BHP Group Ltd (ASX: BHP) shares are enjoying a good week.

On the back of rising iron ore prices, the BHP share price is up 5% since Monday’s closing bell.

The mining giant’s future is looking to become ever more closely tied to the price of iron ore, alongside a range of other metals seeing strong demand, as the world moves away from fossil fuels and towards electrification.

That’s because BHP has been divesting its oil and gas segments so it can focus on areas it believes have a much longer horizon.

And that, according to Paul Xiradis, head of equities at Ausbil Investment Management, looks to be a wise plan.

What does a decarbonising world mean for BHP shares?

Xiradis broadly has a bullish outlook for ASX shares. “We do not believe Australian equities are too expensive on average when you consider them in relative terms against where long-term interest rates are sitting, and their forward earnings growth outlook,” he says.

According to Xiradis:

The equity market has an implied duration structure which has seen its value adjust as interest rates have fallen to their lows. However, we look at the future earnings growth profile for equities when assessing if sectors are cheap or expensive.

On a forward EPS [earnings per share] growth view, we believe resources (specifically battery materials, electrification metals and some bulk commodities) … are offering strong potential EPS growth for FY22 relative to value…

Growth trends with a long way to run yet can throw up some compelling opportunities. “There are some compelling thematics and tactical developments that are delivering opportunity in the market based on forward potential earnings growth,” he said.

Among the biggest trends is the world’s move away from carbon-based fuels in an effort to reduce greenhouse gases, which in turn is driving new demand for a range of metals.

And Xiradis believes BHP shares are well-positioned to benefit:

In resources, the shift towards decarbonisation, which will see significantly more commitment following COP26, is offering compelling opportunities in the electrification and battery materials metals (copper, nickel, lithium and cobalt) – we like BHP as a diversified exposure to these themes.

How has BHP been tracking?

BHP shares have struggled in 2021, alongside the other S&P/ASX 200 Index (ASX: XJO) iron ore miners. The BHP share price is down 10% year-to-date compared to a gain of 11% posted by the ASX 200 in that same period.

Over the past month, BHP is up 2%.

The post Are BHP (ASX:BHP) shares a compelling opportunity in the decarbonisation era? appeared first on The Motley Fool Australia.

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• These top brokers say the BHP (ASX:BHP) share price is a bargain buy
• BHP (ASX:BHP) share price jumps 4% on ‘global energy company’ deal
• Looking to invest in the electrification and battery theme? Here are 5 ASX shares to consider
• ASX 200 (ASX:XJO) midday update: BHP, Woodside rise, TechnologyOne falls

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 Bruce Jackson.

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

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

What happened

Popular meme token Dogecoin (CRYPTO: DOGE) saw rather intense selling pressure today. This dog-based digital currency was down 8.6% as of 10 a.m. ET, and hit a daily low of as much as 9.6% over the past 24 hours, in earlier trading. Since then, DOGE has begun to recover, down approximately 5% at 1 p.m. ET.

So what

This week has been a relatively volatile one in the crypto world. For dog-inspired meme tokens, this volatility generally outpaced the market. 

To be fair, this has been the case for some time. The rallies we’ve seen in meme tokens have been astronomical in nature, with downside moves being more pronounced as well.

Today, a couple of news items appear to be driving sentiment lower among investors in meme tokens. It was reported earlier today that Dogecoin, along with other major cryptocurrencies, plunged sharply in India on news of a bill moving forward that will ban most private tokens. 

Additionally, investors seem to be considering recent comments made by Ripple CEO Bradley Garlinghouse on the inflationary dynamics of Dogecoin as a negative for the cryptocurrency market.

Now what

News that India will be moving forward with its bill was not entirely unexpected. However, seeing the bill progress toward being passed has some investors on their toes. Continued regulatory headwinds are a net negative for the overall crypto sector. However, for more speculative tokens, investors may see outsize volatility on further news flow on this front.

With respect to the inflationary nature of Dogecoin, this is something that has been a key detractor bears have pointed to for some time. To see a high-profile name in the industry call out Dogecoin specifically is certainly something bulls don’t want to see.

Right now, it appears the crypto market is attempting to find some sort of equilibrium. As price discovery takes place, investors can expect to see more volatility on the horizon. For meme tokens such as Dogecoin, this volatility may be more pronounced. Accordingly, investors should factor this into their decision-making process when considering this token. 

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

The post Why Dogecoin plunged 9% today appeared first on The Motley Fool Australia.

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• Shiba Inu crashes and Dogecoin slides. What’s happening with the ‘dog coins’?
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Chris MacDonald 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 Bruce Jackson.

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

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The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price is on the move on Thursday morning.

At the time of writing, the medical device company’s shares are up 2% to $31.50.

Why is the Fisher & Paykel Healthcare share price rising?

Investors have been bidding the Fisher & Paykel Healthcare share price following the release of its half year results. Here’s a summary of how it performed during the six months ended 30 September:

• Operating revenue was down 1% (up 2% in constant currency) to NZ$900 million
• Hospital operating revenue down 2% to NZ$670.2 million
• Homecare revenue up 0.3% to NZ$226.9 million
• Net profit after tax down 2% (1% in constant currency) to NZ$222 million
• Interim dividend increased 6% to 17 NZ cents per share

What happened during the half?

During the first half of FY 2022, Fisher & Paykel Healthcare reported a 1% decline in operating revenue to NZ$900 million and a 2% reduction in net profit after tax to NZ$222 million.

The main drag on the company’s performance was its Hospital product group, which includes humidification products used in respiratory, acute and surgical care. Segment revenue fell 2% after cycling the surge in demand for its respiratory products during the prior corresponding period at the height of pandemic.

Within the segment, consumables revenue grew 8% in constant currency and reached 67% of segment revenue. The remaining 33% of revenue was from the sale of hardware.

The Homecare product group, which includes products used in the treatment of obstructive sleep apnoea (OSA) and respiratory support in the home, delivered a modest 0.3% increase in revenue to NZ$227 million.

Pleasingly, despite contending with elevated freight costs, Fisher & Paykel Healthcare was able to deliver a 135 basis point increase in its gross margin to 63.1%.

Outlook

Fisher & Paykel Healthcare’s Managing Director and CEO, Lewis Gradon, continued to warn that the second half will be tough. This could be what is weighing on the Fisher & Paykel Healthcare share price today.

He said: “We have not changed our view on outlook for the remainder of the financial year since we last provided an update on the 18th of August. For the second half, we expect our Hospital hardware sales will continue to be impacted by COVID19-related hospital admissions. However, as we said in our August trading update, many countries have already boosted their hospital treatment capacity, so we do not expect Hospital hardware revenue to continue at an elevated level for the rest of the year.”

Mr Gradon also warned that demand for consumables is uncertain due to a number of factors.

He explained: “In our Hospital product group, consumables volume is likely to be impacted by a number of different factors. Those include the ongoing COVID-19 hospitalisations around the world, the severity of the flu season during the Northern Hemisphere winter, and the ability of hospitals to return to their preCOVID-19 rates for surgeries.”

“Our second half last year corresponded to peak COVID-19 hospitalisations in North America and most European countries. In the absence of further comparable hospitalisation surges around the world, we would expect our consumables revenue for the second half of this financial year to be lower than the second half last year,” Mr Gradon added.

Unfortunately, the Homecare segment is also facing challenges of its own.

The CEO explained: “In our Homecare product group, growth in OSA masks is dependent on new patient diagnosis rates, which may continue to be impacted by COVID-19 and the supply of treatment hardware. We continue to expect new patient diagnoses to be at or above FY21 rates for the second half of the 2022 financial year.”

The post Fisher & Paykel Healthcare (ASX:FPH) share price higher on half year results appeared first on The Motley Fool Australia.

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• 3 strong ASX growth shares for investors to buy in December
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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 Bruce Jackson.

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The Insurance Australia Group Ltd (ASX: IAG) share price has been struggling this month after being driven downwards by a single announcement.

IAG downgraded its guidance for financial year 2022 on 2 November after natural events ravaged parts of Australia.

At the final close of October, the IAG share price was $4.80. It is currently trading for $4.55, representing a 5.2% fall.

Let’s take a closer look at the news that has weighed on the company’s stock this month.

IAG share price suffers after change to guidance

The IAG share price sunk 7% on the back of its guidance downgrade and it hasn’t recovered yet.

The company stated its profits would be less than previously predicted this financial year after it had to up its predicted net natural perils claim costs.

It now plans to fork out $1.045 billon in natural perils claims over this financial year. That’s up from its previous guidance of $765 million.

The increase came after IAG had to pay out $535 million to its customers over the first four months of financial year 2022.

Additionally, it came only days after a weather event that may have caused $169 million worth of damage to parts of South Australia, Victoria, and Queensland. That’s the maximum retention for a first loss under IAG’s catastrophe program.

As of the 1 November, IAG had received around 14,000 claims from customers impacted by the severe weather event.

In a release, IAG stated the increase in net natural perils claim costs is equal to around 360 basis points at the reported insurance margin level.

The company, therefore, dropped its financial year 2022 reported insurance margin guidance range to between 10.0% to 12.0%. That was down from 13.5% to 15.5%.

Currently, the IAG share price is 3.6% lower than it was at the start of 2021. It has also fallen 14.7% since this time last year.

The post November hasn’t been a great month so far for the IAG (ASX:IAG) share price appeared first on The Motley Fool Australia.

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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 owns shares of and has recommended Insurance Australia Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Flight Centre Travel Group Ltd (ASX: FLT) share price has been on a rollercoaster ride during 2021. Its shares reached a post-COVID high of $25.28 last month before pulling back almost 30%.

It appears that investors have mixed feelings about the value of Flight Centre shares in the current climate.

At Wednesday’s market close, Flight Centre shares finished up 0.44% to $18.37.

How do you value Flight Centre shares?

The most common way to value an ASX share is to calculate the company’s price-to-earnings (P/E) ratio. Traditionally, this metric is used to provide more clarity on whether a company is overvalued or undervalued.

A P/E ratio can be broken down as the relationship between a company’s share price and its earnings per share (EPS).

Currently, Flight Centre has a negative P/E ratio of 2.66. The formula to work out the P/E ratio is the current share price divided by EPS.

Essentially, this means that the company is losing money and is not making any profit over the last 12 months.

Government-mandated lockdowns and restrictions on international and domestic travel significantly weighed on the company’s revenue streams. 

In the Flight Centre’s annual general meeting (AGM), management highlighted that demand remains for overseas travel. Leisure enquiries and quotes have surged for key locations as people look to book a much-needed holiday.

Fully-vaccinated passengers are offered more freedom in travelling across Trans-Atlantic and other international destinations. For example, United States travellers can fly to the United Kingdom, and Fiji opened its borders to vaccinated passengers after an 18-month hiatus.

Flight Centre said that more countries are accepting to live with the virus, with various international routes restarting.

The company is targeting a return to monthly profitability during FY22. However, this is based on the expectation that international travel continues to gradually return and that Australian domestic borders remain open.

Sales revenue increased month-on-month. In particular, leisure and corporate recovery in the United States during Q4 FY21 ticked up a notch. Flight Centre noted that corporate transaction numbers were at 50% before COVID-19, representing around 40% of total transaction value (TTV).

All eyes will be on Flight Centre’s H1 FY22 results scheduled to be released on 24 February 2022.

Flight Centre share price snapshot

Over the last 12 months, Flight Centre shares have lifted by around 10% since hitting near COVID-19 lows in August.

Currently, the company’s share price is hovering around in the middle of its 52-week range of $13.59 to $25.28.

Based on valuation grounds, Flight Centre has a market capitalisation of around $3.67 billion, with approximately 199.57 million shares on issue.

The post How do you value the Flight Centre (ASX:FLT) share price? appeared first on The Motley Fool Australia.

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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 recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Woolworths Group Ltd (ASX: WOW) dividend surged following the company’s robust performance in its full-year results for 2021. Despite achieving growth across key metrics, investors sold off the conglomerate’s shares, before bargain hunters swooped in.

At Wednesday’s market close, Woolworths shares finished the day 0.03% down to $40.79.

Let’s take a close look at the Woolworths dividend policy.

A look into the Woolworths dividend

The formidable company paid out an interim dividend of 53 cents on 14 April. The dividend was 15.2% higher than the 46 cents declared in the prior corresponding period.

More recently, Woolworths’ final dividend came to 55 cents which was paid on 8 October. Notably, this happened to be the highest amount given to shareholders since its full-year results in 2019.

Both interim and final dividends this year were also franked at a rate of 30%, consistent with the previous 20 years. This means that those who were eligible for any of 2021’s dividends, received Australia’s much loved tax credits.

The full-year dividend of 2021 stood at 108 cents, a 14.9% lift from the 94 cents recorded in the 2020 financial year.

In addition, the company offered investors to participate in its dividend reinvestment plan (DRP). No discount was applied to the volume-weighted average price.

The payout ratio can be calculated by taking the dividends per share and dividing it by earnings per share (EPS). Essentially, it is the percentage of earnings paid to shareholders in dividends.

The current dividend payout ratio stands at 65.45%.

It is worth noting that Woolworths traditionally targets a payout ratio of 70% to 75% of profit after tax. The Woolworths buy-back and final dividend returned about $1.1 billion of franking credits to shareholders

Recap on the Woolworths share price

In 2021, the Woolworths share price has continued to tread higher to register gains of more than 17%. When factoring in the last 12 months, its shares are slightly further in the green, up 20%.

Woolworths has a dividend yield of 2.65% and commands a market capitalisation of roughly $47.93 billion.

The post What is the current Woolworths (ASX:WOW) dividend payout ratio? appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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Are you on the lookout for growth shares to buy? Then you may want to look at the ones listed below.

Here’s why analysts rate these three ASX growth shares highly:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is this appliance manufacturer. Over the past 80 years, Breville has become an iconic Australian brand, developing high quality and innovative products for kitchens around the world. It has been growing at a strong rate in recent years and, pleasingly, this trend is not expected to end any time soon. This is thanks to strong demand, favourable industry tailwinds, international expansion, and its ongoing R&D investment.

UBS is confident that Breville’s strong growth can continue for some time to come. In light of this, the broker rates its shares as a buy and has put a $35.70 price target on them.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another ASX growth share to consider in December is Domino’s. This pizza chain operator has been growing at a solid rate for a long time. This has been driven by its expansion at home and overseas, acquisitions, and its focus on technology. Pleasingly, although the company has a significant store network across several regions, it still sees scope to double its footprint over the next decade. And if the company can also continue delivering same store sales growth, then the future will be very positive. Management is also on the lookout for acquisitions, which could expand its addressable market even further.

Goldman Sachs remains positive on Domino’s. It currently has a buy rating and $147.00 price target on the pizza chain operator’s shares.

IDP Education Ltd (ASX: IEL)

A final ASX growth that could be worth considering is IDP Education. It is a provider of international student placement services and English language testing services. While demand for its services unsurprisingly softened during the worst of the pandemic, it has been bouncing strongly now trading conditions are normalising. For example, during the first quarter of FY 2022, IELTS volumes were up 84% over the same period last year.

Morgan Stanley is very positive on IDP Education’s long term prospects. It currently has an overweight rating and $40.20 price target on its shares.

The post 3 strong ASX growth shares for investors to buy in December appeared first on The Motley Fool Australia.

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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. owns shares of and has recommended Idp Education Pty Ltd. 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 Bruce Jackson.

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There are a number of ASX shares that are growing quickly due to the e-commerce explosion that has occurred since the onset of the COVID-19 pandemic.

These businesses aren’t expecting the boom of e-commerce to slow down. In-fact, they are expecting more sales or revenue:

Goodman Group (ASX: GMG)

Goodman is one of the biggest industrial property groups in the world.

It’s currently rated as a buy by quite a few different analysts, including the broker Morgan Stanley. This broker has a price target of $26.50 on the business, suggesting the broker thinks it could gain almost 10% over the next 12 months.

Morgan Stanley was pleased to see that Goodman Group upgraded its profit guidance for FY22 off the back of its FY22 first quarter update. Logistics facilities continue to be in demand, with a particular reference to large US retailers.

Goodman says that it’s continuing to see structural changes, significant customer demand and intensification of use of sites in its target markets. This is leading to rental growth, increasing development activity, stronger than expected performance from its partnerships and higher levels of profitability.

The real estate e-commerce ASX share is expecting to grow assets under management (AUM) from $62 billion at 30 September 2021 to around $70 billion by June 2022, which is the end of FY22. The AUM growth is being driven by strong revaluation gains, development completions and net acquisitions.

COVID-related disruptions in FY22 have been managed so that there has been less impact on the full year projections than initially assumed. Operating earnings per security (EPS) growth is now expected to be more than 15% in FY22.

Cettire Ltd (ASX: CTT)

Cettire is a luxury e-commerce retailer that sells around 200,000 products from around 1,700 luxury brands. Some of the products it sells includes clothing, shoes, bags and accessories.

The e-commerce ASX share is generating triple digit revenue growth. In the first four months of FY22, sales revenue was up 172% to $57.8 million. Cettire’s active customer number grew at an even faster rate – it went up 220% to 158,260. That growing customer base is likely to contribute an increasing level of revenue – 40% of FY21 revenue came from repeat customers.

Despite the bricks and mortar stores reopening around the world, Cettire’s sales continue to grow unabated.

Cettire has been investing in customer acquisition and executing strongly, leading to October monthly traffic increasing by 379% year on year. It’s also seeing “very positive” early signs from the migration to its proprietary storefront, with sales growth in ‘migrated’ markets outpacing the company’s overall growth.

FY21 showed that the business is already generating positive profit at certain lines of its financials. Excluding IPO expenses, share-based payments and unrealised foreign exchange movements, FY21 adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was $2.1 million and operating cashflow was $12.7 million (up 131%).

The e-commerce ASX share has said that its number one priority is to maximise the global revenue potential of the company by taking a long-term view, with continuing investment in winning customers, technology enhancements and building organisational capability.

The post 2 high-growth ASX shares profiting from the e-commerce boom appeared first on The Motley Fool Australia.

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• Is the Goodman (ASX:GMG) share price a good buy?
• 2 excellent blue chip ASX 200 shares to buy now

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. owns shares of and has recommended Cettire Limited. The Motley Fool Australia has recommended Cettire Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Are you wanting to buy some blue chip ASX 200 shares for your portfolio? If you are, then you may want to check out the ones listed below.

These quality companies have been tipped as blue chips to buy. Here’s why analysts are so positive on them:

Rio Tinto Limited (ASX: RIO)

If you’re not averse to investing in the resources sector, then it could be worth considering this mining giant.

The recent collapse in iron ore prices has weighed heavily on the Rio Tinto share price, but it is worth remembering that the company is far from a one-trick pony. Rio Tinto is one of the world’s largest miners with a portfolio of world class operations across a number of commodities.

Goldman Sachs is very positive on Rio Tinto and has just retained its buy rating and $121.00 price target on the mining giant’s shares. This compares favourably to the latest Rio Tinto share price of $95.07.

The broker is bullish on Rio Tinto due to its attractive valuation, strong free cash flow, production growth potential, and its exposure to low emission aluminium.

In respect to the latter, Goldman commented: “In addition to copper production growth, RIO has one of the highest margin, lowest carbon emission aluminium businesses in the world, with over 2.2Mt of Ali production powered by hydro, and we think ELYSIS inert anode technology could be worth billions.”

Suncorp Group Ltd (ASX: SUN)

Another ASX 200 blue chip share to look at is Suncorp. It is one of Australia’s leading banking and insurance companies with a collection of popular brands. These include AAMI, Apia, Bingle, GIO, Shannons, Vero, and the eponymous Suncorp brand.

Citi is very positive on Suncorp and recently reaffirmed its buy rating and $12.80 price target on the company’s shares. This compares to the current Suncorp share price of $11.09.

While the broker suspects that the company’s near term performance could be subdued, it remains very positive on the longer term and believes now would be a good time to start buying shares.

Citi said: “While we still see SUN as more of a medium term than shorter term story, our analysis suggests the current share price is a reasonable entry point even so. Largely to reflect lower impairment charges, we nudge up our FY22E EPS by 1% and retain our Buy call and A$12.80 TP.”

The post 2 high quality ASX 200 blue chip shares with major upside potential appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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There are a few exchange-traded funds (ETFs) on the ASX that have the ability to add significant diversification to an Aussie investor’s portfolio.

ETFs allow investors to buy a large amount of shares in a single investment. Sometimes investors can get exposure to hundreds of businesses through a single ETF. Some ETFs provide diversification to thousands of shares.

Here are two of the leading options to consider:

iShares S&P 500 ETF (ASX: IVV)

This is one of the cheapest ETFs on the ASX that people can buy. It has an annual management fee of just 0.04%. That is extremely low compared to almost every other ETF on Australian Stock Exchange. Thankfully, it means a very high proportion of the investment returns stay with the investor, rather than being paid to a fund manager.

But the low fees aren’t the only factor to think about with this ETF.

It gives exposure to 500 businesses that are listed in the United States. That’s quite a few more than the ASX 200 or ASX 300.

Plenty of the businesses within this portfolio are leaders in the US, and even best at what they do across the entire world.

For example, Microsoft, Apple, Amazon, Tesla, Alphabet, Facebook/Meta Platforms and Nvidia are global leaders at what they do. But they also still have plenty of growth potential and are delivering attractive earnings growth.

Past performance is not a reliable indicator of future performance, but over the last five years, this ETF has delivered an average return per annum of almost 19%.

Vanguard Msci Index International Shares Etf (ASX: VGS)

There are a few similarities between this ETF and the iShares S&P 500 ETF, such as the biggest holdings.

This option is provided by Vanguard, one of the world-leading providers when it comes to low cost asset management. Indeed, Vanguard’s owners are the investors themselves – it looks to share the profit by lowering fees as much as possible.

When you look at the top holdings of this investment, there are a number of familiar names as the biggest positions, like Apple, Microsoft, Alphabet, Amazon, Tesla, Meta Platforms, Nvidia, JPMorgan Chase and so on.

But what’s different about this ETF is that it provides access to all the share markets from major economically developed places, including the UK, Europe, Canada and Japan.

Whilst there are the big US tech names, there are non-US holdings near the top of the portfolio list like: Nestle, ASML, Roche, LVMH, Toyota, Novo Nordisk and Shopify.

Vanguard Msci Index International Shares Etf has around 1,500 holdings at the latest count. All of this diversification comes at a cost of 0.18% per annum.

Past performance is not a guarantee of future results, but over the last five years, the ETF has delivered an average return per annum of 16%.

Vanguard says the portfolio has an earnings growth rate of 12.6% and a return on equity (ROE) of 15.9%.

The post 2 leading ASX ETFs for excellent global diversification appeared first on The Motley Fool Australia.

More reading

• 3 ETFs for ASX investors to buy now
• Here’s why not all ASX ETFs are created equal
• Is iShares S&P 500 ETF (ASX:IVV) one of the best ETFs to buy?
• Why do investors buy the Vanguard Australian Shares Index ETF (ASX:VAS) when they can buy individual shares?
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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. owns shares of 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 Bruce Jackson.

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