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:

CSL Limited (ASX: CSL)

According to a note out of Citi, its analysts have upgraded this biotech giant’s shares to a buy rating with a $310.00 price target. The broker made the move largely on valuation grounds after recent weakness in the CSL share price. Citi expects the COVID-19 vaccine rollout to support plasma collections in the coming months. In addition to this, it remains confident that demand for its core plasma-based products will be robust in the medium term. The CSL share price ended the week at $253.26.

Iress Ltd (ASX: IRE)

A note out of Credit Suisse reveals that its analysts have upgraded this financial technology company’s shares to an outperform rating with an $11.00 price target. According to the note, the broker believes that the Iress share price has dropped to a very attractive level. Especially given its defensive qualities and growth opportunities. In addition to this, it notes that its shares offer a generous dividend yield in this low interest rate environment. The Iress share price was fetching $9.53 at Friday’s close.

Qantas Airways Limited (ASX: QAN)

Analysts at Ord Minnett have upgraded this airline operator’s shares to a buy rating with a $6.00 price target. According to the note, the broker believes Qantas is well-placed to come out of the pandemic in a stronger position than when it entered it. And while dividends may be a couple of years away, it feels it is well worth sticking with the company. This is thanks to its balance sheet, cost cutting, and stronger market position. The Qantas share price was trading at $5.30 at the end of the week.

More reading

• The JobKeeper payment is ending. So what will happen next?
• 10 of the best ASX shares to buy in March
• Qantas (ASX:QAN) successfully trials COVID vaccine app in preparation of return to international travel
• Brokers name 3 ASX shares to buy right now
• What this broker thinks about ASX travel shares after government’s stimulus package

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 recommended IRESS 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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With low interest rates likely to be here to stay for some time to come, it certainly is a hard 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:

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 a portfolio of 20 centres with a diverse tenant base of 593 quality tenancies. From these tenancies, national retailers such as ALDI, Bunnings, and Officeworks represent ~87% of its total portfolio.

This, and their exposure to every day needs, has allowed Aventus to perform strongly during the pandemic. For example, during the first half of FY 2021 it reported a modest increase in revenue and a 43% lift in net profit to $103.4 million. The latter includes a $25.7 million increase in the net fair value of its property.

Goldman Sachs is a fan of the company. It currently has a buy rating and $3.04 price target on its shares. As well as liking the company due to its exposure to the household goods sector, it notes that its bulky goods homewares tenant base is a natural resistance to online sales penetration.

The broker estimates that it will pay a ~16.6 cents per share distribution this year. Based on the current Aventus share price, this represents a 5.9% yield.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share to consider buying is Telstra. This telco giant’s outlook is improving greatly thanks to its T22 strategy, the arrival of 5G internet, and its plan to split into three separate businesses. The latter is expected to allow Telstra to take advantage of potential monetisation opportunities, unlocking value for shareholders.

Goldman Sachs is a fan of Telstra as well. It recently reiterated its buy rating and $4.00 price target on the company’s.

It also continues to forecast a 16 cents per share fully franked dividend for the foreseeable future. Based on the current Telstra share price, this will mean a generous 5.2% dividend yield.

More reading

• 2 ASX dividend shares with 5% fully franked yields
• 3 blue chip ASX shares with dividend yields over 5% today
• This ASX dividend share has a very generous 5.9% yield
• Telstra (ASX:TLS) share price and others caught in Greensill insolvency
• Is the Telstra (ASX:TLS) share price a top buy right now?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. 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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The JobKeeper payment is coming to a close. Everyone (including the ATO) is talking about what it will mean when the scheme officially stops.

After the federal government tried selling its half-price flight program to the Australian public yesterday, reality seems to have sunk in that the scheme is officially coming to an end. JobKeeper payments will conclude on 28 March 2021.

What does the ATO say about JobKeeper payments ending?

According to ABC News, the Australian Tax Office (ATO) believes it is owed hundreds of millions of dollars from companies who hustled the JobKeeper subsidy.

While some companies such as Domino’s Pizza Enterprises Ltd (ASX: DMP), Nick Scali Limited (ASX: NCK) and Santos Ltd (ASX: STO) have paid back JobKeeper funds that were not required, many others have not.

20 Australian companies promised to repay approximately $144 million to the ATO, however, only $20 million has been paid back so far.

According to ATO second commissioner Jeremy Hirschhorn, the misused JobKeeper payments were issued to companies based on revenue, opposed to whether the company is profitable or not.

Some recipients used JobKeeper payments to pay executive bonuses and raise dividends, with experts stating they believe this is the product of a poorly designed policy. While the ATO isn’t likely to admit an oversight, it’s clear that the program has run its course and it’s time for the next act.

Will the tourism and aviation support package save us?

While some businesses like Qantas Airways Limited (ASX: QAN) and Flight Centre Travel Group Ltd (ASX: FLT) will benefit from the federal government’s follow up to JobKeeper, the new scheme isn’t pleasing everyone.

The Australian Financial Review reports that duty free retailers are not happy about being left out of the new funding package. Considering the current crux on international travel, being denied a dime of the $1.2 billion support package doesn’t sit well with some people in the industry.

Richard Goodman, who is the Managing Director of Heinemann Australia, said that sales are down 98%. He continued that without ongoing government support, such as the JobKeeper payment, cost decisions that may result in job cuts will have to be made.

The CEO of The Australian Retailers Association, Paul Zahra, commented:

“It’s good to see focused support for the tourism and aviation industry locally and the flow-on effects that will have for some retailers, but this [package] overlooks support for businesses severely impacted by international border closures.”

Foolish Takeaway

As a replacement to previous JobKeeper payments, the government is turning to the ravaged tourism and travel industries for its next approach.

Rating agencies are also paying attention to how the country is addressing its financial commitments as the coronavirus continues to leave its mark.

The JobKeeper payment is going to end, the next support package will take effect. Depending on how that goes, we’ll see where we land next.

More reading

• Top brokers name 3 ASX shares to sell next week
• These were the worst performing ASX 200 shares last week
• Qantas (ASX:QAN) successfully trials COVID vaccine app in preparation of return to international travel
• Brokers name 3 ASX shares to buy right now
• What this broker thinks about ASX travel shares after government’s stimulus package

Motley Fool contributor Gretchen Kennedy owns shares of Flight Centre Travel Group Limited and Qantas Airways Limited. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited and Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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I’d bet everyone who has either invested in ASX shares, or wants to, has one goal in mind: making money. Or, to put it in a more palatable way, building wealth.

Everyone knows that it’s possible to build wealth using ASX shares and the share market (as well as lose it). But that’s where the commonalities end.

Some ‘investors’ like to bet big on penny stocks, trying to find that lottery ticket that will deliver a 1,000% return in a week.

Others like to invest only in dividend shares, enjoying the slowly-rising stream of passive income these can generate.

Some investors like to find fast-growing growth companies to hitch their wagon to. Others enjoy having a mix of growth and dividend shares.

There’s no right answer when it comes to the question of ‘how should I invest?’. Warren Buffett has built his wealth by steadily assembling a portfolio of other successful businesses under his own umbrella company Berkshire Hathaway Inc (NYSE: BRK.A) (NYSE: BRK.B).

Berkshire is famous for investing in mature, quality companies like Coca-Cola Co (NYSE: KO) by buying and holding.

In contrast, Masayoshi Son, of Japan’s SoftBank, has built up his company by investing in fast-growing tech businesses. Businesses like Uber Technologies Inc (NYSE: UBER) and Doordash Inc (NASDAQ: DASH). Different paths, same result.

Successful investing has many doors

All successful investors have something in common: they have a goal and a method that works for them. And they stick to it.

This is something all investors might want to consider adopting.

There are some investors out there who just stick with dividend-paying shares. They know the companies that fund dividends, and what it takes for these companies to grow their dividends over time. It might make sense to them in a way that investing in other kinds of companies might not.

By contrast, other investors like finding companies that are in the early stages of their development but can go on to prove big winners. To these investors, dividend companies might seem boring.

Growth investors pride themselves on being able to sniff out a developing business that has the secret ingredients necessary for it to rapidly grow from a small company to a large one.

Finding the strategy that resonates with you, your personality, and your investing style is of utmost importance. Warren Buffett probably wouldn’t be any good at start-up tech investing, and Mr Son likely wouldn’t be adept at ‘Buffett-style’ buying and holding’.

Part of these investors’ genius is that they fully understand their investment strategies and they stick to them.

That’s something we can all aspire to do when attempting to become successful investors.

More reading

• Here’s why billionaire Warren Buffett’s net worth is surging
• Warren Buffett’s share portfolio revealed!
• Here’s why Warren Buffett prefers buybacks to dividends
• Warren Buffett just told us to stay away from this asset class
• 3 key takeaways from Warren Buffett’s latest letter to shareholders

Sebastian Bowen owns shares of Coca-Cola. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Uber Technologies and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Berkshire Hathaway (B shares). 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:

Flight Centre Travel Group Ltd (ASX: FLT)

According to a note out of Citi, its analysts have retained their sell rating and $16.90 price target on this travel agent’s shares. While the broker believes that Flight Centre will benefit from the recently announced government stimulus program in the tourism sector, it isn’t enough for a change of rating. The broker suspects that some of the revenue generated by the stimulus will be offset by the end of JobKeeper. Looking ahead, the broker expects Flight Centre to make a loss this year and next year. The Flight Centre share price ended the week at $18.65.

Xero Limited (ASX: XRO)

A note out of UBS reveals that its analysts have retained their sell rating but lifted their price target on this business and accounting platform provider’s shares to $79.50. According to the bote, the broker sees positives in its acquisition of workforce management platform Planday. It also notes that even after the deal, Xero will still have over NZ$1 billion of liquidity to consider other acquisitions. However, due to its current valuation, UBS isn’t in a rush to change its rating. The Xero share price was trading at $115.01 on Friday.

Zip Co Ltd (ASX: Z1P)

Another note out of UBS reveals that its analysts have downgraded this buy now pay later provider’s shares to a sell rating with a $6.40 price target. According to the note, the broker was pleased with Zip’s first half performance and expects more of the same in the short term. Though, it does note that there are execution risks, particularly in the UK. In addition to this, the broker has concerns about rising bond yields. It notes that these could weigh on its valuation and also its funding. The Zip share price ended the week at $8.59.

More reading

• 10 of the best ASX shares to buy in March
• These were the worst performing ASX 200 shares last week
• What this broker thinks about ASX travel shares after government’s stimulus package
• Why Flight Centre, Northern Star, Southern Cross Media, & Treasury Wine are sinking
• ASX 200 up 0.95%: Afterpay rises, Westpac’s APRA update, Qantas upgraded

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

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There are a large number of quality shares on the ASX that could deliver strong returns over the next 12 months and beyond.

Ten that are highly rated are listed below. Here’s why investors might want to consider them this month:

Adore Beauty Group Limited (ASX: ABY)

Adore Beauty is Australia’s leading online beauty retailer. Like many ecommerce businesses, it has been growing very strongly during the pandemic. For example, the company recently reported half year revenue of $96.2 million and EBITDA of $5.2 million. This was up 85% and 188%, respectively, over the prior corresponding period. This result went down well with analysts at UBS. In response to its release, the broker put a buy rating and $6.20 price target on its shares. It appears confident its strong market position and growing active customer numbers will support more strong growth over the 2020s.

Altium Limited (ASX: ALU)

Altium is an electronic design software provider. It is best-known for its Altium Designer and Altium 365 platforms. These platforms are regarded as the best in the industry and are used by many of the world’s largest companies such as BAE Systems, Microsoft, and Tesla. Altium looks well-placed for growth over the next decade thanks to the internet of things and artificial intelligence booms. These are driving strong demand for electronic design software. One broker that likes what it sees here is UBS. Last month it upgraded Altium’s shares to a buy rating with a $34.00 price target.

Appen Ltd (ASX: APX)

Appen is a leading developer of high-quality, human annotated datasets for machine learning and artificial intelligence (AI). Though its team of one million+ contractors, Appen prepares or creates the data for the machine learning models of some of the largest tech companies. These includes Amazon, Facebook, and Microsoft. Late last month Ord Minnett upgraded its shares to a buy rating with a $24.75 price target.

CSL Limited (ASX: CSL)

CSL is one of the world’s leading biotechnology companies, comprising the CSL Behring and Seqirus businesses. Both are leaders in their respective fields – plasma therapies and vaccines. While plasma collection headwinds have been weighing on collections and investor sentiment this year, CSL appears well-placed for growth once conditions ease. Particularly given its lucrative R&D pipeline. Last week Citi upgraded its shares to a buy rating with a $310 price target.

Kogan.com Ltd (ASX: KGN)

Kogan is one of Australia’s leading ecommerce companies. Like Adore Beauty, it has been growing very strongly thanks to the accelerating shift to online shopping caused by the pandemic. For example, during the first half of FY 2021, Kogan reported a 97.4% increase in gross sales to $638.2 million and a 250.2% lift in adjusted net profit after tax to $36.5 million. Analysts at Credit Suisse were impressed. The broker has put an outperform rating and $20.85 price target on its shares.

NEXTDC Ltd (ASX: NXT)

NEXTDC is Australia’s leading data centre operator with a total of nine centres located across Australia. It has been experiencing very strong demand for capacity in its data centres thanks to the shift to the cloud. This led to NEXTDC reporting a 29% increase in EBITDA to $65.7 million for the first half of FY 2021. Pleasingly, more of the same is expected in the second half. In addition to this, the company is looking into expanding into Asia. This could provide it with a very long runway for growth. UBS is positive on the company. It has a buy rating and $15.40 price target on its shares.

Pushpay Holdings Group Ltd (ASX: PPH)

Pushpay is leading donor management and community engagement platform provider for the faith sector. It has also been a strong performer during the pandemic. This has been driven partly by the accelerating digitisation of the church. In fact, demand has been so strong, Pushpay is expecting to achieve full year operating earnings of US$56 million and US$60 million. This will be up 123% to 139% year on year. Goldman Sachs is a fan of the company. It has a conviction buy rating and $2.59 price target on its shares.

REA Group Limited (ASX: REA)

REA Group is the dominant player in real estate listings in the Australian market. It looks well-placed for growth in the coming years thanks to the improving housing market, new revenue streams, cost cutting, price increases, and its international operations. Morgan Stanley is very positive on the company’s prospects. As a result, it has an overweight rating and lofty $175.00 price target on its shares.

ResMed Inc. (ASX: RMD)

ResMed is a sleep treatment-focused medical device company. Thanks to its industry-leading products, growing software business, and the increasing awareness of sleep disorders, it has been growing at a strong rate for a good number of years. Pleasingly, it still has a significant market opportunity to grow into. Management estimates that there are ~1 billion people suffering from sleep apnoea worldwide, with only ~20% of these sufferers currently diagnosed. It also looks well-placed to benefit from the shift to home healthcare. Morgans is a fan of ResMed. It recently retained its add rating and put a price target of $30.09 on its shares.

Xero Limited (ASX: XRO)

Xero is a provider of a cloud-based business and accounting solution to small and medium sized businesses. It has been growing strongly over the last few years and looks well-positioned to continue the trend in the years to come. This is thanks to its international expansion, acquisitions, the transition to the cloud, and its burgeoning app ecosystem. Goldman Sachs is very positive on the company. It has a buy rating and $157.00 price target on its shares. The broker believes Xero is capable of delivering strong revenue growth over multiple decades.

More reading

• 2 fantastic ASX shares with long runways for growth
• Will the ASX share e-commerce boom last?
• These were the best performing ASX 200 shares last week
• Why this ASX 200 tech share is leading the pack this week
• Brokers name 3 ASX shares to buy right now

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 Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd, CSL Ltd., Kogan.com ltd, and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of Xero. The Motley Fool Australia has recommended Kogan.com ltd, PUSHPAY FPO NZX, REA Group Limited, and ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Fortunately, in this low interest rate environment, there are countless dividend shares for investors to choose from on the Australian share market.

But with so many to choose from, it can be hard to decide which ones to buy.

To narrow things down, I have picked out three ASX dividend shares that brokers think investors should buy:

Accent Group Ltd (ASX: AX1)

According to a note out of Bell Potter, its analysts have a buy rating and $2.65 price target on this footwear retailer’s shares. The broker was impressed with Accent’s performance in the first half and appears confident more of the same is coming in the second half and beyond. In respect to dividends, Bell Potter is forecasting an 11.9 cents per share dividend in FY 2021 and then a 12.2 cents per share dividend in FY 2022. Based on the latest Accent share price of $2.34, this will mean fully franked 5.1% and 5.2% yields, respectively, over the next couple of years.

BHP Group Ltd (ASX: BHP)

A note out of Macquarie reveals that its analysts have an outperform rating and $55.00 price target on this mining giant’s shares. According to the note, the broker has upgraded its copper prices for the coming years to reflect an expected increase in demand for the base metal. This has led to Macquarie boosting its earnings and dividend forecasts. The broker has pencilled in fully franked dividends of ~$2.99 per share in FY 2021 and ~$2.74 per share in FY 2022. Based on the current BHP share price of $47.97, this represents generous yields of 6.2% and then 5.7%.

Westpac Banking Corp (ASX: WBC)

Analysts at Citi have a buy rating and $26.00 price target on this banking giant’s shares. According to the note, the broker believes the banking sector could continue to outperform in the near term. This is partly thanks to rising bond yields causing investors to rotate into the sector. In addition to this, it sees value in Westpac’s shares at the current level, particularly given its balance sheet strength. Citi expects Westpac to pay fully franked $1.30 per share dividends in FY 2021 and FY 2022. Based on the latest Westpac share price of $24.45, this will mean an attractive 5.3% yield for investors.

More reading

• ASX 200 climbs, Westpac in the clear, Nine reveals a WIN-ning deal
• Morgans just added this ASX 200 share to its model portfolio
• ASX 200 up 0.95%: Afterpay rises, Westpac’s APRA update, Qantas upgraded
• Westpac (ASX:WBC) share price higher following APRA update
• 2 ASX dividend shares with 5% fully franked yields

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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There are a few ASX shares that many brokers like right now.

Most brokers will have a different opinion about businesses. One broker could say that Commonwealth Bank of Australia (ASX: CBA) shares are a buy whilst another broker could say that the CBA share price is a sell.

However, when multiple brokers think that an ASX share is a buy, then it could be worth paying attention.

These two ASX shares could be worth watching:

Baby Bunting Group Ltd (ASX: BBN)

Baby Bunting shares are liked by at least five brokers right now.

One of the brokers that has the most positive outlook for the Baby Bunting share price is Morgans – it has a price target of $6.39.

The broker likes Baby Bunting’s growth prospects, it thinks that the expansion to New Zealand can improve that growth even further.

In the ASX share’s half-year result, Baby Bunting reported 16.6% growth of total sales to $217.3 million. This was driven by comparable store sales increasing by 15%, or 21.8% when excluding Victorian stores.

Just like other ASX retail shares, Baby Bunting is seeing a large surge of online sales, with growth of 95.9% over the half-year – click and collect sales went up 218%.

But it wasn’t just the sales that went up, Baby Bunting’s gross profit margin improved by 41 basis points to 37.4%. Pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) went up 29.7% to $18.5 million and pro forma net profit after tax (NPAT) grew 43.5% to $10.8 million and statutory NPAT jumped 54.7%.

The CEO of Baby Bunting, Matt Spencer, explained why the company’s demand had been so reliably strong:

Maternity and baby goods are essential products for parents and parents-to-be and are less discretionary in nature. Our strong comparable store and total sales growth performance demonstrates that we continue to deliver on our strategy of growing market share.

Idp Education Ltd (ASX: IEL)

IDP Education is one of the world’s leading businesses when it comes to helping international students and doing England language testing.

The ASX share is liked by at least five brokers, including UBS which has a share price target of $29.80 for IDP Education.

UBS thought the recent FY21 half-year result was good considering the environment that IDP Education is operating in right now with COVID-19 impacts. The broker thinks IDP is a great business. It pointed out that online learning was able to pick up some of the slack.

As the global economy gets back to normal and COVID-19 vaccinations are rolled out, IDP Education could recover and be in a better position.

In the FY21 half-year result, the ASX share said that international English language test volumes had rebounded to pre-pandemic levels. Despite that, English language testing revenue was down 26% to $158.3 million and total company revenue was down 29% to $269.1 million.

EBITDA fell 33% to $68 million, EBIT fell 43% to $47.3 million and net profit dropped 45% to $29.7 million.

The company said it continues to invest in its various segments.

It must be noted that earlier this week, it was announced that Education Australia was going to divest its 40% shareholding of IDP Education. There will be a distribution of 25% to all of its 38 universities, which may or may not decide to sell shares over the coming year or so. The other 15% will be sold to the market and must be done before 11 December 2021.

IDP Education said this restructuring would not impact IDP’s operations or strategy.

More reading

• Will the ASX share e-commerce boom last?
• Here’s why the IDP Education (ASX:IEL) share price sank 6% today
• This unexpected second COVID boom will lift these ASX shares in 2021
• The worst performing ASX 200 shares last week
• 5 ASX shares to buy in a market crash

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Idp Education Pty 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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There are plenty of exchange-traded funds (ETFs) that offer investors the ability to get global diversification.  

However, there are a few that are particularly popular for the low management fees, returns and amount of diversification.

These two in-particular may be able to fit the bill and deliver returns in a passive way that is useful:

Vanguard MSCI Index International Shares ETF (ASX: VGS)

This is Vanguard’s offering for Aussie investors to invest across the developed world’s share market in a single investment.

Inside the ETF’s portfolio are most of the world’s biggest companies. So, investing in this ETF gives exposure to the long-term growth of many international economies outside of Australia, according to Vanguard.

At the end of February 2021, it actually had 1,530 holdings.

Inside the portfolio are many of the world leaders like: Apple, Microsoft, Amazon, Facebook, Tesla, Alphabet, Johnson & Johnson, JPMorgan Chase, Visa, Nestle, NVIDIA, Berkshire Hathaway, Procter & Gamble, Walt Disney, Mastercard, PayPal, Roche, Intel, Netflix, ASML, Adobe, Salesforce, Novartis, Pfizer, Walmart, Cisco Systems, Broadcom, Qualcomm, LVMH, Nike, Costco, McDonald’s, Accenture, Unilever and so on.

In terms of the management fee, it has an annual cost of 0.18%. This is one of the lower-costing ETFs on the ASX.

Vanguard MSCI Index International Shares ETF provides global diversification – around two thirds of the ETF is invested in US businesses. But there are also plenty of countries that make up more than 1% of the portfolio including Japan, the UK, France, Canada, Switzerland, Germany, the Netherlands, Hong Kong and Sweden.

The ETF was listed on the ASX in November 2014. Since inception, the ETF has delivered total net returns of 11.9% per annum.

iShares S&P 500 ETF (ASX: IVV)

This ETF has a much stronger focus on US businesses. The S&P 500 is made up of 500 big businesses that are listed in the US.

It gives exposure to all of the FAANG shares as well as many other industry-leading businesses like Walt Disney, Boeing, Starbucks, Caterpillar, Deere, 3M, Lockheed Martin, S&P Global, Activision Blizzard and Colgate-Palmolive.

iShares S&P 500 ETF also has a very low cost. Its management fees are actually just 0.04% – this is one of the cheapest on the ASX.

The US share market has performed strongly over the last decade, leading to the S&P 500 being one of the best-performing popular indices. Over the last five years the iShares S&P 500 ETF has returned an average of 14.7% per annum and over the last ten years the ETF has returned an average of 16.4% per annum.

There are five sectors in the ETF’s portfolio that have weightings of more than 10%. Those are: communication (11.1% weighting), financials (11.5% weighting), consumer discretionary (12.3% weighting), healthcare (12.8% weighting) and IT (26.7% weighting). Different FAANG shares count as different sectors – Amazon is classified as a consumer discretionary business, whilst Facebook and Alphabet are classified as communication companies.

More reading

• Why ASX income investors should consider this dividend ETF
• 2 ETFs to buy in this tech sell off
• 2 high quality ETFs for ASX investors to buy in March
• This investment is one of Warren Buffett’s favourite share ideas
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When looking for growth shares to buy, I like to focus on companies that have long runways for growth. This is because they have the potential to generate strong long term returns for investors, allowing them to benefit from the power of compounding.

Two ASX growth shares which have been tipped for big things in the future are listed below. Here’s why they are highly rated:

Afterpay Ltd (ASX: APT)

The first ASX growth share to look at is Afterpay. It is a payments company that has grown at an explosive rate over the last few years thanks to the growing popularity of the buy now pay later payment method globally.

Positively, Afterpay is planning to increase its product portfolio very shortly with the launch of transaction accounts through the Afterpay Money app. After which, analysts at Bell Potter don’t expect the company to stop there. They believe that Afterpay could expand into other products such as mortgages in the future.

In addition to this, last week the company’s European acquisition completed. This means that it can now start its expansion onto mainland Europe. If this and its probable expansion into Asia are a success, this could provide it with a very long runway for growth over the next decade.

It’s no wonder then that Bell Potter is so positive on the company and its growth prospects. According to a recent note, the broker has a buy rating and $168.50 price target on Afterpay’s shares.

Pushpay Holdings Group Ltd (ASX: PPH)

Pushpay provides the faith sector with a donor management system, including donor tools, finance tools and a custom community app, and a church management system (ChMS).

Its increasingly popular solutions simplify engagement, payments and administration, enabling users to increase participation and build stronger relationships with their communities.

Last year the company acquired Church Community Builder. It provides a platform that churches use to connect and communicate with their community members, record member service history, track online giving and perform a range of administrative functions.

Since then, the company has developed and launched its all-in-one engagement solution, ChurchStaq. ChurchStaq combines Pushpay’s giving and engagement solution with Church Community Builder’s ChMS functionality. It notes that this results in a holistic software solution that equips customers of all sizes with the technology they need to seamlessly connect across different ministry touch points.

This appears to have put Pushpay in a strong position to dominate its market and deliver on its goal of growing its US market share to 50%, which is worth US$1 billion in revenue per annum at present. This will be a significant lift on FY 2020’s revenue of US$129.8 million.

Analysts at Goldman Sachs are positive on the company. They have a conviction buy rating and $2.59 price target on its shares.

More reading

• Afterpay (ASX:APT) and another ASX growth share to buy right now
• ASX 200 up 0.95%: Afterpay rises, Westpac’s APRA update, Qantas upgraded
• Why Afterpay, Piedmont Lithium, ResApp, & Santos are charging higher
• 5 things to watch on the ASX 200 on Friday
• ASX 200 unmoved, Flight Centre soars, Afterpay keeps falling

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 PUSHPAY FPO NZX. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended PUSHPAY FPO NZX. 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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