Day: March 21, 2022

Here are 4 popular ETFs for ASX investors to check out

ETF written in yellow with a yellow underline and the full word spelt out in white underneath.

ETF written in yellow with a yellow underline and the full word spelt out in white underneath.

Are you looking for some exchange traded funds (ETFs) to add to your portfolio this month? If you are, it could be worth taking a closer look at the four ETFs listed below.

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

BetaShares Cloud Computing ETF (ASX: CLDD)

The first ETF to look at is the BetaShares Cloud Computing ETF. This ETF gives investors exposure to a group of leading global companies involved in the delivery of computing services, servers, storage, databases, networking, software, analytics and other services over the internet. Through this ETF, you’ll be buying a slice of cloud-based tech companies such as Dropbox, Netflix, Shopify, and Zoom.

BetaShares Global Energy Companies ETF (ASX: FUEL)

Another ETF to look at is the BetaShares Global Energy Companies ETF. This ETF provides investors with access to some of the biggest energy companies in the world. BetaShares notes that these are larger, more geographically diversified, and more vertically integrated than Australian-listed energy companies. Among its holdings are BP, Chevron, ExxonMobil, and Royal Dutch Shell.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another ETF which could be worth checking out is the BetaShares NASDAQ 100 ETF. This exchange traded fund gives investors access to the 100 largest businesses on Wall Street’s technology-focused NASDAQ index. This includes tech giants such as Amazon, Apple, Alphabet, Facebook/Meta, Microsoft, Netflix, and Nvidia.

VanEck Vectors Australian Banks ETF (ASX: MVB)

A final ETF for investors to look at is the VanEck Vectors Australian Banks ETF. This ETF allows you to own a slice of all the big four banks, the regionals, and investment bank Macquarie Group Ltd (ASX: MQG) through a single investment. And as the banks tend to pay their shareholders big dividends, this ETF is likely to offer a generous yield most years.

The post Here are 4 popular ETFs for ASX investors to check out appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

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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 and has recommended BETANASDAQ ETF UNITS and BetaShares Global Energy Companies ETF – Currency Hedged. The Motley Fool Australia owns and has recommended BETANASDAQ ETF UNITS. 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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Wesfarmers (ASX:WES) now has control of API, but is the real fight just beginning?

Elderly couple look sideways at each other in mild disagreementElderly couple look sideways at each other in mild disagreement

The Wesfarmers Ltd (ASX: WES) share price finished in the green today amid another acquisition milestone.

Wesfarmers shares were trading at $50.68 at market close, a 0.7% gain. In comparison, the S&P/ASX 200 Index (ASX: XJO) slipped 0.22%.

Let’s take a look at what could impact Wesfarmers in the future.

What challenges lie ahead?

Wesfarmers recently received shareholder approval to take over Australian Pharmaceutical Industries (ASX: API), the owner of Priceline. Today, the Federal Court approved the scheme of arrangement for this acquisition.

However, many of API’s Priceline network pharmacies are independently owned franchises. This means Wesfarmers will need to work with 1400 independent retailers, The Financial Review reported.

The publication quoted former financial services chief executive Andrew Reitzer, who has previously said working with independently owned retailers was like “herding cats”.

The problem with this business model is that independent retailers are exactly that – fiercely independent. They have strong opinions on what works best for their business and don’t like being told what to do and when to do it.

Wesfarmers CEO Rob Scott has acknowledged the differences working with franchises but also recognises the similarities, the publication reported. He said:

There are differences in terms of managing a successful franchise group, but there are a lot of basic principles around product, pricing, supply chain, digital engagement and e-commerce that will still be very relevant.

API shares will be suspended from the close of trading on 22 March.

WAM Leaders Ltd (ASX: WLE) portfolio manager John Ayoub has recently named Wesfarmers as one of five reliable shares that can ride out 2022 volatility.

Wesfarmers share price snapshot

The Wesfarmers share price has climbed 0.14% in the past 12 months but lost 14.54% in the year to date.

Over the past month, Wesfarmers shares have jumped 0.54% and are 3.05% higher in the last week.

Wesfarmers has a market capitalisation of about $57.5 billion based on the current share price.

The post Wesfarmers (ASX:WES) now has control of API, but is the real fight just beginning? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Wesfarmers right now?

Before you consider Wesfarmers , you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Wesfarmers wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

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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 Wesfarmers 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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How have ASX artificial intelligence shares been performing lately?

appen share price

appen share price

As most investors would be acutely aware of, the share market has taken its participants on a wild ride over 2022 thus far. Take the performance of the S&P/ASX 200 Index (ASX: XJO) just today as an emblem. The ASX 200 rocketed close to 1% soon after open, but ended up losing all of its goodwill by the afternoon, and ended up closing down by 0.22% by the end of the trading day. In 2022 so far, the ASX 200 remains down by 4.1%. But some sectors have been hit harder than others. So let’s check out how ASX artificial intelligence shares have been faring of late. 

We know that the tech sector hasn’t been the luckiest this year. In fact, many ASX tech shares are amongst the ASX 200’s worst performers in 2022. But let’s see if this extends to artificial intelligence shares. 

AI: Making it Appen…

Let’s first check out what could arguably be described as the ASX artificial intelligence share posterchild, Appen Ltd (ASX: APX). Appen shares had a strong day today, rising 1.15% to $7.05 a share. But unfortunately, that doesn’t make up for the rather dismal year that this annotated dataset company has had to endure. Appen remains down by a nasty 36.7% in 2022 thus far. 

That puts the company’s 12-month falls at an even more depressing 60.88%. Investors seem to have been put off by Appen’s most recent earnings report, which we all got a look at back in February. The shares have lost more than 17% since that report was dropped alone. 

In these full-year results, Appen reported an 8% increase in revenue, as well as a 3% rise in underlying earnings. However, it might have been the 20% slump in net profits after tax that really turned investors off.

So not a great time right now for Appen and its shareholders.

Another ASX artificial intelligence share to check out

But let’s check out another artificial intelligence company for the ASX in Brainchip Holdings Ltd (ASX: BRN). Brainchip has been around for a while, but really grabbed investors’ attention back in 2020 when its shares rocketed more than 1,500% in just 5 months. The company also went on another run that saw its shares gain more than 160% between Christmas eve last year and 19 January. 

Here we have a tale on entry points in 2022. Year to date, Brainchip is still up a pleasing 20.25%, even after accounting for today’s nasty 3.056% drop to 95 cents a share. 

However, if you were unlucky enough to buy Brainchip shares on 19 January at the company’s all-time high of $2.34 a share, you’d be down close to 60% on your money. The company has made a series of announcements and patent successes over this year, which seems to have helped keep its share price especially volatile.   

So that’s how 2 ASX artificial intelligence shares have been faring lately. It’s been a mixed bag for this fledgling corner of the market. But watch this space, because few would expect the artificial intelligence space to come up with anything but world-changing ideas over the next few years. 

The post How have ASX artificial intelligence shares been performing lately? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd. 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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How can investors in ASX shares hedge their portfolios amid uncertainty in 2022?

A businessman looks around uncertain as he walks through a tall hedge maze.A businessman looks around uncertain as he walks through a tall hedge maze.

ASX shares across the different sectors have delivered wildly different outcomes so far in 2022.

Here’s what we mean.

Since the opening bell on 4 January, ASX shares, as measured by the All Ordinaries Index (ASX: XAO), are down 4.64%.

That’s not great. But it sure beats the 18.2% year-to-date losses posted by the S&P/ASX All Technology Index (ASX: XTX).

On the flip side of the coin, and helping support the All Ords in 2022, are energy shares. As witnessed by the 17.9% gain in the S&P/ASX 200 Energy Index (ASX: XEJ).

ASX shares in the resource and commodity space have done well also.

And the gold miners have handily outperformed, with the S&P/ASX All Ordinaries Gold Index (ASX: XGD) up 6.6% so far this year.

And all of this has come as global uncertainty has soared.

Fast rising interest rates and a European war roil ASX shares

Early in the New Year, investors in ASX shares came to grips with the reality that rising inflation rates weren’t so transitory after all. Meaning interest rate hikes from the Reserve Bank of Australia were likely to come. And come significantly sooner than the central bank had forecast just last year.

Then the world was left in shock by Russia’s brutal invasion of neighbouring Ukraine.

Uncertainties around the duration and scale of Russia’s war have not diminished since its troops crossed the border.

Meanwhile, investors in ASX shares are still faced with how interest rate hikes will impact their holdings.

With that in mind, The Motley Fool turned to Josh Gilbert, market analyst at multi-asset investment platform eToro, for his take on how investors can hedge their portfolios in these highly uncertain times.

Gold, commodities, oil and Big Tech

Addressing the heightened risks facing investors in ASX shares and global equities, Gilbert told us:

Commodities are the obvious asset of choice when planning to hedge a portfolio against imposed risks.

In times of uncertainty, gold is the first asset investors generally turn to as it’s been used for decades as a store of value and tends to perform well in volatile markets. On top of this, oil has been an asset class that investors are rotating into, given its tight supply and high demand.

Atop commodities, Gilbert also said that investors could consider other cyclical assets, like value stocks, to hedge their portfolios.

“These assets tend to be the most sensitive to economies re-opening, yet still have strong GDP growth and will likely ride out waves of uncertainty,” he said.

While technology shares have broadly taken a beating in 2022 (not just ASX tech shares, the United States NASDAQ is down 12.3% this year too), Gilbert said the biggest players in this space could offer investors some defensive hedging.

According to Gilbert:

We also see Big Tech as the ‘new defensives’. These are companies that have dominant market positions, strong growth, high margins and fortress balance sheets.

While many Big Tech stocks often have high valuations, investors are beginning to see them as ‘all-weather’ assets that can successfully navigate whatever the Federal Reserve, the economy, or geopolitical tensions throw at them.

The post How can investors in ASX shares hedge their portfolios amid uncertainty in 2022? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

More reading

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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