If you don’t have sufficient funds to build a truly diverse portfolio, a quick way to add some diversity is with exchange traded funds (ETFs).

This is because through just a single investment, ETFs give investors exposure to whole indices, industries, and themes.

There are a large number of ETFs for investors to choose from, but three that could be worth considering are listed below. Here’s what you need to know:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The BetaShares Asia Technology Tigers ETF could be a top option for investors. As its name suggests, this ETF gives investors exposure to a number of exciting tech shares in the Asian market. Among its holdings are the likes of ecommerce giant Alibaba, search engine company Baidu, and WeChat owner Tencent. These companies have been revolutionising the lives of billions of people in the region and look well-positioned for growth over the next decade.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another ETF for investors to consider is the BetaShares Nasdaq 100 ETF. This popular ETF provides investors with exposure to the 100 largest non-financial shares on the famous Nasdaq index. This means that investors will be owning a slice of tech giants such as Amazon, Apple, Facebook (Meta), Microsoft, Netflix and Google (Alphabet). And with the Nasdaq index down materially from recent highs following a market selloff, now could be an opportune time to make a long term investment in the ETF.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

A final ETF to consider is the VanEck Vectors Morningstar Wide Moat ETF. This ETF gives investors exposure to a portfolio of fairly valued companies with sustainable competitive advantages or moats. There are approximately 50 stocks in its portfolio including Amazon, Berkshire Hathaway, Constellation Brands, Intel, and Microsoft. It is worth highlighting that legendary investor Warren Buffett is a huge fan of companies with moats. So, if you’re aiming to follow his investment style, this ETF could be a good way to do it.

The post Here are 3 top ETFs for ASX investors to buy now appeared first on The Motley Fool Australia.

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More reading

• Get exposure to Asian shares with these 2 ETFs
• 3 ASX ETFs for investors to buy next week
• 2 ASX growth shares I’d buy right away with $2,000
• 3 high quality ETFs for ASX investors to buy this month
• Here’s why the BetaShares Nasdaq 100 ETF could be a buy today

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. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF and VanEck Vectors Morningstar Wide Moat 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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The ASX share market saw a lot of pain on Tuesday. The S&P/ASX 200 Index (ASX: XJO), representing the biggest companies on the ASX, slumped 3.55%. However, I believe there are some good opportunities in this period.

Investors are focused on risk factors such as inflation and rising interest rates. In theory, when interest rates go up, it pulls down the value of asset prices. Investors are certainly putting that theory to the test in the real world at the moment.

But, in my opinion, these lower prices just represent better buying opportunities. There are plenty of ASX shares that I think could make good long-term buys. Here are two of them.

City Chic Collective Ltd (ASX: CCX)

City Chic is a fast-growing business in the apparel and footwear industry. The ASX retail share specialises in selling items to plus-size women.

It sells through a variety of brands in different countries including City Chic, CCX, Evans, Avenue, Hips & Curves, and Fox & Royal.

For me, it’s the global growth potential that is one of the key attractions of City Chic shares. Australia doesn’t have a big population, but City Chic is now generating revenue in North America, the UK, and mainland Europe.

This ASX share may have a solid tailwind behind it. Using Credence Research as its source, City Chic says the plus-size market is forecast to grow by approximately 7% per annum in the coming years.

The retailer also noted that the average annual spend in the plus-size category is currently “materially” less than the rest of the women’s apparel market. City Chic also noted increasing rates of plus-size women globally.

I think the ASX share is doing a good job of achieving growth, particularly online. In the first half of FY22, it made $178 million in global sales. The company said that 77% of the prior 12 months of sales were made online.

In the 17 trading weeks from 27 December 2021 to 24 April 2022, it saw “strong” total sales growth of 25% year on year.

Unlike some other smaller ASX shares, City Chic is making a profit, while also growing in size quickly. In HY22 it made $14 million of underlying net profit after tax (NPAT). I think that’s a positive about the business – it’s not making losses. This can provide valuation support.

Since the start of 2022, the City Chic share price is down by 66%. It looks good value for the long term to me.

VanEck Video Gaming and Esports ETF (ASX: ESPO)

This is an exchange-traded fund (ETF) that gives investors exposure to the video gaming sector.

As a group of businesses, I think the sector this ETF represents has attractive growth potential, particularly after the 23% decline so far in 2022.

VanEck points out that video gaming has achieved average annual growth since 2015 of 12%. E-sports is growing even quicker, partly due to the fact that it has created new potential revenue streams such as game publisher fees, media rights, merchandise, ticket sales, and advertising.

E-sports revenue has grown by an average of 28% per annum since 2015.

The competitive video gaming audience is expected to reach 646 million people globally, partly because of the rising population of ‘digital natives’, according to VanEck.

With the revenue growth for the sector, I think names like Nvidia, Netease, Advanced Micro Devices, Take-Two Interactive Software, Electronic Arts, and Nintendo can deliver long-term earnings growth and this can help shareholder returns.

The post I think these 2 ASX shares are buys in this volatility appeared first on The Motley Fool Australia.

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More reading

• 3 ASX ETFs for investors to buy next week
• ASX retail shares tumble following RBA rate rise
• Are these 2 beaten-up ASX shares too cheap to ignore in June 2022?
• 2 popular ETFs that could be buys for ASX investors
• I think these 2 ASX tech shares are buys in May

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 Nvidia. The Motley Fool Australia has recommended Nvidia 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 Scott Phillips.

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The Northern Star Resources Ltd (ASX: NST) share price isn’t escaping the wider market selloff today.

Northern Star shares closed on Tuesday trading for $8.06, down 3.13%.

The Northern Star share price joined the wider selling action, fuelled by hot running inflation figures and fears of aggressive interest rate hikes out of the United States.

This saw US markets fall sharply yesterday (when the ASX was closed for the Queen’s Birthday holiday) and caused similar angst here today, with the All Ordinaries Index (ASX: XAO) closing down 3.70% at the end of the day.

With gold prices also down around 2.5% since the US inflation figures were released on Friday, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) also closed down 2.06% today.

But, according to Catapult Wealth portfolio manager Tim Haselum, gold stocks, and particularly the Northern Star share price could have a strong year ahead.

Low debt and long mine life

Northern Star has a current market cap of approximately $9.4 billion. Focused on gold, the company produces and explores in Western Australia, the Northern Territory and the US state of Alaska. The miner pays a trailing dividend yield of 2.4%, fully franked.

Commenting on the outlook for Northern Star, Haselum said (courtesy of The Advertiser):

The main variables here are the gold price, currency and production volumes. Like all commodity companies, NST reported rising costs as wages and transport expenses keep pushing higher. Despite this, NST ha a very low debt, strong track record for management and their mines are relatively long life.

Haselum acknowledged the rising interest rate environment, but added, “We think you have to throw the old economic textbooks out as we could still see strength in gold valuations and it continues to be an attractive store of wealth.”

Catapult Wealth has a buy rating on the miner and a 12-month target of $11.88 for the Northern Star share price.

Northern Star share price snapshot

The Northern Star share price hit all-time highs in November 2020.

This year the miner has been struggling, with shares down 14% in 2022. That compares to a year-to-date loss of 10% posted by the S&P/ASX 200 Index (ASX: XJO).

The post Why this fund manager sees major upside potential for the Northern Star share price appeared first on The Motley Fool Australia.

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More reading

• The Northern Star share price is down 25% from its April high. Is now the time to buy?
• 5 things to watch on the ASX 200 on Wednesday
• Why is the Northern Star share price having such a lacklustre start to the week?
• 5 things to watch on the ASX 200 on Monday
• Where is the Northern Star share price headed in June?

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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The market meltdown that wiped more than $100 billion in shareholder value on Tuesday didn’t stop one ASX 200 share from getting a “buy” upgrade.

The S&P/ASX 200 Index (ASX: XJO) crashed 3.55% on Tuesday, taking its fall from its August 2021 high to nearly 13%.

That means our key benchmark is now in correction territory. This is defined as a drop of between 10% and 20% from the peak.

Why this ASX 200 share is holding firm

But amid the gloom that’s been triggered by rapid interest rate hikes and runaway inflation, broker Macquarie upgraded the Endeavour Group Ltd (ASX: EDV) share price.

This may explain why the hotel operator and alcoholic drinks retailer outperformed the market today.

The Endeavour Group share price ended flat at $7.15, which is an admirable feat given most ASX 200 shares closed in the red.

Positive earnings outlook

There are a few reasons behind Macquarie’s decision to lift its rating on the shares to “outperform”. For one, the group’s earnings are more defensive than discretionary retailers, several of which got downgraded by the broker.

Another reason is Endeavour Group’s ability to generate a decent return on invested capital (ROIC). Macquarie explains:

We believe that the [approximate] $300m capex [capital expenditure] spend targeting 15% ROIC, amortising to 10% ROIC by year five, will drive 3.9% EBIT growth annually.

We think the retail and hotels businesses act as natural hedges against each other and should minimise the impact of an economic downturn.

Defensive income and margin expansion

Further, the growth in private label brands is driving the group’s expanded earnings before interest and tax (EBIT) margin. This positive trend is likely to continue, according to Macquarie.

The broker also pointed out that its pokies business has proven to be relatively resilient during times of economic uncertainty. Gambling isn’t an easy habit to kick.

Another thing that is helping the ASX 200 share is the trend for consumers to spend more on services than goods. Households initially spent big buying furniture and electronics as we emerged from the pandemic, but they are now preferring to spend on experiences instead.

What is the Endeavour Group share price worth?

However, it’s not all good news for the Endeavour Group share price. Regulatory risks remain a concern as there’s always scrutiny on liquor and gaming. Any potential reform could hurt profits.

Macquarie’s 12-month price target on the shares is $7.70 a share, and the forecast FY22 dividend yield stands at around 2.8%.

The post The ASX 200 share that just got upgraded to buy amid the market carnage appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 shares that avoided today’s sell-off
• Lake Resources share price defies rout to leap 14%
• Leading brokers name 3 ASX shares to buy today
• Here are the 3 most traded ASX 200 shares on Tuesday
• Is this a stock market crash for ASX 200 shares?

Motley Fool contributor Brendon Lau has positions in Macquarie Group Limited. 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 Macquarie 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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