Day: 8 January 2022

It certainly has been a great 12 months for the Telstra Corporation Ltd (ASX: TLS) share price.

Since this time last year, the telco giant’s shares have risen by a sizeable 38%.

This is more than triple the return of the ASX 200 over the same period.

Can the Telstra share price go even higher?

One leading broker that is positive on the Telstra share price is Morgans. It currently has an add rating and $4.55 price target on the telco giant’s shares.

Based on the current Telstra share price, this implies potential upside of 9.5% for its shares over the next 12 months.

And with the broker forecasting a 16 cents per share fully franked in FY 2022 (the equivalent of a 3.85% yield), the total return on offer stretches to almost 12.5%.

Four reasons to buy shares

Morgans has named four reasons why it is positive on the company. This includes its valuation, its risk management, and favourable outlook.

The broker explained: “Industry dynamics have turned positive (NBN and mobile prices are increasing after 5 years of decline; TLS’s targets imply they continue to rise). The SOTP for TLS is worth more than the current share price (and steps to release this value are underway; albeit timing is unclear). While PNG [the Digicel acquisition] is not without risk, this deal shows management’s ability to sensibly manage risk, and it could create further upside, all going to plan. Underlying earnings returned to growth in 2H21 and should continue growing out to FY25.”

Overall, while the Telstra share price has smashed the market over the last 12 months, Morgans appears to believe it can do it all again in 2022. This could make the telco giant a share to buy this year.

The post 4 reasons the Telstra (ASX:TLS) share price could be great value appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares to buy this month: experts
• Here are the 3 most heavily traded ASX 200 shares this Thursday
• These 3 ASX 200 shares are topping the volume charts on Wednesday
• The Telstra (ASX:TLS) share price has been rising, so why is the dividend shrinking?
• 2 quality ASX 200 dividend shares with attractive fully franked yields

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 and has recommended Telstra Corporation 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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One investment option that is growing in popularity with investors is exchange traded funds (ETFs). And it certainly isn’t hard to see why they are so popular.

As well as being an easy way to invest your hard-earned money, they provide you with opportunities that were unattainable a decade ago.

Examples of this are the two ETFs listed below which are highly rated right now. Here’s what you need to know about these top ETFs:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ETF to look at is the BetaShares Global Cybersecurity ETF. With the world shifting online, cyber security has become very important. In light of this, demand for cyber security services continues to increase and shows no sign of slowing. Especially given some high profile cyber attacks in 2021.

This bodes well for the companies included in the BetaShares Global Cybersecurity ETF. These include many of the leading players in the global cybersecurity sector such as Accenture, Cisco, Cloudflare, Crowdstrike, Okta, and Palo Alto Networks.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

A second ETF for investors to consider is the VanEck Vectors Morningstar Wide Moat ETF. This ETF gives investors exposure to a diversified portfolio of fairly valued companies with sustainable competitive advantages.

It is these competitive advantage, or moats, that legendary investor Warren Buffett looks for when he picks his investments. And given the success he has had over several decades, it’s hard to argue against this investment style.

At present, there are around 50 US based stocks included in the fund. This includes high quality companies such as Amazon, Bank of America, Warren Buffett’s Berkshire Hathaway, Intel, McDonalds, Microsoft, Philip Morris, and Yum Brands.

The post 2 ETFs for ASX investors to check out this month appeared first on The Motley Fool Australia.

More reading

• 2 top ETFs that could be buys in January 2022
• Here’s how the BetaShares Cybersecurity ETF (ASX:HACK) beat the ASX 200 in 2021
• 3 ASX ETFs for smart investors in 2022
• 3 high quality ETFs for ASX investors in January
• Here are 2 fantastic ETFs for ASX investors in 2022

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 and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat 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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ASX growth shares are businesses that are growing quickly and expecting to achieve even more in the next few years.

Not every business is growing at a fast pace. Plenty of companies that are growing quickly are not rated as buys by experts.

But these stocks are ones that are growing rapidly and rated as buys at the moment:

Baby Bunting Group Ltd (ASX: BBN)

Baby Bunting is the leading Australian retailer of baby and toddler products including prams, toys, clothes and so on.

FY21 saw a lot of growth. Total sales rose 15.6% to $468.4 million, with online sales rising 54.2% to $90.8 million. Pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 29.2% to $43.5 million, with an increase of the EBITDA margin by 97 basis points to 9.3%. Pro forma net profit after tax grew 34.8% to $26 million.

Baby Bunting continues to work on a number of areas including online sales growth, gross profit margin improvement, new stores and expansion into New Zealand.

In FY22 to 3 October 2021, the ASX growth share saw its gross profit margin improve another 120 basis points to 38.7%. It’s expecting to open between six to eight stores in Australia in FY22 as well as two in New Zealand towards the end of the second half of FY22.

It is currently rated as a buy by the broker Macquarie Group Ltd (ASX: MQG) which noted the company’s ongoing growing strength of the business with increasing profitability, partly due to the increasing percentage of sales that are exclusive to the ASX growth share or are private label brands.

Based on Macquarie’s numbers, the Baby Bunting share price is valued at 22x FY23’s estimated earnings.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle Investment Management is a business that partners with affiliate investment businesses that can demonstrate growth potential and whose management teams have strong track records.

It has a number of investments including Coolabah, Firetrail, Hyperion, Langdon, Plato, Solaris and Spheria.

In FY21, it experienced its net profit more than doubling, with an increase of 108% to $67 million. Pinnacle’s share of affiliate net profit was $66.4 million, an increase of 75%. This was partly driven by funds under management (FUM) growth of 52% over the year to $89.4 billion.

Pinnacle continues to expand its portfolio to diversify and grow its portfolio and earnings. For example, it recently announced that it is going to buy a 25% stake of private equity group Five V Capital.

The ASX growth share has also partnered with Greg Dean, former principal manager at Cambridge Global Asset Management, to launch its first North American affiliate which will be based in Toronto (in Canada). This will have global and Canadian small cap equities strategies.

Pinnacle has previously said that the opportunity for further growth in funds under management is “significant”.

This week, Pinnacle also announced that for the six months ended 31 December 2021, its net share of crystallised performance fees from four affiliates’ is “in the order of $6.2 million”. In the second half of FY22, all 18 of its affiliates’ strategies will have the potential to crystalize performance fees.

Pinnacle is currently rated as a buy by Ord Minnett, with a price target of $17. At the current Pinnacle share price, it is valued at 28x FY23’s estimated earnings.

The post 2 ASX growth shares to buy this month: experts appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares named as buys
• 2 very compelling ASX shares for 2022
• Brokers rate these ASX dividend shares as buys
• 2 ASX shares rated as strong buys by brokers

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. owns and has recommended PINNACLE FPO. The Motley Fool Australia owns and has recommended PINNACLE FPO. The Motley Fool Australia has recommended Baby Bunting and Macquarie Group 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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If you’re an income investor in search of dividend shares to buy, then you may want to look at the two listed below.

Both are being recommended as buys by the team at Morgans. Here’s what they are saying about these ASX 200 dividend shares:

QBE Insurance Group Ltd (ASX: QBE)

Morgans believes this insurance giant’s shares are in the buy zone at the current level. This is due to them trading on very attractive multiples at a time when QBE’s outlook is improving.

It said: “We see QBE as likely having positive underlying momentum into next year. QBE has been putting through top-line rate increases of around 9%, which should assist margin expansion into FY22. With QBE’s balance sheet recently reset, pricing tailwinds evident and the stock relatively inexpensive trading on ~12.8x FY22F PE [now ~14x].”

Morgans expects QBE to pay a 64.8 cents per share dividend in FY 2022. Based on the current QBE share price of $12.19, this will mean a yield of 5.3%. The broker has an add rating and $13.70 price target on its shares.

Westpac Banking Corp (ASX: WBC)

Another ASX 200 dividend share that Morgans likes is Westpac. It believes the banking giant’s shares are cheap at the current level and expects them to provide a generous yield for investors.

Morgans commented: “WBC shares have been sold off heavily following the FY21 result announcement, such that out of the major banks, WBC is now trading on the lowest FY22F P/NTA multiple, the lowest FY22F P/E multiple and the highest FY22F dividend yield. Such multiples or yields could only be justified if WBC is a value trap, which we think it is not.”

The broker expects fully franked dividends per share of $1.23 in FY 2022 and then $1.62 in FY 2023. Based on the current Westpac share price of $21.75, this will mean yields of 5.7% and 7.45%, respectively. Morgans has an add rating and $29.50 price target on the bank’s shares.

The post Top broker names 2 ASX 200 dividend shares to buy appeared first on The Motley Fool Australia.

More reading

• Westpac’s (ASX:WBC) $400m superannuation sale could be nearing the pointy end
• Here’s why CBA (ASX:CBA) shares have the lowest big four bank dividend right now
• Does the prospect of higher rates make ASX 200 bank shares more attractive?
• Here’s why the QBE (ASX:QBE) share price surged 30% in 2021
• Own Westpac (ASX:WBC) shares? Top broker says ‘there is still a lot of work to be done’

Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. 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 Westpac Banking Corporation. 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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Could the Rio Tinto Limited (ASX: RIO) share price count as a buy right now, with a large projected dividend yield for FY22?

Rio Tinto is one of the world’s largest iron ore miners, with only the likes of BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG) and Brazil’s Vale as major competitors.

The iron ore price helped make 2021 a very profitable year for the ASX mining share. But will 2022 be another good year for profit and dividends?

Dividend expectations

Each analyst has different expectations for what Rio Tinto may pay in 2022.

Using the Commsec forecast, the current Rio Tinto share price suggests a grossed-up dividend yield of 10.5% for FY22.

However, the broker Citi believes that Rio Tinto is going to pay an even bigger dividend in FY22. At today’s valuation, the projected FY22 grossed-up dividend yield is 12.75%.

Is the Rio Tinto share price a buy?

Citi does currently rate Rio Tinto a buy. Aluminium is one factor for the broker.

Both the broker and company have noted that Rio Tinto is changing its Australian aluminium smelters to have lower carbon usage.

With the introduction of carbon pricing, Rio Tinto expects that new coal-powered smelting will be challenged as they will need to pay a carbon price. It is that thought that the development of the ELYSIS technology – net zero aluminium smelting which produces oxygen – could lead to 15% lower operating costs, it can be applied to existing smelters and obviously reduces emissions.

Citi thinks that aluminium is going to have a good year in 2022.

Another factor playing into the broker’s thoughts on the Rio Tinto share price is the recent acquisition of the Rincon lithium project.

Lithium acquisition

Rio Tinto is buying the Argentine lithium project from Rincon Mining for $825 million.

The ASX mining company said that this acquisition demonstrates its commitment to build its battery minerals business and strengthen its portfolio for the global energy transition.

Rincon is a large, undeveloped lithium brine project in the heart of the lithium triangle in the Salta Province of Argentina. Management said that the project has a long life, is a scalable resource and could have one of the lowest carbon footprints in the industry.

Rio Tinto is prioritising projects and capital into commodities that support decarbonisation but can also make good returns for shareholders.

The ASX mining share thinks the market fundamentals for battery grade lithium carbonate are strong, with lithium demand forecast to grow by 25% to 35% per annum over the next decade with a significant supply demand deficit expected from the second half of this decade.

At the moment, Rio Tinto is also trying to get its European Jadar project approved, which is currently facing intense local scrutiny on environmental impact concerns.

Citi thinks that the outlook for lithium remains strong.

What is the Rio Tinto share price target?

Citi’s price target on Rio Tinto is $115, which is around 10% higher than where it is today.

The post Is the Rio Tinto Limited (ASX:RIO) share price a buy for its 13% dividend yield? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• 6 ASX shares involved with green metals
• ASX 200 (ASX:XJO) midday update: Afterpay sinks again, BHP and Rio rise
• Why did the Rio Tinto share price (ASX:RIO) have such a lousy 2021?
• 2 ASX dividend shares with yields of more than 8%

Motley Fool contributor Tristan Harrison owns Fortescue Metals Group Limited. 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 no position in any of the stocks mentioned. 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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2021 was a good year for ASX shares.

The S&P/ASX 200 Index (ASX: XJO) finished the year up 13%. The All Ordinaries Index (ASX: XAO) closed even higher, gaining 13.6% year-on-year.

But that’s all water under the bridge now.

Looking ahead to 2022, The Motley Fool asked Brendan Doggett, country manager at investing platform Sharesies AU, which sectors look strong for ASX shares and which ones may wobble.

Volatility and inflation

Doggett told The Motley Fool that he’d witnessed “a huge influx of new retail investors in the aftermath of the COVID-19 market crash of early 2020″.

Since then, investors have enjoyed 2 years of outsized growth, with the ASX 200 now up 55% from its 20 March 2020 closing low.

However, Doggett cautions that 2022 could look quite different for ASX shares. “This growth isn’t necessarily stable over the long-term. So, we can expect to see more market volatility heading in 2022. This is why the education piece is so important for us at Sharesies.”

One of the tangential impacts of the pandemic has been the extraordinary measures that governments and central banks have taken to keep their economies humming along. From near zero interest rates to record levels of quantitative easing (QE), all the monetary and fiscal levers have been pulled hard.

This, Doggett told us “combined with global supply chain constraints, created a perfect storm for inflation. Too much money, chasing too few goods and services”.

“Several asset classes are known to perform well in inflationary environments,” he added. “Tangible assets, like real estate and commodities, have historically been seen as inflation hedges.”

In line with ASX shares involved in the commodities space, Doggett said that with the worst of the pandemic hopefully behind us, the climate crisis is back on retail investors’ agendas:

Investors on the Sharesies platform continue to back companies building a future that they believe in, in growing numbers. Renewable energy and electric vehicles have been the main beneficiaries of this investor interest in past years, a trend that we expect to continue into 2022.

While investors will struggle to find any ASX shares directly working on EVs, there are plenty of listed companies that provide the base materials to power the renewable energy shift.

Novonix Ltd (ASX: NVX), for example, is involved in graphite exploration and mining, battery technology, and battery materials to supply the booming lithium-ion battery industry. Novonix also happens to be the best performing of the ASX shares in 2021, gaining 660% last year.

Fortescue Metals Group Limited (ASX: FMG), as another example, isn’t solely an iron ore miner. The company is also developing green hydrogen production through its subsidiary green energy company, Fortescue Future Industries (FFI).

ASX shares in the BNPL space to remain popular

The once soaring buy now, pay later (BNPL) sector came under serious pressure in 2021.

Shares in industry heavyweight, Afterpay Ltd (ASX: APT), dropped by 30% over the course of the year.

BNPL newcomer, Laybuy Holdings Ltd (ASX: LBY), fared even worse. With the share price losing 82% last year, Laybuy Holdings was the worst performing of the ASX shares listed on the All Ords.

Despite those struggles, Doggett said BNPL stocks look to remain popular with retail investors in 2022.

“After falling in and out of the top 10 most bought stocks at the close of 2021, we see this up and down ride continuing into 2022,” he told us.

Doggett added:

Whether you see these [BNPL] companies as overvalued and due for a correction or as growth machines with more to give, we expect these companies to remain a popular buy for investors in the year ahead as the companies continue to expand and secure partnerships in Australia and abroad with established players in the financial and retail sectors.

What about the great reopening?

As for ASX shares involved in the travel industry, like Flight Centre Travel Group Ltd (ASX: FLT) and Qantas Airways Limited (ASX: QAN), Doggett has a more pessimistic outlook for the year ahead.

“Beaten-down travel stocks have been a retail favourite with many purchasing shares in their favourite companies with a ‘pandemic discount’,” he said.

However, according to Doggett:

Travel stocks have not been quick to recover to pre-pandemic stock prices as new variants and uncertain future lockdowns weigh down investor confidence. As we head into a third year of airlines and other travel companies facing significant disruptions and ongoing loss of revenue, this is one sector which may have passed its window for a quick and strong bounce back to financial health.

Taking the All Ords as our benchmark, ASX shares have gained a combined 7.5% since 21 February 2020, just before the pandemic selloff commenced.

By comparison, the Qantas share price remains down 23% over that same period while the Flight Centre share price is still down 50%.

The post Buying ASX shares in 2022? Here’s what you need to know: expert appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
• Why Afterpay, BrainChip, Medibank, and WiseTech shares are racing higher
• Can you guess the best and worst All Ordinaries performers of 2021?
• ASX says Block listing is ‘most important since BHP’. Here’s why
• ASX 200 (ASX:XJO): Woolworths withdraws API proposal, tech shares rebound

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Afterpay Limited. The Motley Fool Australia owns and has recommended Afterpay Limited. The Motley Fool Australia has recommended Flight Centre Travel Group 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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The Northern Star Resources Ltd (ASX: NST) share price failed to generate positive returns for shareholders in 2021. The stuttering price of gold continued to weigh down on investor sentiment, causing a sell-off in the gold miner’s shares.

Over the course of 2021, Northern Star shares lost around 26%, making it one of the worst performers across the sector. In comparison, the share price of fellow miner Newcrest Mining Ltd (ASX: NCM) lost just 5% across the same time frame.

At yesterday’s market close, Northern Star shares were up 0.66% to $9.10 apiece. It’s worth noting its shares have been on a sharp decline since early November, down 14%.

Why did the Northern Star share price stumble?

The Northern Star share price has fallen drastically since the deterioration of the spot price of gold last year.

Investors traditionally flock to the yellow metal as a safe-haven asset when there is uncertainty in the market. However, with the world moving past COVID-19 along with renewed investor confidence in the US dollar, gold has lost its value.

In the past year, the price of gold soared close to the US$2,000 barrier but has since fallen away. Currently, an ounce of gold is fetching around US$1,792.00. That’s 8% down on the US$1,951.34 it was fetching at the start of last year.

The United States Federal Reserve indicated its intent to raise interest rates at least 3 times in 2022. That was because inflation had accelerated to 6.9%, the highest rate in nearly four decades, and unemployment levels were down.

Rising interest rates inversely drag down the price of precious metals, particularly gold, and it appears investors are bracing for the worst.

Nonetheless, Northern Star managing director and CEO Stuart Tonkin recently made an on-market transaction, buying more of the company’s shares.

The head honcho picked up 50,000 Northern Star shares at an average price of $8.86 per share or $443,000 worth.

The sale increases Tonkin’s existing holding by 4.2%, taking advantage of the recent share price weakness.

What do the brokers think?

A number of brokers believe the Northern Star share price is currently trading at a bargain price.

Last month, multinational investment firm Macquarie Group Ltd (ASX: MQG) improved its outlook on Northern Star shares by 15% to $15 per share. Based on Friday’s closing price, this implies an upside of a sizeable 65% for investors.

On the other hand, Swiss investment firm UBS lowered its outlook on the company’s shares by 21% to $11.20. While the broker reduced its assessment on Northern Star, it still sees value in the gold miner. The price target represents a potential upside of 23% from where it trades today.

The post What happened to the Northern Star (ASX:NST) share price in 2021? appeared first on The Motley Fool Australia.

More reading

• These were the 5 worst ASX 200 mining shares to hold in 2021
• Why is the Northern Star (ASX:NST) share price having such an unhappy new year?
• 5 things to watch on the ASX 200 on Tuesday
• Why has the Northern Star (ASX:NST) share price been heading south over the past month?
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Aaron Teboneras owns Northern Star Resources Limited. 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 Macquarie Group 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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It certainly was an eventful week for the S&P/ASX 200 Index (ASX: XJO). A selloff on Thursday led to the benchmark index giving back its earlier gains to rise just 0.1% over the four days to 7,453.3 points.

While a number of shares rose with the market, some climbed more than most. Here’s why these were the best performing ASX 200 shares last week:

Unibail-Rodamco-Westfield CDI (ASX: URW)

The Unibail-Rodamco-Westfield share price was the best performer on the ASX 200 last week with a 10.3% gain. Other than revealing the termination of a debt facility, there wasn’t any news out of this shopping centre operator. However, its ASX listed shares tend to follow the lead of its European shares, which performed very positively.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price continued its meteoric rise and climbed a further 9.4% over the four days. Investors have been buying Pilbara Minerals and other lithium miners in recent weeks thanks partly to a bullish broker note out of Macquarie. Its analysts believe lithium prices could stay at record levels for the next four years. In light of this, it put an outperform rating and $3.70 price target on its shares.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas share price wasn’t far behind with a gain of 8.8%. This may have been driven by an announcement at the end of the previous week which revealed that its Malaysian permanent disposal facility (PDF) for Water Leach Purification (WLP) residue has finally received environmental approval from the relevant Malaysian regulatory authorities.

Santos Ltd (ASX: STO)

The Santos share price was on form and charged 7.6% over the period. A decent rise in oil prices appears to have been behind this rise. Oil prices pushed higher amid unrest in Kazakhstan and an outage in Libya. This was enough to offset concerns over rising COVID cases and OPEC’s plan to increase production next month.

The post These were the best performing ASX 200 shares last week appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares on Friday
• ASX 200 (ASX:XJO): Woolworths withdraws API proposal, tech shares rebound
• 5 things to watch on the ASX 200 on Friday

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 has no position in any of the stocks mentioned. 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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Exchange-traded funds (ETFs) can be an effective way to invest in a share market or in a particular sector. January 2022 could be a good month to find some ETF opportunities.

Investors can get useful diversification or a targeted allocation from the array of different options out there.

These two could be ideas to consider this month:

Betashares Global Cybersecurity ETF (ASX: HACK)

This ETF is focused, as the name suggests, on cybersecurity businesses around the world. Around 92% of the businesses are listed in the US, so it’s mostly an American-focused investment. However, those underlying businesses do typically earn profit globally.

As BetaShares says, with cybercrime on the rise, the demand for cybersecurity services is expected to “grow strongly for the foreseeable future”.

Looking at numbers provided by Statista, the global cybersecurity market is expected to grow from $137.6 billion in 2017 to $248.3 billion by 2023.

So what businesses are actually in the Betashares Global Cybersecurity ETF? At the moment, the biggest positions are: Accenture, Cisco Systems, Palo Alto Networks, Crowdstrike, Cloudflare, Juniper Networks, Booz Allen Hamilton, Leidos, VMware and Akamai Technologies.

Past performance is not a reliable indicator of future performance. However, after accounting for the annual management costs of 0.67%, the net returns over the past five years has been an average of 22.4% per annum.

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

This is another ETF from BetaShares. It’s both geographic and sector focused. This investment is about the 50 biggest technology businesses in Asia, outside of Japan.

The three main places that are represented here are China (46.2%), Taiwan (24.6%) and South Korea (17.3%). India, with a 6.6% weighting, is the fourth biggest.

Many of Asia’s biggest tech names are in this portfolio. There are three positions that have a weighting of more than 10%: Taiwan Semiconductor Manufacturing (12.7%), Samsung Electronics (11.8%) and Tencent (10.2%).

Other businesses that have an allocation of at least 4% includes Alibaba (8.6%), Meituan (5.7%), Infosys (5.2%) and JD.com (4%).

The three sectors with the biggest weighting within this tech ETF are benefiting from growth tailwinds. Those three sector allocations are internet and direct marketing retail (25.9%), semiconductors (20.6%) and interactive media and services (17.1%).

BetaShares says that due to its younger, tech-savvy population, Asia is surpassing the West in terms of technological adoption and the sector is anticipated to remain a growth sector.

This potential investment has a 0.67% annual fee. Since inception in September 2018, the BetaShares Asia Technology Tigers ETF has returned an average of 16.4% per annum.

The post 2 top ETFs that could be buys in January 2022 appeared first on The Motley Fool Australia.

More reading

• Here’s how the BetaShares Cybersecurity ETF (ASX:HACK) beat the ASX 200 in 2021
• 3 ASX ETFs for smart investors in 2022
• 3 high quality ETFs for ASX investors in January
• Here are 2 fantastic ETFs for ASX investors in 2022
• 2 exciting tech ETFs for ASX investors in 2022

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. owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers 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 Medibank Private Ltd (ASX: MPL) share price had a modest run over the past 12 months. The company managed to navigate itself through tough market conditions caused by COVID-19.

In 2021, Medibank shares gained 11%, which was almost in line with the broader S&P/ASX 200 Index (ASX: XJO). The latter rose around 13.5% across the same timeframe.

At yesterday’s market close, the private health insurance company’s shares closed 0.3% higher to $3.40 apiece. A sharp contrast compared to the benchmark index which fell heavily by 2.74% to 7,358.3 points.

What happened to the Medibank share price in 2021?

The Medibank share price rose strongly during the first half of the year, underpinned by solid growth across key financial metrics.

Management noted that more people are continuing to prioritise their health and wellbeing through private health insurance. This is due to the uncertainty surrounding COVID-19 and heightened pressure on the public system.

Notably, the company experienced its biggest growth in more than 10 years, with market share up 37 basis points. 

In addition, ongoing focus on Medibank customers led to improved retention, and record customer advocacy levels.

Undoubtedly, this helped push the company’s shares to near record highs during the months of August and September.

Fast-forward to November, Medibank shares slightly backtracked due to the rapid spread of the Omicron variant. Rules regarding density limits as well as ongoing restrictions in Victoria and New South Wales have impacted the health system.

The uncertainty of when the post-COVID era will actually happen has driven the company’s shares momentarily lower.

Is this a buying opportunity?

A couple of brokers weighed in on the Medibank share price during the final months of 2021.

Multinational investment bank, Macquarie raised its 12-month price target by 2.9% to $3.55 for Medibank shares. This implies an upside of around 4.4% based on the current share price.

Following suit, Australian investment firm, Morgans also lifted its assessment on Medibank shares by 8.2% to also $3.55. Its analysts believe that there is still some value left in the private health insurance company.

The post How did the Medibank (ASX:MPL) share price perform in 2021? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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 no position in any of the stocks mentioned. 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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