If you’d like to make some investments in 2023 but aren’t sure which shares to buy, you could look at exchange traded funds (ETFs).

But which ETFs could be buys? Two that are very popular and could be top options for next year are listed below. Here’s what you need to know about them:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ETF for investors to consider for 2023 is the BetaShares Global Cybersecurity ETF.

As you might have guessed from its name, this fund provides investors with exposure to the leaders in the global cybersecurity sector.

This year there have been a number of major cyberattacks and you can bet that they won’t be the last. This has highlighted just how important cybersecurity is as the world shifts to the cloud.

This bodes well for the companies included in the fund, which stand to benefit from increasing demand from consumers and businesses. This includes Accenture, Cloudflare, Crowdstrike, Okta, and Palo Alto Networks.

Vanguard All-World ex-U.S. Shares Index ETF (ASX: VEU)

Another ETF that could be a top option for investors in 2023 is the Vanguard All-World ex-U.S. Shares Index ETF.

Vanguard notes that the VEU ETF brings the world to your portfolio with around 3,500 companies listed in developed and emerging markets across the globe, excluding the United States.

In addition, it highlights that it can expand a portfolio to include many sectors not well represented in Australia. The largest country allocations are Japan, China, United Kingdom, France, and Canada, with Australia accounting for approximately 5% of the exposure.

Among its holdings you’ll find shares sectors such as financial (e.g. Royal Bank of Canada, AIA Group, HSBC Holdings), consumer discretionary (e.g. Samsung, LVMH Moet Hennessy Louis Vuitton, Sony), technology (e.g. Taiwan Semiconductor, Tencent), industrials (e.g. Toyota) and healthcare (e.g. Astra Zeneca, Roche Holdings).

The post Here are 2 fantastic ETFs for ASX investors in 2023 appeared first on The Motley Fool Australia.

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More reading

• I’d aim for $1 million, buying just 10 cheap ASX shares
• Don’t miss these very exciting ASX ETFs in December
• 3 fantastic ETFs for ASX investors to buy in December
• Here’s how I’d invest $20,000 in ASX shares today to double my money
• 3 top ETFs for ASX investors to buy and hold for a decade

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 Cybersecurity ETF. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity 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 Fortescue Metals Group Limited (ASX: FMG) share price was on form last week and continued its ascent.

So much so, the iron ore miner’s shares are now up almost 50% since hitting a 52-week low at the end of October.

Investors have been bidding the Fortescue share price higher in response to a strong rebound by the iron ore price amid the easing of COVID restrictions in China.

Where next for the Fortescue share price?

One leading broker appears to believe that investors should be locking in their gains and heading to the exits before it’s too late.

According to a note out of Morgans, its analysts have reiterated their reduce rating with a trimmed price target of $14.50.

Based on the current Fortescue share price of $21.39, this implies potential downside of 32% for investors over the next 12 months.

What did the broker say?

Morgans believes that investors have got ahead of themselves when it comes to iron ore miners. It commented:

Over the last month iron ore price (+27%) and share prices for BHP (+16%), RIO (+20%) and FMG (+27%) have bounced hard off their November lows. We agree that the developments are likely to see improved demand conditions in early 2023, but the issue is how fast the equity market has moved to price in this recovery.

This is reflected in the current FCF yields on offer in our iron ore miners, which even at spot prices are a modest 6%/6%/9% for BHP/RIO/FMG respectively, which is well below their average levels over recent years.

Overall, the broker believes that investors should sit tight and wait for a better entry point. It concludes:

We can certainly see the potential green shoots for a recovery in demand drivers for steel, but it is also not hard to see a fresh bout of volatility before that recovery takes hold. We view current share prices on our large-cap iron ore miners as suggesting we have to ‘pay up front’ for that potential recovery, leaving us with lower conviction. As a result we downgrade our rating on BHP and RIO to HOLD (from ADD), while maintaining a REDUCE on FMG.

The post Look out below! Broker tips Fortescue share price to fall 32% appeared first on The Motley Fool Australia.

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More reading

• Why did ASX 200 iron ore shares like BHP have such a cracking Friday
• Will Fortescue’s green hydrogen plans really pay off for shareholders?
• Forecast for ASX 200 iron ore shares in 2023: bull vs bear
• Is this the beginning of a beautiful green hydrogen friendship between Fortescue and Rio Tinto?
• Dividend darling becomes disappointment: What happened to Fortescue shares?

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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Flaming hot inflation and raging interest rate rises are taking their toll on how far the average Aussie earnings can stretch. It’s times like these that passive income from dividend-paying S&P/ASX 200 Index (ASX: XJO) stocks become all the more valuable.

An extra $1,800 each year can go a long way to easing some of the financial strain. Yet, despite a 4% return on cash savings now being a reality, you’d need to stash $45,000 to earn $1,800 annually.

That’s why I’d personally be much more inclined to invest in Australia and New Zealand Banking Group Ltd (ASX: ANZ) instead. The big four bank has filled its shareholders’ pockets with a generous $1.46 worth of fully franked dividends this year.

Notably, the exceptional 6.2% yield is not the product of an abnormally high payout this year. In the last 10 years, ANZ has typically paid between $1.40 to $1.80 in dividends per share.

Out of all the ASX bank stocks, why ANZ?

You might be thinking: ANZ is the only big four bank in the red compared to a year ago, why would you want to invest in it for passive income? To that I say, great question, thanks for asking! So here’s my reasoning…

While it is true ANZ is the worst-performing ASX big four bank stock in the last 12 months, based on its share price — fundamentally it is the best, at least in my eyes.

Compared to a year ago, the smallest member of the major four has dialled up its earnings the most. Net profits increased 15.5% year-on-year, while its peers were hard-pressed to break a 10% clip.

In addition, the potential acquisition of Suncorp could bolster ANZ’s loan book with a further $47 billion in home loans and $11 billion in commercial loans.

Even with the potential upside, ANZ appears to be trading at a discount to its peers. Right now, the price-to-earnings (P/E) ratio on ANZ is hovering around 10 times. Meanwhile, the bigger end of town is fetching between 13 to 18 times earnings.

Paving the way to $1,800 passively

The most important component in this assessment is ANZ’s passive income potential. In the big four landscape, the blue bank offers the biggest dividend yield at 6.2%.

Now, to generate $1,800 per year in income from this dividend investment, one would only need to buy six shares a week over four years — based on the current share price. The table below outlines the journey of a willing investor.

Year	Number of shares	Annual income
1	312	$455
2	624	$911
3	936	$1,367
4	1,248	$1,822

If all went to plan — and ANZ continues to offer a similar dividend — in four years’ time, $1,822 would be flowing in passively.

Earlier in the article, I highlighted how $45,000 would be required to generate the same income. Whereas, the ANZ route would require a more manageable $29,465 investment over four years.

It might still seem like a lot now, but at $142 per week, it quickly adds up. And don’t forget — unlike cash, your initial investment in an ASX stock can appreciate in value over time.

The post I’d buy 6 shares a week of this ASX stock for $1800 a year in passive income appeared first on The Motley Fool Australia.

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More reading

• Here’s how I’d invest $20,000 in ASX 200 shares for a 7% dividend yield
• Can ANZ shares finish the year with a strong performance in December?
• Why did the ANZ share price tumble in November while the ASX 200 gained 6%?
• The 3 best-performing ASX 200 bank shares in November revealed
• The 10 ASX 200 shares responsible for 60% of all Aussie dividends last quarter

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 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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If you’re getting ready to retire, picking the right ASX dividend shares can be a tough decision. Planning for a time when there is no weekly (or fortnightly) paycheque coming through the door does amp up the pressure a little.

The ASX has hundreds of dividend shares to choose from. But here is one that I think could have the potential to fulfil all the needs of a retiree in one fell swoop.

Plato Income Maximiser Ltd (ASX: PL8) is a listed investment company (LIC) that is built for retirees, or as the provider puts it, “designed specifically with SMSF and pension-phase investors in mind”.

This LIC holds a portfolio of ASX divided shares, chosen for their dividend and franking credit potential. Some of its current holdings include BHP Group Ltd (ASX: BHP), South32 Ltd (ASX: S32), Woodside Energy Group Ltd (ASX: WDS) and Westpac Banking Corp (ASX: WBC)

A retiree share that pays monthly dividends

Plato Income Maximiser pays out a dividend every month to its investors. These typically come fully franked too. At the last share price, the yields are the same.

So that’s a lot of dividend income investors can enjoy in retirement. But let’s talk about performance. There are many income-focused investments on the ASX. But more than a few tend to prioritise income above capital preservation, which can be detrimental to investors’ overall financial returns in the long run.

So as of 31 October (the latest figures available), the Palto Income Maximiser had delivered a total return of 4.5% over the preceding 12 months. That includes this LIC’s management fee of 0.8% per annum. That looks pretty good against the ASX 200 benchmark’s loss of 0.5% over the same period.

Over the past three years on average, this LIC has averaged a return of 7.5% per annum, 7.1% of which came in the form of dividend income. Again, that beats the benchmark’s return of 6.2% per annum over the period.

The Plato Income Maximiser has also returned an average of 8.9% per annum (7.6% of which came from dividends) since its inception in April 2017. Once again, that beats out the benchmark, which returned an average of 8.4% per annum.

So this might make the Plato Income Maximiser LIC a perfect option to consider for an investor approaching retirement today. Monthly dividends that come fully franked, a performance that has consistently beaten the market… what more could a retiree ask for?

The post Getting ready to retire? This might be the only ASX dividend share you’ll ever need appeared first on The Motley Fool Australia.

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More reading

• I’d buy 6 shares a week of this ASX stock for $1800 a year in passive income
• ‘Strong buy’: Experts name 2 ASX shares enjoying a post-COVID resurgence
• Here’s how I’d invest $20,000 in ASX 200 shares for a 7% dividend yield
• Earn passive income with these strong ASX 200 dividend shares: brokers
• Down 14% this week, are Liontown shares now ‘relatively less expensive’?

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 recommended Westpac Banking. 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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