Plenty of Aussies turn to the ASX to build wealth, but the vast majority invest quite differently to the richest among them. Though there is one similarity between the portfolios of millionaires and those of the average investor – the Vanguard Australian Shares Index ETF (ASX: VAS).

New data from Australian investing platform Selfwealth Ltd (ASX: SWF) provides insight into 1,200 portfolios worth more than $1 million, and the popular exchange-traded fund (ETF) sits in pride of place.

Units in the Vanguard Australian Shares Index ETF closed Friday’s session trading at $90.45.

So, what is it about the VAS ETF that might have caught the eye of Australian millionaires? Let’s take a look.

Millionaires snap up Vanguard Australian Shares Index ETF (VAS)

Interestingly, there’s generally a clear difference between the average portfolio and those worth more than $1 million. Notably, millionaire investors appear more likely to own individual stocks, with one clear exception.

The Vanguard Australian Shares Index ETF is the second most popular investment among millionaire shareholdings on the platform by volume and the most popular among the entire cohort.

And there are plenty of potential reasons for its popularity.

The ETF is the only one of its kind to track the S&P/ASX 300 Index (ASX: XKO) – thereby offering plenty of diversity. It also takes a small 0.1% annual management fee.

Interestingly, VAS is the only ETF in the 10 most popular holdings of Selfwealth’s $1 million-plus portfolios. The vast majority are blue-chip stocks, with Fortescue Metals Group Limited (ASX: FMG) taking out the top spot.

Further down the list sits the Vanguard MSCI Index International Shares ETF (ASX: VGS) – the 12th most popular holding among millionaire investors.

Meanwhile, Betashares Australian Equities Strong Bear Hedge Fund (ASX: BBOZ) and the Betashares Nasdaq 100 ETF (ASX: NDQ) are the 15th and 20th most popular investments, respectively.

Comparatively, the top three most popular investments among Selfwealth’s entire cohort are all ETFs – the VAS ETF, the Vanguard Diversified High Growth Index (ASX: VDHG), and the VGS ETF.

The post Millionaire magnet: Why are wealthy investors pouncing on the Vanguard Australian Shares Index ETF (VAS)? appeared first on The Motley Fool Australia.

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• The top 10 ASX shares held by millionaires
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• My 5-step plan to achieving $500 in monthly passive income
• If you’d invested $5,000 in the Vanguard Australian Shares Index ETF (VAS) after the COVID crash, here’s much you’d have now

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 BetaShares Nasdaq 100 ETF and Vanguard Msci Index International Shares ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Vanguard Msci Index International Shares 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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If you’re looking for an easy way to invest your hard-earned money next week, then exchange traded funds (ETFs) could be the way to do it.

But which ETFs might be top options right now?

Depending on your investment objective, one of the two ASX ETFs below could be top options to buy next week:

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

If you’re interested in buy and holding investing, then the VanEck Vectors Morningstar Wide Moat ETF could be the one for you.

This ETF has been a great place to invest over the last decade. Even after accounting for recent volatility, the index it tracks has generated an average annual return of 19.1% since 2013.

This strong performance has been underpinned by its focus on fairly priced US companies with sustainable competitive advantages. These are qualities that Warren Buffett looks for when he invests. And given his track record, it’s hard to dispute that this investment strategy works.

The fund changes its constituents periodically and removes stocks when they become overvalued. But there are usually approximately 50 shares in the fund at any given time. At present, this includes Alphabet, Amazon, Meta Platforms, Microsoft, and Walt Disney.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Investors that are more interested in generating income from their investments might want to consider the Vanguard Australian Shares High Yield ETF.

That’s because this ETF provides investors with exposure to a diverse group of ASX listed shares that have higher forecast dividends relative to the rest of the market.

At present, the Vanguard Australian Shares High Yield ETF is trading with an estimated forward dividend yield of 5.3%. This would mean that a $10,000 investment provides $530 of passive income.

There are many dividend-paying blue chip ASX shares held by the ETF. This includes BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Telstra Corporation Ltd (ASX: TLS), and Woodside Energy Group Ltd (ASX: WDS).

The post 2 high-quality ASX ETFs for income and buy and hold investors appeared first on The Motley Fool Australia.

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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 positions in and has recommended Telstra Group. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF and Vanguard Australian Shares High Yield 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 iron ore price has tumbled from its March peak this year but is still trading higher than November lows.

ASX 200 shares impacted by the iron ore price include Fortescue Metals Group Ltd (ASX: FMG), BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO).

Let’s take a look at what could be weighing on the iron ore price so far in 2023.

What’s going on?

Iron ore has been on a roller coaster in the last 12 months. The commodity hit a yearly high of US$147 a tonne on 8 June last year, trading economics data shows. From this high, iron ore slumped nearly 45% to US$81.50 on 1 November.

Following the November lows, iron ore made a major comeback, rising 65% to US$134.50 on 15 March 2023.

However, iron ore then tumbled below US$99.50 on 5 May before bouncing back to US$107. However, iron ore has again retreated nearly 4% in a day and is priced at US$103 a tonne at the time of writing.

Iron ore is the major ingredient of steel. And China is the world’s largest importer of steel. This means data and activity out of China can weigh on the iron ore price.

ANZ commodity strategists Daniel Hynes and Soni Kumari are watching China’s steel demand closely. In a research note on Thursday, they noted iron ore has “been under pressure” amid “weak demand from China’s steel industry”. In a research report, they added:

Initial hopes of strong demand have evaporated as the real estate market chips away at a mountain of debt.

China’s steel industry PMI hit 45 in April, its lowest level since December 2022.

Exports are now rising amid the softness in the domestic market. Without additional fiscal stimulus, growth in steel demand is likely to remain weak.

The strategists see iron ore prices “finding a floor” near US$95 per tonne.

A Hong Kong trader, quoted by the Financial Times this week, highlighted the market was expecting China’s steel demand to lift more than it has this year. He said:

The demand for steel has collapsed since the start of April.

The market was expecting a 10 per cent increase in steel demand for infrastructure [this year], but our most optimistic estimate is 2 per cent.

Share price snapshot

The BHP share price closed on Friday at $43.48, an 8.6% leap over the past year. Fortescue shares closed at $20.10, up 5.7% in 12 months, while Rio Tinto shares are 107.96 apiece, 43% higher than this time a year ago.

The post Could the iron ore price slide below $100 US dollars in 2023? appeared first on The Motley Fool Australia.

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More reading

• How to invest $10,000 in ASX dividend shares in May
• Why are ASX 200 mining stocks having such a shocking end to the week?
• What’s the 5-year forecast for commodity prices and ASX 200 mining shares?
• This ASX small-cap lithium share is leaping 13% on a deal with Rio Tinto
• Why are BHP shares sliding today?

Motley Fool contributor Monica O’Shea 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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Last week, banking giant Westpac Banking Corp (ASX: WBC) released its half-year results.

Investors didn’t respond overly positively to the release, with Westpac shares losing almost 3% of their value over the week.

But one leading broker remains positive. Well, just about!

According to a note out of Morgans, its analysts have been a little shaken by the result but have seen enough to retain their add rating with a new lowered price target of $24.22.

Based on the current Westpac share price of $21.09, this implies potential upside of 15% for investors over the next 12 months.

In addition, the broker is expecting a $1.49 per share fully franked dividend in FY 2023 and then a $1.52 per share fully franked divided in FY 2024. This boosts the total potential return to approximately 22% over the next 12 months.

What did the broker say about Westpac shares?

While the broker was pleased with the bank’s earnings, it was disappointed with a couple of items. It explains:

WBC delivered solid 1H23 earnings growth, a lift in ROE, a step-up in DPS, and finished the period with a strong capital and liquidity position. The NIM leverage and stepping away from the FY24 cost target were the disappointments.

Nevertheless, Morgans sees enough value in Westpac shares to overlook this. It said:

Potential 12 month TSR at current prices is c.18% [now 22%] so still justifies an ADD. However, our conviction has waned given some of the potential upside to ROE that we had been targeting has either fallen away (eg. cost target) or been proven (eg. CET1 ratio increase). Positives are the relatively low risk asset and funding mix and undemanding valuation. Concerns are the ability to continue to deliver transformation and grow its loan book at value accretive rates.

The post Broker warns that ‘our conviction has waned’ on Westpac shares appeared first on The Motley Fool Australia.

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More reading

• How to invest $10,000 in ASX dividend shares in May
• Bank of Queensland is offering the highest savings interest rate of any ASX bank. What might this mean for shareholders?
• Turning ASX shares into a $40,000 annual passive income generator
• It’s still rare to find a term deposit paying over 5%. Why not buy ASX dividend shares instead?
• Snapped up $5,000 worth of Westpac shares on the June dip? Here’s the passive income you’re earning now

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Westpac Banking 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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