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Shares in Fortescue Metals Group Limited (ASX: FMG) spiked on Friday to finish trading 1.94% higher at $21.06.

It’s been a bumper year so far in 2022 for the iron ore giant, with its share price climbing 10% since January.

It is now up 15% in the past month and another 11% this week of trading, as investors rally behind the company again. Despite this, it trades the benchmark S&P/ASX 200 Index (ASX: XJO) on a longer-term basis.

What’s the outlook for Fortescue shares?

According to analyst sentiment, it could be a flat period in April for the company, unless Fortescue Future Industries (FFI) comes through with the goods.

What that means, JP Morgan says, is that “FFI [is] still the elephant in the room” and that “the company still hasn’t disclosed details of its pipeline of projects”.

“FMG continues to operate its iron ore business like a well-oiled machine,” the broker said in a recent note.

“We note reliable production, cost control, and predictable earnings. However, the stock trades above our NPV, and offers a lower FCF yield than peers,” it added.

“We look for more clarity on FFI and/or a cheaper entry point for the stock to get more constructive”.

That may have happened with FFI just this week, with the company signing a new deal. As The Motley Fool reported at the time:

Fortescue Future Industries has entered a deal with German energy giant E.ON that will see it supply Europe with up to 5 million tonnes of green hydrogen each year.

That’s enough to replace around one third of the calorific energy Germany imports from Russia, reducing Germany’s reliance on the energy-producing nation

Regardless, the broker remains neutral on Fortescue, alongside 55% of other brokers, according to Bloomberg data. It remains to be seen if this update will result in analyst upgrades or not.

In fact, Fortescue has no buy calls right now per this list, with the remaining 45% of coverage urging clients to sell Fortescue shares.

The consensus price target is $17 per share, currently 19% behind the current Fortescue share price.

Curiously, whilst commodity markets have surged in the last 12 months, the number of brokers advocating to buy Fortescue has crept down substantially to zero, per Bloomberg data.

The post What’s the outlook for the Fortescue (ASX:FMG) share price in April? appeared first on The Motley Fool Australia.

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For years, Montgomery Investment Management chief financial officer Roger Montgomery sat on television or radio panels and rolled his eyes as other experts declared that easy gains on the stock market were now over.

But now he finally agrees with those cynics.

“In recent years investors have made substantial gains from equities, but a close look at the driving force behind those gains is likely to reveal investors won because the tide was rising,” he said on the Montgomery blog.

“Sure, many companies grew their earnings too but there were a huge number of companies whose share prices went parabolic despite the absence of earnings.”

Once central banks do indeed raise interest rates multiple times this year, as expected, the party will be well and truly officially over.

“A rising tide does indeed lift all boats, but don’t mistake a rising tide for genius, or so the axiom goes,” said Montgomery.

“Investors can kiss goodbye the easy wins resulting from shares simply becoming more popular, and that rising popularity being reflected in ever-expanding price-to-earnings multiples.”

Not everyone has woken up yet

Montgomery is disturbed that not all investors seem to have realised yet that ASX shares are right now in a transition to an era of lower PE ratios.

“Rates are rising. And while I think rates will rise by less than the most bearish forecasts, the impact on PEs is already underway,” he said.

“Plenty of investors haven’t yet worked that out and this can be seen in the steep gains for almost all equities amid the hope and talk of peace in Ukraine.”

Indeed, the S&P/ASX 200 Index (ASX: XJO) rose 6.4% in March despite all the inflation and geopolitical worries.

High quality growth shares

So what type of ASX shares should investors target for this new era?

Montgomery recommended seeking exposure to “high quality growth”.

This is because if market-wide PE ratios are deflating, the only way to maintain or raise the share price is to grow earnings significantly.

“If a company, with earnings of $10 per share, sees its PE of 35 times fall to 25 times, the share price will decline 28%, from $350 down to $250,” said Montgomery.

“Plenty of high-quality growth companies have experienced this, and worse. And that represents a new opportunity.”

However, if this hypothetical company can grow its earnings 40% to $14 per share, the stock price will be maintained at $350.

“The work investors need to undertake now is to uncover those companies able to grow,” said Montgomery.

“One place to look is among those companies enjoying structural or megatrend tailwinds.  And if among those companies you also find a capital light and highly profitable business with net cash on the balance sheet, more power to you.”

One great example is a business that enjoys “inelastic demand”, namely Microsoft Corporation (NASDAQ: MSFT).

“​Nobody is going to cut their subscription to Microsoft Office just because Jerome Powell said interest rates are going up, or because Putin decides to invade Ukraine,” Montgomery said.

“Inelastic services like Microsoft Office are entrenched in the daily systems of hundreds of millions of businesses and individuals. That durability provides Microsoft low cyclicality, higher profitability, stable, recurring and growing cash flows and little or no need for debt.”

The ASX shares to avoid are businesses that are capital-intensive, low growth, mature, cyclical, or geared. 

Other warning signs are companies with “lumpy contract-type revenues” and those relying on discretionary spending.

“Avoid… those companies playing in the revolving door of capital – paying out cash they need later as dividends today and subsequently raising dilutive capital to replace it.”

Icing on the cake

If the rise in interest rates has the desired effect of suppressing inflation, those investors holding quality growth will be cheering even more.

“What follows is disinflation — and in a disinflationary environment, when the economy is still growing, PEs expand again,” said Montgomery.

“That would be icing on the cake for investors who heed the suggestion to invest in quality growth after share prices have been slammed by contracting PEs.”

The post The best type of ASX shares to buy right now: expert appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo owns Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Microsoft. 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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Are you looking for dividend shares to buy in April? If you are, then you might want to look at the ASX shares listed below.

Here’s why analysts think these ASX dividend shares could be worth considering right now:

Baby Bunting Group Ltd (ASX: BBN)

The first ASX dividend share to consider is Baby Bunting. It is a leading baby products retailer with a strong and growing presence through its national superstores and online business.

Citi is a fan of the retailer and currently has a buy rating and $6.22 price target on its shares. It is positive on Baby Bunting due to its clear leadership position in a less discretionary category which benefits from around 300,000 births a year in Australia.

The broker commented: “[W]e forecast a FY21 to FY24 EPS CAGR of 17%, and see growth being driven by i) rollout, ii) ramp up of new stores, iii) margin expansion and iv) penetrating existing categories with low presence. Further, the stocks growth prospects are in some respects less risky than other high multiple retailers who are relying more on new markets and acquisitions.”

As for dividends, Citi has pencilled in fully franked dividends per share of 16 cents in FY 2022 and 19 cents in FY 2023. Based on the current Baby Bunting share price of $4.96, this will mean yields of 3.2% and 3.8%, respectively.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share that could be a buy is Telstra. This is due to the telco giant’s increasingly positive outlook after almost a decade of struggles.

This positive outlook is being underpinned by the highly successful execution of its transformative T22 strategy and the impending growth-orientated T25 strategy.

The team at Morgans is positive on Telstra. It currently has an add rating and $4.55 price target on the company’s shares. The broker feels the market is undervaluing its shares on a sum of the parts basis and notes that “[s]ector dynamics look positive and value realisation is possible.”

In respect to dividends, Morgans continues to expect fully franked dividends per share of 16 cents for FY 2022 and FY 2023. Based on the current Telstra share price of $3.93, this implies yields of 4.1%.

The post 2 ASX dividend shares analysts have named as buys appeared first on The Motley Fool Australia.

More reading

• The Telstra dividend is being paid today. Here’s what you need to know
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• Here are the 3 most heavily traded ASX 200 shares this Thursday
• ASX 200 (ASX:XJO) midday update: Telstra CEO steps down, Fortescue confirms E.ON deal

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 owns and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Baby Bunting. 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 Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week in a subdued fashion. The benchmark index edged slightly lower to 7,493.8 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market looks set to start the week on a positive note following a solid finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 19 points or 0.25% higher this morning. On Wall Street, the Dow Jones rose 0.4%, the S&P 500 climbed 0.35%, and the Nasdaq pushed 0.3% higher.

Oil prices fall again

Energy producers Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a subdued start to the week after oil prices dropped again. According to Bloomberg, the WTI crude oil price fell 1% to US$99.27 a barrel and the Brent crude oil price dropped 0.3% to US$104.39 a barrel. US stockpile releases led to oil prices having their worst week since 2020.

Domain shares given neutral rating

The team at Goldman Sachs believes the acquisition of Realbase by Domain Holdings Australia Ltd (ASX: DHG) will be a positive for the property listings company. It feels the acquisition of Realbase would both deepen and expand Domain’s agent relations, which would present significant opportunities to cross sell incremental services. However, despite this and having a price target of $5.10, implying 27% upside, Goldman retains its neutral rating. Domain could return from its trading halt today.

Gold price falls

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a poor start to the week after the gold price weakened again on Friday night. According to CNBC, the spot gold price fell 1.6% to US$1,923.7 an ounce. The gold price dipped after strong US jobs data boosted the US dollar.

ANZ shares given hold rating

The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price could be close to being fully valued according to Bell Potter. This morning the broker retained its hold rating but lifted its price target to $29.00. Due to weaker margins, Bell Potter expects ANZ to report a decline in cash earnings next month. It is expects half year cash earnings of $2.84 billion, down from $3.21 billion during the second half of FY 2021 and $2.99 billion from the prior corresponding period.

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

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• These were the best performing ASX 200 shares during the first quarter
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• These were the worst performers on the ASX 200 last week
• What boosted the Whitehaven Coal (ASX:WHC) share price on Friday?
• Here’s how the ANZ share price performed in March

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. owns and has recommended Goldman Sachs. 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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Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that investors might want to hear about are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

Air New Zealand Limited (ASX: AIZ)

According to a note out of Macquarie, its analysts have retained their underperform rating and cut their price target on this airline operator’s shares to NZ$0.75 (69 Australian cents). The broker has looked at Air New Zealand’s recapitalisation package and expects significant dilution to earnings. Overall, Macquarie believes Air New Zealand’s shares are overvalued at the current level and warns that dividends are likely to be off the table until FY 2026. The Air New Zealand share price ended the week at $1.15.

Commonwealth Bank of Australia (ASX: CBA)

Another note out of Macquarie reveals that its analysts have retained their underperform rating and $90.00 price target on this banking giant’s shares. Macquarie has concerns that upcoming updates from the banks could disappoint and weigh on their shares. This is due to margin weakness caused by slowing volume growth and competitive pressures. The CBA share price was fetching $104.53 at Friday’s close.

Premier Investments Limited (ASX: PMV)

Analysts at Goldman Sachs have retained their sell rating and $24.30 price target on this retail conglomerate’s shares. Goldman has been looking over the federal budget and has picked out its winners and losers. Unfortunately, Premier Investments is more likely to be in the latter camp according to the broker. Goldman believes the apparel and accessories category will be most susceptible to downside risk from the weakening of the discretionary goods growth. The Premier Investments share price was trading at $26.88 at Friday’s close.

The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.

More reading

• How big will the CBA dividend be in 2022?
• Why Bank of Queensland, Block, Premier Investments, and REA shares are dropping
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• Top brokers name 3 ASX shares to sell today
• Why has the CBA share price outperformed its big four peers in March?

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 Macquarie Group Limited and Premier Investments 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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

Coles Group Ltd (ASX: COL)

According to a note out of Citi, its analysts have retained their buy rating and $19.30 price target on this supermarket operator’s shares. Citi has been looking over the recently announced federal budget and believes it will be a boost to disposable income. While this bodes well for the retail sector, its analysts expect supermarkets to be among the biggest winners. The Coles share price ended the week at $17.88.

Rio Tinto Limited (ASX: RIO)

A note out of Macquarie reveals that its analysts have retained their outperform rating and $140.00 price target on this mining giant’s shares. While Macquarie believes Rio Tinto will have to increase its offer to successfully acquire Turquoise Hill, it remains positive. Particularly with high iron ore prices underpinning strong earnings and dividends. The Rio Tinto share price was fetching $120.34 at the end of the week.

Webjet Limited (ASX: WEB)

Analysts at Goldman Sachs have retained their buy rating and $6.90 price target on this online travel agent’s shares. Goldman believes Webjet is well-placed to benefit from the travel recovery tailwind, especially given its structurally improved profitability and the strong outlook of the Bedbanks business. Goldman expects the latter to resume the strong growth journey that it embarked on prior to the COVID pandemic. The Webjet share price was trading at $5.54 at Friday’s close.

The post Top brokers name 3 ASX 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 no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended COLESGROUP DEF SET. The Motley Fool Australia has recommended Macquarie Group Limited and 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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Thanks to a strong rebound during the month of March, the S&P/ASX 200 Index (ASX: XJO) managed to record a 0.7% gain to 7,499.6 points during the first quarter.

A number of shares performed notably better during the three months, delivering very strong gains for their shareholders. Here’s why these were the best performing ASX 200 shares during the quarter:

AVZ Minerals Ltd (ASX: AVZ)

The AVZ Minerals share price was the best performer on the ASX 200 during the first quarter with a gain of 59.4%. This lithium explorer’s shares were a late inclusion into the index, joining at the quarterly rebalance in March. This index addition, positive developments at its Manono Lithium and Tin Project in the Democratic Republic of the Congo, and sky high lithium prices helped drive its shares higher over the three months.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price was just a fraction behind with a gain of 59% over the three months. Investors were scrambling to buy the coal miner’s shares after coal prices surged to record highs during the period. This was driven by a material increase in demand for coal after European countries sought alternatives to reduce their exposure to Russian natural gas.

Woodside Petroleum Limited (ASX: WPL)

The Woodside share price was on form during the quarter and recorded a 46.4% gain. Investors were bidding the energy producer’s shares higher after the Russia-Ukraine crisis sparked fears of supply constraints in an already energy tight market. Oil prices climbed beyond US$120 a barrel to their highest levels since 2008 before settling at approximately US$100 a barrel at the end of the quarter.

Champion Iron Ltd (ASX: CIA)

The Champion Iron share price wasn’t far behind with a gain of 43.6% during the three months. Once again, this was driven largely by a jump in commodity prices. The spot benchmark iron ore price surged higher during the quarter and was trading around US$150 a tonne at the end of it. In addition, the Canadian iron ore miner’s shares were given a boost from the release of its third quarter update. Champion Iron reported EBITDA of C$122.1 million, which was well ahead of Goldman Sachs’ estimate of C$87 million.

The post These were the best performing ASX 200 shares during the first quarter appeared first on The Motley Fool Australia.

More reading

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• 5 ASX mining shares rocking all-time highs on Friday

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 Bruce Jackson.

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A strong rebound during the month of March helped the S&P/ASX 200 Index (ASX: XJO) recover and record a 0.7% gain to 7,499.6 points during the first quarter.

Unfortunately, not all shares were able to climb with the market. Here’s why these were the worst performing ASX 200 shares during the quarter:

Zip Co Ltd (ASX: Z1P)

The Zip share price was the worst performer on the ASX 200 during the quarter by some distance with a 65.6% decline. Investors were selling the buy now pay later (BNPL) provider’s shares amid weakness in the tech sector and particularly the BNPL industry. In addition, a greater than expected loss for the first half of FY 2022 and a capital raising announcement weighed heavily on investor sentiment. This offset any positives from news that it is acquiring Sezzle Inc (ASX: SZL).

PointsBet Holdings Ltd (ASX: PBH)

The PointsBet share price was out of form and tumbled 46.4% over the three months. Investors were selling sports betting shares globally amid concerns over valuations and increasing marketing spend in the industry. In respect to the latter, rival DraftKings warned that it was likely to make a loss of US$1 billion in 2022 due largely to marketing costs.

Boral Limited (ASX: BLD)

The Boral share price was a poor performer and sank 43.3% during the period. However, the majority of this decline reflects the building materials company returning a total of $3 billion to shareholders following a series of asset sales. Boral’s total cash return of $2.72 per share comprised a $2.65 per share capital reduction and an unfranked dividend of 7 cents per share.

Appen Ltd (ASX: APX)

The Appen share price continued its slide during the first quarter with a 38% decline. Investors were selling off this artificial intelligence data services company’s shares following the release of a disappointing full year result. Appen reported a 3% increase in underlying EBITDA to US$77.7 million in FY 2021, which fell short of its revised guidance. Management also revealed that it wouldn’t provide any guidance for FY 2022, which didn’t go down well with the market.

The post These were the worst performing ASX 200 shares during the first quarter appeared first on The Motley Fool Australia.

More reading

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• What boosted the Whitehaven Coal (ASX:WHC) share price on Friday?
• Zip share price backtracks ahead of share purchase plan closure
• ASX 200 (ASX:XJO) midday update: Allkem jumps on lithium pricing update: Domain to acquire Realbase
• These were the best performing ASX 200 shares in March

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. owns and has recommended Appen Ltd, Pointsbet Holdings Ltd, and ZIPCOLTD FPO. The Motley Fool Australia has recommended Pointsbet Holdings 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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Commonwealth Bank of Australia (ASX: CBA) is among Australia’s biggest dividend payers.

It is one of the big four domestic ASX banks in Australia, alongside National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking Group Ltd (ASX: ANZ).

In FY21, Commbank paid an annual dividend of $3.50 per share. That was an increase of 17% compared to FY20.

So, how big will the dividend from CBA be in FY22?

What we already know about the CBA dividend

More than half of the bank’s 2022 financial year has already occurred.

In February 2022, the business announced an interim dividend of $1.75 per share. That represents a 17% increase on the FY21 half-year dividend.

The interim dividend represented a ‘normalised’ cash payout ratio of around 70%, which was in line with the board’s interim target dividend payout ratio, normalised for long run loan loss rates.

In the first half of FY21, the bank saw “strong financial and operational performance delivered in a low rate environment through continued customer focus, disciplined execution and investment.”

CBA’s cash net profit after tax (NPAT) rose by 23% to $4.75 billion, supported by reduced remediation costs and lower loan loss provisions due to an improved economic outlook. However, it was impacted by lower margins.

The net interest margin (NIM) dropped to 1.92%, which was down 17 basis points compared to the second half of FY21. CBA blamed some of the decline on customers switching to lower margin fixed home loans, the impact of rising swap rates due to market expectations of higher interest rates, and continued pressure from home loan competition.

Expectations for FY22

Commsec currently has a dividend forecast of $3.85 per share for FY22. That estimate is from external data providers, the projection hasn’t come from Commonwealth Bank.

If CBA were to pay an annual dividend of $3.85, that would translate into a grossed-up dividend yield of around 5.25%.

But Commsec isn’t the only place that provides dividend estimates.

Morgan Stanley thinks the FY22 dividend that CBA pays will be equivalent to a grossed-up dividend yield of 5.2%.

UBS has one of the lowest dividend projections for CBA in FY22, with an estimated grossed-up dividend yield of 4.8%.

Looking further ahead

CBA is expected to pay dividends beyond FY22, of course. What could dividends beyond the 2022 financial year look like?

The big four ASX bank is expected to keep growing its dividend in FY23 and FY24.

Using Commsec’s projections, CBA is predicted to pay an annual dividend per share of $4.03 in FY23 and $4.25 in FY24. This would see the bank almost return to the level of dividends it paid in FY18 and FY19.

The FY23 and FY24 projected dividends translate into grossed-up dividend yields of 5.5% and 5.8%, respectively.

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

More reading

• How did the Westpac share price perform in March?
• Top brokers name 3 ASX shares to sell today
• Why has the CBA share price outperformed its big four peers in March?
• How did ASX 200 bank shares perform today?
• The CBA dividend is being paid today. Here’s what you need to know

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. 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 exchange-traded funds (ETFs) offer investors who may not be comfortable with picking individual shares a chance to invest in wider baskets of companies.

There are a lot of ASX ETFs to choose from, tracking all manner of benchmarks, commodities, and industries.

With lithium prices remaining at record highs and numerous ASX listed and global lithium shares shooting the lights out, today we throw the spotlight on the ETFS Battery Tech & Lithium ETF (ASX: ACDC).

Lithium producers leading the charge this year

Some of the best performers on the ASX this year are involved in the lithium space.

As a very lightweight and conductive metal, lithium demand has boomed amid the rapid growth in global battery production as the world moves to decarbonise and roll out fleets of electric vehicles and home battery systems.

Most of which depend on lithium.

So how have the leading ASX lithium shares been performing?

Well, AVZ Minerals Ltd (ASX: AVZ) is up 68% in 2022 and up 587% over the past 12 months.

Core Lithium Ltd (ASX: CXO) has charged even higher, up 156% year-to-date and a whopping 552% since this time last year.

We’ll finish up with Lake Resources NL (ASX: LKE), though there are a number of other ASX lithium shares to spotlight. The Lake Resources share price is up 127% in 2022 and 594% over the past 12 months.

Why this ASX ETF could enjoy rising demand

Jessica Amir is the Australian market strategist at Saxo Markets.

Amir says Saxo believes “that the electric vehicle industry and the critical minerals/ commodities will continue to see rising demand, and policy support, and also benefit from the world striving to be carbon neutral by 2050″.

Amir suggested investors who aren’t into stock-picking but want exposure to the lithium and critical metal boom “could invest or trade in… ACDC that invests in about 30 of the biggest EV and battery technology companies in the world”.

The ASX ETF’s top three holdings are AMG Advanced Metallurgical Group NV (AMS: AMG), Mineral Resources Limited (ASX: MIN), and Pilbara Minerals Ltd (ASX: PLS).

While ACDC has been rebounding in recent weeks, up 12% since 8 March, the ASX ETF’s performance has greatly lagged that of lead lithium stocks to date.

Over the past 12 months, the ACDC share price is down 5%.

The post An exciting ASX ETF to ride along with the global electric vehicle boom appeared first on The Motley Fool Australia.

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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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