Day: April 2, 2022

3 very exciting ETFs for ASX investors this month

ETF written in gold with dollar signs on coin.

ETF written in gold with dollar signs on coin.

If you’re looking for an easy way to invest your hard-earned money, then exchange traded funds (ETFs) could be worth considering.

This is because rather than deciding on which individual shares to put your money into, ETFs let you invest in a large group of shares through just a single investment.

With that in mind, here are three ETFs that are popular with investors right now:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF for investors to look at is the BetaShares Asia Technology Tigers ETF. This ETF tracks the performance of an index comprising around 50 of the largest technology shares in Asia (excluding Japan). BetaShares notes that the sector is expected to remain a growth sector for some time to come thanks to the region’s younger and more tech savvy population. Among the ETF’s holdings are Alibaba, Baidu, JD.com, Pinduoduo, Samsung, Taiwan Semiconductor, and Tencent. Regulatory concerns have been weighing heavily on these shares and therefore the ETF this year. While this is disappointing, it could have created a very attractive opening for long term investors.

BetaShares Crypto Innovators ETF (ASX: CRYP)

Another ETF for investors to look at is the BetaShares Crypto Innovators ETF. BetaShares highlights that this ETF provides “picks and shovels” exposure to the crypto market with investments in companies building crypto mining equipment, crypto trading venues, and other key services. At present, the ETF is invested in around 40 crypto focused companies including Coinbase, Riot Blockchain, and Microstrategy. In addition, the ETF owns shares with indirect exposure such as Block/Square, PayPal, and Robinhood.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

A final ETF for ASX investors to look at is the VanEck Vectors Video Gaming and eSports ETF. The fund manager, VanEck, notes that this ETF gives investors exposure to the biggest players in a global video game market benefitting from an estimated 2.7 billion active gamers globally. Among the companies included in the fund are AMD, Electronic Arts, Nintendo, Nvidia, Roblox, and Take-Two. VanEck believes these companies are well-placed for growth thanks to the increasing popularity of video games and eSports.

The post 3 very exciting ETFs for ASX investors this month 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 Betashares Crypto Innovators ETF. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF and 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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2 ASX 200 dividend shares brokers rate as buys

If you’re looking for ASX dividend shares to buy, then the ones listed below could be worth considering.

Here’s what you need to know about these dividend shares:

Rio Tinto Limited (ASX: RIO)

The first dividend share to consider is Rio Tinto. This mining giant is being tipped to reward shareholders with huge dividends in the coming years thanks to strong commodity prices and its return to production growth.

Goldman Sachs, for example, is very positive on Rio Tinto and has a buy rating and $131.50 price target on its shares.

The broker likes the miner due to its attractive valuation and strong free cash flow. Goldman also notes that the miner has compelling low emission aluminium exposure through its ELYSIS inert anode technology, which it believes could be worth billions.

As for dividends, Goldman expects fully franked dividends of around US$9.00 per share in FY 2022 and FY 2023. Based on the current Rio Tinto share price of $120.34 and current exchange rates, this will mean yields of approximately 10%.

Wesfarmers Ltd (ASX: WES)

Another ASX dividend share to consider is one of Australia’s leading conglomerates, Wesfarmers.

It is the company behind brands such as Kmart, Officeworks, Priceline, Catch, Bunnings, and a wide range of industrial businesses.

Combined, the team at Morgans believe the company is well-placed for growth over the long term. In light of this, it recently put an add rating and $58.50 price target on its shares.

In respect to dividends, Morgans is forecasting fully franked dividends per share of $1.62 in FY 2022 and $1.81 in FY 2023. Based on the current Wesfarmers share price of $49.59, this will mean yields of 3.3% and 3.6%, respectively.

Morgans commented: “WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart, Target and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. While Covid-related staff shortages are proving to be a challenge, the core Bunnings division (>60% of group EBIT) remains a solid performer as consumers continue to invest in their homes. We see the recent pullback in the share price as a good entry point for longer term investors.”

The post 2 ASX 200 dividend shares brokers rate as buys 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

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 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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Why did the IAG share price underperform the ASX 200 by 11% in March?

A man slumps his shoulders as he stands under his umbrella in the rain.A man slumps his shoulders as he stands under his umbrella in the rain.

The Insurance Australia Group Ltd (ASX: IAG) share price struggled through March.

Its suffering came as major floods wreaked havoc in parts of Australia and news of a second business interruption test case hit the market.

At the end of last month, the IAG share price was $4.38. That’s 4.78% lower than where it ended February.

Over the same period, the S&P/ASX 200 Index (ASX: XJO) gained 6.39%, leaving the IAG underperforming by 11.17% for the month.

So, what weighed on the insurance giant’s stock in March? Let’s take a look.

Why did the IAG share price struggle through March?

March started out rough for many Australians, with major floods hitting parts of southeast Queensland and northern New South Wales.

Understandably, this likely led some market watchers to wonder if the cost to repair damages would dint the insurer’s bottom line.

IAG was quick to mitigate concerns, releasing a statement on 1 March saying it was too early to understand the true cost of the disaster. However, it estimated it could be as high as $95 million.

The insurer followed up on that statement the following week.

Then, it announced that as of 6am on 9 March, it had received 24,000 claims related to the weather event. It was estimated to lead to a $74 million damage bill – less than what was previously predicted.

Though, due to the storms and flooding, IAG increased its financial year 2022 net natural perils claims cost from $1.045 billion to approximately $1.1 billion.

Interestingly, despite falling in intraday trade on 1 March and 9 March, the IAG share price ended both sessions flat with its previous close.

An update on the second business interruption test case also weighed on the insurer’s stock last month.

The company noted that, while it wasn’t adjusting its $1,222 million net provision for business interruption claims, some indications made it believe a release from the provision will occur and will likely be recognised over time.

The IAG share price slumped 1.3% the day the update was released.

What else happened last month?

The company also made headlines last month with reports claiming it’s being taken to Federal Court to face around $300 million of claims.

The legal action was reportedly spurred by the company’s now-sold 50% stake in Bond and Credit Co.

Bond and Credit Co is an insurer. It’s said to have sold credit policies to cover entities related to the now-defunct Greensill Capital.

Previously, IAG stated it had no exposure to the credit policies. Commenting on the matter last month, an IAG spokesperson said the company’s stance hadn’t changed and it was anticipating litigation.

It’s unlikely the reports budged the IAG share price. Though, they might have shaken some market watchers’ confidence in the company.

IAG share price snapshot

The IAG share price underperformed the ASX last month. However, it’s been ultimately trading in line with the index in 2022.

As of the end of March, the IAG share price was 1.79% lower than its previous close. At that same point, the ASX 200 had slipped 1.19% year to date.

Right now, shares in IAG are trading for 8.8% less than they were last year. Meanwhile, the ASX 200 has gained 9.9% over the last 12 months.

The post Why did the IAG share price underperform the ASX 200 by 11% in March? appeared first on The Motley Fool Australia.

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

Before you consider IAG, 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 IAG 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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Motley Fool contributor Brooke Cooper 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 Insurance Australia 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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These were the worst performers on the ASX 200 last week

The S&P/ASX 200 Index (ASX: XJO) was on form again and recorded its third consecutive weekly gain. Over the period, the benchmark index rose 1.2% to end it at 7,493.8 points.

Unfortunately, not all shares were able to follow the market’s lead. Here’s why these were the worst performers on the ASX 200 last week:

Ramelius Resources Limited (ASX: RMS)

The Ramelius share price was the worst performer on the ASX 200 last week with a 7.5% decline. Investors were selling down gold miners after the price of the precious metal weakened. This has been driven by expectations for quicker than expected rate increases from the US Federal Reserve. The S&P/ASX All Ords Gold index dropped 1.5% over the five days.

Imugene Limited (ASX: IMU)

The Imugene share price was a close second with a decline of 7.4% last week. This was despite there being no news out of the immuno-oncology focused biopharmaceutical company. Though, it is worth noting that Imugene’s shares are on a downward trend right now. So much so, they are now down by 42% since the start of the year. Valuation concerns appear to be weighing on its shares.

James Hardie Industries (ASX: JHX)

The James Hardie share price was out of form and tumbled 7.1% over the five days. Once again, this was despite there being no news out of the building materials company. Though, James Hardie’s shares have come under significant pressure since missing materially with its third quarter earnings in February. The company’s shares hit a 52-week low last week.

Harvey Norman Holdings Limited (ASX: HVN)

The Harvey Norman share price was a poor performer and dropped 7% last week. The majority of this decline is attributable to the retailer’s shares trading ex-dividend. In February, Harvey Norman released its half year results and declared a fully franked interim dividend of 20 cents per share. This will now be paid to eligible shareholders next month on 2 May.

The post These were the worst performers on the ASX 200 last week 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

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 Harvey Norman Holdings Ltd. The Motley Fool Australia owns and has recommended Harvey Norman Holdings 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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