As was widely expected, on Tuesday the Reserve Bank of Australia elected to keep the cash rate on hold at the record low of 0.1%.

Unfortunately, this looks likely to remain the case for some time to come, possibly even years.

In light of this, dividend shares look likely to remain the best place to earn a passive income for the foreseeable future.

But which ASX dividend shares should you buy? Here are two to consider:

Coles Group Ltd (ASX: COL)

The first ASX dividend share to look at is this supermarket operator. It could be a good option for investors due to its strong business model, refreshed strategy, and positive long term outlook.

Goldman Sachs is a big fan of the company and last week put a buy rating and $20.50 price target on its shares. It continues to forecast solid growth in earnings and dividends over the coming years.

In respect to the latter, the broker is forecasting dividends per share of 62 cents in FY 2021 and 66 cents in FY 2022. Based on the current Coles share price of $16.50, this will mean fully franked yields of 3.75% and 4%, respectively, over the next two years.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

This airport operator could be a good option for patient investors. This is because with domestic tourism recovering and vaccines rolling out across the world, it may not be long until Sydney Airport’s terminals are packed full of passengers again.

One broker that is positive on the company is Goldman Sachs. It believes it is worth being patient with Sydney Airport and currently has a buy rating and $6.73 price target on its shares.

And while the broker isn’t expecting a material dividend yield this year, it is forecasting a swift recovery.

Based on the current Sydney Airport share price, its analysts are forecasting dividend yields of 1.6% in FY 2021 and then 4.5% in FY 2022.

More reading

• 3 reasons why Coles (ASX:COL) is a top ASX dividend share
• Vicinity (ASX:VCX) sees improvements as it struggles back to COVID-normal
• 2 of the best ASX 200 blue chip shares to buy today
• ASX 200 Weekly Wrap: Shares have average week but a great month
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of 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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On Tuesday the S&P/ASX 200 Index (ASX: XJO) was on form and charged higher. The benchmark index rose 0.55% to 7,067.9 points.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 expected to fall

It looks set to be a difficult day of trade for the Australian share market on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 24 points or 0.35% lower this morning. This follows a poor night of trade on Wall Street which saw the Dow Jones rise slightly but the S&P 500 fall 0.7% and the Nasdaq sink 1.9%. The latter could be bad news for local tech shares, which tend to follow the Nasdaq’s lead.

ANZ half year update

The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price will be one to watch today when it releases its half year results. According to a note out of Goldman Sachs, its analysts are expecting the banking giant to report first half cash earnings (pre-one offs) of $3,073 million. This will be a massive 117% increase on the prior corresponding period, which of course was impacted by COVID-19. The broker is expecting this to allow the ANZ board to declare a fully franked interim dividend of 60 cents per share.

Oil prices storm higher

It could be a good day for energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) on Wednesday after oil prices stormed higher. According to Bloomberg, the WTI crude oil price is up 2.1% to US$65.81 a barrel and the Brent crude oil price has climbed 2.1% to US$68.97 a barrel. Demand optimism has been lifting prices this week.

Gold price falls

Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) could come under pressure after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.7% to US$1,779.30 an ounce. This follows comments by US Treasury Secretary, Janet Yellen. She said that interest rates may need to rise to stop the US economy from overheating.

Nearmap guidance upgrade

The Nearmap Ltd (ASX: NEA) share price will be one to watch today following an after market update yesterday. According to the release, trading has remained strong and the company now expects to deliver annual contract value (ACV) of $128 million to $132 million in FY 2021. This compares to its previous guidance of $120 million to $128 million. It will also be a 20% to 24% increase on FY 2020’s ACV of $106.4 million.

More reading

• ASX 200 rises, Flight Centre drops, Super Retail grows
• 2 exciting ASX tech shares that have been tipped as buys
• Nearmap (ASX:NEA) share price on watch after upgrading guidance
• Struggling ASX gold shares just got upgraded by a top broker
• Will May make eight straight months of gains for the ASX 200?

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 Nearmap Ltd. The Motley Fool Australia has recommended Nearmap 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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The S&P/ASX 200 Index (ASX: XJO) went up by 0.6% to 7,068 points.

Here are some of the highlights from the ASX today:

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price fell 4.6% after giving a trading update to investors.

Flight Centre said that it has seen record sales revenue in March after a more subdued January and February. There has been a significant uplift globally at the end of FY21’s third quarter.

March was comfortably higher than the previous COVID-19 record.

The turnover was up more than $100 million higher than February. That’s an increase of 32.7% month on month. It takes gross quarterly total transaction value back above $1 billion for the first time after the onset of COVID.

Flight Centre is currently expecting further growth in April. The recovery continues despite heavy restrictions in key markets.

The Australian corporate and leisure businesses and US leisure business are contributing strongly to the recent improvement.

Flight Centre said that the ending of jobkeeper means it has lost the $5 million to $7 million subsidy per month in Australia during the fourth quarter. It expects to recoup this if state borders stay open.

The ASX 200 business is continuing to target a return in profit before tax during FY22 on a month to month basis in both corporate and leisure.

It’s currently expecting FY21 second half losses to be broadly in line with the first half.

Super Retail Group Ltd (ASX: SUL)

The Super Retail share price went up 0.7% today in reaction to the trading update.

Super Retail has continued to see strong growth. It gave a trading update for the first 44 weeks of FY21.

Supercheap Auto sales were up 21%, Rebel sales were up 20%, BCF sales were up 59%, Macpac sales were up 17%. Overall sales went up by 28%.

Anthony Heraghty, the CEO of Super Retail, said:

Given the continued strength of customer demand, the group has maintained relatively subdued levels of promotional activity in the second half. As a result, the gross margin improvement which the group delivered in the first half has been maintained in the second half.

The group is in a well-stocked inventory position, which has benefited from the arrival of orders made in the first half. Higher shipping costs in the second half have impacted inventory costs but these have been partly offset by favourable currency movements.

As previously advised, second half operating expenses will reflect catch-up up projects deferred during COVID-19 and increased re-investment in the business.

SEEK Limited (ASX: SEK)

The SEEK share price went up around 2% after giving an update.

The employment business said that it announced that all conditions had been completed for the Zhaopin transaction. This will reduce the Zhaopin stake from 61.1% to 23.5%. Around $500 million of the total anticipated gross proceeds (almost $700 million) were received in April 2021.

SEEK said that it intends to pay a dividend of 20 cents per share. It’s now operating well within its pre-existing borrower group covenant limits including payment of the dividend.

Based on the transaction value, the ASX 200 share’s 23.5% ownership of Zhaopin is valued at $515 million.

SEEK has changed its FY21 guidance, excluding significant items. Revenue will be in the order of almost $1.6 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) will be in the order of $480 million. Seek’s share of net profit losses for its early stage ventures (ESV) will be in the order of $50 million.

The reported net profit is expected to be in the order of $140 million.

More reading

• Struggling ASX gold shares just got upgraded by a top broker
• Will May make eight straight months of gains for the ASX 200?
• 3 things you need to know about the RBA’s interest rate decision today
• Why AnteoTech, Domain, Flight Centre, & Nick Scali are sinking today
• Why De Grey, Infomedia, Northern Star, & SEEK shares are storming higher

Motley Fool contributor Tristan Harrison 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 Australia has recommended Flight Centre Travel Group Limited and SEEK 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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Because of a number of favourable tailwinds including ageing populations, better technologies and treatments, and increased chronic disease burden, demand for healthcare services is expected to increase strongly over the next few decades.

As a result of this, the healthcare sector has been tipped as an area of the market to consider for long term investments.

But which healthcare ASX shares should you buy? Two that are highly rated are listed below:

Cochlear Limited (ASX: COH)

The first ASX healthcare share to look at is Cochlear. It is a global leader in the development, manufacture, and distribution of cochlear implantable devices for the hearing impaired.

After being hit hard by the pandemic, Cochlear bounced back incredibly strongly during the first half of FY 2021. In fact, for the six months ended 31 December, Cochlear recorded an underlying net profit of $125.3 million.

This was down just 4% in constant currency from its record first half profit a year earlier. It is worth remembering that the prior corresponding period was before COVID-19, which demonstrates just how quickly it has rebounded.

Positively, due to its strong market position and the industry’s high barriers to entry, Cochlear looks well-placed for growth over the long term. Especially given how hearing loss is typically a part of getting older and the number of over 65s is expected explode over the coming decades.

Macquarie is positive on the company. Its analysts currently have an outperform rating and $245.00 price target on Cochlear’s shares.

Pro Medicus Limited (ASX: PME)

Another ASX healthcare share to look at is Pro Medicus. It is a healthcare technology company that provides healthcare organisations with radiology information systems, picture archiving and communication systems, and advanced visualisation solutions.

Pro Medicus has been growing strongly over the last few years. This has been driven by its industry-leading technology and the structural shift away from legacy systems.

Positively, the company has continued this positive form in FY 2021. For example, in February the company reported a 7.8% increase in revenue to $31.6 million and a 25.9% jump in underlying profit before tax to $18.76 million.

The good news is that more of the same is expected in the second half. Particularly given how Pro Medicus has won a number of lucrative contracts with major healthcare institutions since the turn of the year.

Looking ahead, the company still has a large pipeline of sales opportunities that could be converted in the near future and drive further growth.

Goldman Sachs is a fan of Pro Medicus. The broker currently has a buy rating and $53.80 price target on its shares.

More reading

• Top ASX shares to buy in May 2021
• 2 highly rated ASX growth shares for May
• Fundie reveals why the Pro Medicus (ASX:PME) share price is still a buy
• The ASX healthcare shares Goldman Sachs rates as a buy
• Why this ASX share bull market could run for longer

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 recommends Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. and Pro Medicus 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 a growth investor, then you’re in luck. The local share market is home to a number of top companies that have the potential to grow strongly in the future.

Three top ASX growth shares that have been tipped as buys are listed below. Here’s why they are highly rated:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX growth share to look at is this gaming technology company. While Aristocrat’s performance has been impacted greatly by the closure of casinos, it is beginning to rebound now the crisis is easing and casinos are reopening. Looking ahead, it looks well-placed for growth over the long term thanks to its industry-leading poker machines and its growing digital business. The latter has been a big winner from the pandemic and is generating material recurring revenues thanks to increased mobile gaming.

Citi is positive on Aristocrat Leisure. Its analysts currently have a buy rating and $40.60 price target on its shares.

NEXTDC Ltd (ASX: NXT)

NEXTDC is a leading data centre operator which has been benefiting greatly from the increasing amount of data being generated by consumers and businesses. This has certainly been the case during the pandemic thanks to the accelerating shift to the cloud. This led to a surge in demand for data centre capacity, underpinning strong revenue and operating earnings growth. Another positive is the significant amount of its future capacity already contracted, which will be supportive of growth over the next few years. This could be boosted further by its potential expansion into Singapore and Tokyo.

UBS is a fan of the company and has a buy rating and $15.40 price target on its shares.

Zip Co Ltd (ASX: Z1P)

A final growth share to look at is this buy now pay later provider. It has been growing at a rapid rate in recent years thanks to the growing popularity of the payment method and its international expansion. The latter has been a huge success thanks to its US-based QuadPay business. Pleasingly, QuadPay has a $5 trillion market opportunity, which gives it a significant runway for growth over the next decade. Zip has also recently launched in the UK market and has its eyes on further expansions in the near future.

Citi is also positive on Zip. Last month the broker upgraded its shares to a buy rating with an $11.30 price target.

More reading

• a2 Milk and Zip were among the most traded ASX shares last week
• These are the 10 most shorted shares on the ASX
• Why is the Zip (ASX:Z1P) share price falling on hard times?
• ASX 200 Weekly Wrap: Shares have average week but a great month
• Aristocrat (ASX:ALL) share price up 7% this month, tipped to go higher

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 ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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There are a number of companies in the tech sector that are expected to grow at a strong rate in the future.

Two that you might want to get better acquainted with are listed below. Here’s what you need to know about them:

Life360 Inc (ASX: 360)

The first ASX tech share to look at is San Francisco-based app maker Life360.

It provides families with a market leading app which includes features such as real-time location sharing and notifications and Crash Detection and Roadside Assistance. These features are clearly resonating well with families, with Life360 recently revealing 28 million monthly active users.

Pleasingly, the company has just announced the acquisition of Jiobit for US$37 million. The addition of the provider of wearable location devices is very supportive of its growth strategy and opens up cross-selling opportunities.

Credit Suisse is a fan of the company and believes it is well-placed for growth. The broker currently has an outperform rating and $8.30 price target on its shares. This compares to the latest Life360 share price of $5.75.

Nearmap Ltd (ASX: NEA)

Another ASX tech share to look at is Nearmap. It is an aerial imagery technology and location data company.

Its aerial imagery and data insights shift location analysis out of the field and into the office. Management notes that this gives businesses the tools to scale quickly and bring their most important initiatives to life.

Nearmap has been growing at a strong rate over the last few years thanks to increasing demand for its services in the ANZ and North American markets. Positively, this has continued in FY 2021, with the company upgrading its guidance today.

Looking ahead, management appears confident that it is well-positioned for growth thanks to its recent $90 million capital raising and new growth initiatives. It is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.

Citi is bullish on the company. It currently has a buy rating and $3.10 price target on its shares. This compares to the latest Nearmap share price of $2.06.

More reading

• Nearmap (ASX:NEA) share price on watch after upgrading guidance
• Brokers name 3 ASX shares to buy now
• Life360 (ASX:360) share price climbs on ‘accelerating growth’
• Why Bingo, Life360, Tabcorp, & Vulcan shares are storming higher
• Life360 (ASX:360) share price jumps 9% to record high on acquisition news

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 Nearmap Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Life360, Inc. The Motley Fool Australia has recommended Nearmap 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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National Australian Bank Ltd (ASX: NAB) shares were fairly flat in trading today, as news circled of the bank providing the world’s largest coal export terminal with a “sustainability-linked” loan.

The NAB share price spent most of the day bouncing around in the red before closing just 0.07% higher at $27.25.

Let’s take a closer look at the Port of Newcastle’s new $515 million loan and the conditions NAB has imposed upon it.

Port of Newcastle’s loan   

The loan, termed “landmark” by NAB, is marked with incentives for the port if it meets environmental and social metrics imposed by the bank.

The Port of Newcastle will receive a margin reduction on the loan if it hits 5 positive sustainability, environmental and social markers. These are:

• Keeping its scope 1 and 2 greenhouse gas emissions below the 2025 trajectory level based on the port’s Well Below 2-degree Scenario. This will see the port achieving net-zero energy by 2030 and carbon neutrality by 2035.
• Screening all of its suppliers for modern slavery risks. The port must also demonstrate engagement with operators where medium or high risks are identified.
• Establishing an Aboriginal and Torres Strait Islander student internship program with The University of Newcastle.
• Achieving accreditation of a number of mental health first aiders in each of its departments.
• Finally, it must demonstrate progression under the New South Wales Government’s Sustainability Advantage Recognition Scheme.

Noticeably, the loan makes no judgement on the port’s scope 3 emissions which would take into account the greenhouse gasses produced by the burning of all coal that passes through the port. 

NAB states it is the first sustainability-linked financing of an Australian seaport and the first such loan to include a modern slavery assessment addressing a borrower’s suppliers.

ABC News reported the Australia and New Zealand Banking Group Ltd (ASX: ANZ) withdrew its funding for the Port of Newcastle last year, claiming ANZ believed the port would become a financial liability as the world moves away from fossil fuels.

The NAB’s loan is part of a $666 million refinancing facility for Port of Newcastle, funded by a syndicate of lenders. The funding includes up to $50 million in green lending – funding green building projects and diversifying the port’s revenue base.

The Port of Newcastle is the largest port on Australia’s east coast, employing around 9000 people.

Commentary from management

NAB Group’s executive of corporate and institutional banking David Gall said the bank was helping businesses adapt and improve their sustainability:

This sustainability-linked loan is an important step for the path Port of Newcastle is taking to be an even safer and more environmentally and socially responsible business.

Port of Newcastle’s CEO Craig Carmody said the loan would allow the port to align with long-term environmentally and socially responsible projects:

NAB is helping Port of Newcastle through financial innovation. This will in turn help create a more diverse and sustainable port in the future, supporting opportunities for jobs and economic growth in the Hunter region.

Our thinking must be in decades, not months or years. That means building new economic opportunities for Newcastle. What is good for the port is also good for the economy.

NAB share price snapshot 

While the NAB share price responded mildly to today’s news, the bank is sitting close to a 52-week high and is essentially at the same level it was back in February 2020, just before the COVID-19 pandemic struck.  

The NAB share price 18% higher than it was at the start of 2021. It’s also gained 65% since this time last year when Australia was battling the coronavirus-induced recession.

The bank has a market capitalisation of around $89 billion, with approximately 3.3 billion shares outstanding.

More reading

• Why the NAB (ASX:NAB) share price is at a 52-week high
• ASX 200 Weekly Wrap: Shares have average week but a great month
• What to expect from the NAB (ASX:NAB) half year result
• Why ASX bank shares may be facing a big sell-off in the next few weeks
• ASX bank shares best placed to ride the $1bn+ provisioning profit boost this reporting season

Motley Fool contributor Brooke Cooper 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 Nearmap Ltd (ASX: NEA) share price will be one to watch closely on Wednesday morning.

This follows the release of a positive announcement by the aerial imagery technology and location data company after the market close today.

What did Nearmap announce?

This afternoon Nearmap revealed that its strong performance in the first half has continued into the second half of FY 2021. As a result, the company is increasing its full year guidance for annual contract value (ACV).

According to the release, the company now expects to deliver ACV of $128 million to $132 million in FY 2021. This compares to its previous guidance of $120 million to $128 million. It will also be a 20% to 24% increase on FY 2020’s ACV of $106.4 million.

Management advised that it has seen momentum continue with growth across its core industry verticals from both new and existing customers.

It believes this further reinforces the attractiveness of the company’s subscription business model, the benefits of its technology leadership position, and the differentiated customer offering which combine to give Nearmap a significant competitive advantage.

In addition, the company revealed that it continues to invest the proceeds from the FY 2021 capital raise into key growth initiatives. This includes the development of HyperCamera3, which remains on track to be rolled out in FY 2022.

Positively, with each of the investment initiatives on track and with continued momentum in ACV growth, management now expects its net cash outflow to be less than $10 million this financial year.

On track to deliver growth targets

Nearmap’s Chief Executive Officer and Managing Director, Dr Rob Newman, was pleased with the company’s performance. He also believes Nearmap will deliver on its growth targets.

Dr Newman said: “With our refined go-to-market strategy still at a relatively early stage, I am very encouraged by the strong growth we are seeing across our ACV portfolio.”

“This performance validates our strategy to focus on our core growth verticals of insurance, government and roofing, with the adoption of premium content types particularly strong from these verticals, driving returns from the investments we made into new and expanded content.”

“The early success of our refined go-to-market strategy – which has delivered strong growth in FY21 – and the continued deployment of investments into this strategy gives us confidence that we remain on track to deliver on our 20- 40% ACV growth targets from FY22 onwards.”

Nearmap share price performance

The Nearmap share price is down 9% since the start of the year.

Shareholders will no doubt be hoping this update gets it heading in the right direction again.

More reading

• What’s happening with the Pointerra (ASX:3DP) share price?
• 2 exciting mid cap ASX shares with long runways for growth
• 3 top ASX shares to buy this week
• These oversold ASX tech shares are ripe for the picking
• Why Zip (ASX:Z1P) and this ASX growth share could be buys

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 Nearmap Ltd. The Motley Fool Australia has recommended Nearmap 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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ASX gold shares have been lagging the market and their quarterly updates have been an overall disappointment – but now’s precisely the time to be buying these shares.

That’s the view of JPMorgan even though the broker found the latest quarterly production reports “underwhelming”.

The broker isn’t the only one that’s been unimpressed. The market has largely cast aside our major ASX gold producers.

ASX gold shares have lost their shine

The Newcrest Mining Ltd (ASX: NCM) share price gained only 6% over the past year, while the Evolution Mining Ltd (ASX: EVN) share price and Northern Star Resources Ltd (ASX: NST) share price fell 3% and 11%, respectively.

In contrast, the  S&P/ASX 200 Index (Index:^AXJO) surged 34% over the same period and is closing in on its record high.

You can blame the falling gold price for the underperformance of the sector. Some of the ASX gold miners were even a little creative in their quarterlies to help paint a better picture, even though that didn’t seem to help much.

Lacklustre quarterly updates

“There were few downgrades to FY21 guidance, but risk remains to the downside, with some hoping for up to 35% of annual production in the final quarter to get them to the low end of guidance,” said JPMorgan

“Costs are under even more pressure, even after shifting as much capex as possible out of AISC and into ‘growth’ capex.”

The broker believes a lot of the cost pressures were self-inflicted due to lower production. Mining a scale game and the less your produce, the worst your margins.

The outlook on the cost front isn’t getting better either. You only need to look at the skills shortage in Western Australia to see that.

Turnaround for ASX gold shares in sight

But there is light at the end of the tunnel for the ASX gold sector. JPMorgan believes gold’s retreat from its record of over US$2,000 an ounce to around US$1,700 an ounce could be on a turning point.

“Gold prices appear to have bottomed in the short term, and we have upgraded our near-term prices by $50, to $1,750/oz, thereby increasing earnings by 1-7%,” said JPMorgan.

“We believe the sector continues to present good value on an NPV [net present value] basis.”

That’s encouraging given that JPMorgan’s forecasts are below consensus. What this shows is that there could be too much bad news baked into embattled ASX gold shares.

ASX gold shares to buy today

JPMorgan upgraded its recommendation on the Regis Resources Limited (ASX: RRL) share price to “overweight” from “neutral” with a 12-month price target of $3.20 a share.

Its key picks in the sector include the Newcrest share price, Northern Star share price, SSR Mining Inc CDI (ASX: SSR) share price and Gold Road Resources Ltd (ASX: GOR) share price.

More reading

• Will May make eight straight months of gains for the ASX 200?
• 3 things you need to know about the RBA’s interest rate decision today
• Brokers point to these ASX 200 shares to beat the market in May
• Why De Grey, Infomedia, Northern Star, & SEEK shares are storming higher
• What’s happening with the Dexus (ASX:DXS) share price today?

Motley Fool contributor Brendon Lau owns shares of Evolution Mining Limited, Newcrest Mining Limited, and Regis Resources Limited. 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 great investor Warren Buffett — chair and CEO of Berkshire Hathaway Inc. (NYSE: BRK.A)(NYSE: BRK.B) — has been in the news a lot this week. That’s because Buffett hosted Berkshire’s annual shareholder meeting over the weekend, a much-loved event in the investing community. So much so that it’s been dubbed the ‘Woodstock for capitalists’.

Now, most of us would love to invest the way Warren Buffett does. According to Berkshire’s latest annual letter, Buffett has managed to steer Berkshire to average gains of 20% per annum since 1965 after all.

Unfortunately, Buffett is an extraordinarily gifted investor, and many have tried and failed to follow in his footsteps. Fortunately, though, there is an ASX exchange-traded fund (ETF) that employs a ‘Buffett method’ in picking shares. And it’s pretty good at it too.

One of Buffett’s favourite attributes that a company can have is what he calls a ‘moat’, or an intrinsic competitive advantage. A moat is a protective barrier to entry that a company can create around itself. This can be in the form of being the lowest-cost producer of a good or service. Or else a networking effect that lures more customers in, or just a strong brand name. Or a combination of the above and more.

Buffett loves a MOAT

Buffett talked about some of Berkshire’s largest companies over the weekend, including Apple Inc (NASDAQ: AAPL) and Coca-Cola Co (NYSE: KO). Both of these companies have incredible dominance in their respective industries. No one can deny the power of Apple’s brand, and the ‘ecosystem’ that Apple products collectively weave together around their owners. Coca-Cola’s own brand is so strong that it can charge more than any of its competitors, whilst still being the highest selling cola in the world.

That’s probably why the VanEck Vectors Morningstar Wide Moat ETF AUD (ASX: MOAT) holds both Berkshire Hathaway and Coca Cola shares at the present time. That’s alongside 47 other ‘wide-moat’ companies that display similar characteristics. This reflects an index put together by Morningstar. This index comprises US companies that are believed to display characteristics of a wide moat. Some other examples include Amazon.com, Inc. (NASDAQ: AMZN), salesforce.com, Inc. (NYSE: CRM) and McDonald’s Corp (NYSE: MCD).

That’s all fine to say that this ETF tries to invest the way Buffett does. But what do its hard numbers tell us? Well, that it is doing a pretty good job. Over the past 5 years, the MOAT ETF has returned an average of 19.34% per annum. Since its ASX listing in 2015, it’s returned an average of 20.25% per annum. Incidentally, that’s a higher rate of return than what Berkshire investors themselves have enjoyed over the same periods.

MAOT charges an annual fee of 0.49% per annum.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Coca-Cola, McDonalds, and VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon, Apple, Berkshire Hathaway (B shares), and Salesforce.com and recommends the following options: long January 2022 $1920 calls on Amazon, short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2023 $130 calls on Apple, short June 2021 $240 calls on Berkshire Hathaway (B shares), short January 2022 $1940 calls on Amazon, long March 2023 $120 calls on Apple, and long January 2023 $200 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Amazon, Apple, Berkshire Hathaway (B shares), 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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