If you’re not yet invested in exchange traded funds (ETFs), you could be missing out.

For example, you only need to look at the market beating returns from these ETFs to see how they could have complemented your portfolio.

Here’s what you need to know about these ETFs:

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

The first market-beating ETF for investors to look at is the VanEck Vectors Morningstar Wide Moat ETF. This fund aims to invest in a group of companies with sustainable competitive advantages and attractive valuations.

Among the ~50 companies included in the fund are the likes of Alphabet, Amazon, American Express, Boeing, Coca-Cola, McDonalds, Microsoft, Philip Morris, Pfizer, and Salesforce.

Companies with competitive advantages have historically generated strong returns for investors. It is for this reason that Warren Buffett looks for these advantages when choosing his investments.

Over the last five years, the index the fund tracks has generated a return of 18.7% per annum. This would have turned a $10,000 investment into almost $23,500.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another market-beating ETF to consider is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to the world’s largest listed companies.

Vanguard notes that this ETF provides Australian investors with exposure to many of the world’s largest companies listed in major developed countries. It also offers low-cost access to a broadly diversified range of stocks that allows them to participate in the long-term growth potential of international economies outside Australia.

Among its 1529 holdings are the likes of Apple, Johnson & Johnson, JP Morgan, Nestle, Procter & Gamble, and Visa.

Over the last five years, the index the fund tracks has generated a return of 15.2% per annum. This would have turned a $10,000 investment into almost $20,300.

The post 2 market-beating ETFs for ASX investors in January appeared first on The Motley Fool Australia.

More reading

• How did the VanEck Morningstar Wide Moat ETF (ASX:MOAT) more than double the ASX 200’s returns in 2021?
• Is the Vanguard MSCI Index International Shares ETF (ASX:VGS) the most diversified ETF on the market?
• 2 excellent ETFs for ASX investors to buy and hold
• 2 ETFs for ASX investors to check out this month
• 3 ASX ETFs for smart 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 Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF and Vanguard MSCI Index International Shares 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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Key points

• ASX real estate shares can provide exposure to the property market
• Charter Hall Long WALE REIT owns a large portfolio of commercial properties with long rental contracts
• Brickworks is a leader in the building products industry, whilst also owning other assets with growth potential

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Financial experts often talk about different asset classes like shares and property. But there are a number of ASX real estate shares out there that might be better options than property.

In other words, the ASX share market can provide exposure to real estate investments so investors can directly or indirectly profit from property.

With that in mind, here are two ideas:

Charter Hall Long WALE REIT (ASX: CLW)

This is a real estate investment trust (REIT) which owns commercial properties. Those properties are predominately leased to corporate and government tenants on long-term leases.

It’s invested in a number of core sectors like office, industrial and logistics and retail.

At the latest count its portfolio amounts to around 550 properties, with an occupancy rate of more than 98% and a property value of $7 billion. Its weighted average lease expiry (WALE) is more than 12 years, providing substantial income visibility and stability.

It has in-built growth with its rental contracts, providing growth for its rental profit and distributions.

The ASX real estate share is experiencing ongoing valuation growth thanks to the current environment, including the low interest rate. In its December 2021 update, the business saw an 8.1% rise of the property valuations on paper.

This update meant the net tangible assets (NTA) per unit grew 14.4% to $5.85. The current Charter Hall Long WALE REIT share price is around 15% less than the NTA.

Ord Minnett currently rates it as a buy with a price target of $5.46. It’s expecting the business to pay a distribution yield of 6.3% in FY23.

Brickworks Limited (ASX: BKW)

This real estate ASX share provides domestic housing exposure through its Australian building products business. It has a number of businesses including Austral Bricks, concrete products and Bristle Roofing. It has 28 manufacturing sites and more than 45 design centres and studios across the country.

Brickworks is a 50% shareholder in an industrial property trust with gross assets of more than $2.5 billion and a long development pipeline. One project, which is scheduled to essentially be done by now, is a big new distribution warehouse for Amazon in Sydney.

The company has expanded to North America and has established itself as the largest brickmaker in the northeast of the US.

It also has a major shareholding in Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), which is a leading listed investment conglomerate.

The real estate ASX share’s normal dividend has been maintained or increased every year since 1976. That’s 45 years of stability. Brickworks says it’s proud of its long history of dividend growth, and the stability this provides to shareholders.

Brickworks recently announced it had purchased 121 hectares of land at Bringelly in South West Sydney to be used as a clay resource to support Austral Bricks. Brickworks is also selling 75 hectares of land at Oakdale East where a brick plant is located into the property trust. This will extend the development pipeline in order to meet the unprecedented demand for industrial development.

It’s rated as a buy by the broker Ord Minnett, with a price target of $26.20.

The post These 2 ASX real estate shares could be the best way to invest in property appeared first on The Motley Fool Australia.

More reading

• An ASX XI to take on the world
• Why Brickworks (ASX:BKW) shares are an ASX dividend favourite
• Citi rates these 2 ASX dividend shares as buys
• What’s the outlook for the Brickworks (ASX:BKW) share price in 2022?
• Are these 2 excellent ASX dividend shares buys in January?

Motley Fool contributor Tristan Harrison owns Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns and has recommended Brickworks and Washington H. Soul Pattinson and Company 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 Lake Resources N.L. (ASX: LKE) share price has been on fire over the last 12 months.

Since this time last year, the lithium developer’s shares have risen 900%.

This makes the Lake Resources share price one of the best performers on the Australian share market over the period.

Where next for the Lake Resources share price?

The good news is that one leading broker believes the Lake Resources share price still has plenty of gas in its tank and could drive even higher.

According to a recent note out of Bell Potter, its analysts have a speculative buy rating and $1.37 price target on its shares.

Based on the current Lake Resources share price of $1.00, this implies potential upside of 37% over the next 12 months.

Why is Bell Potter bullish?

The note reveals that Bell Potter is positive on Lake Resources due to its lithium exposure and strategic appeal. The latter is because of its uncommitted product offtake and independent share register.

Its analysts explained: “LKE is developing the Kachi lithium brine project located in north western Argentina. A March 2021 prefeasibility study evaluated a 25.5ktpa lithium carbonate project with average annual EBITDA of $260m and a post-tax NPV8 of US$1,580m.”

“Kachi is unique in that LKE is aiming to employ direct lithium extraction through ion exchange technology to recover lithium from its brine Resource. The key advantages of this technology are a smaller environmental footprint, lower carbon emissions and greater process control. A definitive feasibility study for Kachi is due by mid-2022. With uncommitted product offtake and an independent share register, LKE has strategic appeal,” the broker concluded.

If Bell Potter is on the money with its recommendation, it could be another year of market beating returns for the Lake Resources share price in 2022.

The post Why this ASX lithium share could be heading 37% higher appeared first on The Motley Fool Australia.

More reading

• Bell Potter names 2 ASX mining shares to buy in 2022
• The ASX share market coverage that captivated readers in 2021

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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Key points

• The fund manager Wilson Asset Management has revealed 2 small cap ASX shares that it likes
• Packaging business Pro-Pac Packaging is rated as a buy due to its good valuation
• DGL Group is liked thanks to the large rise in demand of Adblue and the company’s high barriers to entry

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The fund manager Wilson Asset Management (WAM) has recently identified two top small cap ASX shares that it owns in its portfolio that could be buy ideas.

WAM operates several listed investment companies (LICs). Some focus on larger companies like WAM Leaders Ltd (ASX: WLE) and WAM Capital Limited (ASX: WAM).

There’s also one called WAM Microcap Limited (ASX: WMI) which targets small cap ASX shares with a market capitalisation typically under $300 million at the time of acquisition.

WAM says WAM Microcap targets the most exciting undervalued growth opportunities in the Australian microcap market.

The WAM Microcap portfolio has delivered gross returns (that’s before fees, expenses and taxes) of 24.6% per annum since inception in June 2017, which is superior to the S&P/ASX Small Ordinaries Accumulation Index average return of 12%.

These are the two small cap ASX shares that WAM outlined in its most recent monthly update:

Pro-Pac Packaging Limited (ASX: PPG)

The Pro-Pac Packaging share price has been falling in recent months, however WAM still likes the business.

The fund manager attributed the poor performance to pressures from the Omicron COVID variant.

What does Pro-Pac Packaging do? It supplies a wide range of packaging products and services into industries such as primary produce, food and food processing, agriculture and fast moving consumer goods.

In the small cap ASX share’s December trading update, it noted it was experiencing labour shortages, inflationary pressures and ongoing global supply chain problems that are impacting the business.

WAM invested in the business because the fund manager was attracted by the valuation and management’s plan to reinvigorate revenue growth.

It’s expected that the COVID-19 impacts will eventually subside and WAM remains holders of the company within the portfolio based on its attractive valuation.

DGL Group Ltd (ASX: DGL)

One of the small cap ASX shares that featured in the WAM Microcap portfolio as a top 20 position was DGL Group.

This small cap ASX share was described as a founder-led company offering specialty chemical formulation and manufacturing, warehousing and distribution, waste management and environmental solutions to over 3,100 customers across Australia and New Zealand.

WAM noted that DGL Group recently held its first annual general meeting (AGM) where management confirmed that the business was on track to exceed its earnings expectations that were outlined in the prospectus with its initial public offering (IPO) in May 2021.

After the acquisition of AUSblue in October 2021, DGL Group has seen a surge in demand in the past month for diesel exhaust fluid AdBlue. This fluid reportedly removes nitrous oxides, which helps reduce harmful emissions and should provide a positive tailwind for earnings in the near-term.

The fund manager said that it invested in DGL Group due to its strong barriers to entry and its ability to pursue strategic and acquisitions that add to earnings, both of which “will underpin its growth profile over the years to come.”

The post 2 exciting small cap ASX shares to buy: experts appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares giving the gift of gains heading into Christmas
• Wilson Asset Management believes these 2 leading small cap shares are a buy

Motley Fool contributor Tristan Harrison owns WAM MICRO FPO. 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 DGL 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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