If you’re looking for an easy way to build a diverse portfolio, then exchange traded funds (ETFs) could be the answer.

That’s because ETFs allow investors to invest in a large number of shares through just a single investment, providing instant diversification in some cases.

With that in mind, listed below are three ETFs that could be good options for investors. Here’s what you need to know about them:

BetaShares Global Energy Companies ETF (ASX: FUEL)

The first ETF to look at is the BetaShares Global Energy Companies ETF. This ETF provides investors with access to the leading players in the energy sector. And given how energy prices are very strong right now, it could be a great place to have some investment exposure. This ETF includes the likes of BP, Chevron, ExxonMobil, and Royal Dutch Shell. The former has just released its quarterly update and revealed a profit of US$8.45 billion. This was BP’s second largest quarterly profit in its history and followed a record profit from Shell last week.

iShares S&P 500 ETF (ASX: IVV)

Another ETF for investors to consider this month is the iShares S&P 500 ETF. This popular ETF could be a great way to diversify a portfolio because it gives investors access to a massive 500 of the top listed U.S. companies. In addition, iShares notes that the fund offers long-term growth opportunities for a portfolio. This is thanks to the inclusion of high quality companies such as Amazon, Apple, Disney, Facebook, JP Morgan, Johnson & Johnson, Microsoft, Tesla, and Visa.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF for investors to look at is the Vanguard MSCI Index International Shares ETF. When it comes to diversification, this ETF has it in spates. That’s because the Vanguard MSCI Index International Shares ETF allows investors to invest in approximately ~1,500 of the world’s largest listed companies. This means you’ll be owning many of the world’s biggest and brightest companies such as Amazon, Apple, AstraZeneca, Johnson & Johnson, JP Morgan, Nestle, Procter & Gamble, Roche, and Visa.

The post 3 wonderful ETFs for ASX investors to buy today appeared first on The Motley Fool Australia.

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More reading

• Is the Vanguard VGS ETF a good idea for dividends?
• 3 quality ETFs for ASX investors in July
• 3 popular ASX ETFs for investors to buy
• Is VGS the best international shares ETF on the ASX?
• 3 highly rated ETFs for ASX investors to buy now

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 Global Energy Companies ETF – Currency Hedged and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF and iShares Trust – iShares Core S&P 500 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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NIB Holdings Limited (ASX: NHF) shares have fallen slightly over the past month, but what are their future prospects?

The NIB share price has slipped 0.41% in the last month, closing at $7.33 on Tuesday. That was 2.37% higher on the day.

So let’s check what could be ahead for shares in the healthcare insurer.

What’s ahead for private insurance

UBS has recently highlighted how more Australians see the benefit of private health insurance despite the “ongoing increase in out-of-pocket expenses”.

However, UBS analyst Scott Russell is predicting customers will pay more attention to monthly premiums “under tighter household budgets”. In a note cited by The Australian, analyst Scott Russell said:

Switching is inevitable and we note the typical profile is younger, less than 35, and in lower/middle income bands; many of these are customers of nib and ahm – lower value for money – and appear to be eyeing Medibank, Bupa and HBF brands.

But despite the risk of Australians changing health insurers, Russell still sees upside in the NIB share price. He has lifted the company’s price target from $7.10 to $7.70. That’s 8% more than the current share price.

Russell predicts NIB’s earnings per share (EPS) could jump by 11 to 22% in FY23, claiming the company “enjoys similar tailwinds” to Medibank Private Ltd (ASX: MPL), The Australian reported.

The analyst has also upgraded Medibank Private to a buy rating with a $3.90 price target. That’s 11% more than the company’s current share price of $3.50.

NIB will report its full-year results on 22 August.

Share price snapshot

NIB shares have climbed 2% in the past year and are up nearly 5% year to date.

For perspective, the  S&P/ASX 200 Financials Index (ASX: XFJ) has lost 2.6% so far in 2022.

NIB has a market capitalisation of about $3.4 billion based on the current share price.

The post What could a tighter household budget mean for NIB shares? appeared first on The Motley Fool Australia.

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More reading

• Why Allegiance Coal, LiveHire, NIB, and Pendal shares are dropping
• Here are the top 10 ASX shares today

Motley Fool contributor Monica O’Shea 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 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 Bapcor Ltd (ASX: BAP) share price outperformed the S&P/ASX 200 Index (ASX: XJO) on Tuesday. At the end of the day, Bapcor shares finished at $6.71 each, 1.36% higher.  

Bapcor outperformed the S&P/ASX 200 Index (ASX: XJO) by 1.29% today.

Bapcor is a car parts, accessories, and services provider operating the Autobarn, Autopro, and Burson chains across Australia, New Zealand, and Thailand.

New CEO locked in but is it the right decision?

Since the acrimonious departure of the former CEO and Managing Director Darryl Abotomey in December 2021, the Bapcor share price has fallen by 3%. 

Bapcor’s then CFO Noel Meehan was appointed as Acting CEO. Today, Bapcor announced the appointment of Meehan as CEO and managing director effective from 1 September 2022.

Bapcor chair, Margaret Haseltine said in today’s release:

The Board has observed Noel in the role of CEO since 8 February 2022 and during this, he has secured the engagement of new key executives and has shown strong leadership by establishing a clear vision and strategic direction for Bapcor.

Appointing an internal candidate can foster confidence across the management team and potentially offers a smooth transition given Meehan’s prior experience. However, Meehan only came onboard as CFO in July 2020 and does not appear to possess industry experience based on his profile on the company website. 

I think it’s prudent to monitor Meehan’s execution of the strategic objectives, which centre around growing the network, capitalising on operational efficiencies, expanding the product range, and penetrating the Asia market as outlined in the HY22 results announcement.

Furthermore, the Bapcor FY21 annual report shows Meehan only held a small parcel of Bapcor shares in the company. Further details of Meehan’s remuneration package will hopefully shed light on the strength of alignment with shareholders. 

Could the reshuffle present an investment opportunity?

Meehan’s formal appointment as CEO coincides with the retirement of Therese Ryan as an independent non-executive director effective from 30 September 2022. 

Ryan has been a director since 2014, so her departure could be viewed by some as leaving an experience gap on the board. For reference, the Bapcor share price has increased around 246% since 2014.

Bapcor is undergoing an unusual level of personnel turnover at the higher ranks. This could provide investment opportunities as the market may view such events in a negative light. However, new management and directors could provide a much-needed breath of fresh air and direction. 

One way to evaluate whether Bapcor has the right leaders to steer the ship is to closely monitor key milestones against what management has promised. 

So, make sure to keep your eyes peeled for Motley Fool’s coverage of Bapcor’s financial year-end results. 

The post Why did the Bapcor share price outpace the ASX 200 on Tuesday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Raymond Jang has no position in any of the stocks mentioned. 

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For a third consecutive month, the Reserve Bank of Australia (RBA), as expected, lifted the cash rate by 50 basis points today.

This brings the cash rate to 1.85% as the central bank tries to fight inflation, currently running at its highest level since the early 1990s.

The RBA is expecting inflation to peak later this year but doesn’t expect it to fall towards the top end of its target range until 2024.

So much for inflation being transitory.

Somewhat counterintuitively, the ASX 200 took the increase in its stride, paring its losses to trade relatively flat on Tuesday.

Prior to today, market expectations were for the cash rate to peak at around 3.3% in March next year before edging lower later next year and early 2024.

Equity bulls are already salivating at the prospect of interest rate cuts, a possibility that helped send the ASX 200 almost 6% higher in July.

The ‘central bank put’ is back in play… even whilst interest rates are still rising. Once a bull, always a bull. Yes, I’m a signed-up, paying member of the club.

It seems I may not be alone, with Scott Haslem, chief investment officer at Crestone Wealth Management recently saying in the AFR that bond yields have just about peaked, something that “signals a respite for many long-duration equities, including quality tech exposures”.

As if to emphasise the point, the S&P/ASX All Technology Index (ASX: XTX) moved sharply higher after the RBA decision.

Bears will point to a raft of challenges, including falling house prices, higher mortgage repayments, lower consumer confidence, lower corporate profitability, the prospect of higher inflation for longer, and the prospect of recession.

All this comes against a backdrop of the lowest unemployment rate for almost 50 years and the RBA’s forecast of economic growth of over 3% in 2022, moderating to 1.75% in each of the following two years.

Close your eyes and look at the numbers and you’d be excused for assuming it’s plain sailing ahead.

I’m not so naive to think everything is golden.

With household debt running at record levels, and with veteran bank analyst Jon Mott saying up to $250 billion of mortgages taken out in the last few years could be at risk of delinquency, there are clearly tougher times ahead.

Equity markets are forward-looking. As opposed to June — a truly horror month for many investors, particularly for small cap stocks — even in the face of today’s RBA interest rate hike, markets are looking ahead to inflation peaking and to the day central banks get back to “the good old days” and start cutting interest rates again.

It won’t be plain sailing. It won’t be the COVID bounce we experienced in 2020. But neither will it be GFC II. The next bull market may already have begun.

The post Here’s why the next bull market may have already begun appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 shares rocking new, multi-year highs on Tuesday
• Here are the top 10 ASX 200 shares today
• ASX 200 jumps higher as RBA lifts interest rates by another 0.50%
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• What’s going on with the CSL share price on Tuesday?

Motley Fool contributor Bruce Jackson 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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