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.

After a bruising year for ASX technology names and widespread concern about an AI-driven selloff, Xero's share price has cratered.

This is a level that implies a dramatically weaker future than analysts actually expect.

And according to a note out of Macquarie, the current price simply doesn't reflect Xero's long-term earnings power. In fact, the broker argues that the market is mispricing the company's US opportunity entirely.

Macquarie currently has an outperform rating and a $230.30 price target on Xero. Based on its current share price, this implies potential upside of 92% for investors over the next 12 months.

Why Xero looks undervalued today

Macquarie's highlights that today's share price suggests that from FY 2028 Xero will miss the Rule of 40, which is a benchmark for high-performing software stocks, until FY 2033.

That means the market is pricing in a dramatic slowdown in growth after FY 2-28, despite evidence to the contrary.

The broker believes that its current valuation assumes Xero's core business slows to 12% annualised revenue growth beyond FY 2028 and never reaches the free-cash-flow margins achieved by its key competitor, Intuit (NASDAQ: INTU). Macquarie stresses that these assumptions are far too conservative.

The US could be the game-changer

One of the most important points that Macquarie makes is that the US market is finally showing the same conditions that historically drove Xero's strongest growth in other regions.

It notes that payment digitisation and cloud-accounting adoption are accelerating across the US, which has been a missing ingredient in past years. Xero's recent Melio acquisition gives the company a powerful distribution network and access to ~18 million small businesses via syndication partners. It said:

Management are moving quickly, with deal close 2 months earlier than expected. This coincides with Trump's digitisation of payments gaining momentum. The IRS is phasing out paper refund checks from Sep 30 2025 and pushing customers to digital rails. Moreover, the GENIUS Act and the updating/adoption of FedNOW & FedRamp are pushing more customers to digital rails and digital tax. Historically, these are the two necessary preconditions for XRO to grow strongly in a market, and they are manifesting in the US now.

Macquarie describes this as a "perfect storm" in Xero's favour and highlights that there is no clear number-two competitor in the US, and Intuit's growing focus on the mid-market leaves Xero's core small-business segment under-served.

Should you buy this Australian stock?

With the stock down sharply and Macquarie forecasting significant upside as its US strategy unfolds, Xero looks like one of the most attractive opportunities on the ASX right now.

As a result, this is one Australian stock that I would happily buy more of at the current price.

The post It's time to buy: 1 Australian stock that hasn't been this cheap in years 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.

For one, the Xero share price has rocketed more than 3,300% since its ASX debut back in 2012, no doubt minting a few millionaires amongst its first investors.

For another, this cloud-based accounting software stock continues to deliver enviable growth numbers despite being close to two decades old.

Back in November, Xero reported a 25% increase in revenues for the six months to 30 September to NZ$996 million. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose by an even more impressive 52% to NZ$312 million.

This company seemingly has everything going for it. Thanks to its nature as a software-as-a-service (SaaS) provider, it continues to add recurring revenue. Its global expansion is also looking promising, with NZ$271 million of its revenue for the half coming from the United Kingdom (up 26% year-on-year).

Back home, the Australian and New Zealand markets continue to form the foundation of Xero's success, contributing another NZ$458 million and NZ$109 million to that NZ$996 million revenue pool.

Xero's long-term future looks solid, given that we can probably expect our governments to keep requiring us to lodge and pay taxes every year for some time yet.

Yet I have a problem with Xero, one that has prevented me from buying this market darling's shares.

What's holding me back from buying Xero shares?

That problem is this company's greatest rival – Intuit Inc (NASDAQ: INTU). Intuit is America's own Xero. Founded in 1983, it essentially offers the same services as Xero, providing cloud-based accounting services via its popular QuickBooks platform.

Just as Xero is dominant in Australia and New Zealand, Intuit is also dominant in the United States and Canada.

Want proof? Well, Xero has a market capitalisation of $25.57 billion, while Intuit commands a US$162.29 billion ($258.05 billion) market cap. Yep, Intuit is more than ten times larger than Xero.

I believe this company is one of the primary reasons why Xero's growth in North America has failed to take off in the same way that it has in the UK and other countries.

Last month, Intuit told investors that it expects to grow revenues by 12% to 13% over the full 2025 year and operating income growth of 28% to 30%.

Given how complex the American tax system is compared to our own (many Americans have to pay both state and federal income taxes, for example), I think it's fair to say that Intuit has a home-field advantage 'Stateside'.

Yet the market is still pricing in a whole lot of growth for Xero. That's going off its current price-to-earnings (P/E) ratio of 124.7.

Foolish takeaway

Now, Intuit's North American dominance and size doesn't mean that Xero can't still succeed. If these two companies capture the lion's share of their global market over the coming decades and form a duopoly of sorts, it will still bring enormous success to Xero's investors.

However, I think the current Xero share price is a little too optimistic about its North American growth trajectory, which I think will remain the company's toughest nut to crack.

I'd love to buy Xero shares, as it is clearly a quality business that makes a product that consumers love. But I'll be waiting for a better entry point, preferably one with a P/E ratio well under 124.7.

The post Here's my big problem with Xero shares appeared first on The Motley Fool Australia.

Xero's current share price is not cheap by any metric you use. At $115.50, Xero has a price-to-earnings (P/E) ratio of more than 5,000.

Now, if Xero continues to grow at its current clip, this laughably high P/E ratio might be justifiable for some investors. Xero did manage to post earnings growth of 88% for FY20, as well as revenue growth of 30% and free cash flow growth of 388%.

But perhaps investors are getting a bit carried away…

Hero to Xero?

The market is arguably acting like Xero has an unlimited growth runway and a monopolistic presence in its market. But this isn't the case. Xero has a competitor and it's a gorilla. Intuit Inc (NASDAQ: INTU) is an American company that also offers cloud-based accounting software – its QuickBooks program. Xero currently has a market capitalisation of $16.55 billion. But Intuit is valued at US$90.4 billion. This isn't a company to be trifled with.

According to reporting in the Australian Financial Review (AFR), Intuit is the number 3 player in Australia, behind Xero and MYOB. But Intuit also has a global customer base of 5.1 million across 200 countries.

Additionally, the AFR also reports that the Australian Competition and Consumer Commission (ACCC) has authorised Intuit to participate in open banking. Open banking is part of a key government competition policy that, according to the AFR, "allows consumers to direct data held by banks – and soon energy companies – to be securely transferred to accredited third parties, who can use it to offer lower-cost services."

So it's clear that Intuit isn't entirely happy with its bronze medal in the Australian market  – and that should have Xero worried. If Intuit can tap this avenue effectively, it could steal some market share away from Xero. I'm not suggesting Xero is in trouble. But it is possible that the current Xero share price isn't reflecting the true nature of the accounting software landscape. The company has fierce competitors. Think about that when you're looking at P/E of more than 5,000.

Foolish takeaway

Don't get me wrong, Xero is a fantastic company. However, I do think its possible that the market is pricing it to perfection right now. As such, I'm not too interested in the current Xero share price. But I'll keep my eye on it nonetheless.

The post Xero (ASX:XRO) share price at all-time high, but is competition heating up? appeared first on The Motley Fool Australia.

Xero is one of those shares that doesn't seem to ever dip too much, so is this a rare buying opportunity?

Why has the Xero share price dipped?

Xero shares fell last week after the company released its FY20 results to the market. Xero reported some strong numbers, including a 26% increase in subscribers, a 30% increase in revenues and an inaugural profit of NZ$3.3 million. Free cash flow also increased by 320% to NZ$27.1 million.

But despite these numbers, investors were clearly expecting a little more out of this WAAAX market darling. Xero shares dipped in response, falling from nearly $84 on Wednesday to around $75 by the end of the week.

Does this mean Xero is a buy today?

Although the Xero share price has come off the boil, I'm still not convinced it's at a compelling level today.

Xero is a company investors are pricing for a high growth future and it does have a long growth runway, for sure. Governments around the world are pushing for their taxpayers to switch to digital providers like Xero, which is a great long-term tailwind for the company to enjoy. Further, Xero has shown its product is extremely sticky, with most customers remaining on its platform after onboarding.

But with a current price-to-earnings ratio over 3,500, I think investors are seeing a little too much future potential based on current levels. Remember, this is a company that has just turned its first profit of NZ$3.3 million, yet has a market capitalisation of nearly $11 billion.

Furthermore, I still have concerns that Xero might run into increased competition which, in turn, may slow the astronomical rate of its subscriber growth. Intuit Inc. (NASDAQ: INTU) is one of Xero's major competitors and has also been growing its market share in North America.

Perhaps on current prices, the market is treating Xero like a future monopoly in its cloud accounting space, rather than one of several strong players.

Foolish Takeaway

Xero is a high-quality company to be sure, and one I wouldn't mind owning shares in at some point. But I think the current market environment is not one we should be making high-growth bets in. Therefore, today's Xero share price is still a little out of my comfort zone. Call me if the Xero share price falls back to under $60 where it was a year ago and we might have a different conversation!

The post Is the Xero share price a buy after last week's dip? appeared first on The Motley Fool Australia.

Let's consider how the software-as-a-service (SaaS) online accounting business reported its 'gross profit margin' lifted 2.4% to 85.2% for the year ending September 30 2019. 

Xero and other cloud-based SaaS businesses calculate their gross profit margin as total operating revenue minus the direct cost of that revenue. 

The post Why I'd sell my soul to own these 7 SaaS businesses appeared first on The Motley Fool Australia.

Yesterday, Xero concluded its #XeroconBrisbane conference that is designed to provide its accountant clients, partners, or other stakeholders with updates on its product developments, among other initiatives. 

Xero didn't have any headline making news out of #XeroconBrisbane, but it's clear Rod Drury's original mission to 'rewire the small business economy' is ongoing and its market-leading online-only product (alongside Intuit's Quickbooks) is helping it take market share worldwide.

I cannot think of another company on the S&P/ ASX200 (ASX: XJO 0r wider All Ordinaries Index (ASX: XAO) that is harnessing the growth of the digital economy better than Xero.

Moreover, its mission to take small business accounting online and connected via a widening financial web of partners, intermediaries, and banks could still develop strongly over the next 5 years.

Let's take the UK tax office's (HMRC) recent directive that tax submissions should be all online, which saw Xero subscriptions spike over the period to May 31 2019.

The directive is for all VAT (GST equivalent) and income tax submission across individuals, the self-employed, and small businesses, with a surprisingly large percentage of submissions still offline.

The UK's deadline to comply is not until at least April 2020, but other tax offices worldwide are also likely to push to digitise tax returns and small business accounting over the years ahead.

This looks a powerful tailwind for Xero and assuming recent growth rates continue it probably already has around 2 million subscribers globally.

Another point worth noting is that Xero for now is still largely focused on winning global market share by improving its product offering and keeping pricing competitive in order to avoid being undercut by competitors like Quickbooks or Myob. 

This is notable as Xero probably has a fair bit of pricing power once it's integrated into a small businesses book keeping methodology and price rises over say the next 3 to 5 years will likely see profits rocket.

I've covered the attractive economics of the software-as-a-service business model it operates plenty of times before in prior articles.

If Xero can deliver on its potential the shares may still be cheap, as I expect the digital economy's growth will heavily outpace the wider economy's growth in the decade ahead. 

The post Will the Xero share price hit $100 one day? appeared first on The Motley Fool Australia.

Another name for a "competitive advantage" is "moat", like the ring of water which protects a medieval castle.

No moat = No Worries*!

After I wrote that article I received a message from a friend who enquired about the idea of the 'strength' of a competitive advantage/moat.

In my article I used the example of Greencross Limited (ASX: GXL), Australia's leading pet store and vet business, and said that it did not have a wide, durable moat.

You can make bucket loads of cash by investing in businesses with narrow or no moats, but, as I noted earlier: invest for a good time, not a long time.

Don't take it from me

English is my fourth language.

(not really, it just seems that way!)

I have a habit of making no sense, at times. So consider this chart from Morningstar, the financial research heavyweight:

The file "moat-roic" was aptly named since "roic" means Return on Invested Capital.

Morningstar's research team articulate my point more eloquently than I did:

"We believe low-quality, no-moat companies will see their normalized returns gravitate toward the firm's cost of capital more quickly than companies with moats."

The team goes on to say, "We have identified five sources of economic moats: intangible assets, switching costs, network effect, cost advantage, and efficient scale."

3 of my Favourite ASX Companies with Dangerously Wide Moats

Xero FPO NZ (ASX: XRO)

Xero is the Kiwi accounting software provider. I'm not sure exactly how powerful its competitive advantage will become, but it is growing. With its online software fulfilling a complex task for many small businesses, switching costs are high and the growth in its user base is one of the big reasons its efficiency is improving and its moat is widening. However, its moat is not impregnable in my opinion, especially with rivals like Intuit. 

Gentrack Group Ltd (ASX: XRO)

I have been writing about Gentrack a lot in 2017. It is also a software business with a subscription type model. Gentrack is a specialist software developer for the energy and water utilities markets, and airports. Its product embeds deeply in their systems and processes, creating high switching costs.

APA Group (ASX: APA)

APA Group is a name you might not know, but whose services you use every single day. APA Group is Australia's largest provider of gas infrastructure like pipelines and distribution centres. While it's not impossible for a company to replicate APA's business, it undoubtedly has a moat. Not only does it have high switching costs (what's the alternative to using the only pipeline network within 50km?), it also has a cost advantage over potential competitors. In addition, APA benefits from scale efficiencies when new customers are added to the system. All these features combine to create a powerful 'captured audience'.

Foolish Takeaway

Facebook, Apple, Amazon. These are the names of dominant companies changing the world. They also have the widest of wide moats.

But closer to home there are other, smaller, companies with competitive advantages.

Buying a company with a durable competitive advantage doesn't guarantee returns — especially if you overpay for the shares. But if you're a long-term (i.e. five years plus) investor, I don't know why you would invest in anything else unless it was dirt cheap!

The post 3 of my Favourite ASX Companies with Dangerously Wide Moats appeared first on The Motley Fool Australia.