The Allkem Ltd (ASX: AKE) share price has started the week in a positive fashion.

In afternoon trade, the lithium miner’s shares are up 2% to $14.97.

This means the Allkem share price is now up 34% since the start of the year.

Can the Allkem share price keep rising?

The good news for investors is that one leading broker believes the Allkem share price can keep rising.

According to a note out of Bell Potter, its analysts have retained their buy rating with a slightly trimmed price target of $19.45.

This implies potential upside of 30% for investors over the next 12 months from current levels.

Why is the broker bullish?

Bell Potter was relatively pleased with Allkem’s performance during the first quarter. And while it notes that the Olaroz Stage Two expansion is behind schedule, it has only resulted in a modest decrease to its earnings estimates.

Commenting on the quarterly performance, the broker said:

September 2022 quarter lithium carbonate production of 3.3kt (BP est. 3.3kt) and sales of 3.7kt (BP est. 3.3kt). Unit costs were US$4,563/t (BP est. US$4,782/t) and realised prices US$40,317/t (BP est. $46,900/t). AKE now expect first production from the Stage 2 expansion in Q2 2023 (previously Q4 2022) and that total capex will be US$425m (up 12%). AKE held 1H FY23 price guidance of $47,000/t for Olaroz lithium carbonate.

Overall, Bell Potter remains very positive on the company’s outlook and believes it is well-placed to generate significant free cash flow thanks to a combination of strong prices and production growth.

We expect AKE’s cash generation to lift substantially into 2023 with ongoing strength in lithium demand, commodity prices and production growth. AKE is aiming to maintain 10% share of supply in a global lithium market experiencing unprecedented growth; it has a portfolio of growth projects, balance sheet strength and cash flow from existing projects to achieve this target. AKE’s portfolio is also diversified across lithium commodity type, mode of production, asset location and end-user country.

The post Broker says the Allkem share price can rise another 30% appeared first on The Motley Fool Australia.

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More reading

• Why Allkem, Bowen Coking Coal, Pantoro, and Redbubble are dropping today
• Brokers name 5 ASX lithium shares to buy now
• Allkem share price tumbles on quarterly update
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Allkem Limited. 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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Alongside the S&P/ASX 200 Index (ASX: XJO), the Commonwealth Bank of Australia (ASX: CBA) share price is having a cracker of a Monday so far this session. At present, CBA shares have gained a solid 1.28%, putting the largest ASX bank back over $100 a share.

That’s not quite as enthusiastic as the gains of the broader market at 1.7%. But it’s certainly not a move to turn one’s nose up at. CommBank shares are now up a robust 7.3% over the past month. However, CBA is pretty flat over the year to date, having notched up a loss of around 2% since the start of the year.

So what should investors do with their shares today, considering all of this?

Well, one expert reckons it might be time to do some pruning.

ASX expert says CBA is a sell

Jabin Hallihan, from ASX broker Morgans, recently penned some recommendations in an article for The Bull. He told investors that it might be time to consider doing some selling if they owned Commonwealth Bank shares.

CBA was amongst the ASX shares that Hallihan rated as a sell.

Here’s some of what he had to say on the banking giant:

On financial metrics, we believe the CBA is expensive compared to local and international peers. The share price was partially driven higher by an on-market buy-back. Our 12-month price target is $77. Investors may want to consider cashing in some gains.

Unfortunately for investors, many ASX brokers share similar sentiments. Perhaps the most positive right now is JP Morgan. As my Fool colleague Monica covered earlier this month, JP Morgan has a neutral rating on CBA shares. It commented that:

….we struggle to see CBA underperforming peers meaningfully as it offers the best leverage to rising rates and has the most defensive loan book, in our view.

However, it still views CBA as its least preferred major bank share.

Morgan Stanley is less excited again. It currently has a 12-month share price target of just $85.50.

Perhaps not what investors want to hear right now. But we shall see who’s right in time.

At present, the current CBA share price gives this ASX banking giant a market capitalisation of around $170 billion, with a dividend yield of 3.83%.

The post Own CBA shares? This expert says you ‘may want to consider cashing in some gains’ appeared first on The Motley Fool Australia.

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More reading

• Telstra shares: Buy, hold, or fold?
• Why is the BHP share price leaping 4% on Monday?
• Galan Lithium share price rockets 28% on ‘game changing’ update
• If I’d invested $1,000 in BrainChip shares a year ago, would I be happy right now?
• Why I’m not worried about Fortescue’s $9.6 billion decarbonisation plans smashing my dividends

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 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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Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Alphinity Investment Management portfolio manager Elfreda Jonker reveals which ASX shares she’ll happily sleep on for years to come.

The ASX share for a comfortable night’s sleep

The Motley Fool: If the market closed tomorrow for four years, which stock would you want to hold?

Elfreda Jonker: I know the last time when we chatted, I think we talked about Goodman Group (ASX: GMG) being one and I guess that’s probably still one, but I’ll give you another one today.

And that’s Metcash Limited (ASX: MTS).

So that’s quite probably a little bit more controversial to hold for four years, but really it’s a consumer staple company. Predominantly they do grocery, liquor, and [a] hardware wholesale business. It’s in the consumer staples space, which is generally speaking the more defensive side of the market. 

Effectively, why we like it is they’ve got these three verticals. The largest one is the food business. So they’ve got a really big IGA network, really benefited from that through COVID, but have actually managed to maintain that market share post-COVID as well. So they really have spent a lot of money improving those stores. The next leg is really they’re the largest independent liquor supplier in Australia, which is quite a relatively defensive business and that continues to do well.

Then the third vertical leg, which is the one we’re actually the most excited about, is that hardware business — particularly a business called Total Tools that they bought, which is definitely exposed to the construction environment and can be a little bit more cyclical. 

But the way Metcash has structured the business is that I think they’ve been very clear in driving a number of different growth strategies. They will be spending a lot of money and, particularly in this environment, we think it is a business that they can leverage a lot from higher food inflation. They’ve got a relatively fixed cost base. So anything that they can do in order to boost that top line of theirs, either through price or volume, is really, really positive for them if they can manage to maintain those costs. 

We think, overall, it’s a solid company, high-quality business model, and a very strong management team. We really rate the new CEO Doug Jones. And if you look at the balance sheet, it’s strong enough to really help drive this big cap-ex spend that they really want to do now. 

At the same time, we don’t see it as being super, super expensive. It’s definitely not, it’s trading on a forward PE ratio of 13 times and the five-year average is around 14. So it’s pretty much in line with the long term average, but we do think that you can still see nice earnings upgrades coming through over the next number of years given the strategies that they’ve put in place. 

That’s one that we would hold for the next four years. Let’s hope that it doesn’t come to that!

The post The ‘controversial’ ASX 200 share to stash for 4 years: expert appeared first on The Motley Fool Australia.

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More reading

• 2 ASX dividend shares with big yields I’d buy for income
• 3 ASX 200 shares I’d pounce on when the clouds clear: expert
• Top brokers name 3 ASX shares to buy next week
• Analysts say these beaten down blue chip ASX 200 shares can rise 50%
• Could buying Woolworths shares help ‘recession-proof’ your ASX portfolio?

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 recommended Metcash 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 Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is underperforming on Monday.

In early afternoon trade, the banking giant’s shares are trading flat at $25.55.

This compares to a 1.75% gain by the ASX 200 index this afternoon.

It also means that the ANZ share price is underperforming the rest of the big four banks, which are all up around 1% on Monday.

Why is the ANZ share price underperforming?

The softness in the ANZ share price today has been driven by the release of an update on the bank’s full year results after the market close on Friday.

According to the release, the company is expecting its second half statutory and cash profit to be impacted by a number of large/notable items.

In total, these notable items will result in an after tax charge of $113 million, which is the equivalent to ~2 basis points of CET1 capital at level 2.

What are the charges?

Management advised that these charges include a customer remediation charge of $43 million after tax.

While ANZ highlights that its remediation program is approaching completion, the charge in the half relates to revisions to a small number of customer remediation provisions and remediation program costs.

There is also a restructuring charge of $37 million after tax and an after tax charge of $33 million comprising the impact of business divestments or closures during the period, lease modifications, and merger and acquisition related costs.

Investors won’t have long to see what these charges mean for its results. ANZ is scheduled to release its FY 2022 results later this week on Thursday morning.

The post Why is the ANZ share price underperforming other ASX 200 banks today? appeared first on The Motley Fool Australia.

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More reading

• Is the ANZ share price a buy ahead of next week’s full-year results?
• ASX dividend shares ‘likely to remain attractive’ despite rising bank deposit rates: expert
• Own ANZ shares? Here’s what to expect from the bank’s FY22 results next week
• What’s driving the ANZ share price today?
• Top broker says ‘we struggle to see CBA underperforming peers’. 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 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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It’s been a rough few decades for the share price of Telstra Corporation Ltd (ASX: TLS) – which is currently trading under the name Telstra Group Ltd and ticker code TLSDA.

The company is in the middle of a restructuring operation, shaking up its business right down to its ASX listing, as The Motley Fool’s Sebastian reports.  

The move comes after the stock dumped around 50% of its value over 23 years. It’s fallen from around $9 per share in 1999 to trade at $3.795 today.

That’s also 10% lower than it was at the start of 2022. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has also fallen around 10% year to date.

So, with the stock having tumbled recently and a restructuring operation in progress, is now a good time to buy Telstra shares? Let’s see what experts think.

Is now a good time to buy Telstra shares?

Many experts are optimistic about the Telstra share price going forward. Though, not all would go so far as to rate it a buy.

Top broker Goldman Sachs, for one, has a neutral rating on the telecommunications giant. But it has slapped Telstra shares with a $4.40 price target, representing a potential 15% upside.

Bell Potter Securities advisor Chris Watt has also tipped the telco as a hold, noting its earnings are resilient. Watt said, courtesy of The Bull:

The future sale of its infrastructure assets is the next key catalyst in determining the strategic direction of the business going forward.

Telstra’s restructure will see the business split into four pillars: ServeCo, InfraCo Fixed, Amplitel, and Telstra International.

Back in August, the company’s chief financial officer Vicki Brady said the restructure will give the company the option to monetise the InfraCo business. Though, no sale has been decided upon.

JP Morgan believes selling a 49% stake in the asset could reap between $12 billion and $17 billion of after-tax profit, the Australian Financial Review reports.

Under such circumstances, $10.5 billion to $15.5 billion could be returned to shareholders, most likely through buybacks, the broker reportedly said. Such buybacks could, in turn, boost the telco’s dividends by 9%.

Speaking of dividends, Morgans is tipping Telstra to pay out 16.5 cents per share this financial year and next, my Fool colleague James reports.

That’s in line with the company’s financial year 2022 full-year offering. Though, that included three cents per share of special dividends.

Morgans is particularly bullish on Telstra shares, slapping the stock with an add rating and a $4.60 price target. That represents a potential 21% upside.

The post Telstra shares: Buy, hold, or fold? appeared first on The Motley Fool Australia.

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More reading

• Why is the BHP share price leaping 4% on Monday?
• Galan Lithium share price rockets 28% on ‘game changing’ update
• If I’d invested $1,000 in BrainChip shares a year ago, would I be happy right now?
• Why I’m not worried about Fortescue’s $9.6 billion decarbonisation plans smashing my dividends
• Analysts say these top ASX dividend shares are buys right now

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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 Goldman Sachs and JPMorgan Chase. The Motley Fool Australia has positions in and has recommended Telstra Corporation 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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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.

Unless your portfolio consists only of energy companies, if you look at the 2022 performance of your stocks, the majority are likely down. Since the start of the year, the three major indexes — S&P 500, Nasdaq Composite, and Dow Jones — are down over 23%, 32%, and 16%, respectively (as of October 20).

On one end, bear markets and down periods can present great opportunities for those with time on their side. On the other end, the drop in prices can present a lot of value traps. A value trap is a stock trading at a low price that looks like a good deal but is a bad investment. That’s why it’s important not to take a stock’s value at face value. Instead, use these metrics.

Price-to-earnings ratio

As an investor, the sooner you learn that cheap isn’t always a good value, the better. A $500 stock could be undervalued, and a $5 stock overpriced. For example, if a penny stock were priced at $5, it would be considered absurdly high by almost all standards. However, if a stock like Booking Holdings were priced at $500 instead of its current price around $1,775, it might be the deal of the century right now.

You don’t want to buy lots of shares because they’re “cheap,” only to be investing in a failing business. Instead of looking at price alone, investors can use the price-to-earnings (P/E) ratio to help determine whether a stock is undervalued or overvalued. You can find a company’s P/E ratio by dividing its current stock price by its earnings per share (EPS). A company’s P/E ratio tells you how much you’re paying for each $1 of its earnings.

To determine a stock’s value, you can’t look at its P/E ratio by itself; you need to compare it to similar companies in its industry. Some industries have naturally low P/E ratios (like banking), and some have naturally high P/E ratios (like biotechnology). So it can be misleading to compare companies across industries. If you compare similar companies and notice a company’s P/E ratio is lower than the others, it could mean it’s undervalued and vice versa.

Payout ratio

When a company declares its dividend for the year, it does so as a dollar amount per share. Because of this, a stock’s dividend yield — found by dividing its yearly dividend by its current stock price — can often fluctuate. For example, if a company’s yearly dividend is $2 and its stock price is $100, its dividend yield would be 2%. If the stock price dropped to $50, the dividend yield would be 4%.  

With prices dropping, dividend yields are naturally increasing, leading to dividend traps. A dividend trap is a company with a too-good-to-be-true dividend yield that’s unsustainable and likely doesn’t warrant the investment.

Instead of just looking at a company’s dividend yield, you should look at its payout ratio, which lets you know how much of its earnings it’s paying out in dividends. You can find the payout ratio by dividing a company’s yearly dividend by its EPS. Generally, you can find these numbers on your brokerage platform (the easier route) or within a company’s financial statements.

If a company’s payout ratio is more than 100%, it’s paying out more than it’s bringing in. Which, needless to say, isn’t a good thing. A “good” payout ratio is also relative to the industry, but between roughly 30% and 50% is a good starting point. Too low, and it’s not quite as shareholder-friendly. Too high, and it could mean it’s unsustainable or a company isn’t reinvesting enough back into the business.

Use this time to your advantage

With many companies trading at low prices we haven’t seen in quite some time, now could be a chance for investors to go discount shopping and grab shares of some great companies. However, it’s still important to focus on the fundamentals and not be lured in by low prices or high dividend yields. A low price doesn’t mean much if the price goes lower, and a high dividend yield doesn’t mean much if you lose way more in value than you earn in payouts.

A couple of extra steps can go a long way.  

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

The post Don’t take a stock’s value at face value — Use these metrics instead appeared first on The Motley Fool Australia.

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More reading

• Why is the BHP share price leaping 4% on Monday?
• Why is the Novonix share price surging 16% higher today?
• Galan Lithium share price rockets 28% on ‘game changing’ update
• 3 ASX mining shares that turned a $10,000 investment into $500,000
• Is the Vanguard Australian Shares (VAS) ETF the most popular ETF to buy?

Stefon Walters 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 Booking Holdings. The Motley Fool Australia has recommended Booking Holdings. 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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The Novonix Ltd (ASX: NVX) share price is having another strong day.

On Monday morning, the battery materials and technology company’s shares are up 16% to $2.56.

This means the Novonix share price is now up 31% since this time last week.

Why is the Novonix share price on fire right now?

Investors have been scrambling to buy Novonix’s shares in recent sessions thanks to the release of a major announcement last week.

That announcement revealed that its Anode Materials division has been selected to enter negotiations to receive US$150 million (A$240 million) in grant funding from the US Department of Energy. Under the terms of the grant, the government funds must be at least matched by the recipient.

This is part of a major government funding package which aims to strengthen the North American battery supply chain amid surging demand and growing calls to onshore these critical industries.

Management notes that these funds would be dedicated to the construction of a 30,000 tonnes per annum (tpa) US manufacturing facility, including site selection, plant layout, and engineering design with capability for additional expansion.

What else?

Also giving the Novonix share price a lift has been news that a leading broker has become bullish.

According to a note out of Morgans, its analysts have upgraded the company’s shares to a speculative buy rating and lifted their price target by $1.00 to $3.11.

Even after its strong recent gains, this implies potential upside of over 21% for investors over the next 12 months.

The broker made the move in response to the US government grant. And while its analysts acknowledge that Novonix’s project costs are greater than it expected, they are overlooking this due to the positive long term outlook for anode prices.

The post Why is the Novonix share price surging 16% higher today? appeared first on The Motley Fool Australia.

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• Novonix share price falls after ASX ‘please explain’
• Here are the top 10 ASX 200 shares today
• Why Challenger, Novonix, Piedmont Lithium, and Woodside shares are racing higher
• Novonix share price rockets 26% on $240m US Government grant news
• Why is the Novonix share price stuck on standby 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 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 Galan Lithium Ltd (ASX: GLN) share price is storming ahead today.

Galan shares are up nearly 18% at the time of writing, currently fetching $1.495 apiece. However, in earlier trade, Galan shares soared more than 30% to $1.66 each before retreating.

Let’s take a look at why Galan shares are exploding today.

‘Amazing’ news

Galan Lithium advised today of a “spectacular” increase to its mineral resource estimate at the Hombre Muerto West Project in Argentina.

The new resource estimate has leapt 2.5 times to 5.8 million tonnes of lithium carbonate equivalent (LCE) at 866 milligrams per litre (mg/L) lithium.

Galan said the measured lithium resource at the site is now more than 4.4 million tonnes of LCE at 883 mg/L lithium.

The company entered a trading halt last week ahead of this “significant” resource update.

Commenting on the news, Galan managing director Juan Pablo described the result as “amazing”. He added:

Even the Galan team has been amazed by the scale of this updated Resource for Hombre Muerto West.

The outcome is game changing in terms of the step-up in the overall technical and economic potential of this world-class lithium brine asset.

Galan said the project retains its “high grade, low impurity” profile. The revised estimate was completed by the Australian team at SRK Consulting.

A definitive feasibility study is due for completion by the first quarter of 2023.

Share price snapshot

Galan Lithium shares have shed more than 22% year to date, although they have gained nearly 14% in the past month. In the last year, Galan shares have rocketed 34%.

For perspective, the S&P/ASX 200 (ASX: XJO) has fallen 8% in the past year.

Galan Lithium has a market capitalisation of about $461 million based on the current share price.

The post Galan Lithium share price rockets 28% on ‘game changing’ update appeared first on The Motley Fool Australia.

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More reading

• If I’d invested $1,000 in BrainChip shares a year ago, would I be happy right now?
• Why I’m not worried about Fortescue’s $9.6 billion decarbonisation plans smashing my dividends
• 5 things to watch on the ASX 200 on Monday
• Demolished ASX 200 materials shares: Why this fundie is buying the 30% dip
• Why did the IAG share price get smashed today?

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 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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So far, this year has been rough for many of the market’s favourite ASX mining shares. But looking to the longer term, the materials sector has been a strong performer.

Despite posting a 7% year-to-date fall, the S&P/ASX 200 Materials Index (ASX: XMJ) has gained around 50% over the last 10 years. Meanwhile, some ASX mining shares have posted gains that dwarf the index’s performance.

Indeed, an investor who bought these three ASX mining shares in October 2012 would be laughing all the way to the bank today.

Keep reading to discover which ASX mining shares have turned $10,000 into more than $500,000 over the last decade.

3 ASX mining shares that turned $10,000 into $500,000

If you ever needed a reminder of the power of investing, you’ve come to the right place.

ASX mining company	Gains over the last decade	Recent value of $3,333 invested
Chalice Mining Ltd (ASX: CHN)	2,606%	$85,482
AVZ Minerals Ltd (ASX: AVZ)	7,700%	$259,974
Liontown Resources Ltd (ASX: LTR)	4,550%	$154,984

It’s been a good 10 years for these ASX mining shares – and anyone who invested in them in 2012.

A $10,000 investment spread across the three stocks back then would have been worth $500,440 at Friday’s close.

The biggest gains of the last decade came from AVZ Minerals. Interestingly, the company hasn’t traded since May amid an ownership dispute over the Manono Lithium Project.

However, before the stock was frozen it was trading at 78 cents – up from around 1 cent this time 10 years ago. Back then the company was known as Avonlea Minerals. It was renamed AVZ Minerals in December 2012.

The Liontown share price was the next best performer. Stock in the lithium favourite lifted from 4 cents in October 2012 to $1.86 as of Friday afternoon.

Finally, the Chalice Mining share price has lifted from around 17 cents this time last decade to its previous close of $4.36.

The key takeaway

While volatility has reigned supreme this year, there are likely plenty of winners still to be found among ASX mining shares.

Indeed, the ASX has ultimately gained over the years, despite plenty of short-lived downturns such as that experienced in 2022.

The post 3 ASX mining shares that turned a $10,000 investment into $500,000 appeared first on The Motley Fool Australia.

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More reading

• Broker names the ASX 200 mining shares to buy now
• Here are the top 10 ASX 200 shares today
• Brokers name 5 ASX lithium shares to buy now
• Up 22% in a week, will Tesla’s results slow the Liontown share price surge
• Here are the top 10 ASX 200 shares 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 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 exchange-traded funds (ETFs) on the ASX, the Vanguard Australian Shares Index ETF (ASX: VAS) certainly has a strong presence.

For one, it has the coveted Vanguard name. Vanguard is a US-based asset manager. It has a few unique distinctions to its name. The first is that Vanguard’s founder, the late John Bogle, is widely credited with ‘inventing’ the concept of an index fund in the first place.

Back in the 1970s, Bogle initiated the world’s first index fund, tracking the US S&P 500 Index. Today, there are countless S&P 500 index funds, but Vanguard’s will always be the first.

Secondly, Vanguard, unlike almost all other ETF providers, is a not-for-profit organisation. Bogle’s vision was an asset manager owned by its investors, with profits cycled back into ever-lower fees. This is a vision intact today.

It’s for these two reasons that the legendary investor Warren Buffett had the highest of praises for Bogle. When Bogle died in 2019, CNBC reported that Warren Buffett had this to say about the man:

Jack did more for American investors as a whole than any individual I’ve known… A lot of Wall Street is devoted to charging a lot for nothing. He charged nothing to accomplish a huge amount.

High praise indeed.

So Vanguard’s Australian Shares Index ETF was always going to be a heavy hitter in the field of ASX ETFs. But is it the most popular ETF on the ASX?

Is the Vanguard Australian Shares ETF the ASX’s first choice?

Well, the answer is yes.

As of 30 September, Vanguard reported that its Australian Shares ETF had a size of $10.759 billion. In the language of ETFs, this means that it has a total of $10.759 billion in funds under management. That’s investors’ dollars in the fund.

Its closest rivals can’t even come close to competing with this. The nearest index fund rivals are the iShares S&P 500 ETF (ASX: IVV) and the Vanguard MSCI Index International Shares ETF (ASX: VGS). These funds have, on the latest data, $4.933 billion and $4.641 billion in funds under management respectively.

When it comes to ASX-based index funds, the gap is wider still. The SPDR S&P/ASX 200 Fund (ASX: STW), the oldest ASX index fund on the share market, commands $4.408 billion in funds under management at present.

The iShares Core S&P/ASX 200 ETF (ASX: IOZ) musters $3.25 billion. The BetaShares Australia 200 ETF (ASX: A200), currently the ASX’s cheapest Australian index fund, has $2.458 billion of its investors’ dollars under its stewardship.

So we can unequivocally say that the Vanguard Australian Shares Index ETF is Australians’ first choice when it comes to exchange-traded funds. It’s a mighty large gap too.

The post Is the Vanguard Australian Shares (VAS) ETF the most popular ETF to buy? appeared first on The Motley Fool Australia.

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More reading

• These could be the ETFs to buy for big dividends
• The Vanguard Australian Shares ETF has doled out record dividends this year. Here’s why
• The Vanguard Australian Shares Index ETF dividend is being paid today. Here’s the lowdown
• If I’d invested $5,000 in Vanguard’s VAS ETF at the start of 2022, here’s what I’d have now
• Why dividends matter

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 Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF and iShares Trust – iShares Core 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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