No doubt market watchers will have been keeping an eye on the AGL Energy Limited (ASX: AGL) share price over the last few weeks as a battle between the company’s board and major shareholder Mike Cannon-Brookes’ Grok Ventures apparently heats up.

Market watchers will have noticed the S&P/ASX 200 Index (ASX: XJO) energy stock’s 22% tumble over the last six months. It has also dumped 73% over the last five years.

But AGL board hopeful John Pollaers reportedly believes the company could still prove a winner. That is, as long as the right hands have the wheel. And one broker is in agreeance.

So, is the AGL share price’s future as bright as the Sydney gas lamp the company first lit in 1841? Let’s take a look.

Does AGL offer ‘huge upside for shareholders’?

The AGL share price has had a tough run amid what could become an annual general meeting (AGM) battle.

Grok clapped back at the company’s decision to recommend shareholders vote just one of the four potential directors put forward by the major shareholder onto its board last week. The venture said:

It makes no sense to us – or a growing list of shareholders – that the board is rejecting highly-qualified, independent directors who are committed to helping them make AGL the leading green gentailer in the world.

Former Tesla Inc (NASDAQ: TSLA) director and Grok recommendation Mark Twidell’s election is supported by the AGL board. However, AGL chair Patricia McKenzie said adding Dr Kerry Schott, Christine Holman, or Pollaers to the board “would not add to [its] overall effectiveness”.

But Pollaers believes it’s “time to leave the corporate ego at the door”, telling The Australian the company is in need of “a classic turnaround”. He continued:

It’s a turnaround that actually has a lot going for if it gets the right leadership.

This is a business with huge, huge upside for shareholders and huge upside for the country.

There is the ability to really take a leadership position and transition industries into decarbonising and electrifying and it’s an opportunity that just requires the will of the board to shift towards solving the problem and then getting behind the execution.

When does a boardroom become a battleground?

AGL has flagged two areas in which it believes its board lacks skill and is aiming to fill those gaps.

When hunting for new board members, it’s focusing on finding people with ASX-listed board experience, including in mergers and acquisitions, and expertise in customers, digital retail, and emerging technologies.

Grok, meanwhile, has created its own skills matrix, finding the AGL board lacking in metrics such as customer markets, technological experience and understanding, and people and transformation skills. It said, “the current AGL board is encumbered by old thinking”, and continued:

The architects of the demerger, which was resoundingly rejected by shareholders, now believe they can transition the company. Based on their actions, it is not clear to us that the AGL board has accepted the demerger was a bad idea.

AGL’s underwhelming strategic review is case-in-point that the current board does not have the skillsets required to turn AGL around.

What do brokers expect from the AGL share price?

Credit Suisse is bullish on AGL’s transformation plan, as my Fool colleague James reports.

It said the company’s $20 billion plan to ditch coal will likely increase capital expenditures. However, it believes the company will retain strong free cash flow.

The broker has an $8.20 price target and an outperform rating on AGL shares.

Meanwhile, UBS analyst Tom Allen is cautious on how the company’s strategic plan will be funded. Allen said, as per the Sydney Morning Herald:

This plan is a significant step in the right direction from an ESG perspective.

However, investors and other stakeholders will likely need further detail before they are able to support the plan.

The post Is AGL really an ASX 200 ‘business with huge, huge upside for shareholders’? appeared first on The Motley Fool Australia.

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More reading

• ASX dividend shares ‘likely to remain attractive’ despite rising bank deposit rates: expert
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Qantas shares: Buy, hold, or fold?
• This ASX 200 share could be 50% higher next year: expert
• Why did the Magellan share price get bashed around today?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. 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 BHP Group Ltd (ASX: BHP) share price is falling again on Thursday.

In afternoon trade, the mining giant’s shares are down almost 3% to $38.15.

Why is the BHP share price falling?

Investors have been selling down the BHP share price over the last two sessions after its quarterly update disappointed.

That update revealed that its production missed consensus estimates across most commodities.

Is this a buying opportunity?

One leading broker that is sticking with BHP after its update is Goldman Sachs.

According to a note this morning, the broker has retained its buy rating with a trimmed price target of $42.50.

Based on the current BHP share price, this suggests potential upside of 11.5% for investors over the next 12 months.

Goldman is also forecasting a fully franked 6.6% dividend yield in FY 2023, boosting the total potential return beyond 18%.

What did the broker say?

Goldman summarised BHP’s quarterly update as follows:

BHP reported a weaker than expected start to FY23 with an 11% QoQ decrease in copper production to 410kt on lower grades and throughput at both Escondida & Spence in Chile, and a 24% drop in met coal production from Qld due to wet weather and continued labour shortages. Pilbara shipments of 70.3Mt were in-line with GSe. FY23 production and cost guidance for all commodities remains unchanged, although we think Escondida & met coal will be right at the bottom end.

Overall, it remains positive enough on the miner to maintain its buy rating following this update. This positive view is based partly on the following:

BHP is currently trading at ~5.5x EBITDA vs. global peers (including GLEN & AAL) at ~3-4x EBITDA, and at ~1x NAV. We believe this premium vs. peers can continue to be maintained due to ongoing superior margins and operating performance (particularly in Pilbara iron ore), high returning copper growth, and lower iron ore replacement & decarbonisation capex vs. peers. We also highlight BHP’s higher exposure to lower operating jurisdictions such as Australia and Canada relative to global mining peers, along with their #1 global position in the high quality metallurgical coal seaborne market.

The post Here’s what Goldman Sachs is saying about the BHP share price after the miner’s update appeared first on The Motley Fool Australia.

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More reading

• ASX dividend shares ‘likely to remain attractive’ despite rising bank deposit rates: expert
• BHP share price falls after disappointing quarterly update
• BHP share price on watch amid Q1 production miss
• 5 things to watch on the ASX 200 on Wednesday
• Is it wise to buy BHP shares amid falling iron ore prices?

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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The Block Inc (ASX: SQ2) share price is having a tough day on the market today.

Block shares are down 8.34% and are currently trading at $85.08.

So why is this ASX 200 tech share struggling today?

What’s happening?

Block is falling today despite multiple Buy Now, Pay Later (BNPL) shares having a good day. For example, the Zip Co Ltd (ASX: ZIP) share price is up 4.22% today on the back of a quarterly update, while the Sezzle Inc (ASX: SZL) share price is up 2.81%.

However, Tyro Payments Ltd (ASX: TYR) shares are down 2.83% today. Meanwhile, the S&P/ASX All Technology Index (ASX: XTX) is 3.95% in the red at the time of writing.

Block is following in the footsteps of its US New York Stock Exchange listing today. Block Inc (NYSE: SQ) dropped 5.91% in the USA overnight.

Analysts at Jefferies have cut the price target on Block to $70 from $105, according to a report on NAB Trade. This is a 33% downgrade on its outlook for the Block share price.

Block recently made the list of the 10 most shorted shares on the ASX, which my Foolish colleague James reported on Monday.

Block listed on the ASX as SQ2 in February after taking over Afterpay.

Block share price snapshot

Block shares have slumped 52% in the year to date, while they have fallen 12% in a month.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has fallen 9% in the last year.

This ASX 200 tech share has a market capitalisation of more than $3 billion based on the current share price.

The post Why is ASX 200 tech share Block dropping like a stone today? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here’s why the Block share price just rocketed 8%
• These are the 10 most shorted ASX shares
• Down 49% this year, here’s why I’m still holding my Block shares
• After a horror year, what’s next for ASX BNPL shares in the new quarter?

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ZIPCOLTD FPO. 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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Most Australian retirees and savers will tell you the recent era of low interest rates has been painful.

They’ve had to endure falling returns on their cash in savings accounts or term deposits year after year for many years. In fact, since 2010. That was the last time interest rates went up before hiking began in 2022.

So, for a 12-year period, cash hasn’t been an attractive investment avenue for many people. So, what did they do?

Well, many piled into S&P/ASX 200 Index shares — specifically those delivering good income streams.

With interest rates on savings and term deposits now going up, will investors ditch dividend shares?

Why ASX dividend shares are ‘likely to remain attractive’

Shane Oliver, chief economist and head of investment strategy at AMP Capital, writes on Livewire:

Australian shares offer an attractive dividend yield. This is particularly so compared to bank deposits.

Companies don’t like to cut their dividends, so the income flow you are receiving from a well diversified portfolio of shares is likely to remain attractive, particularly against bank deposits even though deposit rates are slowly rising.

What about market volatility?

Of course, ASX dividend shares are not immune to market falls like we’ve seen in 2022.

What does Oliver say to those investors who’d rather be in cash but can’t due to low returns?

Oliver muses:

Bouts of volatility are the price we pay for the higher longer-term returns from shares compared to other assets like cash and bonds. 

… the value of $1 invested in various Australian assets in 1900 allowing for the reinvestment of dividends and interest along the way… would have grown to $243 if invested in cash, to $881 if invested in bonds, and to $691,806 if invested in shares.

While the average return since 1900 is only double that in shares relative to bonds, the huge difference between the two at the end owes to the impact of compounding returns on top of returns.

So, if we want to grow our wealth, we need exposure to growth assets like shares to make the most of the power of compound interest, but with that comes rough patches every so often.

Which ASX 200 shares are the best dividend shares?

ASX 200 bank shares and mining shares are typically seen as among the best ASX dividend shares.

This is because our big four banks and major miners are well-established, profitable businesses. Thus, they’ve been able to dole out strong dividends every year regardless of economic or market conditions. Plus their dividends are typically 100% franked. Bonus.

Due to these companies’ size and market share, they’re also viewed as safer investments for retirees, who are often concerned about capital preservation in addition to generating enough income to live on.

Dividend yields of ASX 200 bank shares and mining shares

For the record, RateCity reported on 4 October that the best savings rate in the market was 4.1%.

Here is a snapshot of current dividend yields among the ASX 200 banks and mining shares, according to the ASX website:

• Westpac Banking Corp (ASX: WBC) dividend yield 5.11%
• National Australia Bank Ltd (ASX: NAB) dividend yield 4.42%
• Commonwealth Bank of Australia (ASX: CBA) dividend yield 3.83%
• Australia and New Zealand Banking Group Ltd (ASX: ANZ) dividend yield 5.57%
• BHP Group Ltd (ASX: BHP) dividend yield 11.22%
• Rio Tinto Limited (ASX: RIO) dividend yield 11.13%
• Fortescue Metals Group Limited (ASX: FMG) dividend yield 12.02%

A word to the wise: These ASX 200 mining share dividends are nuts. They’re well above average because of the current commodities price boom.

Commodities are cyclical so these dividend yields are not indicative of average long-term levels of income returns for investors. They’re indicative of sky-high commodity prices due to the Russia-Ukraine war and COVID-19 recovery.

But you see our point. Even if you cut these yields in half, they’d still be higher than savings deposit rates.

To find out which ASX dividend shares our Australian Fool writers recommend, view our monthly report.

The post ASX dividend shares ‘likely to remain attractive’ despite rising bank deposit rates: expert appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Westpac share price offers best value in the sector: Goldman Sachs
• Why has the Fortescue share price dropped 20% in 6 months?
• Qantas shares: Buy, hold, or fold?
• Are NAB shares a good ASX 200 investment right now?

Motley Fool contributor Bronwyn Allen has positions in Australia & New Zealand Banking Group Limited, BHP Billiton Limited, Commonwealth Bank of Australia, Fortescue Metals Group Limited, and Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) has cast off the optimism of the last two trading days and has recorded a heavy loss over this Thursday’s session thus far. At the time of writing, the ASX 200 has shed a hefty 1.2% and is back down to around 6,720 points.

But rather than letting that get us down, let’s instead dig a little deeper into what’s going on today, and take stock of the ASX 200 shares presently at the top of the share market’s trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Thursday

Core Lithium Ltd (ASX: CXO)

First up this Thursday is the ASX 200 lithium stock Core Lithium. This session has had a notable 21.15 million Core Lithium shares find a new home so far. There hasn’t been much in the way of news out of this company directly.

However, that hasn’t stopped Core Lithium from shedding more than 2.5% of its value to $1.35 a share thus far this session. As my Fool colleague Tony went into earlier, this fall, and trading volume, might be being influenced by electric car maker Tesla Inc (NASDAQ: TSLA)’s latest results getting released overnight.

Whitehaven Coal Ltd (ASX: WHC)

Whitehaven Coal is next up today. This ASX 200 coal miner has had a hefty 24.52 million of its shares swap hands as it currently stands. We haven’t had any news from this company today either.

But Whitehaven did release a disappointing quarterly update yesterday. This could be why the company’s shares are down by 2.66% so far this session. This is probably the cause of the high volumes we are seeing.

South32 Ltd (ASX: S32)

Last up this Thursday, we have ASX 200 mining share South32. Today has seen a sizeable 30.89 million South32 shares traded on the share market so far.

There has been a share buyback notice that could be at play here. But the more likely explanation for this elevated volume is the nasty share price drop South32 is enduring. The miner has lost a depressing 3.71% so far and is down to $3.63 a share.

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

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More reading

• ASX dividend shares ‘likely to remain attractive’ despite rising bank deposit rates: expert
• Qantas shares: Buy, hold, or fold?
• 3 lithium ASX shares to watch after Tesla’s results
• This ASX 200 share could be 50% higher next year: expert
• Why did the Magellan share price get bashed around today?

Motley Fool contributor Sebastian Bowen has positions in Tesla. 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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We’re now 20 days into the second month of Spring. But it sure has been a bumpy ride for ASX shares so far this October. Sure, the S&P/ASX 200 Index (ASX: XJO) is up a pleasing 3.9% so far this month. But we have certainly had a few bumps and bruises along the way (including from today’s session).

So what better time to examine the best ASX exchange-traded funds (ETFs) of the month so far.

The best-performing ASX ETFs of October so far

Global X EURO STOXX 50 ETF (ASX: ESTX)

First up today is an ETF from the newly renamed Global X ETFs (formerly ETF Securities). The Euro STOXX 50 ETF is a fund covering the 50 largest companies on the European markets. It holds companies like LVMH Moet Hennessey, SAP and L’Oreal.

October seems to have been a killer month for European shares, with this ETF up a solid 9% since the start of October. Exchange rate movements have probably helped here too.

BetaSahres Geared Australian Equity Fund (ASX: GEAR)

Another ETF that has been enjoying October is this offering from provider BetaShares. The Geared Australian Fund is an interesting one. As its name suggests, it is a fund that employs a gearing (or borrowed money) strategy to amplify the returns of the ASX 200.

Since the ASX 200 has had a relatively strong month, this ETF has done even better, giving investors a return of 9.74% since the end of September.

But gearing cuts both ways, and we can expect a fund like this to rack up greater losses than the broader market during selling periods.

VanEck Australian Banks ETF (ASX: MVB)

Our third and final ETF is from yet another provider in VanEck. As the name suggests, the VanEck Australian Banks ETF tracks a basket of… well, bank shares. It only holds seven ASX shares in its portfolio.

These include the big four banks, like Commonwealth Bank of Australia (ASX: CBA). But it also includes those outside the big four, such as Macquarie Group Ltd (AX: MQG) and Bendigo and Adelaide Bank Ltd (ASX: BEN).

It’s been a cracker of a month for ASX banks, with this ETF up a very pleasing 11.07% over October so far.

The post These are the 3 best-performing ASX ETFs so far in October appeared first on The Motley Fool Australia.

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More reading

• Why has the Fortescue share price dropped 20% in 6 months?
• 3 ASX All Ordinaries shares smashing multi-year highs today
• If I were forced to sell all of my ASX shares except one, I’d hold onto this ETF
• Own Macquarie shares? Here’s what to expect from the bank’s half-year results
• Guess which ASX lithium share is on ice with a ‘significant resource update’ incoming

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool Australia has recommended Macquarie Group Limited. 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 past six months have been a frustrating ordeal for the Fortescue Metals Group Limited (ASX: FMG) share price.

In the world of investing, there are few things more deflating than watching the share price of a stock you own drop precipitously. For investors of the iron ore giant, that is exactly what has played out.

Fortescue’s share price has dropped a whopping 22.5% over a six-month timeframe.

So, what’s behind this sharp decline? Let’s take a closer look.

Why the big tumble?

The fall in the Fortescue share price can be attributed to a number of factors. Although, one specific variable could carry the bulk of the blame.

Firstly, demand for iron ore — Fortescue’s primary product — has been softening in recent months due to slowing economic growth in China, which is the biggest buyer of Australian iron ore.

Six months ago, the steelmaking commodity was going for US$154.40 per tonne. Whereas, this figure is tracking close to its 52-week low of US$92 per tonne — now perched at US$94.86. This undoubtedly would put pressure on Fortescue’s margins, which would in turn weigh on the company’s bottom line.

Secondly, Fortescue has up the ante in terms of its decarbonisation commitments in recent months. In September, the company announced its plan to pour US$6.2 billion into eliminating fossil fuel risk by 2030.

While Fortescue’s management believes this could result in operating savings of US$818 million per annum, investors may not be so sure. Furthermore, there are concerns that this investment might mean taking a bite out of its future dividends.

Could the current Fortescue share price be a buy?

While it’s never fun to watch the value of our investments decline, it’s important to remember that share prices are just one metric by which to judge a company. What really matters is where Fortecue’s earnings could be in the future.

Unfortunately, analysts at Goldman Sachs think those future earnings could be impacted in the near term. As a result, the team believes dividends could be squashed to 38 US cents by FY24, with more downside in the ensuing years.

Right now, Goldman has a $13.40 target on the Fortescue share price. This would suggest a further 20% downside to the company’s valuation from here.

Shares in Fortescue are down 3.3% today. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is wearing a 1.1% markdown.

The post Why has the Fortescue share price dropped 20% in 6 months? appeared first on The Motley Fool Australia.

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More reading

• Why was the Fortescue share price on such a rollercoaster today?
• Sell Fortescue shares before they drop 20% and the dividends collapse: Goldman Sachs
• 3 ASX 200 shares that turned a $5,000 investment into $1 million
• 5 things to watch on the ASX 200 on Monday
• Do you want the good news or the bad news on the iron ore price?

Motley Fool contributor Mitchell Lawler 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 All Ordinaries Index (ASX: XAO) is down in the dumps on Thursday. But not all shares that call the benchmark index home are trading in the red.

These three have defied the sell-off to trade at their highest points in years.

Right now, the ASX All Ordinaries is down 1.28% at 6,909.9 points.

So, what’s driving some of its constituents to long-forgotten highs? Keep reading to find out.

3 ASX All Ordinaries shares hitting multi-year records

The All Ordinaries Index is tumbling lower on Thursday, but its despair isn’t rubbing off on these ASX shares.

The Syrah Resources Ltd (ASX: SYR) share price, for one, is defying the slump. It surged 18% to trade at $2.21 earlier today – its highest point since 2018.

The graphite producer’s stock is gaining on the back of a barrage of announcements.

The company revealed a US$250 million grant, an offtake and collaboration agreement with LG Energy, an update on the restart of the Balama Graphite Operation, and its quarterly activities report.

The Neuren Pharmaceuticals Ltd (ASX: NEU) share price is also gaining today after the All Ordinaries company announced a US$10 million milestone payment. The stock lifted 0.9% this morning to reach $7.59 ­– a 15-year high.

The payment came from the company’s partner Acadia Pharmaceuticals and related to the US Food and Drug Administration’s (FDA’s) decision to accept trofinetide for the treatment of Rett syndrome for review.

Acadia has the exclusive rights to develop and commercialise trofinetide in North America, while Neuren retains rights for all other countries.

The final ASX All Ordinaries share posting a multi-year high on Thursday is mining giant IGO Ltd (ASX: IGO).

The stock peaked at an all-time high of $16.25 this morning, marking a 0.5% gain. It has since slipped into the red to trade 2.9% lower at $15.69.

The post 3 ASX All Ordinaries shares smashing multi-year highs today appeared first on The Motley Fool Australia.

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More reading

• 3 lithium ASX shares to watch after Tesla’s results
• Syrah Resources share price leaps 13% on big news day
• Here are the top 10 ASX 200 shares today
• What’s the outlook for ASX battery metals shares in Q2?
• 3 ASX All Ords shares smashing multi-year highs on Friday

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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When it comes to ASX shares, I’m guilty of being an accumulator.

This was particularly evident in the earlier stages of my investing journey. 

I’d accumulate a wide range of different shares, often in small parcels, without having much regard for the finer details of portfolio construction.

I’m now at a stage where I recognise that I’d prefer to have fewer, high-conviction ideas in my portfolio rather than spreading my capital thinly over more speculative bets.

But taking this to the extreme, if I had to whittle down my portfolio to just one investment, I’d be sticking with… the Vanguard Diversified High Growth Index ETF (ASX: VDHG).

What’s all the rage with the VDHG ETF?

The VDHG ETF was my first-ever investment as I forayed into the world of ASX investing. 

And if I were to implement a single-investment portfolio, it’s the one I’d be keeping.

If I could have just one investment, diversification would be a high priority for me. As would the investment’s ability to stand the test of time.

So, I’d be going with an exchange-traded fund (ETF).

Instead of my fortunes resting on the success of one specific company, I could gain exposure to the performance of a broad range of leading companies across the globe.

But VDHG isn’t just any ordinary ETF. 

It’s a diversified ETF, comprising many other ETFs. You can think of it as an ‘ETF of ETFs’.

VDHG is the high-growth version of Vanguard’s range of diversified ETFs. Accordingly, it targets a 90% allocation to growth assets, such as shares, and a 10% allocation to income assets, such as bonds.

There are three other diversified ETFs in Vanguard’s stable across conservative, balanced, and growth options. The balanced ETF, for example, has an evenly-split allocation across growth and income assets.

When weighing up these different options, it’s important to consider how they align with your investment timeframe and tolerance for risk.

Personally, I’m comfortable stomaching the inevitable periods of volatility that are part and parcel of investing. And with many decades to invest, I decided the high-growth option was best suited for me.

What’s inside the VDHG ETF?

By design, the VDHG ETF mimics a diversified portfolio, investing in a range of Vanguard funds.

VDHG’s largest holdings are the wholesale versions of the Vanguard Australian Shares Index ETF (ASX: VAS) and the Vanguard MSCI Index International Shares ETF (ASX: VGS). Together, this currently makes up nearly 80% of the portfolio.

The rest of the growth exposure comes from small companies and emerging markets, while the remaining ~10% goes towards fixed-interest assets, such as bonds.

So, if I were forced to sell all of my ASX shares except VDHG, I could take comfort in knowing that my capital is being spread across a wide range of established ASX and global shares.

What’s more, Vanguard would take care of the rebalancing for me. And I’d be able to take advantage of VDHG’s distribution reinvestment plan (DRP), which would automatically reinvest my regular distributions into more units.

Overall, I think VDHG is a great ETF for long-term investors looking for a one-stop-shop, hands-off approach. And it just so happens to be the largest position in my portfolio today.

The post If I were forced to sell all of my ASX shares except one, I’d hold onto this ETF appeared first on The Motley Fool Australia.

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More reading

• 5 reasons why I invest in ASX ETFs
• I think these 2 ASX ETFs are buys for growth and diversification in October
• This ASX ETF was my first investment, and I’ll be holding it for the long term

Motley Fool contributor Cathryn Goh has positions in Vanguard Diversified High Growth Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. 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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Macquarie Group Ltd (ASX: MQG) shares are having a tough day on Thursday.

In afternoon trade, the investment bank’s shares are down 3% to $157.25.

This leaves the Macquarie share price trading within sight of a 52-week low.

Will Macquarie’s shares rebound?

Whether or not the Macquarie share price rebounds in the near future may depend a lot on how strong (or weak) the company’s half year results are next week.

Macquarie is scheduled to release its numbers on Friday 28 October and a sizeable sequential decline in profits is being forecast by the market.

Let’s take a look at what the market is expecting.

What is the market expecting?

According to a note out of Goldman Sachs, its analysts are expecting Macquarie to report a cash net profit after tax of $2,183 million. This is a touch higher than the market consensus estimate of $2,157 million.

While Goldman’s cash earnings estimate represents a 7% increase on the prior corresponding period, it will be an 18% decline on the previous half.

Its analysts are expecting this to lead to an interim dividend of $2.55 per share, down 6% on the prior corresponding period. Though, it is worth noting that the market consensus estimate is for a much higher dividend of $2.94 per share.

What did Goldman say?

Goldman has suggested that investors keep a close eye on the Commodities and Global Markets (CGM) business.

That’s because when Macquarie released its first quarter update, it was expecting a soft first half performance from the business due to lower commodities trading income. However, Goldman highlights that trading conditions have improved markedly since then, which could result in a stronger than expected first half performance from the business.

It explained:

At the 1Q23 update, MQG guided for Commodities trading income within CGM to be down following a strong FY22 (vs. previous guidance of significantly down), albeit volatility may create opportunities.

Given that now nearly two-thirds of the division’s revenues are sourced from Commodities trading income, and within this, the majority of revenues have recently been sourced from Risk Management and Inventory Management and Trading, we believe the backdrop of volatile commodity markets should have provided a notable tailwind in 2Q23.

As such we forecast profit contribution from CGM to rise 14% hoh and within this, for Commodities trading income to be up +20%. We will be keen to get an update on whether these volatile markets have indeed translated to profitability and what MQG’s expectations are going forward.

Are Macquarie’s shares good value?

While Goldman is sitting on the fence with its recommendation, it still sees plenty of upside for Macquarie’s shares.

The note reveals that the broker has put a neutral rating and $184.58 price target on its shares. This suggests potential upside of 17% for investors.

The post Own Macquarie shares? Here’s what to expect from the bank’s half-year results appeared first on The Motley Fool Australia.

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More reading

• Broker says these ASX dividend shares are buys this month
• Down 7% in a month, is the Macquarie share price an ASX 200 bargain buy?
• What’s the outlook for ASX 200 bank shares in Q2?
• A mortgage ‘battleground’ is coming. UBS names ASX 200 bank shares best placed to win
• Morgans names 2 ASX 200 blue chip shares to buy

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 Macquarie Group Limited. 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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