Category: Stock Market

If you have room for some new portfolio additions this week, then it could be worth considering the two ASX growth shares listed below.

Here’s what you need to know about these buy-rated shares:

Lovisa Holdings Limited (ASX: LOV)

The first ASX growth share to look at is fast-fashion jewellery retailer Lovisa.

Analysts at Morgans have tipped the company as a buy due to its strong long term growth potential. This is being underpinned by its global expansion plans, which will be overseen by its highly experienced CEO, Victor Herrero.

Commenting on its expansion opportunity, the broker said:

Lovisa’s global footprint now spans 22 countries. In our opinion, investors can expect this number to increase steadily while, at the same time, Lovisa builds out its presence in its existing markets. We do not think there is any lack of opportunity. In the US, for example, Lovisa now has 81 stores, representing 0.25 stores for every million people), compared to Australia with 158 stores, 6.15 stores for every million people.

Morgans has an add rating and $21.50 price target on its shares.

Readytech Holdings Ltd (ASX: RDY)

Another ASX growth share to look at this month is Readytech. It owns a portfolio of enterprise software businesses across several market verticals such as higher education and local government.

Goldman Sachs is very positive on the company. This is due to the company operating in market niches that are under-served by both large and small enterprise software competitors. It highlights that this has underpinned high (and growing) levels of recurring revenue and ultra low churn levels. It commented:

RDY serves defensive end markets (e.g. higher education, local government) and has high recurring revenue (>85%) which should protect the company’s earnings profile in an economic downturn. In our view, RDY will continue to grow mid-teens organically while making accretive acquisitions (such as IT Vision), with profitability underpinned by solid software metrics including low churn at ~3% and high LTV/CAC.

Goldman has a buy rating and $4.60 price target.

The post Experts name 2 ASX growth shares to buy appeared first on The Motley Fool Australia.

(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

• Experts say these ASX dividend shares are buys right now
• Experts name 2 ASX growth shares to buy with double-digit upside potential
• Experts say these ASX tech shares would be excellent buys
• Analysts name 2 stellar ASX growth shares to buy
• Own Lovisa shares? Why this broker believes the retailer could be a ‘global force’

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 Readytech Holdings Ltd. The Motley Fool Australia has recommended Lovisa Holdings Ltd and Readytech Holdings Ltd. 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/D49ORhG

The Rio Tinto Ltd (ASX: RIO) share price has fallen 29% in the past year, but what’s ahead?

Rio shares dropped 1.55% on the market on Thursday, closing at $95.30 a share. For perspective, the BHP Ltd (ASX: BHP) share price also fell 1.14% while Fortescue Metals Group (ASX: FMG) shares closed 2% lower.

So what are the Rio CEO’s thoughts on future spending?

Rio CEO defends spending

Rio Tinto presented half-year results last week, but the company’s CEO Jakob Stausholm shared more insight into the company’s future strategy today.

In a quarter two earnings call, Stausholm was questioned on Rio’s strategy of increasing capital expenditure (capex) in the future.

In response to questions from analysts about the company’s plan to increase capex, he said:

This is actually really fundamental. If we start adjusting our capex programme because we think there’s a recession in the next six months, we’ve lost. We are in for the long haul here.

If you really think about it, the best thing is to invest when you have a recession, because that’s where you can buy services cheap.

Rio reported revenue had fallen 10% to US$29,775 million in its half-year earnings. The mining giant declared a dividend of 276 cents per share.

However, Stausholm touted investing in a recession, highlighting:

We are absolutely convinced that we have the right investment profile going forward.

Obviously, sometimes things becomes a little bit more expensive when you get inflation and we need to manage that very carefully. We fundamentally want to carry out the activities that we have planned to do.

Rio highlighted it is intent on delivering its long-term strategy. In its half-year results, Rio reported its earnings before interest, tax, depreciation and amortisation (EBITDA) slumped 26% to US$15,597 million. Free cash flow also fell 30%.

Share price snapshot

The Rio share price has dived 29% in the past year and nearly 5% year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has lost nearly 6% in the past year.

Rio has a market capitalisation of more than $35 billion based on the current share price.

The post ‘We are in for the long haul’: Rio Tinto CEO defends future spending in the face of recession fears appeared first on The Motley Fool Australia.

(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

• NRW share price leaps 11% on guidance upgrade for FY22
• Which ASX 200 shares will prove to be dividend heavyweights this earnings season?
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• First mover: CBA share price rises amid interest rate changes

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.

from The Motley Fool Australia https://ift.tt/Ls69Q24

There are a lot of dividend shares for investors to choose from on the ASX 200 index. Two that have recently been rated as buys are listed below.

Here’s why analysts rate them highly right now:

Harvey Norman Holdings Limited (ASX: HVN)

Harvey Norman could be an ASX 200 dividend share to buy according to analysts at Goldman Sachs.

They like the retail giant due to its strong market position and favourable customer demographics. In respect to the latter, the broke notes that Harvey Norman “has a greater preference within the boomer generation and a higher exposure to regional Australia.” Goldman expects this to protect the company from online disruption.

Goldman currently has a buy rating and $4.50 price target on the retail giant’s shares.

As for dividends, the broker is forecasting fully franked dividends of 45.9 cents per share in FY 2022 and 36.3 cents per share in FY 2023. Based on the current Harvey Norman share price of $4.21, this will mean yields of 10.9% and 8.6%, respectively.

Wesfarmers Ltd (ASX: WES)

Another ASX 200 dividend share that could be in the buy zone is Wesfarmers. It is the conglomerate behind a range of businesses including Bunnings, Catch, Covalent Lithium, Kmart, Officeworks, and Priceline.

Analysts at Morgans are very positive on Wesfarmers and believe it has “one of the highest quality retail portfolios in Australia” with “a highly regarded management team” leading the business.

Morgans has an add rating and $58.40 price target on its shares.

As for dividends, the broker is forecasting fully franked dividends per share of $1.65 in FY 2022 and $1.81 in FY 2023. Based on the current Wesfarmers share price of $47.00, this will mean yields of 3.5% and 3.85%, respectively.

The post 2 ASX 200 dividend shares analysts rate as buys appeared first on The Motley Fool Australia.

(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

• What’s impacting the Wesfarmers share price on Thursday?
• Why is the Wesfarmers share price beating the ASX 200 today?
• Morgans name 3 of the best ASX shares to buy in August
• ‘Recession-like levels’: Why ASX retail shares could still be in for a bumpy ride
• From Cotton On to Catch: Wesfarmers’ plans to put its acquisition back on track

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 Harvey Norman Holdings Ltd. The Motley Fool Australia has positions in and has recommended Harvey Norman Holdings Ltd. and Wesfarmers Limited. 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/PuCqDYA

The Lake Resources N.L. (ASX: LKE) share price went down a slippery slope in early July and then was catapulted to post a 3% gain for the month. 

However, the ASX lithium share, Lake Resources, and its share price underperformed the S&P/ASX 200 Index (ASX: XJO), which lifted 5.73% last month.

What made the Lake Resources share price flounder and spurt in July?

The Lake Resources share price started the month at 78.5 cents and closed at 81 cents on 29 July. In between, a scathing report by short-seller J Capital pushed down the Lake Resources shares as low as 60.5 cents each on 14 July. 

J Capital peppered the company with some major allegations. These included a claim that its Kachi Project would not reach production in 2024 as planned. It also alleged the processes used at the site would cause environmental damage. 

The latter allegation is particularly damaging given Lake Resource’s brand is centred on supplying lithium in a responsibly-sourced and environmentally friendly manner. 

Such concerns resulted in the Lake Resources share price dropping to as low as 61 cents in July. 

Lake Resources share price rebounds on management response

The market’s embrace of optimism for Lake Resources shares returned upon management’s response to J Capital’s allegations on 14 July 2022. 

Concerns were further allayed by positive news contained in the company’s quarterly results for the three months ended 30 June 2022.

Some key highlights included the advancement of its Definitive Feasibility Study, the progress with assembling its demonstration plant in Argentina, and a positive cash balance of $173 million on the balance sheet. 

I believe the recent share price rally is likely linked to the potential for further lithium exploration. In the quarterly results, Lake Resources announced it secured a second drilling rig. This is for its lithium brine projects at Olaroz, Cauchari and Paso in Argentina. 

Further, recent discussions with US-based Ford Motor Company (NYSE: F) and Japan’s Hanwa Co Ltd is fuelling the prospect of significant offtake contracts. 

My take on Lake

Lithium explorers like Lake Resources are experiencing a long industry tailwind because of the structural adoption of electric vehicles (EVs). The lithium explorers that manage to secure the most supply early on will reap the benefits thanks to a first-mover and scale advantage. 

The key advantage for such explorers is ensuring they strike ‘“gold’” – or – lithium – early on. This provides significant commercial contracts with the largest lithium users, being the big EV manufacturers. Once these contracts are locked in, this enables them to consistently reinvest into discovering new lithium sites. 

However, over the long term, more competitors will likely erode the early returns on capital because the number of suppliers could outweigh demand. 

An investor with technical knowledge in this space could reap significant rewards if they can spot whether Lake Resources possesses an emerging first-mover and scale advantage. 

The post Why did the Lake Resources share price lag the ASX 200 in July appeared first on The Motley Fool Australia.

(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

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Here are the top 10 ASX 200 shares today
• Why are ASX lithium shares having such a top run on Wednesday?
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why has the Lake Resources share price rocketed 16% today?

Motley Fool contributor Raymond Jang 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/9NWIuhY

The NRW Holdings Limited (ASX: NRW) share price surged on Thursday after the company released a solid FY22 guidance update. 

The construction and mining contrator’s shares closed at $2.13 apiece, a 10.94% increase on yesterday’s closing price. By comparison, the S&P/ASX 200 Index (ASX: XJO) slipped 0.01% into the red.

Let’s take a closer look at what excited investors today. 

EBITA above guidance

The NRW Holdings share price received a boost after the company confirmed revenue is expected to come in at around $2.4 billion, in line with its previous guidance.

Of that, the company reported an unaudited earnings before interest, tax, and amortisation (EBITA) of $157 million. That’s above its previous guidance range of $150-$155 million.

What’s likely attracted investors today though is the company’s record order book of $5.2 billion.

NRW currently holds $219 million in cash. That covers its total long-term liabilities of $210 million, according to the company’s HY22 results. 

NRW management buoyed by results

Managing director and CEO Jules Pemberton said:

We will obviously provide more detail on the results when we release on the 18th August but clearly the business has performed very well despite the significant headwinds we have had to navigate caused by Covid, labour shortages, inflationary pressures and significant 1 in 100 year weather events.

NRW share price snapshot

Over the last twelve months, the NRW share price has gained 23% and more than 20% year to date.

It’s outperformed the S&P/ASX 200 Index (ASX: XJO) which has fallen by around 7% in the last year.  

NRW has a current market capitalisation of $956 million. 

That puts the company’s price-to-earnings (P/E) ratio at 13 times, which is around its average PE multiple since it was listed on the ASX in 2007. 

My takeaway 

NRW’s business is largely dictated by the performance of the minerals and mining sector. As such, investors ought to be mindful of the unprecedented price levels for commodities over the last six months. This is illustrated below by the Reserve Bank of Australia‘s (RBA) Index of Commodity Prices, released on 2 August. 

In the last few months, commodity price levels have started to taper, resulting in significant share price falls across the mining and minerals sector. Should this continue, this could prove to be a major headwind to the NRW Holdings share price. 

Personally, I find it difficult to time such cyclical businesses so, for me, this stock falls into the too hard basket. 

The post <strong>NRW share price leaps 11% on an upgrade in guidance for FY22</strong> appeared first on The Motley Fool Australia.

(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

• Which ASX 200 shares will prove to be dividend heavyweights this earnings season?
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why Appen, Centuria Industrial, NRW, and Sayona Mining shares are pushing higher
• First mover: CBA share price rises amid interest rate changes

Motley Fool contributor Raymond Jang 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/MnPRwod

Firefinch Ltd (ASX: FFX) shares are not expected to resume trading until a funding proposal is finalised, which the gold miner anticipates will take until the end of the month. So, in short, late August at the earliest.

Firefinch today released a third letter to the ASX responding to its latest query.

Let’s take a look at what’s been happening with this ASX gold mining share.

What’s happening with Firefinch shares?

So, the drama with Firefinch of late all began on 27 June when the company requested a trading halt.

The following day, the miner announced that two recently appointed board members had resigned.

On 29 June, Firefinch asked the ASX to suspend its shares from quotation. The reason the ASX gave was “pending the release of an announcement regarding an update to operational performance and production guidance at the Morila Gold Project”.

The same day, Firefinch announced that “by mutual agreement” the managing director had resigned.

Firefinch said it would pay the outgoing Dr Michael Anderson $450,000 in contractual entitlements. Anderson was with the company for 14 months.

Firefinch appointed Andrew Taplin as acting CEO and Dr Alistair Cowden as executive chair. Taplin was on a salary of $417,006 per annum (including superannuation) plus incentives before taking on the extra role. Now he’s going to get an extra $10,000 per month.

What’s the latest on the Morila Gold Project?

On 4 July, Firefinch released the update on the Morila Gold Project. It revealed that gold production during the June quarter was well down on guidance due to poor equipment availability and delivery delays on additional equipment because of sanctions imposed on Mali restricting the movement of goods.

The production ramp-up is now behind schedule, so Firefinch had to withdraw its calendar year guidance. Plus, the company stated it was facing rising costs for inputs like diesel and explosives.

The company told the ASX it had a plan to deal with this, including a potential capital raising. But it said it needed more time and asked for an extension of its voluntary suspension until the end of July.

The next day, Firefinch announced it had sold a portion of its shares in Leo Lithium Ltd (ASX: LLL). This delivered a cash injection of $12.9 million to improve its working capital position.

On 11 July, Firefinch announced the resignation of Cowden with Brett Fraser as his replacement.

The ASX asks questions as Firefinch shares stay frozen

The ASX has asked Firefinch a bunch of questions. Firefinch issued responses on 12 July and 21 July.

On 26 July, Firefinch asked for another extension to its voluntary suspension. It said its discussions with third parties over funding were “not yet complete”. The miner asked for more time to finalise the proposed funding “which is anticipated to occur by the end of August 2022”.

In a third letter to the ASX released to the market today, Firefinch answered questions about when it took delivery of certain equipment.

It also explained the timing of its realisation that sanctions were having a material impact on production at the Morila Gold Project.

In the meantime…

On Monday, Firefinch released its June quarter cash flow and activities report. This revealed a few new details about progress at Morila.

The company said “mining equipment is now arriving at site which will alleviate operational pressures”. Firefinch also said it had implemented cost-saving measures and “enhanced” financial controls.

The company said it expected to provide an upgrade to the Morila resource and reserve estimate in the September quarter. It said this would “feed into a new mine plan, production and cost outlook and forward capital requirements”.

Firefinch reported that the Mali Government had “granted a three-year extension to the Morila Convention demonstrating its endorsement of the ramp-up and revival of Morila”.

As of 30 June, Firefinch had cash and equivalents of $40.8 million available, including gold in transit.

Firefinch shares snapshot

Firefinch shares have fallen by 64% in the year to date. They were trading for 20 cents apiece when the company asked the ASX for the trading halt.

Firefinch shares hit their 52-week low of 19 cents on 24 June.

The post When will Firefinch shares resume trading? appeared first on The Motley Fool Australia.

(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

• What’s happening with Firefinch shares following a $13 million lithium sale?

Motley Fool contributor Bronwyn Allen 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/5Yz6HVA

It’s that exciting time of the year again when many ASX-listed companies spill the tea on their latest financial results. Coincidentally, the reporting season aligns with an inundation of dividends from some of the biggest shares in the S&P/ASX 200 Index (ASX: XJO).

Typically, companies will declare the amount they intend to pay as a dividend with the delivery of their results. This is partly due to the reliance dividends have on the company’s results. Whether an ASX share achieves earnings above or below guidance can be the difference between a juicy payout or a paltry one.

As we hurtle toward the busy part of the ASX reporting season, we take a look at the ASX 200 shares that might be considered dividend heavyweights.

What will dividend disciples be dealt?

For investors who are geared more toward income, the weeks to ensue will be a white-knuckled ride. As pointed out in a Livewire article by Alastair Macleod of Wheelhouse Partners, a handful of ASX 200 companies wield a disproportionate portion of the total dividends to be paid over the next month.

It is a pivotal time for investors looking to cash in on dividend payouts. To paint the picture, 113 of the 200 constituents of the benchmark index are slated to go ex-dividend by 30 September. Within this, there are four ASX companies that Macleod highlights as ‘dividend heavyweights’.

Unsurprisingly, commodity giants Rio Tinto Ltd (ASX: RIO) and BHP Group Ltd (ASX: BHP) are on the list. Meanwhile, the other two ASX 200 shares fitting the bill are Commonwealth Bank of Australia (ASX: CBA) and Woodside Energy Group Ltd (ASX: WDS).

However, the first cab off the ranks — Rio Tinto — surprised investors last week. The company slashed its interim dividend by 52%. Although, shareholders will still receive $3.837 per share in dividends on 22 September.

Alas, the remaining ‘dividend heavyweight’ contenders are yet to report. For those interested, here are the reporting dates:

• Commonwealth Bank of Australia — 10 August
• BHP Group — 16 August
• Woodside Energy — 30 August.

How important are these ASX 200 shares?

Macleod provides an insightful chart in his article, which we’ll reference here. As depicted, the four ASX 200 dividend shares listed above are expected to be key to the total payouts.

The chart above reflects consensus estimates among analysts for near-term dividend payouts. Furthermore, we can roughly estimate that nearly 63% of the total 1.83% cash yield projected will be comprised of dividends from Rio, Commonwealth Bank, Woodside, and BHP.

Only time will tell whether these ASX 200 shares can live up to the expectations.

The post Which ASX 200 shares will prove to be dividend heavyweights this earnings season? appeared first on The Motley Fool Australia.

(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

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why Creso Pharma, Endeavour, Orica, and Woodside shares are dropping
• First mover: CBA share price rises amid interest rate changes
• 3 ASX 200 shares smashing new 52-week highs on Thursday

Motley Fool contributor Mitchell Lawler has positions in Commonwealth Bank of Australia. 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/Du8pbSG

The BetaShares NASDAQ 100 ETF (ASX: NDQ) is a popular exchange traded fund (ETF) on the ASX. However, it is not the most popular ETF covering international shares on the ASX.

That honour goes to the iShares S&P 500 ETF (ASX: IVV), closely followed by the Vanguard MSCI Index International Shares ETF (ASX: VGS).

But the NASDAQ 100 ETF is still an index fund. It covers the 100 shares on the US’s NASDAQ-100 (INDEXNASDAQ: NDX). The NASDAQ is well-renowned for hosting some of the largest tech shares on the US market.

While ‘old school’ companies like Berkshire Hathaway, Coca Cola, and Bank of America list on the New York Stock Exchange, the NASDAQ hosts the likes of Apple, Microsoft, Alphabet, Amazon.com, and Tesla.

It also hosts a diverse range of other shares as well, of course. These include Palo Alto, Netflix, Costco, Adobe, Starbucks, and Airbnb.

Now, there are many, many ETFs on the ASX that cover corners of the global tech share space. Take the BetaShares Global Cybersecurity ETF (ASX: HACK). It (as you can probably guess) tracks a portfolio of cybersecurity companies.

The ETFS FAANG+ ETF (ASX: FANG) holds only 10 shares, including Apple, Alphabet, Microsoft, Meta Platforms, and Tesla.

Then there is the BetaShares Cloud Computing ETF (ASX: CLDD). It focuses on companies in the cloud computing industry, including Netflix and Salesforce.

The ETFS Morningstar Global Technology ETF (ASX: TECH) holds a diversified basket of 39 shares sourced from various corners of the global tech space.

But I prefer the BetaSahres NASDAQ 100 ETF to all of these other ASX tech ETFs.

This is for two reasons.

Why I prefer NDQ to any other ASX tech ETF

The first is sheer performance. Despite losing more than 12% over the six months to 31 July 2022, the NDQ ETF has still managed to give investors an average annual return of 20.69% over the past five years.

That runs rings around all of the other tech ETFs listed above, with the possible exception of FANG.

The FANG ETF has only been around for just over a year. But its benchmark index has reportedly returned an average of 24.6% per annum over the same period.

The second is diversification. NDQ has approximately 100 underlying holdings, far more than any of the above ETFs.

Among these 100 stocks are cybersecurity shares like Palo Alto, almost all of the shares in the FANG ETF, and cloud computing shares like Netflix.

A sector-specific ETF like HACK has its own diversification risks, seeing as all of the holdings come from the same sector.

But NDQ’s diversification risk is far lower seeing as it represents so many different underlying industries.

This diversification, together with NDQ’s superlative performance figures, is enough to convince me that I would rather have the NDQ ETF in my portfolio over any other tech-based ETF today.

The post Here’s why I prefer NDQ to these other ASX tech ETFs today appeared first on The Motley Fool Australia.

(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

• 3 ETFs for smart ASX investors in August
• Here are 2 ASX ETFs I would buy for 2022 and beyond
• Is the NDQ ETF a no-brainer buy right now?
• 3 high quality ETFs for ASX investors to buy today
• I think the Betashares Nasdaq 100 ETF looks like a strong buy

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen has positions in Adobe Inc., Airbnb, Inc., Alphabet (A shares), Amazon, Apple, Coca-Cola, Costco Wholesale, Microsoft, Netflix, Starbucks, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe Inc., Airbnb, Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, BETA CYBER ETF UNITS, BETANASDAQ ETF UNITS, Berkshire Hathaway (B shares), Costco Wholesale, ETFS Morningstar Global Technology ETF, Microsoft, Netflix, Starbucks, Tesla, and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $420 calls on Adobe Inc., long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), short January 2024 $430 calls on Adobe Inc., short March 2023 $130 calls on Apple, and short October 2022 $85 calls on Starbucks. The Motley Fool Australia has positions in and has recommended BETA CYBER ETF UNITS and BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Adobe Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Netflix, Starbucks, Vanguard MSCI Index International Shares ETF, and iShares Trust – iShares Core S&P 500 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/emZUKzk

The ASX welcomed its newest exchange-traded fund (ETF) to its boards today. ETFs have been growing in both popularity and volume for years now.

Over the past 12 months, we have welcomed the BetaShares Online Retail and E-Commerce ETF (ASX: IBUY), the ETFS Hydrogen ETF (ASX: HGEN), and the BetaShares Crypto Innovators ETF (ASX: CRYP) to the ASX.

And today, the BetaShares Metaverse ETF (ASX: MTAV) joined this list.

Metaverse ETF joins the ASX

Yes, as we covered this morning, this brand spanking new ETF has just floated on the ASX. As its name implies, it invests in a basket of global ‘metaverse’ shares.

As my Fool colleague Tony noted in his coverage, the metaverse is the term that refers to the idea that the internet will morph into a “massive unified virtual world”.

It has been a term most associated with the social media giant Meta Platforms (NASDAQ: META), which of course used to be known as Facebook.

So it perhaps will come as no surprise that Meta stock is one of the largest holdings in this new ETF. But other well-known shares like Roblox, NVIDIA, Apple and Disney are also present in its 32-share strong portfolio.

So how did the BetaShares Metaverse ETF perform on its first day on the ASX?

Well, MTAV units only began trading at 12 noon today. The ETF debuted at a unit price of $10.56 each. As of market close, the ETF slipped slightly and finished the day at a price of $10.53, a fall of 0.28%.

So nothing too dramatic there. But there will probably be no investors with FOMO either.

The BetaShares Metaverse ETF charges a management fee of 0.69% per annum or $69 per year for every $10,000 invested.

The post How did the BetaShares Metaverse ETF perform on its ASX debut? appeared first on The Motley Fool Australia.

(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

• 5 tech stocks sending the Nasdaq higher on Wednesday
• How to buy ASX shares exposed to the metaverse
• Why are ASX 200 tech shares having such a lousy start to the week?
• Headwinds will slow growth for Meta; Should investors sell now?

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Apple, Meta Platforms, Inc., Nvidia, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Meta Platforms, Inc., Nvidia, Roblox Corporation, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple, Meta Platforms, Inc., Nvidia, and Walt Disney. 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/kCsJNL5

The S&P/ASX 200 Index (ASX: XJO) slipped ever so slightly on Thursday after major commodity prices tumbled overnight. The index was 0.01% lower at 6,974.90 points as of the market’s close.

The slip came despite a decent performance by tech shares. S&P/ASX 200 Information Technology Index (ASX: XIJ) rose 1.9% today on the back of lower US bond yields. US 10-year yields fell to around 2.7% while US 2-year yields to near 3.07%.

On the other hand, the S&P/ASX 200 Energy Index (ASX: XEJ) plummeted 2.2% in today’s session, likely due to lower oil prices.

Brent crude oil slumped 3.7% to US$96.78 a barrel overnight while the US Nymex crude price slipped 4% to US$90.66 a barrel.

The S&P/ASX 200 Materials Index (ASX: XMJ) was the market’s next worse performer, plunging 1% on Thursday after iron ore futures fell 3.8% to US$110.38 a tonne.

At the end of today’s session, seven of the ASX 200’s 11 sectors were trading higher.

But which stocks outperformed all their peers to be crowned today’s best improver? Let’s take a look.

Top 10 ASX 200 shares countdown

Today’s top performing ASX 200 share is none other than bookmaker Pointsbet Holdings Ltd (ASX: PBH). Find out what the stock has been up to lately here.

Today’s biggest gains were made by these ASX shares:

ASX-listed company	Share price	Price change
Pointsbet Holdings Ltd (ASX: PBH)	$3.18	11.58%
Imugene Limited (ASX: IMU)	$.255	10.87%
Life360 Inc (ASX: 360)	$4.69	9.58%
Block Inc (ASX: SQ2)	$126.08	8.9%
Bega Cheese Ltd (ASX: BGA)	$3.73	6.88%
Megaport Ltd (ASX: MP1)	$9.13	4.94%
AMP Ltd (ASX: AMP)	$1.17	4.93%
Telix Pharmaceuticals Ltd (ASX: TLX)	$7.75	4.45%
Virgin Money UK CDI (ASX: VUK)	$2.69	4.26%
Domain Holdings Australia Ltd (ASX: DHG)	$3.74	4.18%

Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

(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

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why is the Pointsbet share price up 8% on the ASX today?
• First mover: CBA share price rises amid interest rate changes
• 3 ASX 200 shares smashing new 52-week highs on Thursday
• Why is the Block share price charging 10% higher on Thursday?

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 Block, Inc., Life360, Inc., MEGAPORT FPO, and Pointsbet Holdings Ltd. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended MEGAPORT FPO and Pointsbet Holdings Ltd. 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/RID7yq9