The Westpac Banking Corp (ASX: WBC) share price will be on watch this morning.

This follows the release of the banking giant’s highly anticipated half year results.

How did Westpac perform in the first half?

For the six months ended 31 March, Westpac reported a statutory net profit after tax of $3,443 million. This was an increase of 189% over the prior corresponding period and 213% over the second half of FY 2020.

It was a similar story for its cash earnings, which came in at $3,537 million for the half. This was a 256% increase over the prior corresponding period and a 119% lift over the second half of FY 2020. This equates to cash earnings per share of 97 cents.

This comprises Consumer earnings of $1,592 million (up 8%), Business earnings of $920 million (up 92%), Institutional earnings of $230 million (up 56%), New Zealand earnings of NZ$583 million (up 98%), and Specialist earnings of $134 million (up 44%).

Positively, even if you adjust for notable items from all periods, Westpac’s earnings were strong during the half. Excluding notable items, Westpac reported cash earnings of $3,819 million, up 60% year on year and 35% on the second half of FY 2020.

Other key metrics of note were its return on equity, which increased to 10.2% from 2.9%, and its net interest margin of 2.09%. While the latter was down 4 basis points from the prior corresponding period, it was up 6 basis points from the prior half.

Overall, this allowed the Westpac board to declare a fully franked interim dividend of 58 cents per share. This represents a payout ratio of ~60%.

“Promising start”

Westpac’s CEO, Peter King, was pleased with the way the bank has started the financial year.

He said “It has been a promising start to the year with increased cash earnings, growth in mortgages and continued balance sheet strength. First half earnings were considerably higher than the prior corresponding period, mainly due to an impairment benefit reflecting improved asset quality and a better economic outlook. Notable items were also lower.”

Mr King also revealed that the bank’s balance sheet has strengthened.

He explained: “We improved balance sheet strength, with our Common Equity Tier 1 capital ratio rising 153 basis points to 12.34 per cent.”

Another positive that Mr King pointed out was the progress it has made with its new operating model.

Mr King said: “Importantly, we are beginning to see the benefits of our new operating model through improved performance. Our Australian mortgage book increased $2.6 billion over the past six months, with good growth in owner occupier loans partly offset by lower investor lending. Owner occupier loans increased 3 per cent, with first home buyers making up 13 per cent of new loans. We also managed margins well, with the margin up six basis points from Second Half 2020.”

The chief executive also gave investors an update on how the bank is faring in respect to COVID-19.

He commented: “Australia and New Zealand have managed the pandemic well and we are proud to have helped so many customers return to full repayments. Stressed exposures to total committed exposures ended the half at 1.60 per cent, compared to 1.91 per cent at 30 September 2020. While the economic outlook is more positive, there is still some uncertainty and we have remained prudent in our impairment provisioning.”

Cost cutting plan

As well as its results, the banking giant also revealed some major cost cutting plans over the coming years, which could give the Westpac share price a lift.

Westpac is targeting an $8 billion cost base by financial year 2024 to materially improve its efficiency. This compares to a ~$10.2 billion cost base in FY 2020.

Mr King explained: “A significant reset is required to ensure the business is cost competitive over the long term, particularly as we navigate the pandemic’s recovery phase and an extended low-rate environment. The main drivers are simplification and digitisation as we exit all specialist businesses and accelerate our digital transformation.”

“We need to do things differently to deliver a competitive cost base, including redesigning and digitising many of our processes. We expect costs to increase in FY21 as we deliver on our Fix priority, before starting to fall from FY22,” he added.

The Westpac share price is up 27% since the start of the year.

More reading

• 5 things to watch on the ASX 200 on Monday
• 7 ASX 200 shares with emission reduction strategies
• Why ASX bank shares may be facing a big sell-off in the next few weeks
• Why do ASX dividend shares underperform the market?
• What to expect from the Westpac (ASX:WBC) half year result

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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 CSL Limited (ASX: CSL) share price had a better month during April.

Although it underperformed the S&P/ASX 200 Index (ASX: XJO), it recorded a 2.5% gain over the 30 days.

This means the CSL share price is now down just 5% year to date and up 12% from its March low.

Why did the CSL share price recover in April?

The CSL share price has come under significant pressure over the last 12 months due to concerns over plasma collections.

Plasma is a key ingredient in many of the biotherapeutics company’s therapies such as immunoglobulins and albumin.

It needs to be collected from willing donors on a regular basis via CSL’s widespread collection centres. However, the COVID-19 pandemic has made collections very difficult for a number of reasons.

Chief among them is people staying home during the pandemic to avoid catching and spreading the virus.

In addition to this, given that CSL pays for donating plasma, many donors are doing it for the extra funds. However, with government stimulus putting money into the pockets of these potential donors, there is reduced need to do so.

The problem with this is that lower supply means that the prices being offered to donors has had to increase, leading to potential pressures on margins.

What’s the latest?

The good news for shareholders and the CSL share price is that one leading broker believes this headwind could now be easing.

A note out of Citi last month reveals that it believes plasma collections will return to 2019 levels during the second half of the 2021 calendar year.

This is thanks to the progress of the US vaccine rollout, which has seen an estimated 40% of Americans now having at least one vaccination.

Can CSL’s shares climb higher?

Citi has a buy rating and $310.00 price target on the company’s shares.

Based on the current CSL share price, this implies potential upside of more than 14% over the next 12 months.

This could make it worth considering in May.

More reading

• Top ASX shares to buy in May 2021
• How to find the best ASX shares on the share market
• Only 40% of Australians want the AstraZeneca vaccine. What could this mean for CSL (ASX:CSL)?
• 4 ASX shares to boom when inflation goes up: fundie
• Should CSL (ASX:CSL) be your next dividend share?

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 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 two ASX dividend shares in this article provide solid income every year, including through the difficult COVID-19 times of 2020.

Not every business was able to maintain or grow the dividend during 2020. Indeed, plenty of businesses cut the dividend – Commonwealth Bank of Australia (ASX: CBA) and Transurban Group (ASX: TCL) are just two examples.

These two ASX dividend shares may be able to offer reliable income in these uncertain times:

Brickworks Limited (ASX: BKW)

Brickworks has one of the most enviable dividend records on the ASX. Shareholders haven’t seen a dividend cut in over 40 years.

Management have expertly guided the business through difficult times with a range of different assets and businesses which can support each other.

In the good times, Brickworks’ building products businesses can perform very well. Indeed, the Australian market is currently experiencing solid performance as the economy recovers from the impacts of the COVID-19 recession. Its subsidiaries are among the best in their respective sectors such as Austral Bricks and Bristle Roofing.

It has been the shareholding of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares that has been particularly useful for supporting the Brickworks dividends over the years. The investment conglomerate has a diversified portfolio of telecommunications, resources, property, financial services and agriculture. These investments generate cashflow and pay dividends.

The segment that could create a lot of value in the next few years is its industrial property trust with Goodman Group (ASX: GMG). Once two large warehouses are completed, including one for Amazon, it’s expected this will significantly increase the rental profit and capital value of the trust. This should be very beneficial for Brickworks.

Charter Hall Long WALE REIT (ASX: CLW)

This real estate investment trust (REIT) might be one of the most consistent dividend payers out of the whole sector. It’s able to be so reliable for investors because of its long-term rental agreements, hence the name. Its weighted average lease expiry (WALE) at the end of the first half of FY21 was 14.1 years. That provides a lot of long-term income visibility.

The ASX dividend share aims to pay out 100% of its distributable earnings each year. It’s currently expecting to generate at least 29.1 cents of operating earnings per security (EPS). That means it’s expecting to pay a yield of at least 6% in FY21.

Its tenants are some of the highest-quality ones that you could want to have. Australian government entities, Woolworths Group Ltd (ASX: WOW), Telstra Corporation Ltd (ASX: TLS), Coles Group Ltd (ASX: COL) and Inghams Group Ltd (ASX: ING) are some of the biggest tenants.

Charter Hall Long WALE REIT has only been listed for around four and a half years, but it has increased its distribution in each financial year since then.

It continues to diversify its portfolio. For example, it recently acquired the David Jones flagship Elizabeth Street store as well as a BP service station portfolio.

The REIT is currently rated as a buy by the broker Morgan Stanley with a price target of $5.35. The broker expects the ASX dividend share to pay a yield of 6.4% in FY22.

More reading

• Why dividend investors should love Brickworks (ASX:BKW) shares
• 2 high-quality ASX 200 shares to buy today
• 3 ASX shares that keep growing the dividend every year
• Got money to invest for dividends? Here are 3 ASX shares
• 2 ASX dividend shares to buy with yields above 4%

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, Telstra Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET, Transurban Group, and Woolworths 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 looking for some excellent ASX dividend shares to add to your income portfolio? 

Then you might want to take a look at the ASX dividend shares named below. Here’s what you need to know about them:

Aventus Group (ASX: AVN)

The first ASX dividend share to look at is Aventus. It is the largest fully-integrated owner, manager, and developer of large format retail centres in Australia.

Aventus owns 20 retail centres which are home to a range of high quality national retailers such as ALDI, Bunnings, and Officeworks. In fact, at the last count, national retailers represented ~87% of its total portfolio.

Unlike many other retail landlords, Aventus has performed positively during the COVID-19 pandemic. This led to the company reporting growth in both revenue and profit during the first half of FY 2021.

Macquarie is positive on the company and currently has an outperform rating and $3.15 price target on its shares. The broker is also expecting a 16.3 cents per share distribution in FY 2021. Based on the current Aventus share price, this represents a 5.5% distribution yield.

BWP Trust (ASX: BWP)

Another dividend share to look at is BWP. It is the largest owner of Bunnings Warehouse sites across Australia with 68 properties leased to the home improvement giant.

Bunnings has proven to be a great tenant to have during the pandemic. With many consumers redirecting their spending to improving their homes, Bunnings has experienced very strong sales growth. This means BWP, like Aventus, has been one of just a handful of retail landlords that has been able to collect rent largely as normal.

This and positive property revaluations led to the company’s profit climbing 6% to $144 million during the first half of FY 2021.

Furthermore, its solid form has allowed management to reaffirm its distribution guidance of ~18.3 cents per share in FY 2021. Based on the current BWP share price, this represents a generous 4.4% dividend yield.

More reading

• 2 ASX dividend shares with big yields
• 2 ASX dividend shares with very generous yields
• 2 ASX dividend shares with generous yields
• 2 quality ASX dividend shares for income investors
• These high yield ASX dividend shares are rated as buys

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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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On Friday the S&P/ASX 200 Index (ASX: XJO) finished the week on a very disappointing note. The benchmark index fell 0.8% to 7,025.8 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 futures pointing lower

The Australian share market looks set to start the week with a decline. According to the latest SPI futures, the ASX 200 is expected to open the week 7 points or 0.1% lower this morning. This follows a poor finish to the week on Wall Street, which saw the Dow Jones fall 0.55%, the S&P 500 drop 0.7%, and the Nasdaq tumble 0.85%.

Westpac half year update

The Westpac Banking Corp (ASX: WBC) share price will be on watch today when it releases its half year results. According to a note out of Goldman Sachs, its analysts have pencilled in cash earnings (before one-offs) of $3,400 million. This will be up 242% on the prior corresponding period. From this, Goldman expects the Westpac board to declare a fully franked 56 cents per share interim dividend.

Oil prices tumble

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could start the week on a disappointing note after oil prices tumbled lower. According to Bloomberg, the WTI crude oil price fell 2.2% to US$63.58 a barrel and the Brent crude oil price dropped 1.9% to US$66.76 a barrel. Concerns over demand in India weighed heavily on prices.

Gold price flat

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch today after the gold price traded flat on Friday night. According to CNBC, the spot gold price ended the week at US$1,767.0 an ounce.

PointsBet rated as a buy

The Pointsbet Holdings Ltd (ASX: PBH) share price could be great value according to one leading broker. This morning, Goldman Sachs responded to the sports betting company’s third quarter update by retaining its buy rating with a slightly trimmed price target of $17.20. This compares to the current PointsBet share price of $13.60. It said: “We view PBH’s 3Q21 update as a strong set of numbers, further validating our positive thesis on the stock.”

More reading

• Top brokers name 3 ASX shares to buy next week
• These were the worst performing ASX 200 shares in April
• These were the best performing ASX 200 shares in April
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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 looking for an easy way to invest your hard-earned money, then exchange traded funds (ETFs) could be worth considering. Rather than deciding on which individual shares you should put your funds into, ETFs allow you to invest in a large group of shares through just a single investment.

With that in mind, here are three ETFs that are highly rated:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ETF to look at is the BetaShares Global Cybersecurity ETF. As its name implies, this fund provides investors with exposure to the leaders in the global cybersecurity sector. BetaShares notes that this is heavily under-represented on the ASX, making this ETF particularly attractive for local investors. Especially as the sector is forecast to grow materially over the next decade due to the growing importance of cybersecurity. Among the companies in the fund are cybersecurity giants Accenture, Cloudflare, Crowdstrike, and Okta. 

BetaShares NASDAQ 100 ETF (ASX: NDQ)

A second ETF to consider is the BetaShares NASDAQ 100 ETF. This is one of the most popular ETFs around and for very good reason. The BetaShares NASDAQ 100 ETF gives investors a slice of the 100 largest non-financial shares on the famous NASDAQ index. This means you’ll be buying a stake in tech giants including Alphabet, Amazon, Apple, Facebook, Microsoft, Netflix, and Tesla, to name just a few. 

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

A final ETF to look closely at is the VanEck Vectors Video Gaming and eSports ETF. This ETF gives investors exposure to a portfolio of the largest companies involved in video game development, hardware, and eSports. This side of the market has been growing strongly in recent years and is expected to continue doing so over the medium term. Some of the companies you’ll be buying a slice of include Nvidia, Take-Two, and Electronic Arts. VanEck notes that these companies are in a position to benefit from the increasing popularity of video games and eSports.

More reading

• 2 top ETFs to buy in May 2021
• Top ASX shares to buy in May 2021
• 2 great ASX growth shares to buy
• Province Resources and Zip were among the most traded ASX shares last week
• Is this new ASX eSports ETF a winner?

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 BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of BETA CYBER ETF UNITS. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS and 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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With low interest rates likely to be here to stay for some time to come, it certainly is a difficult time for income investors.

But don’t worry, because there are plenty of ASX dividend shares that can help you overcome low rates. Two that are highly rated are listed below:

National Storage REIT (ASX: NSR)

The first ASX dividend share to look at is National Storage. It is a leading self-storage focused real estate investment trust with a network of over 200 centres.

While this is a large number, management doesn’t plan to stop there. It continues to see room to expand its network in the future via its development projects and growth through acquisition strategy.

This should be supportive of further growth in its income and distributions over the next decade. Especially given the improving housing market, which traditionally results in growing demand for its services as people move homes or downsize.

In FY 2021, the company expects to report underlying earnings per share of 7.7 cents to 8.3 cents. From this, it plans to pay 90% to 100% out to shareholders as distributions.

Based on the middle of these guidance ranges, its shares offer investors a forward 3.8% dividend yield.

Super Retail Group Ltd (ASX: SUL)

Another ASX dividend share to consider is this retail conglomerate. Super Retail is the name behind popular retail brands BCF, Macpac, Rebel, and Super Cheap Auto.

Demand for its offering has been strong over the last 12 months thanks to a redirection in consumer spending. This led to Super Retail reporting a 23% increase in first half sales to $1.78 billion and a 139% increase in underlying net profit after tax to $177.1 million.

Pleasingly, Goldman Sachs is expecting a strong second half from Super Retail. As a result, it suspects that special dividend could be coming and is forecasting an 81 cents per share fully franked total dividend for FY 2021. Based on the latest Super Retail share price, this represents a 6.8% yield.

Goldman Sachs has a buy rating and $15.00 price target on its shares.

More reading

• Should you always reinvest your ASX dividends with a DRIP?
• Why retailers are stepping up as top performing ASX shares this week
• Brokers name 2 quality ASX dividend shares to buy
• Why ASX 200 retail shares like Super Retail (ASX:SUL) are worth watching
• Brokers think these shares can outperform the ASX 200

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail 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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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:

Coles Group Ltd (ASX: COL)

According to a note out of Credit Suisse, its analysts have upgraded this supermarket operator’s shares to an outperform rating with an $18.19 price target. This follows the release of its third quarter sales update last week. The broker believes that consumer shopping behaviour is normalising, noting increased Sunday shopping and strong performances from shopping centre based stores. Combined with its undemanding valuation and positive growth outlook over the coming years, it believes now is a good time to invest. The Coles share price ended the week at $16.32.

Kogan.com Ltd (ASX: KGN)

Another note out of Credit Suisse reveals that its analysts have retained their outperform rating but trimmed the price target on this ecommerce company’s shares to $17.93. According to the note, the broker believes the issues that are impacting Kogan currently will only be temporary. In light of this, it feels investors should be focusing on its positive medium term outlook. The Kogan share price was fetching $11.08 at the close of play on Friday.

Newcrest Mining Ltd (ASX: NCM)

Analysts at Morgan Stanley have retained their overweight rating and $30.20 price target on this gold mining giant’s shares. According to the note, the broker was pleased with its third quarter performance. This was particularly the case with its Cadia and Lihir operations, which both had a solid quarter. Positively, Morgan Stanley notes that the gold miner has retained its guidance for FY 2021 and provided positive commentary on the SAG mill motor replacement. The Newcrest share price was trading at $26.52 at Friday’s close.

More reading

• Top ASX shares to buy in May 2021
• 2 buy-rated ASX dividend shares to snap up in May
• What happened to the Coles (ASX:COL) share price over April?
• Is the Woolworths (ASX:WOW) share price a buy after its Q3 update?
• 5 things to watch on the ASX 200 on Friday

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 Kogan.com ltd. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia 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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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:

Blackmores Limited (ASX: BKL)

According to a note out of Citi, its analysts have retained their sell rating and $55.00 price target on this health supplements company’s shares. The broker notes that Nestle has announced the acquisition of fellow vitamin maker Bountiful Company for US$5.75 billion. While it acknowledges that this could be an indication of broader interest in the vitamins sector, it feels that Blackmores’ shares are too expensive for it to be considered a takeover target. The Blackmores share price ended the week at $71.64.

Commonwealth Bank of Australia (ASX: CBA)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating but lifted the price target on this banking giant’s shares to $83.00. According to the note, the broker suspects that provision releases and more modest rises in underlying loss rates will be supportive of the earnings per share upgrade cycle continuing. This bodes well for dividend increases in the coming years. However, due to concerns over its valuation, the broker isn’t in a rush to change its rating on this banking giant’s shares. The Commonwealth Bank share price was fetching $89.04 at the close of play on Friday.

Regis Resources Limited (ASX: RRL)

Analysts at Goldman Sachs have retained their sell rating and cut their price target on this gold miner’s shares to $2.70. According to the note, the broker has downgraded its earnings estimates materially to reflect a soft quarterly update and a reduction in full year production estimates. And while it notes that its shares are now trading below its price target, it isn’t changing its rating. This is due to execution risks at McPhillamys, regulatory approval risks, its out-of-the-money hedge book, and relative valuation. The Regis Resources share price ended the week at $2.60.

More reading

• How the Commonwealth Bank (ASX:CBA) share price moved this week
• Why ASX bank shares may be facing a big sell-off in the next few weeks
• Why do ASX dividend shares underperform the market?
• Why Coles, Nickel Mines, Nitro, & Regis Resources are storming higher
• Why ASX gold miner Regis Resources (ASX:RRL) share price is moving higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores 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 some really good exchange-traded funds (ETFs) that investors can buy on the ASX.

Some ETFs haven’t been able to generate much returns in recent times. But others have done very well and could continue to do well because of the underlying portfolio:

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

This is an ETF that is all about giving investors exposure to businesses with sustainable competitive advantages. Or, in Warren Buffett’s words, it’s about finding businesses with wide economic moats. That means it’s hard for competitors to cross that ‘moat’ and challenge the business.

The Morningstar equity research team look for these quality US companies that can pass the equity research process.

Those shares also have to be trading at attractive prices, relative to Morningstar’s estimate of fair value, before the ETF would buy them.

It’s a reasonably cheap management cost of 0.49% per annum, which means a good chunk of the returns stay in the hands of the investor.

VanEck Vectors Morningstar Wide Moat ETF aims to have at least 40 holdings. At the moment it has 49. At the end of March 2021, some of its largest holdings included Wells Fargo, Intel, Altria, General Dynamics, Blackbaud, Boeing, Cheniere Energy and Biogen.

Over the last five years, the return of the ETF has been an average of 19.3% per annum. That is around 3.5% per annum better than the S&P 500, which is a fair benchmark considering all of this ETF’s holdings are US-listed. But plenty of those companies have global earnings.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

This ETF idea is more concentrated on a single theme. That theme is video gaming and e-sports, if you didn’t catch that from the name of it.

The competitive video gaming audience is expected to reach 646 million people globally by 2023 according to the Newzoo Global Exports Market Report, partly because of the rising number of people using the internet.

E-sports revenue growth has increased an average of 28% per annum since 2015. Video gaming has seen 12% average annual growth since 2015.

VanEck explains that the ETF has a number of different exposures including video game and related hardware and software developers, streaming services, companies involved in e-sports events and so on.

To be included in the ETF, at least 50% of the revenue must be from video gaming or e-sports.

There are 25 holdings in total, including Nvidia, Tencent, Advanced Micro Devices, Sea, Nintendo, Activision Blizzard, Netease, Take Two Interative Software, Nexon and Electronic Arts.

This ETF is more diversified than the first one I mentioned, geographically speaking. The countries with more than a 5% weighting include: the US (38.5%), Japan (21.1%), China (18.4%), Singapore (6.6%) and South Korea (5.3%).

VanEck Vectors Video Gaming and eSports ETF’s management fee is a little more expensive at 0.55% per annum. But the returns of the benchmark index have been really good – 30.9% per annum over the last three years.

More reading

• Top ASX shares to buy in May 2021
• 2 quality ETFs for ASX investors in May
• 2 great ASX growth shares to buy
• Is this new ASX eSports ETF a winner?
• 2 exciting ETFs ASX investors need to know about

Motley Fool contributor Tristan Harrison 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 and VanEck Vectors Morningstar Wide Moat 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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