Day: February 4, 2023

3 scintillating ETFs for ASX investors to buy this month

A group of young people lined up on a wall are happy looking at their laptops and devices as they invest in the latest trendy stock.

A group of young people lined up on a wall are happy looking at their laptops and devices as they invest in the latest trendy stock.

There are plenty of exchange traded funds (ETFs) for investors to choose from on the Australian share market.

But which ETFs might be top options right now? Listed below are three exciting ETFs that could be worth considering:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF to look at is the BetaShares Asia Technology Tigers ETF. This ETF gives investors exposure to the best tech stocks in the Asian market. This means you’ll be buying the likes of ecommerce giant Alibaba, search engine company Baidu, and WeChat owner Tencent. And with tech stocks back in favour with investors, China reopening, and the BetaShares Asia Technology Tigers ETF still down meaningfully from its highs, this could be an opportune time to make an investment.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The BetaShares NASDAQ 100 ETF could be another ETF for investors to consider buying. This popular ETF gives investors exposure to the 100 largest (non-financial) stocks on Wall Street’s NASDAQ index. These are many of the largest companies in the world and household names such as Amazon, Alphabet, Apple, Meta, Microsoft, Netflix, Nvidia, and Tesla. And despite a recent rebound, the ETF is still down 16% over the last 12 months. This could make it a good time to consider an investment.

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

A third and final ETF for ASX investors to consider buying is the VanEck Vectors Video Gaming and eSports ETF. This tech-focused ETF gives investors access to a global video game market estimated to comprise almost 3 billion active gamers and growing. Among its holdings are game developers such as Electronic Arts, Nintendo, Roblox, and Take-Two.

The post 3 scintillating ETFs for ASX investors to buy this month appeared first on The Motley Fool Australia.

ETF for beginners – Building wealth with ETFs – Got $1,000 to invest?

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.

Discover the time-tested tactics savvy investors use to build a truly balanced and diversified ETF portfolio. A portfolio investors could aim to hold for years.

Click here to get all the details
*Returns as of February 1 2023

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Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended VanEck Vectors Video Gaming And eSports ETF and Betashares Capital – Asia Technology Tigers 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 Great Rotation’ has begun: Expert declares tech shares will provide ‘strong returns’ in 2023

Happy man and woman looking at the share price on a tablet.Happy man and woman looking at the share price on a tablet.

Regular readers of The Motley Fool would not need reminding that technology shares took a brutal beating in 2022.

But with the S&P/ASX All Technology Index (ASX: XTX) up 15.5% already this year, one expert has declared the sector is back with a vengeance.

DeVere Group chief executive Nigel Green said that financial updates from US tech giants this week would commence “The Great Rotation back into growth stocks”.

“As market conditions shifted in 2022, investors dumped growth stocks, like tech, in favour of value stocks which were deemed more suitable to the challenging environment,” he said. 

“But what is happening now, we believe, is the beginning of a rebound.”

Mixed results for tech giants

Green did admit the short-term results for big tech were mixed.

“Facebook’s parent company Meta Platforms Inc (NASDAQ: META) has exceeded estimates for revenue in its fourth-quarter earnings report, with the stock soaring in extended trading on the results,” he said.

“While Amazon.com Inc (NASDAQ: AMZN)’s earnings are expected at $0.15 per share, which would be an 89% decrease from the same quarter in 2021.”

Green predicted that Apple Inc (NASDAQ: AAPL) would see declining revenue for the first time since early 2019.

Alphabet Inc (NASDAQ: GOOGL), the parent company of Google, is expected to report a third consecutive quarter of declining earnings.”

But this won’t stop long-term investors piling back into the tech sector, according to Green.

He cited two reasons why The Great Rotation is on in earnest.

“First, valuations of tech and other growth stocks are currently low having been hit by the previous rotation into value stocks,” said Green.

“Investors are now eyeing these super attractive entry points to top-up their portfolios as the trend is reversing.”

Secondly, investors are looking forward to how macroeconomic factors might change.

“Inflation has seemingly peaked and interest rates are set to stabilise, which takes away a major obstacle for tech stocks.”

Bet on still-cheap tech for strong returns 

Green thus declared that “tech stocks are back” and urged punters to take advantage.

“Rotation into the right growth stocks will provide strong returns.”

He warned, though, that this is not a time for investors to “buy everything”.

“There will be big winners and losers. They must concentrate on high quality, profitable companies which can consistently maintain or steadily grow margin[s].”

And despite lukewarm results, the tech giants shouldn’t be written off.

“[They] still have piles of cash, in some cases hundreds of billions of dollars, and remain enormously profitable,” said Green.

“In addition, these companies maintain considerable user bases, world-class research and development, plus some of the smartest talent on the planet.”

The post ‘The Great Rotation’ has begun: Expert declares tech shares will provide ‘strong returns’ in 2023 appeared first on The Motley Fool Australia.

Renowned futurist claims this could be… “The last invention that humanity will ever need to make”?

Tech billionaire Mark Cuban believes the world’s first trillionaires are going to come from it…

And just like the internet and smartphones before it, this technology is set to transform the world as we know it. It’s already changing the way you work, how you shop… and it’s even helping to save lives — Perhaps that’s why experts predict it could grow to a market defying US$17 trillion dollar opportunity?

If you’re wondering what could be the engine room of the next bull market… You’ll need to see this…

Learn more about our AI Boom report
*Returns as of February 1 2023

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tony Yoo has positions in Alphabet and Amazon.com. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon.com, Apple, and Meta Platforms. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet, Amazon.com, Apple, and Meta Platforms. 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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20+ years of growing dividends. Why I plan to buy more of this ASX 200 stock in 2023

Deterra share price royalties top asx shares represented by investor kissing piggy bankDeterra share price royalties top asx shares represented by investor kissing piggy bank

An ASX 200 dividend stock with a five or ten-year streak of raising their dividends is usually a good sign that you’ve found a quality income stock. But an ASX 200 dividend stock with a 20-year-plus streak? That’s ASX dividend royalty.

That’s exactly what the Washington H. Soul Pattinson Co Ltd (ASX: SOL) share price has on offer for income investors today.

Why Soul Patts is a quality ASX 200 dividend stock

I already own Soul Patts shares – in fact, the company is one of my top ASX holdings. But I plan to add far more of this would-be ASX dividend aristocrat to my portfolio in 2023, if the pricing allows it.

I would go one step further and argue that if I had to own just one ASX 200 dividend stock in my portfolio, this would be it.

But let’s backtrack a little and get into the weeds of what makes this company such a special ASX dividend share.

So Soul Patts is one of the oldest companies on the ASX 200. It first put down roots way back in 1872, but become the company we know today in 1903. Its first calling was pharmacies, but today, Soul Patts is a bit of a hard company to pigeonhole.

Its primary business is owning large stakes in other investments for the benefit of its shareholders. In this way, it arguably functions closer to a listed investment company (LIC) or a managed fund rather than the typical kinds of companies we see on the ASX.

Soul Patts invests prudently in a large and diversified portfolio of assets. These include a portfolio of blue-chip shares gained in the LIC Milton Corporation acquisition in 2021. But it also includes its large, strategic investments in a handful of ASX shares. 

For example, Soul Patts owns 12.6% of TPG Telecom Ltd (ASX: TPG), 39.9% of New Hope Corporation Limited (ASX: NHC) and 43.3% of Brickworks Limited (ASX: BKW).

The company also owns a stable of unlisted assets, which includes assets ranging from industrial property to swim schools.

An ASX dividend aristocrat?

This diversified investment portfolio has given Soul Patts the unique distinction of being able to fund annual dividend increases every single year since the year 2000. That’s throughout both the global financial crisis of 2007-2009, as well as the COVID pandemic.

This is an ASX dividend record unmatched on the ASX 200 or, indeed, on the entire ASX. It’s the closest thing the ASX has to a United States-style ‘dividend aristocrat’, which is a US share that has increased its dividends every year for 25 years.

Back in December last year, Soul Patts announced during its annual general meeting that its total shareholder return (share price gains and dividends) came to an average of 12.5% per annum over the 20 years to 30 November 2022.

That was a good 3.4% per annum above what the ASX All Ordinaries Accumulation Index had achieved over the same period.

So, in conclusion, this is an ASX 200 dividend stock I will never own enough of. I can’t wait to add to my position in 2023. If there’s a compelling price point, I’ll be loading the boat with this top-notch company.

The post 20+ years of growing dividends. Why I plan to buy more of this ASX 200 stock in 2023 appeared first on The Motley Fool Australia.

You beat inflation buying stocks that pay the biggest dividends right? Sorry, you could be falling into a ‘dividend trap’…

Mammoth dividend yields may look good on the surface… But just because a company is writing big cheques now, doesn’t mean it’ll always be the case. Right now, ‘dividend traps’ are ready to catch unwary investors as they race to income stocks to fight inflation.

This FREE report reveals 3 stocks not only boasting sustainable dividends but that also have strong potential for massive long term returns…

Yes, Claim my FREE copy!
*Returns as of February 1 2023

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Motley Fool contributor Sebastian Bowen has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Tpg Telecom. 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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Invest like Warren Buffett with these ASX shares

a smiling picture of legendary US investment guru Warren Buffett.

a smiling picture of legendary US investment guru Warren Buffett.

One of the world’s most famous investors is Warren Buffett.

Over several decades, through his Berkshire Hathaway business, the Oracle of Omaha has delivered stunning returns for investors.

The good news is that Buffett has achieved these feats without any fancy high frequency trading strategy. Instead, he has made long term investments in high quality companies and let compounding work its magic.

The even better news is that there’s nothing to stop you from following Buffett’s investment style to grow your own wealth.

But which ASX shares could be Buffett-style investments right now? Two that tick a lot of boxes are listed below. Here’s what you need to know about them:

Transurban Group (ASX: TCL)

One quality that Buffett looks for when making investments is a competitive advantage or moat. This is something that this toll road operator has with its portfolio of key assets across Australia and North America. If you want to drive across Melbourne and Sydney quickly, you’re probably going to have to use its roads. In fact, the company estimates that customers using Transurban roads (compared to alternative routes) saved a total of 323,000 hours of travel time each workday in FY 2022.

Citi is a fan of Transurban and has a buy rating and $15.70 price target on its shares. Its analysts are also forecasting consistent dividend growth through to FY 2025, which is likely to go down well with an investor like Warren Buffett.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another (simple) way to invest like Buffett is to buy the VanEck Vectors Morningstar Wide Moat ETF. This is a Warren Buffett-inspired ETF that gives investors access to a diversified portfolio of companies with sustainable competitive advantages and fair valuations. At present, its holdings include businesses with strong moats such as Amazon, Intel, Microsoft, and Walt Disney.

Over the last 10 years, the index that the fund tracks has beaten the market with a total average return of 18.11% per annum. This would have turned a $10,000 investment into over $50,000.

The post Invest like Warren Buffett with these ASX shares appeared first on The Motley Fool Australia.

So, you’ve decided to get started in the stock market?

When you’re first getting into the stock market, the sheer number of stocks you can choose from may seem overwhelming.

But it doesn’t have to be that way…

Which is why we handpicked our ‘Starter Stocks’ to help make it as easy as possible for you to begin building your portfolio.

Do you have these cornerstone stocks in your portfolio?

See The 5 Stocks
*Returns as of February 1 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 positions in and has recommended Berkshire Hathaway. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway, short January 2023 $200 puts on Berkshire Hathaway, and short January 2023 $265 calls on Berkshire Hathaway. The Motley Fool Australia has recommended Berkshire Hathaway and VanEck Morningstar Wide Moat 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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