Tag: Fool

I believe buy and hold investing is one of the best ways to grow your wealth.

This is because it allows you to leverage the power of compounding over time.

But don’t worry if you’re not a fan of stock-picking. That’s because exchange-traded funds (ETFs) are here to make life easier.

They allow you to buy large numbers of stocks in one fell swoop. This means you can diversify your portfolio almost instantly.

But which ASX ETFs could be great long term options? Let’s take a look at three that could be buys:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

When making long term investments, it is never a bad idea to buy the best companies you can get your hands on. The good news is that the BetaShares NASDAQ 100 ETF is home to many of the biggest and best companies that the world has to offer.

This hugely popular ASX ETF gives investors easy access to the 100 largest non-financial shares on the famous NASDAQ index. This is heavily, but not exclusively, focused on technology, with many household names among the ETF’s holdings. This includes Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA).

Over the last 10 years, the index the fund tracks has generated a return of 22.7% per annum.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another ASX ETF that could be a great buy and hold option is the VanEck Vectors Morningstar Wide Moat ETF.

Warren Buffett is a great investor to follow if you’re interested in making long term investments. His focus on investing in companies with sustainable competitive advantages (moats) and fair valuations has allowed him to smash the market for many, many decades.

The VanEck Vectors Morningstar Wide Moat ETF allows you to invest in this style by putting together a group of shares that have the exact qualities that Buffett looks for when making investments.

And just like Buffett, this ETF has delivered great returns. The index the ETF tracks has achieved an average return of 16.7% per annum over the past 10 years.

Vanguard Australian Shares Index ETF (ASX: VAS)

Finally, if you want to invest locally, then the Vanguard Australian Shares Index ETF could be a great option.

This ETF allows you to buy a slice of the companies included in the ASX 300 index. These are Australia’s leading 300 listed companies and include names from all sides of the market.

Among its holdings are companies as diverse as BHP Group Ltd (ASX: BHP), Lovisa Holdings Ltd (ASX: LOV), Macquarie Group Ltd (ASX: MQG), and Woodside Energy Group Ltd (ASX: WDS).

Over the last 10 years, it has achieved a return of approximately 8% per annum.

The post Buy and hold these ASX ETFs for 10 years+ appeared first on The Motley Fool Australia.

More reading

• Can the BetaShares Nasdaq 100 ETF (NDQ) give ASX investors another 32% in FY25?
• Top ASX shares to buy for FY25
• Is the Vanguard Australian Shares Index ETF (VAS) outperforming your super fund?
• ASX NASDAQ (NDQ) ETF: Up 30% in a year, should you buy now or wait?
• Buy these market-beating ASX ETFs in FY25

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF, Lovisa, and Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Nasdaq 100 ETF, Lovisa, Macquarie Group, 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 positions in and has recommended BetaShares Nasdaq 100 ETF and Macquarie Group. The Motley Fool Australia has recommended Apple, Lovisa, Microsoft, Nvidia, and VanEck Morningstar Wide Moat 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, the 2024 financial year that has just passed us by was a very successful one for ASX shares on the whole. Between the start of July 2023 and the end of June 2024, the S&P/ASX 200 Index (ASX: XJO) rose by a healthy 7.8%. If you include dividend returns, that gain stretches to around 12%.

But let’s talk about how the BetaShares Nasdaq 100 ETF (ASX: NDQ) went.

The ASX 200 might have had a very strong year indeed over FY24. But the Betashares Nasdaq 100 exchange-traded fund (ETF) made it look silly, if we’re to be frank.

NDQ units started FY24 priced at $35.05 each. But by the end of last month, those units finished up the financial year at $45.51. That’s a gain worth 29.84%. If we include the value of the dividend distributions the ASX’s NDQ investors enjoyed over the 12 months to 30 June, that return stretches to roughly 32.1%.

Not a bad effort for just one year of waiting. That kind of return is astonishingly good. There aren’t too many investors that could have replicated it in their own portfolios, that’s for sure.

As the Betashares Nasdaq 100 ETF is mostly made up of the United States’ most prominent tech stocks, it’s not too difficult to see where these huge returns come from. To illustrate, the five largest positions in the NDQ portfolio are (in order) Microsoft, Apple, NVIDIA, Alphabet and Broadcom.

• Microsoft shares rose 31.25% over FY24.
• Apple shares were up 8.58%.
• Nvidia stock shot up a whopping 192%.
• Alphabet’s Class A shares enjoyed a 52.17% bounce over the year.
• And Broadcom shares rocketed 85%.

Together, these five stocks account for 35.1% of NDQ’s entire portfolio by weighting. So, with gains rolling out from these top five, NDQ units were always going to have a veritable party over FY24.

But what about FY25?

Can the NDQ ETF bring home another 32% for ASX investors in FY25?

Well, that’s the million-dollar question. Normally, it would be prudent to state that a 30% gain from any investment, but particularly an index fund, is more likely to be one-off than a guide to future returns. As we stated earlier, a 30% gain is a rare feat in any stock market.

Additionally, it’s also worth stating that past returns are never a guarantee of future prosperity with any investment.

Saying that though, the BetaShares Nasdaq 100 ETF does have a long track record of delivering massive returns. As of 28 June, NDQ units have returned an average of 22.24% per annum over the past five years and 20.04% per annum since the ETF’s ASX inception in 2015.

This ETF’s holdings are indisputably some of the best and most exciting companies in the world. So, I wouldn’t be surprised if investors continued to enjoy meaningful gains from NDQ units.

However, that doesn’t make buying this ETF today a sure thing. Like FY24 before it, the Betashares Nasdaq 100 ETF’s FY25 will be made or broken by the performance of its top holdings.

If the US economy remains strong, global geopolitical tensions don’t rise any further, and the presidential election in November goes relatively smoothly, then there’s a decent chance that NDQ’s top holdings (and thus the ETF itself) will have another successful year this financial year.

But that is a lot of ifs. If one or more of these factors turns sour, the Betashares Nasdaq 100 ETF could well take a major haircut in FY25.

Who knows how the NDQ ETF will fare on the ASX in FY25? Whatever happens, it will be well worth watching.

The post Can the BetaShares Nasdaq 100 ETF (NDQ) give ASX investors another 32% in FY25? appeared first on The Motley Fool Australia.

More reading

• Top ASX shares to buy for FY25
• ASX NASDAQ (NDQ) ETF: Up 30% in a year, should you buy now or wait?
• Buy these market-beating ASX ETFs in FY25
• Top ASX shares to buy in July 2024
• Could these be the best ASX tech ETFs to buy for FY25?

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Apple, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Apple, BetaShares Nasdaq 100 ETF, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom and 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 positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A rising number of Australians expect to still be paying off their home loans when they enter retirement, according to superannuation provider Vanguard.

A survey of 1,800 people aged over 18 found that 45% of Gen Z respondents believed they’d still be paying off their mortgage by the time they were ready to retire.

Gen Zs were born between 1996 and 2010.

The survey found 32% of Gen X respondents also expected to still be paying off their property loans in retirement.

Gen Xers were born between 1966 and 1980. This is the next generation due to retire, with the elders of the group turning 58 this year.

This is two years shy of the superannuation preservation age and nine years shy of the ‘retirement age’, which refers to the age at which Australians are eligible for the age pension.

Gex Xers have varying intentions on how to deal with their mortgages when they decide to give up work.

What will Gen Xers do when they enter retirement?

Vanguard said 38% of Gen X respondents intended to keep paying off their mortgages in retirement.

Another 25% planned to use their superannuation savings to wipe out the debt in one hit. And 18% said they would consider selling their mortgaged home and repaying the debt when they quit work.

Among Millennials, 29% also think they’ll still have a mortgage when they enter retirement. Millennials were born between 1981 and 1995.

Vanguard’s How Australia Retires report also revealed that 8% of retirees today are paying off a home loan.

The latest data from the Australian Bureau of Statistics (ABS) shows there are 4.2 million retirees in the community today. So, 8% equals 336,000 homeowners.

Expert says this is a ‘sleeper issue’ in our economy

Vanguard Australia managing director Daniel Shrimski said the rising number of people expecting to retire with a mortgage or rent their homes during retirement was a “sleeper issue”.

He said:

After working hard and saving for the majority of our lives, Australians want to feel excited about a financially secure retirement.

However, our research has revealed nearly 1 in 5 Australians are renting in retirement, and 30 per cent of working Australians expect to still be paying a mortgage after they retire.

This is a bit of a sleeper issue when it comes to retirement. We tend to presume we’ll be homeowners and mortgage free – but having unresolved debt or needing to drawdown on savings to pay rent is likely to be a big financial burden for many, especially if full-time paid work is no longer an option.

This is an important point, considering that four of the top five reasons for retirement are beyond the control of workers.

They include sickness, injury, or disability (which prompted 13% of current retirees to quit work), being retrenched, dismissed, or unable to find work (5%), and caring for an ill, disabled, or elderly person (3%).

This is one of the reasons why many Australians retire earlier than initially planned. As we’ve previously reported, the average age at which most workers intend to retire is 65.4 years. However, existing retirees report retiring much earlier than this at an average age of 56.9 years.

Shrimski added:

This is why it’s so important that a robust superannuation balance is part of a ‘whole of wealth’ retirement plan, so Australians can have confidence and security in retirement.

According to the research, homeowners who are not in a relationship have a 31% higher chance of retiring with a mortgage.

The post Will you still be paying a mortgage in retirement? appeared first on The Motley Fool Australia.

More reading

• Can the BetaShares Nasdaq 100 ETF (NDQ) give ASX investors another 32% in FY25?
• These ASX shares can rise 25% to 40%
• Why did the Core Lithium share price crash 90% in FY 2024
• Bell Potter names 3 of the best ASX 200 stocks to buy in July
• Are you contributing enough to superannuation for your income bracket?

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 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.

If you want to supercharge your investment portfolio, then it could be worth checking out these ASX shares in this article.

That’s because they have been named as buys and tipped to deliver mouth-watering returns over the next 12 months. Here’s what analysts are saying about them:

Regal Partners Ltd (ASX: RPL)

This fund manager’s shares could be undervalued according to analysts at Bell Potter.

It highlights that the ASX share has come under pressure since some significant selling from a former insider. However, rather than being concerned by the selling, it feels this has created an “excellent” buying opportunity. The broker commented:

RPL is performing well, generating strong net flows, strong investment returns, high fee income and benefitting from increased scale through acquisitions. The shares have been weak since the sell down of stock by Rob Luciano on 21 June. (10m shares sold at $3.22, a 9% discount). We feel this recent weakness offers an excellent opportunity to buy into an attractive growth story, with strong momentum and a widening shareholder base. Updating our model for the performance fees and FUM increases our FY24 EPS figure by 0.7% but reduces FY25 and FY26 by 2.3%.

Bell Potter has a buy rating and $4.75 price target on its shares. This implies potential upside of almost 40% from current levels.

Treasury Wine Estates Ltd (ASX: TWE)

Over at Goldman Sachs, its analysts see plenty of upside in this wine giant’s shares.

The broker highlights that its shares are trading on lower than normal multiples. This is despite its very positive outlook thanks to acquisitions, the removal of Chinese tariffs, and the expansion of the Penfolds business. It said:

Our Buy rating on TWE is premised on accelerating double-digit EPS growth in FY24-27e driven by 1) continued global expansion of Penfolds, especially post the removal of China import tariffs on Australian wine; our recent channel checks suggest positive reception to the returning Australian sourced Penfolds and we expect a ~63pct pre-tariff recovery by 2027; and 2) its rank as the #1 luxury wine company in the US (most sales in luxury wine) with the recent acquisitions of Frank Family Vineyards (FFV) and DAOU which have been growth and margin accretive, combined with a stable portfolio of Premium Brands. TWE is trading modestly below the 5-year historical P/E average.

Goldman has a buy rating and $15.40 price target on its shares. This suggests that they could rise 26% from current levels.

WA1 Resources Ltd (ASX: WA1)

Analysts at Bell Potter also think that this niobium explorer could be an ASX share to buy if you have a high risk tolerance. This is thanks to its Luni niobium project, which is on track to be a globally significant project. The broker commented:

We see the potential for Luni to be a globally significant niobium project, capable of generating on average A$514m in annual EBITDA. Using Lynas as a comp, which trades on a 10.9x EV/EBITDA multiple, yields an enterprise value of A$5.6bn for WA1.

Bell Potter has a speculative buy rating and $28.00 price target on its shares. This implies potential upside of 32% for investors.

The post These ASX shares can rise 25% to 40% appeared first on The Motley Fool Australia.

More reading

• ‘We are excited’: Why this ASX mining stock is rocketing 14%
• 4 excellent ASX 200 blue chip shares to supercharge your investment portfolio
• Here’s why brokers say these ASX growth shares are top buys
• Leading brokers name 3 ASX shares to buy today
• Brokers name 3 ASX shares to buy now

Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates. 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 Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Core Lithium Ltd (ASX: CXO) share price came under intense selling pressure in the financial year just past.

Shares in the All Ordinaries Index (ASX: XAO) lithium stock closed out FY 2023 trading for 90 cents. On 28 June, the last day of FY 2024, shares closed the day at 9.3 cents apiece.

That put the Core Lithium share price down a painful 89.7% over the financial year.

Here’s why the ASX lithium miner just finished off a year to forget.

What happened to the Core Lithium share price in FY 2024?

Most of the pressure heaped onto the Core Lithium share price came from an ongoing slide in global lithium prices.

With lithium supplies ramping up faster than demand growth over the year, the lithium carbonate price ended FY 2024 at around US$11,000 a tonne. That’s well down from the 2022 all-time highs. And it’s less than a third of the US$32,000 a tonne that lithium prices averaged in 2023.

While there were a few sizeable moves higher for the Core Lithium share price over the 12 months, the trend was sharply lower, as you can see in the chart above.

The 2024 calendar year started poorly.

On 5 January, the miner announced it was suspending mining operations at its flagship Finniss Project in the Northern Territory in early January. With lithium prices crashing, management said it was unprofitable to continue mining.

While continuing to process its established ore stockpiles, Core Lithium indicated it was unlikely to resume operations at Finniss until lithium prices have recovered.

The company’s half-year results, released after market close on 12 March, also left much to be desired.

For the first six months of FY 2024, Core reported revenue of $135 million and a loss after tax of $167 million. The company also announced that CEO Gareth Manderson was leaving the top job.

The Core Lithium share price crumbled by 30% over the five trading days following the half-year announcement.

And the miner’s 3Q FY 2024 results, released on 29 April, did little to placate shareholders.

While Core continued to process ore stockpiles, quarterly spodumene concentrate production declined by 14% from the prior quarter.

Commenting on those results at the time, interim CEO Doug Warden acknowledged that, “Following the decision to cease mining in January 2024, it has been a challenging quarter for Core employees, contractors and shareholders.”

As for FY 2025, the Core Lithium share price closed the first trading week of the new financial year flat at 9.1 cents.

The post Why did the Core Lithium share price crash 90% in FY 2024 appeared first on The Motley Fool Australia.

More reading

• Guess which 2 ASX All Ordinaries shares were the best and worst performers of FY24?
• ASX lithium shares: Screaming bargains or falling knives?
• Which ASX lithium shares are financially primed to survive this rut?
• Will FY25 be kinder to Core Lithium shares?
• The Core Lithium share price is down 36% in a month. Time to pounce?

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.

If you’re in the market for some new ASX 200 shares in July, then it could be worth listening to what analysts at Bell Potter are saying.

That’s because they have just revealed their favoured picks for the month ahead. Three on its list this month are named below. Here’s what the broker is saying about them:

Mineral Resources Ltd (ASX: MIN)

Bell Potter continues to see a lot of value in this mining and mining services company’s shares at current levels.

Its analysts like the company due to the diversity of its operations and its strong production growth potential. It said:

Our Buy view is underpinned by MIN’s earnings diversification, strong insider ownership, clearly articulated strategies, expertise in contracting and internal growth options at Onslow as well as potential lithium expansions including into downstream. All up, MIN offers diversified exposure to steady income streams from the contracting business and market-driven commodity exposure coupled with earnings derived from both lithium and iron ore.

Bell Potter has a buy rating and $84.00 price target on the ASX share. This implies potential upside of approximately 45% for investors.

Neuren Pharmaceuticals Ltd (ASX: NEU)

Another ASX 200 stock that could be a buy in July according to the broker is Neuren Pharmaceuticals. It is a growing biotechnology company developing treatments for rare diseases of the central nervous system.

Bell Potter is particularly positive on its NNZ-2591 product and believes it could be a key driver of growth in the coming years. It said:

In the last six months, NNZ-2591 reported highly encouraging Phase 2 data in two rare diseases. NEU will once again have first-to-market opportunities in these two rare diseases, assuming future Phase 3 trials are successful. While short-term news will continue to be impacted by Acadia’s commercialisation of NEU’s first drug, called Daybue, we maintain our BUY recommendation for investors who have a longer 2 to 3-year investment horizon.

Bell Potter has a buy rating and $28.00 price target on its shares. This suggests that upside of 40% is possible for investors.

Perpetual Ltd (ASX: PPT)

The broker believes that this ASX 200 stock could be seriously undervalued by the market. Especially given the recently announced sale of its Corporate Trust (CT) and Wealth management (WM) businesses to private equity firm KKR.

It believes this makes the remaining business cheap compared to peers. It explains:

Perpetual announced a disposal of the Corporate Trust (CT) and Wealth Management (WM) businesses to KKR for $2.175bn. This price was ahead of our expectations ($1.5-1.9bn), and should result in a cash payment to shareholders of between $804m-1,104m or $6.95- 9.55 per share, dependent upon the assumptions, particularly tax and deal costs. We estimate the residual asset management business is being valued at between $1.3-1.6bn or between 3.5x-5.5x EBITDA. We believe this is too low for an international asset manager. Valuing the residual asset management business on 6.3x FY25 would imply a value of $2.1bn or $18.17/per share.

Bell Potter has a buy rating and $27.60 price target on its shares. This reflects ~$18.17 for the remaining business and a forecast cash distribution of ~$9.50. Based on its current share price, this implies potential upside of 28% for investors.

The post Bell Potter names 3 of the best ASX 200 stocks to buy in July appeared first on The Motley Fool Australia.

More reading

• Best 3 ASX 200 healthcare shares for price growth in FY24
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Which ASX lithium shares are financially primed to survive this rut?
• This ASX stock just announced a special dividend with a 20% yield

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 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.

As you plan for retirement, it’s essential to ensure that your superannuation contributions align with your income bracket. Contributing enough to your super is vital for securing a comfortable retirement, but many Australians are unsure if they’re doing enough.

In this article, we’ll explore average super contributions and balances across income groups. Understanding where you stand in your income bracket can empower you to make informed decisions towards a financially secure retirement.

Average and median superannuation balances by income group

Let’s begin by examining the superannuation balances of Australians across different income brackets. According to the Australian Taxation Office, here are the average and median super balances for FY21 and FY22 by income bracket:

Taxable income	Average balance 2020–21	Average balance 2021–22	Median balance 2020–21	Median balance 2021–22
$18,200 or less	$200,833	$161,473	$31,237	$21,374
$18,201 to $45,000	$102,045	$98,453	$18,047	$17,127
$45,001 to $180,000	$153,187	$142,818	$77,930	$70,374
$120,001 to $180,000	$325,265	$295,925	$200,164	$178,728
$180,001 or more	$615,266	$573,053	$331,971	$303,980
No income tax return	$132,312	$132,854	$36,568	$40,888
Total	$170,191	$164,126	$59,883	$57,912

• Lower-income earners: For those making $18,200 or less, the average and median super balances dip noticeably. This change signals a need for extra support to help the lower-income group grow their retirement savings.
• Steady despite challenges: Interestingly, individuals without a taxable income managed a slight increase in their average super balance. This resilience suggests various factors are at play, including possibly government co-contributions that helped buoy their savings.
• Middle-income group: Those earning between $45,001 and $180,000 saw their super balances shrink a bit. Despite this, their continued accumulation of substantial savings points to the importance of regular contributions and the benefits they bring over time.
• High earners: The top earners, those with incomes of $180,001 or more, experienced a decrease in their average balance but still maintained significant savings. This highlights how higher contribution limits and perhaps more aggressive investment strategies can pay off.

How much did Aussies contribute to super?

The ATO’s FY22 data breaks down individuals’ superannuation contributions by taxable income brackets. The original data is separated by gender, age, and income range, but I combined them to find subtotals and calculated averages for each income group.

Income range	Employer	Personal	Other	Total contribution
$18,200 or less	$1,037	$5,595	$1,718	$8,350
$18,201 to $45,000	$3,070	$2,890	$480	$6,440
$45,001 to $180,000	$7,766	$2,070	$530	$10,366
$120,001 to $180,000	$13,842	$4,083	$1,288	$19,213
$180,001 or more	$19,103	$9,284	$1,918	$30,306
No income tax return	$4,757	$4,044	$2,171	$10,972

The ATO’s FY22 data shows significant variation across different income brackets:

• $18,200 or less: This group made total contributions averaging $8,350, with the majority coming from personal contributions of $5,595.
• $18,201 to $45,000: Contributions totalled $6,440, with employer contributions of $3,070 being the largest component.
• $45,001 to $120,000: Total contributions reached $10,366, predominantly from employer contributions amounting to $7,766.
• $120,001 to $180,000: This income range had contributions of $19,213, with a substantial amount coming from employer contributions at $13,842.
• $180,001 or more: Contributions were highest in this bracket, totalling $30,306. Employer contributions were again the largest part at $19,103.
• No income tax return: This group made contributions totalling $10,972. However, this group has a more balanced distribution among employer, personal, and other contributions.

This data highlights that higher income groups generally contribute more to their superannuation, with employer contributions being the primary source across all brackets.

It’s encouraging to note that Australians across different income levels are actively making additional contributions to their super accounts, taking advantage of the tax benefits offered by super.

I hope your super contributions are on a par with other Aussies making similar income. Explore more about superannuation here for additional insights.

The post Are you contributing enough to superannuation for your income bracket? appeared first on The Motley Fool Australia.

More reading

• These ASX shares can rise 25% to 40%
• Why did the Core Lithium share price crash 90% in FY 2024
• Bell Potter names 3 of the best ASX 200 stocks to buy in July
• 3 things about Vanguard US Total Market Shares Index ETF (VTS) every smart investor knows
• Forget CBA and buy these ASX dividend stocks

Motley Fool contributor Kate Lee 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.

The Vanguard US Total Market Shares Index ETF (ASX: VTS) is a high-quality exchange-traded fund (ETF) that most people would have benefited from owning in the last five years. The unit price has gone up more than 80%, as shown on the chart below.

The US share market is home to many of the world’s biggest and strongest businesses including Microsoft, Apple, Nvidia, Alphabet (which owns Google), Amazon, Meta Platforms, Berkshire Hathaway, Eli Lilly & Co, Broadcom and JPMorgan Chase & Co.

Households that invest in the VTS ETF can get exposure to most of the US share market because it has over 3,700 holdings. That’s a lot of diversification in one investment. While the holdings are listed in the US, the underlying earnings come from across the world.

Having said that, I think there are (at least) three things that some investors need to know about this fund.

Extremely low fees

One of the best reasons to invest in this ASX-listed ETF is the fact that it has exceptionally low management costs.

The lower the fees, the more returns stay in the hands of investors. Therefore, low fees are good for long-term investing and wealth building. Of course, there’s more to being a good investment than just low fees, but it’s a very useful element.

According to Vanguard, the VTS ETF has an annual management fee of just 0.03%. Let’s compare that to a few other options.

The Vanguard MSCI Index International Shares ETF (ASX: VGS) has an annual fee of 0.18%.

The Betashares Nasdaq 100 ETF (ASX: NDQ) has an annual management fee of 0.48%.

The iShares S&P 500 ETF (ASX: IVV) has an annual fee of 0.04%.

The VTS ETF is cheaper than its rivals, though the IVV ETF fee is very similar.

Great financial metrics

Every month, Vanguard tells investors what the financial metrics of its ETFs are.

The financial ‘characteristics’ of the VTS ETF are very positive because of the strength of the businesses within the US share market.

According to Vanguard, as of 31 May 2024, the VTS ETF had a return on equity (ROE) of 24%. That shows that the companies within the ETF are generating enormous profits for how much shareholder money is being retained within the businesses. It may also suggest that these businesses can keep growing profit at a good rate if they continue reinvesting for ongoing growth.

Vanguard also said the earnings growth rate is currently 15.7%, which is a strong rate of compounding of the earnings per share (EPS). Long-term double-digit EPS growth can translate into double-digit shareholder returns over time, even if there is a bit of volatility along the way.

Becoming more concentrated

While the performance of US shares has been stunning, we should keep in mind that the American stock market’s performance is being driven by a few large US tech shares.

I’m talking about names like Nvidia, Microsoft, Apple, Alphabet, Amazon and Meta Platforms. The stocks alone account for more than a quarter of the portfolio – a fund that owns over 3,700 businesses.

It’s understandable that these stocks are becoming a larger share of the US market because their profits and market capitalisations keep rising over time. However, if this trend continues, it reduces the effectiveness of diversification, and the VTS ETF could become very reliant on those stocks delivering returns to do well.

The post 3 things about Vanguard US Total Market Shares Index ETF (VTS) every smart investor knows appeared first on The Motley Fool Australia.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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 Tristan Harrison 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 Alphabet, Amazon, Apple, Berkshire Hathaway, BetaShares Nasdaq 100 ETF, JPMorgan Chase, Meta Platforms, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom and 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 positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Commonwealth Bank of Australia (ASX: CBA) shares are a popular option for income investors.

But with many analysts saying that the banking giant’s shares are overvalued at current levels, it may not be the best pick right now.

But which ASX dividend stocks could be good alternatives? Let’s take a look at three:

Challenger Ltd (ASX: CGF)

This annuities company could be an ASX dividend stock to buy right now according to analysts at Goldman Sachs.

The broker likes Challenger due to its “exposure to the growing superannuation market” and its belief that “higher yields should drive a favorable sales environment for retail annuities.”

In respect to income, Goldman is forecasting fully franked dividends of 26 cents per share in FY 2024 and then 27 cents per share in FY 2025. Based on the current Challenger share price of $6.82, this will mean dividend yields of 3.8% and 4%, respectively.

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

Healthco Healthcare and Wellness REIT (ASX: HCW)

Another ASX dividend stock that could be a good option for income investors is the Healthco Healthcare and Wellness REIT.

It is a real estate investment trust with a focus on healthcare and wellness assets. This includes hospitals, aged care, childcare, government, life sciences and research, and primary care and wellness properties.

Morgans is very positive on the company and believes it is well-placed to pay dividends per share of 8 cents in FY 2024 and then 8.3 cents FY 2025. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.08, this will mean yields of 7.4% and 7.7%, respectively.

Morgans has an add rating and $1.50 price target on its shares.

Telstra Group Ltd (ASX: TLS)

Analysts at Goldman Sachs also think that income investors should buy Telstra shares.

It continues to see a lot of value in the telco giant at current levels. Particularly given its low risk growth.

In addition, it is expecting some good yields from its shares. The broker is forecasting fully franked dividends of 18 cents per share in FY 2024 and then 18.5 cents per share in FY 2025. Based on the current Telstra share price of $3.70, this equates to yields of 4.9% and 5%, respectively.

Goldman has a buy rating and $4.25 price target on the ASX dividend stock.

The post Forget CBA and buy these ASX dividend stocks appeared first on The Motley Fool Australia.

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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 positions in and has recommended Telstra 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.

The best five ASX 200 energy shares of FY24 included three uranium stocks, a thermal and metallurgical coal stock and an oil stock.

Let’s check them out.

Top 5 ASX 200 energy shares of FY24

These are the five best-performing ASX 200 energy shares for capital growth in FY24, according to data from S & P Global Market Intelligence.

Deep Yellow Limited (ASX: DYL)

Deep Yellow was the best-performing energy share on the ASX 200 last financial year. The Deep Yellow share price soared by 77.5% in FY24.

Rising global demand for uranium lifted the commodity price again in FY24.

This provided a strong tailwind for Deep Yellow and other ASX uranium shares. That’s why the three top-performing ASX 200 energy shares for FY24 are all uranium stocks.

The United States and 20 other countries intend to triple their nuclear power by 2050. This is creating strong demand for uranium across the globe.

Paladin Energy Ltd (ASX: PDN)

Paladin Energy was the second top-performing ASX 200 uranium stock in terms of share price growth. Its share price rose 71% in FY24.

In the last week of FY24, the company announced plans to acquire 100% of Canadian uranium miner Fission Uranium Corp. (TSX: FCU) for 0.1076 shares for each Fission share.

Boss Energy Ltd (ASX: BOE)

The third best-performing ASX 200 energy share of FY24 was Boss Energy, up 33.2% over the 12 months.

Boss finished FY24 on a high after announcing the commencement of production at its joint venture mine, Alta Mesa, located in Texas, United States, in June. The news came eight weeks after Boss announced the start of production at its 100%-owned Honeymoon project in South Australia.

Whitehaven Coal Ltd (ASX: WHC)

Whitehaven was the top-performing ASX 200 coal stock in FY24 and the fourth-best among ASX 200 energy shares. But its share price gain wasn’t anything spectacular. Whitehaven shares lifted 14% in FY24.

ASX coal stocks are generally off the boil as commodity prices cool down. Newcastle futures reached a peak of about US$440 per tonne in September 2022 (in the first half of FY23). Today, they’re trading closer to US$140 per tonne. Newcastle coal futures fell by about 9% in FY24.

A tailwind for Whitehaven shares in FY24 was the company’s US$3.2 billion acquisition of the Daunia and Blackwater metallurgical coal mines from BHP Group Ltd (ASX: BHP). This gave the company a more even split between its thermal and met coal assets, thereby enhancing its production and sales profile.

Beach Energy Ltd (ASX: BPT)

Beach Energy outperformed much larger rivals like Woodside Energy Group Ltd (ASX: WDS) in terms of share price gains in FY24. It was the top ASX 200 oil stock for the year and also the fifth-best-performing ASX 200 energy share with a modest 10.4% share price gain.

Oil stocks were volatile in FY24, and commodity prices fluctuated. The price of Brent Crude, the international oil commodity benchmark, rose by about 14% over the year.

Conflict in the Middle East may create issues with oil supply in the future, especially if Iran gets involved. OPEC+ production cuts and US stockpiles influenced the Brent Crude oil price last year.

The post Best 5 ASX 200 energy shares for price growth in FY24 appeared first on The Motley Fool Australia.

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• The best ASX 200 share of each market sector in FY24
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• Why Boss Energy, DroneShield, Jumbo, and Raiz shares are falling today

Motley Fool contributor Bronwyn Allen has positions in BHP Group and Woodside Energy Group. 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.