Stock Pick

  • Looking to diversify your portfolio? Try these ASX ETFs

    businessman holding world globe in one hand, international investment, asx shares

    If you’re looking for a way to diversify your portfolio to offer some protection from market shocks and optimise your returns, then I think the two exchange traded funds (ETFs) listed below could be worth considering.

    As well as giving investors exposure to a wide range of shares in different markets and industries, I believe these ETFs also have the potential to provide strong returns for investors in the future. They are as follows:

    BetaShares NASDAQ 100 ETF (ASX: NDQ)

    If you were to buy only one ETF, I would make it the BetaShares NASDAQ 100 ETF. This is because this ETF gives investors access to the 100 shares that are trading on the famous NASDAQ 100 index. These include countless household names such as Amazon, Facebook, Microsoft, and Netflix.

    One area of the market which is not represented on the index is the financial sector. This could make it a good option for investors that have a high weighting towards shares such as Australia and New Zealand Banking GrpLtd (ASX: ANZ) and the big four banks.

    iShares Global Healthcare ETF (ASX: IXJ)

    Another ETF to consider buying is the iShares Global Healthcare ETF. If your portfolio is lacking exposure to the healthcare sector, then I think this ETF would be a good way to do it. As well as giving investors access to Australian healthcare shares such as CSL Ltd (ASX: CSL), Ramsay Health Care Limited (ASX: RHC), and Sonic Healthcare Limited (ASX: SHL), it provides exposure to many global healthcare giants.

    This includes the likes of Johnson & Johnson, Novartis, Pfizer, Roche, and Sanofi. And given the positive outlook for the healthcare sector over the next couple of decades due to ageing populations and increased chronic disease, I believe it could provide strong returns for investors over the long term.

    And here are more top shares which could provide strong long term returns…

    5 ASX stocks under $5

    One trick to potentially generating life-changing wealth from the stock market is to buy early-stage growth companies when their share prices still look dirt cheap.

    Motley Fool’s resident tech stock expert Dr. Anirban Mahanti has identified 5 stocks he thinks are screaming buys. And you can buy them now for less than $5 a share!

    Learn More

    *Extreme Opportunities returns as of June 5th 2020

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    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. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Ramsay Health Care Limited and Sonic Healthcare Limited. 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 Looking to diversify your portfolio? Try these ASX ETFs appeared first on Motley Fool Australia.

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  • Apple’s Diversity Chief Leaves as Companies Vow to Tackle Racism

    Apple's Diversity Chief Leaves as Companies Vow to Tackle Racism(Bloomberg) — Apple Inc.’s head of diversity and inclusion Christie Smith is leaving the iPhone company, according to people familiar with the matter.Last week, Chief Executive Officer Tim Cook said Apple is launching a $100 million Racial Equity and Justice Initiative, adding to the company’s response to the police killing of George Floyd last month. Earlier this month, Cook wrote in a letter to employees and customers that society needs to do more to push equality, particularly for Black people.“To create change, we have to reexamine our own views and actions in light of a pain that is deeply felt but too often ignored. Issues of human dignity will not abide standing on the sidelines,” Cook wrote in the letter.Smith joined Apple in 2017 after 16 years at consultancy Deloitte. Unlike her predecessor, who reported directly to the CEO, Smith reported to Apple’s Senior Vice President of Retail and People Deirdre O’Brien.“Inclusion and diversity are core Apple values and we deeply believe the most diverse teams are the most innovative teams,” Apple said in an emailed statement confirming the news. “Christie Smith will be leaving Apple to spend more time with her family and we wish her well. Our Inclusion and Diversity team continues to report directly to Deirdre O’Brien on the Executive Team.”Apple said the move was planned two months ago, though a person familiar with the matter said Smith’s last day was Tuesday.Read more: A Black Money Manager Speaks Out on Workplace Race ConversationsThe Cupertino, California-based company has made little progress in increasing the diversity among its overall workforce since it began releasing data in 2014. According to its 2018 diversity report, 67% of global employees were male, down from 70% in 2014. In the U.S., 6% of tech employees were Black in 2018, unchanged from 2014.Apple hasn’t disclosed its most recent diversity numbers yet, but the company has made some headway in recent years increasing diversity among new hires. More than half of new hires in the U.S. in 2018 were Black, Hispanic or from other historically underrepresented groups in tech. Women accounted for 38% of Apple’s workforce under the age of 30, compared to 33% of the its overall staff.(Updates with Apple diversity numbers from seventh paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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  • Here’s where this ASX fund manager sees value for investors

    man holding sign stating create value, value shares, asx 200 shares, warren buffett

    The Spheria Emerging Companies Ltd (ASX: SEC) share price is edging higher on Wednesday after the release of its May investment update.

    What happened in May?

    During the month of May, Spheria Emerging Companies recorded a solid return but continued to underperform its benchmark.

    The fund manager reported a 7.2% gain in May, compared to a 10.6% gain by the S&P/ASX Small Ordinaries Accumulation Index. This means its return over the last 12 months is now a negative 12.7%, whereas the index is down 2.9%.

    What is Spheria invested in?

    A number of companies contributed to its 7.2% gain last month. Positive performers in the fund included retailer Beacon Lighting Group Ltd (ASX: BLX), appliance manufacturer Breville Group Ltd (ASX: BRG), fashion retailer City Chic Collective Ltd (ASX: CCX), and telco Superloop Ltd (ASX: SLC).

    Management commented: “These stocks continued their recovery over May post the selloff in March. Superloop is benefitting from increased data demand and a much greater focus on cash flow generation with a moderating capex profile.”

    The fund manager also notes that Breville “appears to have continued to trade well through the shutdown period as consumers purchase small home appliances.” It took part in its $101 million capital raising during the month.

    That wasn’t the only capital raising it took part in. It also added to its position in Blackmores Limited (ASX: BKL) by participating in its $117 million capital raising. This could be an indication that it remains optimistic on its prospects.

    The detractors.

    The biggest factor in its underperformance in May was not necessarily what it owned, but what it didn’t own.

    Spheria notes that there were a few names in the gold space which it doesn’t own, including Saracen Mineral Holdings Limited (ASX: SAR) and Regis Resources Limited (ASX: RRL), which contributed strongly to the S&P/ASX Small Ordinaries Accumulation Index’s gain.

    Though, one share in the portfolio that did weigh on its performance was Village Roadshow Ltd (ASX: VRL). It declined 10% during May on the back of a revised takeover offer from BGH Capital.

    Where will the future gains come from?

    Spheria appears optimistic on the future and notes that “the prospects for a reasonable economic recovery are real.”

    In suspects that this could ultimately lead to a rotation into cyclical sectors which offer value for money.

    “Whilst high growth concept stocks particularly in the fintech space have led the recovery so far, there remains the prospect of a strong rotation into cyclical sectors which offer far greater relative valuation appeal. Sectors which include building materials, consumer discretionary and media,” the fund manager explained.

    It concluded: “The re-emergence of private equity and corporates on the acquisition path is also likely. With our focus on strongly cash generative businesses with modest gearing we should be the beneficiary of some of this activity looking forward.”

    And here are more quality shares which fund managers should be buying…

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    Learn More

    *Extreme Opportunities returns as of June 5th 2020

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    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 SUPERLOOP FPO. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. 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 Here’s where this ASX fund manager sees value for investors appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/2Y9hyz9

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