Category: Stock Market

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

More reading

• What will it take for DroneShield shares to enter the ASX 200?
• The best ASX 200 share of each market sector in FY24
• 3 high-flying ASX 200 stocks leading the charge into FY 2025
• Why Clinuvel, Guzman y Gomez, Magellan, and Sandfire shares are charging higher
• Up 15% in a month: Are Magellan shares still cheap enough to buy?

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 Corporate Travel Management and SiteMinder. The Motley Fool Australia has positions in and has recommended Corporate Travel Management and SiteMinder. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares of NIB Holdings Ltd (ASX: NHF) finished trade on Friday at $6.98, down 1.97%.

Whilst there’s been nothing market sensitive released by the company today, the moves come amidst a public standoff with St Vincent’s Health Australia regarding healthcare costs.

Some have raised concerns about the future of the insurer’s partnership with the hospital as a result. Here’s what you need to know.

St Vincent’s threatens to end negotiations

NIB shares were in focus on Thursday after non-profit hospital group St Vincent’s Health Australia put the health fund on notice, saying it could “walk away from their contract within the next 65 business days unless a new fairer funding agreement is reached”.

The contracts are to do with the funding agreement St Vincent’s has with NIB.

The group says it has asked NIB to provide a “fair funding agreement” that reflects increased healthcare costs of private hospitals.

St Vincent’s is Australia’s largest operator of non-profit private hospitals. It runs 10 private hospitals throughout NSW, QLD and Victoria and says NIB has “not put a fair offer on the table” whilst shutting the door on any future negotiations.

Now the group has threatened to walk away from talks with NIB after being left with “no choice”.

Unless a new funding agreement is reached within the notice period, St Vincent’s will end its contract with nib in early October (final day of notice period – Thursday, 3 October). 

This means that, after this date – unless an agreement is reached in the meantime – patients who use nib for their private health insurance may be required to contribute more to the cost of their care when using a St Vincent’s private hospital.

St Vincent’s CEO, Chris Blake, said that over 70 private hospitals have closed in the past 5 years here in Australia. In fact, the Federal Government is reviewing the issue right now in a national review.

Blake also described St Vincent’s frustrations:

In the last 12 months, St Vincent’s has negotiated major new agreements with Medibank Private Ltd (ASX: MPL), HCF, and the Alliance group of health funds. While the negotiations were robust, both sides gave ground to achieve a fair result. 

This is not a decision we take lightly. This is the first time in our 167-year history that St Vincent’s has given notice to a private health fund that we intend to end our agreement. It’s an indication of how seriously we treat this matter.

But nib has given us no choice but to make this call. 

NIB shares continue downtrend

Whilst the news isn’t market-sensitive, NIB shares drifted 5% lower this week. This continues a longer-term downtrend that’s been in place for the past three months.

In that time, NIB is down from highs of $7.82 per share on 9 April.

The firm reassured its members of continued coverage while it hopes to resume negotiations with St Vincent’s Health Australia.

In a statement on Friday, NIB’s CEO, Mark Fitzgibbon, assured members booked for treatment at St Vincent’s hospitals that they will remain covered until at least October 3, according to The Australian.

Fitzgibbon expressed disappointment at St Vincent’s decision to go public with the dispute but insisted that NIB has made a fair offer.

If negotiations fail, NIB members can still receive treatment initiated before October 3 until discharge.

What this means for investors

Despite the dispute, brokers are positive. Goldman Sachs recently rated NIB as a buy with a price target of $8.10, citing favourable operating trends and strong policyholder growth. NIB’s approved rate increases of 4.1% this year are expected to support its financial stability despite the current challenges.

Still, the ongoing negotiations between NIB and St Vincent’s are critical for maintaining coverage and customer satisfaction.

Investors should keep a close eye on the developments, as the outcome could significantly impact NIB’s share price and market position.

NIB shares are down over 19% in the last 12 months.

The post Will NIB shares bleed to keep St Vincent’s onside? appeared first on The Motley Fool Australia.

More reading

• Buy or hold? Top broker rates these 2 ASX 200 shares

Motley Fool contributor Zach Bristow 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 Group. The Motley Fool Australia has positions in and has recommended NIB Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX All Ordinaries Index (ASX: XAO) is slightly in the red on Friday, down 0.11%.

There are 500 companies within the ASX All Ords index.

We thought it might be interesting to see which ASX All Ords share delivered the best capital growth in FY24 and which one languished at the bottom of the pile.

The results are in.

Best ASX All Ords share of FY24 for growth

Clarity Pharmaceuticals Ltd (ASX: CU6)

ASX All Ords healthcare share Clarity Pharmaceuticals shot the lights out in FY24. The Clarity Pharmaceuticals share price soared by 674.29% over the 12 months.

Clarity is a clinical-stage radiopharmaceutical company. It’s developing next-generation therapy and imaging products used for the diagnosis and treatment of cancer and other serious diseases.

The majority of the stock’s impressive price ascension in FY24 began in April.

That’s when the company announced that the first patient ever to be dosed with two cycles of 67Cu-SAR-bisPSMA at 8GBq had a complete response to treatment based on RECIST criteria.

That meant the patient had maintained undetectable levels of prostate cancer for almost six months.

In March, Clarity successfully completed an institutional capital raising of $110 million. It then ran a fully underwritten retail entitlement offer at $2.55 per share, which raised a further $10.8 million.

The funds will be used to continue radiopharmaceutical product development.

Last month, Clarity announced it had received a near-$10 million research and development tax incentive refund as part of the Australian Federal Government’s R&D Tax Incentive program.

The Clarity Pharmaceuticals share price closed FY24 at $5.42.

Worst ASX All Ords share of FY24

Core Lithium Ltd (ASX: CXO)

The share price of ASX All Ords lithium share Core Lithium tanked by 90% in FY24.

Just a year ago on 30 June 2023, Core Lithium shares were worth 90 cents a piece. That was already a devastating 52% fall from their all-time record high of $1.875 on 13 November 2022.

On the final trading day of FY24, the Core Lithium share price closed at 9.35 cents. So, it’s not surprising that the stock was at the bottom of the ASX All Ords index for FY24.

The biggest news out of the company in FY24 was the suspension of mining at its flagship Finniss Project in the Northern Territory in January.

The company did this to conserve capital while lithium prices continued to fall. Since then, Core Lithium has continued analysing exploration results and processing stockpiled ore.

In the latest quarterly update, Core Lithium told investors its cash balance had reduced from $124.8 million at the end of December to $80.4 million at the end of March.

However, the company said it intended to sell an inventory of lithium concentrate and fines in 4Q FY24. At the time of the announcement, it valued the inventory at $25 million.

The post Guess which 2 ASX All Ordinaries shares were the best and worst performers of FY24? appeared first on The Motley Fool Australia.

More reading

• ASX lithium shares: Screaming bargains or falling knives?
• 5 ASX All Ords shares that rose 250% to 700% in FY24
• Which ASX lithium shares are financially primed to survive this rut?
• 9 ASX All Ords shares lifted to ‘strong buy’ consensus ratings in June
• Will FY25 be kinder to Core Lithium shares?

Motley Fool contributor Bronwyn Allen has positions in Core Lithium. 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.

DroneShield Ltd (ASX: DRO) shares have enjoyed one of the most euphoric share price runs of any stock in the All Ordinaries Index (ASX: XAO) over the past 12 months.

A year ago, Droneshield shares were going for just 24 cents apiece. But fast forward to today, and those same shares are worth an extraordinary $1.94. That translates into a 12-month share price gain of 710%.

The gains are even larger for longer-term investors of this ASX defence share.

If one had owned Droneshield stock since April of 2020, when this company was priced at just 10 cents a share, they would be looking at a four-and-a-bit-year gain of 1,840%.

This stunning run leaves Droneshield with a respectable market capitalisation of $1.53 billion today.

With this kind of market cap under Droneshield’s belt, many investors might be wondering why Droneshield shares aren’t in the exclusive S&P/ASX 200 Index (ASX: XJO) club. After all, the ASX 200 is supposed to represent the largest 200 companies listed on the Australian share market.

And with a market cap of $1.53 billion, Droneshield is now well within that range.

On the surface, it does look like Droneshield’s ASX 200 inclusion is well overdue.

This company is now double the size of some of the ASX 200’s smallest constituents. Take Strike Energy Ltd (ASX: STX). Strike shares only joined the ASX 200 in February of this year, replacing the now-taken-over Costa Group Holdings Ltd.  But today, Strike has a market capitalisation of just $643.7 million – less than half of Droneshield.

Another stock currently in the bottom realms of the ASX is Nanosonics Ltd (ASX: NAN). Nanosonics currently commands a market cap of $884.75 million. Yet it too finds itself in the ASX 200, whereas Droneshield shares do not.

So what’s going on here?

Why aren’t Droneshield shares in the ASX 200?

Well, the ASX 200 Index is a little more complicated than what investors might naturally assume. It is not simply a collection of the largest 200 shares on the Australian market. S&P Global, the company that manages most of the ASX’s indexes, lists several criteria for ASX 200 inclusion, of which market capitalisation is just one.

And even though a company’s market cap is an important factor, S&P Global doesn’t just automatically include a share when it reaches a certain market cap milestone in its next quarterly rebalancing.

Here’s what S&P Global says on that:

…the market capitalization criterion for stock inclusion is based upon the daily average market capitalization of a security over the last six months.

The ASX stock price history (last six months, adjusted for price- adjusting corporate actions), latest available shares on issue, and the Investable Weight Factor (IWF) are the relevant variables for the calculation.

Today, Droneshield’s market cap is 440% higher than it was six months ago, which is one possible reason it hasn’t yet found itself in the ASX 200 Index.

S&P Global also uses liquidity as a test for ASX 200 inclusion. And Droneshield is now a very liquid stock by ASX standards, with more than 10 million shares traded so far this Friday. So it’s likely that Droneshield’s liquidity isn’t a factor here.

But S&P Global also uses another selection criterion for ASX 200 inclusion which might explain Droneshield’s absence in the index:

In order to limit the level of index turnover, eligible non-constituent securities will generally only
be considered for index inclusion once a current constituent stock is excluded due to a sufficiently low rank and/or liquidity, based on the float-adjusted market capitalization.

Remember we discussed Strike Energy’s ASX 200 inclusion? Well, that only happened thanks to Costa Group leaving the index. It looks as though it’s not Droneshield’s attributes that are resulting in its index exclusion today, but the attributes of the other shares on the index.

Next time a share is taken off the ASX boards or fails to meet the index’s market capitalisation and liquidity requirements, it might be Droneshield shares’ best shot at becoming an ASX 200 share. But until that happens, we might not see this company within the index. Watch this space.

The post What will it take for DroneShield shares to enter the ASX 200? appeared first on The Motley Fool Australia.

More reading

• The best ASX 200 share of each market sector in FY24
• Why Boss Energy, DroneShield, Jumbo, and Raiz shares are falling today
• ‘Geopolitical risk is unlikely to subside’: Should you pile into ASX defence shares right now?
• 3 reasons to buy this ASX 200 share like there’s no tomorrow
• 5 ASX All Ords shares that rose 250% to 700% in FY24

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 DroneShield, Nanosonics, and S&P Global. The Motley Fool Australia has positions in and has recommended Nanosonics. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It has been another busy week for many of Australia’s top brokers. This has led to the release of a number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone right now:

CSL Ltd (ASX: CSL)

According to a note out of Macquarie, its analysts have retained their outperform rating and $330.00 price target on this biotherapeutics company’s shares. The broker has been looking at the US dollar and the impact it could have on CSL. And while it suspects that the greenback could act as an earnings headwind in the near term, it believes it will become a tailwind from FY 2026. Nevertheless, Macquarie doesn’t expect this to stop CSL from delivering double digits earnings growth over the next five years thanks to its plasma business. In light of this, the broker feels that the company’s shares are attractively price at current levels. The CSL share price is trading at $299.81 on Friday afternoon.

Premier Investments Limited (ASX: PMV)

A note out of Bell Potter reveals that its analysts have retained their buy rating and $35.00 price target on this retail conglomerate’s shares. The broker has been looking at the company’s proposed demerger of the Peter Alexander and Smiggle brands and the potential merger with Myer Holdings Ltd (ASX: MYR). It is very positive on both proposals. In respect to the former, the broker sees a lot of value emerging from the potential demerger of Premier Investments’ two key brands. Particularly given that it thinks they are global roll-out worthy. In light of this, Bell Potter notes that the company remains a key preference within the consumer discretionary sector. The Premier Investments share price is fetching $29.59 at the time of writing.

Suncorp Group Ltd (ASX: SUN)

Analysts at Morgan Stanley have retained their overweight rating on this insurance giant’s shares with an improved price target of $20.20. According to the note, the broker believes that Suncorp’s shares are being undervalued by the market. It highlights that they are trading at a material and unjustified discount to rival Insurance Australia Group Ltd (ASX: IAG). Especially given its higher quality earnings and strong car insurance businesses. As a result, the broker suspects that Suncorp’s shares could soon re-rate to higher multiples and close this gap. The Suncorp share price is trading at $16.86 this afternoon.

The post Brokers name 3 ASX shares to buy now appeared first on The Motley Fool Australia.

More reading

• What happened with the CSL share price in FY 2024?
• The best ASX 200 shares to buy when interest rates fall
• Broker upgrades CSL shares to ‘buy’ — could they hit $335?
• Buy this undervalued ASX 200 stock ahead of its demerger
• Australian dividend machines: 3 ASX shares that generate reliable passive income

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended CSL and Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares rose by 7.83% in FY24 (total returns of 12.1% including dividends).

The ASX 200 rose from a closing value of 7,203.3 points on the last trading day of FY23 to a closing value of 7,767.5 points on the last trading day of FY24.

The index fell from July to October last year before an early Santa Rally in November began amid speculation that interest rates would be cut in 2024 due to falling inflation.

There are 11 market sectors comprising the benchmark index.

Let’s take a look at which ASX 200 share was the top performer in each sector in FY24.

The best ASX 200 market sector shares in FY24

Based on 12-month stock price growth (not including dividends), these were the best ASX shares of each market sector in the last financial year.

Healthcare

Pro Medicus Limited (ASX: PME) shares were not only the healthcare sector’s best performers for price growth but also the top stock of the entire ASX 200 in FY24. 

The company delivered a 118.3% share price gain over the 12 months.

The Pro Medicus share price is $130.13 on Friday, up 0.56%.

Materials

In the materials sector, ASX 200 gold mining stock Red 5 Limited (ASX: RED) delivered 89.5% capital growth in FY24. The company was boosted by a rising gold price.

The ASX 200 gold miner is trading at 37 cents today, up 0.54%.

Energy

In the ASX 200 energy sector, uranium stock Deep Yellow Limited (ASX: DYL) soared by 77.5%.

The ASX 200 energy stock is trading at $1.41 today, down 0.35%.

Industrials

Diversified industrial and investment company Seven Group Holdings Ltd (ASX: SVW) was the No. 1 stock in the ASX 200 industrials sector with 52.9% capital growth in FY24.

The ASX 200 industrials share is trading at $36.05 today, down 4.07%.

Communications

Beep, beep! Car Group Limited (ASX: CAR) zoomed past its peers in the communications sector in FY24, racking up a 48% share price gain.

The ASX 200 communications stock is trading at $33.67 today, down 0.75%.

Technology

Social networking app developer Life360 Inc (ASX: 360) was the No 1. stock in the technology sector in FY24 with an outstanding 115.4% gain.

(Fun fact: The tech sector was the leader of the pack among the 11 sectors in FY24.)

The ASX 200 tech stock is trading at $15.87 today, up 0.063%.

Consumer discretionary

Budget jewellery retailer Lovisa Holdings Ltd (ASX: LOV) led the consumer discretionary stocks in FY24 with a 70.3% share price gain.

The ASX 200 retail stock is trading at $31.38 on Friday, up 1.26%.

Real estate & REITs

Goodman Group (ASX: GMG) soared in FY24 on the back of the artificial intelligence theme. With 73.1% share price growth, Goodman outperformed its real estate sector peers in FY24.

The ASX 200 property share is $35.35 on Friday, down 0.099%.

Consumer Staples

Bega Cheese Ltd (ASX: BGA) was the No. 1 consumer staples stock of the year in FY24. The Bega share price lifted 49.1% over the 12 months.

The ASX 200 consumer staples share is trading at $4.24 today, down 0.7%.

Financials

Diversified financial services company Hub24 Ltd (ASX: HUB) was the best ASX 200 financials stock of FY24, following an 82.9% surge in its share price.

Hub24 shares are trading at $46.67 today, down 0.66%.

Utilities

In the utilities sector, Origin Energy Ltd (ASX: ORG) was the No. 1 stock in FY24, with share price growth of 29.1%.

The ASX 200 utilities share is trading at $10.74 on Friday, up 0.47%.

The post The best ASX 200 share of each market sector in FY24 appeared first on The Motley Fool Australia.

More reading

• What will it take for DroneShield shares to enter the ASX 200?
• Here are the best ASX REITS of FY24 (a $66 billion company grew the most)
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• Best 3 ASX 200 healthcare shares for price growth in FY24
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor ass=”yoast-text-mark”>ass=”yoast-text-mark”>ef=”https://www.fool.com.au/author/TMFBronwyn/”>Bronwyn Allen has positions in Goodman Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Hub24, Life360, Lovisa, and Pro Medicus. The Motley Fool Australia has recommended Car Group, Goodman Group, Hub24, Lovisa, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With just a few hours of trade left in this first week of FY 2025, the S&P/ASX 200 Index (ASX: XJO) is up 0.8% with three ASX 200 stocks doing a lot of the heavy lifting.

Which companies are leading the benchmark higher in these early days of the new financial year?

Read on!

ASX 200 stocks at the top of the FY 2025 leaderboard

The third-best ASX 200 stock in the budding new financial year is Lynas Rare Earths Ltd (ASX: LYC).

Shares in the rare earths miner closed last Friday, the final trading day of FY 2024, at $5.93 apiece. In afternoon trade today, shares are swapping hands for $6.57.

That sees the Lynas share price up 10.8% over the week.

This strong performance is likely linked to the company’s 27 June announcement that its Lynas Malaysia business is aiming for first production of two separated heavy rare earths products in 2025.

The plant will produce separated dysprosium (Dy) and terbium (Tb), both critical elements in the high-performance rare earth permanent magnets found in numerous high-tech devices and EVs.

Moving on to the second-best ASX 200 stock performer in these early days of FY 2025, we have Magellan Financial Group Ltd (ASX: MFG).

Shares in the fund manager closed out FY 2024 trading for $8.42. At the time of writing, shares are changing hands for $9.39 apiece. That puts the Magellan share price up 11.5% over the week.

The Magellan share price closed in the green every day this week, and it looks set to do so again today.

The biggest boost for the ASX 200 stock came yesterday when the company updated the market on its funds under management. After experiencing net money outflows of $100 million in May, flows into and out of its funds were flat in June. Magellan is also set to pay out some $200 million in dividends in July.

Which brings as to the top-performing ASX 200 stock in this first week of the 2025 financial year, Whitehaven Coal Ltd (ASX: WHC).

Shares in the coal miner closed on 28 June trading for $7.65. At the time of writing, shares are trading for $8.96 apiece.

This sees the Whitehaven share price up a whopping 17.1% over the first week of FY 2025.

Whitehaven received some unexpected tailwinds this week alongside other ASX coal miners after Anglo American (LSE: AAL) was forced to suspend production at its Grosvenor coal mine in Queensland following an underground fire.

With an eye towards safety and significant fire damage likely within the mine, Anglo American said it expects coal production at the project to remain suspended for at least several months.

The post 3 high-flying ASX 200 stocks leading the charge into FY 2025 appeared first on The Motley Fool Australia.

More reading

• Why Clinuvel, Guzman y Gomez, Magellan, and Sandfire shares are charging higher
• Up 15% in a month: Are Magellan shares still cheap enough to buy?
• Top brokers agree that Lynas shares are ‘undervalued’
• Broker sees Whitehaven shares and one other coal stock as top buys
• Here are the top 10 ASX 200 shares today

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.

The Qantas Airways Ltd (ASX: QAN) share price encountered some turbulence in the financial year just past.

Shares in the S&P/ASX 200 Index (ASX: XJO) airline stock closed out FY 2023 trading for $6.20. On 28 June, the last trading day of FY 2024, shares ended the day trading for $5.85.

That saw the Qantas share price down 5.6% over the 12 months.

For some context, the ASX 200 gained 7.8% over this same period.

So, why did the Flying Kangaroo trail the benchmark index?

What happened with the Qantas share price in FY 2024?

The first month of FY 2024 started out strongly for the airline, with the Qantas share price up 7.9% at $6.69 on 24 July.

But not even the company’s blockbuster FY 2023 results, released on 24 August, could keep the stock from sinking all the way to $4.74 a share by 19 October,

Highlights of those results included a 118% year on year increase in revenue to $19.8 billion, with underlying profit before tax of $2.5 billion, roaring back from an FY 2022 loss. Qantas also announced a 500 million on-market share buyback on the day.

However, the strong performance was overshadowed by a steady stream of negative publicity.

That included allegations from the Australian Competition and Consumer Commission (ACCC) that Qantas sold tickets to flights that were already cancelled and the Federal Court ruling that the airline illegally fired 1,700 workers, outsourcing their jobs during the pandemic.

The Qantas share price also faced headwinds, with reports of lengthy flight delays and missing baggage. Investors were then caught off guard by CEO Alan Joyce’s earlier-than-expected departure on 5 September.

The airline’s new CEO, Vanessa Hudson, quickly rolled out plans to rebuild the company’s brand and regain customer trust.

A welcome updraft

The Qantas share price took a marked turn for the better in March, leaping 16.8% from 6 March through to the end of FY 2024.

The big turnaround came not long after the ASX 200 airline released its half-year results on 22 February.

Qantas reported $11.1 billion in revenue for the six months, up 12.3% year on year. And while underlying profit before tax declined by 12.8%, profits still came in at a solid $1.3 billion. Qantas also announced another $400 million on-market share buyback on the day.

As for the new financial year, the Qantas share price is up 2.6% as we near the end of the first trading week of FY 2025.

The post Why did the Qantas share price fly backwards in FY 2024? appeared first on The Motley Fool Australia.

More reading

• Why these losing ASX stocks could be a better buy than AI right now
• Are Qantas or ANZ shares a better buy?
• Qantas share price drops 3% amid Qatar rumours
• Qantas shares lift amid new investment in next-generation aircraft
• Can the Qantas share price keep flying higher in FY25?

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.

When it comes to growing your retirement savings, choosing between different investment options can be crucial.

One popular choice for Australians is the Vanguard Australian Shares Index ETF (ASX: VAS), known for its passive investment approach and low fees. But how does it stack up against your superannuation fund?

Vanguard Australian Shares Index ETF (ASX: VAS) performance

VAS is designed to track the performance of the S&P/ASX 300 Index (ASX: XKO), which includes Australia’s top 300 companies listed on the Australian Securities Exchange (ASX). It offers investors a diversified exposure to the Australian stock market, aiming to replicate its performance.

According to Vanguard, the ETF performances for each time period to 31 May 2024 have been as follows:

• 12.8% over the 12 months to 31 May 2024
• 6.5% per year over the 3 years to 31 May 2024
• 7.8% per year over the 5 years to 31 May 2024
• 7.7% per year over the 10 years to 31 May 2024

As designed, the VAS ETF returns closely follow S&P ASX 300 Index returns, which rose 8.04% per year over the last 10 years to June 2024. This annual return is split into the price return of 3.74% and income return of 4.3%.

I note the comparison period is different by one month, explaining slight differences in returns. But we can say that over a long period, say 10 years, the index fund generates an annual return of approximately 8%. This means your invested capital would double every nine years, assuming reinvestment of your dividends.

What’s the average investment return from super funds?

Before we make this comparison, it is important to remember that your superannuation fund, unlike the VAS ETF, may invest in assets beyond Australian shares, such as international stocks, bonds, property, and cash. Its performance will depend on the asset allocation strategy chosen by the fund managers.

For the purpose of this comparison, let’s simply assume a ‘balanced’ super fund.

According to Chant West, as my colleague Sebastian summarised, the average returns of the average Australian balanced fund (41%-60% of growth assets) were as follows:

• 9.4% over the 12 months to 31 May 2024
• 5.3% per year over the 3 years to 31 May 2024
• 6.7% per year over the 5 years to 31 May 2024
• 7.2% per year over the 10 years to 31 May 2024

The Association of Superannuation Funds of Australia (ASFA) provides estimates for all super funds based on historical data. While this data is only available to June 2023, ASFA believes that superannuation funds achieved average annual returns as follows:

• 9.2% over the 12 months to 30 June 2023
• 5.8% per year over the 5 years to 30 June 2023
• 7.4% per year over the 10 years to 30 June 2023

Making an informed decision

As reviewed above, a simple comparison based on performance history suggests the VAS ETF is doing slightly better than an average super fund.

After all, there’s a reason why legendary investor Warren Buffett advocates index investing. With that said, there are other things to consider before jumping to your conclusion.

• Performance history: Compare the annual returns of VAS with your super fund over the same period.
• Asset allocation: Understand how much of your super fund is allocated to Australian shares compared to other assets.
• Personal preferences: Evaluate whether you prefer a hands-on approach with ETF investments like VAS or rely on professional management through your super fund.

Overall, the VAS ETF appears to be a good place to consider for your retirement planning.

The VAS ETF is up 7.89% over the past year to $96.86.

The post Is the Vanguard Australian Shares Index ETF (VAS) outperforming your super fund? appeared first on The Motley Fool Australia.

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Motley Fool contributor Kate Lee 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.

The S&P/ASX 200 Index (ASX: XJO) appears to have run out of steam on Friday. In afternoon trade, the benchmark index is down slightly to 7,824 points.

Four ASX shares that are not letting that hold them back today are listed below. Here’s why they are racing higher on Friday:

Clinuvel Pharmaceuticals Limited (ASX: CUV)

The Clinuvel Pharmaceuticals share price is up 14% to $17.34. Investors have been buying this pharmaceuticals company’s shares following the release of an update on the CUV151 study. It is evaluating the DNA-repair capacity of afamelanotide on skin of healthy volunteers exposed to ultraviolet (UV) radiation. Chief scientific officer, Dr Dennis Wright, commented: “The results from RNA sequencing complement the earlier results we saw from immunohistochemistry, in that afamelanotide consistently seems to assist repair of UV-damaged DNA in the skin.”

Guzman Y Gomez Ltd (ASX: GYG)

The Guzman Y Gomez share price is up 4% to $27.78. It appears that some investors believe this quick service restaurant operator’s shares were oversold in recent sessions. One broker that thinks this is the case is Morgans. Earlier this week, the broker initiated coverage on the company’s shares with an add rating and $30.80 price target. This implies upside of almost 11% for investors.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is up a further 4% to $9.44. Investors have been buying this fund manager’s shares since the release of its monthly update on Thursday. Magellan revealed that net flows were flat in June. This comprised net retail outflows of $0.2 billion and net institutional inflows of $0.2 billion. The company also estimates that it will be entitled to performance fees of approximately $19 million for FY 2024. The market may be pleased but analysts at Macquarie weren’t impressed. The broekr retained its underperform rating and lowered its price target on its shares to $8.20.

Sandfire Resources Ltd (ASX: SFR)

The Sandfire Resources share price is up 1.5% to $9.21. This follows the release of an updated mineral resource estimate for its MATSA asset in Spain. The new estimate totals 172.8Mt at 1.3% copper, 2.8% zinc, 1.0% led and 38.6g/t silver. Sandfire’s CEO, Brendan Harris, said: “It’s pleasing to see the team at MATSA continue to build on our improved orebody knowledge. We have been successful in replacing mining depletion and are now seeing the beginnings of the resource and reserve growth potential we believe will be a key driver of value at MATSA.”

The post Why Clinuvel, Guzman y Gomez, Magellan, and Sandfire shares are charging higher appeared first on The Motley Fool Australia.

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• Inflows: Magellan shares spike 7% as institutions pile in

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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.