest-quality growth companies. It tracks the Nasdaq 100 Index, which is home to global leaders in technology, consumer services, and healthcare.

While the Magnificent Seven often dominate headlines, the Betashares Nasdaq 100 ETF also provides exposure to businesses beyond that group. This includes stocks like Adobe (NASDAQ: ADBE), Intuit (NASDAQ: INTU), Starbucks (NASDAQ: SBUX), and Costco Wholesale (NASDAQ: COST).

Over a 10-year horizon, continued investment in artificial intelligence, cloud computing, and digital services could help the Magnificent Seven and these businesses compound earnings well into the 2030s.

Betashares India Quality ETF (ASX: IIND)

The Betashares India Quality ETF offers a different kind of long-term opportunity. Rather than focusing purely on technology, it targets high-quality Indian stocks with strong balance sheets, sustainable earnings, and competitive advantages.

India is forecast to be one of the fastest-growing major economies over the next decade, driven by favourable demographics, infrastructure investment, and a rapidly expanding middle class.

The Betashares India Quality ETF provides exposure to this growth through a diversified portfolio of businesses across financials, consumer sectors, and industrials.

For investors looking to diversify beyond developed markets, this fund adds an attractive growth engine to a long-term portfolio. It was recently recommended by analysts at Betashares.

The post The best ASX ETFs to buy in 2026 and hold until at least 2036 appeared first on The Motley Fool Australia.

But don't worry if you're not a fan of stock-picking. That's because exchange traded funds (ETFs) are here to save the day by offering simply access to large groups of stocks in one fell swoop.

With that in mind, here are three ASX ETFs that I would buy for the long term:

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF offers investors exposure to the top 100 non-financial stocks listed on the Nasdaq exchange.

This effectively means a concentrated basket of the world's most innovative technology leaders. Inside the ASX ETF, you will find giants such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA), along with rising players like Adobe (NASDAQ: ADBE) and Broadcom (NASDAQ: AVGO).

The Nasdaq 100 has historically outperformed most global indices thanks to its tilt toward fast-growing industries like cloud computing, artificial intelligence, consumer tech, and semiconductors. And with AI now driving a generational infrastructure buildout, many of the Betashares Nasdaq 100 ETF's largest holdings remain central to that global transformation.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The Betashares Asia Technology Tigers ETF targets some of the most influential and fast-growing technology companies across China, Taiwan, and South Korea. Key holdings include Tencent Holdings (SEHK: 700), SK Hynix (KRX: 000660), Alibaba Group (NYSE: BABA), Samsung Electronics (KRX: 005930), Taiwan Semiconductor Manufacturing Co. (NYSE: TSM), and PDD Holdings (NASDAQ: PDD).

These companies sit at the heart of global megatrends like e-commerce, artificial intelligence, social media, and semiconductor manufacturing. Taiwan Semiconductor, for example, produces the world's most advanced chips and plays a crucial role in powering everything from smartphones to autonomous vehicles. Tencent and Alibaba, meanwhile, dominate entertainment, cloud, and digital payments across Asia.

Betashares Global Cybersecurity ETF (ASX: HACK)

Cybersecurity has become one of the most essential industries in the digital economy, and the Betashares Global Cybersecurity ETF provides simple access to the world leaders in the space.

Its portfolio includes CrowdStrike Holdings (NASDAQ: CRWD), Palo Alto Networks (NASDAQ: PANW), and Fortinet (NASDAQ: FTNT). These are companies using advanced AI-powered tools to protect governments, corporations, and consumers from increasingly complex cyber threats.

One standout holding is CrowdStrike. The company's Falcon platform is widely considered one of the most advanced security solutions available, capable of detecting threats in real time through machine learning. With cyberattacks rising globally and businesses moving more systems into the cloud, cybersecurity spending is expected to grow steadily for years to come.

The post 3 ASX ETFs I'd buy right now to build wealth appeared first on The Motley Fool Australia.

Let's see what makes them potentially top picks for Aussie investors with money to put into the share market:

BetaShares Cloud Computing ETF (ASX: CLDD)

Cloud computing has been called one of the most transformative trends of the 21st century and it is still only partway through its story. The BetaShares Cloud Computing ETF gives investors access to stocks powering the world's digital backbone.

Its holdings include Shopify (NASDAQ: SHOP), ServiceNow (NYSE: NOW), Amazon (NASDAQ: AMZN), Oracle (NYSE: ORCL), and Microsoft (NASDAQ: MSFT). These are all leaders in cloud infrastructure, enterprise software, and online services.

ServiceNow's software helps large organisations automate workflows and reduce inefficiencies, becoming an indispensable tool for corporations undergoing digital transformation. With its customer base growing across government and enterprise sectors, the company is well-positioned to capture more of the global shift toward automation and cloud-based operations.

Analysts at Betashares recently named the BetaShares Cloud Computing ETF as one to consider buying.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

If you want a focus on quality, the VanEck Morningstar Wide Moat ETF is hard to beat.

This fund invests in US-listed stocks that have wide economic moats. These are competitive advantages that make them difficult to disrupt. Holdings include names such as Adobe (NASDAQ: ADBE), Nike (NYSE: NKE), Walt Disney (NYSE: DIS), and Applied Materials (NASDAQ: AMAT).

With respect to Adobe, its subscription-based software suite, which includes Photoshop, Acrobat, and its growing Experience Platform, continues to deliver reliable recurring revenue and robust profit margins. Its entrenched market position, coupled with expanding AI integration, makes it a textbook example of what wide moat investing is all about.

BetaShares India Quality ETF (ASX: IIND)

Finally, India represents one of the most exciting long-term growth stories on the planet.

The BetaShares India Quality ETF provides exposure to high-quality Indian stocks benefiting from rapid urbanisation, digital transformation, and a rising middle class. Its portfolio includes leaders such as Infosys (NYSE: INFY), Reliance Industries (NSEI: RELIANCE), Tata Consultancy Services (NSEI: TCS), and Bharti Airtel.

A standout here is Reliance Industries, one of India's largest conglomerates. Its operations span energy, retail, and telecommunications. These are sectors that are all expanding alongside the country's economy. Reliance's pivot toward digital services and green energy could make it a long-term winner as India continues modernising.

It was also recently named as one to consider buying by the team at Betashares.

The post Where to invest $10,000 in ASX ETFs next week appeared first on The Motley Fool Australia.

This index fund has soared in popularity amongst ASX investors in recent years, thanks to its future-facing composition and tech-heavy exposure.

As my Fool colleague Bronwyn reported late last month, NDQ is one of the most sought-after ASX ETFs on our market. It is currently the seventh-most popular fund by funds under management. We also recently covered how NDQ was the fourth most-bought fund for customers using the Stake brokerage platform over the second half of the 2025 financial year.

The Betashares Nasdaq 100 ETF is a relatively simple index fund, covering the largest non-financial stocks listed on the US' Nasdaq stock exchange. The Nasdaq is known for housing most of America's best-known tech stocks. That includes all of the famous 'Magnificent 7', as well as companies like Airbnb, Netflix, Adobe and PayPal.

It's not just a tech ETF, though. Some other names that can be found in NDQ's holdings include Starbucks, Pepsico, Monster Beverage and Cadbury-owner Mondelez International.

But let's get down to the numbers.

How much would $10,000 invested in the NDQ ETF in 2020 be worth today?

Five years ago, on 5 November 2020, NDQ's ASX units were being priced at $27.59 each. Today, at the time of writing anyway, those same units are worth $57.85 each. That's a gain worth 110%. Or approximately 15.95% per annum.

Not bad. This means investors would have more than doubled their capital investment alone, with that $10,000 turning into $20,968 or so today. Most of these gains came from simple stock price appreciation. However, some would also have come from currency returns too.

Although NDQ is an ASX-listed ETF, its portfolio is priced in US dollars. That means that its returns need to be converted from US dollars to Australian dollars before we can assess them. The Australian dollar is almost 10% lower today against the greenback than it was five years ago. As a result, his would have provided our returns with an additional (and meaningful) boost.

However, that's not where the story ends. As Betashares NASDAQ 100 ETF investors would know, this fund also pays out periodic dividend distributions.

Since late 2020 and today, investors have enjoyed around $4.32 in dividend distributions per NDQ unit. That would see our investor bank another $1,636 in returns over the five-year period.

As such, we can conclude that a $10,000 investment in the ASX's NDQ ETF would be worth a total of roughly $22,603.50 right now. Again, not bad.

The post $10,000 invested in the NDQ ETF 5 years ago is now worth… appeared first on The Motley Fool Australia.

For many Australians, life is simply too busy, yet the goal remains the same: to grow wealth steadily over time without constant effort.

That's where exchange-traded funds (ETFs) come in. They offer an easy way to invest in world-class stocks in a single trade. And for time-poor investors, the right ETFs can keep compounding quietly in the background, even if you only top them up once a year.

Here are three ASX ETFs I'd happily buy and hold on that schedule.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The VanEck Morningstar Wide Moat ETF could be a standout choice for investors who want quality without complication. It invests in US stocks that analysts believe possess "wide moats." These are durable competitive advantages that make it difficult for rivals to compete.

This means you are not just buying the biggest stocks; you are buying the most resilient ones. The fund's portfolio currently includes leading names such as Adobe (NASDAQ: ADBE), Nike (NYSE: NKE), and Walt Disney (NYSE: DIS). These are businesses with strong brands, loyal customers, and sustainable pricing power.

Because the ASX ETF is actively rebalanced based on valuation and competitive strength, investors don't need to worry about timing the market or picking individual winners. For time-poor investors seeking high-quality, long-term compounding from globally recognised businesses, it is a simple and powerful option.

Betashares Global Quality Leaders ETF (ASX: QLTY)

If you could only buy one global ETF each year, the Betashares Global Quality Leaders ETF would be near the top of my list. It invests in some of the world's strongest and most consistently profitable companies.

The fund's holdings include Microsoft (NASDAQ: MSFT), Visa (NYSE: V), Nestle (SWX: NESN), and Johnson & Johnson (NYSE: JNJ). These are companies known for their stability, earnings power, and global reach.

For investors with limited time, the Betashares Global Quality Leaders ETF provides a sleep well at night approach to global investing. It quietly goes about its business, diversifying across industries and regions, focusing on high-quality names, and allowing compounding to work steadily in the background.

Vanguard Australian Shares Index ETF (ASX: VAS)

Closer to home, the Vanguard Australian Shares Index ETF offers simple exposure to the ASX 300, capturing around 90% of the Australian share market's total value.

That means instant diversification across major sectors like banking, mining, healthcare, and retail, all in one investment. Its top holdings include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Wesfarmers Ltd (ASX: WES), giving investors access to the backbone of the Australian economy.

For investors who only want to invest once a year, it could be a great way to capture the long-term performance of the local market without the stress of picking individual stocks.

The post 3 ASX ETFs I'd buy if I could only invest once a year appeared first on The Motley Fool Australia.

Exchange-traded funds (ETFs) provide a simple answer.

With one trade, you can gain exposure to a diversified basket of shares, reducing the risk of putting all your eggs in one basket.

But where to start? Here are three ASX ETFs that could be excellent building blocks for new investors in 2026 and beyond.

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF is a popular option and for good reason. It gives investors exposure to 500 of the largest listed stocks in the United States. These include global giants like Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), and Walmart (NYSE: WMT).

The US market has been a long-term powerhouse for wealth creation, and many of the businesses in the iShares S&P 500 ETF are global leaders in their industries. For beginners, this ASX ETF provides a low-cost, convenient way to tap into US growth without needing to pick individual stocks.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

For investors wanting global reach beyond the US, the Vanguard MSCI Index International Shares ETF is a strong choice. This ASX ETF holds more than 1,200 stocks across developed markets, giving you exposure to European, Japanese, and Canadian stocks alongside US names.

Current holdings include Nestle (SWX: NESN), HSBC (LSE: HSBA), SAP SE (FRA: SAP), Toyota Motor Corporation (TYO: 7203), and Royal Bank of Canada (TSX: RY). By spreading your holdings across multiple regions, the Vanguard MSCI Index International Shares ETF helps smooth out the risks of being tied to any single market and offers instant global diversification.

Betashares Global Quality Leaders ETF (ASX: QLTY)

The Betashares Global Quality Leaders ETF could be another great option for beginners. It focuses on quality rather than quantity. It invests in around 150 global stocks that score highly on measures like profitability, strong balance sheets, and earnings stability.

Holdings include names like payments giant Mastercard (NYSE: MA), design leader Adobe (NASDAQ: ADBE), luxury products owner Hermes International, and sleep disorder treatment company ResMed Inc (ASX: RMD). These businesses tend to be more resilient through economic cycles, which can give new investors confidence that they are buying into companies with long-term staying power.

This fund was recently named as one to consider buying by the team at Betashares.

The post The best ASX ETFs for new investors in 2026 appeared first on The Motley Fool Australia.

Investments that offer both growth and income potential are usually lucrative ones. A company, or set of companies in the case of an ETF, that can afford to pay out substantial income whilst consistently growing its earnings and profits is often a sign of a potentially hot investment.

One such investment is in my own ASX share portfolio, and is one that I have held for a number of years now. Ever since my first purchase, this ASX ETF has delivered both growth and income in spaces. As such, I have no plans to ever sell this high-flying ETF.

It is none other than the VanEck Morningstar Wide Moat ETF (ASX: MOAT).

The VanEck Wide Moat ETF is a fund that is designed to mimic the investing philosophy of the legendary Warren Buffett.

Buffett has long touted the benefits of investing in companies with 'wide economic moats'. A moat is a concept Buffett himself coined a while ago. It refers to an intrinsic competitive advantage a company can possess, which helps it stay ahead of its competition, in the same way a castle's moat kept out intruders centuries ago.

An ASX ETF to buy for growth and income?

There are a few forms that this kind of moat can take. Some examples include a strong and trusted brand, a cost advantage over competitors, or providing a good or service that customers find difficult to avoid paying for.

The VanEck Wide Moat ETF holds a portfolio of US stocks that are selected based on their perceived possession of at least one of these moats.

We can see this in action by looking at some of this ASX ETF's holdings. As of 31 August, these included the likes of Alphabet, Boeing, Nike, Disney, Adobe, Caterpillar, Microsoft and Clorox.

It's not hard to see why these names appear in MOAT's holdings. Microsoft, for example, provides products like Office, Teams and Windows that are indispensable in modern workplaces. Disney has some of the best intellectual property in entertainment, while Nike has one of the world's most beloved brands.

This strategy has worked exceptionally well for this ASX ETF. Since its inception in mid-2015, MOAT units have appreciated by about 210% (at recent pricing), which works out to be roughly 12% per annum.

In addition, its investors have also routinely enjoyed substantial dividend income from this ETF. MOAT tends to pay out just one dividend distribution every year. But it's often a substantial one. To illustrate, investors have just banked an annual payout worth $7.56 per unit. That gives this ASX ETF a trailing yield of about 6.1%.

If we combine both growth and income, MOAT investors have enjoyed an average return of 15.05% per annum since inception (again, as of 31 August).

Past performance is never a guarantee of future returns, of course. But even so, this track record, I believe, speaks for itself.

The post I own this ASX ETF for both growth and dividend income appeared first on The Motley Fool Australia.

For Australians, a handful of ASX ETFs stand out as strong buy-and-hold options, particularly for those seeking long-term growth.

With that in mind, here are three ETFs that could be compelling additions to a portfolio right now.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF gives investors exposure to 100 of the largest non-financial stocks on the famous Nasdaq exchange.

That means instant ownership of giants like Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA), as well as other leaders in biotech, e-commerce, and entertainment.

What makes the Betashares Nasdaq 100 ETF attractive is its positioning in some of the most innovative sectors of the global economy, including artificial intelligence, cloud computing, and digital media. While U.S. tech stocks can be volatile, their long-term record of wealth creation arguably makes this ASX ETF a compelling growth play for Aussie investors.

Betashares India Quality ETF (ASX: IIND)

The Betashares India Quality ETF provides investors with easy access to one of the fastest-growing major economies in the world. It invests in 30 of India's highest-quality stocks, selected for strong profitability, low leverage, and earnings stability.

Its holdings include Infosys Ltd (NYSE: INFY), a global leader in IT services, Bharti Airtel (NSE: BHARTIARTL), a major telecom operator, and Hindustan Unilever (NSE: HINDUNILVR), a consumer goods powerhouse.

With India's expanding middle class and increasing digitalisation, these stocks and this ASX ETF are well placed to benefit from structural growth drivers that could play out over decades. It was recently recommended as one to consider buying by Betashares.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

Finally, the VanEck Morningstar Wide Moat ETF is built on Warren Buffett's philosophy of investing in companies with fair valuations and strong competitive moats — advantages that protect their profits and market share.

Its portfolio currently includes names like Adobe (NASDAQ: ADBE), a global software giant, Danaher Corporation (NYSE: DHR), a leader in life sciences and diagnostics, and Applied Materials Inc (NASDAQ: AMAT), a key player in the semiconductor industry. These stocks operate in industries with high barriers to entry and have the brand strength or technology edge to fend off competitors.

In light of this, the VanEck Morningstar Wide Moat ETF appears well-placed to continue delivering strong returns for investors over the next decade, which makes this ASX ETF an attractive option in the current market.

The post Why NDQ ETF and these ASX ETFs could be strong buys appeared first on The Motley Fool Australia.

That's why exchange-traded funds (ETFs) are such a great option for beginners.

They offer instant diversification, exposure to high-quality businesses, and a simple way to start an investment journey.

But which funds could be top picks for a beginner? Let's take a look at three ASX ETFs that could be perfect for anyone taking their first steps in the share market.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The first ASX ETF for investors to look at is the Betashares Nasdaq 100 ETF. This hugely popular ETF gives investors exposure to some of the most innovative and valuable stocks in the world. Its portfolio includes U.S. technology leaders such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA).

For beginners, the Betashares Nasdaq 100 ETF is appealing because it captures the growth potential of sectors like cloud computing, artificial intelligence, and digital payments in a single trade. Rather than trying to pick which U.S. tech stock will be the winner, you can own them all. And that's never a bad idea!

Betashares Global Quality Leaders ETF (ASX: QLTY)

Another ASX ETF for beginners to consider is the Betashares Global Quality Leaders ETF. It focuses on stocks with strong balance sheets, stable earnings, and high returns on equity.

Essentially, this means it invests only in the world's best-run businesses. This includes global names such as Adobe (NASDAQ: ADBE), Roche Holding (SWX: ROG), and Procter & Gamble (NYSE: PG).

For new investors, the Betashares Global Quality Leaders ETF provides exposure to a broad mix of industries across different countries, reducing risk while targeting consistent long-term growth. It was recently named as a fund to consider buying by the team at Betashares.

Vanguard Australian Shares Index ETF (ASX: VAS)

Finally, the Vanguard Australian Shares Index ETF is one of the most popular ETFs on the ASX, and for good reason.

It tracks the top 300 shares in Australia, giving investors exposure to household names like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Woolworths Group Ltd (ASX: WOW).

For beginners, the Vanguard Australian Shares Index ETF is a simple way to build a strong foundation in the local market. It is low cost, widely diversified, and designed to mirror the performance of the broader Australian economy.

The post 3 perfect ASX ETFs for beginners appeared first on The Motley Fool Australia.

But the good news is, with just $1,000, you can begin building a smart, diversified portfolio.

And better yet, you don't need to be an expert. The key is starting with a solid foundation and then gradually building from there.

Start with just two ASX ETFs

For investors new to the market, the easiest and most effective strategy is to begin with is ASX exchange-traded funds (ETFs) that give you broad exposure to both Australian and global equities.

In this case, a combination of the Vanguard Australian Shares Index ETF (ASX: VAS) and Betashares Nasdaq 100 ETF (ASX: NDQ) could be a powerful starting point.

Vanguard Australian Shares Index ETF

The Vanguard Australian Shares Index ETF is one of the most popular ETFs on the ASX. It provides exposure to the largest 300 Australian shares, offering an easy way to invest in the local share market in one hit.

It includes heavyweights like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA) and Cochlear Ltd (ASX: COH) — but also holds a long tail of smaller, quality names such as REA Group Ltd (ASX: REA) and Breville Group Ltd (ASX: BRG).

This broad mix gives you diversification, stability, and regular income via dividends. It could be a great backbone for any portfolio.

Betashares Nasdaq 100 ETF

To balance out your Aussie exposure, the Betashares Nasdaq 100 ETF offers something different: access to the 100 largest non-financial companies listed on the Nasdaq in the U.S.

Yes, it includes the giants — Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN) — but also features exciting names that don't often make the headlines here in Australia, such as Intuit (NASDAQ: INTU), Adobe (NASDAQ: ADBE), Starbucks (NASDAQ: SBUX), and Costco (NASDAQ: COST).

These are high-quality, globally dominant businesses in technology, consumer staples, and healthcare — many of which have grown earnings consistently for decades.

Build steadily with regular contributions

Once you've allocated your initial $1,000 — perhaps an even split of $500 into each ASX ETF — the next step is to build the habit of regular investing.

Even modest monthly contributions of $200 to $500 can compound significantly over time, especially when invested in diversified the two ETFs above.

This approach helps smooth out volatility and lets you benefit from dollar-cost averaging — where you buy more units when prices are low and fewer when prices are high.

Add growth stocks over time

As your confidence grows and your ETF portfolio takes shape, you might consider branching out into individual shares with the potential to deliver outsized returns over time.

Think companies like Pro Medicus Ltd (ASX: PME), a medical imaging business with high margins and global customers, WiseTech Global Ltd (ASX: WTC), a logistics software leader with enormous scale, Temple & Webster Group Ltd (ASX: TPW), a fast-growing online furniture retailer, and CSL Ltd (ASX: CSL), a global biotech giant with a long history of growth and innovation.

These are higher-growth businesses that could compound wealth faster than the broader market. However, they also carry more risk, which is why it is important to ensure they complement — not replace — your diversified core holdings.

Foolish takeaway

You don't need a big bank balance to start investing on the ASX. With just $1,000 and the right strategy, you can begin building a portfolio that's diversified, growth-oriented, and income-generating.

Start with ASX ETFs, commit to regular contributions, and then gradually add select individual shares. With patience and discipline, your portfolio could grow into something truly meaningful over the long term — no matter how modest the beginning.

The post How to start your ASX share portfolio with just $1,000 appeared first on The Motley Fool Australia.

And while there is a lot of hype around AI, it is for good reason.

AI is already driving revenue growth across multiple industries including cloud computing, software, semiconductors, healthcare, and digital advertising. And revenue is only going one way in the industry – up.

For investors who want exposure to this theme without trying to pick individual stocks, one ASX exchange-traded fund (ETF) stands out: the BetaShares Nasdaq 100 ETF (ASX: NDQ).

What is the NDQ ETF?

The BetaShares Nasdaq 100 ETF aims to track the performance of the Nasdaq-100 Index.

This index is made up of 100 of the largest non-financial companies listed on the Nasdaq Stock Exchange, many of which are at the forefront of global technology and innovation.

Top holdings in the index include tech leaders such as Nvidia (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOGL), Meta Platforms (NASDAQ: META), and Adobe (NASDAQ: ADBE).

While these companies aren't necessarily pure-play AI stocks, they are deeply embedded in the AI ecosystem — supplying the chips, software, platforms, and cloud infrastructure that are enabling the AI revolution.

Why AI could drive the next leg of growth

The earnings story is already playing out. Nvidia recently reported a blowout result, powered by soaring demand for its AI-optimised chips.

Microsoft and Amazon are rapidly integrating AI capabilities across their cloud platforms, while Alphabet is embedding generative AI tools into its search, advertising, and productivity businesses.

And with AI forecast to evolve into a multi-trillion-dollar global industry by the early 2030s, the companies positioned to benefit most are the ones already operating at global scale. These happen to be the companies at the top of the Nasdaq-100 Index, giving this ASX ETF a structural tailwind as the AI theme matures.

Foolish takeaway

AI is far more than a trend — it is a structural shift that will likely reshape global business and productivity for decades to come.

The BetaShares Nasdaq 100 ETF provides investors with a super easy way to participate in that transformation via some of the world's most innovative and profitable companies.

For those seeking long-term growth potential, this fund is worth serious consideration as a core holding for exposure to the AI boom through a trusted, diversified vehicle.

The post This fantastic ASX ETF could win big from the AI boom over the next decade appeared first on The Motley Fool Australia.

So much so, it has gained around 10% since 22 April.

For many investors, that kind of surge would normally signal that it is too late to invest. But is that actually the case? Let's find out.

A strategy built to uncover value

The VanEck Morningstar Wide Moat ETF isn't your typical fund. It holds a curated portfolio of US-listed companies that analysts believe possess sustainable competitive advantages (wide economic moats) and are trading at discounts to their fair value.

What sets this ASX ETF apart is that it rebalances regularly, meaning it adjusts its holdings to stay aligned with this strategy. Companies that become too expensive or lose their strategic edge are replaced — keeping the portfolio focused on quality businesses trading at attractive prices.

This process ensures the fund consistently leans into value with discipline, regardless of short-term market momentum.

Still value beneath the surface

Despite the recent rally, many of the MOAT ETF's key holdings are still trading well below their 52-week highs.

This includes names like Nike, Adobe, Merck, Huntington Ingalls, Walt Disney, and Constellation Brands.

For example, Adobe has been expanding into AI and marketing automation but is still working through market scepticism around its valuation. Nike remains a global powerhouse but has been held back by trade tariff concerns. Meanwhile, Huntington Ingalls, a leader in defence and shipbuilding, is quietly benefiting from rising global security spending but its shares have been left behind.

This mix of underappreciated quality names gives this ASX ETF continued upside potential — even after recent gains.

A discount that might not last

It is also worth noting that the MOAT ETF is currently trading at a slight discount to its net asset value (NAV) — around -1.17%, or $1.42 below fair value.

While only small, this discount suggests investors today are paying less than the market value of the underlying companies, offering a margin of safety that's rare after a sharp price move. For long-term investors, this kind of opportunity — strong momentum combined with a valuation buffer — doesn't come around often.

Foolish takeaway

The MOAT ETF's recent 10% surge might look bad on paper for buyers, but dig a little deeper and you'll find a portfolio still full of undervalued, high-quality companies with competitive moats and long-term tailwinds.

In light of this, it may not be too late to buy this popular fund.

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But three of the best could be named below. Here's what you need to know about them:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

One of the best ASX ETFs out there is arguably the BetaShares NASDAQ 100 ETF.

This hugely popular fund aims to track the performance of the Nasdaq-100 Index (before fees and expenses). The Nasdaq-100 is home to 100 of the largest non-financial companies listed on the Nasdaq market.

This includes many companies that are at the forefront of the new economy such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA).

The fund manager, Betashares, highlights that its strong focus on technology means that "NDQ provides diversified exposure to a high-growth potential sector that is under-represented in the Australian sharemarket."

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another ASX ETF to unwrap this Christmas is the VanEck Vectors Morningstar Wide Moat ETF.

If you are inspired by Warren Buffett and his style of investing, then this fund could be the one for you.

That's because this Buffett-inspired ETF gives investors access to a group of companies that have fair valuations and sustainable competitive advantages or wide moats.

These are the qualities that the Oracle of Omaha will often look for when he is finding investments for Berkshire Hathaway (NYSE: BRK.B). At present, the fund is invested across ~50 shares including the likes of Adobe (NASDAQ: ADBE), Nike (NYSE: NKE), and Walt Disney (NYSE: DIS).

This focus on sustainable competitive advantages appears to work. Over the past 10 years, the index this fund tracks has generated an average return of 16.7% per annum.

Betashares Global Quality Leaders ETF (ASX: QLTY)

Finally, a third ASX ETF that would be great to unwrap at Christmas is the Betashares Global Quality Leaders ETF.

This fund is home to the highest quality companies in the world. To qualify, these companies need to score highly on metrics such as returns on equity and profitability, low leverage, and earnings stability.

There are currently approximately 150 shares included in the future. These shares come from a range of geographies and global sectors, many of which are under-represented in the Australian share market.

Betashares' recently recommended the ETF as one for investors to buy. It notes that "a focus on quality, defence, and patience can pay off for investors."

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Although we've had a bit of a wild week or two on the ASX, the fact remains that the ASX 200 Index is still very close to its recent all-time highs. The index last touched a new record in the middle of last month – 8,384.5 points. At today's pricing, the ASX 200 remains around 2% off of that all-time high.

As such, one wouldn't exactly describe today's stock market as a playground for value investors.

But I still think there are ASX shares and exchange-traded funds (ETFs) out there that are worth investing in, even when the market is sitting near these all-time highs.

Here are two of them, specifically ASX ETFs.

2 ASX shares that I'll be adding to my ASX 200 portfolio

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

First up is the VanEck Wide Moat ETF. This ETF has been one of my favourite ASX investments for a long time, and I am hoping to add to my existing position soon.

This ETF isn't an index fund that blindly tracks an entire market. Instead, it is an actively managed fund that holds a relatively concentrated portfolio of American stocks. These stocks are selected on their perceived possession of a wide economic moat.

An economic moat is a term first used by legendary investor Warren Buffett. It refers to a durable, intrinsic competitive advantage that a company can possess, which helps it stay ahead of its competition.

This could be a powerful brand, a low-cost advantage, or producing a product or service that customers find difficult to avoid using.

Buffett has long touted the value of investing in stocks that possess these kinds of moats. And that's exactly what this ETF aims to do. In its current portfolio, MOAT includes American companies like Walt Disney, Campbell Soup Co, Adobe, and Starbucks.    

This ETF's strategy has proven effective in recent years. As of 31 October, the VanEck Wide Moat ETF has returned an average of 14.81% per annum over the past five years. As such, I would be happy to add more of this investment right now.

iShares Global Consumer Staples ETF (ASX: IXI)

Next, we have another ASX ETF, the iShares Global Consumer Staples ETF. Even though the markets are near all-time highs, I would argue that we are still in a very uncertain investing climate. There are significant geopolitical tensions around the world, and we are in the midst of a volatile US election season.

With all this in mind, I think the iShares Consumer Staples ETF is a prudent choice for any portfolio. This is arguably an all-weather investment, thanks to the nature of the stocks this ETF holds. Consumer staples stocks, such as current IXI holdings like Procter & Gamble, Colgate-Palmolive and Coca-Cola, tend to perform well in any economic climate.

I hold this ETF because of this reason, and I would happily invest some more cash to build out my position right now.

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The software industry is fertile ground for investors today. Demand is on a long-term upswing, supported by a steady shift toward online work and entertainment. Many software businesses have more attractive selling models that are becoming increasingly subscription based, in turn stabilizing cash flows. And valuations have declined sharply with the latest bear market.

With those positive factors in mind, let's look at two excellent options for investors seeking exposure to the sector. Read on for a few reasons to like Adobe (NASDAQ: ADBE) and Electronic Arts (NASDAQ: EA) stocks right now.

1. Adobe

Adobe stock has become cheaper this year, partly thanks to a growth slowdown and partly due to worries about its $20 billion acquisition of Figma. The growth hangover won't last forever, and the buyout will likely reward patient investors.

Adobe creates software products for digital creators ranging from students to huge global brands. Its cloud platforms have attracted many more customers this year, even on top of soaring growth in earlier phases of the pandemic. Sales are up to $13.1 billion through the first nine months of the year compared to $11.7 billion a year earlier.

Operating trends might look weaker over the next nine-month period, and Adobe is taking on some extra risk as it incorporates the new Figma business into its cloud platform. But the volatility from these issues should fade, allowing patient shareholders to generate solid returns by simply holding onto this software-as-a-service stock.

2. Electronic Arts

Electronic Arts is a video game developer boasting one of the industry's most dominant content portfolios. From sports franchises to adventure games, casual titles to battle royale brands, EA covers every industry niche and all of the popular monetization models.

That diversity is paying off. Sales in the most recent quarter were up 22% thanks to popularity across brands like FIFA 22 and Apex Legends. EA is also still boosting its earnings at a time when many other digital entertainment specialists are seeing falling profit margins.

That success is a big reason the stock is outperforming peers like Take-Two Interactive (NASDAQ: TTWO). But EA still looks attractive today at a valuation of less than five times sales, one of the cheapest rates investors have seen in the last seven years.

While demand in the video game industry might slow into 2023 as compared to the past few years, the long-term outlook is bright for this business. It is becoming more profitable and steadier, too, thanks to the shift to a subscription-based content model. As a result, investors are likely to see good returns in this software niche over time, especially if they focus on world-class businesses like EA.

Adding EA and Adobe to your portfolio might add volatility in the short term, given the rocky outlook for many tech specialists right now. In exchange for that bumpiness in returns, though, you'll get exposure to some world-class businesses that are almost certain to be posting stronger sales and earnings in five years than investors are seeing today.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Only a handful of companies have reached the trillion dollars in value mark, but that number will likely grow in coming years. As I set out to find companies that could reach a trillion-dollar valuation, I had a few requirements. The companies must have an extremely large addressable market, must have an identifiable moat to build on, and be growing and profitable today. 

The three stocks that stood out to me are Taiwan Semiconductor (NYSE: TSM), Disney (NYSE: DIS), and Adobe (NASDAQ: ADBE). 

Taiwan Semiconductor Manufacturing

There's one chip manufacturer that's more important than any other in the world today, and that's Taiwan Semiconductor Manufacturing. The company is a third-party manufacturer for chip leaders like Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and dozens of other companies designing their own chips. 

Designing a great chip is great, but someone has to make the chip, and that's where Taiwan Semiconductor comes in. 

You can see in the chart below that the company is now trading at just 13.2 times earnings, and has grown revenue and net income by 91.5% and 140.4% respectively in the last three years. 

TSM Market Cap data by YCharts

What's fascinating about the company's place in chip manufacturing is that there's no clear competitor at the bleeding edge of manufacturing. Intel (NASDAQ: INTC) is years behind, GlobalFoundries (NASDAQ: GFS) is much smaller, and AMD (NASDAQ: AMD) has a more integrated business model. For chip companies that don't own fabrication facilities, Taiwan Semiconductor is still the go-to manufacturer if you're designing at the cutting edge. 

Given the company's strong strategic position, technology, growth, and profitability, I think this could be the first of these companies to reach $1 trillion in value. 

Disney

The last five years haven't been quite as smooth sailing at Disney. The company has seen cable connections decline, streaming has been an enormous investment, and the pandemic had a huge effect on both theaters and theme parks. But Disney is positioned for a decade of growth. 

DIS Market Cap data by YCharts

Disney now technically has more subscribers than Netflix (NASDAQ: NFLX) when you add together Disney+, ESPN+, and Hulu. So, it's a leader in next-generation media distribution.

Investors haven't liked the money being spent on streaming, but the payoff may be getting better very soon. Disney announced an advertising tier, but instead of offering a lower-cost version of Disney+ with ads, it is keeping the same $8 per month price but adding advertising, increasing the price to $11 per month if you want no ads.

Disney's ability to create compelling content and then monetize it through what I call a waterfall of businesses -- from the theater to streaming to merchandise to theme parks -- is unmatched in media. The company needs to do well to reach a $1 trillion valuation by 2030, but I think it can get there. 

Adobe

Adobe has long made valuable software for designers, but it's now poised to become the operating system of the design and programming community if it can complete the acquisition of Figma. 

You can see below that Adobe's business of licensing software to creators has been a growth machine over the last decade. But it's creating tools that people use to create assets, not a platform they're using to collaborate on. That's why the acquisition of Figma is a big deal. 

ADBE Revenue (TTM) data by YCharts

You can see above that Adobe currently trades for 28.5 times trailing earnings, and Figma should help with future growth. But for Adobe to become a $1 trillion company, it needs to lean into Figma's multi-user platform to become a real juggernaut. I think it can do that, pulling not only graphic designers but programmers, project managers, and many more into the Figma ecosystem. Don't be surprised if products like Photoshop and Illustrator become add-ons to Figma, not the other way around. 

Now that Adobe has a potential platform solution, the sky is the limit for the company's value. That's why I think this could be a $1 trillion company by the end of the decade. 

Thinking big

There's no guarantee any of these companies will reach the heights of a $1 trillion company, but they all have the foundation needed to get there. If management thinks big, these stocks could be trading near the most valuable companies in the world. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The S&P 500 is down 24% this year, and the stock market hasn't been a great place to be holding your money of late. Investors have been dumping stocks left and right, with many quality companies seeing their valuations plummet as interest rate increases and rising inflation have made people second-guess their investments.

But before you follow suit and decide to dump all of your stocks and hold cash or pivot to bonds, you should consider Warren Buffett's advice, and why getting out of the stock market right now could be a costly mistake.

Buffett believes it's always favorable to remain invested

Warren Buffett isn't a fan of economic projections, or what he refers to as "dancing" in and out of stocks based solely on economic outlooks. And in a Berkshire Hathaway shareholder meeting in 2015, he said that "we think any company that has an economist has one employee too many."

Buffett is an investor who has remained invested for decades, all the while experiencing the effects of inflation, recessions, wars, and no shortage of crashes along the way. He believes that "the risks of being out of the game are huge compared to the risks of being in it." And the game he's referring to -- investing -- is favorable in the long run. Another popular investor, Peter Lynch, agrees with that notion, saying that "people who exit the stock market to avoid a decline are odds-on favorites to miss the next rally."

Given that the stock market has always recovered from every decline, history should serve as an important reminder to investors that there's always light at the end of the tunnel. 

Investors should focus on fundamentals rather than forecasts

The key takeaway for investors is to invest in businesses that will do well in the long run, and to not worry about economic projections or what the experts think will happen. There are too many variables to factor in regarding where the economy may go, and the simpler option is to focus on a business itself.

One example of a company that could make for a great long-term investment is drugmaker AbbVie (NYSE: ABBV), which has solid financials and a path to more growth. Revenue of $56.2 billion last year was 72% higher than the $32.8 billion the company generated in 2018. Profits during that time doubled to $11.5 billion. And over the trailing 12 months, the company has generated free cash flow of more than $22 billion.

AbbVie's acquisition of Botox-maker Allergan a few years ago has diversified its business; Botox cosmetic sales rose 19% in its most recent quarter (ended June 30). Its high-growth products Skyrizi and Rinvoq both generated sales growth in excess of 50% during the quarter and should make up for declines in revenue from top-selling drug Humira, which begins losing exclusivity as early as next year.

Combined with its high-yielding dividend that pays 4.2%, AbbVie is the type of stock that you might expect to perform well in the long run, regardless of the economic situation. Its financials are strong, and the business is well-diversified.

Another stock with strong fundamentals to consider is Adobe (NASDAQ: ADBE). The tech company sells popular software products, including photo-editing program Adobe Photoshop, on a recurring subscription basis. Its products are top of the line and essential to many professionals involved in web design and photography.

However, the stock recently nosedived after announcing lacklustre earnings numbers where sales rose by 13% to $4.4 billion. That's modest growth for a company that earlier this year commanded a hefty price-to-earnings multiple of more than 50 (now it's down to less than 30). Last month, it also announced a seemingly expensive $20 billion acquisition of Figma, a company that focuses on creating web applications for collaborating on web design projects.

With Adobe's stock now near 52-week lows, it could present an attractive buying opportunity for investors. The company may have carved out a new growth avenue for its business, focusing more on collaboration -- while also becoming a cheaper investment. Adobe has generated more than $7 billion in free cash flow over the trailing 12 months, and it is in a solid position to pursue more opportunities as they come up. In the long run, this can be another great stock to buy and hold.

Buying and holding could pay off, now more than ever

AbbVie and Adobe are just two examples of promising growth stocks to own for the long haul, but there are many other options out there that investors can load up on today. While there could still be declines in the months ahead for stocks, there's also the possibility of an eventual rally that could make holding on to your investments a great decision.

As long as you don't need to take the money out, keeping it invested in stocks with strong fundamentals could be a move you thank yourself for later on.   

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Amazon (NASDAQ: AMZN) is no stranger to antitrust lawsuits. Just the other day, California filed a suit against Amazon alleging anticompetitive pricing policies. This filing isn't the first time these allegations have come up, and it likely won't be the last.

Because of the current environment, it's not a far-fetched idea that Amazon could be split up voluntarily or by the government. It's a worthwhile exercise to value each business segment of the company separately for two reasons. First, it could prepare investors for a split. Second, it also serves as a method to value the company and determine if it's worth an investment today.

Let's see how each segment is valued and if Amazon is worth your investment dollars.

A large business with multiple segments

Amazon's business can be split into two main segments: commerce and cloud computing. Commerce is much broader than the website you order items from. It also includes advertising, third-party seller services, and subscription products. Cloud computing, better known as Amazon Web Services (AWS), provides the infrastructure to process workloads through the cloud.

The commerce segment also generates the bulk of Amazon's revenue. Over the past 12 months, the company brought in $485.9 billion in sales overall, and 85% of that came from commerce. However, that segment hasn't made any money over the past year. It lost $7.1 billion; whereas, AWS made $22.4 billion in operating income.

Those figures group all of the many commerce segments together. Amazon doesn't break out its expenses for each segment, but it does break out its sales.

Source: Amazon. YOY = year over year.

This table provides valuable insights. First, its online-store segment didn't grow its sales but is still the largest. Second, AWS is the fastest-growing segment (the "other" segment is volatile, so growth likely isn't sustainable) and the second largest. Lastly, advertising services still grew 21% year over year during a difficult ad environment.

Overall, Amazon's quarter was strong; it was just dragged down by its largest segment having difficult comparisons, because 2021's second quarter was still during the height of COVID-19. But should the company need to be split, it's challenging to determine which segments would go where.

AWS would likely need to be its own entity because it is unrelated to commerce. Advertising could be seen as a conflict of interest, as it should theoretically be a neutral marketplace. One seller could pay Amazon to place its product above other similar ones, even if it is lower rated or more expensive. The rest of the divisions -- online stores, physical stores, third-party services, and subscriptions -- could remain a separate company.

That leaves three separate businesses: cloud computing, advertising, and commerce. Now it's time to determine what each business is worth.

Valuation by parts

To determine what each entity is worth, I'll apply a valuation comparable to companies that perform services similar to the newly formed Amazon businesses. While this approach has flaws, it's a good way to estimate a valuation for each business.

First, investors could compare the commerce business to retail giants like Target Corporation (NYSE: TGT) or Wal-mart Stores, Inc.(NYSE: WMT). These two trade for 0.7 and 0.6 times sales, respectively. While these two companies have a more expensive physical footprint, Amazon has to pay for delivery. However, unlike Amazon's commerce business, Walmart and Target are consistently profitable. Because of this, I will apply a valuation of 0.5 times sales to Amazon's commerce business.

For advertising, The Trade Desk (NASDAQ: TTD) is a similar business. Its ad-tech platform connects buyers to sellers to ensure advertisers get the best results. Amazon's platform has similar capabilities but also deals directly with ads, unlike The Trade Desk. Because of this, I'm going to discount this business significantly. The Trade Desk is valued at 22 times sales, but I'm going to cut that in half for Amazon's ad business to 11 times sales.

Lastly, AWS is likely the most valuable. It's growing quickly and is highly profitable. Its two main competitors, Microsoft's (NASDAQ: MSFT)Azure and Alphabet's (NASDAQ: GOOGL)(NASDAQ: GOOG)Google Cloud, aren't stand-alone companies, so a valuation can't be deduced from them.

There aren't many businesses like it, but Adobe Inc.(NASDAQ: ADBE) comes close. The product isn't close to AWS, but its subscription revenue stream and high operating margins (35%) are similar to AWS. Adobe trades at 8.5 times sales, which is influenced by recent acquisition news. Before then, it traded at 11 times sales. I'll apply a valuation of 13 times sales to AWS to adjust for this drop and account for AWS' faster sales growth.

Now, let's see the value of all three businesses.

Source: Amazon. P/S = price to sales. TTM = trailing 12 months.

Now, let's add up those three segments. Using this method, Amazon's entire business is worth $1.5 trillion. However, its current market cap is $1.26 trillion. That means, according to my valuation method, the company's stock is currently undervalued by 19%. 

So, if Amazon gets broken up by regulators or through its own decision, investors will likely make a quick profit through a split. But that action might not happen.

One thing that is certain is that investors can purchase Amazon's stock today. With its recent price movement, it looks undervalued, and investors should consider establishing a position and holding it for an extended period, even if it gets broken up.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This environmental, social and corporate governance (ESG)-focused fund is not your standard index fund that follows a 'warts and all' index like the S&P/ASX 200 Index (ASX: XJO).

Most benchmark indexes, like the ASX 200, list companies based on market capitalisation alone. Whether a company is a bank, a coal miner, an alcohol seller or a purveyor of gaming and gambling services, it can join the ASX 200.

It just needs a market cap in the top 200 companies of the ASX. That's regardless of how good, bad or ugly the company's business may be.

Well, this ETHI ETF doesn't quite work this way. The BetaShares Global Sustainability Leaders ETF, according to its issuer, has a different approach:

ETHI aims to track the performance of an index (before fees and expenses) that includes a portfolio of large global stocks identified as "Climate Leaders" that have also passed screens to exclude companies with direct or significant exposure to fossil fuels or engaged in activities deemed inconsistent with responsible investment considerations.

What's in an ETHI-cal ETF?

So this fund holds a basket of companies from around the world that, as you might have gathered, can be classed as 'climate leaders'. As one might imagine, there are no miners here.

Instead, ETHI's top holdings include the likes of Apple Inc (NASDAQ: AAPL), Visa Inc (NYSE: V), NVIDIA Corporation (NASDAQ: NVDA) and PayPal Holdings Inc (NASDAQ: PYPL). It also holds Adobe Inc (NASDAQ: ADBE), American Express Company (NYSE: AXP) and Toyota Motor Corp (NYSE: TM).

The ETF is weighted 39.4% towards information technology. A further 16% is towards healthcare, 16% towards financials and 13.9% in consumer discretionary shares.

Geographically, 68.8% of its holdings are from the US markets, with 8.7% from Japan, and 3.9% from the Netherlands.

But let's get to performance. This ETHI ETF's unit price has returned 17.01% in 2021 so far. And that's not even including the distribution payment that came investors' way back in January.

That compares pretty well against the ASX 200 which has returned 9.87% in growth over 2021 so far. That's almost double in fact (as the headline told you).

Over the past 3 years, ETHI has returned an average of 23% per annum. It's also given investors an average of 21.61% per year since its inception in January 2017.

For ethically-minded investors, it might be nice to see a fund that can put its money where its mouth is and give an index-beating performance.

Past performance is no guarantee of future success of course. But this ETF certainly gives us a good look at what ethical investing can do.

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