Day: March 11, 2023

3 ETFs for investors to buy and hold for a decade

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 your hard-earned money with a long term view, then exchange traded funds (ETFs) could be the way to do it.

But which ETFs might be top buy and hold options? Listed below are three quality ETFs that could be worth considering as long term investments:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The first ETF option for investors to consider is the BetaShares NASDAQ 100 ETF.

This ETF gives investors access to the 100 largest non-financial shares on the famous NASDAQ index. These are many of the largest companies in the world and household names such as Amazon, Alphabet, Apple, Meta Platforms, Microsoft, and Tesla.

Since inception in May 2015, this ETF has generated an average annual return of 16.08%.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another ETF that could be a quality buy and hold option is the VanEck Vectors Morningstar Wide Moat ETF.

If you want to invest like Warren Buffett, then this ETF would be an easy way to replicate his strategy. That’s because it holds companies with fair valuations and moats. These are two qualities Buffett looks for when buying shares.

The ETF currently contains approximately 50 shares, including the likes of Alphabet, Boeing, Kellogg Co, Meta Platforms, and Walt Disney.

Over the last 10 years, the index the ETF tracks has returned 18.64% per annum.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF that could be a great buy and hold option is the Vanguard MSCI Index International Shares ETF.

This popular ETF gives investors access to approximately 1,500 of the world’s largest listed companies.

This provides significant diversity and allows investors to take part in the long term growth potential of international economies. Among its holdings are the likes of Amazon, Apple, Nestle, Procter & Gamble, Tesla, and Visa.

Over the last five years, it has generated total returns of 10% per annum.

The post 3 ETFs for investors to buy and hold for a decade 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 March 1 2023

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

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 BetaShares Asia Technology Tigers ETF, VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF, and VanEck Vectors 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.

from The Motley Fool Australia https://ift.tt/foAn8ec

Morgans names the best ASX 200 growth shares to buy in March

A cool young man walking in a laneway holding a takeaway coffee in one hand and his phone in the other reacts with surprise as he reads the latest news on his mobile phone

A cool young man walking in a laneway holding a takeaway coffee in one hand and his phone in the other reacts with surprise as he reads the latest news on his mobile phone

If you’re looking for ASX 200 growth shares to buy, then look no further!

The team at Morgans has named a number of growth shares on its best ideas list for March.

Three growth shares that have been given the thumbs up are listed below. Here’s why it is bullish on them:

Treasury Wine Estates Ltd (ASX: TWE)

Morgans is a fan of this wine giant and believes it is destined to deliver strong earnings growth over the coming years. This follows its successful internal restructure and solid demand for luxury wine.

The broker has an add rating and $15.05 price target in its shares. It commented:

TWE owns much loved iconic wine brands, the jewel in the crown being Penfolds. We rate its management team highly. The foundations are now in place for TWE to deliver strong earnings growth from the 2H22 over the next few years. Trading at a material discount to our valuation and other luxury brand owners, TWE is a key pick for us.

Webjet Limited (ASX: WEB)

This online travel agent could be an ASX 200 growth share to buy according to Morgans. It has an add rating and $7.20 price target on its shares.

The broker believes Webjet’s shares are attractively priced based on its positive long term outlook. It said:

Based on our forecasts, WEB is trading on an FY24 recovery year PE which is at a discount to its five-year average PE (pre-COVID). Its WebBeds (B2B) business is highly leveraged to the northern hemisphere summer holiday season which is forecast to be strong. Webjet OTA is leveraged to ANZ domestic and international travel. Management also wasted a crisis and cost reduction initiatives will reduce its cost base by 20% across the group once the business returns to scale.

Xero Limited (ASX: XRO)

Finally, this cloud accounting platform provider could also be an ASX 200 growth share to buy this month. Morgans believes the company’s shares are great value and that this is a rare buying opportunity for investors.

It has an add rating and $97.00 price target. The broker commented:

XRO is a high quality cash generative business with impressive customer advocacy and duration. Over the last 12 months rising interest rates and competition have made things harder for Xero. However, we see the current shortterm weakness as a rare opportunity to buy a high quality global growth company at a discount to the life time value of its current customer base.

The post Morgans names the best ASX 200 growth shares to buy in March 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 March 1 2023

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

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 Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/VfwIhdG

Start your engines: Fund backs 2 ASX shares to finish line

waving the chequered flagwaving the chequered flag

One eye-popping trend seen during the COVID-19 pandemic was that private vehicle ownership made a huge comeback.

Both cost and environmental concerns had somewhat stifled car sales for years before the pandemic hit. All of a sudden, health concerns around riding in confined spaces with strangers prompted a shift back to private transport.

Combined with supply constraints, the demand was so hot that, at one stage, used cars were costing as much as new cars.

As the world shifted to the post-COVID era, vehicle sales were expected to normalise.

But a memo to clients from the analysts at Celeste Funds Management suggests the party for the motor industry could go into overtime.

Strong results season for both these car retailers

According to the Celeste note, the team is bullish on dealership businesses Eagers Automotive Ltd (ASX: APE) and Autosports Group Ltd (ASX: ASG).

That’s despite both stocks already having risen handsomely in the past month.

“Listed car dealers Eagers Automotive and Autosports Group rose 19.9% & 0.5% respectively off the back of strong earnings results in February.”

Eagers, especially, has had a fabulous time. The stock price has rocketed more than 34% over the past month.

“Eagers delivered profit before tax (PBT) of $405.2 million, in-line with expectations and set a FY23 revenue target of $9.5 to $10 billion, underpinned by FY22 acquisitions, BYD Auto sales, and organic growth initiatives.”

Autosports Group didn’t do too badly either. 

“Autosports delivered PBT of $52 million, 9.9% ahead of expectations. No quantified guidance was provided, but the company noted continued momentum in 2h23.”

The Celeste team is backing both stocks for further gains.

“We believe both companies will continue to benefit from an elevated orderbook that should provide high earnings visibility over the next 12 to 24 months,” read the memo.

“We remain positively disposed to both stocks.”

Last month, Morgans analyst Andrew Tang also expressed his bullishness for Eagers.

“The order book has over a two-year run off period (yet to commence) providing solid near-term visibility,” he said.

“Cycle aside, Eagers is executing on building a sustainably higher earnings base via further consolidation, ongoing efficiency, new OEM strategies and new sales channels.”

The post Start your engines: Fund backs 2 ASX shares to finish line appeared first on The Motley Fool Australia.

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

Streaming TV Shocker: One stock we think could be set to profit as people ditch free-to-air for streaming TV (Hint It’s not Netflix, Disney+, or even Amazon Prime.)

Learn more about our Tripledown report
*Returns as of March 1 2023

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Tony Yoo 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.

from The Motley Fool Australia https://ift.tt/eW1RFKm

‘A rocky road ahead’: Expert names 2 ASX 200 shares to thrive in a tough 2023

two women celebrating good news on phonetwo women celebrating good news on phone

Reporting season really showed how there is “a rocky road ahead” for the Australian economy and ASX shares.

That’s according to Datt Capital chief investment officer Emanuel Datt, who reckons whether the country technically descends into recession is largely irrelevant.

“The message we take from the current reporting season is one of unevenness in opportunities and obstacles to performance going forward,” he said.

“Labour shortages, inflation and an increasing cost of capital are three of the most visible takeaways.”

Labour shortages strike some industries worse than others

But not all stocks are built the same.

It’s a simple reality that some sectors are better placed to withstand tougher economic conditions than others.

“Capital intensive industries such as mining have an advantage in terms of being able to support higher salaries and accordingly appear to be attracting staff from other sectors, albeit at a higher cost than usual,” said Datt.

“Labour intensive industries such as logistics, construction and contracting, continue to struggle with high labour costs and lower than typical productivity.”

A shortage of workers is still hurting service industries and smaller companies that rely on a casual workforce.

“Though with international student numbers and immigration rising, it is providing relief to these sectors after a problematic three years.”

Which stocks can fight inflation?

Reporting season also showed inflation in supply costs is striking ASX-listed companies hard.

“On the capital front, significantly increased interest rates, along with further projected rises, are likely to continue to adversely affect the cost of business funding.”

Considering all these headwinds, Datt noted that two S&P/ASX 200 Index (ASX: XJO) businesses exceeded earnings guidance during the February reporting season: Woolworths Group Ltd (ASX: WOW) and QBE Insurance Group Ltd (ASX: QBE).

Both those companies possess the ability to pass on increased costs to their customers, thereby maintaining their margins.

“Limited ability to pass on costs due to shrinking discretionary spending power is a further squeeze from another direction for many businesses particularly in the consumer sector.”

The turbulent environment that investors face in 2023 calls for a more active management of stock portfolios, said Datt.

“In our view, the domestic investment scenario is less likely than ever to favour a passive approach in the near to medium term.”

The post ‘A rocky road ahead’: Expert names 2 ASX 200 shares to thrive in a tough 2023 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 March 1 2023

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Tony Yoo 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.

from The Motley Fool Australia https://ift.tt/tFdhE5I