The global share market has performed strongly recently and this has made it harder to identify opportunities. But there are still great ideas out there.
Some areas are driving the market higher, particularly the tech sector. But, we can be strategic in what we choose to invest in at these higher prices. We can either wait for those valuations to become more appealing or we can invest in areas of the market that still seem attractive for long-term returns. Here are some of the ones that still look good to me.
VanEck Morningstar Wide Moat ETF (ASX: MOAT)
I think this is one of the most effective exchange-traded funds (ETFs) at a time like this because of its investment strategy.
It aims to invest in high-quality US businesses that have very strong economic moats and are viewed by analysts as good value.
The US businesses that this ETF targets are ones with competitive advantages that are expected to last for many years and allow the companies to make excess profits in that time.
Currently, the businesses that are at the top of the ETF’s holdings list include Applied Materials, Thermo Fisher Scientific, West Pharmaceutical Services, Huntington Ingalls Industries, Estee Lauder and Agilent Technologies.
On 2 October 2025, the ETF had 53 holdings, which is more than enough diversification.
The Morningstar analyst team only invest when target companies trading at attractive prices compared to Morningstar’s estimate of fair value.
So, with a portfolio of high-quality names, which the MOAT ETF can move in and out of as valuations change, it’s able to produce strong returns. Since it started in June 2015, it has returned an annual average of 15%, beating the return of the S&P 500 Index.
Xero Ltd (ASX: XRO)
This ASX share is one of the highest-quality businesses around, in my opinion. The business provides cloud accounting software for business owners, accountants and bookkeepers.
Xero has invested significantly in its software to provide subscribers with the most tools to have the best understanding of their business and do various tasks more efficiently. Xero is increasingly moving towards automation tools to help save as much time as possible – that’s valuable to time-poor business owners.
It has an incredibly high gross profit margin which is climbing towards 90%, meaning almost nine in ten revenue dollars is translating into gross profit which can be used for either boosting the net profit or investing for growth.
The company’s cashflow is growing at a very pleasing pace and this is what investors should focus on. In FY25, revenue rose 23% and free cashflow soared jumped 48%.
I’m expecting this ASX share to continue growing earnings as subscriber numbers increase and its operating leverage continues improving. It looks better value after dropping 18% since June 2025.
