It was an interesting week on the S&P/ASX 200 Index (ASX: XJO) and the ASX boards this week.

We started on Monday at 6,673 points, got all the way up to 6,854 points on Tuesday, and as of today (at the time of writing), we’re back down to 6,699 points, close to where we started. The more things change, the more they stay the same, I guess.

But one of the biggest movers and shakers on the ASX this week was ASX tech shares. Well, they certainly moved, and those moves had investors shaking in their boots. Take Afterpay Ltd (ASX: APT). The buy now, pay later (BNPL) pioneer was trading at $133.68 a share on Tuesday. Right now it’s $114.48 – a drop of more than 14% in just 3 days.

Zip Co Ltd (ASX: Z1P) fared even worse, down 17% over the same timeframe. Xero Limited (ASX: XRO) has seen an 11% drop since Tuesday. You get the idea.

Tech wrecked

It’s not hard to see where this is coming from. Over in the US, tech shares have also had a terrible week. The tech-heavy Nasdaq Composite (INDEXNASDAQ: .IXIC) Index has lost more than 6% this week since Tuesday (we’ll have to see what happens tonight). That includes some big moves down for stocks like Amazon.com Inc (NASDAQ: AMZN) and Tesla Inc (NASDAQ: TSLA).

As we’ve discussed a few times this week, the primary driver of these concerns appears to be rising long-term interest rates for government bonds. Since many tech stocks are valued by what investors expect these companies to earn in the future (as opposed to what they earn today), they are especially sensitive to longer-term interest rates.

But contrast the moves we have seen in ASX tech shares this week against some of the ASX’s dividend heavyweights. Commonwealth Bank of Australia (ASX: CBA) shares are up more than 5% this week. Australia and New Zealand Banking GrpLtd (ASX: ANZ) has made a new 52-week high. And Woodside Petroleum Ltd (ASX: WPL) is up around 3%.

Tech shares down, ‘tired old blue chips‘ up. That’s not what investors have become used to seeing, I’d wager!

It just goes to prove that sometimes Aesop’s old parable of ‘a bird in the hand is worth two in the bush’ rings true. No wonder Warren Buffett loves quoting that line.

To illustrate, here’s a snippet of Buffett’s annual letter to shareholders in 2000:

Indeed, the formula for valuing all assets that are purchased for financial gain has been unchanged since it was first laid out by a very smart man in about 600 B.C. (though he wasn’t smart enough to know it was 600 B.C.). The oracle was Aesop and his enduring, though somewhat incomplete, investment insight was “a bird in the hand is worth two in the bush.”

To flesh out this principle, you must answer only three questions. How certain are you that there are indeed birds in the bush? When will they emerge and how many will there be? What is the risk-free interest rate (which we consider to be the yield on long-term U.S. bonds)?

If you can answer these three questions, you will know the maximum value of the bush, and the maximum number of the birds you now possess that should be offered for it. And, of course, don’t literally think birds. Think dollars.

In an environment of rising interest rates, investors seem to have decided they would rather have strong cash flows and a hefty dividend right now (a bird in the hand) than wait for the possibility of said cash down the road (two in the bush). Suddenly, Afterpay, who has yet to make a statutory profit, isn’t as exciting, it seems.

When the winds of sentiment change, they can change quickly. This week has been a stark reminder of that.

More reading

• ASX energy shares are booming as OPEC cuts production
• Crown (ASX:CWN) share price facing double Royal Commission trouble
• Tilt Renewables (ASX:TLT) share price falls despite wind farm news
• Why is everyone talking about bond yields?
• Why Tesla stock is stuck in reverse

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 Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia owns shares of AFTERPAY T FPO and Xero. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post This was the week that ASX dividend shares proved their worth appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3c17oGo

The Nickel Mines Ltd (ASX: NIC) share price took a rapid leap higher just before 2pm AEST today. Less than 20 minutes later, shares in the S&P/ASX 200 Index nickel miner had gained 7%.

Now even that spike wasn’t enough to put shares back in the black for the day. With the Nickel Mines share price having opened the day sharply lower, the share price remains down 4% in late afternoon trading.

What drove Nickel Mines 7% share price spike this afternoon?

Nickel Mines shares surged within moments of its ASX release announcing the company’s potential to diversify into the electric vehicle battery supply chain.

Earlier this week, the Nickel Mines share price fell almost 19% from market close on Wednesday through to midday today.

That came after Tsingshan Holding Group reported it had signed a 1-year contract “to supply 60,000 tonnes of nickel matte to Huayou Cobalt and 40,000 tonnes to CNGR Advanced Material Co. Ltd”.

Tsingshan said it had successfully concluded trial production of the high-grade nickel matte in Rotary Kiln Electric Furnace (RKEF) facilities in the Indonesia Morowali Industrial Park at the end of 2020 (IMIP).

Initially, Nickel Mines management was unsure how this development would impact its own operations in the Indonesia Morowali Industrial Park.

In today, ASX release, the company’s directors dispelled any concerns, writing, “The ability for Tsingshan to produce a high-quality nickel matte within the IMIP suitable for use in the EV battery supply chain is an overwhelmingly positive development for Nickel Mines.”

Nickel Mines highlighted the potential for it to sell high-grade nickel matte into the global battery nickel supply chain.

What did management say?

Commenting on the developments, Nickel Mines’ managing director Justin Werner said:

The potential for RKEFs to produce a nickel matte for use in the rapidly growing battery supply chain has long been spoken about so it comes as no surprise to us that Tsingshan is now set to establish this as a commercially viable option.

For Nickel Mines to potentially be part of this evolution in the nickel market is an exciting development for the company and our shareholders and will further enhance our standing as a globally significant nickel producer with a unique capability of delivering nickel units for use across a broad spectrum of nickel markets.

Werner added that this is all still playing out and there won’t be any immediate change in Nickel Mines’ operations.

Nickel Mines share price snapshot

Despite this week’s selloff, the Nickel Mines shares have been a star performer over the past 12 months, up 160%. That compares to a 5% gain from the ASX 200.

Year-to-date the Nickel Mines share price is up 13%.

More reading

• Why these 3 ASX mining shares are crashing today

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.

The post Here’s why the Nickel Mines (ASX:NIC) share price spiked 7% this afternoon appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2MMNrKP

There are a lot of options at the small end of the market for investors to choose from.

Two small caps that could be worth getting better acquainted with are listed below. Here’s what you need to know about them:

ELMO Software Ltd (ASX: ELO)

ELMO is a cloud-based human resources and payroll software platform company. The company’s increasingly popular platform streamlines a number of processes such as employee administration, recruitment, on-boarding, learning, performance, remuneration, compliance training, and payroll.

It recently released its half year results and revealed further strong growth in its annualised recurring revenue (ARR). At the end of December, ELMO’s ARR reached a record $74.2 million. This was an increase of 42.8%. Management advised that this was underpinned by a combination of organic growth and the benefits of acquisitions.

Pleasingly, it still has a long runway for growth in the ANZ and UK markets. Furthermore, thanks to its jurisdiction agnostic platform, it has the option to expand internationally in the future.

Morgan Stanley is positive on the company. It currently has an overweight rating and $9.70 price target on its shares.

Mach7 Technologies Ltd (ASX: M7T)

Another small cap to look at is Mach7. It is a medical imaging data management solutions provider which uses software to create a clear and complete view of the patient.

In addition, management notes that Mach7’s award-winning enterprise imaging platform provides a vendor neutral foundation for unstructured data consolidation and communication to power interoperability. This enables healthcare enterprises to build their best-of-breed clinical ecosystems.

Last month the company released its half year results and revealed that its ARR had grown to $10.2 million at the end of the period. This was up 88% on the prior corresponding period and provides 64% coverage of its operating expenses.

Analysts at Morgans appeared to be happy with its performance. In response, they retained their add rating and lifted their price target to $1.68.

More reading

• Here are 4 ASX shares that insiders have been buying recently
• 2 quality SaaS ASX shares to buy
• Here’s why the Mach7 (ASX:M7T) share price is down 6% today
• 2 exciting ASX growth shares to buy this month
• Top brokers name 3 ASX shares to buy today

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 Elmo Software and MACH7 FPO. The Motley Fool Australia has recommended Elmo Software and MACH7 FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 very exciting small cap ASX shares to buy appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3c5qtaj

South32 Ltd (ASX: S32), IGO Ltd (ASX: IGO), and Nickel Mines Ltd (ASX: NIC) share prices are all crashing today.

At the time of writing, South32’s share price is $2.835, down 1.9%. IGO’s share price is currently trading at $6.26, down 3.9%. And Nickel Mines comes in at $1.25, down $4.60. These falls are greater than the S&P/ASX All Ordinaries Index lag of 1.14%.

Nickel Mines has made a slight recovery this afternoon as the company announced it may enter the electric vehicle battery market. Its current share price is $1.265.

Let’s take a closer look at why these ASX mining companies are all tumbling today.

ASX mining shares rise and fall with commodity prices

As previously reported, the share price of ASX mining companies rises and falls with fluctuations in the commodities market. Today nickel enters the spotlight as its price takes a turn for the worse.

Currently, nickel is trading at US$16,088.50 a tonne. Yesterday, the metal was selling at approximately US$17,370 and last week it swapped hands for around US$19,160. A fall of more than US$3,000 (16%) in the space of a week!

In fact, nickel is one of the few minerals that is priced lower now (10% down) than this time last year.

The Australian Financial Review (AFR) reports that the price of nickel is sliding, and will continue to fall, as the nickel supply increases.

In economic theory – as supply increases, the price will decrease. This does not bode well for investors in nickel extraction companies.

South32’s share price is not falling as steeply as the other 2 ASX mining companies, possibly because it is not as reliant on nickel as IGO and Nickel Mines.

Share price snapshots

While South32’s share price is down today, it’s coming off a 52-week high of $2.90 from yesterday. In fact, if you had bought shares in the company during the COVID-19 market rout in March last year, you would be looking at a 70.7% return on investment.

IGO share price is much the same. While it has been falling since hitting its 52-week high at the beginning of 2021, its share price is 92% higher than at the end of March last year.

Nickel Mines is no exception to the trend. The company did hit its 52-week high 2 weeks ago. Even still, if an investor bought shares in the company at its low of 29 cents (again, at the height of COVID), they would be sitting on a whopping a 320.7% uplift.

The market capitalisations of South32, IGO, and Nickel Mines are $13.6 billion, $4.7 billion, and $3.1 billion respectively.

More reading

• ASX lithium shares to get price shock as commodities supercycle charges up
• These ASX silver shares fell today, along with the price of silver
• Sandfire (ASX:SFR) share price hits year high on profit result and supercycle hopes
• South32 (ASX:S32) posts 46% drop of HY21 profit
• Will ASX silver shares ride the commodity super cycle to new highs?

Motley Fool contributor Marc Sidarous 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.

The post Why these 3 ASX mining shares are crashing today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3uW3R4U

Chalice Mining Ltd (ASX: CHN) shares have tanked 6.25% at the time of writing to presently sit at $4.05.

Furthermore, since Wednesday’s close, the Chalice share price has fallen by around 11%, significantly more than the 1.7% fall seen in the All Ordinaries Index (ASX: XAO) over the past two days.

Let’s take a look at what the company has been up to.

Chalice Mining share price falls after latest presentation

On Monday, the Chalice Mining share price fell by nearly 4% after the miner released its latest investor presentation.

The ASX miner lists its Julimar site as Australia’s first “major” palladium discovery.

Palladium is used to create catalytic converters that are said to be more environmentally friendly than other types of converters. In February 2020, palladium reached its record price of US$2,856 per ounce.

Chalice believes that the heavy transport industry and energy storage sectors are rapidly growing areas but future palladium demand will increase even more.

According to Chalice, the palladium market has been in deficit for nine consecutive years.

The presentation draws further attention to some of the company’s gold operations and the Hawkstone nickel-copper project, noting that each of these areas has delivered compelling results.

What’s ahead for Chalice?

Chalice Mining continues to progress the Julimar Project, specifically, the major PGE-NI- Cu-Co-Au discovery.

In 2020, the ASX miner raised approximately $130 million to move the Julimar Project forward.

The miner also highlighted in its presentation that it is building trust with the key stakeholders of the Julimar Project, including indigenous and local communities, landowners and government parties.

The company plans to continue progressing with building its team and maintaining a pipeline of discoveries. Chalice will also continue pursuing its other projects including the Pyramid Hill Gold Project, Hawkstone Nickel-Copper-Cobalt Project, South West Nickel-Copper-PGE Project, and Viking Gold Project, among others. 

Chalice Mining share price snapshot

Over the past year, the Chalice Mining share price has exploded more than 1,500% higher. Year to date, Chalice shares have fallen by around 6%.

The ASX miner has a market capitalisation of $1.5 billion and 341.8 million shares outstanding.

More reading

• Why these 3 ASX mining shares are crashing today
• Why ASX uranium shares could run even hotter in 2021
• Why it could be a good time to buy Domino’s (ASX:DMP) shares
• Brokers name 3 ASX shares to buy right now
• Why the Nova Eye (ASX:EYE) share price is surging 7% higher

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.

The post Chalice Mining (ASX:CHN) share price tanks 11% in 2 days appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3c3wi8j

There’s no arguing with the numbers.

The past year (and then some) has seen the leading ASX uranium shares truly light up.

The Paladin Energy Ltd (ASX: PDN) share price, for example, is up 415% over the past 12 months. ASX uranium miner Deep Yellow Ltd (ASX: DYL)’s share price is up 246% over that same time.

Things have continued apace in 2021, with Deep Yellow shares up 24% in the calendar year and Paladin shares up 54%.

That more than handily outpaces the one-year 7% gains posted by the broader All Ordinaries Index (ASX: XAO), not to mention the 0.4% loss on the All Ords so far in 2021.

But the run higher for ASX uranium shares like these could only just be getting started.

Why ASX uranium shares may have a bright future

Australia may not opt to use uranium for its own power sources. Though Australia – both fortuitously and somewhat ironically – has among the world’s largest accessible uranium deposits buried beneath its soil.

And demand for uranium in other parts of the world is picking up as the globe attempts to wean itself away from carbon-based fuels. This is an increasingly important focus for environmental, social and governance (ESG) investments.

As Bloomberg reports, “Uranium producers are reaping rewards from the flood of money pouring into electrification and environmental, social and governance investing themes”. That’s seeing demand begin to outpace supply for the first time in a decade.

According to GJL Research analyst Gordon Johnson, “Uranium sector supply/demand balance is the tightest we’ve seen since pre-Fukushima.” Fukushima was the site of the post earthquake nuclear meltdown in Japan in 2011.

Pointing to the rising importance of ESG, Johnson says:

When you add to this, uranium stocks are now gaining attention from ESG investors due to their low GHG [greenhouse gas emissions] footprint and quintessential role as a clean energy alternative, we see the set-up for incremental/new Uranium investments as opportune.

Johnson said another potential tailwind for uranium shares is that institutional funds may be looking to increase their exposure to the sector. “If true, this could go on for a long time as they build significant positions ahead of the inevitable price rise in the commodity.”

Today’s share price moves

Both Paladin and Deep Yellow shares are selling off today. While the All Ords is down 1.1% in late afternoon trading, the Paladin share price has fallen 4.1% and the Deep Yellow share price is down 7% at the time of writing.

More reading

• Why is the Paladin Energy (ASX:PDN) share price heating up today?

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.

The post Why ASX uranium shares could run even hotter in 2021 appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2O6XGdw

While the recent volatility has been disappointing, one positive is that it has dragged a number of growth shares down meaningfully from their recent highs.

One ASX growth share that could be in the buy zone now is Domino’s Pizza Enterprises Ltd (ASX: DMP).

Why Domino’s?

This pizza chain operator could be a great option for growth investors. Since the Domino’s share price hit a record high of $115.97 in February, it has pulled back by approximately 25%.

This appears to have left its shares trading at an attractive level for long term focused investors. This is due to its bold expansion plans, strong market position, and long track record of same store sales growth.

In respect to its expansion plans, at the end of the first half of FY 2021, Domino’s operated a total of ~2,800 stores across the ANZ, European, and Japanese markets.

It is aiming to grow its network to ~5,500 stores in these markets alone in the coming years. There’s also a reasonably high chance that the company could expand into other markets, giving it an even larger runway for growth. In fact, with its half year results, management stated that it “remains active in pursuing suitable Domino’s acquisitions.”

One broker that is positive on the company is Goldman Sachs. A recent note out of the investment bank reveals that its analysts have put a buy rating and $112.60 price target on its shares.

Based on the current Domino’s share price, this implies potential upside of over 30%.

Why does Goldman think the Domino’s share price is good value?

There are a number of reasons the broker is a fan of Domino’s. One of those is its growth potential in the European and Japan markets.

It commented: “Although short term performance has been positively impacted by the pandemic, DMP is in an increasingly strong position as it builds on recent momentum and takes advantage of opportunities in the market. We forecast both Japan and Europe to deliver significant store and earnings growth over the next three years, amounting to 24% and 23% EBITDA CAGR to FY23.”

Goldman expects this to lead to net profit after tax of $197.5 million in FY 2021, $241.8 million in FY 2022, and $284.6 million in FY 2023.

Based on this, the Domino’s share price is changing hands for 26x FY 2023 earnings. Goldman believes this represents good value given its current growth profile.

More reading

• The Domino’s (ASX:DMP) share price gave back all its gains in February
• Leading brokers name 3 ASX shares to sell today
• Will Wall Street’s overnight tumble send ASX 200 shares down today?
• What’s happening with ASX 200 tech shares today?
• ASX 200 goes higher, Afterpay sinks, Adbri impresses

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why it could be a good time to buy Domino’s (ASX:DMP) shares appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3c2ihrA

Australia’s top brokers have been busy adjusting their estimates and recommendations again, leading to the release of a number of broker notes.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Nextdc Ltd (ASX: NXT)

According to a note out of Citi, its analysts have retained their buy rating but trimmed the price target on this data centre operator’s shares slightly to $14.45. The broker was pleased with NEXTDC’s half year results last month. Looking ahead, Citi notes that a good portion of its future earnings are already contracted. Furthermore, with the shift to the cloud accelerating, demand looks set to continue to grow in the coming years. The NEXTDC share price is fetching $10.51 on Friday afternoon.

Wesfarmers Ltd (ASX: WES)

A note out of Macquarie reveals that its analysts have retained their outperform rating but cut the price target on this conglomerate’s shares to $56.60. The broker has been looking at recent sales data and notes that the household goods sector continues to perform very strongly. In addition to this, the broker points out that with household savings at a record high, strong retail spending should be sustainable over the medium term. The Wesfarmers share price is trading at $49.45.

Westpac Banking Corp (ASX: WBC)

Analysts at Citi have also retained their buy rating and $26.00 price target on this banking giant’s shares. According to the note, after speaking with management, the broker believes Westpac’s Institutional Bank business is well-placed to overcome cost pressures and a moderation in volumes thanks to its asset quality. Outside this, the broker is positive on the company due to its balance sheet and expects this to underpin solid returns in the future. The Westpac share price is trading at $24.73 on Friday afternoon.

More reading

• Why is everyone talking about bond yields?
• The NextDC (ASX:NXT) share price just hit a 9-month low despite broker upgrades
• ANZ (ASX:ANZ) share price outperforms on broker “buy” upgrade
• What do big brokers think about the Afterpay (ASX:APT) share price this week?
• The ANZ (ASX:ANZ) share price just hit a 52-week high

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

The post Brokers name 3 ASX shares to buy right now appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/38eBcym

The Nova Eye Medical Ltd (ASX: EYE) share price is in the green today. This comes after the company released positive results showing the efficacy of its 2RT treatment.

During mid-afternoon trade, the medical technology company’s shares are up 7.58% to 36 cents.

What were the results?

In today’s release, Nova Eye advised that it has published the results of its 5-year patient follow-up data from the LEAD trial in a recent publication of Ophthalmology Retina. The article discusses the long-term effect of subthreshold nanosecond laser (SNL) treatment on progression to late age-related macular degeneration (AMD).

The company said the LEAD trial was a randomised, controlled multi-centre study involving 292 patients over a 6-year period (2012 to 2018). The program assessed the efficacy of 2RT at the 3-year mark in patients suffering from intermediate AMD.

Of the enrolled patients that completed the 5-year review (222 patients), two groups were equally split. This consisted of the 2RT treatment group, and the other being the non-treatment group.

The published article states that when factoring the trial participants and additional data observed during the five-year post-LEAD review, the results are promising. It showed strong evidence of a reduction in the rate of progression in AMD when treated with 2RT.

What did management say?

Nova Eye Medical director Tom Spurling hailed the results, saying:

While these data have been calculated by the authors using post-hoc analysis, the improvement in the clinical response in patients without RPD at five years using is very exciting, particularly given these patients did not receive further 2RT treatment during the last two- year observation period.

Overall, there was a significant reduction in the rate of progression to late-stage AMD in these patients. This is of significant benefit to patients in deferring disease progression and thus maintaining their quality of life. It also supports our previously stated position that 2RT offers the potential to meet a major global unmet need to delay onset of blindness.

About the Nova Eye share price

The Nova Eye share price has lost almost half of its value since this time last year. The company’s shares have been impacted by COVID-19, which has affected its medical equipment and devices business.

Based on the current share price, Nova Eye Medical commands a market capitalisation of close to $50 million.

More reading

• Brokers name 3 ASX shares to buy right now
• 2 high quality ASX ETFs to buy this month
• Fundie tips this ASX 200 retail share to prosper in 2021
• 4 ASX retail shares that Morgans thinks are a ‘Buy’
• Why the Cadence Capital (ASX:CDM) share price is zipping 9% ahead

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Nova Eye Medical Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Nova Eye (ASX:EYE) share price is surging 7% higher appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2OsIIOM

Exchange-traded funds (ETFs) can be useful additions to any ASX portfolio. An ETF doesn’t represent a single ASX share, but rather a collection of different shares, all in one fund.

As such, ETFs can be a useful tool to increase diversification and exposure to hard-to-reach areas in one’s portfolio. To that end, let’s take a closer look at two ASX ETFs.

BetaShares Asian Technology Tigers ETF (ASX: ASIA)

Many ASX investors choose to buy US shares directly, which isn’t that hard these days. But Asian markets remain rather difficult for Aussies to directly participate in.

That’s why this ETF from BetaShares can come in handy. Asian Technology Tigers holds within it 50 of the largest technology companies from the Asian region (excluding Japan).

These include some names you might have heard of, such as Samsung Electronics and Tencent Holdings, to some you may not be as learned in, like JD.com and Baidu. This ETF is heavily dominated by Chinese and Hong Kong-listed companies. But it also offers handy exposure to the Taiwanese, South Korean, and Indian markets.

Asian Technology Tigers has been on an absolute tear over the past year, rising an eye-watering 61%. But, this ETF has also lost a bit of steam in recent weeks and is now down around 14% since 15 February.

It charges a management fee of 0.67% and offers a trailing distribution yield of 0.9%.

VanEck Vectors Wide Moat ETF (ASX: MOAT)

Changing lanes to this ETF from VanEck now. The Wide Moat ETF aims to hold a basket of US shares that all have characteristics that indicate the presence of an economic moat. A moat is a concept pioneered by the great Warren Buffett.

It demonstrates that a company has an intrinsic competitive advantage, such as a strong brand, pricing power or switching costs. This theoretically helps to ‘protect’ the business from competitors in the same way a medieval moat protected a castle from invaders.

No surprises then that the Wide Moat ETF holds Buffett’s Berkshire Hathaway Inc (NYSE: BRK.A) (NYSE: BRK.B) among its holdings. Other names you might know in this ETF include Amazon.com Inc (NASDAQ: AMZN), American Express Company (NYSE: AXP), Microsoft Corporation (NASDAQ: MSFT) and McDonald’s Corporation (NYSE: MCD).

The Wide Moat ETF charges a management fee of 0.39% per annum and has a trailing distribution yield of 1.35%. It has also managed to deliver an average return of 17.31% per annum over the past five years.

More reading

• Brace for even more new ETFs to hit the ASX
• 2 top ETFs to buy in March
• 2 tech ETFs for ASX investors to buy after the market selloff
• 2 top ETFs to buy and hold
• 2 high quality ETFs for ASX investors to buy in February

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of American Express, 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, Baidu, Berkshire Hathaway (B shares), JD.com, and Microsoft 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), long January 2022 $1920 calls on Amazon, short January 2022 $1940 calls on Amazon, and long January 2023 $200 calls on Berkshire Hathaway (B shares). The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended Amazon, Berkshire Hathaway (B shares), JD.com, 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.

The post 2 high quality ASX ETFs to buy this month appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3eai08L