Day: January 23, 2023

3 highly rated ETFs for ASX investors to buy right now

The letters ETF with a man pointing at it.

The letters ETF with a man pointing at it.

Are you looking for some exchange traded funds (ETFs) to buy? If you are, then you may want to take a look at the three ETFs listed below.

Here’s what you need to know about these highly rated ETFs:

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

The first ETF for investors to look at is the VanEck Vectors Video Gaming and eSports ETF. This popular ETF gives investors access to a global video game market that is estimated to comprise almost 3 billion active gamers and growing. This huge market bodes well for the companies held by the fund, which include sector giants such as Electronic Arts, Nintendo, Nvidia, Roblox, and Take-Two.

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

Another ETF to consider is the Vanguard All-World ex-U.S. Shares Index ETF. As its name implies, this ETF provides investors with access to approximately 3,500 companies listed in developed and emerging markets across the globe, excluding the United States. Vanguard notes that this means Australian investors can expand their portfolio to include many sectors that are not well represented in Australia. Among the ETF’s diverse holdings you’ll find the likes of Astra Zeneca, HSBC Holdings, LVMH Moet Hennessy Louis Vuitton, Royal Bank of Canada, Samsung, Taiwan Semiconductor, and Tencent.

Vanguard U.S. Total Market Shares Index ETF (ASX: VTS)

A final ETF for investors to consider is the Vanguard Australian US Total Market Shares Index ETF. This ETF could be a great option for investors that want exposure to the United States stock market. Vanguard notes that as the world’s largest economy, the U.S offers access to a mix of sectors that are under-represented in the Australian market. Technology accounts for around a third of the ETF and includes names such as Amazon, Apple, Alphabet (Google), and Microsoft. In addition, other sectors that are well represented include consumer discretionary (Home Depot, Costco), industrials (Caterpillar) and Health Care (Pfizer, Johnson & Johnson).

The post 3 highly rated ETFs for ASX investors to buy right now appeared first on The Motley Fool Australia.

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While ETFs allow you to diversify your asset base, many new investors don’t realise one important thing. Not all ETFs are the same — or as good as you might think.

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*Returns as of January 5 2023

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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 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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3 excellent ASX 200 growth shares with major upside: analysts

A share market analyst looks at his computer screen in front of him showing ASX share price movements

A share market analyst looks at his computer screen in front of him showing ASX share price movements

Looking for ASX 200 growth shares to buy? Listed below are three that are rated as buys by experts.

Here’s why they could be top options for investors right now:

NextDC Ltd (ASX: NXT)

The first ASX 200 growth share that has been tipped as a buy is NextDC. It is a leading data centre operator with a growing portfolio of world class centres across Australia. The company is also looking at expanding into the Asian market in the near future, which could provide it with significant long term growth opportunities. Morgans is very positive on the company’s outlook and is expecting another strong result in FY 2023 thanks to “structural demand for cloud and colocation [which] remains incredibly strong.”

The broker has an add rating and $13.30 price target on the company’s shares.

ResMed Inc. (ASX: RMD)

ResMed could be another ASX 200 growth share to buy. It is a medical device company with a focus on the sleep disorder treatment market. ResMed has been growing at a strong rate over the last decade thanks to the quality of its products and its large and growing market opportunity. The latter is estimated to comprise almost one billion people with sleep apnoea globally and a little under half a billion people suffering from chronic obstructive pulmonary disease (COPD). And with the majority of these people undiagnosed, ResMed has a long runway for growth.

Macquarie is bullish on ResMed and has an outperform rating and $37.75 price target on its shares.

Xero Limited (ASX: XRO)

A final ASX 200 growth share that has been named as a buy is Xero. It is a provider of a cloud-based accounting solution used by millions of small businesses globally. From these subscribers, the company is generating significant recurring revenue. However, this revenue could still grow materially in the future. With 3.3 million subscribers and a total addressable market of 100 million according to Goldman Sachs, Xero has a huge growth runway over the next decade or two.

It is for this reason that Goldman Sachs has a buy rating and $115.00 price target on its shares.

The post 3 excellent ASX 200 growth shares with major upside: analysts appeared first on The Motley Fool Australia.

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*Returns as of January 5 2023

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Motley Fool contributor James Mickleboro has positions in Nextdc and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed and Xero. The Motley Fool Australia has positions in and has recommended ResMed and Xero. 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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Could this ASX 300 share offer a once-in-a-lifetime chance to triple my money?

Three women cruise along enjoying ice-creams in the sunshine.Three women cruise along enjoying ice-creams in the sunshine.

Codan Limited (ASX: CDA) shares are now back to where they were at the low of the COVID-19 crash in 2020. Two years of disappointing performances have placed the communications and metal detection company’s shares 77% below their 2021 high of $19.33.

Despite the backward move, this S&P/ASX 300 Index (ASX: XKO) member has delivered an outstanding 127% to its shareholders over the past five years when including dividends.

Here’s a look at why I’m planning to load up in an attempt to more than triple my investment.

Detecting an undervalued ASX 300 share

At first inspection, you might notice that Codan’s revenue and net profits after tax (NPAT) were at all-time highs in the last financial year. Then why would the company’s share price be down almost 47% over the previous 12 months?

As always, the market is forward-looking. For Codan, the future isn’t quite as bright for its metal detection segment as in prior years.

In FY22, sales for its detecting products tumbled 20% year on year. Adding to the pain, management is forecasting up to a further 45% slump in detector sales in the first half of FY23. The cause of this waning demand is said to be a reduction in sales in Africa — specifically Sudan — due to a military coup.

Undoubtedly, this has weighed on the optimism among shareholders. The company will be left with a $58 million to $63 million hole in its sales. Unless Codan can grow other markets rapidly or secure some huge communications contracts, this will likely manifest in a weaker profit in FY23 for this ASX share.

Nonetheless, the company has a long track record of expanding into new markets. Likewise, Codan’s management has proven its ability to make sound ad-hoc acquisitions to its communications offering.

These two factors combined give me faith that the company will be able to grow its top line at around 15% per annum post-FY23.

Financial year Revenue projection Earnings projection
FY23 $446 million $67 million
FY24 $513 million $82 million
FY25 $590 million $95 million
FY26 $678 million $122 million
FY27 $745 million $134 million
FY28 $820 million $164 million
**The above are my own forward projections and should not constitute investment advice.

Dividends could supercharge returns

Codan has returned to a net debt position on its balance sheet following numerous acquisitions over the last couple of years. Currently, the debt level looks maintainable for this ASX share. However, if profits fall this year, dividends most likely will also head south.

The company has a goal of paying around 50% of after-tax profits back to shareholders using dividends. As a result, FY23 might be disappointing on the income front for Codan investors. However, sharing in a 50% distribution of profits and reinvesting those using a dividend reinvestment plan (DRP) could greatly increase total shareholder returns in the long run.

TradingView Chart

While they haven’t been the most consistent over the years, Codan’s total dividends have trended higher over time — as shown above.

If this ASX share can regain its footing, reaching $164 million in NPAT by FY26 in the process, I believe Codan is a real contender for tripling my money.

The post Could this ASX 300 share offer a once-in-a-lifetime chance to triple my money? appeared first on The Motley Fool Australia.

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Despite what some people may say – we believe investing in shares doesn’t have to be overwhelming or complicated…

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*Returns as of January 5 2023

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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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Here are the top 10 ASX 200 shares today

Top 10 blank list on chalkboardTop 10 blank list on chalkboard

The S&P/ASX 200 Index (ASX: XJO) wobbled into this week before ultimately closing higher. In fact, it posted its highest close since April 2022, lifting 0.07% to reach 7,457.3 points.

It followed a strong Friday’s trade on Wall Street, led by the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC)’s 2.7% gain.

Perhaps it’s no surprise then, that the S&P/ASX 200 Information Technology Index (ASX: XIJ) led the way on the Aussie bourse. It gained 1.3% today with Block Inc (ASX: SQ2) shares posting their biggest increase, rising 6%.

The S&P/ASX 200 Energy Index (ASX XEJ) also outperformed, gaining 0.9% after oil prices closed last week on a high.

Brent crude oil rose 1.7% to trade at US$87.63 a barrel while US Nymex crude increased 1.2% to US$81.31 a barrel.

On the other hand, the S&P/ASX 200 Health Care Index (ASX: XHJ) lost ground today, falling 0.2% as Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) handed back some of Friday’s gains.

So, having browsed how the ASX 200 broadly performed today, let’s dive into its top 10 biggest gainers.

Top 10 ASX 200 shares countdown

Today’s top-performing ASX 200 stock was Karoon Energy Ltd (ASX: KAR). It lifted 7.4% to close at $2.32 after announcing a 23% increase in reserves at its wholly-owned Santos Basin concession.

These shares made today’s biggest gains:

ASX-listed company Share price Price change
Karoon Energy Ltd (ASX: KAR) $2.32 7.41%
Liontown Resources Ltd (ASX: LTR) $1.47 6.91%
Pilbara Minerals Ltd (ASX: PLS) $4.83 6.15%
Block Inc (ASX: SQ2) $108.51 6.07%
Novonix Ltd (ASX: NVX) $1.85 6.02%
Core Lithium Ltd (ASX: CXO) $1.115 5.69%
Allkem Ltd (ASX: AKE) $13.34 4.22%
Nickel Industries Ltd (ASX: NIC) $1.12 3.23%
ARB Corporation Limited (ASX: ARB) $29.51 3.22%
IGO Ltd (ASX: IGO) $15.16 3.06%

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

FREE Beginners Investing Guide

Despite what some people may say – we believe investing in shares doesn’t have to be overwhelming or complicated…

For over a decade, we’ve been helping everyday Aussies get started on their journey.

And to help even more people cut through some of the confusion “experts’” seem to want to perpetuate – we’ve created a brand-new “how to” guide.

Yes, Claim my FREE copy!
*Returns as of January 5 2023

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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 positions in and has recommended ARB Corporation and Block. The Motley Fool Australia has positions in and has recommended Block. The Motley Fool Australia has recommended ARB Corporation. 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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