Day: May 28, 2022

3 fantastic ETFs for ASX investors to buy next week

ETF written in blue with a man and woman sitting on their laptops.

ETF written in blue with a man and woman sitting on their laptops.

There are a lot of exchange traded funds (ETFs) funds out there for investors to choose from.

Three quality ETFs that you may want to look deeper into are listed below. Here’s what you need to know about them:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The BetaShares Asia Technology Tigers ETF has come under significant pressure this year due to weakness in the tech sector and concerns about extended lockdowns in China. And while it is unclear if it has reached a bottom yet, the risk-reward on offer for long-term investors appears very attractive at the current level. Particularly given the quality of the companies in the ETF. This includes the leaders of the Asian technological revolution, such as Alibaba, Baidu, JD.com, Pinduoduo, and Tencent.

BetaShares Crypto Innovators ETF (ASX: CRYP)

Another quality ETF to look at is the BetaShares Crypto Innovators ETF. It has also come under pressure this year due to weakness in the tech sector and crypto market. And once again, while it’s impossible to know if the selloff is over, investors with a long-term focus may do very well from this high risk ETF. Especially if you believe that cryptocurrencies are going to change the world. That’s because this ETF gives investors access to the growth potential of the crypto economy through exposure to a portfolio of companies at the forefront of the crypto world. This includes the likes of Coinbase, Silvergate, and Riot Blockchain.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

At the other end of the risk scale is the Vanguard MSCI Index International Shares ETF. It could be a top option for investors looking for a low risk way to diversify their portfolio. That’s because this popular ETF provides investors with exposure to a massive ~1,500 of the world’s largest listed companies. Among the companies you’ll be investing in are giants such as Amazon, Apple, Johnson & Johnson, JP Morgan, Nestle, and Visa.

The post 3 fantastic ETFs for ASX investors to buy next 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

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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 positions in and has recommended Betashares Crypto Innovators ETF and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers 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 Scott Phillips.

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Here’s why I think these 2 ASX growth shares are top buys in May

A girl is handed an oversized ice cream cone with lots of different flavours.

A girl is handed an oversized ice cream cone with lots of different flavours.

I think that ASX growth shares are looking really attractive in May 2022. The recent declines and volatility mean that prices are lower and values look better.

The ASX share market can be like a supermarket sometimes. There are times when particular products are on sale and may seem cheap enough to buy. However, if nearly everything is on sale at the supermarket, I’d want to choose my favourite meal ideas at the better price.

Translating that into ASX shares – a lot of ASX growth shares are much cheaper than they were at the start of the year. There are a lot of investments that now look like bargains to me. Below are two of my favourites.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is like the Amazon of Australian homewares and furniture. It sells hundreds of thousands of products. A lot of those products are shipped directly by suppliers, which reduces shipping times and reduces the need for Temple & Webster to hold as much inventory.

How much cheaper is the Temple & Webster share price? It’s down around 60% in 2022. Ouch. But, I think it’s now a really good long-term opportunity.

There is a long-term trend for more shopping being done online, which I think will benefit the business over time. It already claims to be a leading e-commerce retailer.

I think that the compounding growth of the business is compelling. In the four months to 30 April 2022, the business saw 23% revenue growth compared to the prior year. This was growth of 116% compared to 2020.

Increasing revenue and scale will help grow the operating leverage, allowing the business to re-invest for growth in things like marketing, technology development, product range and the overall customer experience. Increased scale will also help the ASX growth share achieve better unit economies, including cost advantages in product sourcing, logistics and marketing.

At this lower Temple & Webster share price, I reckon the business has a good future ahead.

Xero Limited (ASX: XRO)

The cloud accounting software business is my other pick for May 2022 (and the long-term).

There aren’t many large, high-quality tech shares on the ASX. But I think Xero is one of those great names.

It has a very gross profit margin of 87.3% — this is creeping higher every year. A strong gross profit margin means that most of the revenue turns into gross profit. That gross profit can be spent on areas that help grow and improve Xero, such as product development, marketing, wages and so on.

Eventually, I think that a high gross profit margin will allow Xero to generate a large net profit after tax (NPAT) when it is no longer investing so heavily in growth.

There are two other things that I really like about this ASX growth share.

It has a global subscriber base, which is quickly growing. At the end of FY22, it had 3.3 million subscribers (up 19% year on year). This is spread across places like Australia, the United Kingdom, North America and South Africa. There is a very large addressable market for Xero to target.

The other thing I like about Xero is its software as a service (SaaS) nature. It receives monthly revenue from subscribers and this allows investors (and management) to easily see what the next 12 months of revenue could be.

Xero’s annualised monthly recurring revenue (AMRR) increased 28% to NZ$1.2 billion in FY22. The actual FY22 operating revenue was NZ$1.1 billion. So, there’s already some revenue growth baked in for the next 12 months.

But these two ASX growth shares aren’t the only two I’d be happy to go shopping for. We’ll look at some of my other favourites another time.

The post Here’s why I think these 2 ASX growth shares are top buys in May 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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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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 positions in and has recommended Amazon, Temple & Webster Group Ltd, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Amazon and Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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How to turn $20,000 into $180,000 in 10 years with ASX shares

Happy young man and woman throwing dividend cash into air in front of orange background

Happy young man and woman throwing dividend cash into air in front of orange background

I’m a big fan of buy and hold investing and believe it is the best way for investors to grow their wealth.

To demonstrate how successful it can be, I like to pick out a number of popular ASX shares to see how much a single $20,000 investment 10 years ago would be worth today.

This time around I have picked out the three ASX shares that are listed below:

Carsales.Com Ltd (ASX: CAR)

Thanks to the structural shift online for auto listings, its expansion internationally, and acquisitions, Carsales has been growing at a solid rate over the last decade. This has underpinned strong returns for investors, with its shares averaging a total return of 16.2% per annum since 2012. This means that if you had invested $20,000 into Carsales’ shares 10 years ago, it would be worth $90,000 today.

Goodman Group (ASX: GMG)

Another market beater during the last 10 years has been this integrated commercial and industrial property company. This has been driven by Goodman’s highly successful focus on investing in and developing high quality industrial properties in strategic locations close to large urban populations and in and around major gateway cities globally. Over the period, the company’s shares have generated an average total annual return of 20.8% for investors. This would have turned a $20,000 investment into $130,000 today.

ResMed Inc. (ASX: RMD)

Finally, ResMed shares have been a great place to invest over the last decade. This sleep treatment company’s shares have beaten the market thanks to its consistently solid sales and earnings growth over the period. ResMed’s growth has been driven by its industry-leading solutions and the growing awareness and prevalence of sleep disorders. Over the last 10 years, ResMed’s shares have generated an average total return of 24.7% per annum. This means that an investment of $20,000 into its shares in 2012 would have grown to be worth~$180,000 this year.

The post How to turn $20,000 into $180,000 in 10 years with ASX shares appeared first on The Motley Fool Australia.

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

Before you consider ResMed, 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 ResMed 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 James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. and carsales.com Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Experts are tipping these ASX dividend shares as buys

An ASX dividend investor holds a fanned out bunch of $40 Australian cash notes and wonders whether any ASX lithium shares pay dividends

An ASX dividend investor holds a fanned out bunch of $40 Australian cash notes and wonders whether any ASX lithium shares pay dividends

Are you looking for dividend shares to buy? If you are, the two listed below could be worth considering.

Both are rated as buys and tipped to provide investors with attractive yields. Here’s what you need to know:

Charter Hall Long WALE REIT (ASX: CLW)

The first ASX dividend share for income investors to look at is the Charter Hall Long Wale REIT.

This REIT manages a wide range of listed and unlisted property funds for institutional and retail investors with a focus on office, industrial, and retail sectors. This includes 78 hotel properties that are all leased to Endeavour Group Ltd (ASX: EDV).

As its name implies, the Charter Hall Long WALE REIT boasts very long leases. As of its last update, its weighted average lease expiry stood at a sizeable 12.2 years. This is a big positive and provides great visibility on future earnings.

Citi is very positive on the REIT. It currently has a buy rating and $5.71 price target on its shares.

As for dividends, Citi is forecasting dividends per share of 30.8 cents in FY 2022 and 30.9 cents in FY 2023. Based on the current Charter Hall Long Wale REIT share price of $4.86, this will mean yields of ~6.3% for both years.

HomeCo Daily Needs REIT (ASX: HDN)

Another buy-rated ASX dividend share to look at is the HomeCo Daily Needs REIT.

It is another property company but this time with a focus on convenience-based assets. This includes neighbourhood retail and large format retail (retail parks).

Goldman Sachs is a fan of the company and believes it is well-positioned to continue its growth over the medium term thanks to “the shift to omni channel retailing.” In addition, the broker feels HomeCo Daily Needs REIT’s shares are undervalued based on its positive growth outlook and diversified tenant base.

Goldman has a buy rating and $1.70 price target on the company’s shares, which is meaningfully higher than the current HomeCo Daily Needs share price of $1.33.

It also expects some big dividend yields in the near term and is forecasting dividends per share of 8 cents in FY 2022 and then 9 cents in FY 2023. This equates to yields of 6% and 6.9%, respectively.

The post Experts are tipping these ASX dividend shares 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 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 Scott Phillips.

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