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The Lake Resources share price has had a stellar month. The company’s share price has surged nearly 56% from $1.25 at close on 14 March to today’s price of $2.00.

At the time of writing, shares in the lithium explorer are up 8.7%, trading at $2.00 despite no news from the company.

So what has been impacting this share in the last month?

Why has the Lake Resources share price soared?

The Lake Resources share price reached a high of $2.45 on 4 April before retreating. This was more than double the company’s share price a month ago.

Company news and market sentiment towards electric vehicles (EV) have likely impacted the Lake share price. Lake explores lithium, a critical component of EV batteries.

On 29 March, the Lake share price surged nearly 15% amid an agreement with Japan company Janwa Co.

Lake signed a non-binding memorandum of understanding for offtake of up to 25,000 tonnes per annum (tpa) of lithium carbonate from the Kachi project in Argentina.

Company management hopes to produce 100,000 tonnes of lithium by 2030.

Meanwhile, on 11 April, the company’s share price leapt nearly 7% higher amid an agreement with Ford Motor Company. Under the deal, Lake will provide Ford with 25,000 tpa of lithium from the Argentina project. Shares charged up 16% in early trade on this day before pulling back.

On 12 April, Bell Potter lifted its price target on the Lake Resources share price by 55% to $2.83. Bell Potter said:

LKE’s key project is the 50ktpa lithium carbonate Kachi Lithium Brine Project in Argentina. This project is expected to employ direction lithium extraction technology which has enormous ESG benefits compared with incumbent brine and hard rock lithium production methods

Lithium explorers could see the entrance of a new high profile entrepreneur into the market in the future. On Saturday, Elon Musk tweeted Tesla may take up lithium mining.

Lake Resources share price snapshot

The Lake Resources share price has exploded 533% in the past 12 months and is up 97% this year to date.

In contrast, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned about 7% in the past year.

Lake Resources has a market capitalisation of about $2.5 billion.

The post The Lake Resources share price has surged 56% in a month. What’s happening? appeared first on The Motley Fool Australia.

More reading

• Why is the Lake Resources share price powering down by 8% today?
• Lithium watch: Broker tips Lake Resources share price to rocket 42% higher
• How did ASX lithium shares perform today?
• Here are the top 10 ASX shares today
• Why IGO, Lake Resources, Regis Resources, and ResApp shares are charging higher

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 Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Netflix (NASDAQ: NFLX) is having a rough first few months in 2022. Due to multiple factors, including rising competition and headwinds from the economy’s reopening, the stock is down over 40%.

The company will be reporting first-quarter earnings on April 19, and that event could create a buying opportunity for long-term investors in the coming weeks. Let’s look at why that might be the case. 

Netflix is way ahead of the competition 

Usually, Netflix adds roughly 8.4 million subscribers in the first quarter, including cancellations. At least, that’s been the average in the first quarter, going back to 2017. Management has set the bar much lower this year. Netflix guided investors to look for additions of just 2.5 million in Q1 of this year, which is 5.9 million below its historical average. The lowered expectations make it more likely that Netflix will surpass those estimates. However, if it reports less than the 2.5 million figure, that could trigger further selling of Netflix stock.

That scenario would be a buying opportunity for long-term investors, barring any commentary from management that suggests there are serious problems. Don’t get me wrong — slowing subscriber growth is not something to ignore. That said, the stock has arguably already paid the price, falling 42% so far in 2022. Furthermore, the coronavirus pandemic may have boosted subscriber growth during the initial lockdown phases, but that likely brought forward customers who may not have signed up until 2022 or 2023. Understandably, growth would slow after a massive surge. 

That brings me to the fear of rising competition. Netflix has had more than a decade’s head start on most of these new entrants. It already boasts 222 million paying subscribers, while The Walt Disney Company is the only other one that claims over 100 million. Moreover, Netflix’s 222 million subscribers generated nearly $30 billion in revenue in 2021, and it’s already on pace for more in 2022. The massive scale gives Netflix a difficult-to-match content budget. In 2021, it spent $17.7 billion on content, $6 billion more than in 2020.

NFLX Operating Margin (TTM) data by YCharts

Perhaps more importantly, even though Netflix is boosting spending on content, it is doing so responsibly. The restraint could be demonstrated by observing the rise in Netflix’s operating profit margin in the last five years. The company is balancing a rising content budget with an intent to increase profitability. Indeed, management’s long-term outlook has stated a goal of steadily increasing the operating profit margin each year.

The sell-off has Netflix trading at bargain prices 

Netflix is trading at price-to-sales and price-to-earnings ratios of 5.3 and 31, respectively. Those are near the lowest valuations it has sold for in the last five years. As I mentioned earlier, the company is paying the price for slowing growth and concerns over competition. 

NFLX PS Ratio data by YCharts

However, Netflix has a powerful secular tailwind at its back from consumers canceling traditional cable subscriptions and moving to streaming services. Additionally, a rise in the quantity and quality of mobile devices means people have more opportunities to stream content.

There will undoubtedly be volatility in the near term, especially surrounding the company’s earnings report on April 19. Still, in the long run, Netflix could steadily increase subscribers and profits for several years — and it could be an excellent stock to buy in the coming weeks. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Netflix could be a buy in the coming weeks appeared first on The Motley Fool Australia.

More reading

• 3 reasons to buy Netflix, and 1 reason to sell
• Better buy: Netflix vs Nvidia
• 5 of the fastest-growing stocks on the planet
• Are Netflix bears looking at the wrong numbers?

Parkev Tatevosian owns Netflix and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Netflix and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. The Motley Fool Australia has recommended Netflix and Walt Disney. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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ASX gold shares have, as a whole, enjoyed an excellent year so far in 2022.

To give you a broad picture, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) has gained 13.2% since the opening bell on 4 January.

By comparison, the All Ordinaries Index (ASX: XAO) has lost 2.2% year to date.

ASX gold shares shining bright amid rising gold prices

The common tailwind that all ASX gold shares have been enjoying is the increasing price of the yellow metal they dig from the ground.

On 4 January, when the ASX opened for the first day of trading in 2022, gold was trading for US$1,801 (AU$2,401) per troy ounce, according to data from Bloomberg. Today that same ounce is worth US$1,969, an increase of more than 9%.

That increase helped push the Evolution Mining Ltd (ASX: EVN) up 10.3% this calendar year. Meanwhile, the Northern Star Resources Ltd (ASX: NST) share price has gained 15.9% while Regis Resources Ltd (ASX: RRL) shares are up 19.5% year-to-date.

Of course, that’s all water under the bridge now.

So, what can investors expect for gold and ASX gold shares next?

“It appears gold could be about to kick off a bull trend supported by higher borrowing costs (yields), Russian tension lingering, and lockdown concerns,” says Jessica Amir, Australian market strategists at Saxo Markets. “Gold has historically outperformed equities every time the Fed rose interest rates, with a suite of hikes.”

In the year ahead, Saxo sees gold stocks “thriving and seeing higher earnings and share price growth”.

An international gold stock to consider

Atop a broad choice of outperforming ASX gold shares, there are numerous large-cap gold stocks listed in the United States, and elsewhere.

Amir singles out Newmont Mining Corp (NYSE: NEM) as a gold share to consider for investors who believe gold will continue to rally.

According to Amir:

The biggest gold company in the world is arguably Newmont, which makes 86% of its money from gold, and 5% from silver. Newmont shares are trading 35% up this year, and given its 2022 earnings are expected to rise (Q1 earnings due 22 April), Newmont is one to watch.

You’d also expect the company to upgrade its outlook for 2022 for gold, supporting its income rising and earnings (EBITDA). Remember rising earnings generally supports share price growth.

Whether you’re looking into ASX gold shares or international companies, keep an eye on those factors Amir pointed out that could impact the price of gold.

The post ‘Thriving’ ASX gold shares to see more growth in 2022: expert appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX mining companies by market cap
• 5 things to watch on the ASX 200 on Wednesday
• Leading brokers name 3 ASX shares to sell today
• 5 things to watch on the ASX 200 on Tuesday
• Why IGO, Lake Resources, Regis Resources, and ResApp shares are charging higher

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 Bruce Jackson.

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The AMP Ltd (ASX: AMP) share price is edging higher today following a company update on the Collimate Capital demerger.

At the time of writing, the financial services company’s shares are trading at $1.045, up 1.95%.

What did AMP announce to the ASX?

In its announcement, AMP disclosed that it won’t be undertaking a share consolidation in the annual general meeting (AGM) on 20 May as previously advised.

Last month, the company stated in its annual report that a resolution would be put forward regarding the demerger of its private markets business Collimate Capital. However, this date has been pushed back until the vote in June on the proposed demerger.

AMP noted that further information on the share consolidation and process for shareholder approval will be provided prior to the shareholder meetings.

The demerger process will be conducted through a legal process known as a scheme of arrangement. This will include a number of steps such as obtaining approval from shareholders as well as court approval.

When the demerger is complete, Collimate Capital will trade as a separate company listed on the ASX.

AMP said that shareholders will be sent details of the demerger, including voting and upcoming shareholder meetings in due course.

Furthermore, the company mentioned that it has also received enquiries from other parties expressing interest in the Collimate Capital business.

More on Collimate Capital

Following a review of AMP’s business portfolio, management declared its intent to separate and demerge Collimate Capital in April 2021.

The reason behind the motive is that AMP is made up of two distinctly different businesses — a domestic retail wealth manager and a global private market (infrastructure and real estate) business with institutional clients.

Management believes that separating the businesses will accelerate their individual growth strategies, enhance customer focus, and deliver value to shareholders.

AMP share price snapshot

Over the past 12 months, AMP shares have fallen by 14% in value. Most of these losses occurred towards the backend of 2021.

Although, when looking year to date, the company’s shares are up by around 3%.

Based on today’s price, AMP commands a market capitalisation of roughly $3.4 billion.

The post Own AMP shares? Here’s the latest on the company’s planned demerger appeared first on The Motley Fool Australia.

More reading

• Can the AMP share price finally turn the corner in April?
• AMP share price hits $1 mark for first time since February: analysis
• Own AMP shares? Here’s how this ASX company did in March
• AMP (ASX:AMP) share price lower on asset sale news
• The AMP (ASX:AMP) share price gained on Friday, what happened?

Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

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Shares in CSR Ltd (ASX: CSR) are flat today and holding the line at $6.05 apiece. As we approach the mid-point in April, CSR shares are just 8% higher in the past 12 months.

After trading within a fairly wide sideways channel in that time, shares have recently spiked from a low of $5.54 in March to sit back near 52-week highs.

What about the CSR dividend?

Whilst dividend growth has been lumpy over recent years, payment consistency has been a forte of CSR’s for more than 30 years now.

“CSR has paid twice yearly dividends every year since 1990 as well as issuing periodic special dividends,” according to TMF.

“The company’s dividends vary between unfranked, partially franked and fully franked and are typically paid in July and December each year. CSR has also executed a number of share buybacks over the past 15 years.”

Most recently, it paid a fully franked interim dividend of 13.5 cents on 10 December 2021.

Analysts are baking in a fairly stable growth schedule over the coming periods for CSR as well. If there are no hiccups, CSR could recognise a pre-tax profit of $142 million in H2 FY22, up from $126 million in H1, according to Bloomberg consensus estimates.

As a result, consensus forecasts for CSR’s dividend are for a 16.2 cents per share payment in H2 FY22, followed by a 16.3 cents per share payout in H1FY23.

Factoring in last year’s payment, that would bring the FY22 dividend to 29.7 cents per share, with full franking credits available as a taxable offset.

At the current share price, that signifies a forward dividend yield of 4.89%, higher than most investment grade fixed income instruments at the moment.

On a sequential basis, the dividend growth forecasted over the next few semi-annual periods is set to outpace the level of inflation, in real terms.

In the last 12 months, CSR shares have spiked 8% and are now up 3% for the year to date.

The post How big will the CSR dividend be in 2022? appeared first on The Motley Fool Australia.

More reading

• Top broker warns this ASX 200 share may be next to issue a profit warning
• Guess what $10,000 worth of CSR (ASX:CSR) shares bought a decade ago looks like today
• Could the CSR (ASX:CSR) share price be set for a boost?
• The CSR (ASX:CSR) share price has a dividend yield of 7%. Does this make it a buy?

Motley Fool contributor Zach Bristow 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 Bruce Jackson.

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The Krakatoa Resources Ltd (ASX: KTA) share price is back in the red today following yesterday’s 94.92% surge.

At the time of writing, the Krakatoa share price is 10.5 cents, 8.7% lower than its previous close.

For context, the broader market is in the green on Wednesday. Right now, the All Ordinaries Index (ASX: XAO) has gained 0.28% while the S&P/ASX 200 Index (ASX: XJO) is up 0.19%.

Let’s take a closer look at what’s been going on with the precious metals explorer’s stock lately.

What’s weighing on Krakatoa shares today?

The Krakatoa share price is trading in the red on Wednesday despite no news being released by the company.

It’s possible the slip could be due to investors cashing in at a higher price, spurred by yesterday’s whopping gain.

That lift was inspired by a major ionic rare earth elements discovery at the company’s Mt Clere Project.

Drilling at the project’s Tower Prospects found thick intersections of clay hosting the elements.

For those unaware, rare earth elements are essential for all sorts of technology, including gadgets, cameras, machinery, and lights.

Krakatoa CEO Mark Major also pointed out that demand for rare earth elements was expected to take off over the coming decade. Major said:

We are now in a strong position to capitalise on this potential as we have only covered a six square kilometre area, mineralisation is open, thick, and close to surface.

Significantly, we have multiple other high priority targets within the extensive 2,300 square kilometre property.

About the Krakatoa share price

While today’s drop is likely to be disappointing for some, the Krakatoa Resources share price is still in a pretty good position.

Right now, it’s 19% lower than its 52-week high, reached in intraday trade yesterday. Comparatively, it’s trading for 162.5% more than its 52-week low of 4 cents.

It’s also trading 114% higher right now than it was at the start of 2022.

The post Krakatoa share price sinks 9% following Tuesday’s surge appeared first on The Motley Fool Australia.

More reading

• 3 ASX mining shares skyrocketing on major new discoveries
• Why Iress, Krakatoa Resources, Paradigm, and SE Advanced Materials are pushing higher
• Krakatoa Resources share price explodes 95% on major discovery

Motley Fool contributor Brooke Cooper 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 Bruce Jackson.

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The Webjet Limited (ASX: WEB) share price has been a positive performer on Wednesday.

In afternoon trade, the online travel agent’s shares are up 2.5% to $5.44.

Why is the Webjet share price taking off?

The catalyst for the rise in the Webjet share price today appears to have been a broker note out of Citi.

According to the note, the broker has upgraded the travel company’s shares to a buy rating with an improved price target on $6.50.

Based on the current Webjet share price, this implies potential upside of almost 20% for investors over the next 12 months.

What did the broker say?

Citi believes it is time for investors to check-in with Webjet, highlighting that the company could be a big winner from the COVID reopening.

And while the broker still expects Webjet to post a loss in FY 2022, it is forecasting a return to profit in FY 2023. Citi has forecast a loss per share of 13 cents in FY 2022, and then earnings per share of 18 cents in FY 2023 and 30 cents in FY 2024.

Based on the current Webjet share price, this would mean it currently trades at 30x FY 2023 earnings and a much more respectable 18x FY 2024 earnings.

Citi commented: “With a user pay business model largely exposed to volumes and low fixed costs, we expect Webjet should be a relative leader in re-opening stock earnings. Additionally we think B2B should return in a stronger position with an American growth leg, lower costs and a better industry position. While B2C has the opportunity to pick up share as Flight Centre shifts business online, and the number of domestic carriers increase. Subsequently we upgrade our rating to a Buy and a $6.50 target price.”

The post Webjet share price takes off following broker upgrade appeared first on The Motley Fool Australia.

More reading

• Why is the Webjet share price having such a lousy start to the week?
• These are the 10 most shorted ASX shares
• What went so wrong for ASX travel shares today?
• The Webjet share price is tumbling 5% on Thursday. Could this be why?
• ASX travel shares have been flying higher over the past month. Here’s why

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 recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The EML Payments Ltd (ASX: EML) share price is up more than 11% at the time of writing after the company confirmed it has been in takeover talks.

In a statement to the ASX, EML noted media speculation that the business has been subject to takeover interest from private investment group Bain Capital.

How close is a takeover for EML?

EML confirmed that it had been in talks with Bain Capital earlier in the year about a potential takeover proposal. However, those discussions have now ceased.

The board of EML said that it would always consider proposals presented to the company and that it’s fully committed to acting in the best interests of shareholders. The goal of EML’s board is to maximise value for shareholders, the company said.

While no deal happened, EML disclosed that it appointed Goldman Sachs as its financial advisor and Herbert Smith Freehills as its legal advisor.

What happens now?

According to reporting by the Australian Financial Review, sources indicated that Bain has walked away “for now” because of the high price tag after looking at the due diligence numbers.

Time will tell whether this activates other interested parties to start having a look at the global payments business.

The EML share price has fallen by 10% in 2022 to date, including today’s rise.

However, over the last year, the EML share price still registers a decline of 48%.

The post EML share price soars 11% amid takeover attention appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: AVZ and EML shares jump
• Takeover talks: EML share price in focus
• 5 things to watch on the ASX 200 on Wednesday
• These are the 10 most shorted ASX shares
• The EML share price jumped 25% in March 2022. What happened?

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. owns and has recommended EML Payments. The Motley Fool Australia owns and has recommended EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX dividend shares are back in the spotlight in 2022.

This comes in an environment of fast-rising prices, with interest rate hikes likely to follow. An environment that younger investors will have had no real life experience with.

As investors young and old have mulled the prospect of higher rates, growth shares, like many tech companies, have seen the brunt of the selling.

Witness the 21% decline in the S&P/ASX All Technology Index (ASX: XTX) so far in 2022, compared to the 2% loss posted by the All Ordinaries Index (ASX: XAO).

Many ASX dividend shares, on the other hand, have outperformed as investors seek income atop potential share price gains.

Why investors are increasing their focus on dividends

Ben Lofthouse is the head of global equity income at Janus Henderson Australia.

On the topic of ASX dividend shares, Lofthouse said:

In many cases, dividend investing is focused on sustainability of cash flows. Companies that can afford to pay dividends often have good profitability and strong balance sheets, something that provides support through periods of uncertainty.

During past periods of rising inflation and rising interest rates, equity valuations have often begun to stagnate or even decline in terms of P/E (price-to-earnings) ratios. During these periods, dividends have formed an important part of returns as investors are ‘paid to wait’ for more supportive conditions for equities more broadly.

Noting that current conditions make forecasting quite difficult, Lofthouse added, “With valuations of income stocks still relatively low versus the market, we are seeing some indications of a rotation toward these value companies.”

Two leading ASX dividend shares to consider

There are numerous ASX dividend shares to choose from. And many offer franking credits, enabling you to reduce your tax burden on the income they pay out.

Two leading ASX dividend shares worth investigating are BHP Group Ltd (ASX: BHP) and Macquarie Group Ltd (ASX: MQG).

Peter Gardner, co-founder of Plato Investment Management, lists both of these blue-chip stocks as his top two ASX dividend share picks. (Full details here.)

Gardner said that “Macquarie has continued to deliver consistent earnings growth and consistent dividends in recent years despite the challenges that have faced the financial services sector.”

He also noted that its cash-heavy balance sheet “indicates it can sustainably grow dividends in the foreseeable future.”

As for why BHP is one of his top ASX dividend share picks, Gardner said, “The big Australian is in a really good position to continue delivering big dividends for its Australian shareholders.”

The post How ASX dividend shares can provide support through periods of uncertainty appeared first on The Motley Fool Australia.

More reading

• Own BHP shares? Here’s why the miner could be gearing up to offload more carbon-heavy projects
• Here are the top 10 ASX mining companies by market cap
• What is the biggest mining company on the ASX right now?
• These are the 2 best ASX dividend shares to buy right now: fund manager
• ASX mining shares were the leaders last quarter. Here are the top performers

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 Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On paper, the Vanguard MSCI Index International Shares ETF (ASX: VGS) might look like one of the most diversified exchange-traded funds (ETFs) on the ASX. VGS holds close to 1,500 individual shares within its ETF portfolio. Those near-1,500 companies hail from more than 20 countries. These include Canada, the United Kingdom, Singapore, Japan, Hong Kong, and most of Europe. But also the United States.

But digging deeper, it appears that VGS’s diversification could arguably be described as shallow at best.

Yes, this ETF holds close to 1,500 shares. But it is also a top-heavy ETF. Although VGS represents the share markets of more than 20 countries, the United States alone makes up just under 70% of its entire portfolio.

Its largest ten companies by market capitalisation and portfolio weighting are all American too. Here’s a list of VGS’s top ten holdings and their weightings in this ETF (as of 28 February):

1. Apple Inc (NASDAQ: AAPL) with an ETF weighting of 4.82%
2. Microsoft Corporation (NASDAQ: MSFT) with a weighting of 3.79%
3. Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) with a weighting of 2.82%
4. Amazon.com Inc (NASDAQ: AMZN) with a weighting of 2.49%
5. Tesla Inc (NASDAQ: TSLA) with a weighting of 1.32%
6. NVIDIA Corporation (NASDAQ: NVDA) with a weighting of 1.08%
7. Meta Platforms Inc (NASDAQ: FB) with a weighting of 0.89%
8. UnitedHealth Group Inc (NYSE: UNH) with a weighting of 0.8%
9. Johnson & Johnson (NYSE: JNJ) with a weighting of 0.77%
10. Berkshire Hathaway Inc (NYSE: BRK.B) with a weighting of 0.75%

So as you can see, VGS is dominated by the big US tech companies. In fact, if we put Apple, Alphabet (owner of Google), Amazon, and Meta (formerly known as Facebook) together, we get a total weighting of approximately 11.02%. Throw in Netflix Inc (NASDAQ: NFLX), the final stock in the old ‘FAANG’ group, and we get 11.33%.

FAANG, FAANG+ dominate VGS ETF

So 11.33% of VGS’s entire portfolio of almost 1,500 shares is concentrated in the FAANG stocks.

Going further, Tesla, NVIDIA, and Microsoft are often added to the traditional FAANG grouping in what investors describe as ‘FAANG+’.

If we include these FAANG+ stocks, we get to a total weighting of 17.53%.

So really, close to $1 in every $5 invested in the Vanguard MSCI Index International Shares ETF is going to go to the FAANG+ stocks. Now there’s nothing inherently wrong with that, of course. FAANG+ shares arguably represent some of the strongest and most dominant companies on the planet.

However, it does mean that VGS isn’t as diversified an ETF as it might initially appear if one just looks at its total portfolio and raw geographic exposure. The Vanguard MSCI Index International Shares ETF charges a management fee of 0.18% per annum.

The post Is the Vanguard International Shares ETF just a big bet on the FANG stocks? appeared first on The Motley Fool Australia.

More reading

• How did the Vanguard MSCI Index International Shares ETF fare in March?
• Does the Vanguard MSCI Index International Shares ETF (ASX:VGS) pay dividends?
• Here are 2 top ETFs for ASX investors next week
• How is the Vanguard International Shares ETF (ASX:VGS) performing in the 2022 volatility?
• 3 highly rated ETFs for ASX investors to check out this week

John Mackey, 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. 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 owns Alphabet (A shares), Amazon, Apple, Johnson & Johnson, Meta Platforms, Inc., Microsoft, Nvidia, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Alphabet (A shares), Amazon, Apple, Berkshire Hathaway (B shares), Meta Platforms, Inc., Microsoft, Netflix, Nvidia, Tesla, and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alphabet (C shares) and Johnson & Johnson and has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Meta Platforms, Inc., Netflix, Nvidia, and Vanguard MSCI Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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