The CSL Limited (ASX: CSL) share price took a dive late last month, after touching a year-to-date high of $312.99. While the global biotech didn’t release any market-sensitive news, investors appeared to be selling due to the “September effect”.

At yesterday’s market close, CSL shares closed 0.23% lower to $286.67. This puts them within sight of a 3-month low of $273.01.

What’s weighing down CSL shares?

The “September effect” refers to historically underperforming market returns that occur in the United States and other world economies. In fact, the September effect has seen the Dow Jones Industrial Average Index (DJX: .DJI) dip 0.7% on average from 1950 to 2020, while, since 1971, the Nasdaq Composite (NASDAQ: .IXIC) generally dips 0.6% around this time.

Whilst there is no single cause, analysts blame seasonal rebalancing, tax-loss harvesting by mutual funds, and market psychology.

In local markets, the S&P/ASX 200 Index (ASX: XJO) has sunk 3.65% in a month, at its lowest level since June. This has undoubtedly put pressure on the CSL share price, as investors pulled money out to limit potential further losses.

CSL previously noted in its full-year results that it sees FY22 as a transitional year. This reflects strong demand for its portfolio of therapies and vaccines, offset by plasma collection headwinds.

A number of brokers rated the company’s shares following CSL’s FY21 scorecard.

Multinational investment firm Goldman Sachs cut its price target by 1% to $302, while Morgans had a more bullish outlook. The latter raised its 12-month view by 7.7% to $324.40. Based on the current share price, this implies an upside of around 13% on Morgan’s assessment.

CSL share price summary

When looking from this time last year, the CSL share price has moved in circles, registering nil gains. The same can be said for 2021 year to date, where the company has failed to live up to its traditional expectations.

CSL commands a market capitalisation of $130.62 billion, making it the second-largest company on the ASX.

The post Why did the CSL (ASX:CSL) share price have such a lousy month in September? appeared first on The Motley Fool Australia.

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• 5 defensive ASX shares to guide you through the market correction
• Is the CSL (ASX:CSL) share price a buy today?
• It’s been a rollercoaster for the CSL (ASX:CSL) share price over the last 6 months
• 2 beaten-up ASX shares now ready to rally: expert
• The CSL (ASX:CSL) share price is down 8% this week. Is it a bargain?

Motley Fool contributor Aaron Teboneras owns shares of CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. 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 Fortescue Metals Group Ltd (ASX: FMG) share price retested September lows on Tuesday, briefly hitting a 16-month low of $13.97.

Iron ore has cratered amid pressures from all angles. From a demand perspective, factors like China’s energy shortage, Evergrande’s debt crisis and a reduction of steel output have dampened demand. While on the supply side, global iron ore production is forecast to accelerate in the coming years.

With the Fortescue share price going down as fast as it went up, what should investors expect next from iron ore?

Office of the Chief Economist: What’s next for iron ore?

The Australian government’s commodity forecaster, the Office of the Chief Economist (OCE) provides quarterly updates, forecasting the value, volume and price of Australia’s major resources and energy commodity exports.

Its latest September quarterly report was released this week.

The report cited China’s softening demand for steel triggering major falls in the price of iron ore.

This was, in part, due to the seasonality of China’s demand for steel. Demand is typically stronger in the first half of each year as spring construction gets underway. Steel output tends to plateau from around May onwards, coinciding with the start of the rainy seasons.

However, the report observed the seasonal fall in production in 2021 was far greater than in recent years.

China’s fading infrastructure investment, efforts to deleverage the significant levels of debt in its economy and weak construction sector greatly exacerbated the fall in demand.

Adding to iron ore woes was China’s commitment to curbing steel production from the September quarter as part of its goal to lower national steel output in 2021.

China’ steel output accelerated 12% year-on-year in the first six months to June, meaning a significant decline was needed in the second half in order to meet its targets.

The report said that domestic demand for steel has eased in recent months but now “appear[s] to be taking greater effect at a national level”.

It warned that these effects will persist in the second half of the year following “mandated nationwide steel production cuts from June, and local enforcement of this measure”.

As such, the OCE forecasts that these policies are expected to “have an ongoing dampening effect” on iron ore demand and prices through to 2022.

Supply factors could also work against iron ore prices after the OCE flagged that the world’s largest iron ore producer, Brazil’s Vale, is “slowly returning to output levels last seen prior to the January 2019 Brumadinho tailings dam collapse”.

Furthermore, Australian export volumes are forecast to rise in the second half of 2021.

The OCE forecasts iron ore to average around US$150 a tonne in 2021 before falling to below US$100 a tonne in 2022.

Fortescue share price snapshot

The Fortescue share price is deep in the red for 2021, down 42% year-to-date.

At their highest point in the last 12 months, Fortescue shares were up around 53%. These gains have now disappeared with the share price down 15% since October last year.

The post Fortescue (ASX:FMG) share price at 16 month lows. What’s next for iron ore? appeared first on The Motley Fool Australia.

More reading

• Fortescue (ASX:FMG) share price slides to fresh year-to-date low
• Why did the Fortescue (ASX:FMG) share price have such a lousy month in September?
• These were the 5 worst performing ASX shares in September
• Top brokers name 3 ASX shares to sell next week
• Why the Fortescue (ASX:FMG) share price was sold off in September

Motley Fool contributor Kerry Sun 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 Wesfarmers Ltd (ASX: WES) share price had… an interesting September. Not that that was anything different to what the broader S&P/ASX 200 Index (ASX: XJO) experienced over the month that was. The ASX 200 ended up losing roughly 2.6% of its value over September.

But how did Wesfarmers do? After all, Wesfarmers is one of the bluest ASX 200 blue chips on the markets and is a major constituent of the ASX 200 itself.

So the Wesfarmers share price started the month off at $59.95 a share. It ended September at the price of $55.75. That means Wesfarmers shares went backwards by exactly 7% over the month.

That’s a pretty large number for one month’s efforts. Especially if you consider it’s a loss almost 3 times greater than the ASX 200’s. So what happened here?

September rains on ASX 200 parade

Well, it’s worth pointing out that Wesfarmers went ex-dividend for its upcoming final dividend payment on 1 September. Wesfarmers will be shelling out a final dividned of 90 cents per share, fully franked, on 8 October. When the company traded ex-dividend on 1 September, it gave the Wesfarmers share price more than just a pinch and a punch.

As we covered at the time, this initially sent Wesfarmers shares down as much as 3%. This is quite normal for a share trading ex-dividend with the value of the dividend leaving the share price as new investors aren’t entitled to the payout. Even so, it still contributed to Wesfarmers’ poor performance over the month.

Another factor that could have turned investors off Wesfarmers is the long-running battle to takeover Australian Pharmaceutical Industries Ltd (ASX: API). API is the company behind the Priceline chain of pharmacy stores.

Wesfarmers has lobbed more than one bid for API. Its most recent offer came in mid-September when the company offered up $1.55 for every API share on the market. It’s previous offer was valued at $1.38.

However, we learned last month that Sigma Healthcare Ltd (ASX: SIG) had also thrown its hat into the ring, putting up an offer worth $1.57 a share. As it stands today, there is no sign who will end up winning the bidding war. Although Wesfarmers has yet to top the offer Sigma has on the table. Perhaps this dampened investor enthusiasm for Wesfarmers shares in the back half of September.

About the Wesfarmers share price

Although September was a tough month for Wesfarmers, the picture looks more pleasing if we zoom out a little. The company is still up 6.25% year to date in 2021 so far and is also up by close to 22% over the past year.

At yesterday’s closing Wesfarmers share price, the company has a market capitalisation of $62.11 billion, a price-to-earnings (P/E) ratio of 26.06 and a dividend yield of 3.25%.

The post Here’s what happened to the Wesfarmers (ASX:WES) share price in September appeared first on The Motley Fool Australia.

More reading

• 5 defensive ASX shares to guide you through the market correction
• 5 things to watch on the ASX 200 on Wednesday
• The RBA gives ASX 200 shares a slither of good news on a down day
• These 3 ASX 200 shares are topping the volume charts this Tuesday
• How has the AMP (ASX:AMP) share price beaten the market over the past week?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers 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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If you’re looking for blue chip shares to buy, then the current Coles Group Ltd (ASX: COL) share price could make this supermarket giant one to consider right now.

Is the Coles share price good value?

A recent note out of Morgans reveals that its analysts believe the Coles share price is in the buy zone at the current level.

According to the note, the broker currently has an add rating and $19.80 price target on the company’s shares.

Based on the current Coles share price of $16.94, this implies potential upside of 17% over the next 12 months before dividends.

In respect to dividends, Morgans has pencilled in a fully franked 61 cents per share dividend in FY 2022. This represents a 3.6% dividend yield, which increases the total potential return on offer to over 20%.

Why is Morgans bullish?

Morgans was pleased with the company’s performance in FY 2021, noting that its earnings came in ahead of its forecasts.

It said: “FY21 EBIT was up 6% to A$1,873m (2% above Morgans and in line with Bloomberg consensus) and underlying NPAT rose 3% to A$1,005m (2% above Morgans and in line with Bloomberg consensus).”

Morgans was pleased with this and also the company’ healthy balance sheet. The broker believes the latter provides Coles with plenty of scope “to pursue its medium-term investment plans (data, eCommerce, technology, automation, range, stores and sustainability) while maintaining the group’s target dividend payout ratio of 80-90%.”

Overall, its analysts believe the Coles share price is trading at a fair level and offers an attractive yield.

Morgans concluded: “COL is a defensive business with strong market positions and a healthy balance sheet. Trading on 24.6x FY22F PE and 3.3% yield we continue to see the stock as offering good value and maintain our Add rating.”

The post Why this broker sees 17% upside for the Coles (ASX:COL) share price appeared first on The Motley Fool Australia.

More reading

• 2 highly rated ASX dividend shares to buy
• 5 things to watch on the ASX 200 on Tuesday
• September hasn’t been a great month so far for the Coles (ASX:COL) share price
• Woolworths (ASX:WOW) and Coles (ASX:COL) could face a margin shock
• 2 growing ASX dividend shares named as buys

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 owns shares of 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 Bruce Jackson.

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The Bank of Queensland Limited (ASX: BOQ) share price has been a strong performer in 2021.

Since the start of the year, the regional bank’s shares are up 26%.

Where next for the Bank of Queensland share price?

The good news for shareholders is that one leading broker believes the Bank of Queensland share price can still go higher from here.

According to a note out of Goldman Sachs, it has retained its buy rating and $10.09 price target on the bank’s shares.

Based on the current Bank of Queensland share price of $9.50, this implies potential upside of 6.2%.

In addition, Goldman is forecasting a fully franked dividend per share of 45 cents in FY 2022. If you add this into the equation, the total potential return on offer increases to almost 11%.

What did the broker say?

Bank of Queensland is due to release its full year results next week and Goldman is expecting strong earnings growth.

The broker is forecasting full year cash earnings of $406 million. This will be an increase of 80% year on year.

A key driver of this growth will be its above system lending growth and a steady recovery in business lending according to Goldman.

It commented: “For 2H21, BOQ expected to achieve with a steady recovery in business lending through 2H21. (GSe housing +2.8% vs. system (ex-ME Bank), business -1%). We will be keen to hear management commentary around the sustainability of its volumes growth and whether this can be achieved with a reasonable NIM outcome. We note that the recent month’s APRA data indicates 4 straight months of improved momentum (tracking at 13.3% on a 3m ann. basis) and we remind investors that at its 1H21 result, BOQ guided to 2H21 NIM (ex-ME Bank) to be flat hoh.”

Looking ahead, the broker expects the company’s cash earnings growth to continue. It has pencilled in cash earnings of $467 million. This will be an increase of 15% and includes the benefits of the recent acquisition of ME Bank.

All in all, the broker appears to believe this makes the Bank of Queensland share price good value at the current level.

The post Top broker tips Bank of Queensland (ASX:BOQ) share price as a buy appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• If you invested $1,000 in Bank of Queensland (ASX:BOQ) shares a decade ago, here’s what it would be worth now
• Why Bank of Queensland (ASX:BOQ) shares are up 66% in the past 12 months
• The ASX 200 banks may be in danger as half of mortgage-stressed households have “borrowed to the hilt”
• Confirmed: APRA is planning action on home loans, ASX 200 banks drop

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 Telstra Corporation Ltd (ASX: TLS) share price was a relatively positive performer in September.

The telco giant’s shares pushed 2.3% higher over the month. This compares to a 2.6% decline by the S&P/ASX 200 Index (ASX: XJO) over the same period.

This latest gain means the Telstra share price is now up 29% in 2021.

Why did the Telstra share price push higher last month?

The catalyst for the rise in the Telstra share price in September was the release of its investor day update in the middle of the month. At the event, the telco giant unveiled the T25 strategy that will replace its highly successful T22 strategy at the end of FY 2022.

Telstra’s CEO, Andrew Penn, highlighted that T22 was based on transforming the company, whereas T25 will be about driving growth.

He revealed that Telstra will aim for sustained growth and value by targeting mid-single digit underlying EBITDA and high-teens underlying earnings per share compound annual growth rates (CAGR) from FY21 to FY25.

Commenting on the future, the CEO said: “Through T22 we have set the foundation for our future success. We have simplified our operations and products, improved customer experience and reduced our cost base and our InfraCo plans are well progressed, helping us deliver value to shareholders. While T22 has been a success, we have more to do. We are determined to finish the job.”

“Today’s announcement of T25 marks our transition from transformation to growth, from a strategy we had to do, to a strategy we want to do to focus on growth. It is a strategy that builds on the strong foundations we have built over the last three years and remains focussed on what matters most – our customers, our people, our shareholders and on supporting the creation of a vibrant digital economy for Australia,” Mr Penn added.

Is it time to invest?

The good news is that this update went down well with brokers. One of those was Morgans. In response to the update, the broker retained its add rating and lifted its price target to $4.44.

Based on the current Telstra share price of $3.89, this implies potential upside of 14% over the next 12 months.

In addition, the broker is forecasting a 16 cents per share dividend again in FY 2022. This will mean an attractive fully franked 4.1% yield for investors, which stretches the total potential return to over 18%.

The post Here’s what happened to the Telstra (ASX:TLS) share price in September appeared first on The Motley Fool Australia.

More reading

• When was the worst ever day on the Telstra (ASX:TLS) share price chart?
• Why this broker sees 30% upside for the AGL (ASX:AGL) share price
• 2 ASX dividend shares with fully franked yields of more than 5% today
• Did Optus just get a better deal than Telstra (ASX:TLS) for its towers?
• 4 ASX shares looking ripe for the picking now

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 owns shares of 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 Bruce Jackson.

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As Australia battles the Delta strain of the coronavirus, the S&P/ASX 200 Index (ASX: XJO) has nosedived 3.8% over the last month.

It’s even more depressing to think it’s lost 5% since its mid-August peak.

So more investors are now starting to wonder about defensive ASX shares.

Pengana Australian Equities Fund is certainly thinking that way, according to a webinar seen on Tuesday.

Analyst Mark Christensen said his team is unearthing resilient stocks by applying one of 3 tests:

• Inflation protection through pricing power and long-term contracts
• Avoiding ‘forecasting errors’ for post-lockdown and post-COVID performance
• Resilience to supply chain and inventory disruptions

What does the Pengana team mean by “avoiding forecasting errors”?

“We protect ourselves here by making sure that we’re in defensively characterised businesses to start off with,” he said.

“That is businesses that are not going to have volatile earnings. Businesses that have been pretty solid through COVID and hopefully coming out of it as well. And whose underlying drivers are not so cyclical but have some fundamental growth underlay.”

The additional element the Pengana team favours is transparent business models, which provide certainty for ongoing earnings.

People need these products, it’s not a choice

Christensen cited respiratory device maker Resmed CDI (ASX: RMD) as a classic defensive example.

“People who use those products do so because they need them. It’s not discretion.”

Resmed shares are down a whopping 11.3% over the past month, but have climbed 27.4% this year despite that.

Supermarket giant Woolworths Group Ltd (ASX: WOW) is another business with a transparent revenue model and stable earnings.

“Woolworths is obviously a very defensive stock,” said Christensen.

Shares for Woolies are up nearly 16% for the year so far, but have shaved 3.6% from the price over the past month.

The other ASX shares Christensen likes for their resilience are healthcare player CSL Limited (ASX: CSL), private hospital network Ramsay Health Care Limited (ASX: RHC), and property developer Mirvac Group (ASX: MGR).

CSL and Ramsay have been hammered 6.5% and 4.3% downwards respectively in the past month. Mirvac shares have lost 6.2%.

“More than half of our portfolio is in what we call defensive names, and that helps a lot when we’re making an assessment about what future earnings look like.”

The post 5 defensive ASX shares to guide you through the market correction appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• The RBA gives ASX 200 shares a slither of good news on a down day
• Is the CSL (ASX:CSL) share price a buy today?
• These 3 ASX 200 shares are topping the volume charts this Tuesday
• How has the AMP (ASX:AMP) share price beaten the market over the past week?

Motley Fool contributor Tony Yoo owns shares of CSL Ltd. and ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended Ramsay Health Care Limited and ResMed Inc. 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 A2 Milk Company Ltd (ASX: A2M) share price will be one to watch closely on Wednesday.

This follows news that the embattled infant formula company has been hit with a class action.

A2 Milk share price on watch after class action

The A2 Milk share price could come under pressure today after Slater & Gordon Limited (ASX: SGH) revealed that it has filed a class action in the the Supreme Court of Victoria. This is on behalf of shareholders that bought A2 Milk shares between 19 August 2020 and 9 May 2021.

The law firm alleges that the infant formula company engaged in misleading or deceptive conduct in breach of the Corporations Act, and breached continuous disclosure rules when posting four guidance downgrades during the course of FY 2021.

It is because of these downgrades that the A2 Milk share price has lost 54% of its value over the last 12 months.

Slater & Gordon believes that by no later than 19 August 2020, A2 Milk was or ought to have been aware that its FY 2021 guidance and subsequent representations did not adequately take account of a number of factors which would impact the company’s financial performance.

These include:

“a2’s attempts to boost sales by pushing English label infant nutrition stock through the cross-border e-commerce channel with attendant price discounting consequences would necessarily negatively impact its sales in the daigou/reseller channel.”

“a2’s sales through the cross-border e-commerce channel would in turn be impeded by the disruption to the daigou/reseller channel and the loss of associated marketing activity to stimulate consumer demand,” it added.

A2 Milk’s response

This morning A2 Milk acknowledged that it has been notified that group proceedings have been filed in the Supreme Court of Victoria.

In response, the release states: “The Company considers that it has at all times complied with its disclosure obligations, denies any liability and will vigorously defend the proceedings. The Company remains confident in the underlying fundamentals of the business and growth potential.”

The post A2 Milk (ASX:A2M) share price on watch after being hit with class action appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• How did the A2 Milk (ASX:A2M) share price perform in September?
• These were the best performing ASX 200 shares last week
• Top brokers name 3 ASX shares to buy today
• Here’s why the A2 Milk (ASX:A2M) share price is rising again today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. 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 Australian share market is home to a good number of shares offering attractive dividend yields.

But which ones should you buy over others? Here’s are two that analysts rate highly right now:

Aurizon Holdings Ltd (ASX: AZJ)

The first ASX dividend share to look at is Australia’s largest rail freight operator. It connects miners, primary producers, and industry with international and domestic markets via its extensive national rail and road network.

One leading broker that is positive on the company is Macquarie. Its analysts currently have an outperform rating and $4.32 price target on its shares.

The broker believes Aurizon has ~$1 billion of balance sheet capacity that can be used to drive growth through acquisitions.

In addition, the broker is forecasting very generous dividends in the near term. It has pencilled in partially franked dividends of 28.1 cents per share in FY 2022 and then 29.5 cents per share in FY 2023.

Based on the latest Aurizon share price of $3.90, this will mean yields of 7.2% and 7.6%, respectively.

Coles Group Ltd (ASX: COL)

Another ASX dividend share to look at is Coles. Over the last 107 years, Coles has gone from a single store in Collingwood, Victoria to one of the largest and most recognisable brands in Australia. At the last count, the company was operating over 800 supermarkets, over 900 liquor retail stores, and over 700 Coles express stores.

Looking ahead, the company still has room to grow its network. In addition, Coles is aiming to make its operations more efficient through cost cutting plans and its focus on automation. This includes investing heavily in new distribution centres with automation giant Ocado.

All in all, this is expected to underpin solid growth in earnings and dividends over the long term.

For now, the team at Coles are forecasting a fully franked dividends of 61 cents per share in FY 2022 and then 62 cents per share in FY 2023. Based on the current Coles share price of $16.94, this will mean yields of 3.6% and 3.65%, respectively.

Morgans has an add rating and $19.80 price target on Coles’ shares.

The post 2 highly rated ASX dividend shares to buy appeared first on The Motley Fool Australia.

More reading

• Aurizon (ASX:AZJ) share price lifts following sustainability report
• 5 things to watch on the ASX 200 on Tuesday
• September hasn’t been a great month so far for the Coles (ASX:COL) share price
• Woolworths (ASX:WOW) and Coles (ASX:COL) could face a margin shock
• Broker tips BHP (ASX:BHP) and this dividend share to provide huge yields

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 owns shares of and has recommended COLESGROUP DEF SET. The Motley Fool Australia has recommended Aurizon Holdings 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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If you’re wanting to invest in international shares for diversification, then exchange traded funds (ETFs) could help you achieve this.

But which ETFs should you look at? Here are two popular ETFs that could be worth considering:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF to look at is the BetaShares Asia Technology Tigers ETF. It gives investors exposure to 50 of the largest technology and ecommerce companies that have their main area of business in Asia.

Among the companies you’ll be owning a slice of are tech giants such as Alibaba, Baidu, Infosys, JD.com, Samsung, and Tencent Holdings. In addition, you’ll be buying lesser known but high quality tech companies such as Kuaishou Technology, Meituan Dianping, and Pinduoduo.

In respect to the latter, Pinduoduo is an e-commerce platform that offers a wide range of products from daily groceries to home appliances. The Pinduoduo platform connects distributors with consumers directly through an interactive shopping experience. This allows shoppers to team up to buy items in bulk at lower prices. Earlier this year the company revealed that it had 788 million annual active customers.

Another share in the ETF is Tencent. It is a multinational technology conglomerate and one of the largest companies in the world. It is best known for its communication and social platforms, Weixin (WeChat) and QQ, which connect over a billion users with each other.

And while regulatory concerns in China have been weighing on the ETF, the recent weakness in its share price could have created a buying opportunity for patient long-term focused investors.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ETF to look at is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to many of the world’s largest listed companies.

In fact, the ETF currently has a total of 1503 shares in its portfolio. These include companies from all sectors and almost all continents. Vanguard notes that the ETF allows local investors to participate in the long-term growth potential of international economies outside Australia.

Among its 1500+ holdings are the likes of Apple, BP, Exxon Mobil, Facebook, Johnson & Johnson, JP Morgan, LVMH, Nestle, Procter & Gamble, and Visa.

The ETF also provides investors with a source of income. Based on its current share price, the ETF’s dividend yield stands at 1.56%.

The post 2 high quality ETFs for investors in October appeared first on The Motley Fool Australia.

More reading

• Why did the Betashares Asia Technology Tigers ETF (ASX:ASIA) struggle in September?
• Top ASX shares to buy in October 2021
• 2 top tech ETFs for ASX investors in October
• These 2 ETFs could be good long-term growth options
• 2 excellent ETFs generating strong returns for investors

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 Vanguard MSCI Index International Shares ETF. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended 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 Bruce Jackson.

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