iShares S&P 500 ETF (ASX: IVV) might be a smart investment to consider for the long-term.

The S&P 500 is an index that is created by Standard and Poors. The index includes 500 leading companies and covers approximately 80% of available market capitalisation in the US.

There are quite a reasons to think about this exchange-traded fund (ETF) which is offered by Blackrock.

Here are three of those reasons to think it’s a smart potential investment:

Very low costs

Costs, or a lack of costs, can have a big impact on the long-term returns for investors. Some investment managers charge well north of 1% per annum. With plenty charging performance fees on top of that.

Compare that to iShares S&P 500 ETF, which has an annual management fee of 0.04%.

That is very, very low and allows almost all of the gross returns to be turned into net returns for investors.

High-quality holdings

The businesses in the iShares S&P 500 ETF have had to be the cream of the crop to get to the size they are. Plenty of them are still growing, not just in the US but around the world.

Companies like Microsoft, Alphabet, Apple and so on make huge amounts of profit around the globe – not just in the US. They have extremely strong competitive positions.

But there are plenty of businesses beyond the world’s biggest tech names in the S&P 500 portfolio like Tesla, Berkshire Hathaway, Nvidia, JPMorgan Chase, Johnson & Johnson, Visa, UnitedHealth, Home Depot, Proctor & Gamble, PayPal, Mastercard, Walt Disney, Adobe, Bank of America, Pfizer, Salesforce, Netflix, Nike and so on.

As a group, the S&P 500 has performed strongly over the last decade. However, past performance does not guarantee future results. The iShares S&P 500 ETF has returned an average of 19.9% per annum over the past decade.

Diversification

iShares S&P 500 ETF offers plenty of diversification. Geographically, the earnings come from across the world.

But the businesses also spread across various sectors as well. But tech gets the biggest weightings, which typically comes with higher margins and more profit growth.

iShares S&P 500 ETF, at 5 August 2021, had the following allocations of more than 5%: IT (27.85%), health care (13.4%), consumer discretionary (12.06%), communication (11.22%), financials (11%), industrials (8.31%) and consumer staples (5.76%).

But some of the businesses are classified in other sectors that could also count as tech like Facebook and Alphabet classified as communication, and Amazon and Tesla classified as consumer discretionary.

The post Why iShares S&P 500 ETF (ASX:IVV) could be a really smart investment appeared first on The Motley Fool Australia.

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• ASX investors could diversify their portfolios with these quality ETFs
• Best ASX ETF? This fund would be Warren Buffett’s top pick
• 2 top ETFs that might be buys in August 2021
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• 3 reasons why the iShares S&P 500 ETF (ASX:IVV) could be a great investment

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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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If you’re looking to add some growth shares to your portfolio in August, then you may want to look at the shares listed below.

All three of these ASX growth shares have been tipped as buys recently. Here’s what you need to know about them:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is this leading appliance manufacturer. It has been growing solidly for years and has been tipped to continue this positive trend in the future. This is thanks to the popularity of Breville’s products, favourable tailwinds such as working from home, and its ongoing international expansion. The company also invests heavily in research and development to ensure it has a pipeline of innovative products.

UBS is bullish on its prospects and expects its growth to continue. The broker currently has a buy rating and $35.70 price target on its shares.

Hipages Group Holdings Ltd (ASX: HPG)

Another ASX growth share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider. The company’s increasingly popular platform connects consumers with trusted tradies to simplify home improvement. At the end of June, Hipages had 31,200 tradie subscriptions on its platform and provided them with 353,000 job leads during the fourth quarter of FY 2021.

Analysts at Goldman Sachs are very bullish on the company’s prospects. They believe it has a huge growth runway ahead as its ecosystem builds. Goldman currently has a buy rating and $4.10 price target on its shares.

WiseTech Global Ltd (ASX: WTC)

A final ASX growth share to consider is this logistics solutions company. WiseTech is the company behind the popular CargoWise One solution, which allows users to execute complex logistics transactions and manage freight operations from a single, easy to use platform. Demand has been growing strongly over the last decade, underpinning stellar sales and profit growth. Pleasingly, WiseTech appears well-placed to continue its strong growth long into the future. This is thanks to its high quality platform, strong market position, and growing freight volumes globally.

The team at Morgan Stanley are very positive on the company. They currently have an overweight rating and $35.00 price target on its shares.

The post 3 compelling ASX growth shares that could be buys in August 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 Hipages Group Holdings Ltd. and WiseTech Global. The Motley Fool Australia owns shares of and has recommended WiseTech Global. 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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.

Here’s why brokers think investors ought to buy them next week:

Appen Ltd (ASX: APX)

According to a note out of Citi, its analysts have retained their buy rating and $18.80 price target on this artificial intelligence data services company’s shares. It notes that Facebook and Google have reported an acceleration in advertising revenue again. Citi suspects that this could lead to the companies increasing their investment in artificial intelligence and machine learning activities. The Appen share price was trading at $12.55 on Friday.

National Australia Bank Ltd (ASX: NAB)

A note out of Macquarie reveals that its analysts have retained their outperform rating and $28.00 price target on this banking giant’s shares. This follows news that NAB will undertake a $2.5 billion share buyback. Macquarie was pleased with the news and believes it demonstrates the strength of the business despite current lockdowns. Positively, Macquarie doesn’t expect the buybacks to stop there. It suspects there could be $5.5 billion of capital returns for investors over the next three years. The NAB share price ended the week at $26.69.

Origin Energy Ltd (ASX: ORG)

Analysts at Credit Suisse have upgraded this energy company’s shares to an outperform rating with an improved price target of $4.80. This follows the release of guidance for its Energy Markets business for FY 2022 and FY 2023. While the former is lower than Credit Suisse expected, it was pleased the latter is ahead of its forecasts. Overall, the broker believes FY 2022 is the bottom for its earnings and sees value in its shares at the current level. The Origin share price was trading at $4.27 at Friday’s close.

The post Top brokers name 3 ASX shares to buy next week 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 Appen Ltd. The Motley Fool Australia owns shares of and has recommended Appen Ltd. 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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Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

A2 Milk Company Ltd (ASX: A2M)

According to a note out of Credit Suisse, its analysts have retained their underperform rating and $5.50 price target on this embattled infant formula company’s shares. Although the broker is seeing improvements on Chinese ecommerce platforms, it isn’t enough for a change of rating. The broker continues to believe that the company will underperform the market’s expectations in the coming years. Particularly given the weakness in the daigou channel. The a2 Milk share price ended the week at $5.97.

BWP Trust (ASX: BWP)

A note out of Citi reveals that its analysts have retained their sell rating but lifted their price target slightly on this Bunnings landlord’s shares to $2.90. This follows the release of a full year result that fell a touch short of the broker’s expectations. And while operating trends are solid, it doesn’t see enough value in its shares to have a more positive rating. Though, it does see upside risk from earnings accretive acquisitions. The BWP share price was trading at $4.02 at Friday’s close.

Mineral Resources Limited (ASX: MIN)

Analysts at Morgan Stanley have retained their underweight rating but lifted their price target on this mining and mining services company’s shares to $49.70. According to the note, the broker believes the market is overlooking a number of risks. This includes the successful execution of new projects and the potential for a widening discount for low grade iron ore. The Mineral Resources share price ended the week at $58.95.

The post Top brokers name 3 ASX shares to sell next week 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 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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Kogan.com Ltd (ASX: KGN) was one of ASX’s biggest COVID-19 winners. The first lockdown experienced by Australians – put in place in late March 2020 – seemingly spurred an intense increase to the Kogan share price.

The gains were helped along by the online retailer reporting a series of record monthly sales.

This weekend, as Southeast Queensland, Victoria, and Sydney are locked down, Kogan is celebrating a week in which its share price gained 11.8%.

Shares in Kogan finished Friday’s session trading for $11.35 a piece.

Could this be a pattern? Let’s take a look at how Kogan’s shares have reacted to previous lockdowns.

How Kogan stock reacts to lockdowns

Months after Australia’s initial lockdowns, Victoria’s second wave took hold.

Lockdowns began in Melbourne on June 30 2020. By 3 August 2020, Victoria had entered stage 4 restrictions. Kogan’s shares gained 9.5% the day the major restrictions were implemented and 37% between then and October 19, when restrictions began to ease in the state.

Victoria entered another lockdown on 12 February 2021, a day in which the Kogan share price gained 4.7%.

Then, when embattled Victoria entered yet another 7-day lockdown – later extended to 14 days on 27 May 2021, the Kogan share price gained 3%.  

June 2021 brought a period of short, sharp lockdowns. Parts of Sydney entered their first ‘soft’ lockdown on 25 June, while parts of the Northern Territory, Western Australia, and Queensland were put into short lockdowns on 27 June, 28 June, and 29 June respectively.

Interestingly, the Kogan share price gained 13% over the first 2 days of Sydney’s lockdown, before falling 10.9% over 29 June and 30 June.

Between 15 July and 5 August, two lockdowns were announced for Victoria – the latest announced just yesterday. While South Australia and Brisbane have experienced one each. All the while Sydney has continued to be locked down.

The Kogan share price has fallen 2% in that time frame. However, it has gained 11% since Brisbane entered its lockdown last Saturday. It also shot up 3% on Friday following Victoria’s snap lockdown.

Kogan share price snapshot

In a silver lining for Kogan shareholders stuck at home, Kogan has a pattern of gaining when states lockdown.

Though, this year hasn’t been good for Kogan on the ASX.

Its shares have fallen 41% since the start of 2021. They’ve also dropped 39% over the last 12 months.

The post How does the Kogan share price perform during lockdowns? 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. owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. 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 boost your income with some dividend shares, then you might want to consider the ones listed below.

Here’s why analysts have given them buy ratings:

Coles Group Ltd (ASX: COL)

The first ASX dividend share to look at is Coles. It could be a quality option due to its positive outlook and strong market position.

In respect to the latter, the company has over 800 supermarkets across the country, over 900 liquor retail stores, and over 700 Coles express stores. From this network, the company processes more than 21 million customer transactions each week. This demonstrates just how dominant its market position is alongside rival Woolworths Group Ltd (ASX: WOW).

Goldman Sachs is very positive on Coles and is forecasting robust growth over the medium term. In light of this, the broker has put a buy rating and $19.40 price target on its shares.

The broker expects dividends per share of 62 cents in FY 2021, 67 cents in FY 2022, and 73 cents in FY 2023. Based on the latest Coles share price of $18.01, this will mean fully franked yields of 3.4%, 3.7%, and 4.1%, respectively.

Transurban Group (ASX: TCL)

Another ASX dividend share to look at is Transurban. It is one of the world’s leading toll road operators with key roads in Melbourne, Sydney and Brisbane, as well as in Greater Washington, United States and Montreal, Canada.

Transurban also considers itself to be a technology company. It has been investing in research and development activities in order to create innovative tolling and transport technology that makes travel easier for everyone.

While its near term is likely to underwhelm due to lockdowns and border closures, the longer term remains very positive. Particularly given the company’s significant pipeline of opportunities in its core markets that look set to underpin its next growth phase.

Ord Minnett believes it is worth being patient with the company. Its analysts have a buy rating and $16.00 price target on the company’s shares.

The broker is forecasting dividends per share of 36.5 cents in FY 2021 and then 57.7 cents in FY 2022. Based on the latest Transurban share price of $14.31, this will mean yields of 2.6% and 4%, respectively, over the next two years.

The post 2 buy-rated ASX dividend shares for August 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 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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This weekend could be an opportune time to research ASX shares that are not widely known.

Smaller businesses may have the potential to produce good returns because they are at an earlier point of their growth journey.

Here are two to think about:

Pacific Current Group Ltd (ASX: PAC)

Pacific Current is a fund manager which invests in boutique asset managers around the world. Some of the investments include GQG, ROC, Proterra, Pennybacker and Victory Park. One of its newest investments includes Astarte Capital Partners.

The ASX share supports its investments with both capital and expertise to help them grow. Those investments have been growing quite a lot during FY21. Its economic relationship with each fund manager is different, so it benefits somewhat differently from each investment as they grow.

In the last three months of FY21, the company said that total funds under management (FUM) controlled by asset managers within its portfolio increased 15.4% to $142.6 billion. That included “strong” inflows at GQG, ROC, and Victory Park.

At the time of that quarterly update, the Pacific Current CEO Paul Greenwood said:

Over the last few months we have seen signs of broader FUM growth across our portfolio, which bodes well for FUM growth in FY22 and beyond.

The ASX share is currently rated as a buy by the broker Ord Minnett with a price target of $6.90. The broker is attracted to the growth of Pacific Current’s underlying profit (excluding performance fees).

According to Ord Minnett, the Pacific Current share price is valued at 11x FY21’s estimated earnings with a projected grossed-up dividend yield of 8.8%.

Healthia Ltd (ASX: HLA)

This is a small cap ASX share that offers a number of healthcare services including podiatry, physiotherapy, hand and upper arm therapy, pilates, orthopaedic, optometry, retail footwear, custom orthotic manufacturing and medical supplies.

The business has been rapidly expanding thanks to both organic growth and acquisitions.

In the FY21 first half result the business reported revenue growth of 38.9% to $61.5 million. The underlying earnings before interest, tax, depreciation and amortisation (EBITDA) margin increased by 486 basis points year on year to 17.87%. This helped underlying earnings per share (EPS) jump 78.2% to 6.86 cents.

Healthia is aiming to improve its organic growth with initiatives like further enhancing its centralised support functions to clinical teams, finding additional opportunities to co-locate services, introducing services into existing locations and working on new ways to engage its teams.

The ASX share expects to deploy a minimum of $20 million of capital per annum for new allied health acquisitions.

Healthia’s board have been pleased with the profitability of the business, which is why it implemented an interim dividend of 2 cents per share.

The post 2 ASX shares that may be worth looking at this weekend appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison owns shares of PACCURRENT FPO. 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 HEALTHIA FPO. 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 wish to add some diversification to your portfolio in August, then you might want to look at exchange traded funds (ETFs).

ETFs can help investors achieve diversification with relative ease by providing access to a large and diverse number of different shares through a single investment.

With that in mind, listed below are two ETFs which could be worth considering. Here’s what you need to know about them:

iShares Global Consumer Staples ETF (ASX: IXI)

The first ETF to look at is BlackRock’s iShares Global Consumer Staples ETF. This fund gives investors exposure to many of the world’s largest global consumer staples companies. These are companies that produce essential products, including food, tobacco, and household items.

Given how demand for these types of products is relatively consistent whatever the economy throws at them, this ETF is likely to be suitable for investors that are looking for lower risk options.

Among its largest holdings are the likes of Coca-Cola, Nestle, PepsiCo, Procter & Gamble, Unilever, and Walmart.

Over the last 10 years, the iShares Global Consumer Staples ETF has generated an average total return of 13.4% per annum. This would have turned a $10,000 investment in 2011 into ~$35,000.

iShares S&P 500 ETF (ASX: IVV)

Another ETF to look at is the iShares S&P 500 ETF, which is also managed by global giant BlackRock.

The fund manager notes that this ETF gives investors exposure to the top 500 U.S. stocks through a single investment. This can be used to diversify internationally and seek long-term growth opportunities for a portfolio.

Among the ETF’s largest holdings are Amazon, Apple, Berkshire Hathaway, Facebook, JP Morgan, Johnson & Johnson, Microsoft, and Tesla.

Over the last 10 years, the fund has generated an average return of 19.9% per annum. This would have turned a $10,000 investment in 2011 into just over $61,000 today.

The post ASX investors could diversify their portfolios with these quality ETFs 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 owns shares of and has recommended iShares Global Consumer Staples ETF. The Motley Fool Australia has recommended 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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The two ASX shares in this article are impressive and could be worth thinking about in August 2021.

Businesses that are producing a good amount of revenue growth give themselves a strong chance of also producing profit growth. Seeing as investors like to judge and price companies on their profit and cashflow, revenue growth is an attractive feature to have.

The below ASX shares are seeing plenty of growth:

City Chic Collective Ltd (ASX: CCX)

City Chic is a leading retailer of clothes, footwear and accessories for plus-size women.

It operates under a number of different brands including City Chic, CCX, Avenue and Evans. With those brands (and a couple of others), it has a good and growing market position in Australia and New Zealand, the US and the UK.

City Chic is building a portfolio of brands so it can meet the clothing needs of all of its customers. Indeed, the business recently announced another acquisition. It’s called Navabi, which is an online marketplace that sells hundreds of third-party women’s plus-size brands. It has also developed its own brands that are sold on the marketplace.

The customers are predominately from Germany, so this acquisition gives the business an opportunity to expand in Europe. In 2020, the Navabi websites had 5.8 million customer visits in 2020, generating €10.4 million of sales revenue. COVID-19 has affected the business – before the pandemic its website was seeing traffic of more than 10 million visits. Even so, in 2021 the business has been trading profitably.

The ASX share continues to grow, with total profit rising faster than revenue. In a trading update for FY21, City Chic said that sales revenue was up 32.9% to $258 million. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be in the range of $42 million to $42.5 million, being growth of between 58% to 60%.

Trading in FY22 had “exceeded budget” with strong US and UK performance outweighing store closures in Australia.

VanEck Video Gaming and Esports ETF (ASX: ESPO)

This is an exchange traded fund (ETF) that is focused on some of the world’s leasing game makers and other businesses involved to make video games possible.

It’s a fairly concentrated portfolio with 26 different names in the portfolio, though they aren’t ASX shares.

Looking at the holdings list, the biggest 10 weightings are these businesses: Advanced Micro Devices, Nvidia, Sea, Tencent, Nintendo, Unity Software, Activision Blizzard, Netease, Electronic Arts and Take Two Interactive Software.

Video gaming has been around for a long time but revenue continues to grow for these companies at a double digit rate. VanEck says that since 2015, revenue for the video gaming industry has grown by an average of 12% per annum.

But e-sports is where a lot of the growth is right now. The industry is getting audiences the size of the Olympics and it’s unlocking various streams of earnings such as game publisher fees, media rights, merchandise, ticket sales and advertising. E-sports revenue has grown by an average of 28% per annum since 2015.

Past performance is not an indicator of future performance, although the index of these shares has done very well. Over the last five years, the index that this ASX share tracks has grown by an average of 32.75% per annum.

The post 2 impressive ASX shares that could be buys in August 2021 appeared first on The Motley Fool Australia.

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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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports 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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Looking for growth shares to buy? Then you might want to consider the three listed below.

Here’s why they have been tipped as growth shares to buy:

PointsBet Holdings Ltd (ASX: PBH)

The first ASX growth share to look at is PointsBet. It is a leading sports betting company with operations in both the ANZ and US markets.

From these markets, the company is currently generating significant revenue. For example, last week PointsBet revealed that its full year turnover reached $3,781.4 million in FY 2021. This was up an impressive 228% on FY 2020’s turnover. Driving this strong growth was a 117% annual increase in Australian active clients to 196,585 and a 661% increase in US active clients to 159,321.

The good news is that the company is only scratching at the surface of its massive US market opportunity. For example, Goldman Sachs notes that the US sports betting market is forecast to grow at a compound annual growth rate of 40% out to 2033. It estimates that it will be worth US$39 billion a year at that point.

Goldman currently has a buy rating and $14.90 price target on its shares. This compares to the latest PointsBet share price of $10.00.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is Australia’s leading online furniture and homewares retailer. It has been growing at a strong rate over the last few years and particularly during the pandemic. This has been driven by the accelerating shift to online shopping.

This strong form continued in FY 2021, with Temple & Webster recently releasing its full year results and revealing stellar growth again.

For the 12 months ended 30 June, Temple & Webster delivered an 85% increase in revenue to $326.3 million and a 141% jump in EBITDA to $20.5 million. A key driver of its growth in FY 2021 was another strong increase in customer numbers. At the end of the period, Temple & Webster’s active customers were up 62% year on year to 778,000.

Pleasingly, this positive momentum has continued early in FY 2022. Management revealed year on year revenue growth of 39% for the period 1 July to 24 July.

Looking longer term, Temple & Webster appears well-positioned for growth thanks to its strong market position and the structural shift online. The latter is still in its infancy, with very low penetration rates compared to other categories and other Western markets.

One leading broker that is very positive on Temple & Webster is Credit Suisse. Late last month the broker put an outperform rating and $14.62 price target on its shares. This compares to the current Temple & Webster share price of $12.21.

The post 2 exciting ASX growth shares analysts love 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 Pointsbet Holdings Ltd and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd and Temple & Webster Group Ltd. 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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