Stock Pick

  • 2 top ETFs for high growth

    Exchange Traded Fund (ETF)

    Some exchange-traded funds (ETFs) offer high growth for investors despite the coronavirus.

    I like how cheap some ETFs out there are such as BetaShares Australia 200 ETF (ASX: A200) and Vanguard U.S. Total Market Shares Index ETF (ASX: VTS).

    The ASX does have some impressive growth companies, but they’re not the largest positions within the ASX 200. The biggest businesses in Australia are mature businesses in slow growth industries.

    I think these two ETFs have high growth, with an Asian flavour:

    Vanguard FTSE Asia ex Japan Shares Index ETF (ASX: VAE)

    The Asian region is handling the coronavirus much better than some western nations right now. South Korea, Singapore and Vietnam have all done impressive things with their own tactics. China is now in a much stronger position than the US to push on from this pandemic.

    Vanguard is one of the best ETF providers in the world and this ETF has a management fee of just 0.4% per annum.

    Due to Asia’s growing prominence, stronger savings rate and middle class wealth effect, I like the idea of getting exposure to Asian shares.

    I think this ETF has high growth because it’s invested in businesses like Alibaba, Tencent, Taiwan Semiconductor Manufacturing, Samsung and Ping An Insurance. These businesses could easily be described as the equal of their western counterparts. But the ETF is actually invested in over 1,250 businesses, not just those few names, which is great diversification.

    According to Vanguard, the ETF has an earnings growth rate of 11.6%, a return on equity (ROE) of 14.76% and a price/earnings ratio of just 13.3x. I believe these are attractive statistics and show the ETF has high growth potential.  

    BetaShares Asia Technology Tigers ETF (ASX: ASIA)

    Perhaps you don’t want to be invested in 1,250 Asian shares. Maybe you just want exposure to 50 of the biggest and best Asian technology and online retail shares. Well that’s exactly what this ETF offers.

    If you just looked at the holdings, you’d see similar names. But this ETF has larger positions of each tech name. Alibaba is 9.7% of the portfolio, Tencent is 9.7%, Taiwan Semiconductor Manufacturing is 9.2% and Samsung is 9%.

    This high growth ETF has returned an average of 14.6% per annum after fees since inception in September 2018.

    Around two thirds of the ETF is invested in three sectors: ‘semiconductors’, ‘interactive media & services’ and ‘internet & direct marketing retail’. These are attractive growth areas.

    BetaShares Asia Technology Tigers ETF’s management fee is a bit higher at 0.67%, but it’s still a lot cheaper than typical active fund managers.

    Foolish takeaway

    Asian high growth ETFs have higher risks (particularly relating to China), but they could generate higher returns. If you just want a tech-focused ETF then the BetaShares offering could be a great pick. But choosing a broad investment exposure to the whole of Asia and every industry is also a very compelling prospect.

    But Asia isn’t the only place to have high growth ETFs and great businesses.

    One “All In” ASX Buy Alert, that could be one of our greatest discoveries

    Investing expert Scott Phillips has just named what he believes is the #1 Top “Buy Alert” after stumbling upon a little-owned opportunity he believes could be one of the greatest discoveries of his 25 years as a professional investor.

    This under-the-radar ASX recommendation is virtually unknown among individual investors, and no wonder.

    What it offers is an utterly unique strategy to position yourself to potentially profit alongside some of the world’s biggest and most powerful tech companies.

    Potential returns of 1X, 2X and even 3X are all in play. Best of all, you could hold onto this little-known equity for DECADES to come.

    Simply click here to see how you can find out the name of this ‘all in’ buy alert… before the next stock market rally.

    Find out the name of Scott’s ‘All in’ Buy Alert

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    Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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 five-star ASX 200 shares to buy right now

    asx shares to buy

    If you’re looking for new additions to your portfolio, then I think the three ASX 200 shares listed below would be great options.

    I believe they are amongst the best on offer on the Australian share market and could generate strong returns for investors over the next decade.

    Here’s why I rate them as five-star stocks:

    a2 Milk Company Ltd (ASX: A2M)

    I continue to rate this infant formula and fresh milk company as a five-star stock. I’m a big fan of the company due to its strong and unique brand, its wide margins, and positive long term growth potential. Overall, I believe these have put a2 Milk Company in a position to continue growing its earnings at a solid rate for many years to come. In FY 2020 the company is expecting to deliver another stellar result. The top end of its recently upgraded guidance implies year on year revenue growth of 34.1% and EBITDA growth of 35.4%.

    CSL Limited (ASX: CSL)

    Another five-star stock to consider is CSL. I think the biotherapeutics giant is arguably the highest quality company that Australia has ever produced and could be a great long term investment. This is thanks to CSL’s world class operations, leading therapies, growing plasma collection network, and its potentially lucrative research and development pipeline. I believe these leave the company well-placed to continue generating strong returns for investors over the next decade and beyond.

    Xero Limited (ASX: XRO)

    A final five star stock to consider is Xero. I think the leading cloud-based business and accounting software provider is a fantastic long term investment option. This is thanks partly to the quality and stickiness of its product, which has consistently led to Xero’s retention rate remaining sky high. I feel this gives it a great foundation to build on. In addition to this, the company is still only scratching at the surface of its massive market opportunity. I expect further market share gains over the next decade to drive strong earnings growth and returns for investors.

    And below is a fourth option that this leading analyst believes is a five-star option. So much so, he is urging investors go all in…

    One “All In” ASX Buy Alert, that could be one of our greatest discoveries

    Investing expert Scott Phillips has just named what he believes is the #1 Top “Buy Alert” after stumbling upon a little-owned opportunity he believes could be one of the greatest discoveries of his 25 years as a professional investor.

    This under-the-radar ASX recommendation is virtually unknown among individual investors, and no wonder.

    What it offers is an utterly unique strategy to position yourself to potentially profit alongside some of the world’s biggest and most powerful tech companies.

    Potential returns of 1X, 2X and even 3X are all in play. Best of all, you could hold onto this little-known equity for DECADES to come.

    Simply click here to see how you can find out the name of this ‘all in’ buy alert… before the next stock market rally.

    Find out the name of Scott’s ‘All in’ Buy Alert

    More reading

    James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. and Xero. The Motley Fool Australia owns shares of A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post 3 five-star ASX 200 shares to buy right now appeared first on Motley Fool Australia.

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  • 5 things to watch on the ASX 200 on Thursday

    NEW YORK - APRIL 29: Traders work on the floor of the New York Stock Exchange moments before the Federal Reserve announcement on interest rates April 29, 2009 in New York City. The Fed left the federal funds rate unchanged at at 0% to 0.25%. (Photo by Mario Tama/Getty Images)

    On Wednesday the S&P/ASX 200 Index (ASX: XJO) bounced back from a poor start to keep its winning streak alive. The benchmark index climbed 0.25% to 5,573 points.

    Will the market be able to build on this on Thursday? Here are five things to watch:

    ASX 200 expected to rise again

    It looks set to be another positive day of trade for the ASX 200 index. According to the latest SPI futures, the benchmark index is expected to open the day 43 points or 0.8% higher. This follows a strong night on Wall Street which saw the Dow Jones jump 1.5%, the S&P 500 rise 1.7%, and the Nasdaq race 2.1% higher.

    Tech shares could rise.

    Australian tech shares such as Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX) could be on the rise today after their U.S. counterparts stormed higher overnight. Tech giants Facebook and Amazon climbed to record highs and helped drive the technology-focused Nasdaq index 2.1% higher.

    Aristocrat Leisure half year update.

    The Aristocrat Leisure Limited (ASX: ALL) share price will be on watch when it releases its half year results. According to a note out of Goldman Sachs, it expects the gaming technology company to post a 6% increase in revenue to $2.2 billion and a 2% decline in NPATA to $416 million. The broker believes the company’s Digital segment will offset revenue weakness in the Land based segment. It has forecast Digital revenue growth of 30% to $1,067 million.

    Oil prices jump.

    It could be a positive day for energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL). This follows a strong night of trade for oil prices thanks to a surprise drop in U.S. stockpiles. According to Bloomberg, the WTI crude oil price is up 4.9% to US$33.53 a barrel and the Brent crude oil price has risen 3.3% to US$35.78 a barrel.

    Gold price pushes higher.

    Gold miners such as Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) could push higher today after a solid night of trade for the gold price. According to CNBC, the spot gold price rose 0.3% to US$1,750.50 an ounce. The precious metal was given a boost by stimulus hopes and vaccine doubts.

    5 cheap stocks that could be the biggest winners of the stock market crash

    Investing expert Scott Phillips has just named what he believes are the 5 cheapest and best stocks to buy right now.

    Courtesy of the crashing stock market, these 5 companies are suddenly trading at significant discounts to their recent highs… creating what could be incredible opportunities for bargain-hungry investors.

    Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares to buy now… before the next stock market rally.

    See the 5 stocks

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Altium and Appen Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post 5 things to watch on the ASX 200 on Thursday appeared first on Motley Fool Australia.

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