Exchange-traded funds (ETFs) can be very effective to passively grow wealth over the long term. It can be hard to know which investments to go for, so buying a whole bunch of shares or other assets at once could make things easier.

But then there’s still the tricky decision of choosing which ETFs to go for.

There are some index funds that focus on a particular market such as the S&P/ASX 300 Index (ASX: XJO). This is tracked by the Vanguard Australian Shares Index ETF (ASX: VAS). But there are others that may be focused on particular attributes or offer wide diversification across different asset classes.

I think the two ETFs below offer investors a good combination of both diversification and growth potential.

Vanguard Diversified High Growth Index ETF (ASX: VDHG)

This ETF is probably one of the most diverse options on the ASX.

It offers “low-cost access to a range of sector funds, offering broad diversification across multiple asset classes”. It invests mainly in “growth assets” and is designed for investors with “a high tolerance for risk who are seeking long-term capital growth”.

It targets a 10% allocation to bonds and 90% to shares.

Bonds are essentially debt that governments and businesses use to fund their operations and projects. It’s essentially how many governments, such as Australia and the US, manage to keep operating and paying for things despite running budget deficits.

The bond funds that the VDHG ETF invests in are global bonds and Australian bonds.

In terms of the shares, just over a third of the VDHG ETF is invested in ASX shares, 5% is invested in ‘emerging market’ shares (think: India, Brazil etc.), 6.4% is invested in small international company shares, and the rest (around 42%) in larger international shares from ‘western’ markets.

As you can guess, the Vanguard Diversified High Growth Index ETF gives underlying exposure to many hundreds of businesses.

VanEck MSCI International Quality ETF (ASX: QUAL)

This investment is much more focused on shares. It owns shares in around 300 businesses that are listed around the world.

While around 75% of the allocation is to US shares, the following countries have weightings of more than 0.5%: Switzerland, the UK, Japan, the Netherlands, Denmark, Ireland, Canada, France, Sweden, and China.

However, aside from offering diversification, a key focus of this ETF is to invest in companies that score well based on three fundamental factors: high return on equity, stable year-on-year earnings growth, and low financial leverage.

In other words, the VanEck MSCI International Quality ETF is invested in businesses that earn good profit compared to how much shareholder money is in the business. They typically generate consistent profit growth, and they don’t have much debt.

While there are 300 holdings, the top ten positions make up 31.5% of the total allocation. Those high-quality names are: Microsoft, Apple, Johnson & Johnson, UnitedHealth, Nvidia, Meta Platforms, Alphabet (A and C class shares), Visa, and Nestle.

Despite the heavy decline in 2022, the QUAL ETF has delivered an average return per annum of 13.1% over the last five years, outperforming the MSCI World excluding Australia Index return of 10.1% per annum.

The post I think these 2 ETFs are long-term buys appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why analysts say these top ETFs are buys
• Expert names ASX share that could fly 67% higher
• Here are 2 buy-rated ASX ETFs for casting a wider net during uncertainty
• How did the Vanguard Australian Shares Index ETF perform in June?
• Here are 2 high quality ETFs analysts rate as buys

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Apple, Microsoft, Nvidia, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and UnitedHealth Group and has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Apple, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/3COYs4M

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, Redpoint Australian Equity Income Fund portfolio manager Max Cappetta reveals how he would deal with three ASX shares that have had a shocker this year.

Cut or keep?

The Motley Fool: Now let’s see what you think about three ASX shares that used to be darlings but have fallen considerably off the perch this year.

First is WiseTech Global Ltd (ASX: WTC), which has dropped 30% year-to-date. You’ve already spoken about how WiseTech is a buy for you at the moment. Anything further to add?

Max Cappetta: Because it has fallen this far, we think that it is probably trading at a “more attractive” level than it has in the past. 

Investors should bear in mind that that thematic of higher interest rates, therefore impacting the valuation of some of these stocks, is still there. So even though it has fallen, it’s more attractive. If it falls further from here, then it does in fact become quite attractive for the growth profile that the company has put forward it can achieve.

MF: Domino’s Pizza Enterprises Ltd (ASX: DMP) shares have more than halved since September. What are your thoughts?

MC: I think the disappointing aspect that we’re seeing through our quantitative analysis of their financials, is really the weakening of their profit margins over recent years. 

We know that revenues have grown quite strongly for the company over the past few years. And we do know that the promise of their global growth ambitions, really, was to bring that incremental profit growth. And I think there’s just been disappointment about how that has actually been delivered and whether, right here right now, they can get back onto that path. 

If there is that uncertainty, then that’s just going to depress the premium that investors are willing to pay for maybe less certainty around the growth of that company. 

We do know just in recent weeks the company has moved to add a service delivery fee to try and combat some of the higher costs within the business. But, for us, that is a little bit of a stop-gap measure. What we still need to see is an underlying improvement in their operating efficiency, to really justify a much larger rebound from these price levels.

MF: And the quick-service restaurant industry is so competitive and commoditised, isn’t it? 

MC: Yeah, absolutely. It’s that substitution effect, that, if I’m not going to take that one, I’ve got plenty of other options, both in terms of freshly made and also frozen varieties through the supermarkets as well.

MF: Sims Ltd (ASX: SGM) has lost 40% of its value since April. What do you think?

MC: Sims is a real interesting one here. I think for people that might recognise the name, they’ll know it as a metal recycling business. But I think maybe what is less well known is the fact that it really is at the forefront of this global drive to a more sustainable economy. 

The company was founded back in the early 1900s and has really been mainly focused on trading in ferrous metals — iron and steel — as well as other metals, such as copper, aluminium, lead, zinc, and nickel. But I think the interesting element is the diversity that they’re now building, particularly in North America, around some of their electronics recycling and also their curbside recycling businesses.

Now I do take that it has been really a long-term underperformer relative to the market over many years. And that has been really in line with the volatility of iron and steel prices in the marketplace, which impacts the demand for iron, which is one of the key things that they obviously purchase and then recycle. 

Now, I think this could be changing over the years ahead as the company diversifies into these recycling activities in a more broader sense. And as I said before, that ongoing focus on the transition to more sustainable global practices should provide it a tailwind.

Looking at it from an income perspective, it’s trading at a gross dividend yield of approximately 4%, which I think still remains attractive relative to interest rates available, notwithstanding that interest rates are on the way up, but we’re only at around 1.5% there at the moment. 

It’s going to deliver a record profit in financial year 2022 of about $2 per share. Now we do note that expectations in 2023 are that profits will weaken slightly, back to around $1.50 per share, but this is still well ahead of the $1 per share that it made in 2018. And the share price is actually trading at slightly below where it was in 2018. So from a valuation perspective, we think that it is attractive, and maybe some people are staying away from the company due to its volatility. But as the business diversifies into these recycling and sustainable processes outside of the metals industry or related to it, they’re going to be able to provide a more diversified and consistent profit growth in the years ahead.

The post What I’d do with 3 ASX shares that have plunged this year: expert appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX shares today
• ‘Pretty attractive’: Expert reveals 3 ASX shares to buy right now
• Has a turnaround already begun for ASX tech shares? Experts reveal the outlook for FY23
• Broker gives its verdict on the WiseTech share price
• Leading brokers name 3 ASX shares to buy today

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 positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/efYi9WT

Are you searching for dividend shares to buy? Then take a look at the two listed below that have been given buy ratings.

Here’s what you need to know about these ASX 200 dividend shares:

Coles Group Ltd (ASX: COL)

This supermarket giant could be an ASX 200 dividend share to buy.

While many retailers are struggling in the current environment, Coles’ sales have been growing and look set to continue doing so thanks to its defensive qualities, strong market position, and positive exposure to rising inflation.

Combined with its focus on cutting costs with automation and efficiencies, this bodes well for dividends in the coming years.

Analysts at Morgans are very positive on the company and currently have an add rating and $20.65 price target on its shares.

As for dividends, the broker is forecasting fully franked dividends of 61 cents per share in FY 2022 and then 64 cents per share in FY 2023. Based on the latest Coles share price of $18.48, this will mean yields of 3.3% and 3.5%, respectively.

South32 Ltd (ASX: S32)

Another ASX 200 dividend share to look at is South32. It is diversified mining and metals company producing a range of commodities. This includes alumina, aluminium, bauxite, coal, copper, manganese, nickel, and silver across operations.

Macquarie is a big fan of the company and has named it as one of its preferred picks in the resources sector. This is thanks largely to its strong free cash flow generation. Earlier this week the broker retained its outperform rating and $6.00 price target on the miner’s shares.

In respect to dividends, the broker is forecasting fully franked dividends per share of 34.4 cents in FY 2022 and 40.5 cents in FY 2023. Based on the current South32 share price of $3.50, this represents huge yields of 9.8% and 11.6%, respectively.

The post Analysts name 2 ASX 200 dividend shares to buy appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• South32 share price backtracks amid sale of royalties
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 supermarket shares lead as household spending jumps
• Here are the 3 most heavily traded ASX 200 shares on Tuesday

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 positions in and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/of8Q54R

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) fought hard and carved out a small gain. The benchmark index rose 0.2% to 6,621.6 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to edge lower

The Australian share market is expected to edge lower on Thursday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 2 points lower this morning. On Wall Street, the Dow Jones was down 0.7%, the S&P 500 fell 0.45%, and the NASDAQ dropped 0.15%.

US inflation hits 40-year high

Investors were selling stocks on Wall Street overnight after US inflation came in hotter than expected. According to CNBC, the consumer price index increased 9.1% from a year ago during the month of June. This was a 40-year high and above the 8.8% Dow Jones estimate. This appears to counter claims that inflation may be peaking.

Oil prices mixed

Energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) will be on watch after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is up 0.25% to US$96.09 a barrel and the Brent crude oil price is down 0.05% to US$99.43 a barrel. News of a build-up in US stockpiles was largely offset by the big inflation report.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a decent day after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.45% to US$1,733.3 an ounce. A softer US dollar boosted the safe haven asset.

Bega Cheese rated as a hold

The Bega Cheese Ltd (ASX: BGA) share price could be fully valued according to analysts at Bell Potter. This morning the broker put a hold rating and $3.80 price target on the dairy company’s shares. Bell Potter said: “Given the ongoing dislocation in farmgate pricing and ingredient pricing we have tempered our long-term ROIC target for BGA resulting in our target price falling to $3.80ps (prev $4.20ps).”

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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX shares today
• Why Galileo Mining, Platinum, Sezzle, and Woodside shares are dropping
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why has the Aristocrat share price increased 17% in two months?
• These were the 5 top performing ASX energy shares of FY22

from The Motley Fool Australia https://ift.tt/dRF4Yxy

Are you looking for dividend shares to buy? If you are, then you might want to look at the ASX 200 shares listed below.

Here’s why these ASX dividend shares could be in the buy zone in July:

Westpac Banking Corp (ASX: WBC)

The first ASX 200 dividend share that could be in the buy zone is Westpac.

Australia’s oldest bank has been tipped as a buy by analysts at Citi. Partly due to its plan to target a reduced cost base of $8 billion by FY 2024, the broker sees Westpac “delivering the strongest EPS growth in the sector” in the coming years. This could bode well for dividend payments.

In fact, Citi is forecasting fully franked dividends of 123 cents per share in FY 2022 and 155 cents per share in FY 2023. Based on the current Westpac share price of $20.16, this will mean yields of 6.1%, 7.7%, respectively.

The broker also sees plenty of upside for the bank’s shares, with its buy rating and $29.00 price target.

Woolworths Group Ltd (ASX: WOW)

Another ASX 200 dividend share that could be in the buy zone is this retail giant.

Woolworths recently released its third-quarter update and revealed strong sales growth that was ahead of the market’s expectations. This and its positive start to the fourth quarter went down well with the team at Goldman Sachs. Pleasingly, its analysts expect this positive trend to continue over the coming years. It said earlier this week:

We forecast [a sales] CAGR of 6.6% and underlying NPAT of 14.1% over FY22-24e, with key driver being market share gain of AU Foods business at comp sales growth of FY23/24 8.8% and 6.6% respectively driven by effective cost-price pass through and additional mix improvement with relatively stable volume growth.

In respect to dividends, Goldman Sachs is forecasting fully franked dividends per share of 96 cents in FY 2022 and $1.18 in FY 2023. Based on the current Woolworths share price of $37.16, this will mean yields of 2.6% and 3.2%, respectively.

Goldman has a buy rating and $40.50 price target on its shares.

The post Analysts name 2 ASX 200 dividend shares to buy now appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• $264 million! The 10 highest-paid CEOs on the ASX
• ‘Pretty attractive’: Expert reveals 3 ASX shares to buy right now
• Here are the top 10 ASX shares today
• ASX 200 supermarket shares lead as household spending jumps
• Are falling BNPL shares pushing the ASX banks higher today?

Motley Fool contributor James Mickleboro has positions in 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.

from The Motley Fool Australia https://ift.tt/KTygBeY

If you’re searching for growth shares to buy, then it could be worth considering the two listed below.

Here’s why experts are saying that these ASX growth shares are in the buy zone now:

Readytech Holdings Ltd (ASX: RDY)

The first ASX growth share to look at is Readytech. It owns a portfolio of enterprise software businesses across several market verticals such as higher education and local government.

The team at Goldman Sachs note that these businesses operate in market niches that are under-served by both large and small enterprise software competitors. This has been supportive of growing recurring revenues and very low levels of churn.

Its analysts commented:

In our view, RDY will continue to grow mid-teens organically while making accretive acquisitions (such as IT Vision), with profitability underpinned by solid software metrics including low churn at ~3% and high LTV/CAC.

RDY serves defensive end markets (e.g. higher education, local government) and has high recurring revenue (>85%) which should protect the company’s earnings profile in an economic downturn.

Goldman Sachs has a buy rating and $4.60 price target on ReadyTech’s shares.

ResMed Inc (ASX: RMD)

Another ASX growth share that has been rated as a buy is ResMed. It is a sleep treatment focused medical device company with an industry-leading portfolio of products.

Citi is a fan of the company and notes that the company has announced plans to expand its growing software business into Europe via the acquisition of Medifox Dan for US$1 billion. It also highlights that ResMed’s shares are trading on lower than average multiples, potentially creating a buying opportunity for investors.

Our FY23-24E EPS increases by <1% and Target Price reduces to $34.50 (from $35.50) as a result of incorporating Medifox Dan acquisition into our forecasts. RMD is currently trading at PE of ~28x FY24E, below historical avg of ~32x.

Maintain Buy. This is RMD’s third major acquisition in the SaaS segment after Brightree (Apr’16) and MatrixCare (Nov’18). ResMed paid US$800m or ~19x EBITDA for Brightree and ~US$750m or 25x EBITDA for MatrixCare. The Medifox Dan acquisition should allow RMD to expand its SaaS business footprint outside the U.S.

Citi has a buy rating and $34.50 price target on ResMed’s shares.

The post Experts name 2 ASX growth shares for investors to buy now appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#FFF”, ‘color’, ‘#fff’);
})()

More reading

• Broker names 2 more blue chip ASX 200 shares to buy in July
• What’s the outlook for ASX 200 healthcare shares in FY23?
• Why did the ResMed share price finish down in FY22?
• 4 ‘quality’ ASX shares to buy in scary times: expert
• Here’s how ASX healthcare shares performed in FY22

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 Readytech Holdings Ltd and ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed Inc. The Motley Fool Australia has recommended Readytech Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/T1es4kh

The Temple & Webster Group Ltd (ASX: TPW) share price finished the day almost 11% higher at $3.29 on Wednesday.

Investors bid up shares in the online homewares retailer on no news. Nonetheless, today’s gain is welcome following a period of heavy downside for the company.

The Temple and Webster share price is now trading almost 70% lower this year to date.

In broader market moves, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) also closed 1.18% higher today.

Let’s see what might have been going on today.

Temple & Webster shares spike on Wednesday

Investors were constructive on cyclical shares today with the Consumer Discretionary benchmark catching a bid.

A good chunk of the index finished either flat or in the green. For Temple and Webster, investors bid the company up on a volume more than 216% of the share’s four-week trading average.

With no news coming from the company, it could be that investors were bottom fishing in the consumer discretionary space in search of bargains.

Cyclical shares such as Temple & Webster have been beaten down in 2022 amid a broad market selloff and softening economic data from the US.

Recently, the US consumer confidence index fell to a 16-month low, as concerns over inflation and economic recession loom.

Recent data needs more clarification

Meanwhile, the Westpac-Melbourne Institute Index of Consumer Sentiment fell 3% in July, down to 83.8 from 86.4 in June.

The index has slipped almost 20% from December and has kept declining every month to July, Westpac found.

However, consumer spending has “likely continued to increase” in Australia during FY22 into FY23, according to Focus Economics.

This is “supported by accumulated savings, as suggested by a tight labor market in April and May and retail sales growth in April,” it says.

“The economy looks set for a healthy expansion this year. Solid labor market dynamics, pent-up spending and faster wage growth should feed household spending.”

So, despite underlying fears of inflation or recession, investors look to be handling Temple & Webster shares accordingly.

The post Temple & Webster shares price jumps 11% after hitting recent lows appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#FFF”, ‘color’, ‘#fff’);
})()

More reading

• Does the FY23 outlook make ASX retail shares look like bargains?
• Why are these 2 ASX ecommerce shares hitting two-year lows?
• Why I think the Temple & Webster share price is on sale right now
• Temple and Webster shares tumble 8% amid bleak US consumer confidence
• Where to find value in growth? Here are 2 ASX shares I’d buy in July

Motley Fool contributor Zach Bristow 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 Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/i25NU4h

The Rio Tinto Limited (ASX: RIO) and BHP Group Ltd (ASX: BHP) share prices finished in the red today.

Rio Tinto and BHP shares fell 1.37% and 1.44% respectively. For perspective, the S&P/ASX 200 Index (ASX: XJO) jumped 0.23% today.

So what went on with the Rio Tinto and the BHP share prices?

Tough day for commodity prices

Rio and BHP are both copper and iron ore producers among other metals. In global markets overnight, copper fell to US$3.3 a pound. This is the lowest level in 20 months, according to data from trading economics.

COVID-19 BA.5 sub-variant lockdowns in China, the “top consumer” of copper, also appeared to weigh on investors’ minds.

In a research note today, ANZ economist Madeline Dunk said copper “led” the base metals sector lower. She added:

Expectations of another increase in inflation rose ahead of the release of US CPI data. This was exacerbated by further lockdowns in China.

Copper ended the session down more than 3% to hit its lowest level since November 2020.

Goldman Sachs analysts also cut their price target on copper, according to mining.com. Analyst Nicholas Snowdown cited factors including the dollar and global energy squeeze, according to the publication.

Meanwhile, iron ore prices also plunged to US$107.50 per tonne, down 4.44%. China is also a major importer of iron ore. Fears of weaker demand from China appear to have driven down the price.

Share price snapshot

The Rio share price has shed nearly 27% in the past year and lost 6% year to date.

Meanwhile, the BHP share price has lost 18% in the past year and 0.09% year to date.

Both Rio and BHP are big dividend payers, as my Foolish colleague James has highlighted recently.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has shed nearly 10% in a year.

The post Why did the Rio Tinto and BHP share price struggle today? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Analyst names 3 reasons to be bullish on the BHP share price
• $264 million! The 10 highest-paid CEOs on the ASX
• Investors were seeking out ASX shares in June. Here’s why
• Here’s the outlook for the Rio Tinto share price in FY23
• Where is the BHP dividend heading through to FY25?

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.

from The Motley Fool Australia https://ift.tt/0HDn1Lr

ASX lithium shares were the darling child of the commodity sector throughout FY22, with prices for the battery metal reaching all-time highs.

Despite a bearish note from Goldman Sachs on its outlook for lithium, prices have remained buoyant. Plus, there’s still talk of lithium demand outweighing supply for some time into the future.

Below is a graph showing some of the best and worst-performing ASX lithium shares of FY22.

Let’s consider them more closely.

Core Lithium (ASX: CXO)

The Core Lithium share price was one of the ASX’s top performers in FY22, posting a triple-digit gain.

The company executed a binding agreement with the electric vehicle juggernaut Tesla last financial year, driving investors’ interest in the share.

The agreement sees Core supply 110,000 tonnes of lithium spodumene concentrate to Tesla from the company’s Finnis project in Northern Territory.

Core Lithium also received final assays from the Finnis project in May and advised that resource drilling had commenced at tenements on the site.

The share has traded down in recent weeks but has still managed to record a 289% gain for the past 12 months.

Pilbara Minerals Ltd (ASX: PLS)

Shares of Pilbara Minerals were also strong performers in FY22. The company’s quarterly results were a standout, with Pilbara noting it had upped production by 54% over the three months to June 2022.

Moreover, its recent Battery Metals Exchange (BMX) saw a lithium price of US$7,000 per dry metric tonne in a digital auction.

This was underscored by strong demand and a “continued healthy outlook into the foreseeable future”, Pilbara management noted.

The share has a buy rating from Ord Minnett, with its analysts valuing Pilbara Minerals shares at $3.50 each. That’s a healthy 48% upside on today’s closing price of $2.36.

IGO Ltd (ASX: IGO)

Diversified miner IGO saw substantial gains in FY22 but these were pared back towards the end of the financial year.

The company’s share price reached a 52-week high of $15 on 4 April and has been trending lower ever since.

After completing its Western Areas Transaction, investors were still keen to sell the company’s shares. They now trade back in line with September 2021 levels.

As such, the IGO share price is down 15% year to date after a bullish run in FY22.

Despite this, it still remains 14% higher for the past 12 months and is well above the returns of the benchmark S&P/ASX 200 Index (ASX: XJO) which dropped around 10%.

Analysts at Macquarie reckon IGO is a buy and value the company at $17 per share. That’s well above its closing price today of $9.72.

Mineral Resources Ltd (ASX: MIN)

At the other end of the spectrum, Mineral Resources left investors searching for more in FY22. The company’s share price started the year at $63.01 and ended at around $46.

It’s trading down 25% in the past 12 months with its most recent downtrend starting on 30 May.

Following the release of the bearish note on the lithium industry from Goldman Sachs, many lithium shares – including Mineral Resources – were swept away.

Gains quickly dried up in the sector but several players were able to either withstand or recover from the slump.

Yet, for Mineral Resources, not so much. It continued to trade south and hasn’t regained support since.

It is down 22% in the past month, extending its losses to 21% this year to date.

The post 3 ASX lithium shares that flew in FY22, and 1 that sank appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX shares today
• Why has the Pilbara Minerals share price shot up 5% today?
• How did the Core Lithium share price gain 300% in the 2022 financial year?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• $264 million! The 10 highest-paid CEOs on the ASX

Motley Fool contributor Zach Bristow 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.

from The Motley Fool Australia https://ift.tt/MWqtJxG

The Chalice Mining Ltd (ASX: CHN) share price finished in the green on Wednesday after a positive update from fellow miner Venture Minerals Ltd (ASX: VMS).

Chalice Mining shares closed 3.66% higher at $3.68 apiece, after hitting an intraday high of $3.70.

Let’s take a look at what was released to the ASX earlier today.

Chalice Mining earns majority interest in South West Project

Investors rallied up the Chalice Mining share price after the company received a 51% stake in Venture Minerals’ South West Project.

According to the Venture Minerals announcement, Chalice Mining received results from its recently completed auger soil geochemistry program at the site, identifying two new Ni-Cu-PGE target areas.

Ni-Cu-PGE stands for a number of different minerals. These are nickel (Ni) and copper (Cu) while PGE represents ‘platinum group elements’. These consist of: palladium (Pd), iridium (Ir), osmium (Os), rhodium (Rh), and ruthenium (Ru).

The new targets are supported by underlying geology that is said to be consistent with the presence of ultramafic rocks.

Furthermore, it contains coincident and untested airborne electromagnetic and magnetic anomalies at the Thor target – a 20-kilometre-long magnetic anomaly within the South West project.

Following the auger soil geochemistry program and recently completed maiden drilling program, Chalice Mining met its $1.2 million expenditure requirement to attain a 51% interest.

Should management choose to spend another $2.5 million on exploration activities by July 2024, the Chalice interest will increase to 70%.

Venture Minerals managing director Andrew Radonjic commented:

I am very pleased with the progress made to date at Thor. With Chalice now having met their 51% expenditure milestone ahead of schedule, Venture looks forward to working with Chalice in the future on our South West project.

Chalice Mining share price summary

Over the last 12 months, Chalice Mining shares have dropped almost 50% and are down 60% year to date.

The company’s share price reached a 52-week low of $3.37 in late June before rebounding higher.

Chalice Mining commands a market capitalisation of roughly $1.38 billion.

The post What had the Chalice Mining share price glowing today? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX shares today
• Why is the Chalice Mining share price racing higher today?
• Top broker says the Chalice Mining share price can rise almost 200%
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX shares today

Motley Fool contributor Aaron Teboneras 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.

from The Motley Fool Australia https://ift.tt/BbfjL1Y