Day: December 23, 2022

3 excellent ETFs for ASX investors to buy in January

The letters ETF with a man pointing at it.

The letters ETF with a man pointing at it.

If you’re looking for an easy way to invest in international shares for diversification in 2023, then exchange traded funds (ETFs) could be the answer.

But which ETFs should you look at? Listed below are three excellent ETFs that could be worth getting better acquainted with in January.

Here’s what you need to know:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ETF for investors to look at is the BetaShares Global Cybersecurity ETF. As you might have guessed from its name, this ETF give investors access to the biggest players in the global cybersecurity sector. BetaShares notes that this is heavily under-represented on the ASX, making this ETF particularly attractive for local investors. And with cyberattacks becoming ever more prevalent (just ask Medibank and Optus), demand for cybersecurity services is forecast to increase materially in the future. Among the companies in the fund are cybersecurity giants Accenture, Cloudflare, Crowdstrike, Okta, and Palo Alto Networks.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another ETF to consider in January is the BetaShares NASDAQ 100 ETF. This ETF is one of the most popular around and it isn’t hard to see why. It gives investors access to 100 of the largest non-financial shares on the famous NASDAQ index. This means you’ll be buying a stake in giants including Alphabet, Amazon, Apple, Facebook, Microsoft, Netflix, and Tesla, to name just a few. And with their shares down materially in 2022, now could be a great time to invest with a long term view

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

A final ETF for investors to look at in January is the VanEck Vectors Video Gaming and eSports ETF. This ETF could be a good option if you already own the NDQ ETF. That’s because this fund gives investors access to a portfolio of the largest companies involved in video game development, hardware, and esports. This includes Nvidia, Roblox, Take-Two, and Electronic Arts. VanEck notes that these companies are in a position to benefit from the increasing popularity of video games and eSports. It also points out that the ETF gives investors the opportunity to diversify their portfolio by providing tech options outside FAANG stocks.

The post 3 excellent ETFs for ASX investors to buy in January appeared first on The Motley Fool Australia.

“Cornerstone” ETFs for building long term wealth…

Scott Phillips says plenty of people who hear the ‘ETFs are great’ story don’t realise one important thing. Not all ETFs are the same — or as good as you may think.

To help investors navigate this often misunderstood area of the market, he’s released research revealing the “cornerstone” ETFs he thinks everyone should be looking at right now. (Plus which ones to avoid.)

Click here to get all the details
*Returns as of December 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. owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF 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 Bruce Jackson.

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Stock market correction: A once-in-a-decade chance to get rich?

A woman wearing yellow smiles and drinks coffee while on laptop.A woman wearing yellow smiles and drinks coffee while on laptop.

S&P/ASX 200 Index (ASX: XJO) investors might be approaching the end of the year with less enthusiasm than they closed 2021 with. Indeed, it’s been a trying year for market watchers. The index has so far backed up last year’s 13% gain with a 6.5% tumble. But I believe there’s a good reason to celebrate the ASX 200’s market correction.

It has likely created numerous buying opportunities capable of building riches.

Stock market correction or wealth-building opportunity?

There’s a bit more to the ASX 200’s 2022 fall than meets the eye. Namely, the vastly different performances posted by its various sectors.

The index has been buoyed by soaring energy shares and a strong performance from miners this year.

The S&P/ASX 200 Energy Index (ASX: XEJ) has jumped 37% year to date amid soaring oil and coal prices, mainly spurred by the conflict in Ukraine, and the S&P/ASX 200 Materials Index (ASX: XMJ) has outperformed the broader market by around 10% so far this year.

Conversely, the S&P/ASX 200 Real Estate Index (ASX: XRE) has plunged 25% amid rising inflation and resulting rate hikes.

Similar factors have likely dragged the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) 24% lower.

Now, there’s no guarantee these embattled sectors will transform their poor performance into gains in 2023. Particularly as many of the factors compressing them haven’t abated yet.

However, I personally expect them to recover their losses over the longer term.

I’ll be hunting for ASX 200 bargains in 2023

I’ll be taking a good look at many compressed real estate and consumer discretionary shares in the new year in a bid to find diamonds in the rough of the ASX 200 correction.

If I find a few that I believe could be future winners, I’ll aim to hold them for the next five to ten years, at least. Here’s why.

Historically, the market has always recovered from downturns and corrections to post new highs. Take the Dotcom bust, the Global Financial Crisis, and the COVID-19 downturn for example.

Indeed, the ASX 200 has gained more than 50% over the last 10 years despite this year’s market correction. If we also factor in dividends, the index returned an average of around 9.3% over the decade to 2021.

Thus, I hope to employ a combination of buying the dip and compounding gains by reinvesting dividends in a bid to realise above-market returns on the back of 2022’s correction over the coming decade.

Though, no investment is guaranteed to provide returns or downside protection and past performance isn’t an indication of future performance.

The post Stock market correction: A once-in-a-decade chance to get rich? 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 December 1 2022

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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 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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It’s settled then: Why the Retail Food Group share price is prancing 10% today

A group of ASX investors celebrating increasing share price with champagne.A group of ASX investors celebrating increasing share price with champagne.

The Retail Food Group Ltd (ASX: RFG) share price is satisfying the appetites of its shareholders today amid its latest update.

As we head into the afternoon, shares in the food and beverage company are trading 10.1% higher at 7.6 cents apiece. The performance is more impressive given the context of the broader market on Friday.

At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is 0.81% weaker than yesterday.

Messy past comes due

Since 2017, Retail Food Group has been shrouded in controversy and contempt. Explosive allegations were made regarding the company’s dealings with franchisees following an investigation conducted by The Sydney Morning Herald.

At the time, it was alleged that Retail Food Group failed to provide adequate financial information for the stores being sold to franchisees — among other issues — leading to financial ruin, at times, for those that operated stores such as Michel’s Patisserie, Donut King, and Brumby’s.

Understandably, the market grew nervous about the situation, sending the Retail Food Group share price into the dirt. In the space of two years, the company’s shares descended a crippling 98%.

The reports prompted the Australian Competition and Consumer Commission (ACCC) to commence proceedings against Retail Food Group. Fast forward to today and we have our verdict.

According to the release, Retail Food has agreed to settle with the ACCC. As part of the agreement, the company will pay approximately $8 million to the impacted franchisees. Additionally, the company will waive around $1.8 million worth of franchisee debts.

Retail Food pointed out that the proceeding would be dismissed without:

  • making any admission to the allegations
  • paying any pecuniary penalty; or
  • being subject to any injunction, disclosure, or adverse publicity order

Path travelled by the Retail Food Group share price

It has been a bumpy old ride for Retail Food shares in 2022, swinging between 4 cents and 8 cents. Yet, today’s gain takes the company’s shares into the green for the year.

In fact, the food and beverage business has outperformed the ASX 200 by approximately 14%. A title that not too many ASX shares can claim to hold at the end of this challenging 12-month stint.

The post It’s settled then: Why the Retail Food Group share price is prancing 10% today appeared first on The Motley Fool Australia.

One “Under the Radar” Pick for the “Digital Entertainment Boom”

Discover one tiny “”Triple Down”” stock that’s 1/45th the size of Google and could stand to profit as more and more people ditch free-to-air for streaming TV.

But this isn’t a competitor to Netflix, Disney+ or Amazon Prime Video, as you might expect…

Learn more about our Tripledown report
*Returns as of December 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 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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What I’m asking Santa for this Christmas

A young woman wearing a beanie as the snow falls around her smiles and opens a Christmas present in a box looking excited and smiling to represent the special dividend for Grange Resources shareholders announced today

A young woman wearing a beanie as the snow falls around her smiles and opens a Christmas present in a box looking excited and smiling to represent the special dividend for Grange Resources shareholders announced today

Writing this – and expecting anyone to read it – on Christmas Eve-eve might be an optimistic thing to do.

After all, we’re apparently going to spend $440 million in a single hour – between 12pm and 1pm – today.

(I can neither confirm nor deny I’ll be one of the people sneaking out at lunchtime to do some last minute Christmas shopping that I should have done days ago!)

That’s part of the $66 billion we’re expected to spend over the Christmas period, overall – up 7% or so on last year’s figure.

What slowdown, huh?

Of course, those numbers are totals, and don’t show the range of circumstances for different people across our wide brown land.

Some have been doing it tough for a while. Some will see this as a ‘last hurrah’ of sorts, before tightening their belts in 2023. Others will go on, blissfully unimpacted.

Such, as always, is life.

That doesn’t make it fair. Or okay. But, as the cool kids say, it is what it is.

Which brings me to some Christmas wishes.

This is the sort of thing that can become pretty saccharine, if you let it.

Or cynical, if you push too hard in the other direction.

You probably know I’m an optimist.

I’m also, despite occasional evidence to the contrary from public and private figures, a believer in the better angels of our nature.

Faced with the choice to be too optimistic or too pessimistic, I’ll take the former, every time.

Indeed, you can’t be both a pessimist and a (successful) investor.

Investing is, at its core, the act that comes from believing things will get better, in time.

And if I’m going to get scorned for being too optimistic, too positive, and for hoping for a better future for us all, then go your hardest.

I’m going to keep believing in the incredible drive of the human spirit.

Oh, we’re a deeply flawed and imperfect species, for sure.

But we make things better, over time.

For every ‘but what about’, I’ll give you two-dozen examples of the progress that we’ve been responsible for.

Not to negate those very reasonable concerns, but to show you that with some effort and goodwill, we have both the ability and the track record to suggest that we can overcome.

If you’re offended by optimism, stop reading now. There’s plenty of doom and gloom being offered by the usual suspects, if you prefer to read that, instead.

Christmas, 1939, felt pretty rough for many, as war raged.

Christmas, 1981, felt pretty ordinary, as high oil prices and rising interest rates confronted out economy.

Christmas, 1999, felt good… but the market crashed soon after.

And?

And we overcame.

We got better.

Our world is a much, much better place, today, than before any of those times, despite our current challenges.

Christmas, 2019, was to be the calm before the pandemic storm.

And it’s not over.

But I have a supremely high level of confidence that we’ll look back on that time, in years to come, and marvel at what we achieved in the 3, 5, 15 and 25 years since.

And I think investors will be, as a group, much richer.

And so, those wishes?

Well, I hope interest rates peak soon. Not because the pollies have said they should (they’re talking out of barely-concealed self-interest), but because I hope those higher rates achieve their aim of bringing down inflation during 2023.

I hope, as inflation cools, the share market rises. Not too fast – we don’t need more irrational exuberance – but in keeping with the rising potential of the companies listed on it.

I hope investors, traders and speculators manage to avoid the next bubble. The next ‘hot stock’, sector or commodity. The only thing worse than your neighbour getting rich while you miss out is joining him and both of you losing your shirts. There are too many examples of the latter.

I hope our politicians – whole parliaments, not just governments – make laws that improve our society and economy. For the long term. Increasing wide-spread prosperity is its own fly-wheel, creating more and more prosperity as it goes. Short-termism that favours a little money now will cost us a lot of money later – the very opposite of smart investing… and smart governance.

I hope our members and readers keep the faith. Not for our sake, but for yours. We’ve been here before. Countless times. But the market is higher than at those previous times, just as it was those times, too. I hope the lessons of history convince you that continuing to invest is the right thing to do.

And I hope that, as we climb to (all-but inevitable) higher heights in the future, we remember how this felt, and what comes next, so that during the next downturn we are able to more easily keep that faith.

Saccharine enough for you?

I hope so.

Because the long term future has always belonged to the optimists. Optimists with fortitude, to be sure, but optimists nonetheless.

Thank you to those of you who are Motley Fool members. Thank you to those of you who are regular – or even occasional – readers. And thank you to those who take the time to respond – to let me know where I’ve got it right… and wrong.

I like picking stocks. I like making money. But mostly, am I privileged to have a job that allows me to help others work toward their financial goals.

I hope 2023 takes you one year closer to yours.

Fool on!

The post What I’m asking Santa for this Christmas 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 December 1 2022

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Motley Fool contributor Scott Phillips 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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