Category: Stock Market

The Westpac Banking Corp (ASX: WBC) dividend is one of the most popular options for income investors on the Australian share market.

Over the years, Australia’s oldest bank has shared a large portion of its profits with shareholders.

The good news is that this trend is expected to continue in the future according to a number of analysts.

What are analysts saying about the Westpac dividend?

While opinion is divided on the exact value of the Westpac dividend in the coming years, one thing that analysts agree on is that the yield on offer with its shares will be generous.

One of the more cautious brokers is Macquarie, which has a neutral rating and $22.00 price target on its shares.

Its analysts are forecasting fully franked dividends per share of $1.22 in FY 2022, $1.23 in FY 2023, and $1.25 in FY 2024. Based on the current Westpac share price of $20.20, this will mean yields of 6%, 6.1%, and 6.2%, respectively.

What else?

The team at Goldman Sachs, which also has a neutral rating but lofty $27.29 price target, expect even bigger dividends for Westpac.

The broker has pencilled in fully franked dividends per share of $1.24 in FY 2022, $1.29 in FY 2023, and $1.46 in FY 2024. This implies yields of 6.1%, 6.4%, and 7.2%, respectively.

Finally, over at Citi, its analysts are bullish on Australia’s oldest bank and expect the Westpac dividend to be much larger than the others in the coming years.

Citi is forecasting fully franked dividend of $1.23 in FY 2022, $1.53 in FY 2023, and then $1.85 in FY 2024. If these forecasts are accurate, it will mean very generous yields of 6.1%, 7.6%, and 9.15%, respectively.

In addition, its analysts have a buy rating and $29.00 price target on the company’s shares. This suggests material upside potential over the next 12 months.

The post This is what analysts are forecasting for the Westpac dividend through to FY24 appeared first on The Motley Fool Australia.

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More reading

• ‘CBA and Westpac are too big’: One fund manager’s take on the future of ASX 200 bank shares
• How to beat the market with ‘boring’ ASX shares: fundie
• Own Westpac shares? The plan for a $1 billion division sale
• Top ASX dividend shares to buy in July 2022
• Setting the pace: Why ASX 200 bank shares are feeling the pinch on Friday

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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With the blockbuster news out this week regarding Australia and New Zealand Banking Group Ltd (ASX: ANZ), the future of the ASX banking sector — and bank shares — is certainly in the spotlight. ANZ announced on Monday that it would be buying the banking arm of Suncorp Group Ltd (ASX: SUN) for a sum of $4.9 billion.

It will be one of the largest banking tie-ups on the ASX for decades. Certainly since the old St George Bank was swallowed up by Westpac Banking Corp (ASX: WBC) back in 2008.

So what does this mean for the future of the ASX banking sector? Could even more mergers be on the table for some of the other ASX bank shares?

Could AMP be the next big four bank takeover target?

Well, an arguable candidate for a takeover might be AMP Ltd (ASX: AMP). AMP has leaned back into focusing on its banking division after years of corporate trouble. The AMP share price has fallen more than 80% over the past five years. Not to mention this once-venerable ASX institution now has a market capitalisation of just over $3 billion. As such, AMP could certainly be in the sights of one of the ASX’s larger banks.

The question of whether AMP might be next off the rank after Suncorp was raised at the recent ‘Allan Gray Live: What does the future hold for AMP?’ webinar, hosted by ASX fund manager Allan Gray.

Expert: CBA, Westpac too big to buy AMP

Here’s some of what Allan Gray portfolio managing director and chief investment officer Simon Mawhinney had to say when asked if he thought AMP was an ASX big four takeover target:

I would say there’s less chance of it [AMP] being taken over by a big four bank than perhaps it merging with a non big four regional bank. If I think about it, I think CBA and Westpac are too big. And so the ACCC would likely have some concerns; maybe even APRA if its mandate is to be concerned about things like that.

Clearly, ANZ has now shot its bullets and it’s got some stuff to work on, and so its focus is elsewhere. NAB has recently bought Citi’s… one of Citi’s books — and so I think that they’re pretty much spoken for.

Sure, there is some scope to merge with another bank. It might happen. I hope that if someone came to AMP and said, ‘Here’s 1.3 times NTA for AMP Bank, do you want it or not?’ I hope they would take it because we would be delighted with that outcome.

So according to Mawhinney, there is far more of a chance that AMP might join forces with a bank like Bendigo and Adelaide Bank Ltd (ASX: BEN) than with the likes of Commonwealth Bank of Australia (ASX: CBA), Westpac, or National Australia Bank Ltd (ASX: NAB).

It’s an interesting take on the future of the ASX 200’s banking sector. For now, we can only wait and see what actually happens.

The post ‘CBA and Westpac are too big’: One fund manager’s take on the future of ASX 200 bank shares appeared first on The Motley Fool Australia.

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More reading

• This is what analysts are forecasting for the Westpac dividend through to FY24
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Here’s a look at what might happen to Woolworths shares in FY2023
• Should owners of CBA shares be worried about ANZ’s mega deal?
• Why Allegiance Coal, Hub24, Suncorp, and WiseTech shares are dropping

Motley Fool contributor Sebastian Bowen has positions in National Australia Bank Limited. 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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The S&P/ASX 200 Index (ASX: XJO) has dipped as we head towards the end of this Tuesday’s trading session. After some initial bouncing around this morning, the ASX 200 has now decisively fallen by 0.62% and is now sitting at around 6,645 points. 

But rather than trying to figure all of that out, let’s instead take a look at the shares that are currently at the top of the ASX 200’s trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Tuesday

South32 Ltd (ASX: S32)

ASX 200 diversified mining company South32 is our first share to check out today. So far this Tuesday, a hefty 12.31 million South32 shares have been bought and sold.

We haven’t had any news or announcements out of the company today, so we can probably blame South32’s volatile share price movements themselves for this volume. As it currently goes, South32 is down a painful 1.58% at $3.425 after initially rising to $3.56 a share this morning.

Pilbara Minerals Ltd (ASX: PLS)

Pilbara Minerals is next up this Tuesday. So far today, a sizeable 14.46 million of this ASX 200 lithium producer’s shares have traded owners. Again, we seem to have a very similar situation to South32 happening with this company. Pilbara initially rose this morning to $2.50 a share but is now down by 2.87% at $2.37 a share.

Lake Resources N.L. (ASX: LKE)

Our third and final share today is another ASX 200 lithium stock in Lake Resources. A whopping 28.85 million Lake shares have now changed hands as it currently stands. We don’t have to look too far for this one.

Lake Resources shares have rocketed today. The company is presently up by an eye-popping 11.52% at 69.7 cents a share. As my Fool colleague Zach covered earlier, this rise comes despite no news out of Lake Resources today whatsoever.

The post Here are the 3 most heavily traded ASX 200 shares on Tuesday appeared first on The Motley Fool Australia.

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More reading

• Here’s a look at what might happen to Woolworths shares in FY2023
• Why is the Lake Resources share price rallying 11%?
• Why is the Santos share price on such a tear today?
• ASX 200 midday update: BHP’s Q4 update, JB Hi-Fi delivers record result
• Brokers: Buy these 2 leading ASX 200 shares in July

Motley Fool contributor Sebastian Bowen 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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All Ordinaries Index (ASX: XAO) shares, as a whole, are struggling today.

At the time of writing the 500 ASX shares that make up the All Ordinaries are down a combined 0.5%, with many sliding following the release of the RBA’s Monetary Policy meeting minutes earlier today.

But some companies are bucking that trend, with these three ASX All Ordinaries shares charging higher.

3 ASX All Ordinaries shares leaping higher today

First up we have Strandline Resources Ltd (ASX: STA).

The ASX resource explorer is primarily focused on mineral sands, with projects in Australia and Tanzania. There’s no fresh news out from the company, but that’s not stopping investors from bidding up the price.

Strandline closed yesterday trading at 32 cents per share and is currently trading for 35 cents per share, up 9.5%. At the current price that gives Strandline Resources a market cap of $428 million.

Our second ASX All Ordinaries share galloping higher today on no new price-sensitive news is Qualitas Limited (ASX: QAL), a recent newcomer to the ASX, listing on 16 December 2021.

Shares in the alternative real estate investment manager closed at $1.62 yesterday and are currently trading for $1.78, up 9.9%. That boosts the company’s market cap to $523 million.

Also charging higher…

Also charging higher is clinical-stage biotechnology company Mesoblast Ltd (ASX: MSB).

The ASX All Ordinaries share was up 14% in early morning trade, but has given some of that back. At the time of writing, shares are trading for 93 cents, up 8.2%, giving the company a market cap of $596 million.

Unlike the other two big gainers, Mesoblast did release fresh news this morning, citing clinical progress with its rexlemestrocel-L product candidate.

As my Fool colleague, James Mickleboro reported:

Rexlemestrocel-L delivered an improvement in left ventricular ejection fraction (LVEF) at 12 months after a single intervention in the 565-patient randomised controlled trial in New York Heart Association (NYHA) class II/III chronic heart failure (CHF) with reduced ejection fraction (HFrEF).

The post 3 ASX All Ordinaries shares leaping 10% or more today appeared first on The Motley Fool Australia.

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More reading

• Why JB Hi-Fi, Mesoblast, Pendal, and Woodside shares are pushing higher
• Why is the Mesoblast share price jumping 14%?
• How did ASX biotech shares perform in FY22?
• These are the 10 most shorted ASX shares
• Why Austal, Mesoblast, Regis Resources, and Zip shares are charging higher

Motley Fool contributor Bernd Struben 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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The Woolworths Group Ltd (ASX: WOW) share price was a standout performer on the S&P/ASX 200 Index (ASX: XJO) last financial year. Over FY2022, Woolworths shares recorded a loss of 0.6%, closing out the financial year at $35.60 a share.

A loss of 0.6% might not look like a winning proposition for many investors. But considering the broader ASX 200 fell by a far nastier 10.19% between 1 July 2021 and 30 June 2022, it was considerably better to own Woolies shares than the index.

Further, Woolworths shares paid out a total of 94 cents per share in fully franked dividends. That’s enough to pull the company into positive return territory for FY2022.

But now FY2022 is well behind us and we’ve already embarked on the 2023 financial year, what might the next 12 months or so hold in store for the Woolworths share price?

Is it buy or sell for the Woolworths share price in FY2023?

Well, one broker is extremely bullish on Woolies shares going forward, even after the positive year the company enjoyed over FY2022.

As my Fool colleague James covered last week, ASX broker Goldman Sachs is currently rating Woolworths shares as a “buy”. It also has a 12-month share price target of $41.70 on the supermarket operator’s shares.

If that came to pass, it would represent a potential upside of just over 12.8% from the $36.96 share price the company is commanding today (at the time of writing).

So why is Goldman so optimistic on Woolworths shares over this current financial year? The broker is estimating that Woolies will be able to continue to grow both revenues and earnings going forward. Here’s some of what it had to say on its projections:

We are encouraged by the resilience and superior operations of WOW and reiterate our unchanged FY22-24e Sales and EPS CAGR of 6.9% and 14.9% respectively. We expect this to be driven by high price growth, well protected GPM and slight EBIT margin expansion as COVID costs roll-off and cost efficiencies continue.

So a very positive outlook on Woolworths share price from Goldman Sachs. Only time will tell if this outlook proves to be accurate though. Even so, it’s no doubt music to Woolworths shareholders’ ears today.

At the current Woolworths share price, this ASX 200 blue chip share has a market capitalisation of $44.87 billion, with a fully franked dividend yield of 2.54%.

The post Here’s a look at what might happen to Woolworths shares in FY2023 appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why is the Santos share price on such a tear today?
• ASX 200 midday update: BHP’s Q4 update, JB Hi-Fi delivers record result
• Brokers: Buy these 2 leading ASX 200 shares in July
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Sebastian Bowen 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 Goldman Sachs. 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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Shares in Eagers Automotive Ltd (ASX: APE) are edging higher on Tuesday following another top-up by a board member.

At the time of writing, the automotive retailer’s shares are fetching at $11.76, up 0.68%.

In comparison, the S&P/ASX 200 Index (ASX: XJO) is heading south by 0.65% to 6,643 points following losses on Wall Street overnight.

Let’s take a look at the details surrounding the latest insider buying action.

Eagers Automotive’ Politis continues to buy up

According to the Australian Financial Review, non-executive director Nick Politis has made a series of on-market purchases in Eagers Automotive.

This comes as the company received approval to take over the rich lister’s privately-owned dealerships in the Australian Capital Territory. The agreed acquisition price was $193 million which is relatively modest given Politis’ estimated weath is $2.02 billion.

In the past month, Politis has picked up 50,000 Eagers Automotive shares between $10.733 and most recently $11.336 apiece.

This puts him as the largest shareholder of the company, with a total holding of roughly 70.26 million shares.

To put that into perspective, that equates to around a 27.3% holding in Eagers Automotive.

Since mid-June and the timely buy from Politis, the automotive retailer’s shares have rebounded strongly by 33%.

The company has hundreds of dealerships across Australia and New Zealand, selling a number of popular vehicle brands.

Acquiring the dealerships in the ACT will generate $450 million in sales per year for the business. These include four Toyota dealerships as well as Lexus of Canberra, Subaru Canberra, Volvo Car Canberra, and Phillip Mitsubishi.

Eagers Automotive share price snapshot

Despite today’s gain, the Eagers Automotive share price has fallen around 22% in the past 12 months.

Year to date, the company’s shares are down 12%.

Based on today’s price, Eagers Automotive commands a market capitalisation of approximately $3 billion.

The post Guess which ASX 200 share this billionaire has been topping up on appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX shares today
• Eagers Automotive share price lifts on ‘improved outlook’
• Why Eagers Automotive, Viva Energy, Woolworths, and Zip shares are rising
• ASX 200 midday update: Zip scraps Sezzle merger, Lake Resources’ short seller attack
• Here are the top 10 ASX shares today

Motley Fool contributor Aaron Teboneras 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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Owners of Commonwealth Bank of Australia (ASX: CBA) shares may want to consider how the banking landscape may be affected by Australia and New Zealand Banking Group Ltd (ASX: ANZ)’s plan to buy the banking division of Suncorp Group Ltd (ASX: SUN).

For readers that didn’t see it, ANZ is proposing to pay $4.9 billion for Suncorp’s banking operations so that it can become larger and gain more exposure to the Queensland economy.

It’s raised some questions about what this may mean for competition in the banking sector. But ANZ  thinks the deal could strengthen competition because it will be better placed to challenge other large players more effectively. So is this bad news for CBA shares?

What ANZ said

The ANZ CEO Shayne Elliot said with the announcement:

We know there will rightly be questions from government and regulators about the competition aspects of this transaction. As the smallest of the major banks, we believe a stronger ANZ will be able to compete more effectively in Queensland offering better outcomes for customers.

The Australian Financial Review reported that Elliot said:

This is a big step forward, but I don’t think moving from 13% to 15% market share somehow gives us some dominant position or some pricing power that we didn’t have before.

It’s a modest uplift, and we get to be a better competitor, with the really big players in the market who are people like CBA. Just as Suncorp probably feels dwarfed by ANZ, we feel dwarfed by CBA.

Despite the huge addition of $47 billion of home loans and $11 billion of commercial loans, it would still leave ANZ as the fourth largest business lender. However, it would rise above NAB to become the third largest bank in terms of mortgages and retail deposits. Yet it will still be comfortably below CBA’s share of the market.

ANZ is particularly attracted to the customers that will be coming with the deal.

Competition can hurt margins

Prior to the Reserve Bank of Australia (RBA) increasing interest rates, CBA was warning that price competition was hurting its net interest income.

For example, in the FY22 third quarter update, net interest income was 2% lower due to a lower net interest margin (NIM). It was influenced by “home loan margin compression from higher swap rates, portfolio mix effects and price competition.”

Other banks have also been complaining of the effects of competition on their margins.

The RBA’s rate hikes are expected to help bank profit margins. CBA has been passing on the full rate rises to borrowers, so competition doesn’t seem to have been much of a factor there.

Where is the CBA share price headed next?

Brokers are mixed on what could happen for CBA.

UBS is ‘neutral’ on the biggest bank, with a price target of $105. That implies a possible rise of around 10% over the next year.

But Morgan Stanley has an ‘underweight’ rating on the bank, which is much like a ‘sell’. The price target is $79, implying a drop of around 16%. It’s concerned about the bank’s higher bad debts.

The post Should owners of CBA shares be worried about ANZ’s mega deal? appeared first on The Motley Fool Australia.

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More reading

• Why Allegiance Coal, Hub24, Suncorp, and WiseTech shares are dropping
• How to beat the market with ‘boring’ ASX shares: fundie
• 5 things to watch on the ASX 200 on Tuesday
• ‘Not bricks and mortar’: The real value in ANZ acquiring Suncorp’s banking operations
• Here are the top 10 ASX shares today

Motley Fool contributor Tristan Harrison 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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One ASX financial company is soaring ahead today following the release of its initial FY22 results.

The Harmoney Corp Ltd (ASX: HMY) share price is currently surging 20.29% higher, trading at 83 cents a share. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.58% at the time of writing.

Let’s take a look at what the company reported today.

What did this ASX financial company report?

Highlights of Harmoney’s FY22 preliminary unaudited results include:

• Delivered proforma cash net profit after tax (NPAT) profitability in FY22
• Total group proforma loan book jumped 37% on previous corresponding period (pcp) to $685 million
• Australian loan book soared 113% to $287 million pcp
• New Zealand loan book jumped 3%

What else did Harmoney reveal?

Harmoney is an online personal lender targeting the Australian and New Zealand markets.

A huge growth in customers appears to be underpinning the company’s projected profit growth.

The company says its platform is gaining more than 12,000 new customer accounts per month. Of these, 8,000 are providing bank statement information.

It said it passed on a weighted average interest rise of greater than 100 basis points on new lending, in response to rising interest rates.

Commenting on the results, Harmoney CEO and managing director David Stevens said:

Harmoney continues to deliver on its high margin, consumer-direct growth strategy, with its Australian loan book growing by 113%, whilst achieving an enviable net interest margin of 12%, Net lending margin (after losses) of 8.4% and delivering proforma cash NPAT profitability.

Our credit performance has remained strong with losses and arrears at historic lows.

What is ahead?

Looking ahead, Harmoney is expecting Australian loan book numbers to be higher than New Zealand by the first half of FY23.

The company is expecting higher account acquisition, new loans, and net lending margin increases to drive cash NPAT growth in FY23.

Commenting on potential central bank rate rises, Stevens added:

With the second half of the year and the likelihood of increasing central bank rates putting upward pressure on funding costs, Harmoney’s hedging program, with around 73% of floating rate borrowings hedged, dampens this impact over the course of the year.

Shareholders will be updated with the company’s official FY22 results on 31 August.

Share price snapshot

Harmoney shares have jumped 10% in the past week and around 3% in the past month.

However, this ASX financial company’s shares have lost 63% in the past year, and 54% year to date.

For perspective, the benchmark ASX 200 index has lost nearly 9% in the past year.

Harmoney has a market capitalisation of about $83 million based on the current share price.

The post This ASX financial company just became profitable, and its share price is surging 20% appeared first on The Motley Fool Australia.

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More reading

• How to successfully invest using only ASX ETFs: expert
• Why Allegiance Coal, Hub24, Suncorp, and WiseTech shares are dropping
• Could ASX earnings season be ‘a lot better than what the market is positioned for’?
• Why are Pendal shares in a trading halt?
• These ASX 200 coal shares are smashing 10-year highs on Tuesday

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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Exchange-traded funds (ETFs) are increasingly popular as a method of investing in shares and other assets on the ASX. The rise of the ETF over the past decade or two has been a well-documented trend, including here on the Fool.

But there are so many ETFs out there these days, covering almost anything one can think of, that it can be difficult to know which ones are the best to have one’s money in.

Between index funds, commodity funds and sector-specific ETFs, it can quickly become overwhelming to sift through the cornucopia of ETFs available on the ASX.

So today, let’s look at just five ETFs that one exchange-traded fund expert reckons are all you need to successfully invest.

Expert names the only five ASX ETFs you need

When it comes to ASX ETFs, one of the leading experts on the matter is Chris Brycki. Brycki is the founder and CEO of investment company Stockspot. Stockspot builds an investment portfolio for its clients using only ETFs. He recently sat down with Livewire for an interview.

Brycki starts off by naming the five ETFs that he likes to use to build his investors’ portfolios.

The first is none other than the Vanguard Australian Shares Index ETF (ASX: VAS). VAS is the most popular ETF on the ASX by funds under management. It is also the only ASX index ETF that tracks the S&P/ASX 300 Index (ASX: XKO), rather than the more popular S&P/ASX 200 Index (ASX: XJO).

This is one of the reasons why Brycki likes this ETF for exposure to Australian shares, also pointing to its low fees, greater liquidity and long-term returns.

But when it comes to international shares, Brycki is happier to go against popular opinion. Currently, the two most popular ASX-listed international shares ETFs are the iShares S&P 500 ETF (ASX: IVV), and the Vanguard MSCI International Shares Index ETF (ASX: VGS). But neither of these funds are Brycki’s preferred avenue to international shares.

Instead, Stockspot favours the iShares Global 100 ETF (ASX: IOO). This fund holds only 100 of the world’s largest companies. These hail from the US, as well as Europe, Japan, Korea and the United Kingdom. Stockspot uses IOO for its liquidity and longer-listed track record. Not to mention its habit of outperforming its rivals.

Diversifying with exchange-traded funds…

For access to emerging markets, the iShares MSCI Emerging Markets ETF (ASX: IEM) is Stockspot’s fund of choice. This ETF holds more than 800 companies from emerging countries like China, India and Taiwan. IEM is also preferred by Stockspot for both its liquidity and long pattern of generating returns. That’s despite some of its rivals offering lower fees.

Turning to assets outside the sharemarket now, and we have Brycki’s preference for accessing fixed interest bond investments. The iShares Core Composite Bond ETF (ASX: IAF) holds bonds issued by Australian governments. As well as some investment-grade corporate bonds.

Stockspot chooses this bond for fixed-interest asset exposure for “its size, liquidity, track record, high credit quality and relatively short duration”. Not to mention its lower fees compared to its rivals.

Stockspot’s final ETF covers a different asset class again. And this time, it’s gold. For this precious metal, Brycki’s choice is the ETFS Physical Gold ETF (ASX: GOLD).

This ETF is backed by physical gold bullion, stored in a vault in London. Stockspot also likes the fact that it is unhedged. This means investors can benefit from a falling Australian dollar. Stockspot also appreciates GOLD’s size, as well as the fact that it has the tightest spreads in buying and selling units.

The post How to successfully invest using only ASX ETFs: expert appeared first on The Motley Fool Australia.

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More reading

• The Vanguard Australian Shares Index ETF hit an all-time high in FY22 … and finished down more than 10%
• How did the Vanguard Australian Shares Index ETF perform in June?
• Down 15% in 2022, is it time to jump on Vanguard Australian Shares Index ETF?

Motley Fool contributor Sebastian Bowen 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 Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended 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.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. At the time of writing, the benchmark index is down 0.6% to 6,649 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Allegiance Coal Ltd (ASX: AHQ)

The Allegiance Coal share price is down a massive 66% to 18.5 cents. Investors have been selling this coal miner’s shares following the release of a very disappointing update. Allegiance Coal has been unable to successfully ramp up production to previous expectations at its two operating mines. This has left it in a precarious position financially. In order to keep the lights on, the company has established a $5 million equity facility.

Hub24 Ltd (ASX: HUB)

The Hub24 share price is down 7% to $22.13. The catalyst for this was the release of the investment platform provider’s fourth quarter update. Although that update revealed that Hub24 achieved a record annual increase in platform inflows of $11.7 billion in FY 2022, its soft finish to the year appears to have spooked investors. Hub24 revealed that it finished the period with funds under administration (FUA) of $65.6 billion. This was an increase of 11.8% year on year, but down 4% quarter on quarter.

Suncorp Group Ltd (ASX: SUN)

The Suncorp share price is down over 4% to $11.27. This morning the team at Ord Minnett downgraded this insurance giant’s shares to a hold rating and cut the price target on them to $13.25. It isn’t a fan of the company’s decision to sell its banking operations.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price is down over 5% to $44.80. As well as being hit by weakness in the tech sector, the logistics solutions software company’s shares were dealt a blow from Macquarie this morning. The broker has downgraded them to an underperform rating with a $42.00 price target. The broker suspects that the company’s margins may be peaking, which it fears could weigh on its valuation.

The post Why Allegiance Coal, Hub24, Suncorp, and WiseTech shares are dropping appeared first on The Motley Fool Australia.

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More reading

• Why did ASX coal share Allegiance just plunge 65%?
• ASX 200 midday update: BHP’s Q4 update, JB Hi-Fi delivers record result
• Hub24 share price sinks 7% despite record year
• ‘Not bricks and mortar’: The real value in ANZ acquiring Suncorp’s banking operations
• Here are the top 10 ASX shares today

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 Hub24 Ltd and WiseTech Global. The Motley Fool Australia has positions in and has recommended Hub24 Ltd and WiseTech Global. 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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