Day: September 18, 2022

2 high quality ETFs for ASX investors in September

A tattoed woman holds two fingers up in a peace sign.

A tattoed woman holds two fingers up in a peace sign.

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

Rather than deciding on which individual shares you should put your funds into, ETFs allow you to invest in a large group of shares through just a single investment.

With that in mind, here are two ETFs that are highly rated:

BetaShares Global Energy Companies ETF (ASX: FUEL)

The first ETF that investors might want to look at is the BetaShares Global Energy Companies ETF.

As you might have guessed from its name, this ETF provides investors with an easy way to gain exposure to the booming energy sector.

And while oil prices have recently softened, they look unlikely to fall much lower. Particularly given how oil cartel OPEC has threatened to cut production to boost prices.

This would be good news for the companies held by the fund. These include BP, Chevron, ConocoPhillips, ExxonMobil, Halliburton, Kinder Morgan, Phillips 66, Royal Dutch Shell, and Total. BetaShares notes that these companies are larger, more geographically diversified, and more vertically integrated than Australian-listed energy companies.

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

Another ETF for investors to consider is the VanEck Vectors Video Gaming and eSports ETF.

This ETF gives investors access to a portfolio of the largest companies involved in video game development, hardware, and esports. This is an industry benefiting from an estimated 2.7 billion+ gamers globally, which is more than active Apple phones and Netflix subscriptions combined.

According to Statista, revenue in the video games segment is projected to reach US$208.60 billion in 2022 and then grow almost 8% per annum through to US$304.70 billion by 2027.

This bodes well for the companies included in the fund such as graphics processing unit developer Nvidia and gaming giants Electronic Arts, Nintendo, Roblox, Take-Two, and Tencent.

The post 2 high quality ETFs for ASX investors in September 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

See The 5 Stocks
*Returns as of September 1 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 Global Energy Companies ETF – Currency Hedged. 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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Analysts name 2 ASX 200 mining shares to buy

A group of three men in hard hats and high visibility vests stand together at a mine site while one points and the others look on with piles of dirt and mining equipment in the background.

A group of three men in hard hats and high visibility vests stand together at a mine site while one points and the others look on with piles of dirt and mining equipment in the background.

Investors that are wanting to diversify their portfolio with some mining sector exposure might want to check out the two ASX 200 shares listed below.

Both have been tipped as top options for investors in the sector with meaningful upside potential. Here’s what you need to know about these mining shares:

BHP Group Ltd (ASX: BHP)

The first ASX 200 mining share that has been named as a buy is BHP.

The Big Australian is of course one of the world’s largest miners with a collection of high quality operations across a range of commodities. This includes coal, copper, iron ore, and nickel.

The team at Morgans are bullish on the mining giant. This is thanks to the company’s diverse operations, which they feel make it a lower risk option for investors. The broker commented:

We view BHP as relatively low risk given its superior diversification relative to its major global mining peers. The spread of BHP’s operations also supplies some defence against direct COVID-19 impact on earnings contributors. While there are more leveraged plays sensitive to a global recovery scenario, we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile.

Morgans has a buy rating and $48.00 price target on BHP’s shares.

Iluka Resources Limited (ASX: ILU)

Another ASX 200 mining share for investors to consider is Iluka.

It is a mineral sands and rare earths company that owns a number of quality projects across South Australia and Western Australia. One of these is the exciting Eneabba project, where the company is developing a fully integrated rare earths refinery.

Goldman Sachs is very positive on Iluka. This is due to its strong production growth outlook and exposure to in-demand rare earths. The broker commented:

We are positive on ILU’s project pipeline and forecast >40% production growth in mineral sands volumes, c.18ktpa of Rare Earths (~3.5-4ktpa of high value NdPr). We think ILU’s Eneabba RE refinery is a strategic asset considering it will be only the third western world RE refinery

Goldman Sachs currently has a conviction buy rating and $13.30 price target on Iluka’s shares.

The post Analysts name 2 ASX 200 mining shares to buy 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

See The 5 Stocks
*Returns as of September 1 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 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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They say there are only 2 guarantees in life, and this ASX All Ords share is focused on 1 of them

Two funeral workers with a laptop surrounded by cofins.Two funeral workers with a laptop surrounded by cofins.

People will often refer to ‘recession-proof’ investments. Companies that can weather tough economic environments. Consumer staples, such as your supermarket giants and agricultural commodity providers, are often put into this category.

However, the following ASX All Ords share operates in an industry that is as dependable as it gets.

No matter the state of the economy, people will continue to pass away. It is a sad, but inevitable, fact of life. However, for an investor, a funeral service provider could offer a stable and consistent holding to their portfolio.

Personally, I believe Propel Funeral Partners Ltd (ASX: PFP) has huge growth potential in a timeless industry… and here’s why.

Fragmented market ripe for consolidation

The funeral services industry is probably not discussed much due to the nature of the business. Let’s be honest, it doesn’t exactly make for the most cheerful of topics. Though, I tend to think — because of this — it is often overlooked as a worthwhile investment.

There are quite a few compelling tailwinds for the sector. Most notably, the industry is highly fractured — with the majority of funerals in Australia handled by small family-owned and operated service providers. Propel Funeral Partners estimates that around 71.3% of the market consists of these smaller businesses.

This provides a large opportunity for a fast-growing ASX All Ords share, such as Propel, to consolidate the industry. Its main competition is fellow ASX-listed funeral operator Invocare Limited (ASX: IVC), with a market share of 21.7%.

Given the sizeable domestic market opportunity, I believe Propel could continue to win market share and consolidate the industry. Already, the company has demonstrated a successful acquisition strategy. In six years, Propel has grown its revenue from $22.4 million to $145.2 million.

During FY22, the ASX All Ords constituent tallied up six acquisitions for a total of $21 million. Based on the company’s available funding capacity of $136 million, it appears positioned to continue to grow its market share.

In my eyes, it seems the market is unwilling to expect the same level of growth from Propel as it has demonstrated in the past. I’m of the opinion that the management team will continue to execute its strategy.

How has this ASX All Ords share fared?

Over the last 12 months, this ASX All Ords share has far exceeded the market average return. Propel shares are up an impressive 17.9% during this time. Meanwhile, the S&P/ASX All Ordinaries Index (ASX: XAO) has tumbled 10%.

In my opinion, that’s a pretty good example of how reliable this company can be. After all, it operates in a market where every single person uses its service — even if it’s only once.

The post They say there are only 2 guarantees in life, and this ASX All Ords share is focused on 1 of them appeared first on The Motley Fool Australia.

Should you invest $1,000 in Propel Funeral Partners Limited right now?

Before you consider Propel Funeral Partners Limited, 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 Propel Funeral Partners Limited 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.

See The 5 Stocks
*Returns as of September 1 2022

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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 recommended Propel Funeral Partners 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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Chalk and cheese: 2 iconic share investors couldn’t be further apart on the market’s next move

APA share price takeover Two colleagues take on another two colleagues in a tug of war in a high rise building.APA share price takeover Two colleagues take on another two colleagues in a tug of war in a high rise building.

Two opposing views by Wall Street gurus will only add to investors’ angst as the market ends the week deep in the red.

The S&P/ASX 200 Index (ASX: XJO) lost 1.4% to 6,747 on Friday and is down around 3% for the past week.

The weakness won’t surprise many as history has shown September and October to be among the worst times of the year for global share markets.

What is the market’s next move?

But those debating whether to buy the dip for the much anticipated Christmas rally will be torn by conflicting forecasts from Cathie Wood and Ray Dalio.

Wood is the founder of Ark Investment Management and was named top stock picker of 2020 by Bloomberg. Dalio is a billionaire investor and founder of the world’s largest hedge fund, Bridgewater Associates.

Wood is using the market weakness to snap up shares while Dalio is warning of another sharp drop for equities.

Inflation outlook will decide market direction

Their opposite views can be essentially boiled down to inflation expectations. Ark Investment bought 27 shares on Tuesday amid the sharpest sell-off on the NASDAQ-100 (NASDAQ: NDX) since March 2020, reported Bloomberg.

Wood is playing chicken with the US Federal Reserve. The Fed unleashed the market volatility by aggressively hiking interest rates to control runaway inflation.

The buying spree is likely related to Wood’s prediction that high inflation will soon turn into deflation.

As inflation is bad for share valuations, deflation will arguably have the opposite effect. This is particularly so for tech shares, which have borne the brunt of the market sell-off.

Warnings of a new bear market

But not many would share her view on deflation. If anything, Ray Dalio reckons the market is underestimating the inflation problem.

In a tweet to his 234k followers, Dalio said:

Right now, the markets are discounting inflation over the next 10 years of 2.6 percent in the US. My guesstimate is that it will be around 4.5 percent to 5 percent long term, barring shocks (e.g., worsening economic wars in Europe and Asia, or more droughts and floods) and significantly higher with shocks.

He is also predicting that rates will have to rise to around 4.5% too and that will trigger a 20% drop in share prices. A peak-to-through fall of 20% or more would officially put shares in a bear market.

Foolish takeaway

However, Dalio stressed that these are only “guesstimates”. Who can blame him when central banks have gotten their inflation forecasts so wrong?

Perhaps the more important lesson from history is not to try to pick market bottoms. Over the longer-term, persistent investors have made good returns from buying quality shares – regardless of the market cycle.

The post Chalk and cheese: 2 iconic share investors couldn’t be further apart on the market’s next move 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

See The 5 Stocks
*Returns as of September 1 2022

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Motley Fool contributor Brendon Lau 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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