ASX exchange-traded funds (ETFs) provide an easy way for Aussie investors to gain exposure to global shares without the hassle of having to trade on several different international exchanges.

There are hundreds of global shares ETFs to choose from on the ASX. Some track indexes like the MSCI World Index, the NASDAQ-100 Index (NASDAQ: NDX) and the CRSP US Total Market Index. Some are sector-based. But most ETFs have specific strategies designed by the providers, who seek to beat the market’s benchmark returns.

Some global shares did better than ASX shares in FY24.

In the United States, the Nasdaq Composite Index (NASDAQ: .IXIC) rose by 28.61%, the S&P 500 Index (SP: .INX) ascended by 22.7%, and the Dow Jones Industrial Average Index (DJX: .DJI) lifted by 13.69%. The MSCI World Index rose by 18.37%.

By comparison, the S&P/ASX 200 Index (ASX: XJO) rose by 7.83% (or 12.1% with dividends included).

Global shares ETFs give Aussie investors immediate diversification in terms of stocks and geography in a single trade. The disparities in the performances of ASX shares and US shares outlined above demonstrate how useful geographical diversification can be, with or without hedging to the Australian dollar.

So, which ASX global shares ETFs delivered the best total returns in FY24?

New figures just released by the ASX reveal the top performers of the year. Let’s take a look.

Top 6 ASX global shares ETFs for total returns

This article focuses on ETFs that invest in global shares. They include index-based and sector-based ETFs, as well as those operating under a specific strategy designed by their ETF provider.

We’ve included each ETF’s management expense ratio (MER), which is the fee you pay every year. Fees can vary widely between providers, so this is always useful research information.

According to the data, here are the top six global shares ETFs for FY24.

Betashares Crypto Innovators ETF (ASX: CRYP)

The Betashares Crypto Innovators ETF returned 68.49% in FY24. The historical distribution yield is 0%, and the MER is 0.67%.

Global X Ultra Long Nasdaq 100 Complex ETF (ASX: LNAS)

The Global X Ultra Long Nasdaq 100 Complex ETF returned 65.59% in FY24. The historical distribution yield is 24.44%. The MER is 1%.

Global X Semiconductor ETF (ASX: SEMI)

The Global X Semiconductor ETF returned 58.86% in FY24. The historical distribution yield is 3.39%, and the MER is 0.57%.

Betashares Global Uranium ETF (ASX: URNM)

The Betashares Global Uranium ETF returned 57.34% in FY24. The historical distribution yield is 2.04%, and the MER is 0.69%.

Global X Fang+ ETF (ASX: FANG)

The Global X Fang+ ETF returned 51.02% in FY24. The historical distribution yield is 5.27%, and the MER is 0.35%.

Geared US Equity Fund – Currency Hedged (Hedge Fund) (ASX: GGUS)

The Geared US Equity Fund – Currency Hedged ETF returned 49.03% in FY24. The historical distribution yield is 0%, and the MER is 0.80%.

The post These top ASX global shares ETFs delivered stunning returns of 50% to 70% last year appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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 recommended Betashares Global Uranium Etf. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

By all accounts, ASX shares have had a pretty good year in 2024 so far. As it currently stands, the S&P/ASX 200 Index (ASX: XJO) has added around a healthy 4.35% this year to date, which doesn’t even include the extra boost that dividend returns would be providing. What’s more, the ASX 200 has, as of yesterday, just reached a new all-time record. And that is good news for our superannuation funds.

If your super is invested in the popular ‘balanced’ option, it’s likely that between 40-60% of your super wealth is invested in stocks. So recent record highs for both the US and ASX share markets bode well for our retirement savings.

But balanced funds are so named because they invest in a wide variety of different assets. These include shares, as we’ve just established. But they also include more defensive assets like cash term deposits and government bonds. This is done in order to mitigate the stock market volatility that many Australians hate to see in their super funds.

However, if you select what’s known as a growth fund, rather than a balanced fund, chances are your returns over 2024 have been even higher.

That’s because a growth fund doesn’t attempt to mitigate portfolio volatility like a balanced fund does. Instead, it goes all in on ‘growth‘ assets like ASX and international shares. These investments make up almost all of a growth super fund.

Balancing growth in your superannuation fund

Earlier this month, we looked at the average return for the typical balanced superannuation fund. These funds returned an average of 7.2% over the 12 months to 31 May. Over three years, the average return was 4.1% per annum. This went up to 5.1% per annum over five years and 5.3% over ten years.

But what about growth funds?

Well, using the same analysis from super research firm Chant West, we get the answer.

According to this firm, the average growth superannuation fund (containing 61%-80% growth assets) in Australia returned 9.4% over the 12 months to 31 May.

Over the prior three years, these funds averaged 5.3% per annum, rising to 6.7% per annum over five years and 6.8% over ten years.

For a high-growth fund (81-95% growth assets), the returns were higher still. These funds managed to hit 11.5% over the 12 months to 31 May. Their three-year returns averaged 6.2% per annum, and the five-year returns, 8.1%. That rose to 8.3% per annum over ten years.

Chris Brycki, CEO of Stockspot, said that the average returns from super in FY2024 should be prompting all of us to check up on our own funds:

If your balanced or growth fund returned less than 10% this year [FY2024], it’s important to question your super fund about it. Are the fees too high? Are they paying fund managers for unsuccessful stock picks? Are they invested in illiquid unlisted assets that are facing devaluations?

The trend of indexed super funds outperforming active ones is likely to persist as scrutiny increases over the valuation processes of unlisted assets by regulators like APRA, and as trustees adopt more realistic valuations of these assets

So just by comparing the returns from growth and balanced funds, you can see the advantage of opting for a high-growth fund. That’s provided it fits your individual financial circumstances, of course.

The post What are the average returns for growth superannuation funds? appeared first on The Motley Fool Australia.

More reading

• These top ASX global shares ETFs delivered stunning returns of 50% to 70% last year
• Could investing $10,000 in ASX shares make you a millionaire?
• Top 5 investment themes exciting ASX shares investors in FY25
• Looking to boost your retirement with extra passive income? Try this!
• 3 ASX dividend shares to buy next week

Motley Fool contributor Sebastian Bowen 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.

Many readers are likely to aspire to being a millionaire one day.

While there are many ways to achieving this goal, one method that has created countless millionaires is investing in ASX shares.

But could you really get there by investing $10,000? Well, the answer is yet, depending on your investment time horizon.

Turning $10,000 into $1 million with ASX shares

The power of compounding and time are your two best friends when it comes to investing. When these two combine, good things happen.

Historically, the share market has generated an average annual return of 10% including dividends.

Were it to do the same again in the future, a single investment in $10,000 could grow into something significant in time if you’re patient enough.

For example, thanks to time and compounding, $10,000 would turn into over $40,000 in 15 years if you averaged a return of 10% per annum and reinvested your dividends.

But clearly, $40,000 is still a long way from that millionaire status we are aspiring to.

Well, unfortunately, without making any further contributions, you would have to sit very patiently to reach this level.

In fact, it would take just over 48 years in total to grow $10,000 into $1 million with ASX shares and a 10% per annum return.

If you’re 21, then this means that you could have a million-dollar portfolio around the time you reach retirement age. That certainly would be a nice nest egg to combine with your superannuation.

But what if you wanted to get there sooner? Let’s look at making extra contributions.

Making a million quicker

Getting to $1 million quicker will depend upon your available income.

If you are able to start with a $10,000 investment and then make $500 contributions each month, it would take approximately 28 years to get there.

Think you could manage $1,000 investments each month? Great, because that would knock off about six years and take just over 22 years to get to $1 million.

Finally, if you’re lucky enough to have $2,000 available to invest monthly, then you need a touch of 16 years to grow your portfolio to millionaire status.

Which ASX shares should you buy?

History has shown that a focus on high-quality companies with strong business models has delivered great results.

Companies like CSL Ltd (ASX: CSL), Goodman Group (ASX: GMG), and Xero Limited (ASX: XRO) could tick these boxes and may be worth further investigation.

But the main key to success is to find the plan that suits you (and your budget) and stick with it through the long term. You will no doubt be thanking yourself for doing so in the future as your wealth builds.

The post Could investing $10,000 in ASX shares make you a millionaire? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in CSL and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Goodman Group, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended CSL and Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Gold and electric vehicles (EV) top the list of investment themes inspiring ASX shares investors in FY25, according to a survey of 2,000 Aussie investors conducted by online trading platform, Stake.

Let’s find out what other themes are exciting investors as we head into the new financial year.

Top 5 positive investment themes for FY25

Gold

Gold was the most popular investment theme for FY25, with 49% of survey respondents feeling positive about the commodity.

And no wonder, really. The gold price skyrocketed in the first half of 2024, ascending from US$2,034 per ounce on 28 February to an all-time high of US$2,449.89 on 21 May.

Examples of ASX gold shares include Newmont Corporation CDI (ASX: NEM), Northern Star Resources Ltd (ASX: NST), Bellevue Gold Ltd (ASX: BGL), and ASX gold ETF Global X Physical Gold ETF (ASX: GOLD).

EVs

The survey found 46% of Australian investors are still positive on EVs, despite reports of softening global demand. In terms of stocks, Tesla Inc (NASDAQ: TSLA) is the most obvious direct way to invest in EVs. However, among ASX shares, investors can gain exposure to the theme by purchasing ASX lithium shares.

Examples of lithium stocks include Pilbara Minerals Ltd (ASX: PLS), IGO Ltd (ASX: IGO), Core Lithium Ltd (ASX: CXO), Arcadium Lithium CDI (ASX: LTM), and Liontown Resources Ltd (ASX: LTR).

Artificial intelligence (AI)

The survey found 44% of investors are optimistic about the artificial intelligence (AI) investment theme.

There are other ways to gain exposure to AI besides buying big-tech US stocks like Nvidia Corp (NASDAQ: NVDA).

For example, AI was a significant driver of the 73.1% rise in Goodman Group (ASX: GMG) shares last year. Australia’s largest real estate investment trust (REIT) is busy building data centres all over the world.

You can check out The Fool news team’s recommendations for AI stocks here.

Lithium

Lithium commodity values have plunged over the past two years, so it’s interesting to see lithium remaining top of mind for ASX shares investors, with 42% of respondents still positive on the theme.

Copper

The red metal is set to play a significant role in the world’s decarbonisation. This is because it’s a cheap and effective electricity conductor used in EVs, wind turbines, solar energy systems, and data centres.

According to the survey, 41% of ASX shares investors like the copper theme. The commodity price has risen by more than 15% in 2024 so far.

Examples of ASX copper shares include Sandfire Resources Ltd (ASX: SFR), Aeris Resources Ltd (ASX: AIS), WA1 Resources Ltd (ASX: WA1), and FireFly Metals Ltd (ASX: FFM).

The post Top 5 investment themes exciting ASX shares investors in FY25 appeared first on The Motley Fool Australia.

More reading

• Here 3 ASX lithium shares to watch for FY25
• Here are the top 10 ASX 200 shares today
• Are Liontown Resources shares a buy after surging 9% this week?
• Why did Goldman Sachs just upgrade Core Lithium shares?
• Is it time to dive back into ASX lithium shares?

Motley Fool contributor Bronwyn Allen has positions in Core Lithium and Goodman Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Nvidia, and Tesla. The Motley Fool Australia has recommended Goodman Group and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Just an extra $100 of additional passive income a week could make a big difference during your retirement years.

Of course, $200 or $300 a week would be even more welcome.

That could open the door to extra travels in your golden years. Or you may choose to spend some on gifts for your partner, or your kids or grandkids. Or perhaps just spoil yourself.

However you may choose to put the extra funds to use, here’s how I’d go about securing that passive income stream today.

Building passive income for retirement

I think ASX dividend shares offer one of the best means for Aussies to secure potentially life-changing passive income in their retirement.

One of the advantages offered by many leading ASX dividend shares is that they come with franking credits. That’s something you won’t get on most international exchanges, including in the United States.

With 100% franking, you’ll get the full credit for the 30% corporate tax the company has already paid, which could reduce your own tax burden. That can be an extra big bonus for self-funded retirees with a low annual income, who can receive franking credits as cash refunds.

Another thing to keep in mind when building your retirement-enhancing passive income stream is that the sooner you get started, the larger that extra income pool is likely to be.

For example, let’s say you invest $5,000 a year and achieve 5% capital gains and 5% dividend yields for a 10% average annual gain.

After 10 years, you’ll have invested $50,000, and your ASX portfolio will be worth $92,656.

But if you keep at it for 30 years, you’ll have invested $150,000, and your ASX portfolio will have grown to $909,717.

At that point, you could stop investing and begin drawing out your weekly passive income.

From the 5% dividend yield alone, that would equate to $45,856 a year or some $875 a week.

Finally, when looking for retirement-boosting ASX passive income stocks, you’ll want to invest in a diverse range of companies operating in various sectors and, ideally, across different geographic locations.

That will help reduce the risk of your overall portfolio taking a big hit if any one company or sector hits some turbulence.

One ASX dividend share with instant diversity

I think it’s worth finding a range of top ASX dividend gems to buy and hold in your passive income portfolio.

But one simpler way to get rolling is to invest in the BetaShares Australian Dividend Harvester Fund (ASX: HVST).

The ASX exchange traded fund (ETF) holds anywhere from 40 to 60 blue-chip ASX dividend shares at any given time, offering instant diversity.

The ASX ETF’s top four holdings at the time of writing are Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), CSL Ltd (ASX: CSL) and Rio Tinto Ltd (ASX: RIO).

On the passive income front, the ETF makes convenient monthly payments.

As at 28 June, HVST had a 12-month gross dividend yield of 8.4%. The gross yield incorporates the 78.5% in franking credits.

As of the same date, the BetaShares Australian Dividend Harvester Fund had delivered 14.0% in gross returns after fees over 12 months.

The post Looking to boost your retirement with extra passive income? Try this! appeared first on The Motley Fool Australia.

More reading

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• How I’d aim to build a $75,000 income from ASX shares and never work again!
• These ASX 200 stocks turned $20,000 into $100,000+ in 10 years
• Why mum and dad investors aren’t buying ASX bank shares like they used to
• Xero shares doubled the ASX 200 return in FY24. What’s next in FY25?

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 positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Are you looking for some income options for when the market reopens next week?

If you are, then check out these ASX dividend shares listed below. They have recently been tipped as buys by analysts. Here’s what they are saying about them:

Challenger Ltd (ASX: CGF)

Goldman Sachs is tipping this annuities company as be an ASX dividend share to buy.

It likes the company due to its exposure to the massive superannuation market and the favourable outlook for annuities demand. It explains:

CGF is Australia’s largest retail and institutional annuity provider across Term and Lifetime annuities with a funds management business. We are Buy rated on the stock. We like CGF because: 1) it has exposure to the growing superannuation market across Life and Funds Management; 2) higher yields should drive a favorable sales environment for retail annuities as well as an improvement in margins; 3) its annuity book growth looks well supported through a diversified distribution strategy.

In respect to dividends, the broker is forecasting fully franked dividends of 26 cents per share in FY 2024 and 27 cents per share in FY 2025. Based on the current Challenger share price of $6.89, this will mean dividend yields of 3.8% and 3.9%, respectively.

The broker currently has a buy rating and $7.50 price target on its shares.

Dexus Industria REIT (ASX: DXI)

Analysts at Morgans see Dexus Industria as an ASX dividend share to buy when the market reopens. It is a real estate investment trust with a focus on industrial warehouses.

Morgans believes the company is positioned to benefit from solid demand for industrial property, its development pipeline, and the positive rental growth outlook. It said:

The portfolio is valued at $1.6bn across +90 properties with 89% of the portfolio weighted towards industrial assets (WACR 5.38%). The portfolio’s WALE is around 6 years and occupancy 97.5%. Across the portfolio 50% of leases are linked to CPI with the balance on fixed increases between 3-3.5%. While we expect cap rates to expand further in the near term, DXI’s industrial portfolio remains robust with the outlook positive for rental growth. The development pipeline also provides near and medium-term upside potential and post asset sales there is balance sheet capacity to execute.

As for income, Morgans is forecasting dividends per share of 16.4 cents in FY 2024 and then 16.6 cents in FY 2025. Based on the current Dexus Industria share price of $2.89, this will mean dividend yields of 5.7% and 5.75%, respectively.

The broker has an add rating and $3.20 price target on its shares.

Worley Ltd (ASX: WOR)

The team at Goldman Sachs is also positive on this engineering company.

It believes the company is well-positioned to benefit from the decarbonisation megatrend and sees a lot of value in its shares at current levels. It said:

WOR is well positioned to play a role in enabling the transition from fossil fuels to a more sustainable energy mix in the LT, leveraging its experience in providing engineering and maintenance services for complex energy/chemicals works, existing client relationships, and management’s stated focus on expanding the company’s transition footprint. We expect the energy transition segment to gain increased investor attention as Covid-19 related impacts fade and the company continues to highlight the strong growth potential of the business via increased disclosure. We expect WOR’s ST/MT margins to improve with an incrementally positive operating environment. Vs the S&P/ASX 200, WOR is trading broadly in line with market vs a premium in the last 3yr/5yr.

Goldman is forecasting dividends per share of 52 cents in FY 2024 and then 58 cents in FY 2025. Based on its current share price of $14.73, this equates to dividend yields of 3.5% and 3.9%, respectively.

The post 3 ASX dividend shares to buy next week appeared first on The Motley Fool Australia.

More reading

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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. The Motley Fool Australia has recommended Challenger. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.