More reading

• Why the New Century (ASX:NCZ) share price shot up today
• 2 ASX blue chip dividend shares with yields over 4% today
• Why did the IDP Education (ASX:IEL) rise by 20% in one month?
• Why the Dorsavi (ASX:DVL) share price is flying 22% higher today
• Xtek (ASX:XTE) share price soars 7% on AGM update

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The New Century Resources Ltd (ASX: NCZ) share price rose today following the company announcing the completion of its retail entitlement offer. The Zinc miner announced its intention to raise money in early November. The New Century share price closed 4.55% higher on the news, reaching a price of 23 cents.

The news comes on the back of a very strong month for the company. Since the start of November the New Century share price has gained an impressive 50%.

Aside from its recent appreciation in price, it has not been a year to remember for shareholders however. with shares in the company declining by around 17% in the last year.

What does New Century do?

New Century is a Zinc miner located in Australia. The company’s primary mine is the Century mine in Queensland, which New Century is aiming to develop into one of the top 10 zinc producers in the world.

New Century acquired the mine in 2016, and has since transformed it. The upgrade was completed in August 2018, when the mine successfully entered production. 

Zinc is the fourth most consumed metal in the world after iron, aluminium and copper, according to geology.com. It can be used in cars, as an alloy and to galvanize metals among many other things.

Why is the New Century Share price rising?

The New Century share price is storming higher today after the company announced that it had completed its entitlement offer. It was announced that approximately 85% of shareholders took up their entitlements.

The company reported that it experienced strong shareholder uptake of the offer and consequentially increased the offer amount to $14.4 million. This was still short of the total $18 million worth of new shares requested.

The new shares will be issued on 1 December and are expected to commence trading on the ASX by the following day. It should be noted that the shares will rank equally with existing ordinary shares on issue.

More reading

• Intelicare (ASX:ICR) share price slips despite positive announcement
• 2 ASX blue chip dividend shares with yields over 4% today
• Why did the IDP Education (ASX:IEL) rise by 20% in one month?
• Why the Dorsavi (ASX:DVL) share price is flying 22% higher today
• Xtek (ASX:XTE) share price soars 7% on AGM update

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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As my Fool colleague James Mickleboro pointed out this morning, the best you can expect from an Aussie bank term deposit right now is around 0.6% per annum. That kind of annual yield is, from a wealth-building perspective, pretty uninspiring. At that rate, your money is actually going backwards in real terms if you account for the effects of inflation and taxes.

So what’s the alternative? Well, there are a number of ASX dividend shares offering yields that far exceed those of cash investments these days.

Here are 2 such ASX blue chip income payers that offer fully franked yields of more than 4% on current prices.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is one of the most diversified ASX shares on the market. It owns a staggering array of quality business. These range from the massive retailers in Bunnings, Target and Officeworks, to smaller brands like Kleenheat Gas, Workwear and CSBP.

The company also still retains an approximate 5% stake in Coles Group Ltd (ASX: COL) (more on Coles later), which it used to own in its entirety before the 2018 spin-off.

So, Wesfarmers is known for its diverse earnings base and sheer size (its current market capitalisation is close to $57 billion). But what of its dividends?

Wesfarmers has paid out 95 cents per share in ordinary dividends in 2020, plus a special dividend of 18 cents per share, all fully franked. That gives Wesfarmers’ shares a trailing dividend yield of 3.03%, which grosses-up to 4.33% with full franking, or 4.84% if you include the special dividend as well.

Coles Group Ltd (ASX: COL)

This company probably needs little introduction as the second-largest supermarket/grocer in the country, with a market capitalisation of $23.92 billion on current pricing. However, the Coles Group doesn’t just own supermarkets. It also owns bottleshop chains like Liquorland, Vintage Cellars and First Choice liquor, as well as Coles Financial Services and an interest in the Flybuys loyalty program.

Coles has had an interesting year, but one that has resulted in record sales. The company reported a healthy full-year revenue growth rate of 6.9% for FY2020 back in August. This enabled Coles to increase its final dividend for 2020 by 14.6% to 27.5 cents a share. That gives Coles shares a full-year dividend of 57.5 cents per share in 2020, which gives us a trailing yield of 3.21% on current prices. That’s 4.59% grossed-up with Coles’ full franking credits.

More reading

• 2 ASX blue chip shares tipped as buys
• These ASX dividend shares have been named as buys
• Stockland (ASX:SGP) share price up 3% after new chief announced
• 3 ASX companies named and shamed as worst in industry
• Why these ASX 200 shares just hit record highs

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The IDP Education Ltd (ASX: IEL) share price has been a top performer on the ASX this month, rising up 20%. At the time of writing, the IDP Education share price is trading down 1.58% at $24.88, amid a broader fall in the ASX index. Let’s take a look at why the company has done so well in the past month.

What’s driving the IDP Education share price?

The English language education company has benefited from the news that the COVID-19 vaccine might soon be available to the general public. The company’s main revenue source mostly comes from in-person English language testing, and the vaccine news has raised hopes that international students might soon be back in Australia.

IDP Education qualified for JobKeeper, and in the year to 30 June, banked $4.5 million of that government subsidy. The company also reduced its employees’ salaries by 20% in the final quarter of FY20, saving it about $20 million. Those savings translated to an increase of 2.3% in net profit compared to FY19.

Broker upgrade

Earlier this month, broker Morgans upgraded IDP Education to an “Add” recommendation from a “Hold”. The broker said a COVID-19 vaccine would make it possible for international borders to reopen quicker than expected. This would bolster student placement and International English Language Testing System (IELTS) testing volumes – and hence earnings.

The broker also believes that IDP Education will be materially better placed when normalised conditions prevail, as the company has been successful in moving some of its businesses to the digital platform during the pandemic. Morgans raised its new target share price for IDP Education to $25.09, up from $23.31.

Potential risk for IDP Education

A recent study conducted by the IDP Connect International Student Crossroads Research concluded that international students overwhelmingly showed positive perceptions of countries that have remained open during the pandemic, and that many students are willing to change destinations to access face-to-face learning.

IDP Education chief executive Andrew Barkla commented on the finding, saying:

The research is a reminder that by failing to communicate support for students, Australia is at risk of damaging its reputation as a leading study destination.

We have confidence the sector can introduce travel corridors and quarantine programs that allow students to commence safely in Australia, which also enables the wider community to benefit from the many ways students enrich our towns and cities.

More about the IDP Education share price

The IDP Education share price has also done well for the year, up 44%. The share price is currently closing in on its 52-week high of $25.76. IDP Education shares were first floated on the ASX in 2015 at an initial public offering (IPO) price of $2.65. It was trading below $10 per share for most of the period prior to 2019.

At the current price of $24.88, the company commands a market cap of $7 billion. 

More reading

• 5 fantastic ASX shares to buy today
• Average Aussie needs 22 weeks to earn what Elon Musk does in 5 minutes
• Top brokers name 3 ASX shares to buy next week
• Why IDP Education, Sandfire, Telix, & Treasury Wine shares are dropping lower

Eddy Sunarto 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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Wearable sensor technology company Dorsavi Ltd‘s (ASX: DVL) share price is up 22% in late afternoon trading after posting gains of more than 32% earlier in the afternoon. This follows on the company’s annual general meeting (AGM) results, released to the ASX this morning.

Shares in the microcap stock are up 85% for the year. And investors brave enough to go bargain hunting following the post COVID market rout to buy shares on 23 March will be sitting on gains of 270%.

By comparison the All Ordinaries Index (ASX: XAO) is up 49% since 23 March.

What does Dorsavi do?

Dorsavi provides wireless technology that’s designed to accurately and objectively measure and analyse the way people move. How? Via tiny instruments that measure how you bend, twist and step. These include accelerometers, magnetometers and gyroscopes which combine with Dorsavi’s patented algorithms.

The company offer 2 types of sensors. The first monitors movement while the second monitors muscle activity.

What did the AGM unveil to send Dorsavi’s share price rocketing?

In his address to shareholders at today’s virtual AGM, Dorsavi’s Chairman Greg Tweedly revealed that the company had been highly resilient during the pandemic period, reducing costs as required and showing a level of growth in its recurring revenue.

On the cost front, Tweedly stated the company managed to reduce its cash expenses from $7.7 million in the 2019 financial year to $5.6 million in the 2020 financial year.

Dorsavi has also made progress on transitioning from consulting revenue to recurring revenue contracts. 74% of its FY2020 sales revenue was derived from recurring revenue. That’s up from 51% in FY2019 and 25% in FY2018. Overall sales revenue, impacted by the pandemic, was down 20% year-on year, falling to $2.0 million from $2.5 million.

Additionally, Tweedly confirmed that Dorsavi has recently raised $2.15 million in capital at an issue price of 3.2 cents per share through a placement and entitlement offer. The company received $1.85 million from institutional and sophisticated investors via an oversubscribed placement and $300,000 from eligible shareholders via a 1-for-4 non-renounceable entitlement offer.

Among other allocations, the company plans to use the new capital to accelerate its product development, drive its commercialisation activities in the United States and invest in sales and marketing initiatives.

With the share price already up 85% in 2020, Dorsavi is one tiny ASX share that has seen big moves this year.

More reading

• Xtek (ASX:XTE) share price soars 7% on AGM update
• 2 ASX blue chip shares tipped as buys
• How some people got a 10-bagger, despite COVID-19
• Is it too late to buy the surging Bega (ASX:BGA) share price?
• 2 ETFs that are very popular with ASX investors

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Xtek Ltd (ASX: XTE) share price is soaring higher today. This comes after the company updated the market with its annual general meeting (AGM) presentation.

The release has excited investors, sending the Xtek share price to 62 cents, up 7.8%. In comparison, the All Ordinaries Index (ASX: XAO) is down 0.5% to 6,811 points.

What’s driving the Xtek share price higher?

In its AGM presentation, Xtek spoke positively about its recent achievements and long-term future, including the successful acquisition of United States-based HighCom Armor, which will provide an introduction for XTek’s XTclave products to United States government and law enforcement customers. The company’s lightweight armoured plates are already being used in Australia and Finland.

XTek noted that a new range of armour products has now been developed for the United States. This follows the United States Department of Defence order for testing and qualification purposes. Sales have seen substantial growth over the last 12 months, with the company focused on broadening its distribution channels.

Management commented on the year-on-year growth that Xtek has experienced over the last four years. Revenue has jumped from $9 million in FY17 to a record $42.7 million in FY20, reflecting a 374% increase.

The company has also shifted around its revenue mix during the year. Its proprietary products, and small unmanned aerial systems (SUAS) supply and support business have all risen in gross margin value.

Outlook

Looking ahead, Xtek is targeting opportunities in its United States recurring ballistic sales, currently worth $14 million per year. In addition, the recent Finnish $2 million XTclave order is expected to yield further contract awards. In total, Xtek sees up to $70 million in near-term prospects across its entire portfolio.

The company also reports that its medium to long-term target is $100 million in revenue, which it plans to achieve through a number of activities including expanding its United States distribution and manufacturing base and establishing new networks for exports.

About the Xtek share price

The Xtek share price is down 17% since the beginning of the year. Although its shares are higher over the last month, up 10.7%, the company is 32% down from its 52-week high.

More reading

• The Native Mineral (ASX:NMR) share price leaps 17% higher. Here’s why…
• The Ioneer (ASX:INR) share price has rocketed up 11% today and 61% in November
• Strike Energy (ASX:STX) share price rises on business update
• Here’s why the Clean TeQ (ASX:CLQ) share price tumbled 10% today
• APA Group (ASX:APA) share price flat despite major project news

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Are you looking to bolster your portfolio with the addition of a few quality blue chip shares?

Then you’re in luck, here are two top blue chips that have recently been tipped as buys.

Cochlear Limited (ASX: COH)

Cochlear is a global leader in the design, manufacture, and selling of implantable hearing devices. It has been a consistently strong performer over the last decade thanks to the increasing demand for its products due to the ageing populations tailwind and its world-class product range.

The latter has been underpinned by its high level of investment in research and development (R&D). In FY 2020, Cochlear spent $185 million or ~14% of revenue on R&D. This is expected to increase to between $190 million and $195 million in FY 2021 as management focuses on internet-connected devices.

One broker that believes Cochlear is well-placed for growth is Macquarie. It recently retained its outperform rating and $241.00 price target on the company’s shares. Its industry research shows that Cochlear has been winning market share in the United States. Its products were also the most highly rated according to a survey undertaken with audiologists.

Coles Group Ltd (ASX: COL)

Another popular ASX blue chip share is Coles. It is of course one of Australia’s leading supermarket operators and most recognisable brands. It has been growing at a solid rate in recent years thanks to a combination of same store sales growth, store expansion, and its defensive qualities.

Those qualities were on display for all to see this year when Coles’ sales surged during the pandemic. The good news for investors is that sales remain strong in FY 2021 and a bumper first half result is expected in February. In addition to this, the company’s refresh strategy, which is focusing on cost cutting, automation, and efficiencies, is aiming to underpin solid earnings growth over the 2020s.

Analysts at Citi appear confident that Coles’ strong form can continue. The broker recently retained its buy rating and lifted the price target on the Coles share price to $21.20. It expects groceries demand to remain strong over the medium term. It also notes that margins are firming up thanks to rational competition in the industry.

More reading

• These ASX dividend shares have been named as buys
• Why Coles and this ASX dividend share are buys for income investors
• ASX 200 rises more than 1% on Tuesday
• Is the Cochlear (ASX:COH) share price a long term market beater?
• ASX 200 Weekly Wrap: ASX continues to climb, despite outage

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 Cochlear Ltd. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended Cochlear Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This is something I didn’t want to write.

But it’s something I think you need to read.

No, it’s not some tabloid tell-all, or deep series of embarrassing confessions, but it’s worth reading (and writing).

The reason I don’t want to write it is because it concerns a winning stock pick that I made some years back. And, though I always want to do well for our members, I really don’t like blowing my own trumpet (much to the chagrin of our marketing team).

And also because, with any of our recommendations that are still current stock picks, it could always go down – or up – from here, so the story isn’t fully written just yet.

But here’s why I want you to read it, and why I had to write it: because there are some very real investing lessons that I want you to really internalise.

The company in question is Corporate Travel Management Ltd (ASX:CTD).

I first recommended it to members of Motley Fool Share Advisor back in August 2012. Then again in June 2014, and once more in August of 2016.

In the 8-plus years since that first recommendation, CTM shares have delivered a total return of 976.3%, as of this morning. That’s the equivalent of turning $5,000 into more than $53,000.

#Humblebrag? Maybe. But as I said, I don’t like victory laps. 

Yes it’s a big winner, and I’m proud of the return we’ve delivered for our members.

I highlight it as an example of the power of buy-to-hold investing. We could have sold out for a gain of 100%, 200% or 400% along the way, but sticking to our guns and letting time do the work has well and truly paid off.

So that’s the general theme.

But there’s something more specific I want to share with you.

See, CTM shares changed hands for just under $20 at the beginning of the year.

By March 19, 2020 – the low point for CTM as the ASX plunged into the fastest bear market in history – shares had cratered to be selling for only $4.57 each.

At that point, the news was bleak. 

The doomsayers were full-throated in their pessimistic predictions.

And CTM shares were on the ropes.

It was tempting to give in to the fear and doubt. To listen to the pessimists and permabears. To just give up and sell.

And that would have been catastrophic for your wealth.

Here’s why:

After that March 19 nadir, shares started to climb.

And climb.

And climb.

They passed through $5, then $10, then $15 and eventually $20.

But – and this is important – not in a straight line.

And, as I said at the top, the ride might not be over, either. We can’t ever know.

Why am I telling you this?

Because, while I was as full-throated as the doom-and-gloomers in March, April and May, I wasn’t telling you to sell, or to run away.

Exactly the opposite.

I was exhorting you to hold on. And to buy.

Man, was I (almost) Robinson Crusoe at the time.

Plenty wanted you to sell.

Plenty more wanted you to ‘wait and see’.

Here’s what I wrote, on 22 April, 2020:

“Lastly, this too shall pass.

Yes, this crisis is unique.

So was the GFC.

So was the dot.com crash.

So was the Asian financial crisis (remember that?).

So was 1987.

But you know what they all had in common?

The crisis passed, and shares regained and surpassed their previous highs.

And you know who made money? Those who held and kept buying shares in quality companies.

Will this time be the same? We can’t know yet.

But I reckon the odds are very, very good.

That’s why I’ve been buying.

That’s why we are recommending our members keep buying.

Oh sure, if you have a working crystal ball, knock yourself out. Go for it.

But if you don’t, shouldn’t you just be keeping your eyes on the horizon and investing anyway?

I think so.”

I sent lots of emails.

I spoke on television.

We held Facebook Live sessions where my overwhelming message was to be optimistic.

More specifically, while the market was down 25%, 30% and 35%, I was saying the same thing I said in that email:

“The ASX has never yet failed to regain and then surpass previous highs. It would be a brave person to bet that this is the first time ever.”

Put simply, fear was running rampant. So-called experts were panicking, or equivocating, or both.

My message was – is – simple. 

Look to the horizon, not the ground directly in front of you.

Corporate Travel shares closed yesterday at $20.92 a piece. I’m writing this first thing this morning, so I have no idea what the shares will do today.

But you’ll notice that CTM is now trading at a higher price than on 1 January and more than four times the price the shares changed hands for at the depths of the COVID-19 gloom.

That’s how you win in the stock market.

You find good companies. 

You add to them regularly.

You don’t let the misery guts’ of this world scare you out of them.

You let time do the work.

(And, it should be said, I reckon you should reconsider who you listen to, using this year as a benchmark. Do you really want to be following panic merchants and those with weak stomachs? But that’s up to you.)

And that, in sum, is why I felt I needed to write this.

Because, at the time, you could have been excused for thinking “Sure, Phillips… but let’s just see how this Pollyanna optimism works out for you”.

Which is why I’m back here, now.

Bluntly: optimism works.

I want to use the success of our CTM recommendation (and, because it’s more than a one-trick kinda thing, the sum total of the Motley Fool Share Advisor scorecard) to demonstrate.

First: Buy quality businesses at reasonable prices.

Second: Let time do its thing.

Third: Don’t fear volatility.

Fourth: Don’t listen to people who are so busy trying to sound smart that they miss the main game.

And here’s the kicker:

We will have more volatility. We will have more recessions. There will be more doom-and-gloom predictions and the headlines that inevitably follow. More ‘smart’ people will tell you to buy, sell, buy, sell, buy…

And you’re welcome to choose your own path.

But I hope, when that time comes, you’ll remember this story, and not be easily spooked.

I hope you’ll buy quality and – unless there’s something truly business-breaking – hang on. 

Even, I hope, keep buying. 

Then, let time do its thing.

The future belongs to the optimists.

That’s how real wealth is made.

Fool on!

More reading

• Why the Webjet (ASX:WEB) share price is soaring 6%
• Why the Sydney Airport (ASX:SYD) share price rocketed 24% higher today
• Top brokers name 3 ASX shares to buy next week
• Travel shares are flying higher today. Here’s why.
• ASX 200 Weekly Wrap: ASX 200 has another shocker as US election approaches

Motley Fool contributor Scott Phillips owns shares of Corporate Travel Management Limited. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post How some people got a 10-bagger, despite COVID-19 appeared first on Motley Fool Australia.

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The Bega Cheese Ltd (ASX: BGA) share price is among the top performers today but the stock could have further upside.

The BGA share price surged 6.7% to $5.40 in late afternoon trade after it came out of a trading halt.

This makes the stock the best performer on the S&P/ASX 200 Index (Index:^AXJO) with the Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price and Perseus Mining Limited (ASX: PRU) share price taking the second and third spots, respectively.

Bega share price jumps on new growth options

Investors are excited about the Bega share price after management confirmed it was buying Lion Dairy and Drinks from Japan’s Kirin for $534 million.

The takeover will give Bega highly valued growth options. But if you are worried that you may have missed the boat, Morgans reckons there’s still room for the BGA share price to climb before hitting fair value.

Broker upgrades Bega’s share price to “buy”

Incidentally, the broker upgraded the Bega share price to “add” from “hold” in the wake of the acquisition.

Morgans pointed out that Lion owns some of some of the most iconic brands in Australia that are either number one or two in their category. These brands include Dairy Farmers, Pura, Dare, Big M, Yoplait, Farmers Union, Berri and Vitasoy.

The acquisition is done at an enterprise value-to-earnings before interest, tax, depreciation and amortisation (EV/EBITDA) multiple of 10.9 times. This is in line with similar transactions.

It’s all in the synergies

But there’s upside from the synergies. Bega is expecting base case synergies of $41 million that can be achieved reasonably quickly. It can get these savings from reducing non-manufacturing overheads, optimising milk supply and buying power.

“Further synergies are likely beyond BGA’s base case,” said Morgans.

“Given LD&D margins are low (3.5% EBITDA margin pre-synergies) vs industry (BGA branded is 8.7%), we see a substantial opportunity to increase them overtime.

“LD&D will diversify BGA’s earnings by brand, category, route to market and geography. The combined BGA and LD&D business will derive 80% of revenue from more stable branded product sales (vs. 59% at present), reducing the group’s exposure to volatile commodity driven bulk earnings.”

Cream rising to the top

The broker estimates that the acquisition lifts Bega’s FY22 earnings per share (EPS) by 12.5% and FY23 EPS by 15.4%.

This prompted it to lift its 12-month price target on the Bega share price to $6.10 from $5.13 a share.

Even with today’s big rally, there is still a 13% upside to fair value if Morgans is on the money. Let’s also not forget that Bega is forecast to pay an 11 cents a share dividend this financial year.   

More reading

• Can these fund managers drive the Coca-Cola Amatil (ASX:CCL) share price 10% higher?
• Why Air NZ, Bega Cheese, Fisher & Paykel Healthcare, & Galaxy are pushing higher
• ASX 200 down 0.35%: Bega Cheese jumps, Flight Centre & Webjet tumble lower
• This expert thinks the oil price could surge to US$196 a barrel in 2021
• Bega Cheese (ASX:BGA) share price jumps 10% on Lion Dairy & Drinks acquisition

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Exchange traded funds (ETFs) have been growing in popularity with investors over the last few years and this trend has only accelerated in 2020.

As we revealed here earlier this month, following two record-breaking months of fund inflows in a row, the Australian ETF industry is now worth an estimated $73.8 billion.

While there are an increasing number of ETFs for investors to choose from, two which are among the most popular are listed below. Here’s what you need to know about them:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The BetaShares Asia Technology Tigers ETF gives investors exposure to a number of the biggest tech companies in the Asia region. BetaShares notes that these are companies which are revolutionising the lives of billions of people in the Asia market. It believes they are well-positioned to benefit from the region’s younger, tech-savvy population, which is surpassing the West in terms of technological adoption. Among its holdings you will find the likes of Alibaba, Baidu, JD.com, and Tencent.

In respect to Tencent, it is the company behind the hugely popular WeChat app. It is China’s most dominant instant-messaging service and currently has over 1.2 billion active users globally. The app also has a virtual duopoly with Alibaba’s Ant Group in the mobile payments industry in the country. In addition to this, it has a huge online and mobile games business and has just launched into new areas such as advertising, content, and commercial services.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another ETF that is popular with investors is the BetaShares NASDAQ 100 ETF. This fund aims to track the performance of the NASDAQ 100, which comprises 100 of the largest non-financial companies listed on Wall Street’s famous exchange. This means that through a single investment, investors will be getting a slice of tech giants such as Google parent, Alphabet, Amazon, Apple, Facebook, Microsoft, Netflix, and Tesla.

As we revealed here earlier today, Tesla is the most searched company by Australian investors right now. And it isn’t hard to see why with electric vehicle demand expected to explode in the future. In addition to this, one leading fund manager notes that Tesla is more than just a car company. Hyperion Asset Management believes the company has the potential to generate incredible revenues from frequency regulation in the future. It feels Tesla could dominate the virtual power plant and energy storage market while millions of its cars sit in consumer garages and provide power to the grid.

More reading

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• 2 quality ETFs that are popular with ASX investors

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 Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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