Instead of guessing which companies will win, you can build a diversified, low-maintenance portfolio in minutes. For beginners, that's a powerful way to invest with confidence over the long term.

If you're aiming for a balanced, defensive mix of Aussie and global exposure, these three ASX ETFs could be ideal "set and forget" options.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

This ASX ETF gives you instant exposure to hundreds of large companies across developed markets like the US, Europe, and Japan. That global diversification is a huge strength, as you're not relying solely on the Australian economy.

It also taps into powerful long-term growth trends across industries. Key holdings include NVIDIA Corp (NASDAQ: NVDA), Alphabet Inc (NASDAQ: GOOG), and Johnson & Johnson (NYSE: JNJ).

The main risk? Currency fluctuations and market volatility. But over a 10-year horizon, global diversification can be a major advantage.

BetaShares Australia 200 ETF (ASX: A200)

This ASX ETF tracks the top 200 companies on the ASX, offering broad exposure to the Australian market at a very low cost. It's a simple way to gain access to dividends, franking credits, and the strength of local blue chips.

Its holdings span multiple sectors, including companies like Wesfarmers Ltd (ASX: WES), CSL Ltd (ASX: CSL), and Macquarie Group Ltd (ASX: MQG).

The risk here is concentration. The Australian market is heavily weighted toward financials and resources. But paired with global exposure, it works well in a balanced portfolio.

iShares Core Composite Bond ETF (ASX: IAF)

This ETF invests in a diversified basket of Australian government and high-quality corporate bonds. It won't deliver explosive growth, but that's not the point.

IAF helps smooth out volatility and provides more stable income, especially during market downturns.

Its holdings include Australian Government bonds and debt issued by major institutions like Westpac Banking Corp (ASX: WBC) and ANZ Group Holdings Ltd (ASX: ANZ).

The trade-off is lower returns compared to shares, and sensitivity to interest rate movements.

Foolish Takeaway

These three ASX ETFs offer a powerful combination: global growth (VGS), Australian income and stability (A200), and defensive protection (IAF).

For new investors, that's a simple, diversified portfolio you can build today, and potentially hold for the next decade with confidence.

All three ASX ETFs are also highly cost-effective options. The Vanguard ETF VGS charges a low management fee of around 0.18% per year, while the BetaShares Australia 200 ETF is even cheaper at approximately 0.04%. And the iShares Core Composite Bond ETF costs about 0.10% annually.

The post New to investing? 3 ASX ETFs to set and forget for 10 years appeared first on The Motley Fool Australia.

Instead, the 'States have long been the hunting ground for the world's best growth stocks. That's not surprising when we consider the calibre of long-time winners like NVIDIA, Tesla, Mastercard, Amazon, Alphabet, Netflix, and Microsoft, amongst many others.

It's true that dividends from US stocks don't come with franking credits attached. But that doesn't mean that Australian investors can't obtain a decent income from stocks across the Pacific.

Indeed, the US markets are home to some of the world's most impressive dividend growth streaks. Companies like Coca-Cola, Altria, Johnson & Johnson, Pepsico and Colgate-Palmolive have delivered an annual dividend increase every single year for at least 50 years. That's not something that many ASX share can claim.

Sure, if one buys a US-based index fund, they can expect a lot less in dividend income upfront compared to buying an ASX index fund. To illustrate, the iShares Core S&P/ASX 200 ETF (ASX: IOZ) is currently trading with a trailing dividend distribution yield of 3.42%. In contrast, the iShares S&P 500 ETF (ASX: IVV), which tracks the most popular gauge of the American markets, will only get you a trailing yield of 1.1% at current pricing.

Can US stocks deliver decent passive income?

Let's assume for a moment that these two index funds pay out the same dividend distributions over the coming 12 months as the past 12. If that's the case, an investor would need to invest just over $700,000 in the ASX index fund of they wished to receive roughly $2,000 a month in passive dividend income. But for the S&P 500 ETF, the amount required for that same level of passive income would stand at just under $2.2 million.

However, there are easier ways to get a higher yield from US stocks. Probably the easiest is by buying higher-yielding passive income stocks. Not all of the highest calibre companies on the US markets are growth beasts. Let's start with some of the dividend stars we listed above. right now, Coca Cola shares are trading with a dividend yield of 2.72%. Pepsico offers 3.51%, while Altria has a whopping 6.32% on the table.

No dividend is safe, no matter how long its streak of annual increases. But it does give us a guide that a company knows how to make consistent profits through all kinds of economic cycles.

A combination of these kinds of shares can easily help an ASX passive income investor get at least as much of a yield form the US markets as is available on the ASX, and perhaps even more.

The post How much do you need to invest in US stocks to earn a $2,000 monthly passive income? appeared first on The Motley Fool Australia.

By investing internationally, you gain exposure to industries, companies, and growth drivers that simply don't exist locally.

The good news is that ASX exchange traded funds (ETFs) make that process easy, allowing investors to access world-class businesses without leaving the local market.

With that in mind, here are three ASX ETFs that offer different ways to invest in some of the best stocks in the world.

Vanguard MSCI International Shares ETF (ASX: VGS)

The first ASX ETF to consider is the Vanguard MSCI International Shares ETF.

Rather than trying to pick which country or sector will outperform, this fund takes a broad, all-weather approach. It invests across developed markets, giving exposure to thousands of companies spanning the US, Europe, and Asia.

Holdings include businesses such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nestle (SWX: NESN).

What makes the Vanguard MSCI International Shares ETF appealing is not any single stock, but the way it captures global economic progress as a whole. As industries rise and fall, and new leaders emerge, the index naturally evolves. This makes this fund a useful foundation for investors who want global exposure without having to constantly adjust their portfolio.

Betashares Global Quality Leaders ETF (ASX: QLTY)

Another way to invest in the world's best stocks is through a quality lens, which is exactly what the Betashares Global Quality Leaders ETF aims to do.

This fund focuses on businesses with strong profitability, robust balance sheets, and consistent earnings. Instead of spreading exposure as widely as possible, it narrows the field to stocks that have demonstrated an ability to perform through different market conditions.

Holdings include stocks such as Johnson & Johnson (NYSE: JNJ), Tokyo Electron, and Meta Platforms (NASDAQ: META). These are businesses that often benefit from pricing power, brand strength, or structural advantages.

This fund was recently recommended to clients by Betashares.

VanEck MSCI International Value ETF (ASX: VLUE)

A final ASX ETF to consider is the VanEck MSCI International Value ETF, which takes a different approach to global investing.

Rather than focusing on growth or quality, it looks for international companies trading at relatively attractive valuations based on fundamentals such as earnings, cash flow, and book value. This often leads to exposure in areas that are out of favour but not necessarily broken.

Holdings include companies such as Intel (NASDAQ: INTC), Verizon Communications (NYSE: VZ), and Toyota Motor Corporation (FRA: TOM). These businesses may not dominate headlines, but they play important roles in the global economy.

VanEck recently recommended this fund to clients.

The post Want to invest in the best stocks in the world? Try these ASX ETFs 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.

With more than $8 billion in assets under management, QUAL is currently the fifth most popular ASX ETF on our markets. It comes in behind the Vanguard Australian Shares Index ETF (ASX: VAS), the Vanguard MSCI Index International Shares ETF (ASX: VGS), the iShares S&P 500 ETF (ASX: IVV) and the BetaShares Australia 200 ETF (ASX: A200).

Unlike those four ETFs, though, QUAL isn't a market-wide index fund that blindly invests in companies according to their market capitalisation, with few other considerations.

Instead, it tracks an index that actively screens companies to identify their quality. These screens include factors like a stock's return on equity, earnings stability and financial leverage.

After applying these screens to a range of internationally listed shares, the VanEck International Quality ETF settles on a portfolio of around 300 different stocks, hailing from more than a dozen different countries. These countries range from Switzerland, Japan and the United Kingdom to China, Denmark and Ireland.

However, the vast majority of QUAL's portfolio is drawn from the United States of America, which commands more than three-quarters of this ETF's weighted holdings.

So, let's get into what you're actually buying when purchasing QUAL units in 2026.

QUAL: What's in this ASX ETF's box?

Here are the current top ten holdings of the VanEck International Quality ETF, as well as their respective weightings in the QUAL portfolio:

1. Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) at 5.67% of the total QUAL portfolio
2. Meta Platforms Inc (NASDAQ: META) at 5.02%
3. NVIDIA Corporation (NASDAQ: NVDA) at 4.64%
4. Apple Inc (NASDAQ: AAPL) at 4.62%
5. Microsoft Corporation (NASDAQ: MSFT) at 4.46%
6. Eli Lilly & Co (NYSE: LLY) at 3.44%
7. Visa Inc (NYSE: V) at 2.92%
8. ASML Holding N.V. (AMS: ASML) at 2.52%
9. Johnson & Johnson (NYSE: JNJ) at 1.86%
10. Walmart Inc (NYSE: WMT) at 1.77%

Some other significant QUAL holdings include Mastercard Inc (NYSE: MA), Netflix Inc (NASDAQ: NFLX), Costco Wholesale Corp (NASDAQ: COST) and Caterpillar Inc (NYSE: CAT).

Not only does this list reveal how dominant the US is in this ASX ETF, but it shows how similar its holdings are to a broad-market US index fund like the iShares S&P 500 ETF. We discussed that ETF just the other day, so check out how its holdings compare to QUAL's here.

This methodology seems to have worked quite well for the VanEck International Quality ETF, though. As of 31 December, QUAL units have returned an average of 14.8% per annum over the past ten years, and 22.85% per annum over the past three. It will be interesting to see if this performance keeps up in 2026.

This ASX ETF charges a management fee of 0.4% per annum.

The post Investing in the VanEck International Quality ETF (QUAL)? Here's what you're really buying appeared first on The Motley Fool Australia.

The good news is that exchange-traded funds (ETFs) remove much of that pressure and offer a simple way to invest.

With a single investment, you can gain instant diversification and exposure to hundreds or even thousands of companies.

For Australians starting their investing journey in 2026, here are five ASX ETFs that stand out as sensible, beginner-friendly options.

Vanguard Australian Shares ETF (ASX: VAS)

The Vanguard Australian Shares ETF is often considered a cornerstone ETF for local investors. It provides exposure to the 300 largest shares listed on the ASX, making it an easy way to invest in the Australian economy as a whole.

Its portfolio includes blue-chip names such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), CSL Ltd (ASX: CSL), and Wesfarmers Ltd (ASX: WES). For beginners, this fund offers simplicity, diversification, and a steady stream of income over time.

iShares S&P 500 ETF (ASX: IVV)

If you want global exposure without complexity, the popular iShares S&P 500 ETF is a strong place to start. It tracks the S&P 500 Index, giving investors access to 500 of the largest stocks in the United States.

Holdings include Microsoft Corp (NASDAQ: MSFT), Apple (NASDAQ: AAPL), NVIDIA Corp (NASDAQ: NVDA), Johnson & Johnson (NYSE: JNJ), and Visa Inc (NYSE: V). For beginners, this fund offers exposure to some of the world's most profitable businesses with a single, low-cost investment.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The Vanguard MSCI Index International Shares ETF could be worth considering. It is designed for investors who want broad international diversification beyond Australia. It invests across developed markets such as the United States, Europe, and Japan.

Its holdings include companies like Alphabet Inc (NASDAQ: GOOGL), Nestlé (SWX: NESN), Toyota Motor Corp (TYO: 7203), and LVMH Moët Hennessy Louis Vuitton (FRA: MOH).

Betashares Australian Quality ETF (ASX: AQLT)

The Betashares Australian Quality ETF takes a quality-focused approach to Australian shares. Rather than simply tracking the biggest companies, it targets businesses with strong balance sheets, reliable earnings, and solid cash flow.

Top holdings include Telstra Group Ltd (ASX: TLS), Macquarie Group Ltd (ASX: MQG), National Australia Bank Ltd (ASX: NAB), and Woodside Energy Group Ltd (ASX: WDS). This ETF could suit beginners who want a more selective take on the local market. It was recently recommended by analysts at Betashares.

Betashares Nasdaq 100 ETF (ASX: NDQ)

Finally, the Betashares Nasdaq 100 ETF adds a growth tilt to a beginner portfolio by tracking the Nasdaq-100 Index. It provides exposure to innovative companies shaping technology, healthcare, and consumer trends.

Holdings include Amazon.com (NASDAQ: AMZN), Meta Platforms (NASDAQ: META), Broadcom (NASDAQ: AVGO), and Netflix (NASDAQ: NFLX).

The post 5 fantastic ASX ETFs for beginners in 2026 appeared first on The Motley Fool Australia.

With optimism building into the new year, now could be an ideal time to add some high-quality ETFs to your portfolio.

Here are three of the best ASX ETFs to buy in November for growth-minded investors with $5,000 to put into the market.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

The first ASX ETF to consider buying is the BetaShares Nasdaq 100 ETF. This hugely popular fund gives Australian investors easy access to 100 of the most innovative and dominant non-financial stocks listed in the United States.

It is a powerful way to invest in the world's leading technology and growth names. Top holdings include Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and Amazon (NASDAQ: AMZN). These are companies that continue to shape global industries and push the boundaries of innovation.

Nvidia is the world's most valuable company. Its world-leading graphics processing units (GPUs) have become critical to powering artificial intelligence (AI) systems, cloud computing, and autonomous technology. This dominance has seen its profits soar, and analysts expect the AI boom to fuel years of further growth. This ETF is an easy way to gain exposure to Nvidia.

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

Closer to home, the BetaShares S&P/ASX Australian Technology ETF provides access to some of the country's most innovative and fastest-growing technology names.

Its top holdings include WiseTech Global Ltd (ASX: WTC), Xero Ltd (ASX: XRO), NextDC Ltd (ASX: NXT), and TechnologyOne Ltd (ASX: TNE).

WiseTech Global is a global logistics software platform provider. Its platform, CargoWise, is becoming the industry standard for freight forwarding and supply chain management. As global trade and digitalisation continue to expand, WiseTech is well positioned to benefit from long-term structural tailwinds.

The BetaShares S&P/ASX Australian Technology ETF allows investors to capture that growth and the broader rise of Australian technology stocks in one simple, diversified trade. This fund was recently recommended by analysts at Betashares.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Finally, for investors who prefer a broad, globally diversified portfolio, the Vanguard MSCI Index International Shares ETF offers exposure to more than 1,200 stocks across major developed markets.

The fund's largest holdings include Apple (NASDAQ: AAPL), Nestle (SWX: NESN), Roche (SWX: ROG), and Johnson & Johnson (NYSE: JNJ).

One name worth noting is Nestle. It is a household giant that has built its strength on trusted consumer brands like Nescafe, KitKat, and Purina. Even during periods of economic uncertainty, Nestle continues to deliver stable revenue and strong cash flow. This is the kind of consistency that makes it a classic long-term holding.

Overall, the Vanguard MSCI Index International Shares ETF could be a great core holding for any portfolio.

The post The best ASX ETFs to buy in November with $5,000 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.

Even professionals don't always get it right, and owning the wrong stock at the wrong time can set your portfolio back years.

The good news is that you don't actually need to pick single stocks to build serious wealth in the share market.

That's where exchange-traded funds (ETFs) come in. With a handful of ASX ETFs, you can gain exposure to hundreds (or even thousands) of the world's best businesses, all while keeping your investing strategy simple.

Start with an Australian core

For local exposure, the Vanguard Australian Shares Index ETF (ASX: VAS) is a natural building block for investors to start with.

It tracks the ASX 300 index, giving you instant ownership of names like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Woolworths Group Ltd (ASX: WOW). That means your portfolio rises and falls with the performance of 300 of Australia's biggest and most established businesses.

Add international diversification

The Australian market makes up less than 2% of global equities, so it is vital to look offshore for investment ideas. The iShares S&P 500 ETF (ASX: IVV) provides exposure to 500 of the largest U.S. stocks, including leaders such as Microsoft (NASDAQ: MSFT), Visa (NYSE: V), and Johnson & Johnson (NYSE: JNJ).

For an even wider net, the Vanguard MSCI Index International Shares ETF (ASX: VGS) spreads your investment across more than 1,200 stocks from developed markets around the globe. That means ownership of everything from ASML Holding (NASDAQ: ASML) in semiconductors to LVMH (FRA: MOH) in luxury goods.

Tilt toward long-term trends

Beyond broad market exposure, thematic ETFs let you target powerful megatrends.

For example, the Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ) gives you access to innovators like Intuitive Surgical (NASDAQ: ISRG) in robotic surgery and Keyence in automation. These are areas expected to reshape industries over the next few decades and could be great long term focuses.

Alternatively, there are the Betashares Global Cybersecurity ETF (ASX: HACK) and the Betashares Crypto Innovators ETF (ASX: HACK) to consider.

Foolish takeaway

By combining core market ETFs with international diversification and exposure to megatrends, you can build a wealth-generating portfolio without ever picking a single stock. It is a strategy that's simple, diversified, and designed to compound steadily over the long term.

For most investors, that's exactly the kind of approach that leads to financial freedom.

The post How to build wealth with ASX ETFs and never pick a single stock appeared first on The Motley Fool Australia.

Exchange-traded funds (ETFs) make this approach even easier by providing instant exposure to hundreds — sometimes thousands — of companies in a single trade.

If you want to keep your investing simple but effective in 2025 and beyond, the three ASX ETFs listed below could form the backbone of a stress-free, growth-focused portfolio. They are as follows:

iShares S&P 500 ETF (ASX: IVV)

For most Australians, global diversification starts with the United States. The iShares S&P 500 ETF tracks the S&P 500 index, giving investors easy access to 500 of America's largest companies. This includes tech titans like Microsoft (NASDAQ: MSFT) and Nvidia (NASDAQ: NVDA), as well as household names like Coca-Cola (NYSE: KO), Starbucks (NASDAQ: SBUX), and McDonalds (NYSE: MCD).

The US market has historically delivered strong returns, and the iShares S&P 500 ETF offers a low-cost way to tap into that growth while benefiting from the stability of blue-chip names across technology, healthcare, consumer staples, and financials.

Betashares Global Quality Leaders ETF (ASX: QLTY)

Another ASX ETF that makes investing simple is the Betashares Global Quality Leaders ETF. It focuses on global stocks with strong balance sheets, high profitability, and consistent earnings growth. These are the kind of businesses that often outperform over the long term. It currently includes stocks like Visa (NYSE: V), a payments leader with recurring revenues, and Johnson & Johnson (NYSE: JNJ), a global consumer staple brand with enduring demand.

This fund isn't just about growth — it is also about resilience. By filtering for quality metrics, the Betashares Global Quality Leaders ETF helps investors avoid weaker companies that might struggle in tougher markets. This ASX ETF was recently named as one to consider buying by the team at Betashares.

Betashares Nasdaq 100 ETF (ASX: NDQ)

If you're seeking growth, then the Betashares Nasdaq 100 ETF is hard to ignore. It offers exposure to 100 of the largest non-financial companies on the Nasdaq. This captures the heart of the global technology sector.

Alongside Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN), it includes innovative names like Broadcom (NASDAQ: AVGO), a key player in the semiconductor and networking space. With artificial intelligence and digital transformation reshaping industries, the Betashares Nasdaq 100 ETF provides a simple way to ride some of the biggest secular growth trends in the global economy.

The post 3 strong ASX ETFs to buy for simple investing appeared first on The Motley Fool Australia.

American companies are required to report their latest earnings every three months. That stands in stark contrast to the ASX. Here, six-month reporting periods are the norm.

Thanks to this quarterly schedule, there is always more news and more numbers to digest. There are also more share price swings and roundabouts on the US markets than there tend to be here in Australia.

It's quite an exciting period to be sure. Yes, it's always interesting to see how the likes of Commonwealth Bank of Australia (ASX: CBA), Telstra Group Ltd (ASX: TLS), or Woolworths Group Ltd (ASX: WOW) are faring. But I personally find it far more fascinating to take a look under the hood of companies like Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL), Tesla Inc (NASDAQ: TSLA), Coca-Cola Co (NYSE: KO), and Netflix Inc (NASDAQ: NFLX).

As it happens, those four companies are set to reveal their updated books over the next fortnight.

Of those four stocks, Netflix is the first, with earnings set to be unveiled on Thursday, July 17, this week.

Coca-Cola's numbers are due out on Tuesday, 22 July.

Alphabet and Tesla will report the next day.

I'm excited to take a look at all four of these names. As a Coke shareholder, I'm interested to see how this holding has fared over the three months to 30 June.

Ditto with Alphabet. Much has been made of the supposed threats facing this company, given its primary breadwinner – Google Search – is facing competition from AI platforms like ChatGPT.

Some other US stocks I'll be watching this earnings season

But I'll also be watching companies that can be viewed as barometers of the US economy. For example, major American bank stock JP Morgan Chase & Co (NYSE: JPM) is due to report its earnings on Tuesday, 15 July.

Those might just give us an invaluable insight into the health of the US economy. This is arguably crucial at this juncture, as the effects of the Trump Administration's economic policies (tariffs and the like) are still uncertain.

Other 'bread-and-butter' companies might also be useful in this endeavour. That's why I'll also be keeping an eye on Johnson & Johnson (NYSE: JNJ), Procter & Gamble Inc (NYSE: PG), Visa Inc (NYSE: V), and Starbucks Corp (NASDAQ: SBUX).

Say these companies begin discussing dropping consumer sentiment or rising costs, thanks to the effects of the new tariffs. This could be something of a canary in the coal mine for the American economy, and it could have ASX implications.

So, over the next few weeks, I'll be keeping a weather eye on the American horizon as some of the world's biggest and most influential stocks reveal their latest numbers. It should make for some interesting reading.

The post US earnings kicks off this week: What I'm watching appeared first on The Motley Fool Australia.

It's been a banner year for the stock market. However, not every stock has been a winner as some sectors performed better than others. Tech and utilities soared, while others like real estate and healthcare underperformed.

So what are the five worst performers on the Dow Jones Industrial Average (DJINDICES: ^DJI) list of blue chip stocks? Let's take a look.

1. Boeing (down 36.5%)

Boeing (NYSE: BA) has had a rough year. It started early as the stock price fell after the door panel on a Boeing jet flown by Alaska Airlines popped off mid-flight. Follow-up investigations revealed a workplace culture where quality controls became overly lax. Boeing brought in a new CEO, but a full-fledged turnaround could take years.

2. Nike (down 27.5%)

Nike (NYSE: NKE) struggled this year as missteps under former CEO John Donahoe (also ousted this year) led to declining sales and profits and market share losses to upstart competitors like On Holding and Deckers' Hoka brand. Nike was also criticized for moving away from brand marketing and wholesale relationships with chains like Foot Locker. It's expected to change strategy under new CEO and company veteran Elliott Hill.

3. Merck (down 8.5%)

Merck (NYSE: MRK) is one of several pharmaceutical stocks that underperformed this year. The company struggled to find growth beyond Keytruda, a cancer drug, as franchises like HPV vaccine Gardasil and diabetes drug Januvia declined due to Gardasil's weakness in China and competition for Januvia. Keytruda now makes up nearly half of its revenue, though the headwinds against other drugs have eaten into profits.

4. Johnson & Johnson (down 6.3%)

Johnson & Johnson (NYSE: JNJ) is also down this year as it's faced headwinds associated with lawsuits around its talcum-based products, and profits have declined due to legal costs and increased research and development (R&D) expenses.

5. Amgen (down 4.8%)

Like other healthcare stocks, Amgen (NASDAQ: AMGN) missed out on the cyclical tailwinds that lifted the broad market, and it's faced challenges with MariTide, a weight loss drug that could be linked to bone mineral density loss. Revenue from oncology treatments and established products like Enbrel are also down.

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

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The reality is that even professional investors can't consistently do better than the S&P/ASX 200 Index (ASX: XJO).

But there is a neat little trick one could pull to assist.

Here's the first way to beat the index

The strategy is to invest in ASX dividend shares.

Many Australians already buy and own dividend stocks for what they're famous for — providing income.

But with the ASX bursting with high yield equities, they can also be used effectively to grow capital faster than the market index.

The idea is that if the dividends are immediately reinvested, then the overall portfolio grows just as well as growth stocks.

To demonstrate, check out how the S&P/ASX 200 Index Accumulated (ASX: XJOA) has done over the years.

That index, which is the ASX 200 with dividends immediately reinvested, stands at an impressive 49.84% gain since January 2019.

Not bad in four years including the COVID-19 and post-pandemic market corrections.

And this is how you turbocharge the portfolio

However, the ingredient that will supercharge a stock into the market-beating zone, according to The Motley Fool US' Matthew DiLallo, is to pick companies that grow their dividend over time.

"That combination of a rising dividend income stream and price appreciation from earnings growth has historically yielded market-beating total returns."

There are some sensational examples of stocks that consistently expand their dividends over time in the US.

"Three of the most well-known among this dividend royalty are Coca-Cola Co (NYSE: KO), Procter & Gamble Co (NYSE: PG), and Johnson & Johnson (NYSE: JNJ). 

"Coca-Cola and Johnson & Johnson notched their 61st straight years of dividend growth in 2023, while Procter & Gamble is up to 67 consecutive years."

Here's an ASX example

While The Motley Fool can't find any ASX shares that have such long winning streaks, there are some historically trustworthy stocks that keep pushing up their distributions.

Washington H Soul Pattinson and Co Ltd (ASX: SOL) is the classic local example. 

The investment company has raised its dividends every year since the 2000s, including through the global financial crisis and the COVID-19 crash.

The dividends are accompanied by decent capital growth too, with the Soul Patts share price rising 63% over the past five years.

One important thing to note with this strategy is that you're not necessarily going for the stocks with the highest dividend yields.

For example, Soul Patts currently hands out a 2.9% yield.

It's more about choosing quality businesses that have the best chance to grow both their valuation and dividends. 

If you bought Soul Pattinson shares five years ago at $19.90, your portfolio would be now enjoying a fully franked 4.7% dividend yield.

Such is the power of dividends.

The post The little-known secret to beating the ASX 200 appeared first on The Motley Fool Australia.

As 2022 starts to close, it's only natural for investors to start peeking toward 2023. So far in 2022, the indexes have fared pretty miserably, with the Nasdaq-100 down 29% and the S&P 500 down 17%. Which one will have a better 2023?

Let's look at these indexes and their makeups and find out which is more likely to have a better 2023 ahead.

The indexes are highly concentrated on the top

At the top, the indexes have a lot of overlap.

Data source: Slickcharts. Data as of Nov. 19. *Note: Both Alphabet class shares combined.

Data source: Slickcharts. Data as of Nov. 19. *Note: Both Alphabet class shares combined.

As you can see, Apple, Microsoft, Amazon, and Alphabet make up a considerable chunk of these indexes. In the S&P 500, they account for 19.83%. It's basically double for the Nasdaq-100, with that group making up 39.16% of the index. It's pretty straightforward: How these companies do will significantly steer how the overall index does.

While these three are tech-focused, they compete in different markets. Both Apple and Amazon are a good measure of the pulse of the consumer, as their sales are highly affected by consumer sentiment. If inflation cools, and consumers don't need to worry about rising grocery prices or housing costs, they may treat themselves to the latest device.

Alphabet and Microsoft are business-focused, but for different reasons. Alphabet's primary revenue stream is advertising, and many clients have pulled back their spending levels in 2022 due to the uncertain business environment. If the outlook improves, expect this revenue to return. Microsoft's cloud business and Office product suite indicate how willing businesses are to spend on their infrastructure, but Microsoft's consumer product division also indicates how individuals are doing. 

If the consumer gets stronger and business outlook improves, these four will boom. If that's the case, then the Nasdaq-100 will likely have a better year because it is concentrated in companies that will benefit the most. But if 2023 brings an economic recession, the S&P 500's diversity will help it to outperform the Nasdaq-100.

The companies outside the top five are very different

For the S&P 500, when you move out of the top five, the companies become much more diverse.

Data source: Slickcharts. Data as of Nov. 19.

Now, there are industrials, healthcare, and energy sectors represented, giving the index some much-needed balance. Looking at the top 20 reveals even more diversity, with financials, energy, and healthcare rounding the index out.

This is far from the case for the Nasdaq-100.

Data source: Slickcharts. Data as of November 19. Note: Both Alphabet class shares combined.

Besides Pepsi and Costco, these companies are more in the tech sector. But, unlike the S&P 500, it doesn't get much better outside the top 10, with most of the top 20 consisting of chipmakers, communication companies, and software businesses. Now, this probably isn't a surprise because the media often refers to this index as the "tech-heavy Nasdaq."

Still, tech businesses don't do well if the economy is struggling.

Does that mean you should write the Nasdaq-100 off? Absolutely not. Tech stocks tend to do very well in the recovery phases of a recession. Plus, the stock market is forward-looking, and stocks usually tend to do better during a recession than leading up to one.

That last tidbit of information should keep investors in the market, especially now with a recession, or at least an economic slowdown, imminent. However, if you're trying to decide which index to buy, you need to utilize the 2023 outlook. If you think 2023 will be a repeat of 2022, then the S&P 500 is the better choice. On the other hand, if you believe the economy will begin to recover and the Federal Reserve eases its interest rate hikes, then the Nasdaq-100 is the place to be.

One last point: There's nothing wrong with owning both indexes if you don't know what 2023 will bring. Personally, I think this is an intelligent strategy, as it gives investors the upside of recovery and the safety of a balanced investment.

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

The post Will the Nasdaq or S&P 500 have a better 2023? appeared first on The Motley Fool Australia.

Warren Buffett has been a prolific investor for decades, soundly beating the markets on a consistent basis.

What's noteworthy is that he hasn't generally done it by betting on big tech or emerging growth stocks in high-risk industries. His strategy centres around safety and not about taking oversized risks.

There are two Buffett rules in particular that investors would do well to always keep in mind when buying stocks. Let's look at them both.

Never lose money

This rule is so important that even his second rule is to not forget the first one. Not losing money in the stock market can seem impossible, especially in the current bear market. Even Buffett's business, Berkshire Hathaway, has lost money on its investments in the past and has even underperformed the S&P 500 Index (SP: .INX) in some years.

The nature of the stock market is that there will always be some risk. The key takeaway from Buffett's rule is to not take unnecessary or excessive risks and that the desire to avoid losing money should guide investors to making more calculated, strategic investment decisions, as opposed to jumping onto the latest meme stock.

Stop digging

This leads to another great Buffett quote: "The most important thing to do if you find yourself in a hole is to stop digging."

In other words, if you've taken on too much stock risk and gotten yourself into a hole (e.g., your portfolio is deep in the red), the temptation may be to take on even greater risk and swing for a 10-bagger investment that gets you out of the hole. But by doing so, you could end up with even greater losses.

By minimizing losses to begin with, investors can avoid the temptation to take on excessive risks entirely. One industry where you can find many safer stocks is healthcare.

Healthcare stocks for long-term investors

Not all industries have performed poorly during the current downturn in the markets. One segment that has bucked the trend is healthcare.

Consider healthcare giant Bristol-Myers Squibb (NYSE: BMY), a top-performing stock in 2022. Year to date, the stock is up an impressive 17%, while the S&P has declined by 21%.

Bristol-Myers is a top drugmaker that has solid fundamentals. Last year, the company had three products that generated more than $5 billion in revenue for the business: Revlimid, Eliquis, and Opdivo. And they all reported positive year-over-year growth of at least 6%.

The healthcare company has grown, in part, via acquisitions and in 2021 reported revenue of $46 billion -- more than double its $23 billion tally in 2018. It has also posted free cash flow of at least $13 billion for two consecutive years.

Another top healthcare stock that has performed reasonably well this year is Johnson & Johnson (NYSE: JNJ). Year to date, its shares are flat, but that would still satisfy Buffett's first and second investing rules by avoiding losses.

The popular drug manufacturer and medical device company recently reported encouraging earnings numbers.

Sales totaled $23.8 billion for its most recent quarter (ended in September) and rose 1.9% year over year. The business expects to generate operational sales growth, which excludes the impact of acquisitions/divestitures and translating foreign currency, of up to 7.2% this year.

These businesses are safe and are excellent examples of the types of companies to invest in if your priority is to avoid losing money.

Over the past decade, Bristol-Myers and Johnson & Johnson have generated total returns (which include dividends) of 190% and 213%, respectively. That's not far from the S&P 500 total returns of 223% over that time frame. And if the recent trends continue, the two healthcare stocks could continue to shrink that gap.

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

The post Two Warren Buffett rules you should never forget appeared first on The Motley Fool Australia.

We won't officially be in a recession until the National Bureau of Economic Research says so. However, you can nearly throw a rock in any direction and find an economist who thinks a recession is probably on the way.

For example, Johns Hopkins economics professor Steve Hanke stated a month ago that he believes there's at least an 80% chance of a recession. Non-profit research group The Conference Board recently pegged the probability at 96%. The latest Bloomberg economic model projects a 100% chance of a recession by October 2023. 

These forecasts don't guarantee that a recession is coming. But it's possible that the current bear market will continue for a while longer. That doesn't mean that every stock will be a big loser, though. Which stocks are most likely to thrive in a recession? Here's what history shows.

Some bad news

The SPDR Select Sector exchange-traded funds (ETFs) are good proxies for gauging how different sectors perform during recessions. One primary downside of using them is that most of these ETFs have only been around since the late 1990s. However, the U.S. has experienced three recessions during that period, so the SPDR Select Sector ETFs should be able to help in determining which stocks historically thrive in a recession.   

I've got some bad news, though. None of the SPDR Select Sector ETFs performed well in all three recessions that occurred over the past 25 years. 

The Consumer Staples Select Sector SPDR Fund (NYSEMKT: XLP) held up well during the recession of 2001. However, it still slid a little. The Materials Select Sector SPDR ETF (NYSEMKT: XLB) performed similarly during the first recession of this century. (The shaded area in the charts below indicates the period when the U.S. economy was in recession.)

XLP data by YCharts

However, both of these ETFs plunged during the Great Recession that began in late 2007 and went through mid-2009. So did every other sector ETF -- including (perhaps surprisingly) the Utilities Select Sector SPDR Fund (NYSEMKT: XLU). 

XLP data by YCharts

All of the sector ETFs also tanked during the brief coronavirus-fueled recession of 2020. However, the Consumer Staples Select Sector SPDR Fund didn't fall nearly as much as the others did.

Looking for exceptions

The cold, hard truth is that no category of stocks thrives in all recessions. But it's clear from examining the past that consumer staples stocks tend to perform better than most. Your best bet, though, is to look for exceptions. I'm referring to stocks that have factors working to their advantage so much that investors want to buy them even when the overall economy stinks.

Johnson & Johnson (NYSE: JNJ) stood out as this kind of stock during the recession of 2001. The healthcare giant continued to deliver revenue and earnings growth throughout the period. It completed the $10.5 billion acquisition of ALZA Corporation. The blue-chip stock was also viewed as a safe haven for investors worried about the dot-com bubble bursting.

JNJ data by YCharts

Walmart (NYSE: WMT) performed exceptionally well during the Great Recession, especially considering how most stocks plunged. Investors realized that the serious economic downturn would mean that consumers would have to tighten their purse strings. That worked to the advantage of the big discount retailer.

WMT data by YCharts

Moderna's (NASDAQ: MRNA) share price skyrocketed during the quick recession of 2020. That's not surprising. The company was one of the early leaders in developing coronavirus vaccines. Moderna was a natural choice for investors to flock to during the uncertain times at the beginning of the COVID-19 pandemic.

MRNA data by YCharts

Likely outliers in the next recession

Which stocks might be outliers in the next recession, assuming it isn't too far off? I think we can learn from history. 

Walmart could again defy gravity if the U.S. economy enters into a recession. My view is that another discount retailer, Dollar General (NYSE: DG), should do so as well.

Dollar General is outperforming Walmart so far this year. The company continues to build new stores. It's also expanding its frozen and refrigerated goods offerings. Dollar General should benefit as consumers increasingly try to stretch their dollars.

Just as Johnson & Johnson and Moderna performed well during two previous recessions, I suspect another drug stock will do so during the next recession -- Vertex Pharmaceuticals (NASDAQ: VRTX). Vertex's revenue and earnings will almost certainly grow robustly even amid an economic downturn. 

The big biotech also has a pipeline with multiple potential blockbusters likely on the way. Vertex expects to file for regulatory approvals for one of them (gene-editing therapy exa-cel) before year-end. With fears of a recession increasing, I think that Vertex is arguably the best stock to buy right now.  

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

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You might be living under a rock if you haven't heard the word "recession" being thrown around in the media over the past few months. Thanks to inflation, the Federal Reserve's efforts to control inflation, and an overflow of global problems, a worldwide economic contraction is on the table (though not guaranteed) in the near future.

And it's exactly this situation that could make well-prepared investors significantly wealthier a few years down the line. So if you want to address your anxiety while setting your portfolio up for success, here are four simple actions you can take that'll pay off.

1. Determine when you'll need your money

The first step to prepare for a recession is to think about your financial goals and clarify them. Specifically, decide when you want to withdraw your investment. Will you need the money a year from now, when it's time to pay for a large expense? Or perhaps your time frame is five years -- or maybe even 30. 

The reason why this step is important is that you probably shouldn't be investing any of your moola if you're going to need it within three years. Any investment you make has a solid chance of taking at least that long to break even, which is a key consideration given that you're buying stocks in a recessionary environment where share prices are apt to fall in the near term.

And it'd be a pity if you were forced to liquidate your position at a loss simply because you didn't plan ahead and keep your assets in cash or an equivalent instrument. 

2. Identify your vulnerable stocks

The second thing to do if you're afraid of a recession is to look at your portfolio and assess which of your investments are more vulnerable and could face harsher headwinds in the event of a recession -- and which positions may be more stable.

For example, if you own shares of Johnson & Johnson (NYSE: JNJ), you would probably mark it as being relatively sturdy in a recession. The company develops medicines and medical devices that consumers need.  Economic conditions would have to be quite dire for people to start skimping on such necessary products.

In contrast, if you own some Tesla, Inc., (NASDAQ: TSLA) you'd do well to identify it as being very vulnerable to squeezed consumer wallets. Expensive electric vehicles might well be the products of the future, but they're not high on the list of household priorities to purchase when money is tight.

Likewise, the automaker is vulnerable to all manner of fluctuations in the prices of the commodities it needs to make its vehicles, which might be an additional headwind in a recession.

3. Start stashing cash to build on your high-conviction positions

Now, it's time to review your positions still further, including your investing thesis for each one, to decide whether their challenges are temporary and caused by macroeconomic factors beyond their control, or whether a recession might usher in conditions that would ultimately be fatal to their long-term returns.

Let's say you think Tesla could be vulnerable to falling sales during a recession. But you also think that it'll survive any headwinds and be able to keep growing at a steady pace afterward. You may then want to save up cash to buy more shares -- of course, as long as it's not too large a position and is a part of a diversified portfolio. You could also do the same thing for your less vulnerable stocks, like Johnson & Johnson.

4. Bide your time patiently

The last thing to do if you're worried about a recession is to set up your watch lists and portfolio alerts to let you know when it may be time to buy more shares of the stocks you're eyeing. Then, wait patiently, preferably while continuing to save cash and continuing to build on your high-conviction positions that you don't expect to be vulnerable, like Johnson & Johnson. It's probably for the best to pause your purchases of highly vulnerable companies like Tesla if you think a recession is coming, though.

That's right, you shouldn't stop buying stocks in general if you're fearful -- just prepare to buy more shares if the conditions make it lucrative to do so. In other words, it's best to make your plans for what to do with your portfolio during a recession, then get on with your life. Most years don't feature recessions, and many of the predictions about looming recessions tend to be wrong. Once you have a strategy, it should help prepare you for whatever may happen.

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

The post Afraid of a recession? Do these 4 things today appeared first on The Motley Fool Australia.

Countless factors affect stock prices on a daily basis. Some are very broad like global events and macroeconomic trends. Others are more narrow: company-specific news or changes to analyst price targets. But all of those things affect investor sentiment to some degree, making it impossible to predict which direction a stock (or even the broad market) will move in the short term.

You may hear stories about day traders who made a fortune overnight. Well, some lucky people have also become millionaires by playing the lottery, but that doesn't mean you should invest your money in lottery tickets. Several studies have shown the vast majority of day traders actually lose money, and the ones who manage to turn a profit often make less than minimum wage.

Put simply, the best way to make money in the stock market is a long-term investment strategy. For instance, the S&P 500 has produced a positive return 100% of the time over any 20-year window between 1919 and 2021, according to Crestmont Research. That means patient investors who held an S&P 500 index fund for at least two consecutive decades (at any point over the last century) always made money.

Here is one way to benefit from that information.

A simple way to make money in the stock market

The Vanguard S&P 500 ETF (NYSEMKT: IVOO) is a passively managed fund that tracks the performance of the S&P 500, which includes 500 of the largest U.S. companies. That may be less exciting than buying individual stocks, but there are several advantages to this strategy investors should consider.

First, the Vanguard S&P 500 ETF offers instant diversification across all 11 market sectors, and investors get exposure to some of the most valuable brands in the world. For instance, the top 20 holdings include industry-leading names like Apple, Inc. (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), Amazon.com, Inc.(NASDAQ: AMZN), The Home Depot, Inc.(NYSE: HD), Mastercard Incorporated(NYSE:MA), Visa Inc. (NYSE: V), UnitedHealth Group (NYSE: UNH), Johnson & Johnson (NYSE: JNJ), Tesla Corp Ltd (NASDAQ: TSLA), Alphabet Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL), and ExxonMobil Corporation (NYSE: XOM).

Second, the Vanguard S&P 500 ETF is cheap and time-efficient. It bears an expense ratio of 0.03%, meaning investors would pay only $1.50 per year in fees on a $5,000 portfolio. Additionally, it requires very little work, because there is no need to research specific companies or stay up to date on financial results. Investors can simply buy the ETF and forget about it.

In short, while it may be boring, buying an S&P 500 index fund is a simple, inexpensive, and time-tested path to making money in the stock market. That's why Warren Buffett has often advocated for this investment strategy.

Third, the Vanguard S&P 500 has generated a total return of 206% over the last decade, which is equivalent to an annualized return of 11.8%. At that pace, $100 invested on a weekly basis would grow into a $1 million portfolio in 28 years, and it would grow into a $2 million portfolio in 34 years.

How I manage my portfolio

An S&P 500 index fund does not have to be your only investment. Personally, I keep a certain percentage of my portfolio in the Vanguard S&P 500 ETF, but I also own dozens of individual growth stocks. I think of the S&P 500 index fund as a sort of safety net, a reliable money maker in the long run.

Of course, nothing is truly guaranteed when it comes to the stock market, but the S&P 500 has undeniably produced a positive return over every rolling 20-year period since 1919. And that knowledge makes me feel comfortable taking a little more risk with my other investments.

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

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Although the markets looked fine yesterday after the Federal Reserve raised its benchmark lending rate by three-quarters of a percentage point, it didn't take long for the panic to set back in. The Dow Jones Industrial Average lost more than 740 points today as investors digested the Fed's biggest hike since 1994 and turned their attention to the economic outlook.

The Dow closed the day below 30,000 for the first time in nearly a year and a half. Mortgage rates also soared higher, as investors grew more concerned about a potential recession and the magnitude of that recession.

The big losers on the day were American Express, Nike, and Caterpillar. While the majority of the Dow finished the day down, there were four stocks in the index that managed to survive the blood bath.

The 4 survivors

The big-box retailer Walmart (NYSE: WMT) finished the highest of any Dow stock, gaining just over 1% on the day. Over the last five days, Walmart has also managed to stay in the green despite very difficult trading conditions.

While we've heard large retailers talk about the shift away from discretionary goods in recent days, the consumer is still spending heavily on necessities such as groceries, which can greatly benefit Walmart, which now generates about 60% of its revenue from groceries.

Grocery stocks can do well in inflation because the stores can pass the higher costs onto the consumers. Walmart said earlier this year that it continues to take market share in the U.S. grocery category. The company grew grocery sales in the low double-digit percentage range last quarter.

The consumer goods giant Procter & Gamble (NYSE: PG) also managed to scratch out a gain today, with shares up roughly 0.6%. 

With brands such as Pampers, Tide, Bounty, and Gillette, among many other cosmetics and household brands, it made sense that investors shifted over to a stock like Procter & Gamble today. When there are concerns over a recession and rates are on the rise, the market will look less favorably on tech and growth stocks because they are riskier. In addition, higher rates reduce the value of their future cash flows, as well as their earnings power.

But people are still going to need paper towels, diapers, and shaving equipment during a recession, making this stock more recession-proof than others. The other two stocks that eked out a gain today were Merck and Johnson & Johnson.

Should you pile into these names?

I definitely don't hate the idea of adding some of these more recession-proof names like Walmart or Procter & Gamble to your portfolio because people are always going to need these products, making these companies potentially more durable during the volatility.   

But that doesn't mean I wouldn't also take this sell-off as an opportunity to go bargain hunting. If a recession occurs, it could end up being a mild one and recessions don't always last that long either. When looking for discounts, take a long view and focus on the business model as opposed to near-term price action. 

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

The post The Dow got crushed — Here are 4 stocks that survived the bloodbath appeared first on The Motley Fool Australia.

The 'Oracle of Omaha' has been making the most of the downturn, snapping up billions of dollars' worth of stock through Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK.B) over the past few months.

Interestingly, some of his major buys have fallen into one sector. At the same time, the famous investor has been offloading holdings in another.

What sectors has Buffett been buying and selling?

This year has been off to a rough start for many market enthusiasts – but not for Buffett.

The Dow Jones Industrial Average has slipped around 11% in 2022. Meanwhile, the S&P 500 has tumbled nearly 15%.

But it's the Nasdaq Composite that's suffering most. It has plunged 24% this year.

Thankfully, the S&P/ASX 200 Index (ASX: XJO) is outperforming the lot, sliding just 6% year to date.

The situation might look dire but it seems it may be Buffett's time to shine. And he's looking to the energy sector for new wins.

Buffett buys: Energy sector

A recent regulatory filing shows the multibillionaire investor has jumped on board Occidental Petroleum Corporation (NYSE: OXY) and quadrupled his stake in Chevron Corporation (NYSE: CVX) in 2022.

The oil and gas producing companies have been outperforming lately. Their share prices have gained 118% and 45% respectively year to date. They also both pay dividends.

Similar stocks on the ASX include Woodside Petroleum Ltd (ASX: WPL).

As of its previous close, the S&P/ASX 200 Energy Index (ASX: XEJ) has gained 37% in 2022 and was trading with a 6% dividend yield.

Mixed: Financials stocks

Berkshire Hathaway also recently snapped up new positions in financial stocks Citigroup Inc (NYSE: C) and Ally Financial Inc (NYSE: ALLY).

Though, the investment house has ditched its former major holding in bank Wells Fargo & Co (NYSE: WFC).

Buffett sells: Healthcare shares

It has also dumped many a healthcare stock.

Biopharmaceutical shares AbbVie Inc (NYSE: ABBV) and Bristol-Myers Sqibb Co (NYSE: BMY) were shown the chopping block while Berkshire Hathaway's holding in Royalty Pharma (NASDAQ: RPRX) was also stripped back.

However, it's worth noting Buffett has steadily held other notable healthcare stocks such as Johnson & Johnson (NYSE: JNJ) and Proctor & Gamble Co (NYSE: PG) over the last few months.

The post Warren Buffett's been bargain hunting following the stock market sell-off. Here's the sector he's been buying (and selling) appeared first on The Motley Fool Australia.