Are you looking for ASX 200 dividend shares to buy? If you are, you may want to check out the two listed below that Goldman Sachs has tipped to provide attractive yields.

Here’s what you need to know about these ASX dividend shares today:

Elders Ltd (ASX: ELD)

The first ASX 200 dividend share that Goldman rates as a buy is agribusiness company, Elders.

Its analysts are very positive on the company’s outlook and feel that recent weakness has created a buying opportunity for investors. Particularly given its belief that “the fundamentals of this company remain unchanged, and strong” and that “ELD is very well positioned to grow through the cycle.”

The broker currently has a buy rating and $13.20 price target on the company’s shares at present.

As for dividends, Goldman is forecasting fully franked dividends per share of 47 cents in FY 2023 and 52 cents in FY 2024. Based on the current Elders share price of $8.39, this will mean yields of 5.6% and 6.2%, respectively.

Westpac Banking Corp (ASX: WBC)

Another ASX 200 dividend share that has been named as a buy by Goldman Sachs is banking giant Westpac.

Its analysts highlight that “while NIM pressures are accelerating across the sector, WBC’s shorter-duration replicating portfolio, and current balance sheet performance, should see its NIM outperform peers.”

The broker currently has a conviction buy rating and $25.86 price target of the banking giant’s shares. This compares very favourably to the latest Westpac share price of $22.25.

In addition, it is forecasting some very attractive fully franked dividend yields in the coming years.

For example, Goldman Sachs expects fully franked dividends of 144 cents per share in FY 2023 and then 150 cents per share in FY 2024. This equates to yields of 6.5% and 6.75%, respectively.

The post Goldman Sachs says buy these ASX 200 shares for passive income appeared first on The Motley Fool Australia.

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More reading

• Lowest ASX bank yield: Are CBA shares still worth it?
• Building wealth through dividend investing: 5 ASX shares to boost your income
• Brokers name 3 ASX shares to buy now
• Can Westpac shares really deliver 15% upside AND a 6% dividend yield?
• These are the best ASX 200 bank shares to buy: brokers

Motley Fool contributor James Mickleboro has positions in Westpac Banking. 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 Elders and Westpac Banking. 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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Commonwealth Bank of Australia (ASX: CBA) shares have been one of the ASX’s most popular constituents ever since the bank was privatised in the 1900s. Today, CBA is the undisputed king of the pile when it comes to ASX 200 bank shares.

With its market capitalisation of almost $170 billion, only BHP Group Ltd (ASX: BHP) can boast of beating CBA when it comes to Australia’s largest listed company.

But one thing stands out when comparing CBA to its fellow ASX 200 bank shares. And it’s the first metric most ASX investors look at when analysing an ASX bank: the dividend yield.

Right now, CBA shares have a trailing dividend yield of 4.2%. That’s fully franked, of course. This yield stems from CBA’s last two dividend payments, which together came to $2.10 per share.

Now 4.2% is nothing to turn one’s nose up against, of course. But it is decidedly on the smaller end of the ASX financial sector yield curve.

For instance, the next ASX 200 bank on the scale is National Australia Bank Ltd (ASX: NAB). It currently offers a dividend yield of 5.24%. Westpac Banking Corp (ASX: WBC) stands at 5.62%, while ANZ Group Holdings Ltd (ASX: ANZ) is sitting at a meaty 6%.

Outside the big four, things get even more interesting still. Bendigo and Adelaide Bank Ltd (ASX: BEN) currently has a trailing yield of 6.36%. And Bank of Queensland Ltd (ASX: BOQ) is sitting on a whopping 7.31% (although this might be in jeopardy).

All in All, CBA’s yield looks a little diminutive compared to all of its peers.

So with that in mind, should ASX investors even bother with CBA shares right now?

Are small-yield CBA shares still a buy today?

Yesterday, the CBA share price closed at $100.11.

As my Fool colleague Bronwyn comprehensively covered last week, that sits fairly close to what the majority of ASX brokers reckon the shares will be in a year’s time.

ASX broker UBS currently has a neutral rating on the CBA share price, with a 12-month price target of $100. Morgans is even less optimistic, with a target of just $96.11.

So not a lot of enthusiasm for CBA from ASX brokers right now.

In fact, many brokers are recommending investors go with one of CBA’s big four stablemates. UBS is buy-rated on ANZ shares at the moment, with a $25 share price target instead.

Morgans prefers Westpac and has an add rating on those shares, with a share price target of $25.80. Whereas fellow ASX broker Goldman Sachs picks NAB as its favourite, with a buy rating and a $35.42 share price target.

Not too many ASX experts appear to like the CBA share price right now. But only time will tell whose picks prove to be on the money. 

The post Lowest ASX bank yield: Are CBA shares still worth it? appeared first on The Motley Fool Australia.

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More reading

• Leading brokers name 3 ASX shares to buy today
• Why BHP, InvoCare, Lake Resources, and South32 shares are dropping today
• Better ASX blue-chip share to buy for safe returns: CBA vs. Telstra
• Are Bank of Queensland shares a buy following the latest results?
• Are BHP shares a buy following the ASX 200 miner’s latest update?

Motley Fool contributor Sebastian Bowen has positions in National Australia Bank. 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 positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool Australia has recommended Westpac Banking. 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 so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Bapcor Ltd (ASX: BAP)

According to a note out of Ord Minnett, its analysts have retained their buy rating and $8.40 price target on this auto parts company. The broker has been looking at the recent results of rival Genuine Parts, which owns Repco, and believes it points to strong trading conditions for Bapcor. Particularly given that Genuine Parts revealed that its strong quarter was not driven by promotions or discounts. The Bapcor share price was trading at $6.66 at Monday’s close.

BHP Group Ltd (ASX: BHP)

A note out of Macquarie reveals that its analysts have retained their outperform rating on this mining giant’s shares with a trimmed price target of $52.00. Macquarie felt that BHP’s quarterly update was a touch on the mixed side. Iron ore and metallurgical coal were strong, but copper and nickel were soft. Nevertheless, the broker still sees plenty of value in its shares and expects the OZ Minerals acquisition to give its copper operations a major boost. The BHP share price was fetching $44.17 yesterday.

Whitehaven Coal Ltd (ASX: WHC)

Analysts at Morgans have retained their add rating on this coal miner’s shares with a slightly lowered price target of $9.60. Morgans believes that all the bad news is now priced into Whitehaven Coal shares, making this a very attractive buying opportunity for investors. Particularly given its expectation for 8% dividend yields this year and next. The Whitehaven Coal share price closed yesterday’s session at $7.22.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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More reading

• Why BHP, InvoCare, Lake Resources, and South32 shares are dropping today
• Are BHP shares a buy following the ASX 200 miner’s latest update?
• 5 things to watch on the ASX 200 on Monday
• What is this broker saying about the BHP share price following the miner’s update?
• Here are the top 10 ASX 200 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Corporate Travel Management. 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 iShares S&P 500 ETF (ASX: IVV) is one of the largest exchange-traded funds (ETF) on the ASX and offers plenty of the things that investors might look for. But, is this a good option for dividend passive income?

For readers that don’t know what the ETF does, it provides investors exposure to the US share market. It is invested in 500 of the largest and most profitable businesses in the US.

The provider of the ETF, Blackrock, charges a management fee of just 0.04%. That enables investors to receive almost all of the returns as net returns. Some active fund managers can charge quite substantial fees which reduces the net returns.

Which US stocks does it own?  

The ETF is invested in many of the world’s strongest and most recognised businesses.

We’re talking about global juggernauts including Apple, Microsoft, Amazon.com, Nvidia, Alphabet, Berkshire Hathaway, Tesla, Meta Platforms¸ Exxon Mobil, Johnson & Johnson, Visa, Procter & Gamble, Mastercard, PepsiCo, Coca-Cola, Pfizer, Costco, McDonald’s and Walmart.

While all of these businesses are listed in the US, I think it’s important to recognise that they generate their earnings globally. But, iShares S&P 500 ETF could be a better way to get exposure to regions like Asia and South America than owning businesses from those regions because the businesses within the ETF are extremely strong.

I think these US stocks are great.

But, we need to remember the way that an ETF acts as a trust structure means that all of the dividends they receive are passed onto investors of the ETF’s units. So, the ETF’s underlying dividend yield is influenced by the dividend yield of the businesses.

The distributions from iShares S&P 500 ETF can be boosted by capital gains within the portfolio if there are any sales that made a profit.

But, fundamentally, the passive income of an ETF relates to the dividend yields of the businesses involved.

Is the dividend yield of iShares S&P 500 ETF good for passive income?

The long-term return of the ETF has been very good as these businesses have grown earnings and re-invested a healthy amount of that profit back into more growth.

Some of the biggest businesses don’t pay a dividend at all, such as Amazon.com, Alphabet and Berkshire Hathaway.

Most of the US businesses that I mentioned above don’t typically have a high dividend payout ratio, and most of them have a relatively high price/earnings (P/E) ratio, so the dividend yield for those businesses is lower.

This results in the iShares S&P 500 ETF having a relatively low dividend yield. According to Blackrock, the 12-month trailing dividend yield as at 31 March 2023 was 1.31%.

So, while I think the ETF offers investors plenty of positives, the passive dividend income is not one of the standouts at all. It would probably be better to go for ASX dividend shares for income-seeking investors.

The post I’m a dividend investor. Should I buy the iShares S&P 500 ETF (IVV)? appeared first on The Motley Fool Australia.

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• Should I invest in the ASX 200 or the S&P 500?
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• The cheapest index fund on the ASX revealed

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison 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 Alphabet, Amazon.com, Apple, Berkshire Hathaway, Costco Wholesale, Mastercard, Meta Platforms, Microsoft, Nvidia, Pfizer, Tesla, Visa, and Walmart. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and has recommended the following options: long January 2024 $47.50 calls on Coca-Cola, long January 2025 $370 calls on Mastercard, and short January 2025 $380 calls on Mastercard. The Motley Fool Australia has recommended Alphabet, Amazon.com, Apple, Berkshire Hathaway, Mastercard, Meta Platforms, Nvidia, and iShares 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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A world leader in its field and an 18% rise in the share price already this year.

Sounds pretty good, right? According to multiple experts, it’s still not too late to catch some of that sweet action from Brambles Limited (ASX: BXB).

Wilson Asset Management equity analyst Anna Milne said that the pallet provider is truly an international business.

“Brambles operates in approximately 60 countries with around 360 million pallets, crates and containers in operation.”

She is bullish on the S&P/ASX 200 Index (ASX: XJO) stock after a recent visit to Europe.

“Recent channel checks on an investor trip in London suggest momentum in the business has continued, while opportunities for step-changes in efficiencies should drive growth over the medium term.”

Brambles is reaching a Sliding Doors moment

Milne recognised that in the past the company had struggled to generate positive cash flow. But it could be turning a corner.

“We believe Brambles is nearing an inflection point,” she said in a memo to clients.

“Customer contracts are being repriced significantly higher, lumber pricing has retreated from record levels, customer slowdowns and destocking have been limited in nature and competitors are behaving rationally.”

This change is the potential positive catalyst coming up despite already a steep rise in the share price this year.

“With sentiment towards the name still broadly negative, we don’t expect the stock to reach its full potential until this free cash flow recovery story is confirmed through its reported earnings.”

It’s not just 2023 that the Brambles share price has been climbing. The stock is almost 30% higher than where it was 12 months ago. 

IML portfolio manager Daniel Moore agrees with Milne, last week naming Brambles as one of the hot stocks that can thrive in a high inflation climate.

He said that it and other ASX 200 stocks that are going gangbusters have a couple of attributes in common.

“All those businesses are market leaders,” said Moore.

“And they’re all managing this inflationary environment very well, either exercising pricing power or managing their costs or winning market shares.”

The post ‘Nearing inflection point’: The ASX 200 stock that Wilson’s backing to go to the moon appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 shares making big moves following quarterly updates
• 4 ASX 200 shares going gangbusters in high inflation (and what they have in common)
• Blue chip beat-down: 5 huge ASX 200 shares cementing new 52-week highs today
• Fundie loves these 2 ASX 200 shares that are ‘difficult to replicate’
• 3 ASX 200 shares cracking multi-year highs on Tuesday

Motley Fool contributor Tony Yoo 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 exchange-traded fund (ETF) Vanguard MSCI Index International Shares ETF (ASX: VGS) could be one of the top picks for a beginner investor to think about investing in.

Firstly, I think for most beginners, ETFs would be well-suited for their portfolio because of how easy they make it to track and achieve performance over the share market if the ETF tracks an index.

Certainly, I think that Aussie investors can do well with ASX shares, but it’s also a good idea to get exposure to international shares. After all, they represent 98% of the global share market while the ASX is only 2%.

There are a few different ways to get exposure to international shares, but the ETF style of investing makes it very easy.

The idea of the Vanguard MSCI Index International Shares ETF is that it invests in the global share market, specifically major developed markets.

Here are three reasons why it could be a smart choice for beginner investors.

Diversification

The ETF has an extremely large number of businesses in its portfolio, offering very strong diversification. At 31 March 2023, it had 1,472 holdings. That’s close to 1,000 more positions in the portfolio than the number of businesses in the All Ordinaries (ASX: XAO).

I think it lowers the specific business risk of the ETF.

Another element of the diversification is that the allocations are spread around different sectors, and I like the position of IT getting the biggest weighting of 20.8% as at 31 March 2023. The financials allocation was 14.6%, healthcare was 13.4%, industrials was 11.1%, and consumer discretionary was 10.7%.

Finally, I like the geographic diversification of the ETF. While many of these businesses do generate their profit from across the world, I think it’s wise diversification to be invested in different markets.

The following markets have a weighting of at least 0.5% – the US, Japan, the UK, France, Canada, Switzerland, Germany, the Netherlands, Sweden, Denmark, Spain, Hong Kong, and Italy.

Quality holdings and performance

Vanguard MSCI Index International Shares ETF owns many of the world’s strongest businesses in its portfolio, which can help its overall returns.

As of 31 March 2023, the ten biggest positions were: Apple, Microsoft, Alphabet, Amazon.com, Nvidia, Tesla, Meta Platforms, Exxon Mobil, UnitedHealth, and Johnson & Johnson.

The portfolio has performed soundly over the long term. In the five years to 31 March 2023, the ETF has produced an average return per annum of 11.1%. That’s a good return for beginner investors to compound their wealth. However, keep in mind that past performance is not a reliable indicator of future performance.

Low fees

One of the most advantageous things about having Vanguard as the ETF provider is that it tries to provide investment options for as cheaply as possible.

The lower the fees, the more the returns are left in the hands of (beginner) investors. Over a long time period, this can really add to wealth-building efforts.

The Vanguard MSCI Index International Shares ETF has an annual management fee of 0.18%. While there are ETFs with cheaper fees, there are few options that provide that diversification in terms of both the geographic spread of the holdings and how many businesses they’re invested in.

The post 3 reasons why the Vanguard MSCI Index International Shares ETF (VGS) could be an excellent investment for beginners appeared first on The Motley Fool Australia.

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More reading

• 3 quality ASX ETFs for investors to buy for the long term
• No savings at 40? I’d invest $5 a day in ASX shares for passive income of $7,800 a year
• I think the Vanguard MCSI Index International Shares ETF (VGS) is a no-brainer diversification buy. Here’s why
• 3 ETFs that could be top buys right now
• 2 of the best ETFs for ASX investors to buy this month

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison 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 Alphabet, Apple, Meta Platforms, Microsoft, Nvidia, Tesla, and Vanguard Msci Index International Shares ETF. The Motley Fool Australia has recommended Alphabet, Apple, Meta Platforms, Nvidia, and Vanguard Msci Index International Shares 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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The AMP Ltd (ASX: AMP) share price has recovered 16% since hitting its 2023 low amid improvements in its banking and wealth management operations. Stock in the 174-year-old company last traded at $1.14.

Could the turn-around be permanent or is the previously embattled S&P/ASX 200 Index (ASX: XJO) stock destined to tumble once more? Let’s take a look.

AMP shares back in the green

The AMP share price has been on the up and up in recent months. Here’s an overview of how it’s been performing:

Length of time	AMP share price performance
One week	+3.6%
One month	+7.5%
One year	+10.7%

Though, it’s been a volatile ride. The stock recently plummeted 28% from its February high to its March low. It’s also still more than 70% lower than it was five years ago when it was beginning to battle backlash from the Hayne Royal Commission.

The AMP share price has recently been bolstered by the company’s latest quarterly bank, assets under management (AUM), and cash flows update.

AMP Bank saw its loan book grow $200 million last quarter, while its Australia Wealth Management business’ AUM lifted $2 billion, and its cash outflows improved 30% to $600 million.

It also recently returned to dividend following a two-year hiatus and offloaded the majority of its remaining stake in Collimate Capital.  

Does AMP look cheap?

But all that doesn’t mean much if AMP shares are still trading above the company’s true value. One way to assess if that might be the case is by diving into its fundamentals.

AMP’s actual earnings per share (EPS) came in at 12 cents for financial year 2022. That gives it a 9.5 price-to-earnings (P/E) ratio.

That compares favourably against many of its peers. Though, it’s certainly not unheard of. For instance, Bank of Queensland Ltd (ASX: BOQ) shares currently boast an 8.34 P/E ratio, according to CommSec data.

It also declared a 2.5 cent per share dividend in February. If it backs that up in its half-year results, the stock will boast a 4.38% dividend yield at its current share price – that’s decent, but a touch below the ASX 200’s average of 4.58% according to S&P Global.

Finally, AMP offers a 0.84 price-to-book (P/B) ratio right now, per CommSec data. Again, that’s a respectable ratio. However, it’s similar to those offered by some of its peers, as my Fool colleague Bronwyn recently discussed.

What do experts think?

So, AMP shares do look like decent value in some respects – but arguably not by an enormous margin. Meanwhile, one top broker is sceptical of the company’s future.

UBS was disappointed by AMP’s recent quarterly results, The Australian reports. It said the company’s wealth management and banking businesses both missed its forecasts for the period.

As a result, it maintained its sell rating and a $1 price target on AMP shares – representing a potential 12% downside.

The post AMP shares are finally heading upwards, but will it last? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why AMP, EML, Pilbara Minerals, and Telix shares are racing higher today
• AMP share price marching higher as net outflows ebb
• Are these ASX All Ords shares ready to buy at fundamentally fire sale prices?
• Why has the AMP share price rocketed 11% in a month?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 CSL Limited (ASX: CSL) share price has been a staple of the S&P/ASX 200 Index (ASX: XJO) for decades now. In fact, CSL has spent its time over the past decade or so climbing up from the middle of the ASX 200 pack to the number three position on the Index that it now occupies.

But unlike its fellow top ASX 200 shares, such as BHP Group Ltd (ASX: BHP) or the big four banks, CSL has never been regarded as a dividend heavyweight. 

A quick look at the CSL share price today will probably tell you why. Right now, CSL has a trailing dividend yield of just 1.11%. That only comes partially franked too.

In stark contrast, BHP shares currently offer a fully-franked trailing yield of 8.86% right now. Commonwealth Bank of Australia (ASX: CBA) is at a fully-franked 4.2%, while Westpac Banking Corp (ASX: WBC) offers 5.62%.

So dividend-chasing income investors probably won’t take too long in deciding which shares to have in their portfolios. But those investors might want to take a second look because all is not quite as it seems at first glance. 

Yes, you won’t get as much dividend income upfront buying CSL shares as you would BHP or one of the big four banks. But CSL could well be a sleeping divided giant and one whose dividends might approach, or even exceed, the level of income offered by ASX’s other heavyweights in just a few years.

Here’s why.

Why the CSL share price could be a sleeping dividend giant

CSL first started paying its investors dividends back in 2013. The company’s very first dividend payment was a final dividend worth 52 US cents per share. In 2014, the company doled out annual dividend payments worth US$1.13 per share.

But just five years later in 2019, CSL was up to paying out US$1.85 in dividends per share. By 2022, this had risen again to a total of US$2.22 per share.

In US dollar terms, CSL has consistently raised its annual dividend every single year since 2013. Because of currency exchange rates, we can’t say the same for its dividends in Aussie dollar terms. But the trend is clear.

In 2023 so far, this trend has continued too. The interim dividend that investors received only earlier this month came in at US$1.07 per share. That was a significant hike over 2022’s corresponding payment of US$1.04 per share.

Between 2014 and 2022, CSL’s annual dividend rocketed by a cumulative 96.5%. If CSL’s dividends keep rising at this level over the next eight years, investors will be bagging US$4.36 in dividends per share by the year 2030. That’s $6.54 per share in Australian dollars at the current exchange rate.

If that were to occur (which is by no means guaranteed), it would be highly lucrative for long-term investors, and would finally make CSL an ASX dividend heavyweight.

So this just proves that you can’t judge an ASX divided share by the yield on its cover. By the time the ‘sleeping giant’ awakens, it might be too late to nab the shares at a good share price.

 

The post The CSL share price is a sleeping dividend giant. Here’s why appeared first on The Motley Fool Australia.

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More reading

• Which stocks does Warren Buffett own (and what can ASX 200 investors learn from this)?
• CSL shares dip despite new FDA approval
• What are analysts saying about the CSL share price?
• Invested $6,000 in CSL shares 5 years ago? Here’s how much dividend income you’ve earned
• Morgans says these are among the best blue chip ASX 200 shares you can 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 CSL. The Motley Fool Australia has recommended Westpac Banking. 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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Are you looking to add some exchange traded funds (ETFs) to your portfolio? If you are, then you might want to look at the three listed below.

Here’s what you need to know about these quality ASX shares:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF that could be a top long term option is the BetaShares Asia Technology Tigers ETF. It tracks the performance of the largest technology companies in Asia (excluding Japan). Among the ETF’s largest holdings are giants such as Alibaba, JD.com, Pinduoduo, Samsung, Taiwan Semiconductor, and Tencent Holdings. These companies are some of the fastest growing in the region and revolutionising the lives of billions of people.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Another ETF for investors to look at as a long-term investment is the BetaShares Global Cybersecurity ETF. It provides investors with the opportunity to invest in the growing cybersecurity sector. This means you’ll be buying sector-leading companies such as Accenture, Cisco, Cloudflare, Crowdstrike, Fortinet, Okta, Palo Alto Networks, Splunk, and Zscaler. And given how the threat of cyberattacks is growing globally, these companies look well-placed to benefit from increasing demand for cybersecurity services.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF for investors to consider buying is the Vanguard MSCI Index International Shares ETF. This ETF gives investors exposure to over 1,000 of the world’s largest listed companies. This provides investors with significant diversity, as well as the benefits of long-term global economic growth. Among the many companies that you’ll be investing in are giants such as Amazon, Apple, Johnson & Johnson, JP Morgan, Nestle, Procter & Gamble, and Visa.

The post 3 quality ASX ETFs for investors to buy for the long term appeared first on The Motley Fool Australia.

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More reading

• Buy and hold these 3 ASX ETFs for a decade
• No savings at 40? I’d invest $5 a day in ASX shares for passive income of $7,800 a year
• I think the Vanguard MCSI Index International Shares ETF (VGS) is a no-brainer diversification buy. Here’s why
• 3 ETFs that could be top buys right now
• Here are a couple of high-quality ETFs to add some oomph to your portfolio

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 BetaShares Global Cybersecurity ETF and Vanguard Msci Index International Shares ETF. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF. The Motley Fool Australia has recommended Betashares Capital – Asia Technology Tigers Etf and Vanguard Msci Index International Shares 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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If you want to become a millionaire, then the Australian share market could be the place to do it.

Sure, winning Powerball would be quicker, but the odds are stacked firmly against you with that.

Whereas ASX shares have historically shown that making a million is achievable.

How to turn $20,000 into $1 million with ASX shares

Turning $20,000 into $1 million is not as hard as it might sound, thankfully. In fact, perhaps the hardest part will be having the discipline to stick with your investment strategy through thick and thin to achieve your goals.

So, what is the strategy? Well, the first step is to make an initial investment into a high-quality group of ASX shares.

The second step is making smaller annual investments.

Thirdly, we need to let compounding works it wonder.

Finally, the fourth step is cross our fingers that the ASX shares continue to deliver strong returns for investors like they have done over the last 30 years.

While this is far from guaranteed, the share market’s return of 9.6% per annum during the period is in-line with historical returns on Wall Street, so is certainly a realistic proposition.

The maths

If you were to invest $20,000 into ASX shares, then made an annual contribution of $5,000 for just over 28 years, and earned the market return, your portfolio would grow to be worth $1 million.

It is also possible to speed up the process if you have more capital to sink into the share market.

For example, if you could make annual contributions of $10,000 instead of $5,000, you would get there in just over 22 years.

Have even more capital at your disposal? If you start with a $30,000 investment and then add $20,000 a year to your portfolio you could reach your goal after 17 years.

Don’t have as much capital to employ but have time on your side? No worries!

Investing $5,000 into ASX shares and then $5,000 each year would get you to $1 million after 31 years if you earned the target 9.6% per annum return.

Final word

Overall, starting with $20,000 and growing your portfolio to $1 million is entirely possible. You just need a combination of discipline, high-quality ASX shares, time, and compounding.

The post How anyone can turn $20k into $1 million with ASX shares appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• ASX 200 takeover target dives 15% after its deal is laid to rest
• Another 52-week high: Are Wesfarmers shares stretched, or could they be a buy?
• Fortescue share price plummets 5% amid weaker production

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 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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