With inflation showing signs of easing globally, the outlook for the tech sector is improving by the day.

If you’re wanting to invest in the sector before it rebounds fully, then the exchange traded funds (ETFs) listed below could be worth considering.

Here’s why they could be great options right now:

BetaShares Global Cybersecurity ETF (ASX: HACK)

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

As you might have guessed from its name, this ETF gives investors exposure to the leading companies in the global cybersecurity sector.

And what a place to be right now! Last year there were countless cyber attacks reported in the media. Medibank, Optus, Rockstar, and Uber were just a few notable examples.

These attacks demonstrate how the internet is a bit like the Wild West for businesses (and consumers) right now and that going without adequate cybersecurity is a major risk.

In light of this, it wouldn’t be surprising if the already strong and growing demand for cybersecurity services went up a gear in 2023.

This bodes well for companies included in the fund such as Accenture, Cloudflare, Crowdstrike, Okta, and Palo Alto Networks.

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

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

This ETF gives investors exposure to many of the largest companies involved in video game development, eSports, and gaming related hardware and software.

VanEck notes that the increasing popularity of video games and eSports means that these companies are well-placed to benefit.

One of the companies in the fund is Roblox. It is the game developer behind the eponymous Roblox online metaverse platform and game creation system. At the last count, Roblox had 56.7 million daily active users and was generating significant revenue from them.

In addition, you’ll be buying a slice of game developers Activision Blizzard, Take-Two, and Electronic Arts, as well as graphics processing unit (GPU) developer Nvidia.

The post Tech rebound! Here are 2 ASX ETFs to buy before it’s too late appeared first on The Motley Fool Australia.

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More reading

• US inflation is cooling: I’d buy these 3 ASX shares right now
• These could be top ETFs for ASX investors to buy in January
• 3 excellent ETFs for ASX investors to buy in January
• 3 fantastic ETFs for ASX investors to buy for 2023

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 Australia has recommended 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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Looking for a growth share or two to buy? If you are, you may want to look at the two listed below.

Here’s why these ASX growth shares are rated highly right now:

Corporate Travel Management Ltd (ASX: CTD)

Although a number of ASX travel shares have recently hit 52-week highs, the same cannot be said for Corporate Travel Management, which is languishing 37% lower than its highs.

The team at Morgans appears to see this as a buying opportunity for investors, especially given how they believe the company will come out of the pandemic in a stronger position. It explained:

CTD is our key pick of the travel sector. For investors that can take a medium-term view, we see substantial upside in its share price as the company recovers from the COVID-affected travel downturn. In fact, CTD should be a materially larger business post COVID given it has made two highly accretive acquisitions during the downturn. The company has also won a lot of new business, implemented structural cost-out opportunities and continued to develop its market-leading technology offering which means it will require less staff in the future. CTD is well managed and has a strong balance sheet (no debt).

Morgans has an add rating and $25.65 price target on the company’s shares. This implies 53% upside from the latest Corporate Travel Management share price of $16.66.

Xero Limited (ASX: XRO)

This cloud accounting platform provider could be another ASX growth to buy.

That’s the view of analysts at Goldman Sachs, which believe Xero has a “compelling global growth story.”

Particularly given how it currently provides its core accounting solution to a total of 3.3 million global subscribers, which is well short of its total addressable market (TAM) of ~45 million+ subscribers. Goldman commented:

We see Xero as very well placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds, with >100mn SMBs worldwide representing a >NZ$76bn TAM. Following the recent underperformance (absolute/relative), we see an attractive entry point into a compelling global growth story and our preferred large-cap technology name in ANZ, and are Buy rated.

Goldman Sachs has a buy rating on Xero’s shares with a $115.00 price target. Based on the latest Xero share price of $71.07, this implies potential upside of 62% for investors.

The post Analysts say these ASX growth shares can generate huge returns for investors appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why did the Xero share price take such a beating on Wednesday?
• Why European Lithium, PEXA, PolyNovo, and Xero shares are dropping today
• ‘Attractively priced’: Why fund is excited by these 2 ASX 200 shares
• Could ASX 200 travel shares be set for a major boost in 2023?

Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Corporate Travel Management. 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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So you want to invest $5,000 into ASX shares to produce a second income? Great idea. Passive income is something that I’m sure all of us would love more of.

What could be better than getting paid without needing to work? ASX dividend shares are a great way of gaining a secondary income source.

The dividends that income shares pay out are a true form of passive income. And unlike property, you can start receiving income from investing as little as $500.

So if you wanted to invest $5,000 into high-yield ASX shares, where is a suitable one to start?

Well, there are more than a few options you can choose from.

Where not to look for income in 2023

But let’s start with a couple of tips regarding areas to avoid. Firstly, don’t get trapped into a dividend share just because it has a high yield. For example, Magellan Financial Group Ltd (ASX: MFG) currently has a trailing dividend yield of 19.19% right now.

But Magellan has been bleeding customers for more than a year now, and few investors would expect the company to be able to maintain its 2022 dividends this year. That’s probably why the company has lost 40% of its value since last August. It could well be a classic ‘dividend trap’.

I would also avoid investment funds that charge high fees. Listed Investment Company (LIC) WAM Capital Ltd (ASX: WAM) currently has a trailing dividend yield of 9.63% on the table right now.

But this LIC charges an annual management fee of 1.25% whilst woefully underperforming far cheaper index funds over the past five years on a total returns basis.

How to invest $5,000 for high-yield ASX dividend shares

Instead, I would look to something like the Vanguard Australian Shares Index ETF (ASX: VAS). Right off the bat, this exchange-traded fund (ETF) charges a far more reasonable 0.1% per annum to its investors.

But this ETF holds 300 of the largest ASX shares in its portfolio. That gives investors massive diversification in one easy share. Most of the shares that this ETF holds are dividend payers too, which means that the income the fund receives from these shares is passed through to investors.

Last year, this ETF doled out a total of $6.36 in dividend distributions per unit. On today’s pricing, that gives the Vanguard Australian Shares ETF a trailing yield of around 7%. If it stays that way in 2023, you would look forward to a yearly income of $350 from your $5,000 investment right off the bat.

But if you are bent on investing in individual shares, there are plenty of good-quality names to choose from too. Some companies I would look to for solid income in 2023 and beyond include Westpac Banking Corp (ASX: WBC), Washington H. Soul Pattinson and Co Ltd (ASX: SOL) and Telstra Group Ltd (ASX: TLS).

These are healthily profitable, dominant and mature companies that (in my view) don’t have any red flags waving present.

The post How I’d invest $5,000 in high-yield ASX shares to earn a second income appeared first on The Motley Fool Australia.

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• 3 ASX 200 shares I own for big dividends in 2023
• Invested $1,000 in the Vanguard Australian Shares ETF (VAS) 5 years ago? Here’s how much dividend income you’ve received
• Here’s why 2023 will be a huge year for passive income
• Generations of Aussie investors own this ASX ETF. Do you?
• How different is the Vanguard Australian Shares Index ETF (VAS) now compared to a year ago?

Motley Fool contributor Sebastian Bowen has positions in Telstra Group, Vanguard Australian Shares Index ETF, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Telstra Group and Washington H. Soul Pattinson and Company Limited. 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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

Aristocrat Leisure Limited (ASX: ALL)

According to a note out of Citi, its analysts have retained their buy rating and $41.20 price target on this gaming technology company’s shares. Citi has analysed digital bookings data to December and is happy with what it saw. It highlights that bookings lifted on a seasonal Christmas boost last month and that Aristocrat’s Pixel United business continues to outperform. The Aristocrat share price ended the week at $33.20.

Coronado Global Resources Inc (ASX: CRN)

A note out of Goldman Sachs reveals that its analysts have retained their buy rating and lifted their price target on this coal miner’s shares to $2.25. The broker made the move after looking at the mining sector. It believes Coronado Global is a top option for investors looking for met coal exposure following China’s reopening. Particularly if you’re looking for dividends. Goldman is expecting strong met coal prices to allow the company to pay a 21.9 US cents per share dividend in FY 2023. This equates to a 15.5% yield at current prices and exchange rates. The Coronado Global share price was fetching $2.03 at Friday’s close.

Macquarie Group Ltd (ASX: MQG)

Analysts at Morgan Stanley have retained their overweight rating and $215.00 price target on this investment bank’s shares. The broker believes that Macquarie is well-placed to benefit from volatility in commodity markets. Particularly given that approximately a third of its revenue comes from its commodities business. The Macquarie share price ended the week at $178.27.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

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More reading

• Burning hot: The outlook for ASX 200 energy shares in 2023
• Here are the top 10 ASX 200 shares today
• Buy this ASX 200 bank share with 21% upside: Morgan Stanley
• Why Integrated Research, Macquarie, Pilbara Minerals, and South32 shares are pushing higher
• 3 ASX 200 dividend shares with HUGE passive-income potential for FY24

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 recommended Macquarie Group. 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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