If you’re aiming to diversify your portfolio and optimism your future returns, then I think exchange traded funds could be worth considering.

Three exchange traded funds that I believe have the potential to provide strong returns for investors over the next decade are listed below. Here’s why I like them:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

If you were to buy just one exchange traded fund, I would recommend you pick the BetaShares NASDAQ 100 ETF. This is because this fund gives investors access to the 100 shares that are trading on the famous NASDAQ 100 index. These include many of the biggest and brightest companies in the world such as Amazon, Apple, Facebook, Microsoft, Netflix, and Google parent, Alphabet. It is also worth noting that the fund has no exposure to the financial sector, which could make it ideal for investors that are invested heavily in the big four banks.

VanEck Vectors Australian Banks ETF (ASX: MVB)

But if you don’t have any exposure to the big four banks, and want some, then you might want to consider the VanEck Vectors Australian Banks ETF. I think this exchange traded fund is great for investors that want exposure to the sector but aren’t sure which of the banks to buy. This is because this fund gives investors access to all of the big four, the regional banks, and investment bank Macquarie Group Ltd (ASX: MQG) through a single investment.

VanEck Vectors China New Economy ETF (ASX: CNEW)

A final exchange traded fund to consider buying is the VanEck Vectors China New Economy ETF. This fund gives investors access to a portfolio of companies in China which have outstanding growth prospects. The companies are in sectors which are making up “the New Economy.”  This includes the technology, health care, consumer staples, and consumer discretionary sectors. The VanEck Vectors China New Economy ETF is invested in 120 companies, which it believes represent growth at a reasonable price.  

More reading

• Here’s why the OZ Minerals share price rocketed 24% in July
• ASX 200 Weekly Wrap: Surging commodity prices snap ASX 200’s losing streak
• 3 quality ASX shares for a beginner’s share portfolio
• With global share markets soaring, here’s why it’s still a good time to buy ASX shares
• The latest ASX stocks to be hit by broker downgrades today

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. 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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The Metalstech Ltd (ASX: MTC) share price rose 9.52% to 23 cents today after the company released a presentation to be given at the NWR Virtual Small Caps Conference.

What was in the presentation

The company outlined that its gold resources are over 1 million ounces with 76% measured and indicated. Metalstech identified that, when comparing its market capitalisation to resource ounces, its resources were valued at $24 per ounce.

Metalstech’s Sturec mine was highlighted with the company advising 1.5 million ounces of gold and 6.7 million ounces of silver had been historically produced there. 

In 2012, the Joint Ore Reserves Committee found that the Sturec gold mine had a resource of 21.2 million tonnes at 1.50 grams per tonne of gold and 11.6 grams per tonne of silver. Metalstech also stated that there was significant resource expansion potential.

The company is currently drilling at its Sturec site with assay results expected intermittently over the next three months.

About the Metalstech share price

Metalstech is a resources exploration development company with projects in Slovakia and Canada. Currently, the company is focused on its Sturec gold resource in Slovakia. Metaltech is listed on the ASX and the Paris Stock Exchange.

In the quarter to 30 June 2020, Metalstech used $495,000 of cash for operating activities. It had $1,017,000 cash at 30 June, up from $587,000 at the end of the previous quarter.

The company outlined its 2021 mineral resource estimate for Sturec in its June 2020 quarterly report which matched the estimates from today’s presentation. However, it also included an estimated 388,000 tonnes at 3.45 grams per tonne gold and 21.6 grams per tonne silver.

In a recent drilling update, Metalstech announced that it had identified a very prospective zone of intense quartz stockwork from 182.5 metres to 185.4 metres.

The Metalstech share price is up more than 1800% since its 52 week low of 1.2 cents, it has returned 475% since the beginning of the year. The Metalstech share price is up 1050% since this time last year.

More reading

• Why the Metalstech share price is up 10% today

Motley Fool contributor Chris Chitty 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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It’s been a tough year for ASX dividend investors so far in 2020. Former income heavyweights like Transurban Group (ASX: TCL) and National Australia Bank Ltd (ASX: NAB) have substantially slashed their payouts.

Other popular dividend shares like Westpac Banking Corp (ASX: WBC), Scentre Group (ASX: SCG) and Australia and New Zealand Banking GrpLtd (ASX: ANZ) have ‘deferred’ or cancelled their dividends entirely.

The coronavirus crisis has affected most sectors of the economy. This, in turn, has led to a wide range of dividend shares unable to provide income for their shareholders in 2020.

But one of the consequences of the pandemic for this writer has been a newfound appreciation of the consumer staples sector. So much so that I think it is a grave mistake for any ASX dividend investor not to have significant exposure to it going forward.

What are consumer staples shares?

Consumer staples describe the range of products that are ‘staples’ of modern living. In other words, the kinds of goods and services we simply can’t live without. Food and drinks are the first things that come to mind. But consumer staples also include household essentials like dishwashing liquid, toothpaste, razors, laundry detergent and toilet paper (you can probably gather where I’m going with this).

I think we can all agree that one of the most striking and confronting moments of the coronavirus pandemic was seeing the bare supermarket shelves of our local supermarkets. Seeing the value that all Australians were placing on owning enough consumer staples products highlights their importance in our lives. As Joni Mitchell once sang, “Don’t it always seem to go, you don’t know what you’ve got ’til it’s gone”. I reckon we all felt that way when seeing those bare shelves.

Casting aside the unsavoury social aspects of panic buying, I think the pandemic has proved that dividend investors should ignore consumer staples shares for their income portfolios at their peril.

Choosing dividend shares in a post-COVID world

So it’s one thing saying ‘we should invest in the necessities of life’ and another thing finding good companies with which to do so. You can always start with the giants of the Australian grocery scene, Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL). With trailing dividend yields of 2.57% and 2.2% respectively, these companies are nothing to write home about on current pricing. But a 2.2% yield is a lot better than what Westpac is offering right now.

You could also consider Metcash Limited (ASX: MTS) – the owner of the IGA chain of ‘independent grocers’. Metcash may not be as dominant as Coles or Woolies. But it does offer a higher trailing dividend yield of 4.24% in compensation.

Another option to consider is the iShares Global Consumer Staples ETF (ASX: IXI). This exchange-traded fund (EFT) holds a basket of consumer staples shares from around the world. Its holdings include Procter & Gamble (owner of the Gillette and Oral-B brands), Nestle, Coca-Cola, PepsiCo, Colgate-Palmolive and Walmart.

Foolish takeaway

Consumer staples companies may not offer the best dividend yields on the market. But in this uncertain world, I think any dividend investor out there ignores these ‘essential’ companies at their own detriment. As such, I think all dividend investors should consider their own allocation to consumer staples shares today.

More reading

• Why Afterpay, Challenger, IVE Group, & Mesoblast shares are dropping lower
• Why the Wesfarmers share price is too expensive
• Investing 101: Humility > Arrogance
• Why Adairs, Coles, Kogan, & Tyro shares are storming higher
• These were last week’s best performing ASX shares

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited and PepsiCo. The Motley Fool Australia owns shares of COLESGROUP DEF SET, iShares Global Consumer Staples ETF, Transurban Group, and Woolworths Limited. The Motley Fool Australia has recommended Scentre Group. 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 an investor that wants safe income? I think there are some ASX dividend shares that can provide reliable income.

Nothing in the share market is guaranteed – it’s not like a term deposit. Share prices can be very volatile. The share market is made up of different buyers and sellers every day. It’s not surprising that share prices move around so much.

Dividend income from ASX shares is a bit different. The boards of companies have a lot of control over what dividend they declare each year. Dividends are much more likely to follow the longer-term direction of the business’ profit.

With that in mind, here are three ASX shares that could offer safe income:

Share 1: APA Group (ASX: APA)

APA is an infrastructure giant which owns a large amount of gas pipelines around Australia. It supplies around half of the country’s natural gas. APA also owns, or has stakes in, a number of energy generation or energy storage assets.

Gas demand has held up well for APA during this difficult period. Resilient demand has meant robust for APA’s cashflow. The business funds its distribution from the annual cashflow, so it was able to pay the expected FY20 annual distribution of 50 cents per unit.

At the current APA share price, that distribution amounts to a yield of 4.35%. I think that APA is a reliable ASX share for dividend income because it already has a solid track record. It has increased its distribution every year for the past decade and a half. It can keep growing as the annual cashflow keeps growing with more projects or investments coming online.

Share 2: Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

I think that Soul Patts is the gold standard for reliable dividend income.

The ASX share has grown its dividend every year since 2000. It has also paid a dividend every year since it listed in 1903. The dividend has kept coming through wars and recessions.

Soul Patts is an investment house with a diversified portfolio of assets like TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW) and Clover Corporation Limited (ASX: CLV). It also operates unlisted businesses like swimming schools, resources and agriculture.

Each year the company receives investment income from its assets, Soul Patts pays its expenses from this income and then pays out the dividend with a substantial portion of the rest. In FY19 it retained around 20% of the net regular operating cashflow, allowing it to re-invest that money into other opportunities.

Soul Patts’ dividend can keep growing from this re-investing as well as growth from its existing holdings.

At the current Soul Patts share price it offers a grossed-up dividend yield of 4.2%.

Share 3: Rural Funds Group (ASX: RFF)

There are few ASX shares with the income potential of Rural Funds in my opinion. I think it offers a good combination of a solid starting yield as well as ongoing growth.

At the current Rural Funds share price it has a FY21 distribution yield of 5.3%. The farmland real estate investment trust (REIT) is aiming for distribution growth of 4% per annum.

REITs are known for having good yields, and Rural Funds has a smart investment strategy. It owns farms with long-term income growth potential such as cattle and almonds.

Its contracted rental income grows by either a fixed 2.5% increase per annum or it’s linked to CPI inflation, plus market reviews.

The REIT also is growing its rental income by investing in productivity improvements at farms. At the moment it’s focusing on investing at its cattle farms.

Foolish takeaway

Each of these ASX shares have grown their dividends to shareholders for multiple years in a row. I think that record could continue in FY21 and perhaps for the rest of the decade. Soul Patts is my favourite ASX share idea for reliable dividend income because it’s diversified and it can shift its portfolio over time.

More reading

• 3 quality ASX shares to buy in August
• Beat low interest rates with these ASX dividend shares
• Got $3,000 to invest? Try these 2 dirt-cheap ASX shares
• Cash rate on hold until after 2022? Buy these ASX dividend shares
• 2 ASX shares I plan to hold until I’m 100

Tristan Harrison owns shares of RURALFUNDS STAPLED and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Clover Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, RURALFUNDS STAPLED, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of APA Group. 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’re looking to add some dividend shares to your portfolio in August, then the two listed below could be great options.

I believe both are well-placed to continue growing their dividends over the coming years despite the tough economic environment. Here’s why I think they are among the best on offer right now:

BWP Trust (ASX: BWP)

The first ASX dividend share to consider buying is BWP. It is a real estate investment trust that invests in and manages commercial assets. These assets tend to be large format retail properties, which are predominantly leased to home improvement giant, Bunnings Warehouse. At the end of FY 2020, its weighted average lease expiry (WALE) stood at 4 years, with 98% of its portfolio leased.

And while this isn’t the longest WALE you’ll find on the ASX, I don’t see Bunnings moving to other properties in a hurry. Especially given how Bunnings is owned by Wesfarmers Ltd (ASX: WES), which also owns ~23.6% of BWP. All in all, I believe BWP is well-placed to grow its income and distribution at a modest and predictable rate over the next decade. Based on this and the current BWP share price, I estimate that it offers a forward 4.6% yield.

Dicker Data Ltd (ASX: DDR)

Another ASX dividend share to consider buying in August is Dicker Data. It is a wholesale distributor of computer hardware and software which has grown its earnings and dividends at a consistently solid rate for many years.

The good news is that this positive trend is continuing in 2020 despite the pandemic. Dicker Data recently released a first half update which revealed very strong profit growth. As a result, management advised that it plans to lift its full year dividend by 31% to 35.5 cents per share. This represents a very attractive 4.7% fully franked dividend yield.

More reading

• Why the Wesfarmers share price is too expensive
• Why I would buy Goodman Group and these blue chip ASX shares
• Are ASX retail shares buys right now?
• Kogan share price in spotlight after it releases new profit update
• ASX 200 Weekly Wrap: Surging commodity prices snap ASX 200’s losing streak

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of 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 Domino’s Pizza Enterprises Ltd (ASX: DMP) share price has been an exceptionally strong performer in 2020.

The pizza chain operator’s shares have ignored the market volatility and zoomed an incredible 42% higher since the start of the year.

This means the Domino’s share price is trading within touching distance of its record high ahead of its full year results for FY 2020 on 19 August.

What is Domino’s expected to deliver in FY 2020?

Ahead of its results release, I thought I would take a look to see what the market expects Domino’s to deliver along with its pizzas in FY 2020.

According to a note out of Goldman Sachs, its analysts have increased their estimates to reflect stronger than expected updates from a number of its global peers.

Goldman Sachs is forecasting same store sales (SSS) growth of 4.5% for FY 2020, leading to total sales of $1,969.3 million. This comprises total ANZ sales of $717.4 million, Europe sales of $618.3 million, and Japan sales of $633.6 million.

It then expects this to lead to earnings before interest, tax, depreciation, and amortisation (EBITDA) of $310.8 million. This will be a 10.1% increase on the prior corresponding period.

And on the bottom line, Goldman has forecast net profit after tax of $152.4 million, which will be a 7.9% increase on the prior corresponding period. This is a touch short of the consensus estimate of $155.1 million.

The broker also expects Domino’s to grow its final dividend. It has forecast a 9.8% increase to 58 cents per share, with 75% franking.

How will its segments perform?

Goldman Sachs expects its ANZ segment to deliver 3% SSS growth in FY 2020, leading to EBITDA of $136 million. It estimates that there will be 832 stores in the ANZ market at the end of the period.

Even stronger growth is expected in Europe, with the broker forecasting SSS growth of 4.5%. It expects its 1,160 stores in the region to contribute $91.2 million in EBITDA. And in Japan, it has forecast a 7% increase in SSS, resulting in EBITDA of $96.4 million for the year.

Finally, corporate costs are expected to be $13 million for the year.

Should you invest?

I think Domino’s shares are arguably fully valued now. However, I still believe they could be a great option for investors that are looking for long term options. This is due to its bold store expansion and SSS targets over the coming years. Though, given how close its results release is, it might be prudent to wait until after that before investing.

More reading

• Will the Domino’s share price continue to surge in August?
• Why I would buy NEXTDC and these stellar ASX growth shares
• Why the Domino’s share price has my attention
• Top brokers name 3 ASX shares to sell today
• a2 Milk and 1 other quality ASX 200 share to buy and hold beyond 2026

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Domino’s Pizza Enterprises 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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Australian copper miner OZ Minerals Limited‘s (ASX: OZL) share price rocketed 24.3% in July. Over that same time, the S&P/ASX 200 Index (ASX: XJO) gained a meagre 0.5%.

OZ Minerals wasn’t spared from the COVID-19-driven market rout that savaged most ASX shares. From 21 February through 23 March, the OZ Minerals share price plunged a gut-wrenching 40%.

Since then, it’s been uphill all the way for the copper miner. By the end of the trading day on 31 July, the share price had gained a whopping 128% from it 23 March low.

Year-to-date, OZ Minerals share price is up 35.3%. The current price of $14.34 per share gives the company a market cap of $4.6 billion.

What does OZ Minerals do?

Based in South Australia, OZ Minerals is mining company primarily focused on copper. It owns and operates the high-quality Prominent Hill copper-gold mine and the Carrapateena advanced exploration copper-gold project. Both sites are located in South Australia.

The company had $15 million in net cash (unaudited) at 30 June and had a $480 million revolving credit facility.

What fuelled the OZ Minerals share price rise in July?

OZ Minerals has clearly benefited from the rising price of copper, its primary focus. During July, the price of copper went from US$6,015 per dry metric tonne to US$6,413, an increase of 6.6%. It’s also worth noting that the price of copper gained 39% from its 24 March low through 31 July.

Topping off the big gains in copper for OZ Minerals mines, July kicked off nicely for the company when JP Morgan upgraded the company from “neutral” to “overweight”. That came after the big name broker re-evaluated its initial value ascribed to OZ Minerals’ Carrapateena block cave project, with both ore grades and the mine life upgraded.

JP Morgan put its 12-month target for the OZ Minerals share price at $12.80 a share. In late afternoon trading today, the miner was trading at $14.34 per share.

A second top broker, Macquarie Group Ltd (ASX: MQG) named OZ Minerals as one of its “counter consensus calls“, believing the miner’s financial year 2020 earnings per share estimates will come in higher than consensus forecasts.

This was borne out by OZ Minerals’ quarterly report, released on 22 July. The company raised its financial year 2020 production guidance from 83,000-100,000 tonnes of copper to 88,000-105,000 tonnes. If that holds true, the OZ Minerals share price could have further to run.

More reading

• These record breaking ASX stocks just got downgraded by top brokers
• Has the ASX 200 finally taken off?
• ASX 200 up 1%: Challenger disappoints, Sydney Airport to raise $2bn, a2 Milk names new CEO
• ASX iron ore miners jump on broker upgrades
• 3 tips for beginners investing in ASX shares

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group 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 market continues to power ahead on a better than expected start to the reporting season, but valuations for some ASX stocks are getting hard to justify.

The S&P/ASX 200 Index (Index:^AXJO) jumped 0.5% in after lunch trade with most sectors making gains.

But brokers warn that some stocks are starting to look overbought and have downgraded their recommendations on the following ASX stocks.

Tasting a tat too rich

One stock that got cut today is the Breville Group Ltd (ASX: BRG) share price, which is trading at a record high of $28.50 at the time of writing.

A big profit upgrade by JS Global is fuelling enthusiasm for Breville as the Chinese kitchen appliance maker is enjoying strong demand for its products.

That bodes well for Breville although Credit Suisse is struggling to keep the stock on its “buy” list after the BRG share price surged by more than 160% since March.

Big premium drives downgrade

“BRG is trading on an unusually high 224% premium to the ASXI [ASX Industrials Index] and the COVID-19 environment remains highly uncertain,” said the broker.

“We therefore think this is a good opportunity to take stock.”

Credit Suisse downgraded the stock to “neutral” from “outperform” two days before the company hands in its profit results.

However, the broker lifted its 12-month price target to $26.81 from $20.27 a share to reflect the positive sales momentum for its products.

When an upgrade leads to a downgrade

Another stock to be hit with a downgrade despite positive trading conditions is the Mineral Resources Limited (ASX: MIN) share price.

Shares in the mining services group also hit a record high of $28.32 this afternoon, thanks in no small part to brokers upgrading their forecast iron ore price for the next few years.

Mineral Resources benefits from the more positive outlook for the steel making commodity. Not only does it offer mining services (like crushing) to some of the world’s largest iron ore miners, it also owns iron ore and mineral sands projects.

Better value elsewhere

JP Morgan is one of the brokers that lifted its price estimates for the commodity. It expects iron ore to average US$100 a tonne in 2021 (up 19%) and that prompted it to lift its price target on Mineral Resources to $21.40 a share from $18.80.

However, the MIN share price is trading too far above the upgraded valuation, which forced JP Morgan to downgraded its rating on Mineral Resources to “underweight” from “neutral”.

More reading

• Here’s why the OZ Minerals share price rocketed 24% in July
• Has the ASX 200 finally taken off?
• ASX 200 up 1%: Challenger disappoints, Sydney Airport to raise $2bn, a2 Milk names new CEO
• ASX iron ore miners jump on broker upgrades
• 3 tips for beginners investing in ASX shares

Motley Fool contributor Brendon Lau owns shares of Breville Group 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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Is the Vanguard US Total Market Shares Index ETF (ASX:VTS) a good long-term investment? I’m going to explain why it is. 

Exchange-traded funds (ETFs) are a great way for people to invest in the share market. Most ETFs give the investor an easy way to invest in a large number of shares with a single investment. Some ETFs may invest in 100 to 300 shares and others are invested in thousands.

Many ETFs also come with low operating costs, much lower than active fund managers. The lower the cost the higher the net returns – which is obviously the most important thing for investors.

Vanguard US Total Market Shares Index ETF

This ETF is invested in most of the US share market. At the end of June 2020 it had 3,531 positions. That’s extremely diversified in my opinion. Diversification reduces the risk of any particular business or industry hurting the overall portfolio’s return too much.

Looking at the particular industry allocations with more than a 5% weighting: 25.2% of the ETF is invested in technology, 16.6% is invested in financials, 14.6% is invested in health care, 14% is allocated to consumer services, 12% is invested in industrials and 7.9% is invested in consumer goods.

I like the spread of the businesses across different industries in the US Total Market Shares Index ETF. There is a fair bit allocated to technology, but this is the sector that’s seeing the most growth. If I could pick which industry to have the most exposure to, it would be technology.

Holdings

This ETF holds all of the US’ best businesses in its holdings. Its top ten holdings are among the best and most well-known businesses in the world.

At 30 June 2020 its leading holdings were: Microsoft, Apple, Amazon.com, Alphabet, Facebook, Johnson & Johnson, Berkshire Hathaway, Visa, Proctor & Gamble and UnitedHealth.

Its holdings further down the list are names like Home Depot, Mastercard, JPMorgan Chase, Intel, Verizon, Nvidia, AT&T, Adobe, PayPal, Walt Disney, Netflix, Merck & Co, Exxon Mobil, Bank of America, PepsiCo, Pfizer, Comcast and Cisco.

Many of the above businesses have strong profit margins and long-term growth potential.

Plenty of the stocks within US Total Market Shares Index ETF are global giants within their sectors. Global earnings provides much more growth potential and also means it can be more resilient as well – it’s unlikely they every region would be suffering at the same time. Apart from something like this COVID-19 pandemic.

Look at the big technology companies. They are involved in changing how the world runs with their cloud computing offerings. Virtual reality and AI is going to be dominated by the these businesses. Automated cars could become a huge division for Alphabet’s Waymo.

Fees

As I’ve mentioned, the lower the fees the better.

Vanguard US Total Market Shares Index ETF has annual management fees of just 0.03% per annum. That’s one of the lowest available for ASX investors. It’s so low that you’d hardly see any difference between the gross return and the net return.

Returns

The net returns of an investment are the most important thing. Over the past year the ETF has delivered a net return of 16.2%. Over the past decade it has delivered an average return per annum of 15.3%.

Past performance is not a guarantee of future performance. However, I think it shows the types of returns that this ETF’s holdings can generate over the long-term. However, most of the return will be in the form of capital growth because it has a fairly low dividend yield.

Foolish takeaway

I think Vanguard US Total Market Shares Index ETF is one of the best options to invest into US shares. It has extremely low operating costs, very good diversification and its largest weightings is to high-growth technology shares.

It’s a pretty good time to buy shares because the Australian dollar has strengthened. However, I think that the upcoming US election could create more volatility for the US share market – that could be a good time to invest.

More reading

• Here’s why the OZ Minerals share price rocketed 24% in July
• These record breaking ASX stocks just got downgraded by top brokers
• 3 ASX shares fighting COVID-19 and rewarding shareholders
• Flight Centre and Zip Co were among the most traded shares on the ASX last week
• Has the ASX 200 finally taken off?

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