The Macquarie Group Ltd (ASX: MQG) share price will be one to watch on Friday.

This follows the release of the investment bank’s half-year results this morning.

Macquarie share price on watch after earnings beat

• Net operating income up 11% over the prior corresponding period to $8,641 million
• Total operating expenses up 11% to $5,613 million
• Profit after tax up 13% to $2,305 million
• Interim dividend up 10% to $3.00 per share

What happened during the half?

For the six months ended 30 September, Macquarie reported an 11% increase in net operating income to $8,641 million and a 13% increase in profit after tax to $2,305 million.

One of the key drivers of this growth was the Commodities and Global Markets (CGM) business, which delivered a 15% increase in profit contribution to $1,996 million. This reflects a strong risk management contribution across the platform, particularly from the Gas and Power, Resources and Global Oil businesses, due to increased client hedging activity.

Also performing strongly was the Macquarie Asset Management (MAM) business, which delivered a 28% increase in profit contribution to $1,402 million. This was driven by investment-related income, primarily due to the timing of asset realisations in the green energy sector.

Another highlight was the Banking and Financial Services (BFS) business, which reported a 20% increase in profit contribution to $580 million. This reflects growth in the loan portfolio and total BFS deposits, improved margins, and lower credit impairment charges.

One disappointment was the performance of the Macquarie Capital business, which posted a 12% decline in its profit contribution to $595 million. Management notes that fee and commission income was down on a strong prior corresponding period reflecting weakening market conditions, with operating expenses also higher than the prior corresponding period.

How does this compare to expectations?

The good news for the Macquarie share price today is that this result appears to have beaten the market’s expectations.

According to a note out of Goldman Sachs, its analysts were expecting Macquarie to report a profit of $2,183 million and the market consensus estimate was $2,157 million.

Management commentary

Macquarie’s managing director and CEO, Shemara Wikramanayake, said:

Macquarie’s businesses continued to perform well against a backdrop of more challenging market conditions, reflecting the diversity of our activities and ongoing focus on prudent risk management. We continue to adapt to meet our clients’ needs.

Looking ahead, Wikramanayake remains positive on the company’s medium term outlook. She said:

Macquarie remains well-positioned to deliver superior performance in the medium term. This is due to our deep expertise in major markets; strength in business and geographic diversity and ability to adapt the portfolio mix to changing market conditions; an ongoing program to identify cost saving initiatives and efficiency; ongoing technology spend across the Group; a strong and conservative balance sheet; and a proven risk management framework and culture.

The post Macquarie share price on watch after first-half earnings beat appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• 22 high-yield ASX dividend shares Wilsons is targeting
• Is the Macquarie share price a buy ahead of the bank’s results on Friday?
• Own Macquarie shares? Here’s what to expect from the bank’s half-year results
• Broker says these ASX dividend shares are buys this month

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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If you’re searching for dividend shares to buy, then the two listed below could be worth looking at.

Both have been named as buys by analysts at Morgans and tipped to provide big yields. Here’s what you need to know:

Dexus Industria REIT (ASX: DXI)

The first ASX dividend share that Morgans rates as a buy is Dexus Industria. It is an industrial and office property company.

The broker believes that Dexus Industria is well-placed for growth thanks to strong demand in the industrial market.

Morgans currently has an add rating and $3.25 price target on the company’s shares. It commented:

DXI’s key industrial markets remain robust with the outlook for solid rental growth backed by strong tenant demand. The development pipeline also provides near and medium term upside potential. A key focus will be the leasing up of the business park assets and a potential divestment could be a positive catalyst. While the portfolio remains well positioned we acknowledge there will be near-term uncertainty around interest rates.

In respect to dividends, the broker is forecasting dividends per share of 16.4 cents in FY 2023 and 16.9 cents in FY 2024. Based on the current Dexus Industria share price of $2.63, this will mean yields of 6.2% and 6.4%, respectively.

Incitec Pivot Ltd (ASX: IPL)

Another ASX dividend share that Morgans rates as a buy is Incitec Pivot. It is a manufacturer and distributor of industrial explosives, industrial chemicals, and fertilisers to the agriculture and mining industries.

Morgans believes the company is positioned to benefit from high fertiliser prices and the economic recovery. It also sees positives from its demerger plans.

The broker has an add rating and $4.45 price target on the company’s shares. It said:

With fertiliser prices holding at historically high levels and possibly moving higher over coming months given Russia’s invasion of the Ukraine, which is increasing gas prices, soft commodity prices and impacting fertiliser supply chains, the fundamentals for IPL are very positive. It is also benefiting from favourable seasonal conditions in Australia. It also has strong exposure to an economic recovery through its explosives business (solid demand for resources and Q&C will benefit from US stimulus packages). IPL believes that its demerger plans of its Fertilisers (Incitec Pivot Fertilisers) and Explosives (Dyno Nobel) businesses to create two separately listed companies on the ASX will create further value for shareholders.

As for dividends, Morgans is expecting fully franked dividends per share of 25 cents in FY 2022 and 19 cents in FY 2023. Based on the current Incitec Pivot share price of $3.64, this will mean yields of 6.9% and 5.2%, respectively.

The post Morgans names 2 ASX dividend shares to buy with big yields appeared first on The Motley Fool Australia.

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More reading

• 4 battered ASX 200 shares that are ‘obvious M&A targets’: expert
• Experts name 2 high yield ASX dividend shares to buy
• Broker names 2 ASX dividend shares to buy with 6%+ yields
• Macquarie reveals ASX 200 shares ‘more likely to outperform in a bear market rally’

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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of Meta Platforms (NASDAQ: META) were trading down 22% at 11:35 a.m. on Thursday after the company delivered third-quarter financial results. The social media giant beat the Street’s revenue estimates but missed on earnings. 

Based on analysts’ comments following the earnings report, the problem is not so much the weak numbers as management’s plan to continue aggressively investing in growth initiatives, such as the metaverse, instead of firming up the bottom line.

So what

After posting a 1% year-over-year increase in revenue last quarter, Meta saw revenue decline 4% this quarter. Wall Street is looking at the slowing economy and advertising market, which is what social media companies use to make money, and not seeing much growth over the next year. That’s why the stock is down 70% this year, in a nutshell.

The stock would probably be holding up much better if management were prioritizing profits over investments in artificial intelligence and the metaverse. But that’s not the way CEO Mark Zuckerberg runs the company, and a long-term investor shouldn’t want it any other way.

Instead of pulling back, the company said it would spend up to $33 billion in capital expenditures next year, which is roughly the same as previous guidance. Wall Street didn’t want to hear that, especially after earnings per share (EPS) fell 49% year over year in the quarter.

Now what

On the earnings call, Zuckerberg mentioned that engagement trends have been positive across the family of apps, including Instagram and WhatsApp. He also noted the company can still “meaningfully” grow operating income over the long term, while still making investments in AI and Reality Labs (e.g., the metaverse and virtual reality).  

The stock was already cheap on a price-to-earnings basis going into earnings, and now it’s 22% cheaper. What’s certain is that with over 3 billion monthly active people across the family of apps, Meta is not a worthless company. Revenue growth will pick up in a healthier economy, when advertisers will feel more comfortable opening up their wallets.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Meta Platforms stock was down more than 20% today appeared first on The Motley Fool Australia.

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• Batten down the hatches as RBA may hit households with ‘supersized’ interest rate hike on Melbourne Cup day
• Why were Meta and Amazon stocks falling today?
• Tough year for leading global growth fund laid bare with brutal fall in tech stocks
• 2 reasons Amazon is a Warren Buffett stock
• Here’s how Meta Platforms plans to disrupt Apple’s and Google’s smartphone empires

John Ballard has no position in any of the stocks mentioned. 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. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Meta Platforms, Inc. The Motley Fool Australia has recommended Meta Platforms, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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After a tough year, more than one expert reckons ASX shares will follow the historical pattern and shoot upwards heading into Christmas.

The reasoning is that the market can finally see the light at the end of the tunnel. There is optimism that inflation can be tamed and interest rises could slow or stop sometime next year.

Considering this, Shaw and Partners portfolio manager James Gerrish was recently asked for his best stocks to buy to take advantage of the Santa rally:

A warning before the picks

As a preamble, Gerrish reminded investors that short-term predictions are fraught with danger.

“This is a scary question to answer because with potentially high returns comes high risk,” he said in a Market Matters Q&A.

Gerrish said 10 days ago he would have named Megaport Ltd (ASX: MP1) as one to buy for the Christmas rally. But over last Wednesday and Thursday it fell more than 31%.

“It produced a very sobering experience.”

The best bets for the Santa Rally

Getting back to the question, Gerrish’s team feels like the technology stocks are due for a recovery as we wait for Santa to come.

After all, the S&P/ASX All Technology Index (ASX: XTX) has sunk almost 36% over the past 12 months.

The prediction has disappointed so far, though.

“The underlying theme is we’re looking for a recovery in the tech sector but this has proved elusive 3-weeks into October.”

But the team is sticking with the theory, as Gerrish picked five stocks he thought would rally the fastest and furthest heading into the new year:

• Seek Limited (ASX: SEK)
• REA Group Limited (ASX: REA)
• Hub24 Ltd (ASX: HUB)
• Altium Limited (ASX: ALU)
• James Hardie Industries plc (ASX: JHX)

These are point-in-time picks, he warned.

“This list is likely to change over the ensuing weeks. But at this stage, I would go with some of our most recent purchases plus older existing holdings and one we are currently stalking.”

Seek shares are down 37% so far this year, while giving out a 2% dividend yield. Fellow online classifieds provider REA Group is almost 30% lower than when 2022 started, while paying out a 1.36% yield.

The Hub24 share price has only lost 16.85% year to date, while Altium is down 22%. 

James Hardie is painfully 41% lower than the start of the year, while handing out a 2.9% dividend yield.

The post 5 ASX shares to buy for the Christmas rally: expert appeared first on The Motley Fool Australia.

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More reading

• How I’d build a portfolio by investing in top ASX shares now
• 2 ASX shares that turned $5,000 into $2.5 million (or more)
• 22 high-yield ASX dividend shares Wilsons is targeting
• Which ASX 200 shares could benefit from the federal budget?
• 3 ASX 200 shares I’d pounce on when the clouds clear: expert

Motley Fool contributor Tony Yoo has positions in MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Hub24 Ltd, and MEGAPORT FPO. The Motley Fool Australia has positions in and has recommended Hub24 Ltd. The Motley Fool Australia has recommended MEGAPORT FPO, REA Group Limited, and SEEK 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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S&P/ASX 200 Index (ASX: XJO) coal shares have delivered some stellar returns to investors this year.

Coal stocks largely have soaring thermal and coking coal prices to thank for that outperformance.

Coking coal, if you’re not familiar, is mostly used in steel production.

Thermal coal is most broadly used to generate electricity.

Thermal coal prices, in particular, have been spurred far higher by Russia’s invasion of Ukraine, as European and other nations are turning elsewhere for their energy needs.

That saw the Newcastle coal price (thermal) hit all-time highs of US$440 per tonne back in early March. Today it’s still trading for a heady US$387 per tonne.

As you’d expect, this has offered some gale-force tailwinds for ASX 200 coal shares.

How have the big Aussie coal producers been tracking?

To put some numbers on it, the ASX 200 is down 10% in 2022.

As for the ASX 200 coal shares:

• Yancoal Australia Ltd (ASX: YAL) shares are up 98%
• New Hope Corporation Limited (ASX: NHC) shares have gained 172%
• Whitehaven Coal Ltd (ASX: WHC) shares have leapt 256%

Of course, if the coal price retraces, so too will those helpful tailwinds.

And in estimates put out in the federal budget this week, government analysts believe thermal coal prices will fall to $US60 per tonne by the end of Q1 2023.

The budget also forecasts that coking coal prices will fall to $US130 per tonne (FOB Australia) by that time.

Commonwealth Bank of Australia (ASX: CBA), however, has a more bullish take for ASX energy share investors.

ASX 200 coal shares could keep the good times rolling

“We think that the Government’s forecasts for Australia’s key mining and energy commodities in the coming years are broadly too conservative,” CBA said in its Economic Insights report.

“Our main point of difference is the timing of when prices will normalise from the disruption to Russian commodity supply following the Ukraine conflict,” the bank noted. “We think prices will take longer than that to normalise, especially for commodities that Russia is a key supplier in.”

That longer delay in normalising prices would come as good news to ASX 200 coal shares.

According to the report:

The Budget’s coking coal price view is markedly lower than our view from 2022/23 to 2025/26… We think the disruption to Russian coking coal exports (~10% of the seaborne market) will take years to replace fully, helping keep a premium entrenched in coking coal prices over the Budget’s outlook period.

CBA has a similarly divergent view on the outlook for thermal coal, from which ASX 200 coal shares derive a large portion of their revenues.

The report noted:

The Budget’s outlook for thermal coal is significantly lower than our forecast in the outlook period… Like coking coal, we see the disruption to Russian thermal coal exports (~15% of the seaborne market) to be more long-lasting than the Budget over the outlook period. Replacing Russian thermal coal exports in the seaborne market will be challenging given the underinvestment in the sector over the last few years.

The post If CBA is right, ASX 200 coal shares should keep the good times rolling appeared first on The Motley Fool Australia.

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More reading

• If I’d spent $5,000 buying this ASX 200 coal share a year ago, here’s what I would have now
• Why is the Whitehaven Coal share price rebounding strongly today?
• If the government has this right, the BHP share price could come under some serious pressure
• How to find wealth compounders inside the ASX 200 right now
• Here’s how ASX 200 banks stand to benefit from the budget

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Thursday, the S&P/ASX 200 Index (ASX: XJO) was on form again and charged higher. The benchmark index rose 0.5% to 6,845.1 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to end the week in the red after a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 15 points or 0.2% lower this morning. In late trade in the United States, the Dow Jones is up 0.9%, the S&P 500 has fallen 0.4%, and the Nasdaq has dropped 1.4%.

Oil prices rise

Energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a good finish to the week after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.9% to US$88.70 a barrel and the Brent crude oil price is up 1% to US$96.65 a barrel. Strong demand for oil has given prices a lift.

Macquarie half-year result

The Macquarie Group Ltd (ASX: MQG) share price will be in focus today when the investment bank releases its half year results. According to a note out of Goldman Sachs, its analysts expect 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.

ANZ rated neutral

The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price may be close to peaking according to Goldman Sachs. This morning the broker has responded to the bank’s full year results release by retaining its neutral rating with a $26.25 price target. It said: “Today’s result suggested that while ANZ’s NIM is likely to peak at higher levels than we previously forecast, this peak is also likely to come through earlier.”

Gold price falls

Gold shares including Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a poor end to the week after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.35% to US$1,663.40 an ounce. The precious metal dropped after US dollar climbed ahead of the US Fed meeting next week.

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

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• This ASX 200 lithium share was Auscap’s best performer in the last quarter. Here’s why the team expects even more progress
• Why did Santos and Woodside shares beat the ASX 200 today?
• Here are the top 10 ASX 200 shares today
• 3 ASX 200 directors who have been buying up their company shares this week
• Batten down the hatches as RBA may hit households with ‘supersized’ interest rate hike on Melbourne Cup day

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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Mineral Resources Limited (ASX: MIN) received positive coverage in Livewire this afternoon from Auscap Asset Management principal and portfolio manager Tim Carleton.

Carleton told investors that the ASX 200 lithium miner was the best-performing share in its portfolio for the September quarter.

He attributed part of this success to lithium having an “incredibly strong structural demand outlook”, adding that demand for the battery-making material was expected to outstrip supply for the foreseeable future.

Competitive value and a change in strategy

Carleton also believes that Mineral Resources has a competitive valuation, despite the company trading at the top end of its 52-week range. Closing at $76.58 in today’s trading session, the Mineral Resources share price has almost doubled over the past year, notching up a 99.5% increase.

Carleton said:

Current lithium prices are very favourable for existing lithium producers, resulting in the whole sector re-rating globally.

MinRes’ two JV partners, Albermarle and Ganfeng, are trading at greater multiples of forecast EBITDA than MinRes. A similar multiple for MinRes’ lithium business would have the stock trading considerably higher than it is today.

He also noted Mineral Resource’s change in strategy for its iron ore business:

MinRes has also started its transition from a low volume, high cost and short mine life iron ore operator to a low cost, high volume, long mine life owner.

The final investment decision (FID) on the 30mtpa Onslow Iron Ore project was made to proceed in August 2022, with first ore targeted by December 2023.

‘Transformational progress’ across 4 divisions

And unlike some investors who focus exclusively on Mineral Resource’s lithium business, Carleton sees value and potential across each business division.

While growth in the company’s lithium and iron ore operations “should underpin MinRes’ mining services business for many years to come”, its other divisions were also significant, he said.

… MinRes has also made a significant gas discovery in the Perth basin, with the potential to supply all of MinRes and its customers’ gas needs for many years, at a substantially lower cost than current contract gas prices.

We anticipate many years of transformational progress across each of MinRes’ four divisions: Mining Services, Lithium, Iron Ore and Energy.

Mineral Resources share price snapshot

Shares in the company closed 0.42% lower at $76.58 this afternoon after touching a 52-week high of $80.00 in mid-morning trading.

The Mineral Resources share price is up 36.7% year to date. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down 8% over the same period.

The company’s market capitalisation is around $14.53 billion

The post This ASX 200 lithium share was Auscap’s best performer in the last quarter. Here’s why the team expects even more progress appeared first on The Motley Fool Australia.

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• If ASX lithium shares are soaring, why is the ACDC ETF down 9% in 2022?
• Here are the top 10 ASX 200 shares today
• 3 ASX 200 directors who have been buying up their company shares this week
• Bell Potter tips Mineral Resources share price to jump to $100
• Here are the 3 most heavily traded ASX 200 shares on Thursday

Motley Fool contributor Matthew Farley 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 Global X Battery Tech & Lithium ETF (ASX: ACDC) closed the session on Thursday up 1.24% to $88.28.

But over 2022 so far, the exchange-traded fund (ETF) is down 8.65%, which might seem surprising given this year is turning out to be another ripper for ASX lithium shares.

Let’s look at some examples among the rip-snorters of this particular ASX mining segment.

• The Core Lithium Ltd (ASX: CXO) share price is up 119% year to date (YTD)
• The Sayona Mining Ltd (ASX: SYA) share price is up 86% YTD
• The Pilbara Minerals Ltd (ASX: PLS) share price is up 45% YTD
• The IGO Ltd (ASX: IGO) share price is up 37% YTD
• The Allkem Ltd (ASX: AKE) share price is up 29% YTD.

Why is the ACDC ETF in the red in 2022?

The first thing to understand is that the Global X Battery Tech & Lithium ETF is not a pure-play lithium ETF.

It’s got some ASX lithium shares in there, but it also invests in global companies. And not just those in lithium mining either. It holds battery technology companies, electric vehicle (EV) companies like Tesla Inc (NASDAQ: TSLA), and car manufacturers that are also building EVs, like Renault SA (FRA: RNL).

The provider, Global X ETFs Australia, puts it this way:

ACDC invests in companies throughout the lithium cycle, including mining, refinement and battery production, cutting across traditional sector and geographic definitions.

So, your shares in ACDC are going to be affected by many factors other than the record lithium price. That’s the main thing that’s been pushing up the value of ASX lithium shares over the past two years.

So, this is one reason why the ACDC ETF isn’t going gangbusters like so many ASX lithium shares.

Why invest in the ACDC ETF?

The ACDC ETF is popular with ASX investors who want to capitalise on the global investing thematic of energy transition but don’t want to pick individual stocks to invest in. Problem is, when you purchase a basket of international and ASX shares, you’ve got to accept the good with the bad.

As with any shares portfolio, you’ll have winners and losers every year. The losers aren’t necessarily bad companies, but every company has good and bad years, and that will be reflected in their share prices.

This is especially the case with young companies in their initial growth phase. Remember, global demand for lithium on the back of demand for electric vehicles is a pretty recent phenomenon. Just 10 years ago, Tesla was a small cap. Only five years ago, it was a US$20 stock (today it’s 11 times that price).

However, if you believe the lithium and battery thematic will be ongoing, then the Global X Battery Tech & Lithium ETF may be a good place to be. Especially if you don’t like seeing large share price fluctuations. By nature, a basket of shares is not going to react as strongly to the individual news of its 31 shares.

The ACDC ETF has a 52-week high price of $99.25 and a 52-week low price of $74.72. So, right now, it’s trading in the middle of that range.

Which ASX lithium shares does the ACDC ETF hold?

According to provider, Global X ETFs Australia, the top six holdings are as follows. As you’ll note, only three are listed on the ASX. These are also the only ASX lithium shares the ACDC ETF holds.

1. Pilbara Minerals with a weighting of 6.83%
2. Renault with a weighting of 5.19%
3. Minerals Resources Limited (ASX: MIN) with a weighting of 4.94%
4. LG Energy Solution Ltd (KRX: 373220) with a weighting of 4.61%
5. Livent Corp (NYSE: LTHM) with a weighting of 4.48%
6. Allkem with a weighting of 4.44%.

The post If ASX lithium shares are soaring, why is the ACDC ETF down 9% in 2022? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has positions in Allkem Limited. 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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Exchange traded funds (ETFs) can be great additions to a balanced portfolio. This is because they provide investors with easy access to a large and diverse number of different shares, all through a single investment.

But which ones would be top options for investors today? Listed below are three that could be worth considering:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The first ETF to consider is the hugely popular BetaShares NASDAQ 100 ETF. This ETF gives investors access to many of the best-known companies in the world such as Amazon, Apple, Meta, Microsoft, Netflix, and Tesla. The ETF manager, BetaShares, highlights that with a strong focus on technology, the fund provides diversified exposure to a high-growth potential sector that is under-represented on the Australian share market. And with the NASDAQ 100 down materially this year, now could be the time to consider a patient long term investment.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

A second ETF for investors to look at is the VanEck Vectors Morningstar Wide Moat ETF. This ETF could be a top option for value investors as it aims to invest in a group of fairly valued companies that have sustainable competitive advantages or moats. At present there are approximately ~50 shares included in the ETF. This includes Adobe, Alphabet, Amazon, Boeing, Etsy, MercadoLibre, Microsoft, and Walt Disney.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

A third ETF for ASX investors to consider is the VanEck Vectors Video Gaming and eSports ETF. This ETF gives investors access to a portfolio of the biggest and brightest companies involved in the growing video game industry. These include Activision Blizzard, AMD, Electronic Arts, Nintendo, Nvidia, Roblox, and Take-Two. The fund manager, VanEck, highlights that these companies are well-placed to benefit from the increasing popularity of video games and eSports.

The post 3 excellent ETFs for ASX investors to buy today appeared first on The Motley Fool Australia.

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More reading

• Down 25%: Why is the BetaShares NASDAQ ETF having such a dire year?
• 5 things I look at when buying an ASX ETF
• How I’d build a portfolio by investing in top ASX shares now
• 2 super ETFs for ASX investors to buy and hold
• Of all my ASX ETFs, this is my favourite. Here’s why

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 BETANASDAQ ETF UNITS. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF and ESPO. 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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As most investors would know, 2022 has been a tough year for most of us. The S&P/ASX 200 Index (ASX: XJO) has lost close to 10% year to date (it was significantly more before this bright October). And many ASX 200 shares have fared even worse. But spare a thought for the BetaShares NASDAQ 100 ETF (ASX: NDQ).

Before 2022, this NASDAQ 100 ETF was one of the most successful exchange-traded funds (ETFs) on the ASX. It had enjoyed several years of double-digit returns and even rode out the COVID-battered 2020 with a gain of around 30%.

But in 2020 thus far, this ETF has been brought back to earth, and comprehensively so. BetaShares NASDAQ 100 units were trading at $36.58 at the start of the year. Today, this ETF has closed at $27.21 per unit. That represents a year-to-date loss of 25.6% or so.

So what’s going on here? Why has this stellar performer suddenly curdled for investors?

Why has the BetaShares NASDAQ 100 ETF lost a quarter of its value in 2022?

Well, an ETF, and its performance, is only as strong as its underlying holdings. In the BetaShares NASDAQ ETF’s case, these underlying holdings are the 100 companies that make up the NASDAQ 100 Index. The NASDAQ is one of the two major stock exchanges over in the US. It has made a name for itself as the ‘tech-heavy’ exchange, where most of the country’s biggest tech names call home.

That’s why companies like Apple, Amazon.com, Alphabet, Tesla and Microsoft are major constituents of the NASDAQ-100 Index (NASDAQ: NDX), and by extension, the NASDAQ 100 ETF.

The NASDAQ ETF also houses other big tech companies like Adobe, NVIDIA, Netflix and Meta (formerly known as Facebook).

As such, any performance analysis of the NASDAQ 100 ETF has to start with these kinds of companies. And by looking at these kinds of tech shares’ performances, we can immediately see why the NASDAQ 100 ETF is struggling this year.

Apple shares have lost almost 18% of their value in 2022 thus far. Microsoft is sitting at a 31% loss, while Amazon has lost 32%. Tesla is down a nasty 43.8%, while Alphabet has given up 34.5% of its value.

Now, on the provider’s latest data, Apple made up a whopping 13.8% of the Betashares NASDAQ 100 ETF’s underlying portfolio. Microsoft accounted for another 9.9%, and Amazon, Alphabet and Tesla, 6.8%, 6,7% and 4% respectively on top of that.

So there was no way this ETF was going to have a good year when its underlying holdings were shedding those kinds of numbers.

That’s why it has been such a dire year for the BetaShares NASDAQ 100 ETF. These are the companies that drove this fund to its spectacular returns in recent years. But they are proving a double-edged sword in 2022.

The post Down 25%: Why is the BetaShares NASDAQ ETF having such a dire year? appeared first on The Motley Fool Australia.

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More reading

• 2 super ETFs for ASX investors to buy and hold
• Here’s why I’m confident my investment in the BetaShares Nasdaq 100 ETF will eventually pay off
• 3 superb ETFs for ASX investors to buy now
• Has the Betashares Nasdaq 100 ETF been a good buy so far in FY23?
• 3 high quality ETFs for ASX investors to buy next week

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Adobe Inc., Alphabet (A shares), Amazon, Apple, Microsoft, Nvidia, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, BETANASDAQ ETF UNITS, Microsoft, Nvidia, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2024 $420 calls on Adobe Inc., long March 2023 $120 calls on Apple, short January 2024 $430 calls on Adobe Inc., and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Adobe Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Nvidia. 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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