If you wish to add some diversification to your portfolio in August, then you might want to look at exchange traded funds (ETFs).

ETFs can help investors achieve diversification with relative ease by providing access to a large and diverse number of different shares through a single investment.

With that in mind, listed below are two ETFs which could be worth considering. Here’s what you need to know about them:

iShares Global Consumer Staples ETF (ASX: IXI)

The first ETF to look at is BlackRock’s iShares Global Consumer Staples ETF. This fund gives investors exposure to many of the world’s largest global consumer staples companies. These are companies that produce essential products, including food, tobacco, and household items.

Given how demand for these types of products is relatively consistent whatever the economy throws at them, this ETF is likely to be suitable for investors that are looking for lower risk options.

Among its largest holdings are the likes of Coca-Cola, Nestle, PepsiCo, Procter & Gamble, Unilever, and Walmart.

Over the last 10 years, the iShares Global Consumer Staples ETF has generated an average total return of 13.4% per annum. This would have turned a $10,000 investment in 2011 into ~$35,000.

iShares S&P 500 ETF (ASX: IVV)

Another ETF to look at is the iShares S&P 500 ETF, which is also managed by global giant BlackRock.

The fund manager notes that this ETF gives investors exposure to the top 500 U.S. stocks through a single investment. This can be used to diversify internationally and seek long-term growth opportunities for a portfolio.

Among the ETF’s largest holdings are Amazon, Apple, Berkshire Hathaway, Facebook, JP Morgan, Johnson & Johnson, Microsoft, and Tesla.

Over the last 10 years, the fund has generated an average return of 19.9% per annum. This would have turned a $10,000 investment in 2011 into just over $61,000 today.

The post ASX investors could diversify their portfolios with these quality ETFs appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended iShares Global Consumer Staples ETF. The Motley Fool Australia has recommended iShares Trust – iShares Core S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The two ASX shares in this article are impressive and could be worth thinking about in August 2021.

Businesses that are producing a good amount of revenue growth give themselves a strong chance of also producing profit growth. Seeing as investors like to judge and price companies on their profit and cashflow, revenue growth is an attractive feature to have.

The below ASX shares are seeing plenty of growth:

City Chic Collective Ltd (ASX: CCX)

City Chic is a leading retailer of clothes, footwear and accessories for plus-size women.

It operates under a number of different brands including City Chic, CCX, Avenue and Evans. With those brands (and a couple of others), it has a good and growing market position in Australia and New Zealand, the US and the UK.

City Chic is building a portfolio of brands so it can meet the clothing needs of all of its customers. Indeed, the business recently announced another acquisition. It’s called Navabi, which is an online marketplace that sells hundreds of third-party women’s plus-size brands. It has also developed its own brands that are sold on the marketplace.

The customers are predominately from Germany, so this acquisition gives the business an opportunity to expand in Europe. In 2020, the Navabi websites had 5.8 million customer visits in 2020, generating €10.4 million of sales revenue. COVID-19 has affected the business – before the pandemic its website was seeing traffic of more than 10 million visits. Even so, in 2021 the business has been trading profitably.

The ASX share continues to grow, with total profit rising faster than revenue. In a trading update for FY21, City Chic said that sales revenue was up 32.9% to $258 million. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be in the range of $42 million to $42.5 million, being growth of between 58% to 60%.

Trading in FY22 had “exceeded budget” with strong US and UK performance outweighing store closures in Australia.

VanEck Video Gaming and Esports ETF (ASX: ESPO)

This is an exchange traded fund (ETF) that is focused on some of the world’s leasing game makers and other businesses involved to make video games possible.

It’s a fairly concentrated portfolio with 26 different names in the portfolio, though they aren’t ASX shares.

Looking at the holdings list, the biggest 10 weightings are these businesses: Advanced Micro Devices, Nvidia, Sea, Tencent, Nintendo, Unity Software, Activision Blizzard, Netease, Electronic Arts and Take Two Interactive Software.

Video gaming has been around for a long time but revenue continues to grow for these companies at a double digit rate. VanEck says that since 2015, revenue for the video gaming industry has grown by an average of 12% per annum.

But e-sports is where a lot of the growth is right now. The industry is getting audiences the size of the Olympics and it’s unlocking various streams of earnings such as game publisher fees, media rights, merchandise, ticket sales and advertising. E-sports revenue has grown by an average of 28% per annum since 2015.

Past performance is not an indicator of future performance, although the index of these shares has done very well. Over the last five years, the index that this ASX share tracks has grown by an average of 32.75% per annum.

The post 2 impressive ASX shares that could be buys in August 2021 appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Looking for growth shares to buy? Then you might want to consider the three listed below.

Here’s why they have been tipped as growth shares to buy:

PointsBet Holdings Ltd (ASX: PBH)

The first ASX growth share to look at is PointsBet. It is a leading sports betting company with operations in both the ANZ and US markets.

From these markets, the company is currently generating significant revenue. For example, last week PointsBet revealed that its full year turnover reached $3,781.4 million in FY 2021. This was up an impressive 228% on FY 2020’s turnover. Driving this strong growth was a 117% annual increase in Australian active clients to 196,585 and a 661% increase in US active clients to 159,321.

The good news is that the company is only scratching at the surface of its massive US market opportunity. For example, Goldman Sachs notes that the US sports betting market is forecast to grow at a compound annual growth rate of 40% out to 2033. It estimates that it will be worth US$39 billion a year at that point.

Goldman currently has a buy rating and $14.90 price target on its shares. This compares to the latest PointsBet share price of $10.00.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is Australia’s leading online furniture and homewares retailer. It has been growing at a strong rate over the last few years and particularly during the pandemic. This has been driven by the accelerating shift to online shopping.

This strong form continued in FY 2021, with Temple & Webster recently releasing its full year results and revealing stellar growth again.

For the 12 months ended 30 June, Temple & Webster delivered an 85% increase in revenue to $326.3 million and a 141% jump in EBITDA to $20.5 million. A key driver of its growth in FY 2021 was another strong increase in customer numbers. At the end of the period, Temple & Webster’s active customers were up 62% year on year to 778,000.

Pleasingly, this positive momentum has continued early in FY 2022. Management revealed year on year revenue growth of 39% for the period 1 July to 24 July.

Looking longer term, Temple & Webster appears well-positioned for growth thanks to its strong market position and the structural shift online. The latter is still in its infancy, with very low penetration rates compared to other categories and other Western markets.

One leading broker that is very positive on Temple & Webster is Credit Suisse. Late last month the broker put an outperform rating and $14.62 price target on its shares. This compares to the current Temple & Webster share price of $12.21.

The post 2 exciting ASX growth shares analysts love appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pointsbet Holdings Ltd and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd and Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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There are some ASX dividend shares that have high dividend yields.

Interest rates are incredibly low in Australia and around the world right now. That can make it hard to locate investments that still have relatively high yields.

Here are two that do still have high yields:

Charter Hall Retail REIT (ASX: CQR)

This is a real estate investment trust (REIT), as the name suggests, that specialises in properties in the retail space.

The idea is that it invests in high-quality Australian supermarket anchored convenience and convenience-plus shopping centres.

According to Charter Hall Group (ASX: CHC), it has a portfolio worth well over $3 billion spread across around 350 properties. The ASX dividend share had an occupancy rate of 97.8% and a weighted average lease expiry (WALE) of 7.7 years.

The CEO of Charter Hall Retail recently said:

Our Long WALE convenience retail assets remain highly attractive given the quality of the tenants, attractive lease structures, duration of leases and high underlying land values. These assets have delivered CQR unitholders highly defensive and reliable earnings over the last twelve months and are now also delivering significant growth in capital values. It’s pleasing to see the results of our ongoing portfolio curation delivering these gains.

One of the brokers that likes Charter Hall Retail REIT is Macquarie Group Ltd (ASX: MQG) with a price target of $4.19. The broker projects a distribution of 25.6 cents per unit in FY22, equating to a distribution yield of 6.8%.

Rural Funds Group (ASX: RFF)

Rural Funds is another ASX dividend share in the REIT space.

This one owns a portfolio of high-quality farms around Australia. Those properties are spread across different states and climactic conditions to lower risks.

However, Rural Funds is not the one that takes on the operational risks, that’s on the tenants. The REIT owns a large amount of water entitlements for tenants to use.

Rural Funds has a diverse portfolio of farms includes cattle, almonds, vineyards, macadamias and cropping (sugar and cotton).

The business is steadily adding to its portfolio with acquisitions which diversifies and improves the asset base and tenant exposures.

Currently, some of the main tenants include JBS, Treasury Wine Estates Ltd (ASX: TWE), Select Harvests Limited (ASX: SHV) and Olam.

It has a goal of increasing the distribution for investors by 4% each year. Rural Funds has been successful with that goal and has guided for the expected 4% increase in FY22.

Based on the forecast of 11.73 cents per unit, Rural Funds has a forward distribution yield of 4.5%.

The post 2 ASX dividend shares with high yields appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison owns shares of RURALFUNDS STAPLED. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited, RURALFUNDS STAPLED, and Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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