The great thing about exchange traded funds (ETFs), is that investors can use them for different strategies.

Whether you want income, growth, or defensive options, there’s something out there for everyone.

On this occasion, we’re going to look at a couple of ETFs that could be top options for growth investors. Here’s what you need to know about them:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF for growth investors to look at next week is the BetaShares Asia Technology Tigers ETF.

This popular ETF gives investors access to the biggest and best tech companies in the Asian market. Many of which look set to benefit greatly from China’s reopening from the pandemic.

Among the ~50 technology and ecommerce companies included in the fund are the likes of Alibaba, Baidu, JD.com, Meituan Dianping, Pinduoduo, Samsung, and Tencent Holdings. The latter is the $620 billion tech company behind the widely used WeChat super app.

Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO)

Another ETF for growth investors to consider when the market reopens is the Vanguard MSCI Australian Small Companies Index ETF.

As you might have guessed from its name, this ETF gives investors access to small cap Australian shares.

It aims to track the MSCI ASX Small Cap index, which is home to approximately 200 small companies. Vanguard notes that the sectors in which the ETF invests include industrials, materials, and consumer discretionary.

Among its holdings you will find auto parts retailer Bapcor Ltd (ASX: BAP), lithium miner Core Lithium Ltd (ASX: CXO), online furniture retailer Temple & Webster Group Ltd (ASX: TPW), and online travel agent Webjet Limited (ASX: WEB).

The post 2 exciting ETFs for ASX growth investors to buy next week appeared first on The Motley Fool Australia.

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More reading

• 3 top tech ETFs for ASX investors to buy right now
• 2 ASX stocks I’ll be buying hand over fist in 2023
• 3 fantastic ETFs for ASX investors to buy in February
• 3 scintillating ETFs for ASX investors to buy this month

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 Temple & Webster Group. The Motley Fool Australia has recommended Bapcor, Betashares Capital – Asia Technology Tigers Etf, and Temple & Webster 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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Like Warren Buffett, I’m a big fan of buy and hold investing and believe it is the best way for investors to grow their wealth thanks to the power of compounding.

In order to show how successful it can be, I like to pick out a number of popular ASX shares to see how much a single $20,000 investment 10 years ago would be worth today.

This time around I have picked out the three ASX shares that are listed below:

Macquarie Group Ltd (ASX: MQG)

Thanks to its high quality operations and robust business model, this investment bank has been a great place to invest over the last decade. Since 2013, Macquarie has outperformed the big four banks significantly with its total average return of 19.25% per annum. This would have turned a $20,000 investment 10 years ago into almost $116,000 today.

REA Group Limited (ASX: REA)

Another ASX share that has beaten the market over the last decade has been property listings company REA Group. Thanks to the shift online for property listings and the domination of its realestate.com.au website, REA has delivered stellar earnings growth and big returns. Over the last 10 years, its shares have generated an average annual return of 17.5%. This means a $20,000 investment in 2013 would now be worth just over $100,000.

ResMed Inc. (ASX: RMD)

A third ASX share that has made shareholders smile is ResMed. Thanks to its industry-leading solutions and the growing awareness and prevalence of sleep disorders, ResMed has delivered consistently strong sales and earnings growth over the last decade. This has gone down well with the market and led to its shares generating an average total return of 23% per annum. This means that an investment of $20,000 into its shares in 2013 would have grown to be worth almost $160,000 this year.

The post $20k invested in these ASX shares 10 years ago is now worth over $100k appeared first on The Motley Fool Australia.

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More reading

• Buy these ASX 200 growth shares: Goldman Sachs
• These ASX 200 dividend shares are top of Macquarie’s income portfolio
• For $1,000 in monthly passive income, buy 1,770 shares of this ASX 200 stock
• Buy these ASX dividend shares next week: experts
• 3 excellent ASX 200 shares to buy and hold for a decade: analysts

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 ResMed. The Motley Fool Australia has positions in and has recommended Macquarie Group and ResMed. The Motley Fool Australia has recommended REA 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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The current National Australia Bank Ltd (ASX: NAB) share price looks like the most compelling S&P/ASX 200 Index (ASX: XJO) bank share opportunity to me.

There is plenty of competition for the top spot including Macquarie Group Ltd (ASX: MQG), Westpac Banking Corp (ASX: WBC), Commonwealth Bank of Australia (ASX: CBA), and ANZ Group Holdings Ltd (ASX: ANZ).

Certainly, I still highly rate names like Macquarie and Westpac, but there’s an argument for NAB being the pick of the bunch.

It’s a good environment for all of the banks at the moment – lending margins have increased thanks to higher interest rates and there hasn’t been an increase in arrears yet.

After seeing National Australia Bank’s quarterly update for the three months to 31 December 2022, I think it could be a good time to look at the ASX 200 bank share.

Impressive quarterly update

The bank said that it generated cash earnings of $2.15 billion for the quarter, which represented 18.7% growth. Cash earnings before tax and credit impairment charges went up by 27%. Statutory net profit after tax (NPAT) was $2.05 billion.

NAB explained that excluding markets and treasury, revenue rose 12%, thanks to higher margins and volume growth. Expenses only grew by 4%.

The ASX 200 bank share said the credit impairment charge was $158 million, reflecting the impact of “lower house prices and business lending volume growth. Specific charges remain at ‘low levels’”.

This is one of the most interesting things to me – the ratio of 90+ days past due and gross impaired assets and acceptances decreased 4 basis points to 0.62%. In other words, the percentage of total loans that are in arrears over 90 days improved from 0.66% to 0.62%.

Considering the large ramp-up of interest rates in Australia since May, seeing the arrears at this low point is impressive, in my view. However, I wouldn’t expect it to stay that low forever. Still, with it being this low, NAB is earning high levels of profit each month with strong cash flow.

The ASX 200 bank share remains very amply capitalised. Its common equity tier 1 (CET1) ratio was 11.3% at December 2022.

Why I think the NAB share price is the best ASX 200 bank share to buy

NAB seems to be doing the right things under Ross McEwan’s leadership to deliver growth and profit while maintaining a conservative posture for the upcoming period.

According to Commsec, the NAB share price is valued at under 12 times FY23’s estimated earnings with a possible FY23 grossed-up dividend yield of 8.2%.

That compares to the CBA share price which is valued at almost 17 times FY23’s estimated earnings with a grossed-up dividend yield of 6.2%.

I do like that Macquarie is growing globally, though NAB’s focus on the domestic economy could be a bonus if the global economy cools.

If NAB’s arrears perform well then the increase in interest rates and margins could largely be a one-way boost.

The post Why I think NAB could be the best ASX 200 bank share to buy right now appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why are ASX 200 mining shares ending the week in the red?
• Here are the 3 most heavily traded ASX 200 shares on Friday
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Tristan Harrison 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 positions in and has recommended Macquarie Group. 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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One of the most important factors when it comes to choosing an exchange-traded fund (ETF) is the fees the fund charges. This is especially so with ASX index funds, which basically provide a similar service.

Fees are one of the most detrimental aspects of owning ETFs and index funds, especially over long periods of time. So minimising the fees one pays to invest in an index fund is of the utmost importance. Luckily for ASX index investors, the past week has seen something of a price war kick off.

It started off with the iShares Core S&P/ASX 200 ETF (ASX: IOZ). At the start of the week, provider BlackRock announced that its ‘Core’ series of ETFs, which include the iShares ASX 200 ETF index fund, would have their fees slashed.

The iShares ASX 200 ETF previously charged investors a management fee of 0.09% per annum. That’s $9 for every $10,000 invested per year. But this week, this fee was slashed by more than 40% to 0.05% per annum.

iShares also reduced the fees of another index fund that tracks the bond markets. The iShares Core Composite Bond ETF (ASX: IAF) previously charged investors 0.15% per annum. But it will now only ask 0.1% per annum.

ASX 200 index funds start ETF price war

Rival ETF provider BetaShares previously boasted the crown of having the cheapest ASX 200 ETF on the market with its BetaShares Australia 200 ETF (ASX: A200). Not to be outdone, it didn’t take long for BetaShares to then announce it was reducing its fees. Its flagship index fund will go from charging 0.07% to 0.04% per annum. That’s $4 per year for every $10,000 invested.

We haven’t yet heard from the ASX ‘s most popular index fund though. The Vanguard Australian Shares Index ETF (ASX: VAS) is by far the index fund of choice for ASX investors. And by a large margin too.

The Vanguard Australian Shares ETF is a little different to the funds offered by BlackRock and BetaShares. It tracks the ASX 300 Index rather than the ASX 200. This enables it to provide a little more exposure to the bottom end of the Australian share market than the others.

But this Vanguard fund currently has a management fee of 0.1% per annum. That now puts it pretty far from the edge in terms of what other ASX-based index funds are charging. There’s been no word yet as to whether Vanguard will be joining this new ETF price war. So watch this space.

The post There’s an ETF price war on the ASX right now. Here’s what you need to know appeared first on The Motley Fool Australia.

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More reading

• How I’d invest $200 in ASX 300 shares each month to target a $20,570 second income
• Banking on term deposits to retire rich? I’d buy ASX 200 dividend shares instead
• Vanguard Australian Shares Index ETF: Short-term pain for long-term gains
• How I’d generate a $30,000 retirement income from the Vanguard Australian Shares Index ETF
• Top ASX ETFs to buy in February 2023

Motley Fool contributor Sebastian Bowen has positions in Vanguard Australian Shares Index ETF. 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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