There are a few exchange-traded funds (ETFs) that could be worth looking at in February 2021.

An ETF allows investors to buy a large group of shares in a single trade, providing diversification.

Here are two ETFs that could be worth looking at:

Betashares Nasdaq 100 ETF (ASX: NDQ)

This has been one of the highest-performing large ETFs over the past few years.

The idea of this is to give investors exposure to 100 of the largest businesses in the US on the NASDAQ stock exchange.

This ETF is weighted towards technology, with almost half of the portfolio invested in information technology. Another 19% of the ETF is invested in consumer discretionary businesses and 18.6% is invested in communication services. Healthcare makes up 6.5% of the portfolio and industrials is responsible for 1.9%.

Looking at the holdings in the portfolio, there is heavy exposure to many of the biggest US technology businesses: Apple is 12.1% of the portfolio, Microsoft is 9.4% of the portfolio, Amazon is 8.6% of the portfolio, Alphabet is 6.3% of the portfolio, Tesla is 5% of the portfolio and Facebook is 3.3% of the portfolio.

Betashares Nasdaq 100 ETF also has investments in other technology businesses like Nvidia, PayPal, Intel, Netflix, Adobe, Advanced Micro Devices, Intuit and Applied Materials.

The ETF isn’t just about technology companies, it has many non-tech names in the portfolio like PepsiCo, Costco, Starbucks, Intuitive Surgical, Moderna and Monster Beverage.

There are also a couple of Asian giants listed on the NASDAQ, so they are within the ETF’s portfolio too including Baidu and JD.com.

The annual management fee of this ETF is 0.48% per annum.

Looking at the net returns, after fees, of the ETF shows a 13.3% net return over the past six months, a 34.8% net return over the past year, a 27.4% per annum net return over the last three years and a 21.4% net return per annum since inception in May 2015.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

This ETF is about giving investors exposure to a diversified portfolio of attractively priced US companies with sustainable competitive advantages according to Morningstar’s equity research team.

The ‘wide moat’ part of the name comes from the fact that there’s a focus on quality US companies Morningstar believes possess sustainable competitive advantages, or ‘wide economic moats’.

To make it into the VanEck Vectors Morningstar Wide Moat ETF portfolio, those target companies need to be trading at attractive prices relative to Morningstar’s estimate of fair value, after a rigorous equity research process.

The entire portfolio is invested in businesses listed in the US, though the underlying earnings comes from multiple countries.

However, the investments are spread across a number of sectors. Those industries with a weighting of more than 5% include: health care (18.8%), financials (17.6%), information technology (17.5%), industrials (12.2%), consumer staples (10.8%), consumer discretionary (8.5%), communication services (5.5%) and materials (5.2%).

In terms of the actual holdings of VanEck Vectors Morningstar Wide Moat ETF, as of 29 January 2021 it had 49 holdings. The biggest positions were: Corteva, Dominion Energy, Emerson Electric, General Dynamics, Gilead Sciences, Alphabet, Guidewire Software, Intel and John Wiley and Sons.

After the annual management fee cost of 0.49% per annum, the net returns over the past five years have been 16.6% per annum. The index that the ETF tracks has made returns of almost 19% per annum over the last decade.

More reading

• 2 great ASX growth shares to buy
• How to buy US shares from Australia right now
• 2 excellent ETFs for ASX investors in February
• 2 quality ETFs to buy that are making big returns
• Got cash to invest? Here are 3 ASX shares to buy

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended 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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Hawkstone Mining Ltd (ASX: HWK) shares are flying higher today. At the time of writing, the Hawkstone share price has soared 8.3% to 5.2 cents after climbing as high as 5.5 cents in morning trade. 

This compares to a 0.58% gain on the All Ordinaries Index (ASX: XAO). And it’s enough to put the Hawkstone share price up 420% in 2021. In fact, you could have bagged those 420% gains by buying Hawkstone shares as recently as Thursday 14 January. At the time, Hawkstone Mining was trading for just 1 cent per share. 

Why is the Hawkstone Mining share price on the rise?

A big surge in the Hawkstone share price late last week came thanks to positive news from the company’s lithium operations. However, the United States-focused, diversified minerals explorer’s intraday gains today look to be driven by gold.

In an update to the ASX this morning, Hawkstone Mining reported “spectacular grades” from its Devil’s Canyon Gold Project, located in the Carline trend in Nevada, US.

This comes after the company completed additional rock sampling, airborne drone magnetics and structural mapping at the project.

If you’re interested in a few of the technical results, the airborne magnetic survey identified additional geophysical features including “magnetite skarn alteration at lithological contacts and along structures”, and “zones of magnetite destruction possibly related to later mineralising events”.

The company noted the project is just 20 km east of Kinross Gold Corporation (NYSE: KGC)‘s Bald Mountain Mine, which has a resource of 5.9 million ounces of gold. It also reported that the Carlin trend has already produced more than 195 million ounces of gold. Clearly, Hawkstone is hoping to add to that figure.

What did management say?

Addressing the drill results, Hawkstone Managing Director Paul Lloyd said:

These highly encouraging rock sample assay results from our Devil’s Canyon Project further confirm and extend mineralised areas identified from previous work, which when combined with the recently completed aeromagnetic survey data, show several areas for high priority follow-up.

These high-grade results reinforce our business model of exploring for world class gold deposits in the Western United States adjacent to large gold resources or producing gold mines. This is in addition to our Big Sandy Sedimentary Lithium Project in Arizona that remains the company’s primary focus.

The company is continuing with drill targeting work and stated it expects to commence the maiden drilling program at Devil’s Canyon in the 2021 US northern field season.

More reading

• Up 400% in 2021, why the Hawkstone (ASX:HWK) share price is rocketing 28% higher

Motley Fool contributor Bernd Struben 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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It has been an eventful day for the PolyNovo Ltd (ASX: PNV) share price on Monday.

After dropping as much as much as 4% lower in morning trade, the medical device company’s shares are now in the black.

The PolyNovo share price is currently up 1% to $2.67.

Why is the PolyNovo share price pushing higher today?

As well as getting a lift from a rebound by the Australian share market this afternoon, the release of an announcement has given the PolyNovo share price a boost today.

That announcement reveals that the company has continued its expansion in the European market by entering the Italian market. This follows announcements in January which revealed that the company had expanded into Poland and Turkey.

According to the release, PolyNovo is entering the Italian medical device market through the appointment of Medival as its distribution partner in the country.

Medival is focused on providing advanced and innovative medical devices to critical care and surgical specialties. It has an established customer base throughout Italy, accessing approximately 1500 plastic surgeons and have 25 reps on the road and one dedicated product manager.

The company’s NovoSorb BTM rounds out its product portfolio, ensuring it can offer its surgeons a complete range.

The Italian opportunity

Management notes that Italy is the fourth largest medical device market in Europe and worth ~US$10 billion per annum. It also points out that the Italian market is innovative and mature, with a high demand for advanced products.

It appears to believe this makes it a great market for its exciting technology, NovoSorb BTM. It is a dermal scaffold for the regeneration of the skin when lost through extensive surgery or burn and offers improved functional and cosmetic outcomes for patients.

PolyNovo’s Managing Director, Paul Brennan, commented: “We are extremely excited to enter Italy through Medival. The Italian market is very sophisticated, and we think it will value innovative, quality medical technologies like ours. The country is important both geographically and commercially and is a major step forward in our European strategy. We will now be servicing surgeons who are a very influential throughout Europe.”

More reading

• The Polynovo (ASX:PNV) share price is already down 30% in 2021
• These were the worst performing ASX 200 shares in January
• These ASX 200 shares have been smashed in 2021
• ASX 200 rises 0.4%
• ASX 200 up 0.5%: BHP’s update, PolyNovo jumps, Ansell impresses

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 POLYNOVO 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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The WISR Ltd (ASX: WZR) share price is up nearly 3% following release of the company’s first half FY21 results today and is currently trading at 19 cents. The Wisr share price has fallen roughly 30% over the previous 12-month period.

Wisr is a consumer lending and fintech company. In today’s results presentation, the company reiterated its aim to ‘aggressively capture market share’ in the consumer lending market. Wisr intends to ‘reinvent’ consumer lending by offering what it labels as fairer rates, a better loan experience, and financial literacy education.

Here are some highlights from Wisr’s first half FY21 update.

Wisr’s first half highlights

The company reported first half FY21 revenue of $10 million. This is a 354% increase compared to Wisr’s  first half FY20 revenue of $2.2 million.

Overall cash earnings before interest, tax, depreciation and amortisation (EBITDA) for the period was $6.5 million. This was a 6% improvement compared to $6.9 million EBITDA reported for the prior corresponding period.

Operating expenses (Opex) increased by 59% during the first half of FY21. The company advised that this is in line with its management plan. Wisr pointed to the 59% Opex increase in relation to its 354% revenue increase, stating the two compare ‘very favourably’ and are in line with business deliverables.

Wisr reports that it currently has over $390.5 million in loans written to date. The company’s loan originations rose 166% when comparing this half to the prior corresponding period. Loan originations for the period came in at $145.7 million.

Wisr CEO commentary

Commenting on the first half achievements, Wisr CEO Mr. Anthony Nantes said:

We have seen a substantial step-change in operating capability in the last six months. Our H1FY21 results delivered a significant 354% uplift in revenue while reducing overall Cash EBTDA loss by 6%, compared to this same period last financial year.

Investments in talent and technology, planned at the time of our January 2020 capital raise but deferred in response to COVID-19, have now been made. This means that increases in operating cost base will be more incremental in the medium term, resulting in significant operating leverage as revenue continues to grow strongly in-line with the growth of our loan book.

More reading

• Revenue growth pushes Wisr (ASX:WZR) share price higher
• Why the Wisr (ASX:WZR) share price popped 5% this morning

Motley Fool contributor Gretchen Kennedy 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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Oneview Healthcare PLC (ASX: ONE) shares are on fire today, rocketing almost 140% at the time of writing to 10 cents per share. The Oneview share price finished up trading on Friday at just 4.2 cents, but opened this morning at 5 cents before climbing as high as 12 cents soon after open. Even though Oneview shares have since cooled from these highs, a nearly 140% intra-day return is still one for the books.

So what is Oneview Healthcare? And (perhaps more importantly) why are Oneview shares worth 140% more today than they were last week?

One-view to a room

Oneview Healthcare is a healthcare company (shocking, I know) that aims to “build technology that fosters holistic, relationship-centred care”. The company was founded in 2012 and is listed on the ASX, but incorporated in Ireland (hence the ‘plc’). Oneview operates a software-as-a-service (Saas) business model. It sells access to its software platforms, which help healthcare workers deliver better and more tailored bedside care, including to “support COVID-19 response”.

Patients and carers can use the software for performing functions like ordering customised meals, video chatting with family or friends, requesting medical attention, accessing entertainment services, and communicating with others for telehealth appointments and similar consultations.

The company’s software is used across the United States, Australia, the Middle East and Asia in 55 hospitals spanning 18 different cities. Oneview lists New South Wales Health, Queensland Health, and The Sydney Children’s Hospital Network as customers, as well as several large US clients.

Back in August, Oneview reported that the number of beds equipped with its software had grown by 30% year on year in the first half of 2020. It also reported recurring revenue was up 21% to 2.6 million euros. It wasn’t all good news though, total revenues fell 15% year on year, largely due to the impact of the pandemic.

Why are Oneview shares racing higher today?

Today’s stunning moves in the Oneview share price appear to be the result of a company announcement released to the ASX this morning just before market open. In the release, Oneview told investors the company has signed a “distribution agreement” with Samsung SDS America Inc (Samsung SDSA), which is “the enterprise IT solutions provider of Samsung“, to offer a “bundled solution for bedside digital services for patients in the United States”.

This agreement will reportedly allow Samsung SDSA to distribute Oneview’s Cloud Start product to “healthcare-focused enterprise resellers” beginning this month. Cloud Start runs exclusively on Samsung tablets and was reportedly deployed across four hospitals in New York at the “height of the pandemic” last year. Evidently, the company’s technology was well-received.

Oneview CEO James Fitter had this to say on the deal: 

Our move to the cloud accelerates speed to market and opens new possibilities for distribution, making it faster, easier and lower-cost for end-customers to benefit from the digital platform at the bedside. Never has this need been so apparent. Our partnership with Samsung provides a unique opportunity to address new virtual models of care and provide the solution for Samsung SDSA to enhance the value proposition for their reseller network.

Clearly, this agreement has investors pretty excited, judging by today’s eye-popping gains in the Oneview share price.

More reading

• Leading brokers name 3 ASX shares to buy today
• Why these brokers think today’s Eagers Automotive (ASX:APE) share price is a bargain
• Why the K2fly (ASX:K2F) share price is climbing today
• Why the Core Lithium (ASX:CXO) share price is in a trading halt
• Why these ASX silver shares are surging today

Motley Fool contributor Sebastian Bowen 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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With so many shares to choose from on the ASX, it can be hard to decide which ones to buy.

The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Bigtincan Holdings Ltd (ASX: BTH)

According to a note out of Morgan Stanley, its analysts have initiated coverage on this sales enablement software provider’s shares with an overweight rating and $1.40 price target. This follows the release of a strong second quarter update last week. Morgan Stanley believes Bigtincan is well-placed to benefit from industry tailwinds and its position as the leader in its field. It believes this could lead to strong growth rates over the coming years. The Bigtincan share price is fetching $1.08 this afternoon.

Kogan.com Ltd (ASX: KGN)

A note out of Credit Suisse reveals that its analysts have retained their outperform rating and lifted the price target on this ecommerce company’s shares to $21.08. According to the note, the broker was pleased with Kogan’s first half update. It notes that its sales and profit were in line with its estimates. Looking ahead, the broker believes Kogan is well-placed to benefit from the shift to online shopping, particularly given the expansion of its offering and the acquisition of New Zealand-based online retailer Mighty Ape. The Kogan share price is trading at $17.41 on Monday.

ResMed Inc. (ASX: RMD)

Analysts at Morgans have retained their add rating but trimmed the price target on this medical device company’s shares slightly to $30.09. According to the note, ResMed delivered a stronger than expected second quarter update last week. Morgans was pleased with its strong revenue growth and the expansion of its margins. Furthermore, it believes the company is well-placed to continue its growth in the coming years thanks to mask resupply, stable pricing, and growth in sleep treatment patient diagnoses. The ResMed share price is fetching $26.31 today.

More reading

• Why Afterpay, ResMed, Temple & Webster, & Worley shares are dropping lower
• ASX 200 Weekly Wrap: Reality (and GameStop) finally hits ASX
• 3 ASX tech shares to buy in February 2021
• 3 very impressive ASX quarterly updates from last week
• 3 reasons why the Kogan.com (ASX:KGN) share price could be an opportunity

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends BIGTINCAN FPO. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO and Kogan.com ltd. The Motley Fool Australia has recommended ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Eagers Automotive Ltd (ASX: APE) share price is rebounding from an early morning selloff, currently up 0.45% in afternoon trading to a price of $13.38.

That mirrors the action on the broader S&P/ASX 200 Index (ASX: XJO), which was down over 1.3% in morning trade but has now inched into the green.

A range of analysts, however, believe that Eagers is set to handily outperform the ASX 200 in 2021.

The upside case for Eagers Automotive shareholders

In case you’re unfamiliar, Eagers Automotive is Australia’s oldest listed automotive retail group. It operates new and used car, truck and bus dealerships across the country, claiming 224 showrooms and an 11% market share of new vehicle sales. The company took on its new name in 2019, when AP Eagers merged with the formerly ASX-listed Automotive Holdings Group.

UBS analyst Tom Godfrey is among the analysts who are bullish on Eagers Automotive shares. As the Australian Financial Review reports, Godfrey has a ‘buy’ rating on Eagers’ shares with a 12-month price target of $15. He pointed to December’s new vehicle sales – up 14% year-on-year – as a sign of continuing momentum in the industry.

Godfrey’s optimistic views on the company are backed by Bell Potter analyst Chris Savage. Savage also has a ‘buy’ rating on Eagers’ shares with a 12-month price target of $15.50.

Most bullish of all is Morgan Stanley. The broker has an ‘overweight’ recommendation on Eagers’ shares and a 12-month price target of $17, writing:

APE positively surprised, upgrading 2020 underlying PBT [profit before tax] to A$209.4m, up from A$195-205m PBT guidance in mid-Dec 2020. We recently highlighted APE as a key pick into Feb, offering the best potential for raising expectations in 2021.

Morgan Stanley’s 12-month target is 27.6% above the current price of $13.32 per share.

There also looks to be some large upside potential in the used car market. As the AFR notes, Eagers Automotive CEO Martin Ward is revamping the company’s used car sales approach.

According to the company, some 900,000 new vehicles are sold in Australia each year. The used car market dwarfs that figure, with some 3.9 million vehicle sales. And, according to Moody’s, the price of those second hand cars is soaring, up around 35% in 2020. That was likely driven by the coronovirus pandemic, which saw people turning to personal cars as they shunned public transport.

Eagers Automotive share price snapshot

2021 has seen the Eagers Automotive share price slip 1.3%, slightly more than the 0.8% drop of the ASX 200.

But go back 12 months and the Eagers share price is up an impressive 50.3%. And in case you were wondering, shares are up more than 353% since the 27 March lows last year.

Eagers has paid a dividend to shareholders every year since listing in 1957. It pays an annualised dividend yield of 0.8%, fully franked.

More reading

• Brokers list the latest ASX shares to buy in this market meltdown
• Why the Eagers Automotive (ASX:APE) share price is on watch today
• ASX 200 falls 0.6%
• Aussies ready to splash on travel, entertainment, cars
• How ASX shares in the automotive sector outperformed the market in 2020

Motley Fool contributor Bernd Struben 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 K2fly Ltd (ASX: K2F) share price is lifting today on news the asset management consulting service will acquire Decipher’s mining solutions business.

The K2fly share price opened at an intraday high of 36.5 cents then plummeted to a low of 34 cents. However, its shares are climbing again in afternoon trade, now up 1.47% to 34.5 cents at the time of writing.

What’s driving the K2fly share price higher?

The K2fly share price is climbing higher after reporting a takeover of Decipher to enhance its suite of solution offerings.

Decipher is a software-as-a-service company developed and operated by CSBP Limited (CSBP), and Wesfarmers Chemicals, Energy & Fertilisers Limited (WesCEF). Decipher offers a cloud-based platform that helps manage a company’s resources to be more sustainable and profitable.

In its announcement, K2fly advised that it has executed a business sale agreement to acquire the assets of the ‘Decipher for Mining’ business from CSBP and WesCEF.

As part of the agreement, Decipher CEO Anthony Walker will join K2fly in a senior executive position along with the core Decipher team. It’s expected that the new inclusions will bring added expertise to K2fly’s software solution suite.

Terms of the deal

Under the agreement, K2fly will issue 11,366,691 ordinary shares worth $3.7 million to Westfarmer’s subsidiary, CSBP. This will account a holding of 10.13% interest in K2fly upon completion of the transaction, making CSBP its largest shareholder.

In addition, up to 5,345,633 performance shares can be further issued if performance targets be met. Should this occur, CSBP’s stake in K2fly will increase to 14.22%, pending the conversion of performance shares to ordinary shares.

Both classes of shares will be subject to voluntary escrow periods for 2 years.

The company said it will send out a notice of the meeting to all shareholders in the near-term future. K2fly is seeking shareholder support to approve the acquisition which will be held around the middle of March. If successful, it’s estimated that completion of the acquisition would occur within a short time after.

Management commentary

Commenting on the acquisition, K2fly chief commercial officer Nic Pollock said:

We have been partnered with Decipher for nearly a year now and we have found many synergies in our joint offering, go to market capabilities, and operational models that the acquisition was a logical combination.

We are both lean start-up companies and there is virtually no duplication and many upsides to the deal. We are pleased that Anthony Walker, the Decipher CEO, will be joining K2fly in a senior executive position as well as the core Decipher team.

Decipher CEO Anthony Walker went on to add:

We have formed a very close working relationship with the K2fly team, and we all share a passion for delivering better ESG (environmental, social and governance) monitoring and compliance outcomes to the mining industry and the communities in which they operate. This transaction will dramatically increase our pace of delivery on these aspirations.

More reading

• The K2fly (ASX:K2F) share price is soaring today. Here’s why
• Here’s why the K2Fly (ASX:K2F) share price is pushing higher

Motley Fool contributor Aaron Teboneras 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 Core Lithium Ltd (ASX: CXO) share price won’t be going anywhere on Monday.

Prior to the market open, the Northern Territory based lithium-focused mineral exploration company requested a trading halt.

Why is the Core Lithium share price in a trading halt?

This morning Core Lithium requested a trading halt pending the release of an announcement in relation to a share placement.

It has requested that its shares remain in the trading halt until the earlier of the release of its announcement or the opening of trade on Wednesday.

Why is the company raising funds?

Management hasn’t provided any explanation for why it is launching the placement. However, it is likely to be related to activities at its 100%-owned Finniss Lithium Project located near Darwin in the Northern Territory.

Over the last quarter, the company has been busy completing its lithium resource infill and expansion program at the Grants Deposit. This is a key component of the Finniss Lithium Project.

It had three drill rigs operating at the Grants orebody to a maximum downhole depth of 342.5 metres. This drilling achieved excellent core recovery throughout, with the majority of the planned targets intersected as planned.

Most of the drill holes intersected over 20 metres of pegmatite, which correlates well with its existing resource model at Grants. It is also expected to result in a high conversion of inferred mineral resource to indicated mineral resource. Management also expects the new indicated mineral resources at Grants to significantly increase the bankable life of mine (LOM) in Core Lithium’s updated Definitive Feasibility Study (DFS).

Speaking of which, Core Lithium intends to start the estimation of a new mineral resource in early 2021. It is likely that the funds will be used for this activity and general working capital.

Now certainly seems like a good time to raise funds. Lithium is one of the hottest sectors around and investors are piling funds into this side of the market en masse. Furthermore, with the Core Lithium share price rising a massive 750% over the last six months, this should give the company more bang for its buck when it comes to raising funds.

More reading

• Here’s why the Core Lithium (ASX:CXO) share price stormed 19% higher today
• Afterpay and Creso Pharma were among the most traded shares on the ASX last week
• Here’s why the Core Lithium (ASX:CXO) share price rocketed 45% higher today

Motley Fool contributor James Mickleboro 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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Last week, GameStop Corp (NYSE: GME) shares were in the news. But as we kick off a new week, some investors are focusing on another investment that’s currently kicking up a storm. Yes, silver shares are the talk of the ASX town today.

Why? Well, as we reported earlier today, the now-famous Reddit group WallStreetBets has been bouncing around the idea that a short-squeeze could send the price of the precious metal to more than US$1,000 an ounce. According to Bloomberg, silver is up 6.64% today to US$28.70 an ounce. That’s up around 13% since 27 January, when it was priced at around US$25.40 an ounce.

Silver as an investment

Why silver though? Everyone knows that silver is a valuable precious metal. But gold is normally the ‘investment metal’ that jumps to mind, not silver. So why do people invest in silver in the first place?

Well, silver has a number of characteristics that make it similar to gold. Like gold, silver has a long history of being used as money (our coins used to have silver in them, after all). Many countries in the past have also used a ‘silver standard’ for monetary policy, such as the United States used to have the gold standard.

Further, silver is also believed by many to have ‘inflation-proof’ properties in the same way gold is perceived to have. It also has a limited supply and intrinsic value in the same way gold does. Unlike gold, however, silver also has a range of industrial applications as well, such as in rechargeable batteries and solar panels.

So which ASX silver shares are surging today?

ASX silver shares rocket

One of the most popular silver plays on the ASX today is Silver Mines Limited (ASX: SVL). The Silver Mines share price is up an incredible 30.6% today (at the time of writing) to 32 cents a share. Silver Mines describes itself as “a leading silver exploration company” which fully owns the “largest undeveloped silver project in Australia, and one of the largest globally”. Its primary sites are the Barabolar and Bowdens Silver Projects in central New South Wales.

Another ASX silver share that’s on the rise today is South32 Ltd (ASX: S32), which owns the Cannington Mine located near Mt Isa in Queensland. Cannington is one of the largest silver mines in the world. The South32 share price is up more than 3% today, a more muted response that probably reflects South32’s diversified operations.

Also lighting up the ASX boards today is Adriatic Metals PLC (ASX: ADT) and Thomson Resources Ltd (ASX: TMZ). The Adriatic share price is up more than 11% at the time of writing, whereas Thomson shares are up a whopping 38.5%.

The rising silver price is further reflected in the ETFS Physical Silver ETF (ASX: ETPMAG) unit price, which is up around 8% at the time of writing. This ASX exchange-traded fund (ETF) covers the raw price of silver. Units of this ETF represent ownership of physical silver bullion that is stored in a bank vault.

More reading

• The Thomson Resources (ASX:TMZ) share price is rocketing 38% today
• Silver squeeze next on the list for WallStreetBets, or is it?
• 5 things to watch on the ASX 200 on Monday
• 53% share price jump lands GME Resources (ASX: GME) in trading halt
• Gamestop on the ASX? Why GME Resources (ASX:GME) share price rocketed 28% today

Motley Fool contributor Sebastian Bowen owns shares of ETFS Physical Silver ETF. 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.

The post Why these ASX silver shares are surging today appeared first on The Motley Fool Australia.

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