Joe Biden announced his policy shielding 500,000 immigrants from deportation on the 12th anniversary of the DACA program. The protection is for migrants who are married to US citizens.
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Katy Perry’s comeback single is already being criticized — and it’s not even out yet
Katy Perry recently served as a judge on "American Idol." Disney/Eric McCandless
- Katy Perry announced her new single, "Woman's World," will be released on July 11.
- Perry also shared a short snippet of the song on TikTok, teasing a female empowerment theme.
- The production and lyrics have already been criticized as "dated" and "cliché" on social media.
Katy Perry's new song won't be released until next month, but the pop star's much-hyped comeback may already be in jeopardy.
On Monday, Perry unveiled the cover art and title for her forthcoming single, "Woman's World," out July 11, which will serve as the lead single for Perry's seventh album.
"Get ready to pop off," Perry wrote.
The as-yet-unnamed album will be Perry's first full-length release since 2020's "Smile," which drew an underwhelming response from critics and fans alike. (Business Insider's music team gave the album a score of 4.6 out of 10.)
At the time, "Smile" was similarly marketed as a rebirth following backlash to Perry's previous album, 2017's "Witness."
Since then, Perry has laid relatively low for a chart-topping, record-breaking superstar. She gave birth to her first child with Orlando Bloom, a daughter named Daisy Dove, in August 2020. The following year, she launched "Play," an 80-show Las Vegas residency. Perry has also served as a judge on "American Idol" for seven seasons, wrapping her final episode in May.
As these endeavors neared their ends, Perry began dropping hints about a big pop comeback — and the timing has not gone unnoticed.
Over a decade has elapsed since Perry released a celebrated album (2013's "Prism"). Her most recent charting hit was "Daisies," which peaked at No. 40 on the Billboard Hot 100 in 2020.
In the words of @mazzypopstar, a pop music commentary account on X: "Last two albums flopped, no hits since bon appetit and swish swish, harleys in hawaii streams aren't paying the bills anymore, landlord knocking on the door, she has ONE chance…"
When Perry finally kicked off her new era this week, she paired the announcement with a short snippet of "Woman's World" on TikTok. The lyrics seem to focus on female empowerment, individuality, and strength, themes Perry has explored many times in songs like "Firework" (2010), "Roar" (2013), and "Resilient" (2020).
"Sexy, confident / So intelligent," Perry sings. "She is heaven-sent / So soft, so strong."
However, Perry's retreat to a familiar formula has not inspired faith in the masses — at least not judging by the reactions on social media.
"I was rooting for Katy but these lyrics are so dated," one skeptic wrote on X. "It's giving 2016 Hillary Clinton presidential campaign material."
Some people mocked the song's production and overall sound, leaving harsh comments across TikTok.
At the time of writing, the top comment on Perry's own video reads, "Get in the studio right now and re-record this song." Another says, "Are these AI lyrics??"
In separate videos, various creators said the snippet sounds like "cliché drivel" and "an ARTPOP reject track," referring to Lady Gaga's 2013 album.
Many others criticized Perry's new visual direction, accusing her of cribbing aesthetics from niche pop musicians like Charli XCX — who's enjoying a wave of positive reviews for her new album "Brat" — and the Venezuelan producer Arca.
One disapproving post on X, which has racked up over 57,000 likes, accuses Perry of manufacturing a certain look in order to appeal to "the lowest common denominator gay guys."
Another significant chunk of the critiques on social media stems from a rumor that "Woman's World" is produced by Dr. Luke, whom Kesha publicly accused of emotional and sexual abuse.
Kesha herself added fuel to the fire, simply writing "lol" on X shortly after Perry shared her announcement.
However, Business Insider could not verify the production credits for "Woman's World." A representative for Perry did not immediately respond to a request for comment.
Read the original article on Business Insider -
Buy BHP and these ASX dividend shares
Fortunately for income investors, the Australian share market is home to a large number of dividend-paying shares.
But which ones could be good options for them right now? Let’s take a look at three options from very different sides of the market that analysts are tipping as buys this month.
Here’s what they are forecasting for these top ASX dividend shares:
BHP Group Ltd (ASX: BHP)
If you are happy to invest in the mining sector, then it could be a good idea to look at mining giant BHP.
That’s because Goldman Sachs thinks the Big Australian will provide investors with a combination of big gains and attractive dividend yields.
The broker currently has a $49.00 price target on the miner’s shares. This compares favourably to the current BHP share price of $42.80.
As for dividends, the broker is forecasting fully franked dividends of US$1.42 (A$2.13) per share in FY 2024 and then US$1.26 (A$1.89) per share in FY 2025. At current levels, this equates to dividend yields of 5% and 4.4%, respectively.
Dexus Convenience Retail REIT (ASX: DXC)
Another ASX dividend share that analysts are positive on is Dexus Convenience Retail REIT.
It is a property company that owns a portfolio of service station and convenience retail assets located across Australia.
The team at Morgans is feeling very positive about the company and has an add rating and $3.23 price target on its shares.
In respect to income, the broker is expecting dividends per share of 21 cents in both FY 2024 and FY 2025. Based on its current Dexus Convenience Retail REIT share price of $2.67, this will mean very large dividend yields of 7.85% in both years.
Transurban Group (ASX: TCL)
A third ASX dividend share that could be a top buy for income investors according to analysts is Transurban.
It is a toll road giant that manages and develops road networks in Australia and North America. In Australia, this includes key roads such as the Cross City Tunnel, the Eastern Distributor, and Westlink M7.
Analysts at Citi are bullish on Transurban and currently have a buy rating and $15.50 price target on its shares.
As for dividends, the broker is forecasting dividends per share of 63.6 cents in FY 2024 and then 65.1 cents in FY 2025. Based on the current Transurban share price of $12.58, this will mean yields of 5% and 5.2%, respectively, for income investors.
The post Buy BHP and these ASX dividend shares appeared first on The Motley Fool Australia.
Should you invest $1,000 in Bhp Group right now?
Before you buy Bhp Group shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bhp Group wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
See The 5 Stocks
*Returns as of 5 May 2024More reading
- How to invest for retirement in an inflationary environment
- What’s happening with the big 3 ASX 200 iron ore stocks today?
- Should investors be bullish about BHP shares with the FY25 outlook?
- 3 lower-risk ASX shares I think are perfect for beginners
- Are BHP or Wesfarmers shares a better buy?
Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Transurban Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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Why are these experts so bullish on ASX copper shares?
Leading ASX copper shares have returned some outsized gains over the past year amid a fast-rising copper price.
12 months ago, the red metal was trading for US$8,540 per tonne. Today, that same tonne is worth US$9,665, up 13% at the time of writing.
That’s helped S&P/ASX 200 Index (ASX: XJO) copper share Sandfire Resources Ltd (ASX: SFR) rocket 36% in a year.
Dual-listed, Canadian-based Capstone Copper Corp (ASX: CSC) only began trading on the ASX on 8 April. The Capstone Copper share price soared 25% between the close on 8 April and 20 May, when copper prices were near record highs of US$10,889 per tonne.
Amid the past week’s retrace in copper prices, both Capstone Copper and Sandfire shares have fallen since 20 May, though Capstone shares remain up 3% since 8 April.
In potentially good news for the miners, however, Citi believes the run higher for the red metal is only beginning.
Why Citi is bullish on ASX copper shares
“Citi’s global commodity team continues to highlight copper as their top pick,” Citi analyst Paul McTaggart said last week (quoted by The Australian).
“Against a backdrop of increasing confidence in traditional non-energy transition demand”, the broker lifted its 2025 forecast for the copper price to US$12,000 per tonne. That’s some 24% higher than current levels and could provide some heady tailwinds for ASX copper shares.
Indeed, Citi also upgraded Sandfire Resources to a neutral rating, boosting its share price forecast by 13% to $8.90 a share. That’s more than 5% above yesterday’s closing price.
The broker expects that copper will benefit from looming interest rate cuts from the US Federal Reserve and other leading central banks. And Citi foresees strong demand amid an improving outlook for global economic growth.
And then there’s the ongoing energy transition.
What’s been boosting the copper price?
A large part of the price boost driving ASX copper shares higher is an ongoing demand growth from the world’s energy transition.
You’ll find the highly conductive, non-corrosive metal in abundance in wind turbines, EVs, and all manner of electric wiring.
The rapid advance of artificial intelligence (AI) is also going hand in hand with a sizeable increase in forecast electricity demand. Nations the world over, including Australia, are building new AI-enabled data centres, which require far more juice to run the programs. Not to mention the copper that goes into the facilities themselves.
And all this comes as miners struggle to meet the growing demand.
On the supply side, ASX copper shares have benefited from numerous disruptions at major copper mines across the world in recent months, sending the copper price soaring.
The post Why are these experts so bullish on ASX copper shares? appeared first on The Motley Fool Australia.
Should you invest $1,000 in Capstone Copper right now?
Before you buy Capstone Copper shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Capstone Copper wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
See The 5 Stocks
*Returns as of 5 May 2024More reading
- Buy ’em now! Brokers name 3 ASX All Ords shares to add to your portfolio
- Are these beaten-up ASX shares too cheap to ignore?
- Here are the top 10 ASX 200 shares today
- Will ASX copper shares keep surging from here? (Plus: 2 top picks for exposure)
- 1 Australian mining stock worth a long-term investment
Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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5 things to watch on the ASX 200 on Wednesday
On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a very strong session and raced notably higher. The benchmark index stormed 1% higher to 7,778.1 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to edge lower
It looks set to be subdued day for the Australian share market on Wednesday despite a reasonably positive session in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 3 points lower. On Wall Street, the Dow Jones rose 0.15%, the S&P 500 pushed 0.25% higher, and the Nasdaq edged higher.
Oil prices rise
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a good day after oil prices pushed higher again overnight. According to Bloomberg, the WTI crude oil price is up 1.4% to US$81.44 a barrel and the Brent crude oil price is up 1.2% to US$85.28 a barrel. This recent rally has been driven by optimism over summer fuel demand.
Buy Life360 shares
The Life360 Inc (ASX: 360) share price is good value according to analysts at Bell Potter. In response to news that the location technology company has surpassed 2 million paying circles, the broker has reiterated its buy rating and lifted its price target to $17.75. It commented: “Life360 put out a media release saying it has just reached 2m global paying circles. This was notably ahead of our forecast which was 1.98m at 30 June 2024 and an increase of 86k in 2Q2024.”
Gold price rises
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a good session after the gold price rose overnight. According to CNBC, the spot gold price is up 0.65% to US$2,334.3 an ounce. This follows the release of US economic data which was supportive of US Federal Reserve interest rate cuts.
Beach Energy rated as a buy
Beach Energy shares could also be worth buying according to Bell Potter. This morning, the broker has responded to the energy producer’s strategic review by retaining its buy rating with a trimmed price target of $1.75. It said: “The Strategic Review outcomes are largely as expected; strong on cost out targets and capital discipline. Adjusting for the updated outlook, EPS changes in this report are: FY24 +11%; FY25 -25%; and FY26 -11%.”
The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.
Should you invest $1,000 in Life360 right now?
Before you buy Life360 shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Life360 wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
See The 5 Stocks
*Returns as of 5 May 2024More reading
- Here are the top 10 ASX 200 shares today
- ASX 200 dips on RBA interest rate decision
- 10 ASX shares that have raised dividends for a decade
- Why Beach Energy, Fortescue, Kina Securities, and Melbana Energy shares are dropping today
- Buy ’em now! Brokers name 3 ASX All Ords shares to add to your portfolio
Motley Fool contributor James Mickleboro has positions in Life360 and Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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7 of the most faked seafoods in the world
Seafood is one of the most commonly fraudulent foods we come in contact with, according to the ocean-conservation nonprofit Oceana. Your red snapper could actually be a tilapia fillet. That wild-caught salmon? It could be farm-raised. Crab, lobster, and scallops have also been victims of fraudulent swaps — and some of the substitutions could be harmful to human health. But there are also entire criminal rings smuggling seafood across the world. They often fish illegally and have been involved in human trafficking. Why is it so hard to catch bad actors in seafood supply chains? And how can we make sure we're getting the seafood that's on the label?
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EV charging company says Fisker ‘abandoned its contract’ — so it’s yanking promo credits from Fisker customers
Fisker filed for Chapter 11 bankruptcy on Monday. Michael Tullberg
- ChargePoint said it is rescinding charging credits for Fisker Ocean owners who received promos.
- ChargePoint cited Fisker's contract and said the company had not paid for the credits.
- Fisker filed for Chapter 11 bankruptcy on Monday.
Fisker filed for bankruptcy on Monday and Ocean owners are already beginning to feel the pinch.
EV charging company ChargePoint notified some Fisker Ocean owners that the company had rescinded their promotional charging credits on Tuesday morning. The company said in an email to owners who had received charging credits through Fisker that Henrik Fisker's company had "abandoned its contract with ChargePoint."
"It has done so without paying for any of the promotional charging offers given out to its customers, including the one you redeemed to your ChargePoint account," the email reads, according to a screenshot viewed by Business Insider. "ChargePoint has done everything in our control to reach Fisker and find a way to take care of its drivers, however they have abandoned all communication without resolving payment."
As a result, ChargePoint said in the email that it would have to relinquish any charging credits on the owners' accounts, but Ocean owners would not have to pay for any credits they had already used via Fisker's promo codes.
ChargePoint customer service confirmed the email when contacted by Business Insider. A spokesperson for Fisker did not immediately respond to a request for comment ahead of publication.
A ChargePoint electrical vehicle charger next to a Tesla. Getty/Patrick T. Fallon
Fisker had given some of its customers ChargePoint credits or credits that could be used to subsidize their charging needs to mitigate long repair waits or delivery issues, several owners and two former employees told BI. Fisker first announced a partnership with ChargePoint ahead of the SUV's release in 2023. The company had also said it would offer owners of the Ocean One, a special version of the SUV that was limited to 5,000 cars, a $1,000 ChargePoint credit.
ChargePoint is not the first company to accuse Fisker of stiffing them. Last month, an engineering company sued Fisker seeking $13 million in damages, alleging the company failed to meet the terms of its agreement. At the time, a Fisker spokesperson said the lawsuit was "without merit."
The charging credits are just one of many problems Fisker Ocean owners might face in the coming months. Business Insider previously reported that owners were concerned their cars might become unusable if Fisker were to go under. The company told BI last week that it has delivered about 7,000 cars to date.
Do you work at an EV company or have a tip? Reach out to the reporter via a non-work email and device at gkay@businessinsider.com or 248-894-6012
Read the original article on Business Insider -
Trump’s ex-national security advisor wants to restart US nuke testing. Nuclear experts warn that’s not a good idea.
US President Donald Trump(L)speaks next to new national security advisor Robert O'Brien on September 18, 2019, at Los Angeles International Airport in Los Angeles, California. NICHOLAS KAMM/AFP via Getty Images
- A former Trump advisor says a second Trump term should involve restarting nuclear testing.
- Nuclear experts pushed back on the idea, warning that it'll lead to a global arms race, among other problems.
- Nuke testing could prompt Russia and China into nuclear competition.
Donald Trump's former White House national security advisor is arguing that a second term in office should involve restarting US nuclear testing for the first time in over 30 years.
That's a bad idea, nuclear weapons experts say, as the US, Russia, and China could quickly find themselves in an arms race if the ban on that kind of testing isn't maintained.
Robert O'Brien, ex-adviser to former President Trump, wrote in Foreign Affairs Tuesday that in order to counter China and Russia's continued investments in their nuclear arsenals, the US should test new nukes.
"China has doubled the size of its arsenal since 2020: a massive, unexplained, and unwarranted expansion. The United States has to maintain technical and numerical superiority to the combined Chinese and Russian nuclear stockpiles," O'Brien wrote. "To do so, Washington must test new nuclear weapons for reliability and safety in the real world for the first time since 1992 — not just by using computer models."
O'Brien added that the US should also resume production of uranium-235 and plutonium-239, the primary isotopes of nuclear weapons.
While it's unclear if such actions would be Trump's priorities in a potential second term, O'Brien's recommendations were swiftly condemned by nuclear weapons and arms control experts.
"The ignorance of Trump advisors continues to stun," Jon B. Wolfsthal, a nuclear arms control and nonproliferation expert and an Obama administration official for national security affairs, posted on X, saying that the "US has the world's most reliable and advanced nuclear weapons."
Former US President Donald Trump (left) and Chinese leader Xi Jinping (right) during a bilateral meeting on the sidelines of the G20 Summit in 2019. Trump had been in office from 2017 to 2020. Brendan Smialowski/AFP via Getty Images
Wolfsthal said that if the US resumed testing, it "would only make it easier for RF [Russian Federation] and PRC [People's Republic of China] to resume nuclear testing and catch up." He added that new nuclear materials also weren't needed, as the US has stockpiles available form the Cold War.
"Nuclear bullying doesn't work and leads to arms racing," Daryl Kimball, executive director of the Arms Control Association, wrote, calling O'Brien's opinion "dangerous, counterproductive Dr. Strangelove thinking."
No one wins a nuclear arms race, he said.
Kimball called out the difference between O'Brien's argument for the resumption of nuclear testing with the Biden administration's current policy, which remains dedicated to the status quo.
In 2023, US President Joe Biden's National Security Advisor Jake Sullivan said: "The United States does not need to increase our nuclear forces to outnumber the combined total of our competitors in order to successfully deter them. We've been there. We've learned that lesson," adding that truly effective nuclear deterrence comes with a "better" approach, not a "more" approach.
Shell, which is the replica of the biggest detonated Soviet nuclear bomb AN-602 (Tsar-Bomb), on display in Moscow, Russia. Maxim Zmeyev/Reuters
Jeffrey Lewis, a professor at the Middlebury Institute of International Studies at Monterey and a nuclear proliferation expert, said in a thread on X that the number of US nuke tests — 1,149 — is more than that of Russia, 969, and China, 45, combined.
"Resuming nuclear testing would reduce US technical superiority over Russia and China because they would immediately follow and have much more to learn," he said.
Hans Kristensen, the director of the Nuclear Information Project at the Federation of American Scientists, said in a social media post that "there are some 'advisors' you just shouldn't take advice from."
O'Brien's push for resumed testing shouldn't necessarily come as a surprise. Back in June 2020, in the final months of Trump's presidency, the US State Department told Congress it suspected Russia and China had defied testing moratoriums, raising concerns the US would follow. Just a month prior, US officials considered conducting a so-called "rapid test" just to demonstrate readiness to America's adversaries.
At the time, experts pushed back on both the State Department's accusations and the potential for resumed testing, noting that the US does many of the same activities as Russia and China without conducting full tests.
It remained unclear if Trump would have been game for resumed nuclear testing or breaking the longstanding Comprehensive Test Ban Treaty, but his first-term advisors, such as O'Brien's predecessor John Bolton, believed "unsigning" the treaty should be a top priority for the US. Now, the discussion is back again.
Read the original article on Business Insider -
I tried Gwyneth Paltrow’s Goop pizza, and it’s actually … pretty good?
Neilson Barnard/Getty Images; Jenny Chang-Rodriguez/BI
- Goop Superfina is part of Gwyneth Paltrow's ghost kitchen empire.
- It serves 10 different types of gluten-free pizza, as well as pasta and salads.
- I wouldn't order the pasta again, but I loved the light and crispy gluten-free pizza crust.
When you hear the word Goop, Gwyneth Paltrow's multimillion-dollar lifestyle brand, what's the first thing that comes to mind? The infamous jade egg, perhaps, or maybe the viral "This Smells Like My Vagina" candle?
Whatever it is, there's one thing you're almost certainly not thinking about. Pizza.
And yet, that is exactly what Paltrow is selling at Goop Superfina, her ghost kitchen dedicated to gluten-free pies, pasta, and salads.
It doesn't seem like a likely venture for the wellness mogul, who swears by a strict diet of bone broth and paleo-approved foods. But, to our surprise, the pizza was actually … pretty good?
Goop CEO and founder Gwyneth Paltrow. Photo Credit: Layne Murdoch Jr./Getty Images
Goop Superfina features 10 different square pizzas on the menu, and four different types of pasta. Anneta Konstantinides/Business Insider
The Caesar salad from Goop Superfina. Anneta Konstantinides/Business Insider
Goop Superfina's Queen Margherita pizza. Anneta Konstantinides/Business Insider
The Pepperoni Potts pizza from Goop Superfina. Anneta Konstantinides/Business Insider
The Pesto Pasta from Goop Superfina. Anneta Konstantinides/Business Insider
The "Penne, No Vodka" pasta from Goop Superfina. Anneta Konstantinides/Business Insider
I would order Goop Superfina's pizza again when I'm craving something light. Anneta Konstantinides/Business Insider
Read the original article on Business Insider -
Own the Vanguard US Total Market Shares Index ETF (VTS)? Here’s your 12-month ASX outlook
The Vanguard US Total Market Shares Index ETF (ASX: VTS) is an exchange-traded fund (ETF) that has been growing in popularity on the ASX in recent months.Â
That’s understandable, with VTS being a rather unique index fund on the ASX. No other Australian-listed ETF offers comprehensive exposure to the American markets like VTS does. Rather than tracking the more popular S&P 500 Index (SP: .INX) or NASDAQ-100Â (NASDAQ: NDX), VTS mirrors the CRSP U.S. Total Market Index.
That means instead of tracking 100 or even 500 individual companies, VTS houses an extraordinary 3,648 underlying stocks at the latest count.
This index fund has had an extraordinary 2024 financial year to date. Vanguard tells us that, as of 30 April, VTS units have returned a massive 24.59% over the preceding 12 months. That includes both capital growth and dividend distributions. What’s more, since 30 April, those units have added another 5% or so as of today’s pricing. So an extraordinary performance from VTS.
Even long-term investors might be surprised by these incredible returns. VTS has historically delivered meaningful gains. As of 30 April, investors have received an average of 14.2% per annum from VTS units over the past five years. That rises to an average of 15.85% per annum over the past ten.
Check that all out for yourself below:
But all of that is in the past now. So what can investors expect from the Vanguard US Total Markets ETF over the coming 12 months of FY2025?
What does FY2025 hold in store for the ASX’s VTS?
Accurately predicting the future for even one stock’s share price for a 12-month period is a near-impossible task. But predicting the fate of the 3,648 companies that will ultimately decide how the VTS ETF fares on the ASX over the coming financial year is a laughably ludicrous endeavour.
Even so, we can still point out a number of factors that VTS investors might want to keep an eye on over the coming 12 months.
You’d think that with over 3,600 individual holdings, the VTS ETF would be a highly diversified fund. You’d be correct, but only to a certain point. Despite this ETF’s bulging portfolio of underlying US shares, it is still highly top-heavy. Of its myriad holdings, the largest ten positions in this fund make up nearly a third of VTS’ weighted portfolio at 29.4%.Â
Like most US-based ETFs these days, those largest holdings are none other than the American tech behemoths that we all know and love. Going from largest to sixth-largest, we have Microsoft, Apple, NVIDIA, Alphabet, Amazon and Meta Platforms.
Given these six stocks have such a disproportionate weighting within this index fund, its performance over the coming 2025 financial year will largely be dictated by how these companies themselves fare. It’s no coincidence that all six of these tech giants have had a fantastic FY2024, in addition to the Vanguard US Total Markets ETF.
What will make or break the Vanguard US Total Market Shares Index ETF?
I think the performance of these stocks over the coming 12 months will be determined by their own earnings reports, as well as the actions of the US Federal Reserve. If the Fed cuts interest rates over the next year, as many commentators expect them to, it could turbocharge the entire VTS ETF.
There’s also a major event scheduled for the 2025 financial year that has the potential to dictate what happens with this ETF. That would be the United States’ 2024 Presidential Election, of course. In addition to the Presidential Election, the entire US House of Representatives will also be up for election, as will a third of the US Senate.
The outcome of these elections will probably also have an impact on VTS’ FY2025. Markets seem to like it when a divided government (neither party has a majority in both houses of Congress) is elected. So if neither Joe Biden’s Democrats nor Donald Trump’s Republicans win the Presidency as well as both houses of Congress, I would expect a positive reaction from the markets.
So those are the factors I’d be keeping an eye on over FY2025 if you own ASX units of the VTS ETF. No doubt investors will be hoping for a repeat of FY2024’s performance. But we’ll have to wait and see what happens.
The post Own the Vanguard US Total Market Shares Index ETF (VTS)? Here’s your 12-month ASX outlook appeared first on The Motley Fool Australia.
Should you invest $1,000 in Vanguard Us Total Market Shares Index Etf right now?
Before you buy Vanguard Us Total Market Shares Index Etf shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Vanguard Us Total Market Shares Index Etf wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
See The 5 Stocks
*Returns as of 5 May 2024More reading
- Why the Vanguard US Total Market Shares Index ETF (VTS) is a top long-term buy
- Does the Vanguard US Total Market Shares Index ETF (VTS) pay a decent ASX dividend?
- Why Vanguard US Total Market Shares Index ETF (VTS) is a top buy for retirement
- Own the ASX’s Vanguard US Total Markets ETF (VTS)? Here’s what you’re invested in
Suzanne Frey, an executive at Alphabet, is a member of The Motley Foolâs board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Foolâs board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, Apple, Meta Platforms, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.