Month: May 2022

If you’re looking for an easy way to invest in international shares for diversification purposes, then exchange traded funds (ETFs) could be the answer.

But which ETFs should you look at right now? Listed below are three high quality ETFs that could be worth considering:

BetaShares Global Energy Companies ETF (ASX: FUEL)

The first ETF to look at is the BetaShares Global Energy Companies ETF. With oil prices at sky high levels and looking unlikely to pullback materially any time soon, the companies included in this ETF appear well-placed to deliver bumper profits in the near term. Among the fund’s holdings are a range of energy giants including BP, Chevron, ExxonMobil, and Royal Dutch Shell.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another ETF for investors to look at is the BetaShares NASDAQ 100 ETF. This high quality ETF gives investors access to many of the world’s greatest companies. This includes iconic companies such as Alphabet, Amazon, Apple, Facebook, Microsoft, Netflix, and Tesla. While these companies have been sold off this year amid weakness in the tech sector, this could have created a buying opportunity for long term focused investors.

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. As its name implies, this popular ETF gives investors exposure to the biggest companies in a global video game market estimated to comprise 2.7 billion active gamers. Among the shares that are included in the fund are AMD, Electronic Arts, Nintendo, Nvidia, Roblox, and Take-Two. VanEck notes that these companies are well-placed to benefit from the increasing popularity of video games and eSports.

The post 3 high quality ETFs for ASX investors to buy now appeared first on The Motley Fool Australia.

More reading

• Here’s why the Betashares Nasdaq 100 ETF (NDQ) is sinking today
• Are these 2 sold-off ASX growth shares now cheap bargains?
• 3 top ETFs for ASX investors to buy now
• Here are 2 quality ETFs that are now a lot cheaper
• 2 high quality ETFs for ASX investors to buy after the market meltdown

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 BETANASDAQ ETF UNITS and BetaShares Global Energy Companies ETF – Currency Hedged. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended 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 Scott Phillips.

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Woolworths Group Ltd (ASX: WOW) is undoubtedly a popular ASX share. This could be for one or more of many possible reasons.

For one, chances are highly likely that many prospective Woolworths shareholders are also customers. Woolworths is, after all, the grocer with the highest market share in the country. Woolworths has also been on the ASX boards for decades, and its size and scale in the consumer staples sector means that many investors consider Woolworths to be an ASX 200 blue-chip share.

This is only accentuated by Woolworths’ long history of paying dividends. The company hasn’t missed a dividend for decades now. But its history of dividend payments certainly hasn’t been perfect. For one, the company has yet to beat its 2015 annual total of $1.39 in dividends per share. 2021 saw the company dole out $1.08 in dividends.

So how safe is the Woolworths dividend if it can be cut so dramatically?

Is the Woolworths dividend a safe bet?

Well, that’s a complex question. Just because Woolworths hasn’t been increasing its dividends year in, year out doesn’t mean the company’s dividend isn’t safe.

As my Fool colleague covered a few months ago, Woolworths’ 2021 dividends represented a payout ratio of 65.45% of the company’s earnings per share (EPS). That means the company kept almost 35% of its earnings within the business.

If Woolies had a payout ratio of 90-95%, we could say that its dividend safety was under a cloud. But on these metrics, it looks as though Woolworths can easily afford to keep the dividend taps open.

But for investors looking for income certainty, Woolworths shares might not be the best bet, going off of history.

We’ve already examined the company’s patchy dividend record over the past decade. And the ongoing COVID-19 pandemic has played havoc with Woolies’ costs in recent years. This is probably partly why 2022’s interim dividend of 39 cents was less than 2021’s 53 cents.

At the closing Woolworths share price today, this ASX 200 blue-chip share has a market capitalisation of $41.8 billion, with a fully franked dividend yield of 2.68%.

The post How safe is the Woolworths dividend? appeared first on The Motley Fool Australia.

More reading

• ASX shares paid out a record $98b in dividends in the 12 months to March. Which are the star performers?
• Leading brokers name 3 ASX shares to buy today
• Is the Woolworths share price a buy following the latest acquisition or a no deal?
• 5 things to watch on the ASX 200 on Monday
• Woolworths share price lifts following $218m online marketplace deal

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. 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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Shares of Insurance Australia Group Ltd (ASX: IAG) traced lower today and finished trading down 0.44% at $4.51 apiece.

The loss eclipses a 9% downfall for the insurance giant in the last 12 months, amid a difficult two years for the insurance industry across 2020/21.

How might IAG hold up in another catastrophe?

Analysts at Goldman Sachs forecast that ‘catastrophe risks’ are likely to worsen before normalising back to positive trends in a recent note.

Whilst IAG is investing substantial amounts in mitigating climate change and catastrophe risks, “an issue of this magnitude is difficult to manage,” Goldman says.

Ultimately, the broker says, insurers like IAG will need to reflect this risk premium in their price setting and to factor in inflation.

Meanwhile, analysts at Morgan Stanley see the ‘volatility’ of catastrophe risk to be a going concern for IAG.

The investment bank quotes research from Swiss insurance and reinsurance firm Swiss Re, which now sees natural catastrophes growing at a long-term rate of 5-7%.

On this basis, Morgan Stanley reckons that Australian insurers like IAG will have to absorb more catastrophe risk in their earnings profile, which could ultimately impact its share price.

So to answer the question, judging by the analysis of these brokers, is that another catastrophe is certain to have some kind of impact on insurers like IAG.

Just what that impact might be, remains to be seen.

IAG share price snapshot

According to Bloomberg data, 58% of analysts covering IAG rate it a buy right now, whereas 25% have it as a hold. The remaining coverage – around 17% – says to sell IAG shares.

This year to date IAG shares have snaked around 6% into the green following another positive month of trade.

The post How might the IAG share price fare with another ‘catastrophe’? appeared first on The Motley Fool Australia.

More reading

• The IAG share price has tumbled 27% in 5 years. Have the dividends been worth it?
• How does the IAG share price stack up against analyst ratings?
• Top brokers name 3 ASX shares to sell today
• What is the dividend yield on IAG shares in May?
• The IAG share price has gained 6% in a month. Is this just the beginning?

Motley Fool contributor Zach Bristow 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 positions in 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 Scott Phillips.

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When assessing ASX shares, investors often focus on a company’s net profits to get a good understanding of its ability to be self-sustaining. However, there’s another important metric that is essential to the survival of a company over the long term: free cash flow.

In a way, this is the ‘true’ cash that is generated by the company. This figure measures profitability excluding non-cash expenses and includes capital expenditure. In other words, this is the amount of money that is actually available to the company and its shareholders.

Today, we are covering three ASX shares inside the All Ords Index (ASX: XAO) that are providing the financial equivalent of a torrential downpour in free cash flows.

ASX shares with impeccable free cash flow

To set the scene, the importance of free cash flow is now dawning on newer investors. Many are experiencing their first cycle of investing throughout interest rate increases. As a result, the era of cheap access to capital is drying up. This means it is crunch time for business model fundamentals.

Illustrious entrepreneur Sir Richard Branson once said:

Never take your eyes off the cash flow, because it’s the lifeblood of business.

On that note, we better dig into a few ASX shares with ample lifeblood. Here are three ASX All Ords shares that have plenty of free cash flow:

Magellan Financial Group Ltd (ASX: MFG)

The Australian-based fund manager, Magellan, has been going through a stretch of turmoil since losing one of its key clients. In response, shareholders have doused the company in disappointment and offloaded shares swiftly. This had led to this ASX share losing a staggering 70% from its 2021 high.

Yet, profitability has remained intact in spite of the whirlwind. For the last 12 months, Magellan has recorded free cash flow of $402.6 million on revenue of $788.8 million. At a free cash flow margin of 51%, the company appears to be in fit condition to continue to rain down cash for shareholders.

National Storage REIT (ASX: NSR)

While the next substantial free cash flow producer isn’t technically an ASX ‘share’, this real estate investment trust (REIT) is certainly worth a mention.

National Storage is one of the largest storage providers across the Australiasia region with a total of 214 sites. Management has consistently sought out acquisitions and expansion over the last 12 months, adding 12 centres to its portfolio.

Based on the last 12 months, National Storage achieved a free cash flow margin of ~59% on $248.7 million of revenue.

Pro Medicus Limited (ASX: PME)

The last ASX All Ords share making an appearance in this list is medical imaging software provider Pro Medicus. Although this is the largest company by market capitalisation out of the three covered, it is, counterintuitive, the one with the smallest revenue.

However, Pro Medicus is often heralded by many shareholders as a high-growth company, warranting its 115 times [price to earnings] P/E ratio. That aside, there is no arguing the healthcare business is a healthy free cash flow producer.

With a 51% free cash flow margin, this ASX share is able to keep itself afloat for the time being.

The post Free cash flow: Here are 3 ASX All Ords shares that have it in spades appeared first on The Motley Fool Australia.

More reading

• The best 2 ASX shares money can buy right now: expert
• What’s going on with the Challenger share price today?
• 2 stellar ASX 200 growth shares analysts rate as buys
• What’s happening with ASX 200 tech shares today?
• Why is the Magellan share price marching higher today?

Motley Fool contributor Mitchell Lawler has positions in Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pro Medicus Ltd. The Motley Fool Australia has positions in and has recommended Pro Medicus 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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Today, the S&P/ASX 200 Index (ASX: XJO) ducked and weaved through a patchy market to finish in the green. At the end of the session, the benchmark index climbed 0.37% higher to 7,155.2 points.

It was a hit-and-miss bout on the Aussie stock exchange today. A portion of companies performed solidly, including consumer staples and banks. While other parts of the index suffered at the hand of a concerning blow to digital advertising companies in the US overnight. The local tech sector ended up being on the nose today, falling 3%.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, GQG Partners Inc (ASX: GQG) was the biggest gainer today. Shares in the global boutique asset manager rallied 6.29% higher as investors anticipate the company’s inclusion in the FTSE All-World Cap Index. Find out more about GQG Partners here.

The next best performing ASX share across the market today was Nufarm Ltd (ASX: NUF). The agriculture chemical company traded 5.61% above its previous closing price despite a lack of any price-sensitive news. Uncover the latest Nufarm details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
GQG Partners Inc (ASX: GQG)	$1.605	6.29%
Nufarm Ltd (ASX: NUF)	$5.27	5.61%
Perseus Mining Ltd (ASX: PRU)	$1.96	4.53%
Orica Ltd (ASX: ORI)	$16.14	3.53%
Evolution Mining Ltd (ASX: EVN)	$3.82	3.52%
Mercury NZ Ltd (ASX: MEZ)	$5.46	3.41%
Nib Holdings Ltd (ASX: NHF)	$7.42	3.06%
Northern Star Resources Ltd (ASX: NST)	$9.11	2.48%
Metcash Ltd (ASX: MTS)	$4.33	2.12%
Coles Group Ltd (ASX: COL)	$18.00	1.98%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• This is the top ASX 200 share I wish I’d bought when starting out
• 3 ASX All Ordinaries shares enjoying a Wednesday windfall
• ASX 200 midday update: BHP and Pilbara Minerals shares tumble
• Do South32 shares have exposure to ‘green metals’?
• 3 ‘disruptive’ ASX companies Aussies now can’t live without

Motley Fool contributor Mitchell Lawler 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 positions in and has recommended COLESGROUP DEF SET. The Motley Fool Australia has recommended NIB Holdings 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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The Webjet Ltd (ASX: WEB) share price has been on a high in the last nine days on the market.

The travel company’s share price has surged nearly 10% since market close on 12 May. Qantas Airways Limited (ASX: QAN) shares have climbed 3% in the same frame, while Flight Centre Travel Group Ltd (ASX: FLT) shares have gained 2.8%.

So what’s been happening at Webjet?

Webjet share price takes off

Webjet shares could have risen in recent times thanks to renewed optimism for travel. In a conference call on Thursday discussing the company’s annual results, Webjet managing director John Guscic shared his outlook for the travel industry with this notable summation:

Guess who’s back? Travel’s back, baby.

On 17 May, Webjet reported a return to profit in the second half of FY22. The company said the business turned around in FY22. The profit in the second half of the year was underpinned by the WebBeds and Webjet OTA businesses.

On the company results, Webjet said:

FY22 was a year of recovery. We are now cash flow positive, our two largest businesses returned to profitability and we are seeing markets rebound strongly as travel restrictions continue to ease.

Overall, Webjet reported a 258% jump in revenue and a statutory net loss of $85.4 million.

Webjet did not declare a dividend for FY22 due to some uncertainty still remaining. The company also has not provided an earnings guidance for FY23.

As my Foolish colleague Tristan reported recently, broker opinion on the Webjet share price is mixed. Ord Minnett has placed a $7.48 price target on the company’s shares. This is a 28.52% upside on the current share price.

However, Macquarie has predicted the Webjet share price could fall slightly to $5.80. Morgans has also maintained an add rating on the company with a $6.55 price target. This is a nearly 13% increase on the current share price.

In the bigger picture, Australia’s international borders opened on 21 February. On 18 April, cruise ships were allowed to reenter Australia as the country’s biosecurity emergency ended. The COVID testing requirement for travel was also dropped. Meanwhile, on 11 May, New Zealand announced it would reopen its borders to tourists from the end of July.

Share price snapshot

Webjet shares have ascended nearly 19% in the past 12 months, while they are up nearly 13% year to date.

However, in today’s trade, the Webjet share price fell 1.52% to $5.82. Flight Centre shares also dropped 1.84%, while Qantas shares finished 0.56% in the red.

For perspective, the S&P/ASX 200 Index (ASX: XJO) finished 0.37% higher today and climbed 1.55% during the past year.

Webjet has a market capitalisation of about $2.2 billion based on its current share price.

The post Up 10% in 9 trading days, what’s going on with the Webjet share price? appeared first on The Motley Fool Australia.

More reading

• Is the Webjet share price an opportunity that can soar?
• The Flight Centre share price has taken off 5% in a week. Is travel really ‘back, baby’?
• These are the 10 most shorted ASX shares
• Top brokers name 3 ASX shares to buy next week
• Brokers name 3 ASX shares to buy today

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 Flight Centre Travel Group Limited and Webjet 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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Owners of Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares have found their investment at the forefront of an interest rate battle this month.

The smallest of the ‘big four’ banks has dropped its variable interest rate to 2.29% for new customers.

The move has led experts to believe competition between lenders is heating up despite the current interest rate environment.

As of Wednesday’s close, the ANZ share price is $25.63, 1.02% higher than it finished Tuesday’s session.

For context, the S&P/ASX 200 Index (ASX: XJO) also gained 0.37% on Wednesday.

Let’s take a closer look at the battle apparently breaking out between Australia’s major lenders.

ANZ fans the flames of competition among lenders

ANZ has dropped its lowest variable rate by 0.15% just weeks after it bumped it higher amid heightening competition between the big banks.

The move is likely an attempt to secure its position in an increasingly competitive lending market.

Right now, some new customers can enjoy a variable rate of 2.29% when they sign onto an ANZ Simplicity PLUS home loan.

Meanwhile, Commonwealth Bank of Australia (ASX: CBA) launched Unloan last week. The digital mortgage platform offers variable rates starting at 2.14%.

Westpac Banking Corp (ASX: WBC) is also bowing to competition. It’s offering some new customers a two-year introductory rate of 2.19% on variable home loans.

Experts have noted these offerings are fanning competition between banks battling for home loan customers.

“What these big bank cuts show is that competition in the mortgage market is still alive and kicking, despite the RBA hikes,” RateCity.com.au research director Sally Tindall said.

“While most variable customers will now be dealing with higher repayments, some banks eager for new business are handing out exemptions,” she said.

ANZ share price snapshot

However, while ANZ is joining in on the interest rate battle, its share price is offering little competition to its big four peers.

The bank’s stock has tumbled 7% since the start of this year. That makes it the worst-performing big bank of 2022 so far.

The ANZ share price has also slipped almost 9% over the last 12 months.

The post Own ANZ shares? The bank is amping up competition between its big four peers appeared first on The Motley Fool Australia.

More reading

• ASX shares paid out a record $98b in dividends in the 12 months to March. Which are the star performers?
• ANZ shares backtrack despite the bank bolstering its board
• Has the ANZ dividend been growing?
• 3 cheap ASX shares set to boom with higher interest rates: Wilsons
• Can ASX 200 banks really see a 15% profit jump if the cash rate hits 1%?

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 has recommended Westpac Banking Corporation. 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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It’s starting to feel like a long time ago that this writer started on the investing journey.

Investing is a discipline where you can always do better, and one that no one can ever truly master to perfection. Even legendary investors like Warren Buffett make plenty of mistakes.

But it is also a discipline where one mustn’t make ‘perfect’ the enemy of ‘good’. My first investment into an ASX 200 share was not a perfect one. In fact, it remains the worst investment I’ve ever made. It was Slater & Gordon Limited (ASX: SGH) if you must know, and it cost me dearly. But making such a fatal error so early on proved fortuitous. It prompted me to learn fast.

So what ASX 200 share would I buy if I could go back and do it all again? Well, I won’t take the easy way out and find the share that has been appreciated by the most over the past seven years.

Instead, let’s go with Washington H Soul Pattinson and Co Ltd (ASX: SOL). I own Soul Patts shares today. But I wish I had bought them sooner than I did.

What makes Soul Patts an ideal ASX 200 share to start out with?

Soul Patts is one of the most diversified ASX 200 shares on the market. It doesn’t really function as your traditional company. Rather, Soul Patts’ primary business is owning large chunks of other ASX shares, investing in them on behalf of its shareholders.

Today, it owns stakes in businesses ranging from Brickworks Ltd (ASX: BKW) and BKI Investment Co Ltd (ASX: BKI) to TPG Telecom Ltd (ASX: TPG) and New Hope Corporation Limited (ASX: NHC). This is one reason I’m attracted to the company – it really functions as several investments in one.

But this also means that someone else (in this case, Soul Patts’ management) is investing on my behalf. So what gives me the confidence to trust someone else in this matter?

A rock-solid track record.

For one, Soul Patts is the only ASX 200 share that can boast of a track record of increasing its annual dividend every year for more than two decades.

But the company also has the capital gains to back that already-impressive statistic up. Back in March, Soul Patts told investors that its shares had averaged a compounded annual return of 14.5% since 1981.

These factors combine to make Soul Patts the perfect bottom drawer investment in my opinion. And that makes it the ASX 200 share I wish I had bought when starting out on my investing journey.

The post This is the top ASX 200 share I wish I’d bought when starting out appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares I’d buy for passive income
• ASX 200 midday update: BHP and Pilbara Minerals shares tumble
• Do South32 shares have exposure to ‘green metals’?
• 3 ‘disruptive’ ASX companies Aussies now can’t live without
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Sebastian Bowen has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended TPG Telecom 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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The Chalice Mining Ltd (ASX: CHN) share price returned from its trading halt on Wednesday and tumbled notably lower.

The mineral exploration company’s shares ended the day 6.5% lower at $6.23.

Why did the Chalice Mining share price tumble?

The catalyst for the weakness in the Chalice Mining share price was the completion of the company’s institutional placement this afternoon.

According to the release, Chalice has successfully raised approximately $100 million from institutional investors after receiving very strong support from leading domestic and international institutions.

These funds were raised at $6.00 per new share, which was a 10% discount to the Chalice Mining share price prior to its halt.

Upon completion of the placement, Chalice expects to have cash on hand of ~$141 million.

Why is Chalice raising funds?

The release explains that this capital raising means Chalice is now fully funded for the next 18 months of exploration and pre-development activities at its 100%-owned Julimar Nickel-Copper-PGE Project and the highly prospective West Yilgarn licence holding.

The Julimar Project is located ~70km north-east of Perth in Western Australia and is surrounded by world-class infrastructure. The company has been busy drilling the Gonneville deposit, which intersected shallow high-grade PGE-nickel-copper-cobalt-gold sulphide mineralisation.

This led to the release of its maiden resource last year for Gonneville, which confirmed that it is one of the largest nickel-copper-PGE sulphide discoveries worldwide. It is also the largest PGE discovery in Australian history, which management believes demonstrates the potential for Julimar to become a strategic, long-life green metals asset.

In addition, the company holds an enormous land position in the new West Yilgarn Ni-Cu-PGE Province. Management believes this gives it a first mover advantage in an almost entirely unexplored mineral province.

These certainly are exciting times for Chalice, which goes some way to explaining why the Chalice Mining share price is up over 500% since this time in 2020.

The post Here’s why the Chalice Mining share price sank almost 7% today appeared first on The Motley Fool Australia.

More reading

• Why BHP, BrainChip, Chalice Mining, and Fisher & Paykel shares are dropping
• Chalice share price remains frozen despite capital raise update
• Why is the Chalice Mining share price on ice today?
• These were the best performing ASX 200 shares last week
• 3 ASX mining shares that went gangbusters 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 Scott Phillips.

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2022 has been a tough year for most crypto investors so far.

Cryptos have broadly proven susceptible to the same market forces that have seen risk assets take a bath this calendar year.

With fast-rising inflation seeing central banks in developed nations hike interest rates, the tech-heavy Nasdaq is down 28.9% year-to-date. ASX tech shares have gone the same direction, as witnessed by the 33.1% fall in the S&P/ASX All Technology Index (ASX: XTX) over that same period.

With risk assets under pressure, Bitcoin (CRYPTO: BTC) is down 36.9% this year, while the world’s number two crypto by market cap, Ethereum (CRYPTO: ETH) has tumbled 46.9% since 1 January.

In fact, only three of the top 100 cryptos have returned a gain of more than 6% in 2022.

We’ll leave off the second and third spots and shine the spotlight directly onto the top-performing crypto in 2022, Kyber Network Crystal v2 (CRYPTO: KNC).

The digital token is up 3.6% over the past 24 hours, bringing its gains in 2022 to an impressive 62.9%.

At the current price of US$2.24, it has a total market valuation just shy of US$400 million.

What is Kyber Network?

If you haven’t heard of Kyber Network Crystal v2, rest assured you’re not alone.

Here’s what CoinMarketCap says makes the crypto unique:

Kyber Network is the first tool that allows anyone to instantly swap tokens without the need of a third-party, like a centralised exchange. The unique architecture of Kyber is designed to be developer-friendly, which enables the protocol to be easily integrated with apps and other blockchain-based protocols.

For investors who may be considering KNC, do take note of the serious volatility it’s undergone just in the past month alone.

Here’s what we mean.

The token hit all-time highs of US$5.72 on 28 April. Then, only two weeks later, it sank to record lows of US$1.13 on 12 May.

Since the 12 May low, KNC has leapt 98% higher.

What’s intriguing crypto investors?

In the lead up to hitting its all-time highs last month, Kyber Network Crystal v2 said it was integrating with numerous leading blockchains.

As Cointelegraph reported:

KyberSwap, the main decentralised exchange interface on the network, now offers trading across ten separate networks including Ethereum, Avalanche, Polygon, BNB Smart Chain, Aurora, Arbitrum, Fantom, Oasis, Velas and Cronos.

Interoperability has become one of the main themes driving growth not just in DeFi, but in all sectors of the crypto economy because the ability to send assets and data across multiple chains is a necessary feature in the future of DeFi, the nonfungible token (NFT) sector and the Metaverse.

Things move quickly in the crypto space.

But, as of today, Kyber Network Crystal v2 is hands down the biggest gainer of 2022 so far.

The post This is the top performing crypto in 2022 so far, and it sure isn’t Bitcoin appeared first on The Motley Fool Australia.

More reading

• What do NFTs mean for the gaming industry?
• Looking to spend your crypto? Here are 5 things you can buy in 2022
• What to expect for the Bitcoin price heading into June
• Can Bitcoin play a role in a diversified ASX share portfolio?
• Ethereum price rout knocks founder from billionaire’s list. Does he still ‘welcome a bear market’?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia has positions in and has recommended Bitcoin and Ethereum. 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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