Wesfarmers Ltd (ASX: WES) and JB Hi-Fi Limited (ASX: JBH) have been using facial recognition on unknowing customers in their stores.

That’s the finding from consumer advocacy group Choice, which investigated 25 Australian retailers for their privacy credibility.

The enquiry found Wesfamers-owned retailers Kmart and Bunnings, plus JB Hi-Fi’s The Good Guys appliance outlets, all used the identification technology on anyone who walked through their doors.

According to Choice consumer data spokesperson Kate Bower, the practice is “a completely inappropriate and unnecessary use of the technology”.

“Using facial recognition technology in this way is similar to Kmart, Bunnings, or The Good Guys collecting your fingerprints or DNA every time you shop,” she said.

“Businesses using invasive technologies to capture their customers’ sensitive biometric information is unethical and is a sure way to erode consumer trust.”

Choice announced that it would dob in the retailers to the Office of the Australian Information Commissioner (OAIC) to explore possible breaches of the Privacy Act.

The consumer group also urged the federal government to regulate facial recognition.

Wesfarmers and JB Hi-Fi had not responded to enquiries from The Motley Fool at the time of writing.

Harvested biometric data includes children

What made it worse, according to Bowers, was that 76% of Australians didn’t even realise their unique facial data was harvested.

“Choice observed that Kmart and Bunnings display small signs at the entrance of stores where the technology is in use,” she said.

“However, discreet signage and online privacy policies are not nearly enough to adequately inform shoppers that this controversial technology is in use.”

Bowers added that the biometric data collected included infants and children.

“Choice is concerned that Australian businesses are using facial recognition technology on consumers before Australians have had their say on its use in our community.”

“With the government currently undergoing a review of the Privacy Act, now is the perfect time to strengthen measures around the capture and use of consumer data.”

Wesfarmers shares have dropped more than 30% since the start of the year, while JB Hi-Fi has seen its stock price fall almost 20%.

The post 2 ASX companies busted for sneaky facial recognition on customers appeared first on The Motley Fool Australia.

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More reading

• Why are these ASX 200 retail shares lagging the market today?
• Should you buy these top blue chip ASX 200 shares after the market selloff?
• Should income investors buy Wesfarmers shares for the dividends?
• How much further could the Wesfarmers share price fall? Here’s what the experts reckon
• Experts name 2 ASX dividend shares for income investors to buy now

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 positions in and has recommended Wesfarmers 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 wanting to load up on blue chip shares following the market selloff, then look no further.

Listed below are two ASX 200 blue chips that Goldman Sachs rates as buys. Here’s what it is saying:

REA Group Limited (ASX: REA)

The first blue chip ASX 200 share for investors to consider buying is REA. It is the operator of realestate.com.au, which is the dominant player in real estate listings in the Australian market.

It could be a top option for investors due to the recent pullback in its share price, which has come despite management’s positive outlook commentary. REA recently stated that it remains confident it can achieve double digit revenue/EBITDA growth through the cycle.

This went down well with the team at Goldman Sachs, which has a buy rating and $167.00 price target on its shares. Based on the current REA share price of $103.44, this implies potential upside of 61% for investors.

Goldman said:

Overall, we believe these commitments illustrate the pricing power of REA, pipeline of value-add products, and its ability to offset any potential macro weakness, and now forecast FY22-24E Sales growth of 10% despite challenging volume listings.

Woolworths Group Ltd (ASX: WOW)

Another ASX 200 blue chip share that could be in the buy zone is Woolworths. It is of course the retail giant behind the eponymous Woolworths supermarket and Big W brands.

The team at Goldman Sachs is very positive on the company’s outlook even in the current environment. It recently reiterated its buy rating and $41.70 price target on the company’s shares. Based on the current Woolworths share price of $33.83, this implies potential upside of 23% for investors.

Goldman is forecasting solid sales and earnings growth through to FY 2024. It explained:

We are encouraged by the resilience and superior operations of WOW and reiterate our unchanged FY22-24e Sales and EPS CAGR of 6.9% and 14.9% respectively. We expect this to be driven by high price growth, well protected GPM and slight EBIT margin expansion as COVID costs roll-off and cost efficiencies continue.

The post 2 blue chip ASX 200 shares that Goldman Sachs rates as buys appeared first on The Motley Fool Australia.

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More reading

• 3 ASX shares to pounce on after tax-loss selling: report
• Here’s why I think these ASX tech shares are buys in June
• Why this top broker thinks the Woolworths share price is cheap
• Here are 2 ASX 50 shares analysts rate as buys
• Tolls and phones: Wilsons unveils 3 ASX shares to buy for a slowing economy

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 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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The Evolution Mining Ltd (ASX: EVN) share price has been struggling over the past week.

The company’s shares slumped 8.03% between market close on 7 June and 14 June. For perspective, the S&P/ASX 200 Index (ASX: XJO) tumbled 5.77% in the same time frame. The S&P/ASX 200 Materials Index (ASX: XMJ) also descended 6.13% between these dates.

Let’s take a look at what could be ahead for this gold explorer.

Could higher electricity prices be a risk for Evolution?

Macquarie is concerned gold miners including Evolution could be impacted by higher electricity prices.

Analysts named Evolution, Newcrest Mining Ltd (ASX: NCM), Aurelia Metals Ltd (ASX: AMI), and Oz Minerals Limited (ASX: OZL) as facing the “highest earnings risk from surging electricity prices”, The Australian reported.

Macquarie stated rising electricity prices are due to “increased demand, rising fuel costs and unplanned coal generator outages”. Analysts added:

There continues to be upside risk to power prices in eastern states of Australia, adding cost pressures to miners operating on the East Coast of Australia.

Evolution Mining owns four mines in Australia along with a mine in Ontario, Canada. The company has a production guidance of about 650 thousand ounces (koz) of gold for FY22. Major shareholders include Van Eck, BlackRock, Fidelity, and Australian Super.

The Evolution Mining share price fell 4.86% to $3.33 on Tuesday alone. For perspective, the ASX 200 also shed nearly 4% on Tuesday, while the ASX 200 Materials Index slid 4.44%.

This drop followed Wall Street’s S&P 500 market falling into a bear market on Friday night amid higher inflation. The US Fed reserve is reportedly considering raising rates by 0.75%, sparking fears of a recession.

Gold prices also hit a nearly four-week low on the back of the strong US dollar, CNBC reported. City Index senior market analyst Matt Simpson said:

Gold has faced selling pressure as investors have decided to either go to cash, or offload gold to attend margin calls across other markets.

Evolution Mining share price snapshot

The Evolution Mining share price has plunged 34% in the past 12 months, while it has sunk 18% in the year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has shed around 9% in a year.

Evolution Mining has a market capitalisation of just over $6 billion based on its current share price.

The post Evolution Mining share price dips 8% in a week as Macquarie flags ‘earnings risk’ from energy crisis appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• Why Block, Evolution, Fortescue, and Magellan shares are sinking today
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday

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 looking for dividend shares to buy then you may want to look at the ones below that brokers are recommending.

Here’s what brokers are saying about these ASX dividend shares:

BHP Group Ltd (ASX: BHP)

The first ASX dividend share to look at is mining giant BHP.

While operating conditions have been tough this year due to labour shortages and rising fuel costs, this is being offset by sky high commodity prices. So much so, BHP is being tipped to generate huge sums of free cash flow again in FY 2022.

And due to the strength of its balance sheet, the majority of this free cash flow looks set to be returned to shareholders through dividends.

Goldman Sachs is very positive on the company and recently put a buy rating and $51.20 price target on the Big Australian’s shares. Its analysts note that BHP has an “attractive valuation & FCF, and upside from ~US$20bn Copper growth pipeline.”

As for dividends, the broker is forecasting fully franked dividend yields of over 10% in FY 2022 and FY 2023.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share for income investors to look at is this telco giant.

After years of struggles, Telstra revealed underlying earnings growth during the first half of FY 2022 thanks to the success of its T22 strategy.

The good news for investors is that Telstra will soon embark on its T25 strategy. While T22 was about transforming the company, T25 has been designed to underpin solid earnings growth.

Analysts at Morgans have been pleased with the company’s plans and have put an add rating and $4.56 price target on its shares.

In respect to dividends, Morgans is forecasting fully franked dividends per share of 16 cents in FY 2022 and FY 2023. Based on the current Telstra share price of $3.75, this will mean yields of 4.25%.

The post 2 top ASX dividend shares to buy according to analysts appeared first on The Motley Fool Australia.

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More reading

• Top ASX dividend shares to buy in June 2022
• Here are the 3 most traded ASX 200 shares on Tuesday
• Why BHP, Block, Harvey Norman, and PointsBet shares are sinking
• Why is the BHP share price sinking 6% today?
• 5 things to watch on the ASX 200 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 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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The Goodman Group (ASX: GMG) share price was caught up in the market selloff on Tuesday.

So much so, at one stage the integrated industrial property company’s shares dropped to a 52-week low of $17.21.

The Goodman share price ultimately finished the day with a 3.5% decline to $17.91.

Is the Goodman share price weakness a buying opportunity?

The good news for investors is that one leading broker believes the Goodman share price can bounce back materially from current levels.

According to a recent note out of Citi, its analysts have put a buy rating and $29.50 price target on the company’s shares.

This price target suggests that there is potential upside of 65% for investors over the next 12 months.

What did the broker say?

Citi was pleased with the company’s performance during the third quarter and believes there’s more to come. This is thanks to solid demand for industrial property, which it expects to underpin above-guidance growth.

GMG’s 3Q22 update highlights a continuation of strong conditions, which resulted in guidance for FY22 EPS growth being upgraded to 23% (from 20% previously). Like-for-like rental income, development WIP and AUM all increased, albeit with a FX headwind partially offsetting growth in AUM and WIP.

Similar to previous periods, we see FY22 guidance as conservative given strong FUM growth into 4Q22, off the back of development completions and rising asset values (as GMG’s book cap rates are softer than market). Moreover, despite fears, we see the growth outlook as being robust for FY23 as well given solid demand for industrial (which is driving market rental growth above longer-term averages) and ongoing investment demand, which should support asset value and AUM growth. We re-iterate Buy and see the -25% YTD share price decline as a good entry point.

The post Market selloff: Broker says the Goodman share price now has 65% upside potential appeared first on The Motley Fool Australia.

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More reading

• ‘Attractive, stable’: 2 ASX shares other companies rely on
• Experts name 2 excellent blue chip ASX 200 shares to buy
• Goldman Sachs rates these ASX shares as buys
• 2 ASX shares to buy if you don’t want to invest in the share market: experts
• Why has the Goodman share price tanked 14% in a 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 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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I’m always looking for opportunities to buy more of my favourite ASX shares.

I like businesses that I can own for the long-term, benefit from dividends along the way and hopefully achieve good returns over time.

The two businesses I’m about to talk about are ones that have been in my portfolio for several years. I’m planning to hold them for many more years, but I’d like to own even more of these two ASX shares.

Rural Funds Group (ASX: RFF)

Rural Funds is a real estate investment trust (REIT) which owns a portfolio of farms. Those farms are spread across a number of agricultural sectors including cattle, vineyards, almonds, macadamias and cropping (sugar and cotton).

I like the idea of owning quality farms as it gives exposure to a somewhat defensive sector (we all need food), there’s growing food demand as the population increases in Australia and globally, and it’s a source of income.

The tenants are the ones that take on the operational risks of running the farms, Rural Funds just collects growing rental payments each year. The ASX share also owns a sizeable portfolio of water entitlements for the tenants to use.

The rent is growing. Rural Funds has rental contracts where some of the contracts have a fixed 2.5% annual increase and others are linked to CPI inflation. Some contracts also have periodic market reviews. Another thing helping the business is productivity investments at the farms.

The rental growth is helping fund a 4% annual increase of the distribution. This incremental growth is attractive to me for income stability.

Altium Limited (ASX: ALU)

Altium is one of the world’s leading electronic PCB software businesses. However, it has grown to offer a number of other services such as the cloud platform Altium 365 and electrical parts search engine Octopart.

I think there are a number of positive tailwinds for the business, including the rising number of connected ‘internet of things’ devices. Some products, such as cars, are becoming increasingly electronic and complex.

Indeed, some of Altium’s biggest subscribers are companies like Tesla, Toyota and Ford.

I think the ASX share is doing the right things to attract and retain clients, such as the shift to the cloud with Altium 365. The company says that it connects the electronics industry fragmented value chain to drive productivity and manage production risk.

Another initiative is Altimade which it says “provides cloud based smart manufacturing that will improve productivity and manufacturability of electronics hardware and manage the supply chain of components as well as production risk.”

The potential for longer profit growth looks good, with operating leverage helping profit margins rise in the future. In the FY22 first half, its earnings before interest, tax, depreciation and amortisation (EBITDA) margin was 34.1%. Over the long-term, it wants the EBITDA margin to be between 38% to 40%.

Foolish takeaway

I really like both of these ASX shares, though I did buy my current positions at much lower prices than today, so I’d love to be able to buy more at an even cheaper price.

The post 2 ASX shares I want to buy more of for my portfolio appeared first on The Motley Fool Australia.

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More reading

• Can the Altium share price regain its previous highs in 2022?
• Experts name 3 ASX growth shares to buy next week
• 3 fantastic ASX shares that analysts reckon have huge upside potential
• Why is Audinate outperforming other ASX tech shares today?
• Why did ASX 200 tech shares fall today?

Motley Fool contributor Tristan Harrison has positions in Altium and RURALFUNDS STAPLED. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium and Tesla. The Motley Fool Australia has positions in and has recommended RURALFUNDS STAPLED. 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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Tax-loss selling is a phenomenon that’s seen each June, which accelerates in the second half of the month.

The idea is that investors sell their worst-performing ASX shares before the end of the financial year arrives. They’re willing to cop the capital loss to cancel out their tax liability from their wins.

This means that sometimes stocks that have already fared poorly during the financial year can spiral down even further in June, as demand plummets and supply soars.

And this could present some juicy bargains, according to a recent Market Matters report.

“[Tax loss-selling] can often send already depressed stocks down into oversold/deep value areas, which can be attractive for the well-informed investor,” read the document.

“The key is determining the difference between value and a company simply in trouble.”

As such, the report presented three examples of “quality” ASX shares that could see their valuations plummet but may present excellent opportunities to buy:

‘Things are as bad as they can get’

ARB Corporation Limited (ASX: ARB) is a 4-wheel drive accessories provider, which has seen its share price plunge 46% since the start of the calendar year.

According to the Market Matters report, the company has been struck down by “a trifecta” of headwinds in the new car market — shortages of staff, supply chain constraints and slowing sales.

“When we combine this with margin contraction due to rising commodity [prices], the picture has looked bleak for ARB, which has clearly been reflected by its share prices fall.”

But it’s a retailer that Market Matters continues to like.

“It’s starting to feel like things are as bad as they can get for ARB,” read the report.

“It’s now trading on 19.6x FY22 earnings compared to a 5-year average of 27.5x… This is one retailer we like into excessive weakness.”

At the time of writing the report ARB shares were around $31, with the Market Matters team declaring it would pounce when it fell to $30.

The ARB share price ended Tuesday afternoon at $28.39.

Half the price it was a year ago

Medical and industrial glove maker Ansell Limited (ASX: ANN) has seen its valuation plummet 46% over this financial year.

The market has been disappointed with the company’s post-COVID performance.

“Who would have thought the stock would be trading well under its 2020 highs in today’s new health & safety world?” read the Market Matters report.

“January’s major downgrade courtesy of rising cost and falling margins hasn’t been forgotten — and for MM to be interested another leg lower is required.”

The document advised that Ansell shares are already “fairly cheap” trading on 15.5 times price-to-earnings valuation but would prefer a tax-loss selling dip to under $23 before picking it up.

The stock finished Tuesday at $23.06.

‘A quality, monopolistic business’

Real estate classifieds site REA Group Limited (ASX: REA) has made many investors wealthy over the past couple of decades.

But the stock price has suffered in recent months.

“REA has corrected 42% from its mid-2021 high and is currently down 35% for the financial year after finding itself in two unpopular naughty corners — i.e. property and growth high valuation names.”

The Market Matters team reminded investors this is “a quality, almost monopolistic-style business”, with “useful pricing power”.

“But it currently is in the wrong place at the wrong time,” read the report.

“The question is when has real value been restored – it’s still not cheap per se, trading on an estimated valuation of 35.2x for 2022.”

The Market Matters crew admitted they are still reluctant about increasing their exposure to the technology sector.

“But a little lower and it will become compelling… MM likes REA into weakness under $100.”

REA closed on Tuesday at $103.44.

The post 3 ASX shares to pounce on after tax-loss selling: report appeared first on The Motley Fool Australia.

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More reading

• Here’s why I think these ASX tech shares are buys in June
• 2 ASX shares the Aussie lifestyle can’t do without
• Here are 2 ASX 50 shares analysts rate as buys
• Can the REA share price turn over a new leaf in 2022?
• 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB Corporation Limited, Ansell Ltd., and REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The dreaded ‘I’ word has done the rounds in financial markets since the beginning of the year, steamrolling any equity daring enough to stand in its way. In the process, shares in Magellan Financial Group Ltd (ASX: MFG) and other fund managers on the ASX have felt the sting of inflation.

However, investors could be in for more pain as a 40-year high in US inflation increases the chances of the Federal Reserve hiking rates by a sizeable 75 basis points.

The expectation for higher interest rates means more market participants are opting to watch how this pans out from the sidelines while holding cash. In light of this, fund managers are more and more becoming FUD (fear, uncertainty, and doubt) managers.

Let’s take a look at how this battle has impacted Magellan and other fund manager shares recently.

Fund flood gates wide open

For Magellan shares, the pain began with the loss of its contract with St James’s Place back in December last year. Prior to this, the ASX-listed fund manager counted more than $116 billion in funds under management (FUM).

Fast forward to the end of May this year, and Magellan is looking at a total FUM of $65 billion. That is nearly a slicing in half of the company’s former glory. Consequently, Magellan shares have similarly fallen away, tumbling 36% year-to-date.

The once-admired fund has struggled to retain investors’ money amid the challenging macroeconomic conditions. Not to mention the difficulty in enticing new investors while many of its managed funds underperform benchmarks. For example, the Magellan Global Fund (hedged) has provided lesser returns than the MSCI World Net Total Return Index over a one-year, three-year, five-year, and seven-year period.

Fellow ASX-listed fund manager Platinum Asset Management Ltd (ASX: PTM) has also suffered at the hand of fund outflows. After entering the new year with a tidy sum of $22 billion in FUM, Platinum now only has $19.6 billion under its belt.

Ultimately, the reductions in funds under management directly impact the company’s bottom line. In the fund management business, revenue is a percentage fee of the total FUM. As you can see, these companies have an uphill battle to stem the outflows.

Doing better than Magellan shares

One ASX-listed fund manager that appears to be fending off high-interest rate fears is GQG Partners Inc (ASX: GQG). The US-based global boutique asset management firm has experienced a net inflow of funds since the end of last year.

According to the latest FUM report, GQG Partners held $94.6 billion, up from December’s $91.2 billion. Part of the reason might be GQG’s outperformance compared to benchmarks over the last few years. Furthermore, growth in the company’s FUM has served up increased revenue over the past 12 months.

As covered by my colleague Sebastian, it is believed that Magellan shares will continue to reel in pain until its own performance figures improve.

The post War on funds: What’s going on with Magellan shares and other ASX-listed fund managers? appeared first on The Motley Fool Australia.

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More reading

• Top ASX dividend shares to buy in June 2022
• These were the worst performing ASX 200 shares last week
• Why Block, Evolution, Fortescue, and Magellan shares are sinking today
• Why Boss Energy, Crown, Magellan, and Shaver Shop shares are rising
• ASX 200 midday update: Magellan rebounds, Crown’s takeover boost

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

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As we near the end of the financial year, many investors are watching the ASX All Ords with apprehension.

The All Ordinaries Index (ASX: XAO) has been on a downward trend in June, shedding nearly 625 points (down 8.4%) so far this month. But amidst all the carnage, some insiders are buying up ASX All Ord shares at a discount.

This could be a promising indicator, considering these are the people that should know the business best. If insiders are comfortable accumulating shares, maybe there’s a disconnect between the share price and the underlying business.

Seeing value in these ASX All Ord shares

Audinate Group Ltd (ASX: AD8)

The first ASX All Ords share in our list is Australian digital audio technology company, Audinate. It appears the market is not hearing the positive aspects of the business. In FY21, the Dante software maker eclipsed its pre-COVID-19 revenue, reaching $33.4 million. Although, the company’s latest FY22 update suggests revenue growth may not be high, with forecasts of above $30 million.

However, Audinate chair David Krall decided to buy $134,600 worth of Audinate shares on 1 June 2022. The purchase takes the board members holding to 500,000 shares worth a total of $3.29 million at the time of writing.

Polynovo Ltd (ASX: PNV)

There is plenty going on for this dermal regeneration medical company. Despite Polynovo achieving 40% revenue growth in the last 12 months and turning profitable, this ASX All Ord share is one of the most heavily shorted companies on the market. In addition, the next quarterly rebalance will see Polynovo booted from the S&P/ASX 200 Index (ASX: XJO).

Yet, Polynovo chair David Williams has continued to relentlessly buy shares in the medical device company. On 6 and 7 June, Williams added a further $284,123 worth of shares to his name. This takes his total purchases above $5.1 million since the beginning of May this year.

Dicker Data Ltd (ASX: DDR)

In its recent first-quarter FY22 update, Dicker Data posted impressive increases in its revenue and net earnings. Though, the market has not changed its sentiment on the technology distribution company, with shares down nearly 22% year-to-date.

Clearly, chief operating officer Vladimir Mitnovetski sees the current share price of this ASX All Ords share as an opportunity. On 7 June, the executive director acquired 2,500 shares in the company for $29,500.

Notably, the company is currently offering a dividend yield of 4% based on its current share price.

The post Buying the dip: 3 ASX All Ord shares insiders are loading up on appeared first on The Motley Fool Australia.

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More reading

• Why is the Polynovo share price rising while other ASX 200 stocks are plummeting?
• Why Australian Clinical Labs, Lake Resources, PolyNovo, and ResApp are rising
• These are the 10 most shorted ASX shares
• Are these 2 compelling ASX shares buys in June 2022?
• Why is Audinate outperforming other ASX tech shares today?

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended AUDINATEGL FPO, Dicker Data Limited, and POLYNOVO FPO. The Motley Fool Australia has positions in and has recommended AUDINATEGL FPO and Dicker Data 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 Vanguard MSCI Index International Shares ETF (ASX: VGS) is a fairly popular exchange-traded fund (ETF) on the ASX today. It is one of the index ETFs that ASX investors like to use to gain exposure to shares listed outside Australia and the ASX.

But this ETF’s name doesn’t exactly tell us what kind of shares an investment into VGS units would give an investor exposure to. So today, let’s check out what exactly it is that you get when you invest in the Vanguard International Shares ETF.

VGS is a very broad fund. It officially tracks the MSCI World ex-Australia Index, which covers the largest companies across “major developed countries” of the world.

There are more than 20 share markets that VGS covers. But it is dominated by the United States, which commands around 70% of this ETF’s total holdings. Other significant contributors include Japan (6.3%), the United Kingdom (4.5%), Canada (3.7%), and Switzerland (3%).

This inevitably means that it is the US that also dominates VGS’s underlying shares. Although this ETF holds close to 1,500 individual companies within it, the largest companies still dominate.

Take Apple Inc (NASDAQ: AAPL). This world-famous American technology giant is the largest individual holding within VGS right now. Even though it is one of almost 1,500 companies within VGS, it still commands a 4.9% weighting in the ETF’s portfolio.

What else is in the Vanguard International Shares ETF?

It’s a similar story with the other large-cap US tech shares. Microsoft Corporation (NASDAQ: MSFT), Amazon.com Inc (NASDAQ: AMZN), Tesla Inc (NASDAQ: TSLA), and Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) are VGS’s next-largest holdings. Together, these four companies represent another 10% or so of VGS’s total weighting.

So of $100 invested in VGS units right now, approximately $15 would be invested in these five big tech companies alone.

But that’s not to say there isn’t still a diverse range of international companies within this ETF. Other significant holdings include Switzerland’s Nestle, France’s LVMH, the UK’s Shell, and Japan’s Toyota. The US offers up more than just tech companies too. Farm machinery company Deere & Company is there. As is healthcare giant Johnson & Johnson. You’ll also find the Coca-Cola Company, consumer staples king Procter & Gamble, and oil titan Exxon Mobil.

So if an investor puts money into the Vanguard VGS ETF, they are certainly getting a big chunk of US tech. But they will also get a very wide range of large, dominant businesses hailing from many corners of the globe.

The Vanguard MSCI Index International Shares ETF charges a management fee of 0.18% per annum.

The post What do you get when you invest in the VGS ETF? appeared first on The Motley Fool Australia.

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More reading

• 3 popular ETFs for ASX investors to buy now
• 3 ASX ETFs for investors to buy next week
• Waiting to start investing in ASX shares? Today could be a brilliant time to do it
• Why now could be a good time to invest in Vanguard Msci Index International Shares ETF
• 3 fantastic ETFs for ASX investors to buy next week

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet (A shares), Amazon, Apple, Coca-Cola, Johnson & Johnson, Microsoft, Procter & Gamble, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Microsoft, Tesla, and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson 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), Amazon, Apple, and Vanguard MSCI Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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