Category: Stock Market

ASX energy stocks led the ASX 200 market sectors last week with an impressive 4.07% gain over the five trading days. ASX materials shares also did well, with the sector lifting 3.3%.

Meantime, the S&P/ASX 200 Index (ASX: XJO) booked a 1.3% lift to finish the week at 7,822.3 points. However, only four of the 11 market sectors finished the week in the green.

Let’s review.

Energy shares led the ASX sectors last week

Among the major ASX 200 energy stocks, Santos Ltd (ASX: STO) outperformed with a 4.99% gain over the week to finish at $7.99 per share.

The stock was lifted by rumours that Saudi Aramco and Abu Dhabi National Oil Co were considering making takeover offers. Saudi Aramco debunked this on Friday.

Woodside Energy Group Ltd (ASX: WDS) shares gained 3.76% to finish at $29.26 on Friday. There was no news from Woodside last week but the stock has plenty of buy ratings from brokers right now.

Beach Energy Ltd (ASX: BPT) shares lifted 2.56% to $1.52 apiece.

These gains follow a lift in oil commodity prices last week. At the time of writing, Brent crude oil is up 2.6% for the week and trading at US$83.16 per barrel. WTI futures are up 2.7% at US$83.75 per barrel.

Trading Economics analysts say the uplift is due to falling crude oil inventories in the United States and signs of strong seasonal demand during the US summer.

Ampol Ltd (ASX: ALD) shares lifted 2.41% to $33.13 apiece. Viva Energy Group Ltd (ASX: VEA) lost 0.32% to close at $3.16 on Friday.

A 2.96% lift in Newcastle coal futures to US$136.50 per tonne led to some impressive gains among the ASX 200 coal shares last week.

Whitehaven Coal Ltd (ASX: WHC) flew 13.26% higher to close at $8.97 on Friday.

Yancoal Australia Ltd (ASX: YAL) lifted 9.24% to $7.33 per share. New Hope Corporation Ltd (ASX: NHC) shares lifted 1.01% to $5.02 apiece.

ASX 200 uranium stocks also had a good week after the commodity price lifted 2.51% to US$85.65 per pound.

Deep Yellow Limited (ASX: DYL) shares spiked 9.77% to $1.41 apiece by the close of trading on Friday.

The company announced the appointment of a coordinator to organise project financing for its flagship Tumas Project in Namibia last week.

Paladin Energy Ltd (ASX: PDN) shares rose 7.43% to $13.01.

Boss Energy Ltd (ASX: BOE) shares fell 2.18% to $3.82. Last week, the company announced it was ready to send its first shipment from its Honeymoon mine in South Australia to European nuclear utilities.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sector	Change last week
Energy (ASX: XEJ)	4.07%
Materials (ASX: XMJ)	3.3%
A-REIT (ASX: XPJ)	1.45%
Consumer Discretionary (ASX: XDJ)	0.22%
Healthcare (ASX: XHJ)	(0.06%)
Consumer Staples (ASX: XSJ)	(0.07%)
Communication (ASX: XTJ)	(0.4%)
Financials (ASX: XFJ)	(0.53%)
Industrials (ASX: XNJ)	(0.59%)
Information Technology (ASX: XIJ)	(1.08%)
Utilities (ASX: XUJ)	(1.19%)

The post Here’s how the ASX 200 market sectors stacked up last week appeared first on The Motley Fool Australia.

More reading

• 10 ASX shares to buy in FY25
• These top 3 ASX 200 uranium shares went nuclear in FY24
• Best 5 ASX 200 energy shares for price growth in FY24
• Here are the top 10 ASX 200 shares today
• What will it take for DroneShield shares to enter the ASX 200?

Motley Fool contributor Bronwyn Allen has positions in Woodside Energy Group. 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.

Late last month, we covered the latest dividend news from the VanEck Morningstar Wide Moat ETF (ASX: MOAT). MOAT’s investors would have been delighted with the announcement that this exchange-traded fund (ETF) intends to pay a dividend distribution of $9.73 per unit later this month.

Now the VanEck Wide Moat ETF only pays out one dividend distribution every year, unlike the biannual schedule that is the norm on the ASX. But even so, this latest dividend is a monster.

At market close on Friday, the MOAT unit price is sitting at $112.04, down 0.21%. At this pricing, this upcoming dividend distribution would result in a whopping dividend yield of 8.68%.

Now, this isn’t really a fair metric to use since the MOAT ETF already traded ex-dividend for this upcoming distribution on 1 July. But even if we use the closing share price of $124.47 (which is where MOAT units closed at on 30 June), we get a dividend yield of almost 8%. 7.82% to be precise.

This seems rather unusual at first glance. After all, the VanEck Wide Moat ETF isn’t some dividend-focused fund holding income heavyweight shares like Westpac Banking Corp (ASX: WBC) or Telstra Group Ltd (ASX: TLS).

It is a US-centric ETF that specialises in holding American companies with wide economic moats.

Sure, its holdings include a few dividend payers. You’ll currently find the likes of Pfizer, Campbell Soup, Altria and Starbucks in MOAT’s portfolio. But most of these shares don’t pay substantial dividends. At least by ASX standards. In fact, US stocks, in general, are famous for their low dividend income potential compared to other stock markets around the world.

So how did the MOAT ETF just pay out a near-8% dividend yield?

How does the Wide Moat ETF have such a massive ASX dividend?

Well, passing on the dividends of its underlying holdings is only one way that an ETF can fund a dividend distribution payment. The other way is by selling off shares in its portfolio and paying out the proceeds to investors.

The Wide Moat ETF is structured as an equal-weight ETF of sorts. This means that is it designed in such a way that all of MOAT’s holdings occupy the same weighting in the ETF. This is in contrast to most index funds. These funds usually give the larger shares in the portfolio a higher weighting.

Every time VanEck rebalances MOAT’s portfolio (typically every six months), it must sell off any shares that have appreciated since the last time the ETF was rebalanced, and thus grown above their allocated weighting in the fund’s portfolio.

Let’s assume that MOAT’s portfolio has had a successful six months. Which it has. In this scenario, we might find that a lot of portfolio pruning needs to be done to return its successful holdings to their required weighting.

Over the past six months, it appears that the VanEck Wide Moat ETF has experienced a significant increase in cash due to rebalancing. As a result, the ETF was able to use this surplus to fund a substantial dividend distribution.

But MOAT’s ASX investors shouldn’t get too comfortable with receiving such a large dividend paycheque. Sure, the VanEck Wide Moat ETF can make it rain when times are good. But if its holdings don’t perform too well going forward, those monstrous dividends will quickly dry up.

The post Does the VanEck Wide Moat ETF really have an 8% dividend yield? appeared first on The Motley Fool Australia.

More reading

• Buy and hold these ASX ETFs for 10 years+
• Why it’s a big day for ASX ETFs
• Own the VanEck Wide Moat ETF? Get ready for a monster ASX dividend
• $20,000 invested in the ASX MOAT ETF 5 years ago is worth how much?
• 2 of my favourite ASX ETFs for Australian investors

Motley Fool contributor Sebastian Bowen has positions in Altria Group, Starbucks, Telstra Group, and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pfizer and Starbucks. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Starbucks and VanEck Morningstar Wide Moat ETF. 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 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:

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 biotechnology company’s shares. Macquarie has been looking at the impact that the US dollar could have on CSL’s financial performance. Although the broker suspects that it could act as a drag on its earnings in the immediate term, it believes it will give its earnings a boost from FY 2026. In the meantime, Macquarie continues to forecast CSL delivering double digit earnings growth over the next five years. This is thanks largely to the strength of its key plasma therapies business. In light of this, its analysts think that the company’s shares are attractively price at current levels. The CSL share price ended the week at $299.75.

Guzman Y Gomez Ltd (ASX: GYG)

A note out of Morgans reveals that its analysts have initiated coverage on this Mexican food-focused quick service restaurant operator’s shares with an add rating and $30.80 price target. Morgans is feeling upbeat about Guzman Y Gomez despite its sky high valuation. This is due to its strong long term growth potential and operating leverage. The broker believes that the company can achieve its aspirational target of 1,000 restaurants in Australia in the future. This is based on the assumption that it opens 30-40 restaurants each year. The Guzman Y Gomez share price was fetching $27.75 at Friday’s close.

TechnologyOne Ltd (ASX: TNE)

Analysts at Goldman Sachs have reiterated their buy rating on this enterprise software provider’s shares with an improved price target of $19.70. According to the note, the broker believes that the company has a significant long term opportunity in the UK market. Its analysts estimate that the opportunity could be three times larger than in Australia in key sectors. And with TechnologyOne only currently having minimal penetration, it notes that this creates a significant long-term growth runway. Especially given its confidence that TechnologyOne could displace the market leader in the education market. In light of this and with its valuation looking attractive, the broker believes that now is the time to snap up this tech stock. The TechnologyOne share price ended the week at $18.29.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• Why I invested in Guzman Y Gomez (GYG) shares this week for the long-term
• GYG share price ends the week at $28. Is $62 in its future?
• Brokers name 3 ASX shares to buy now
• Why Clinuvel, Guzman y Gomez, Magellan, and Sandfire shares are charging higher
• Morgans names the best ASX stocks to buy in July

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

ASX 200 uranium shares continue to benefit from the world’s nuclear embrace as many countries work on figuring out their green energy mix for the future.

The United States and 20 other countries have announced plans to triple their nuclear power by 2050. More on that later. First, let’s check out these top-performing stocks.

These 3 ASX 200 uranium shares outperformed

Rising global demand for uranium pushed the commodity price higher in FY24. This supported ASX 200 uranium shares and kept their prices rising, even though they’d experienced a ramp-up in FY23.

Here are the three best-performing ASX uranium shares for capital growth in FY24, according to data from S & P Global Market Intelligence.

Deep Yellow Limited (ASX: DYL)

Deep Yellow was the best-performing uranium stock on the ASX 200 last financial year. The Deep Yellow share price soared by 77.5% in FY24. This followed a 26.8% share price gain in FY23.

The ASX 200 energy stock closed at $1.41 on Friday, down 0.71%.

Paladin Energy Ltd (ASX: PDN)

The second top-performing ASX 200 uranium stock in terms of share price growth was Paladin Energy. This is the biggest uranium company listed on the ASX. It has a market capitalisation of $3.93 billion.

The Paladin Energy share price rose 71% in FY24. This built on a 25.9% share price gain in FY23.

Paladin shares closed at $13.01 on Friday, down 1.21%.

Boss Energy Ltd (ASX: BOE)

Rounding out the top three ASX 200 uranium shares of FY24 is Boss Energy, up 33.2% over the 12 months. This capitalised on an impressive 75.2% share price gain in FY23.

Boss Energy shares finished the week at $3.85 apiece on Friday, down 5.41%.

What’s the latest news on nuclear energy?

According to Trading Economics, 58 nuclear reactors are currently being built, 22 of which are in China.

In May, United States President Joe Biden signed bipartisan legislation banning the importation of uranium products from Russia because of its invasion of Ukraine.

Russia has previously provided 35% of the country’s nuclear fuel imports, according to the US Department of Energy’s Office of Nuclear Energy.

Dr Michael Goff, Acting Assistant Secretary for the Office of Nuclear Energy, described the legislation as “marking a monumental shift for our civil nuclear energy sector”. 

Dr Goff said:

This ban is essential to strengthening our nation’s energy security and supports the development of uranium conversion and enrichment services right here in the United States that will result in thousands of new jobs for Americans across the country.

We’re restarting old reactors, building new ones, and working to deploy advanced reactors to help us meet our clean energy goals. 

Meantime in Australia, the debate over nuclear energy is raging.

The Coalition Federal Opposition is pushing a comprehensive nuclear energy plan that would see retired coal-fired power stations replaced with nuclear reactors owned by the government.

Meanwhile, the Labor Federal Government is pushing ahead with its renewables agenda.

The post These top 3 ASX 200 uranium shares went nuclear in FY24 appeared first on The Motley Fool Australia.

More reading

• Best 5 ASX 200 energy shares for price growth in FY24
• Here are the top 10 ASX 200 shares today
• What will it take for DroneShield shares to enter the ASX 200?
• The best ASX 200 share of each market sector in FY24
• Why Boss Energy, DroneShield, Jumbo, and Raiz shares are falling today

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.

Do you own Liontown Resources Ltd (ASX: LTR) shares? If you do, you will no doubt be aware that it won’t be long until Liontown shifts from being a lithium developer to a lithium miner.

The company is aiming to commence production in a matter of weeks. This means it could soon be generating revenue and maybe even some earnings.

But just how profitable could Liontown be in the current environment of low lithium prices? Let’s see what Goldman Sachs is forecasting for the miner through to FY 2029.

Liontown earnings estimates

Firstly, it is worth noting that Goldman is among the most bearish brokers when it comes to lithium prices. So, its earnings estimates could prove short of the mark if prices improve quicker than it expects.

Though, conversely, it is equally worth noting that the broker has been among the most accurate predictors of lithium prices in recent times. So, these forecasts could end up being more precise than others.

Moving on. In FY 2025, Goldman is forecasting total spodumene production of 146kt. This is expected to underpin revenue of $143 million but an underlying loss of $162 million.

In FY 2026, total spodumene production is expected to increase to 439kt. Goldman believes this will lead to revenue of $585 million and a maiden profit of $19 million.

It will be onwards and upwards for the lithium miner from there. In FY 2027, Goldman expects spodumene production of 510kt, revenue of $794 million, and underlying earnings of $108 million.

After which, in FY 2028, the broker is forecasting spodumene production of 578kt, revenue of $985 million, and underlying earnings of $152 million.

Finally, in FY 2029, Goldman expects total spodumene production of 658kt. From this, the broker is forecasting Liontown to generate revenue of $1,326 million and underlying earnings of $330 million.

In summary, Goldman expects the following for underlying earnings:

• FY 2025 – $162 million loss
• FY 2026 – $19 million profit
• FY 2027 – $108 million profit
• FY 2028 – $152 million profit
• FY 2029 – $330 million profit

Should you buy Liontown shares?

Goldman thinks investors should keep their powder dry for the time being. It has a neutral rating and $1.15 price target on Liontown’s shares.

While this implies potential upside of 25% for investors, it still isn’t enough for Goldman to be more positive. Though, it concedes there could be significant value on offer here when risks reduce. It commented:

Though perceived funding risks are largely alleviated, and cost/ramp up risks appear increasingly priced in, we rate LTR a Neutral on: 1) Valuation, where LTR is trading at a modest discount to peers, though with significant potential valuation uplift from de-risking/valuation roll-forward and a high valuation sensitivity to our LT lithium pricing; 2) Ramp up/cost risks increasingly priced in; 3) Strong medium-term capacity outlook from large, high quality resource.

The post Here’s the earnings forecast to 2029 for Liontown shares appeared first on The Motley Fool Australia.

More reading

• ASX lithium shares: Screaming bargains or falling knives?
• Why the Liontown share price could jump 25%+
• 5 things to watch on the ASX 200 on Thursday
• Which ASX lithium shares are financially primed to survive this rut?
• Top brokers name 3 ASX shares to buy 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 Goldman Sachs Group. 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 ASX mining share Rio Tinto Ltd (ASX: RIO) saw plenty of volatility over the 12 months ending 30 June 2024. Rio Tinto shares rose by 3.75%, while the S&P/ASX 200 Index (ASX: XJO) increased by 7.8%.

With China’s changing economic conditions, investors have had to accept an uncertain outlook for Rio Tinto shares.

The ASX mining share produces a number of commodities, including iron ore, copper and aluminium. Iron ore usually generates the lion’s share of the company’s earnings.

Things may be looking up for the miner after the iron ore price jumped to US$113 per tonne from around US$106 per tonne a week ago.

According to Trading Economics, there are hopes that China will introduce more stimulus measures at the upcoming Third Plenum this month and announce plans for “comprehensively deepening reform and advancing Chinese modernization.” A rising iron ore price supports the Rio Tinto share price.

The website said weak US data could also spur a rate cut, boost global demand, and support commodity prices.

Rio Tinto’s financial calendar follows the calendar year, while it was the Australian tax year that just finished. Let’s remind ourselves what Rio Tinto has reported during 2024 and what the earnings outlook is for the business.

Recent events

In February 2024, the business reported its 2023 full-year result.

It reported that operating cash flow dropped 6% to US$15.16 billion and free cash flow declined 15% to US$7.66 billion. Net profit after tax (NPAT) declined 19% to US$10 billion. In addition, the company cut the ordinary dividend by 12% to US$4.35 per share.

In mid-April, the business reported its 2024 first-quarter production result. This showed Pilbara iron ore production of 77.9mt, down 2% year over year and 11% lower than the fourth quarter.

Its first-quarter mined copper production was up 7% year over year to 156kt. Aluminium production was up 5% year over year to 826kt.

Outlook on Rio Tinto shares

The miner is working on a number of projects which could help future earnings.

It’s ramping up underground copper production at the Oyu Tolgoi mine in Mongolia. Rio Tinto and its partners are building a mine and 600km of new rail at the Simandou mine in Guinea (Africa) to unlock “incredibly high-grade iron ore,” which will “unlock low-carbon steel making.”

Finally, the Rincon lithium project in Argentina has seen progress in developing a small battery-grade lithium carbonate plant, where production is expected to start by the end of the year.

According to the estimates by the broker UBS, in FY24 Rio Tinto is expected to generate US$52.3 billion of revenue, NPAT of US$12.1 billion and pay a dividend per share of US$4.48. The balance sheet is projected to be in a net debt position of US$1.5 billion at the end of FY24.

In FY25, UBS predicts that Rio Tinto could generate US$52.5 billion of revenue, net profit of US$12.3 billion and pay a dividend per share of US$4.56. The balance sheet is projected to be in a net cash position of US$574 million at the end of FY25.

The post Are Rio Tinto shares worth digging into amid the miner’s FY25 outlook? appeared first on The Motley Fool Australia.

More reading

• Guess which ASX All Ords stock just received another $18 million investment from Rio Tinto
• What is the outlook for ASX 200 dividend shares in FY25?
• Rio Tinto share price marching higher amid $426 million ‘industry-leading’ step
• What this expert predicts will be the best-performing ASX sectors in FY25
• Buy Rio Tinto and these ASX dividend shares in July

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.

A new month is here, so what better time to consider making some new additions to your income portfolio.

Five ASX dividend shares that could be worth considering in July are listed below. Here’s what you need to know about them:

Aurizon Holdings Ltd (ASX: AZJ)

The first ASX dividend share for income investors to consider buying is Aurizon. It transports more than 250 million tonnes of Australian commodities each year through its rail network.

Ord Minnett is bullish on the company and has an accumulate rating and $4.70 price target on the company’s shares.

As for income, it is forecasting partially franked dividends of 17.8 cents per share in FY 2024 and then 24.3 cents per share in FY 2025. Based on the latest Aurizon share price of $3.60, this will mean dividend yields of 4.9% and 6.75%, respectively.

Centuria Industrial REIT (ASX: CIP)

Another ASX dividend share to look at is Centuria Industrial. It is Australia’s largest domestic pure play industrial property investment company.

UBS is a fan of the company and has a buy rating and $3.50 price target on its shares.

In respect to dividends, the broker is forecasting Centuria Industrial to pay dividends per share of 16 cents in both FY 2024 and in FY 2025. Based on the current Centuria Industrial share price of $3.04, this represents dividend yields of 5.25% in both years.

Super Retail Group Ltd (ASX: SUL)

A third ASX dividend share to look at is Super Retail. It is the retail conglomerate behind the BCF, Supercheap Auto, Macpac, and Rebel store brands.

Goldman Sachs is positive on the company and has a buy rating and $17.80 price target on its shares.

As for income, Goldman expects fully franked dividends per share of 67 cents in FY 2024 and 73 cents in FY 2025. Based on its current share price of $13.70, this will mean yields of 4.9% and 5.3%, respectively.

Transurban Group (ASX: TCL)

Analysts at UBS think that Transurban could be an ASX dividend share to buy this month.

The broker currently has a buy rating and $14.80 price target on its shares.

Its analysts are forecasting dividends per share of 63 cents in FY 2024 and 66 cents in FY 2025. Based on the current Transurban share price of $12.38, this will mean yields of 5.1% and 5.3%, respectively.

Universal Store Holdings Ltd (ASX: UNI)

A fifth and final ASX dividend share that could be a buy is Universal Store. It is the youth fashion retailer behind the Universal Store, Perfect Stranger, and Thrills brands.

Morgans is feeling bullish about the company and has an add rating and $6.50 price target on its shares.

As well as major upside, the broker believes Universal Store is well-placed to pay big dividends in the coming years. It expects fully franked dividends per share of 26 cents in FY 2024 and then 29 cents in FY 2025. Based on the current Universal Store share price of $4.82, this will mean yields of 5.4% and 6%, respectively.

The post 5 ASX dividend shares to buy next week appeared first on The Motley Fool Australia.

More reading

• Broker says these ASX shares can rise 25%+
• The best ASX 200 shares to buy when interest rates fall
• Is this the best dividend share in the ASX 200?
• 3 top ASX retirement shares to buy for FY25
• ASX passive income: How to make $1,000 per month

Motley Fool contributor James Mickleboro has positions in Universal Store. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Super Retail Group, and Transurban Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Aurizon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With the 2024 financial year fading into the background and FY 2025 stretching ahead, we turn our focus to what investors might expect from ASX gold shares.

As you may be aware, FY 2024 was a banner year for most gold miners, thanks to the surging gold price.

The yellow metal is currently fetching US$2,361 per ounce. That’s up almost 23% from the US$1,925 that same ounce was trading for this time last year.

Bullion’s strong performance has offered some heady tailwinds for ASX gold shares. In fact, Ora Banda Mining Ltd (ASX: OBM) rocketed 162% in 12 months amid strong gold exploration results, leaving the 8.3% gains posted by the All Ordinaries Index (ASX: XAO) far behind.

The rising gold price has also helped boost the performance of the big S&P/ASX 200 Index (ASX: XJO) gold producers like Northern Star Resources Ltd (ASX: NST), Newmont Corp (ASX: NEM), Gold Road Resources Ltd (ASX: GOR) and Evolution Mining Ltd (ASX: EVN).

But that’s the financial year just past.

Now, what can investors expect from ASX gold shares in the year ahead?

Will ASX gold shares outshine again in FY 2025?

Before we dive in, there are obviously many company-specific factors that will impact each individual ASX gold share. Those include variables like the weather in their mining locations, production levels, cost management, and how they progress with exploration and new project development.

But the price they receive for the yellow metal they dig from the ground is one factor that will impact every ASX gold share.

As for what we can expect from the gold price, we defer to the World Gold Council (WGC).

In their mid-year outlook report, the WGC noted, “Gold has thus far benefitted from continued central bank buying, Asian investment flows, resilient consumer demand, and a steady drumbeat of geopolitical uncertainty.”

Looking ahead to FY 2025, ASX gold shares may face steady prices.

“Current market trends indicate a rangebound performance from its current levels during H2… The global economy, as well as gold, seem to be waiting for a catalyst,” the WGC said.

The report pointed out that more than 40% of global gold demand stems from consumers.

As such, “The sharp upward trend in the gold price has dampened demand in some markets such as India and China. But positive economic growth can counteract some of this effect.”

What could drive the gold price higher?

The World Gold Council indicated a number of catalysts that could send the gold price higher in FY 2025 and support further gains for ASX gold shares.

According to the report:

For gold, we believe the catalyst could come from falling rates in developed markets, that attract Western investment flows, as well as continued support from global investors looking to hedge bubbling risks amid a complacent equity market and persistent geopolitical tensions.

Gold, which pays no yield itself, tends to perform better in low or falling interest rate environments.

Western retail investors have also largely been missing from the gold rally to date, with gold ETFs witnessing outflows.

The WGC said this “suggests that, unlike previous periods when gold broke record highs, the market is still not saturated and could see another leg up”.

Atop setting interest rates, central bank demand also has an important impact on the gold price, and by connection ASX gold shares.

“We estimate that [central bank demand] contributed at least 10% to gold’s performance in 2023 and potentially around 5% so far this year,” the WGC said. “Questions as to whether demand from the official sector may lose momentum. But we still expect central bank demand to remain above trend this year.”

And, while we hope global tensions ease in FY 2025, ASX gold shares would likely get a lift if geopolitical risks heat up.

According to the WGC report:

Geopolitical risk is particularly difficult to predict and may come from where it’s least expected. What is true, however, is that gold reacts to geopolitics, adding 2.5% for every 100-points the Geopolitical Risk (GPR) Index moves up.

The post Will ASX gold shares again outshine the market in FY 2025? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• 2 ASX gold shares going gangbusters (and one crashing 11%!)
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday

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.

I believe buy and hold investing is one of the best ways to grow your wealth.

This is because it allows you to leverage the power of compounding over time.

But don’t worry if you’re not a fan of stock-picking. That’s because exchange-traded funds (ETFs) are here to make life easier.

They allow you to buy large numbers of stocks in one fell swoop. This means you can diversify your portfolio almost instantly.

But which ASX ETFs could be great long term options? Let’s take a look at three that could be buys:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

When making long term investments, it is never a bad idea to buy the best companies you can get your hands on. The good news is that the BetaShares NASDAQ 100 ETF is home to many of the biggest and best companies that the world has to offer.

This hugely popular ASX ETF gives investors easy access to the 100 largest non-financial shares on the famous NASDAQ index. This is heavily, but not exclusively, focused on technology, with many household names among the ETF’s holdings. This includes Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA).

Over the last 10 years, the index the fund tracks has generated a return of 22.7% per annum.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another ASX ETF that could be a great buy and hold option is the VanEck Vectors Morningstar Wide Moat ETF.

Warren Buffett is a great investor to follow if you’re interested in making long term investments. His focus on investing in companies with sustainable competitive advantages (moats) and fair valuations has allowed him to smash the market for many, many decades.

The VanEck Vectors Morningstar Wide Moat ETF allows you to invest in this style by putting together a group of shares that have the exact qualities that Buffett looks for when making investments.

And just like Buffett, this ETF has delivered great returns. The index the ETF tracks has achieved an average return of 16.7% per annum over the past 10 years.

Vanguard Australian Shares Index ETF (ASX: VAS)

Finally, if you want to invest locally, then the Vanguard Australian Shares Index ETF could be a great option.

This ETF allows you to buy a slice of the companies included in the ASX 300 index. These are Australia’s leading 300 listed companies and include names from all sides of the market.

Among its holdings are companies as diverse as BHP Group Ltd (ASX: BHP), Lovisa Holdings Ltd (ASX: LOV), Macquarie Group Ltd (ASX: MQG), and Woodside Energy Group Ltd (ASX: WDS).

Over the last 10 years, it has achieved a return of approximately 8% per annum.

The post Buy and hold these ASX ETFs for 10 years+ appeared first on The Motley Fool Australia.

More reading

• Can the BetaShares Nasdaq 100 ETF (NDQ) give ASX investors another 32% in FY25?
• Top ASX shares to buy for FY25
• Is the Vanguard Australian Shares Index ETF (VAS) outperforming your super fund?
• ASX NASDAQ (NDQ) ETF: Up 30% in a year, should you buy now or wait?
• Buy these market-beating ASX ETFs in FY25

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF, Lovisa, and Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Nasdaq 100 ETF, Lovisa, Macquarie Group, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF and Macquarie Group. The Motley Fool Australia has recommended Apple, Lovisa, Microsoft, Nvidia, and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

By all accounts, the 2024 financial year that has just passed us by was a very successful one for ASX shares on the whole. Between the start of July 2023 and the end of June 2024, the S&P/ASX 200 Index (ASX: XJO) rose by a healthy 7.8%. If you include dividend returns, that gain stretches to around 12%.

But let’s talk about how the BetaShares Nasdaq 100 ETF (ASX: NDQ) went.

The ASX 200 might have had a very strong year indeed over FY24. But the Betashares Nasdaq 100 exchange-traded fund (ETF) made it look silly, if we’re to be frank.

NDQ units started FY24 priced at $35.05 each. But by the end of last month, those units finished up the financial year at $45.51. That’s a gain worth 29.84%. If we include the value of the dividend distributions the ASX’s NDQ investors enjoyed over the 12 months to 30 June, that return stretches to roughly 32.1%.

Not a bad effort for just one year of waiting. That kind of return is astonishingly good. There aren’t too many investors that could have replicated it in their own portfolios, that’s for sure.

As the Betashares Nasdaq 100 ETF is mostly made up of the United States’ most prominent tech stocks, it’s not too difficult to see where these huge returns come from. To illustrate, the five largest positions in the NDQ portfolio are (in order) Microsoft, Apple, NVIDIA, Alphabet and Broadcom.

• Microsoft shares rose 31.25% over FY24.
• Apple shares were up 8.58%.
• Nvidia stock shot up a whopping 192%.
• Alphabet’s Class A shares enjoyed a 52.17% bounce over the year.
• And Broadcom shares rocketed 85%.

Together, these five stocks account for 35.1% of NDQ’s entire portfolio by weighting. So, with gains rolling out from these top five, NDQ units were always going to have a veritable party over FY24.

But what about FY25?

Can the NDQ ETF bring home another 32% for ASX investors in FY25?

Well, that’s the million-dollar question. Normally, it would be prudent to state that a 30% gain from any investment, but particularly an index fund, is more likely to be one-off than a guide to future returns. As we stated earlier, a 30% gain is a rare feat in any stock market.

Additionally, it’s also worth stating that past returns are never a guarantee of future prosperity with any investment.

Saying that though, the BetaShares Nasdaq 100 ETF does have a long track record of delivering massive returns. As of 28 June, NDQ units have returned an average of 22.24% per annum over the past five years and 20.04% per annum since the ETF’s ASX inception in 2015.

This ETF’s holdings are indisputably some of the best and most exciting companies in the world. So, I wouldn’t be surprised if investors continued to enjoy meaningful gains from NDQ units.

However, that doesn’t make buying this ETF today a sure thing. Like FY24 before it, the Betashares Nasdaq 100 ETF’s FY25 will be made or broken by the performance of its top holdings.

If the US economy remains strong, global geopolitical tensions don’t rise any further, and the presidential election in November goes relatively smoothly, then there’s a decent chance that NDQ’s top holdings (and thus the ETF itself) will have another successful year this financial year.

But that is a lot of ifs. If one or more of these factors turns sour, the Betashares Nasdaq 100 ETF could well take a major haircut in FY25.

Who knows how the NDQ ETF will fare on the ASX in FY25? Whatever happens, it will be well worth watching.

The post Can the BetaShares Nasdaq 100 ETF (NDQ) give ASX investors another 32% in FY25? appeared first on The Motley Fool Australia.

More reading

• Top ASX shares to buy for FY25
• ASX NASDAQ (NDQ) ETF: Up 30% in a year, should you buy now or wait?
• Buy these market-beating ASX ETFs in FY25
• Top ASX shares to buy in July 2024
• Could these be the best ASX tech ETFs to buy for FY25?

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Apple, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Apple, BetaShares Nasdaq 100 ETF, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.