When you hear about ‘the share market’ on the news or when scrolling on your phone, it’s likely you will actually be hearing about the movements of the S&P/ASX 200 Index (ASX: XJO).

See, the share market is made up of over 2,000 different companies, all being bought and sold in one marketplace. As such, it’s very difficult to ascertain what the ‘entire market’ is doing by just looking at these thousands of different company names.

How the ASX 200 really works

That’s why the concept of an index is so useful. An index like the ASX 200 is really a collection of a select group of shares, usually those with the highest market capitalisation (or value).

The thinking goes that if we look at how the biggest companies are fairing, we’ll get a good idea of how the market is trading as a whole.

The ASX 200 index does just this by selecting the largest 200 public companies trading on the ASX.

But most indexes, including the ASX 200, don’t treat each company equally but rather adopt a system known as ‘weighting’. Weighting involves giving the larger companies a higher ‘weight’ or value within the index. By doing this, the movements of the largest shares are going to influence the overall index much more than the movements of the smaller companies.

So if we look at the index today, we can see how the largest companies come to dominate. Here’s a table of the top 10 shares within the ASX 200, and how much weight each share has.

All-stars of the ASX

ASX 200 share name	Index weighting (%)
CSL Limited (ASX: CSL)	8.12
Commonwealth Bank of Australia (ASX: CBA)	7.09
BHP Group Ltd (ASX: BHP)	6.57
Westpac Banking Corp (ASX: WBC)	3.72
National Australia Bank Ltd. (ASX: NAB)	3.60
Australia and New Zealand Banking Group Limited (ASX: ANZ)	3.29
Woolworths Group Ltd (ASX: WOW)	2.94
Wesfarmers Ltd (ASX: WES)	2.94
Telstra Corporation Ltd (ASX: TLS)	2.41
Transurban Group (ASX: TCL)	2.40

Table: Author’s own

As you can see, it’s really only the largest few ASX 200 companies that have significantly different weightings to the others in the top 10. As you move further and further down the table, each company’s individual ability to influence the overall index diminishes.

A massive 43% of the power to affect the overall movement of the ASX 200 index resides with these top 10 companies. Therefore, when you hear about the index rising or falling on any one day, it’s usually because a combination of the shares you see above are doing so.

So when you next hear about what the ASX 200 index or ‘ASX shares’ are doing, you’ll know that it’s the movements of the above companies that are really being discussed most of the time.

More reading

• Employees rewarded with $50 million in Woolworths shares and gifts
• ASX shares are in a bull market. What should investors do now?
• Telstra shares and 2 other ASX companies to buy in a low-interest rate world
• Top brokers just upgraded these 3 ASX 200 stocks to buy
• Is the Qantas share price a buy?

Sebastian Bowen owns shares of National Australia Bank Limited and Telstra Limited. 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 Telstra Limited. The Motley Fool Australia owns shares of Transurban Group, Wesfarmers Limited, and Woolworths 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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Woolworths Limited (ASX: WOW) will be rewarding its Australian and New Zealand staff with $50 million in shares and gift cards. Here’s why Woolworths is rewarding its workers and what it could do for the company’s share price.   

Why is Woolworths rewarding its staff?

Earlier this week Woolworths Group CEO, Brad Banducci released a statement announcing the company will reward its employees for their hard work during the bushfires and coronavirus pandemic. Banducci said the reward is in recognition of “extraordinary efforts and contributions during a year of unprecedented challenges.”

The supermarket giant will be rewarding more than 100,000 employees. As part of its rewards system, Woolworths will be giving full-time members up to $750 worth of shares in the company. Part-time members will be allocated shares on a pro-rata basis.  In addition, all Australian full and part-time workers will receive a $250 Woolworths gift card, with casuals to receive a $100 gift card.

Once completed, the share reward program will see Woolworths boast one of Australia’s biggest worker-dominated share registers.

How has Woolworths performed?

The coronavirus pandemic saw staff members inundated as panicked shoppers flocked to buy essential items. The unprecedented surge in demand was reflected in the company’s third-quarter sales results in late April. Woolworths reported its strongest quarterly sales growth through group sales surging more than 10% to $16.5 billion for the quarter.

Woolworths also received a $5 million boost from its stake in subscription-based meal kit provider Marley Spoon AG (ASX: MMM). In 2019, Woolworths invested $30 million in Marley Spoon through a debt and equity transaction. The Marley Spoon share price has since surged as the company enjoyed a boom in demand for at-home meal consumption.

Despite strong sales growth in its supermarket and liquor divisions, Woolworths has also incurred increased costs. According to the company’s management, increased costs for wages, security, supply chain and e-commerce will partially offset sales growth.

Should you buy Woolworths shares?

Many companies on the ASX say they put the well-being of their workers and customers first, however, few put their money where their mouth is. Although, Woolworths is far from perfect. The supermarket giant is in the midst of backpay claims after underpaying 5,700 workers $315 million over the past 10 years. However, despite these issues, I think the rewards program is a great initiative from Woolworths that should see the company win over new suitors.

More reading

• The 10 shares that significantly move the ASX 200 index
• Is the Qantas share price a buy?
• 3 large cap shares beating the ASX 200 this year
• Fund managers have been buying these ASX shares
• Why Coles and Woolworths shares were flat in May

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths 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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ASX shares seem to be in a bull market. What should investors do? The S&P/ASX 200 Index (ASX: XJO) is up another 1% today, it’s back to 6,000 points.

The ASX 200 has risen 32% since 23 March 2020. An incredible run in such a short amount of time. If you’re just thinking ahead to 2030 and beyond then today is probably still a good time to buy shares because plenty of ASX shares are still not back to their February 2020 highs.

The coronavirus is still spreading around the world, particularly in the US and emerging markets like Brazil. ASX shares like BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG) are benefiting from the tough conditions mining environment in South America.

ASX bank shares like Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) are flying higher. The buy now, pay later sector is going nuts – the share prices of Afterpay Ltd (ASX: APT), Zip Co Ltd (ASX: Z1P), Splitit Ltd (ASX: SPT) and Sezzle Inc (ASX: SZL) are soaring.

Australia certainly has done a better job at managing the spread of the infection as well as limiting the worst of the potential economic damage.

But should ASX share investors keep buying or remain patient?

Some investors may have a regular investment plan into an exchange-traded fund (ETF). If that’s the case, I wouldn’t worry too much about delaying your next ASX share investment.

But investors trying to pick the right shares should continue to be cautious and considered. The RBA has reduced the official interest rate to a very low level. But that doesn’t mean businesses are out of the woods yet. Some businesses may never be the same again. The unemployment rate is still much higher than before COVID-19.

I’ve always said that investors should just focus on whether the potential investment is good value (and ignore the rest of the noise). There aren’t many obvious bargains like there were before a couple of months ago.

Hoping that everything will turn out fine over the six months is not an investment strategy. ASX shares that generate most of their earnings in Australia and New Zealand seem to have an easier path out of this. But ASX shares that rely on growth of the economies of China and the US may yet see a wobble later this year.

I’m being more careful with my ASX share buying, but I do intend to keep investing for the long-term.

More reading

• The 10 shares that significantly move the ASX 200 index
• Telstra shares and 2 other ASX companies to buy in a low-interest rate world
• 3 ASX dividend shares with big yields above 9%
• 3 top ETFs you can easily diversify your portfolio with immediately
• Are Megaport shares the ones to buy and hold beyond 2030?

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 AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia has recommended Sezzle Inc. 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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ASX dividend shares like Telstra Corporation Ltd (ASX: TLS) are a valuable asset these days. Even though the Reserve Bank of Australia (RBA) left interest rates on hold this week, we still have rates at record lows.

That means the value of holding cash in the short-to-medium term is negligible and could actually be detrimental to your wealth if you consider the effects of inflation.

That’s why I think ASX shares like those of Rural Funds Group (ASX: RFF), Commonwealth Bank of Australia (ASX: CBA) and Telstra are the best place to put your hard-earned dollars to work if you have a yearning for dividend yield.

Rural Funds shares

Rural Funds is an agriculture-based real estate investment trust (REIT) which owns tranches of Aussie farmland. Productive land is usually a great investment, and so I think Rural Funds is a great business to have some capital go towards.

It currently leases out farmland for several different crops, including macadamias, almonds, cotton, and vineyards. Rural Funds is currently offering a trailing dividend yield of 4.09%, which it aims to increase by 4% annually.

CommBank shares

CommBank isn’t the first ASX dividend share that comes to mind for strong income in 2020. All 3 of the other big 4 ASX banks have delivered substantial dividend cuts in 2020 – or have ‘deferred’ dividend payments altogether. We haven’t yet yeard from CBA on what to expect from its final dividend this year, but it’s almost certain not to come in anywhere near 2019’s level.

Even so, I think this ASX bank is the best of the banking bunch for future dividend potential. It’s unquestionably our strangest bank and will be first in line to benefit from a recovering Australian economy. There might not be much in the way of dividends this year, but I’m far more bullish on 2021 and beyond.

Telstra shares

Telstra is another great dividend share to consider today. This telco giant is the market leader in providing both fixed-line internet services, mobile phones and mobile networks. It’s also set (in my opinion) to become the market leader in the new 5G technology that is set to roll out soon. Internet services are regarded as a ‘need’ rather than a ‘want’ these days – especially with the ‘work from home’ trend we have seen so far in 2020. As such, I view the telco space as very defensive.

The company also has a strong dividend of 16 cents per share that it looks to continue to fund this year. On current prices, that would give Telstra shares a trailing yield of 4.91% – or 7.01% grossed-up with full franking credits.

More reading

• Why I would buy these outstanding ASX 50 shares right now
• Is the CBA share price cheap today?
• 3 high yield ASX dividend shares to buy right now
• ASX 200 jumps 1.8%, Australian headed for recession
• JobMaker is coming. These 3 ASX 200 shares could benefit

Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Telstra 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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There’s no denying that ASX shares are starting to look fully priced. But there’s still value to be found as top brokers have just upgraded three to “buy”.

These ASX stocks are part of the S&P/ASX 200 Index (Index:^AXJO), which is on track to chalk up its fourth straight day of gain this week.

No wonder experts are worried about overstretched valuations as the market jumped 32% since hitting the bear market low in March.

While we may not have seen the worst of the economic impact from the COVID-19 pandemic, brokers don’t think you should wait to buy the following stocks.

The right minerals

The Iluka Resources Limited (ASX: ILU) share price jumped 2.4% to $9.01 in after lunch trade after Goldman Sachs upgraded the mineral sands miner to “buy” from “neutral”.

The broker turned bullish following Iluka’s latest market update on its mineral sands and rare earth project pipeline.

Iluka’s attractive valuation, the upside from its demerger of royalty generating MAC asset, improving mineral sands sales and Goldman’s prediction of a zircon supply deficit in 2021 prompted the upgrade.

The broker’s 12-month price target on the stock is $10.10 a share.

Property bounce back

Another stock that’s outperforming today is the Stockland Corporation Ltd (ASX: SGP) after the federal government announced its $688 million HomeBuilder stimulus and Morgan Stanley upgraded the stock.

But the government’s stimulus is only one reason why the broker lifted its recommendation on Stockland to “overweight” from “equal-weight”.

The proposed change to stamp duty and property tax and a faster than expected reopening of retail outlets in malls owned by Stockland are additional factors behind the upgrade.

The broker increased its price target on the stock to $4.30 from $3.10 a share.

On a recovery path

The aluminium-alumina market has been hit by the coronavirus shutdown but the gradual reopening of the global economy is set to drive prices for the commodity higher, according to UBS.

The expected turnaround prompted the broker to upgrade its recommendation on Alumina Limited (ASX: AWC) to “buy” from “neutral”.

This could explain why the Alumina share price jumped 2.9% to $1.69 in late afternoon trade.

“We estimate that ~50% of the alumina industry is loss making at today’s spot price of US$250/t,” said the broker.

“This is unsustainable on a medium- to long-term basis and with costs rising (caustic soda and energy), we believe cost push should support a higher alumina price.”

UBS increased its 12-month price target on the stock to $2.10 from $1.50 a share.

More reading

• Is the Qantas share price a buy?
• 3 large cap shares beating the ASX 200 this year
• Why the Nufarm share price is crashing lower today
• Should you be an ASX bull or bear right now?
• Top brokers name 3 ASX 200 shares to sell today

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High yield ASX dividend shares could be the answer to generate income in this difficult environment.

The Reserve Bank of Australia (RBA) has pushed the official interest down to an extremely low level. How are people supposed to make an income from their assets?

Not only do savings accounts now offer a tiny interest rate, but many income shares have seen their yields compressed in the past few years (and weeks).

The difficulty is that the income is even less certain now with the ongoing global coronavirus pandemic. I think high yield ASX dividend shares could be the answer. 

With that in mind, there are some ASX dividend shares with yields above 9%:

WAM Research Limited (ASX: WAX)

WAM Research is a listed investment company (LIC) which is run by the high performing team at Wilson Asset Management.

This ASX dividend share has a grossed-up dividend yield of 9.7%. It has also grown its dividend every year since the GFC. That’s an attractive combination for income. Of course, the profit reserve could run out if the LIC doesn’t keep generating profits whilst paying these big dividends.

It makes money by identifying the best small and medium businesses on the ASX where there’s a catalyst that could re-rate the share price. It can then fund the dividend from the investment returns.

I also like that the LIC holds a high amount of cash for protection and opportunities during times like this.

Naos Emerging Opportunities Company Ltd (ASX: NCC)

This one is another LIC. It is another high yield ASX dividend share. It currently has a grossed-up dividend yield of 12.8%.

The Naos LIC only invests in businesses with a market capitalisation under $250 million.

Naos does things pretty differently to many other fund managers. It holds a portfolio of only around 10 high-conviction share ideas.

Over time these small cap shares can grow into much bigger businesses and also start paying dividends.

It has grown or maintained its dividend every year since it started paying one in FY13. It’s building its status as a solid ASX dividend share.

Fortescue Metals Group Limited (ASX: FMG)

Fortescue is one of Australia’s largest iron ore miners. When times are good for iron ore it is able to fund very large dividends.

Before the coronavirus pandemic the iron ore price was at a good level. But things are looking pretty tough in Brazil with the spread of COVID-19. That’s where Australia’s main iron ore competition comes from. The iron ore price has risen even more in the past few months.

This should mean that the ASX dividend share is able to continue paying its big dividend as long as China and an upcoming court case don’t derail the rosy picture.

Fortescue currently has a grossed-up dividend yield of 9.8%

Foolish takeaway

Each of these ASX dividend shares have big yields with a high chance of paying a big dividends over the next 12 months. At the current prices I’d probably go for the Naos one because its yield is the biggest and its share price hasn’t grown strongly in the past couple of months.

More reading

• Should the Xero share price have a P/E ratio of 4,000?
• Are our ASX big miners on an earnings upgrade cycle?
• These ASX shares were among the best performers in May, surpassing the ASX 200
• These ASX shares just zoomed to multi-year highs
• Why you might want to own ASX mining shares in 2020

Motley Fool contributor Tristan Harrison 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 FBR Ltd (ASX: FBR) share price has been a standout performer on the market today – so much so that it attracted a speeding ticket from the ASX.

FBR, also known as Fastbrick Robotics, designs, develops, builds and operates dynamically stabilised robots to address global needs. Using its proprietary technology, the company is in the process of commercialising products for the construction sector, along with technology-enabled solutions for other industries.

What’s going on?

This morning, FBR was issued a ‘please explain’ from the ASX after shares skyrocketed from yesterday’s closing price of 2.9 cents to an intra-day high of 10.5 cents – a mammoth 262% jump. The ASX also noted a significant increase in the trading volume of FBR shares.

While there was no news out of FBR today, the company made an announcement prior to market open yesterday regarding its flagship Hadrian X construction robot.

In response to the ASX’s price and volume query, FBR stated it is not aware of any information that hasn’t been announced to the market which could explain the recent trading in its shares.

Responding further, FBR said:

“Following FBR’s announcement to the ASX on Wednesday, 3rd June 2020 that it had reached a new top laying rate of 200 blocks per hour with its Hadrian X construction robot, FBR received widespread media coverage on tv news, print and radio. The release of the announcement resulted in an increase in share price of 32% yesterday, and FBR believes that the increased media attention subsequently has contributed to the trading activities today.”

Additionally, FBR drew attention to the government’s HomeBuilder residential construction stimulus package which was announced prior to market open this morning.

In any case, FBR considers yesterday’s announcement as a major milestone in the commercialisation journey of the Hadrian X. It was the first time the company had been able to prove the real commercial case of the Hadrian X in practice.

“When you consider that manual brick and block laying costs globally vary anywhere from $10 per square metre to $100 per square metre, we are already cost competitive across a broad range of the market at 200 blocks per hour,” said CEO Mike Pivac.

At the time of writing, FBR shares are sitting 124.14% higher for the day at 6.5 cents per share. This takes the company’s current market capitalisation to $116 million. For context, the FBR share price closed last week at 2.2 cents with a market cap of around $40 million.

More reading

• Telstra shares and 2 other ASX companies to buy in a low-interest rate world
• Top brokers just upgraded these 3 ASX 200 stocks to buy
• 3 ASX dividend shares with big yields above 9%
• Why the Alliance Airlines’ share price is surging higher
• Is the Qantas share price a buy?

Motley Fool contributor Cathryn Goh 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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Alliance Aviation Services Ltd (ASX: AQZ) will fly from Brisbane to Proserpine four times a week. The Queensland state government announced the deal in an effort to revive tourism in the area. There is also the option to increase daily flights if warranted by demand.

QLD Premier, Annastacia Palaszczuk said: “Tourism supports one in three jobs in the Whitsundays. We know how crucial this industry is to the livelihoods of people in this region.”

These flights can be booked from today and will begin on 22 June.

Whitsunday Coast Airport COO, Craig Turner said, “These flights present the opportunity for WCA to develop a partnership with Alliance Airlines through this challenging period and beyond.”

Alliance Airlines, the nation’s workhorse

The move further cements Alliance Airlines as a reliable travel partner. The company’s core offering is fly-in-fly-out services for resource projects across the country. These flights increased during the coronavirus pandemic to maintain social distancing. 

The swift and agile approach from the company allowed them to not only increase flights but to also win new resource clients during the pandemic. On 20 March the company also reported a large increase in charter revenue, driven by both social distancing and the lack of operating alternatives. 

The company is one of the unsung heroes of the COVID-19 period through its support of resource projects. In a recent market update, Alliance provided guidance of a likely $40 million dollar profit.

This is in stark contrast to small airline competitor, Regional Express Holdings Ltd (ASX: REX) who entered the pandemic demanding money from state governments of Western Australia and Queensland. 

Year-to-date performance

With a share price that is up by 8.7% year-to-date, Alliance Airlines has outperformed the aviation sector. It has a price-to-earnings ratio (P/E) that is 4 points higher than its 8-year average. In 2019, Qantas Airways Limited (ASX: QAN) took a 19.9% interest in Alliance, make it the airlines largest shareholder. 

This acquisition is currently under investigation by the ACCC. They have raised issues about purchasing such a large stake in an “important and growing competitor”. I agree fully with this as the airline’s strength has come from its independence and agility.

Foolish takeaway

Alliance Airlines is continuing to win both work and favour across the country, it has been a rock-solid partner for the resources sector throughout the pandemic. I believe its ability to deliver continued service has set up this organisation for sustained incremental performance. 

More reading

• Is the Qantas share price a buy?
• Why Afterpay, Infigen, Qantas, & Zip Co shares are charging higher
• ASX 200 up 0.6%: NAB charges higher, ACCC investigates Qantas acquisition
• Why the price of these ASX travel shares soared over 30% since mid-May
• Qantas share price lower on ACCC investigation

Motley Fool contributor Daryl Mather 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 Qantas Airways Limited (ASX: QAN) share price has fallen nearly 38% since the start of the year. Unsurprisingly, this is predominantly due to the COVID-19 pandemic and the resulting restrictions on air travel.

However, Qantas shares have soared 117% from their March lows. This performance exceeds the recovery of the S&P/ASX200 index (ASX:XJO) which has rebounded around 35% since its lowest point.

Let’s first look at two reasons the Qantas share price may still offer compelling value at today’s price of $4.42. Then, we’ll consider what Qantas CEO, Alan Joyce, had to say about the company’s outlook. 

Reason 1: strong brand name

According to Airline Ratings, Qantas has been named the safest airline in the world for 2020. I think it’s fair to say that when travelling by plane, passengers value their safety above everything else. A reputation for absolute safety could definitely be seen as a ‘moat’ or competitive advantage for Qantas. As restrictions continue to ease and plane travel resumes, it’s possible passengers will be prepared to pay a premium for safety. This could be good news for the Qantas share price.

In an ASX media release on 5 May, Qantas reported that is Frequent Flyer program has continued to perform well during the pandemic. The program has enabled some revenues to keep flowing from partnerships with companies such as Woolworths Group Ltd (ASX: WOW).

Also, a survey of Qantas Frequent Flyer members showed 85% were planning to fly as soon as conditions returned to normal. This is another positive sign for the Qantas share price.

Reason 2: strong financial position 

Qantas has secured a further $550 million in debt funding to help it survive the coronavirus crisis.  This was facilitated by borrowing against three of its wholly-owned Boeing 787-9 aircraft. Likewise, $1.05 billion was raised in March against seven 787-9 aircraft. Pleasingly, the group has no significant debt maturities until June 2021. 

In addition, Qantas has sufficient liquidity to continue operating under current conditions until at least December 2021.

As of 4 May 2020, Qantas had short-term liquidity of $3.5 billion which includes a $1 billion undrawn facility. The group expects a cash burn rate of $40 million per week by the end of this month.  

Fuel is a significant expense for airlines and the strategy Qantas takes to keep its fuel costs under control is hedging. Essentially, hedging helps minimise the risk and uncertainty created by oil price fluctuations. 

Unfortunately, as demand for travel significantly declined, the group experienced hedging losses due to the drop in oil prices. These losses, together with the impact of foreign exchange, will result in a $145 million cash outflow by the end of September.

Nevertheless, the Aussie airline stated that there will be no risk of further hedging losses. This should assist the company to retain its strong cash position and help boost the chances of continued growth in the Qantas share price. 

CEO comments

On a further positive note, Qantas Group CEO Alan Joyce said in the 5 May media release:

“Our cash balance shows that we’re in a very strong position, which under the circumstances we absolutely have to be. We don’t know how long domestic and international travel restrictions will last or what demand will look like as they’re gradually lifted.

Our ability to withstand this crisis and its aftermath is only possible because we’re tapping into a balance sheet that has taken years to build”.

Foolish takeaway

Qantas has a reputation of being the safest airline in the world as reinforced by its rating for 2020. Furthermore, the company’s financial position is strong considering the current circumstances. As such, I feel the current Qantas share price may present a buying opportunity. Whilst uncertainty still remains surrounding demand once restrictions ease, an indication that 85% of Qantas Frequent Flyer members will fly once they are permitted to is positive in my view.

More reading

• Alliance Airlines continuing to surge
• 3 large cap shares beating the ASX 200 this year
• Why the Nufarm share price is crashing lower today
• Should you be an ASX bull or bear right now?
• Top brokers name 3 ASX 200 shares to sell today

Motley Fool contributor Matthew Donald has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths 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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If you don’t have enough funds to build a truly diverse portfolio, a quick way to add some diversity is with exchange traded funds (ETFs).

Through just a single investment, ETFs give investors exposure to whole indices, industries, and even themes.

There are a large number of ETFs for investors to choose from, but three that I rate highly right now are listed below. Here’s why I like them:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

I think the BetaShares Asia Technology Tigers ETF would be a great option for investors. This exchange traded fund provides investors with exposure to a number of exciting tech shares in the Asian market. These include the likes of ecommerce giant Alibaba, search engine company Baidu, and new Afterpay Ltd (ASX: APT) shareholder and WeChat owner, Tencent. These companies are revolutionising the lives of billions of people in the region and look very well-positioned to profit from it over the next decade.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another option you can use to diversify is the BetaShares NASDAQ 100 ETF. It provides investors with exposure to the 100 largest non-financial shares on the NASDAQ index. This includes giants such as Amazon, Facebook, Microsoft, and Starbucks. I believe many of these companies have the potential to grow at a quicker rate than the global economy over the next decade. This could lead to the BetaShares NASDAQ 100 ETF providing stronger returns than the ASX 200 for the foreseeable future.

iShares Global Healthcare ETF (ASX: IXJ)

Another option for investors to consider is the iShares Global Healthcare ETF. I believe it could be a quality option for investors due to the increasing demand for healthcare services globally. This exchange traded fund provides exposure to companies across a range of sectors including biotechnology, pharmaceutical, and medical devices. This includes many of the world’s biggest healthcare companies such as CSL Ltd (ASX: CSL), Johnson & Johnson, Novartis, and Pfizer.

More reading

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• 3 of the best ASX shares to buy with $3,000 right now

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and CSL Ltd. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS and BetaShares Asia Technology Tigers ETF. 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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