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  • Is the Vanguard Australian Share ETF the best long-term ASX investment?

    ETF

    ETFETF

    Is the Vanguard Australian Share ETF (ASX: VAS) the best long-term ASX investment?

    Vanguard Australian Share ETF is an exchange-traded fund (ETF) that is invested in around 300 ASX shares. Indeed, its aim is to track the S&P/ASX 300.

    What is Vanguard?

    Vanguard is an investment business like many others. However, there is a significant difference. The owners of Vanguard are the investors, it shares the profit with investors by lowering the costs as much as possible.

    Lower costs is a great outcome because fees can be a big influence on the net returns. The lower the fee, the higher the net return.

    Fees

    The ETF has an annual management fee of just 0.10%, that’s one of the lowest-costing portfolio investment options for ASX shares.

    That fee is so low that it barely reduces the overall return at all. There’s a chance it could go even lower as the ETF gets bigger and there are even more scale benefits.

    Diversification

    One of the main reasons to consider ETFs is that they offer really good diversification. Vanguard Australian Share ETF is invested in 300 ASX shares, though there is a large allocation to financials and resources shares. That’s not the most attractive diversification, particularly as the largest two sector allocations aren’t with areas with big growth potential like technology. 

    Financials has a 26.9% allocation and materials has a 19.5% allocation. Healthcare is the only other sector with an allocation of more than 10% with a 12.2% holding.

    Its top 10 holdings at 30 June 2020 were: CSL Limited (ASX: CSL), Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), Australia and New Zealand Banking Group (ASX: ANZ), Wesfarmers Ltd (ASX: WES), Woolworths Group Ltd (ASX: WOW), Macquarie Group Ltd (ASX: MQG) and Transurban Group (ASX: TCL).

    However, I think as newer businesses, like Afterpay Ltd (ASX: APT), grow and become bigger influences on the index then Vanguard Australian Share ETF will become more appropriately diversified.

    Returns

    The ETF hasn’t been a very strong performer over the past decade, with Australia’s ASX blue chips struggling to generate meaningful shareholder returns with the Hayne royal commission and now COVID-19 hurting earnings.

    Over the past decade Vanguard Australian Share ETF has returned an average of 8.2% per annum. The last five years have been even more disappointing with an average return per annum of 5.9%.

    It’s particularly disappointing that most of the return over the past five years – 4.35% per annum – has just been the income paid by the ETF. There has been hardly any capital growth.

    Distribution yield

    ASX shares are known for being generous dividend payers. Vanguard Australian Share ETF has a distribution yield of 4.1% according to Vanguard, not including the franking credits, which would make the grossed-up yield above 5%.

    That’s a solid yield considering the official RBA interest rate is just 0.25%. I’d rather receive dividends than get a tiny amount of interest from the bank account.

    Is Vanguard Australian Share ETF a buy?

    If you want a passive way to invest into ASX shares then I think this could be one of the simplest ways to do it. It’s a good way to almost match (less fees) what the ASX 300 index does. ASX shares have performed well over the decades.

    However, I think there are plenty of diversified investment options that could offer better long-term growth. ASX banks like CBA, which are a big part of the index right now, offer little compound growth potential in my opinion, however I think an ETF like BetaShares Global Quality Leaders ETF (ASX: QLTY) could deliver long-term growth with the types of businesses that it’s invested in.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    See The 5 Stocks

    *Returns as of June 30th

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    Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO, Transurban Group, 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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  • I’d take these 3 steps to get ready for another stock market crash

    man bending over to look at red arrow crashing down through the ground

    man bending over to look at red arrow crashing down through the groundman bending over to look at red arrow crashing down through the ground

    The recent stock market crash may have been followed by rapidly-improving investor sentiment, but a number of risks continue to face the world economy. For example, geopolitical tensions in Europe and the US, as well as continued growth in the number of coronavirus cases, could cause investor sentiment to weaken in the coming months.

    As such, investors may wish to hold some cash so they can take advantage of buying opportunities. Through identifying the most attractive stocks available today, as well as reassessing your portfolio holdings, you may be able to build a solid portfolio of stocks for the long term.

    Cash holdings

    Having cash available to invest during a market crash can put any investor in an advantageous position. They may be better able to capitalise on low valuations that may prove to be temporary in nature.

    As such, having some cash within your portfolio at the present time could be a shrewd move. As mentioned, a number of risks continue to face investors that could lead to a decline in stock prices. This could mean that avoiding being fully invested in shares provides the capacity to take advantage of buying opportunities, as well as peace of mind.

    Clearly, holding cash for the long term is unlikely to produce desirable returns. However, having it on hand during periods of market volatility, and with the prospect of a second market crash on the horizon, may be a logical move.

    Identifying attractive stocks ahead of a market crash

    As was the case in the recent market crash, share prices can quickly rebound after a decline. This means that long-term investors may only have a short window of opportunity to take advantage of undervalued opportunities.

    Therefore, identifying the stocks you are positive about prior to a decline for the stock market could be a sound move. It may enable you to react more quickly to a fall in share prices, since you are likely to know which companies in specific sectors may be worth buying when their prices include wide margins of safety.

    Assessing your portfolio holdings

    Similarly, assessing your portfolio holdings prior to a market crash could be a sound move. For many stocks, their outlooks have changed dramatically since the start of the year. As such, their investment appeal may have altered materially, which could mean that now is the right time to sell them in order to provide the opportunity to reinvest in stronger businesses should they trade at more attractive prices.

    Of course, this does not mean that you should avoid a buy-and-hold strategy. Over time, the stock market is likely to recover from any future market crash. But by holding the most attractive stocks from a risk/reward standpoint, you can generate high returns in the long run.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    See The 5 Stocks

    *Returns as of June 30th

    More reading

    Motley Fool contributor Peter Stephens 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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  • Kodak’s $765 Million Government Loan on Hold Pending Probe

    Kodak’s $765 Million Government Loan on Hold Pending Probe(Bloomberg) — The federal agency that announced a $765 million loan to Eastman Kodak Co. less than two weeks ago said the offer is on hold pending probes into allegations of wrongdoing.“Recent allegations of wrongdoing raise serious concerns,” the U.S. International Development Finance Corporation said in a tweet Friday night. “We will not proceed any further unless these allegations are cleared.” Congress and the Securities and Exchange Commission are investigating the deal, and Kodak’s board said Friday it is also opening a review of the loan disclosure.The development bank loan announced July 28 was the first of its kind under the Defense Production Act in collaboration with the U.S. Department of Defense. It was intended to speed production of drugs in short supply and those considered critical to treat Covid-19, including hydroxychloroquine, the controversial antimalarial drug touted by President Donald Trump.The president, along with New York Governor Andrew Cuomo and White House aide Peter Navarro pitched the loan as a way to rebuild America’s pharmaceutical manufacturing infrastructure while restoring a beleaguered Rochester, New York-based camera company.The news sent the stock soaring as much as 2,760%. Quickly, however, the deal received scrutiny. Corporate disclosures showed that Kodak board members had purchased additional shares before the announcement. Analysts questioned whether Kodak was truly equipped for large scale pharmaceutical manufacturing. In an interview with Bloomberg after the deal was announced, the DFC said that they had only signed a “letter of interest” and that the agency was still doing diligence on the deal.A spokesperson for Kodak declined to comment in an email.On Friday the agency tweeted, “We remain committed to working together with other government agencies to address critical shortfalls in America’s pharmaceutical supply chain.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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  • Barron’s Picks And Pans: Berkshire Hathaway, Estee Lauder And More

    Barron's Picks And Pans: Berkshire Hathaway, Estee Lauder And More* This weekend's Barron's cover story discusses how to prepare a portfolio for the upcoming elections. * Other featured articles look at stand-out dividend growth stocks, how to play dual-share stocks and who wins and loses from the shift in moviegoing. * Also, the prospects for Warren Buffet's empire, a cosmetics giant, a pawn shop operator and more.Cover story "2020 Election: How to Prepare Your Portfolio" by Lisa Beilfuss explains what three potential election outcomes could mean for stocks from Exxon Mobil Corporation (NYSE: XOM) to Tesla Inc(NASDAQ: TSLA) and for industry sectors and the U.S. economy.Ben Levisohn's "Walt Disney and the End of Moviegoing" makes a case that Walt Disney Co (NYSE: DIS) releasing "Mulan" via Disney+ may change how we watch movies forever. That's bad news for companies like AMC Entertainment Holdings Inc (NYSE: AMC).In "Estee Lauder Stock Could Shine When the Pandemic Passes," Teresa Rivas shows why leading beauty brands, loyal customers and a push into e-commerce should help Estee Lauder Companies Inc (NYSE: EL) emerge even stronger from the coronavirus crisis.Several other tech giants would love to make a bid, according to "TikTok Is Taking Over. Microsoft Could Grab It for a Song" by Jack Hough. See why Barron's says only Microsoft Corporation (NASDAQ: MSFT) is in a strong position.In Lawrence C. Strauss's "Visa, Apple, and Other Dividend-Growth Stocks Are Standouts," see what sets Apple Inc. (NASDAQ: AAPL) and Visa Inc (NYSE: V) apart from other companies that have hiked dividends in recent months.See also: Why Bezos Selling B In Amazon Shares Is Anything But Earth-Shaking"How to Invest in Lennar and Other Dual-Share Companies at a Discount" by Andrew Bary takes a look at how the high-vote shares of homebuilder Lennar Corporation (NYSE: LEN) a few other companies offer a cheaper way to gain ownership.Berkshire Hathaway Inc. (NYSE: BRK.A) had outsized earnings in the second quarter driven by gains in its equity portfolio, particularly its largest holding. So says Andrew Bary's "Warren Buffett's Berkshire Shows Strong Investment Gains."In "How Pawn Shops Met Their Match in Covid-19," Ben Walsh points out that Barron's was bullish on FirstCash Inc (NASDAQ: FCFS) in February, calling it a good hedge against recession. A lot has changed since, and Barron's takes another look.Also in this week's Barron's: * Biden versus Trump on economic recovery * Biden versus Trump on taxes * Why the job numbers look deceptively good * Making Wall Street more inclusive * A private-equity firm that went on a nursing-home buying spree * The new front in the tech cold war * Betting that the rush into gold is not overAt the time of this writing, the author had no position in the mentioned equities.Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter.See more from Benzinga * Benzinga's Bulls And Bears Of The Week: Apple, Ford, Merck, Uber And More * Notable Insider Buys: AT&T, Kinder Morgan And More * Barron's Picks And Pans: AutoNation, Overstock.com, SPACs And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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  • Does Franco-Nevada (TSE:FNV) Have The Makings Of A Multi-Bagger?

    Does Franco-Nevada (TSE:FNV) Have The Makings Of A Multi-Bagger?What trends should we look for it we want to identify stocks that can multiply in value over the long term? Firstly…

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  • 5 things to watch on the ASX 200 next week

    Broker trading shares relaxing looking at screen

    Broker trading shares relaxing looking at screenBroker trading shares relaxing looking at screen

    Last week was a much better one for the S&P/ASX 200 Index (ASX: XJO). Optimism over a potential coronavirus vaccine led to the benchmark index rising 1.3% over the period to 6,004.8 points.

    There’s another busy week coming up for the ASX 200 next week. Ahead of it, I thought I would take a look to see what we should be watching out for.

    Here are five things to watch next week:

    ASX futures pointing higher.

    The benchmark ASX 200 looks set to start the week on a positive note. According to the latest SPI futures, the ASX 200 is poised to open the week 42 points higher on Monday. This is despite a reasonably subdued finish to the week on Wall Street. On Friday the Dow Jones rose 0.2%, the S&P 500 edged slightly higher, and the Nasdaq index fell 0.9%.

    Commonwealth Bank FY 2020 result.

    The Commonwealth Bank of Australia (ASX: CBA) share price will be in focus on Wednesday when it releases its full year results for FY 2020. According to a note out of Goldman Sachs, its analysts are expecting FY 2020 cash earnings from continued operations (pre-one offs) of $7,815 million. This represents an 8% decline on the prior corresponding period. The broker is forecasting a final dividend of 100 cents per share. Elsewhere, National Australia Bank Ltd (ASX: NAB) is scheduled to release its third quarter update on Friday.

    Telstra result, dividend on watch.

    One of the most eagerly anticipated results of earnings season will be released on Thursday when Telstra Corporation Ltd (ASX: TLS) hands in its report card. Opinion is divided on whether the telco giant will be able to maintain its 16 cents per share fully franked dividend. Goldman Sachs expects this dividend to be maintained. It is despite it forecasting a 22% decline in net profit after tax to $2.4 billion. I agree with Goldman and feel Telstra’s dividend is sustainable from its current cash flows.

    Challenger FY 2020 result.

    The Challenger Ltd (ASX: CGF) share price has been out of form in 2020. Investors will no doubt be hoping that its full year results on Tuesday are the catalyst to getting it heading in the right direction again. The annuities company has provided guidance for normalised net profit before tax at the bottom end of the range of $500 million and $550 million in FY 2020. This compares to $548 million in FY 2019.

    SEEK to release full year results.

    The SEEK Limited (ASX: SEK) share price could be on the move on Wednesday when it releases its full year results. According to a note out of Goldman Sachs, its analysts are expecting revenue growth of 4% to $1,603 million. However, this isn’t expected to flow through to its earnings. Goldman expects a 10% decline in EBITDA to $410 million. This is in line with its guidance. And while the broker suspects SEEK may not provide guidance for FY 2021, it is forecasting FY 2021 EBITDA growth of 16% to $476 million.

    These stocks could rocket in a Post-COVID world (FREE STOCK REPORT)

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

    Find out the names of our 3 Post COVID Stocks – For FREE!

    *Returns as of 6/8/2020

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    Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia owns shares of and has recommended Challenger Limited and Telstra Limited. The Motley Fool Australia has recommended SEEK 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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  • Is Tesla Even In The Auto Industry?

    Is Tesla Even In The Auto Industry?The standard method of determining what industry a company is in is by looking at its underlying business. By that standard, Tesla (NASDAQ:TSLA) is clearly in the auto business.  Virtually all of the company’s revenues and costs are related to building, selling, and servicing automobiles.  But there is another way of checking whether a company is an […]

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  • Mike Khouw’s Alibaba Trade Ahead Of Earnings

    Mike Khouw's Alibaba Trade Ahead Of EarningsOn CNBC's "Options Action," Mike Khouw suggested that investors with a long position in Alibaba Group Holding Ltd – ADR (NYSE: BABA) should consider a less risky alternative going into earnings.Khouw wants to sell the September $235 put for a credit of $8 and buy the September $260/$285 call spread for total cost of $7. With the options structure, he collects a premium of $1. If the stock rallies through $285, Khouw is going to make a profit of $26 or a little over 10% of the current price. If the stock drops below $235, he would have to buy it at $235, but his entry price would be $234 or around 7% below the current price. If the stock doesn't move at all, the $235 strike put and $285 strike call would decay more than $260 call, so it could be possible to collect more than $1, explained Khouw.Tony Zhang likes the stock a lot, but he is concerned about the geopolitical risk, so he would not sell the September $235. He would just buy the September $260/285 call spread for $7.Carter Worth sees a Friday's decline in Alibaba as a weakness to take advantage of. He thinks that Alibaba is a strong stock and he wants to buy it. See more from Benzinga * Cramer Weighs In On Lumber Liquidators, HCA Healthcare And More * Cramer Shares His Thoughts On Virgin Galactic, Fastly And More * 'Fast Money Halftime Report' Picks For July 16: American Air, Sonos And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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  • Barron’s Picks And Pans: Biden, ESG And Reopening Picks

    Barron's Picks And Pans: Biden, ESG And Reopening Picks* This weekend's Barron's cover story profiles 25 top chief executive officers of 2020. * Other featured articles look at the most sustainable companies, winners and losers as COVID cases spike, and Joe Biden picks. * Also, the prospects for a semiconductor leader, a computer hardware giant and more.Cover story "Meet Barron's Top CEOs of 2020" by Jack Hough presents 25 bosses who navigated extraordinary challenges to keep their companies thriving, including Jeff Bezos of Amazon.com, Inc. (NASDAQ: AMZN) and Elon Musk Tesla Inc (NASDAQ: TSLA). See who else made the cut.Evie Liu's "The 100 Most Sustainable Companies That Rank Best on Social Criteria" revisits Barron's annual ESG ranking of the 100 most sustainable companies. See how Adobe Inc (NASDAQ: ADBE), Delta Air Lines, Inc. (NYSE: DAL) and others fared on social issues.In "Three Companies That Place a High Priority on People," Sarah Max examines how Best Buy Co Inc (NYSE: BBY) and Verizon Communications Inc. (NYSE: VZ) recruit and treat their employees.When the likes of Bank of America Corp (NYSE: BAC) CEO Brian Moynihan call for greater social responsibility, the movement has officially left the fringe. So says "Why Big Companies Have Embraced Corporate Responsibility" by Leslie P. Norton.In Avi Salzman's "Investors at Crossroads as Coronavirus Forces Rethinking of Reopenings," see what the surge in COVID cases means for Peloton Interactive Inc (NASDAQ: PTON), Zoom Video Communications Inc (NASDAQ: ZM) and others.See also: Will Amazon Or Netflix Buy A Movie Theater Chain?"How Nvidia Went From Gaming to AI to Riding With Mercedes" by Jack Hough discusses what NVIDIA Corporation (NASDAQ: NVDA) is up to these days that its chief executive calls "the iPhone moment of the car industry."Converting supervoting shares into regular stock would be a bullish option for computer hardware giant Dell Technologies Inc (NYSE: DELL), according to Andrew Bary's "How Dell Stock Can Take Off. A VMware Spinoff Is Just Part of the Answer."In "The Joe Biden Portfolio," Lisa Beilfuss says that with Biden's lead in the polls widening, it's a good time for investors to think about how to position themselves ahead of the election. Is McDonald's Corp (NYSE: MCD) a Biden stock?Also in this week's Barron's: * How to build a values-based portfolio * Whether virtual events are better than the real thing * What is driving big shifts in Russel Index exchange-traded funds * The prospects for bank dividends * Whether a serious pullback is coming for tech stocks * Which retailer Amazon should acquire * Deciding whether to return to work or retire * Whether flying is any safer nowAt the time of this writing, the author had no position in the mentioned equities.Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter.See more from Benzinga * Barron's Picks And Pans: AutoNation, Overstock.com, SPACs And More * Benzinga's Bulls And Bears Of The Week: Apple, Boeing, Facebook And More * Benzinga's Bulls And Bears Of The Week: Apple, Coca-Cola, Twitter And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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  • SSR Mining Reports Second Quarter 2020 Results

    SSR Mining Reports Second Quarter 2020 ResultsVANCOUVER, BC, Aug. 6, 2020 /CNW/ – SSR Mining Inc.

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