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The S&P/ASX 200 Index (ASX: XJO) is having another pleasant day so far on the ASX boards this Thursday. At the time of writing, the ASX 200 is up a healthy 0.34% at 7,464 points.

But let’s take a closer look at what the markets are up to today by checking out the ASX 200 shares currently topping the share market’s volume charts, according to investing.com.

3 most traded ASX 200 shares by volume this Thursday

Liontown Resources Limited (ASX: LTR)

Our first ASX 200 share up today is miner Liontown. This lithium explorer has had a significant 16.08 million of its shares change hands thus far this Thursday. Liontown has seen a pleasing jump in its valuation today, having risen 3.37% at the time of writing to $1.68 a share after going as high as $1.75 (up more than 6%) earlier this morning. Additionally, we also got a notice out of the company this morning that its ongoing share purchase plan will be extended until 28 January. It’s this combination of events that has likely resulted in this elevated trading volume.

Telstra Corporaiton Ltd (ASX: TLS)

ASX 200 telco Telstra is our next share up today. So far, a hefty 16.71 million Telstra shares have found their way into a new pocket. The Telstra share price has done a bit of bouncing around thus far this Thursday. It’s currently sitting at $4.20 a share after rising as high as $4.32 and as low as $4.16 during today’s session. Further, we also got an update regarding Telstra’s upcoming half-year earnings results this morning. These two factors are probably the smoking gun behind so many shares shifting places thus far.

Pilbara Minerals Ltd (ASX: PLS)

Our final and most traded ASX 200 share this Thursday goes to Pilbara Minerals. This lithium producer has watched as a notable 21.21 million of its shares have been bought and sold so far today. With no news or announcements out of this ASX share today, we can probably assume this high trading volume is the result of the healthy share price appreciation Pilbara has enjoyed this Thursday. The company is presently up by 3.21% at $3.70 a share after hitting a new record high of $3.81 earlier today.

The post Here are the 3 most heavily traded ASX 200 shares on Thursday appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• Own Telstra (ASX:TLS) shares? Here’s what you need to know about next month’s earnings report
• ASX 200 (ASX:XJO) midday update: Crown jumps, miners rally, Sonic sinks
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX shares today

Motley Fool contributor Sebastian Bowen owns Telstra Corporation Limited. 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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three ASX shares brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Iluka Resources Limited (ASX: ILU)

According to a note out of Goldman Sachs, its analysts have added this mineral sands producer’s shares to their conviction buy list with a $12.40 price target. Goldman made the move in response to its attractive valuation, compelling Zircon and TiO2 price upside, and rare earth growth potential. The broker also highlights the recent release of a larger-than-expected maiden resource on the Wimmera rare earth and zircon deposits in Victoria. The Iluka share price is trading at $11.15 on Thursday afternoon.

Select Harvests Limited (ASX: SHV)

A note out of Citi reveals that its analysts have retained their buy rating and $9.00 price target on this almond producer’s shares. The broker believes Select Harvests is well-placed to benefit from tough operating conditions for its rivals in the United States. In addition, Citi points out that weather conditions haven’t been favourable in California this month, which could be a positive for almond pricing. The Select Harvests share price is fetching $5.82 today.

Telstra Corporation Ltd (ASX: TLS)

Analysts at Ord Minnett have retained their buy rating and lifted their price target on this telco giant’s shares to $4.85. According to the note, the broker remains very positive on Telstra’s outlook and continues to expect increased profitability and productivity gains from its fixed business. In addition, it sees opportunities for further asset monetisation, which could support increased dividends. The Telstra share price is trading at $4.20 this afternoon.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• Own Telstra (ASX:TLS) shares? Here’s what you need to know about next month’s earnings report
• Here are the 3 most heavily traded ASX 200 shares this Wednesday
• Is the Telstra (ASX:TLS) dividend going to grow in 2022?
• Broker names 2 ASX dividend shares to buy in January
• 4 reasons the Telstra (ASX:TLS) share price could be great value

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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Today has been an eye-opening day for gas prices, potentially putting question marks around energy producing shares such as Santos Ltd (ASX: STO).

Overnight, U.S natural gas futures soared more than 14%, with CNBC reporting the increase was due to predictions of cold weather in parts of North America.

But that might just be the start of it. Experts from Wood Mackenzie have tabled their predictions for gas prices in 2022, declaring the year could bring “a moment of truth” for supply and demand of the energy source.

As Santos is Australia’s biggest supply of natural gas, those invested in the company’s shares might want to keep an eye on the commodity over the coming months.

Here’s what Wood Mackenzie recommends to look out for.

Could gas prices weigh on shares like Santos?

Demand for gas in 2022 is expected to be “resilient” according to the experts.

However, investments in renewables and batteries might increase, putting a ceiling on demand for the commodity.

Additionally, the team at Wood Mackenzie predict gas’ place in the energy transition might be questioned if prices remain high.

Political tensions, weather, and climate concerns could all see gas prices surge this year. And one of the biggest sources of drama could be the European Commission.

The experts predict that a new proposal outlining if projects can be labelled “transitional investments” in the European Union (EU) could help to boost the finances of gas producers this year.

The proposal is intended to help finance the EU’s carbon reduction objectives. So far, the EU has stated that gas projects can be classed ‘transitional’ if their emissions are below 100 grams per kilowatt hour.

According to Wood Mackenzie, that means only plants with carbon capture and storage capabilities would fit within the framework.

Those who own Santos shares may already know that it’s working to create a carbon capture and storage project, named Moomba, in outback South Australia.

It’s also recently partnered with the CSIRO to work on carbon capture technology.

Though, unabated gas-fired power plants might also be classified as ‘transitional’ if they’re commissioned before 2030. But such classifications are unlikely to be a cure-all. Wood Mackenzie’s report states:

Supporters of this latest version argue this will be necessary to help countries reduce coal capacity and build resilience as power systems shift towards renewables.

On the face of it, whether unabated gas-fired plants will be defined as “transitional investments” in the EU taxonomy could be a moment of truth for the global gas industry. Financial and non-financial investors would be able to increase their corporate “green scoring” by investing in gas, including outside Europe… But the EU recognition of gas power plants as a transitional investment is no panacea for the gas industry. Gas prices will need to come down to accommodate increased investments in gas use.

What else could move gas prices in 2022?

Fortunately, Wood Mackenzie believes that gas prices could be on a downward trajectory, but only if Russia’s Nord Stream 2 pipeline is commissioned.

It noted that its possible gas storage inventories will have dropped below 15 billion cubic metres by April. While prices might fall at the end of winter, the need to fill the storage deficit will be significant.

The pipeline between Russia and Germany might be the only way to fill storage inventories. But tensions between Russia and Ukraine could stall its commissioning.

Another happening that will likely impact demand for gas is potentially obvious. That is, the weather. The experts commented:

Normal winter weather, including in Asia, and visibility on Nord Stream 2 commissioning would push prices down, although demand for storage (and high carbon prices) will maintain prices above US$15 per metric million British thermal unit. But cold winter weather in Europe and Asia alongside continued uncertainty about commissioning of Nord Stream 2 could see prices increase further throughout 2022.

Finally, Wood Mackenzie predicts that LNG oil-indexated contracts could rise by as much as 12% on a weighted average basis.

Though, it noted that contracts starting before 2025 will likely attract premiums, while those starting after could be priced lower.

The post Is the ‘moment of truth’ coming for gas shares like Santos (ASX:STO)? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Own Santos (ASX:STO) shares? Here’s the outlook for oil prices in 2022
• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 shares last week
• 5 things to watch on the ASX 200 on Friday

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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Ethical investing is a thematic that has been growing in popularity as environmental concerns reach a tipping point. However, as we take our first steps into 2022, there are concerns festering among the ESG investing community.

On one hand, it’s a major positive to see investment banks pouring capital into companies geared towards a sustainable future. Meanwhile, the incentives for bad actors to disingenuously appeal to environmentally conscious investors has never been as high.

This creates a challenge for investors to navigate within the ESG investing landscape.

A wolf in sheep’s clothing

The risk posed to investors has caught the attention of Australia’s corporate regulator. In December, the Australian Securities and Investments Commission’s (ASIC) commissioner Cathie Armour warned that publicly listed companies could encounter ‘enforcement action’ in situations where climate risk details have been fudged.

Moreover, the warning is not the only one of its kind across global markets. In the European Union, a group of investors have been pushing back on the labelling of natural gas investments as ‘sustainable’. This followed the drafting of a climate-friendly investing rule book, of sorts, by the European Commission to define gas and nuclear investments as green.

In a similar fashion, a study conducted by the University of California and nonprofit As You Sow, found a weak correlation between ESG branded exchanged-traded funds (ETFs) and their ESG rating.

As You Sow CEO Andrew Behar commented:

We see funds with ESG in their names getting F’s on our screening tools because they hold dozens of fossil fuel-extraction companies and coal-fired utilities

Importantly, this highlights the risk to hopeful ethical investors. While at face value it may appear an ESG investment, it might really be a case of greenwashing.

The green side of ESG investing in 2022

It’s not all doom and gloom for the green investing niche in 2022. Currently, the issue around potentially deceptive ESG reporting is due in large to the lack of standards. However, that could be set to change with the development of new guidelines by the International Sustainability Standards Board.

In contrast to the current loose framework, the ISSB will be looking to introduce a set of standardised metrics. The hope is this will lessen the grey area where greenwashing and vagueness can take place.

Another positive for ESG investing is the growing adoption among institutional investors. For example, IFM Investors — which is owned by 23 Australian industry super funds — has hit a milestone on its green ambitions. The firm’s private equity segment has become the first in Australia to reach carbon neutrality.

Indeed, 2022 could be an interesting year for ESG investing. Excitement remains high in the likes of lithium, hydrogen, and other ‘green’ alternatives.

The post It’s not easy being green: A look at ESG investing in 2022 appeared first on The Motley Fool Australia.

More reading

• Own Telstra (ASX:TLS) shares? Here’s what you need to know about next month’s earnings report
• Why BrainChip, Crown, Objective, and South32 shares are racing higher
• Is the Vanguard MSCI Index International Shares ETF (ASX:VGS) the most diversified ETF on the market?
• Why is the Mineral Resources (ASX:MIN) share price having such a cracking start to 2022?
• Is Vanguard Australian Shares Index ETF (ASX:VAS) the cheapest way to invest in ASX shares?

Motley Fool contributor Mitchell Lawler 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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If you’re a shareholder of Telstra Corporation Ltd (ASX: TLS), well, firstly, congratulations. Telstra shares have been one of the best performing ASX blue-chips over the past 12 months, giving investors a healthy gain of 36.73% at the latest pricing. That includes the healthy 1.1% bump so far today to $4.22 a share. That’s just a whisker off this telco’s 52-week high of $4.23.

But investors might now be turning their heads to Telstra’s next earnings report. This, the company is scheduled to deliver next month on 17 February. Perhaps Telstra’s much-loved annual dividend of 16 cents per share, fully franked, will be increased, as shareholders have long been hoping for. Although, as my Fool colleague Tristan went through earlier this week, many experts are tipping this as unlikely in FY22.

Well, to gear us all up for Telstra’s big day next month, the company put out an ASX release this morning that gives us some details.

Telstra share price rises amid reporting framework shake up

So Telstra reiterated that it is changing its “product reporting framework” for next month. It will be giving investors “more transparency across our infrastructure business with InfraCo Fixed and Amplitel (InfraCo Towers) on a standalone basis”. It will also include “mobile and fixed product EBITDA margins after including intercompany infrastructure costs”.

In addition, Telstra will be providing these metrics on a backdated basis for the 2020 and 2021 financial years. This has been done in order to “assist the market when reviewing Telstra’s 2022 half-year results”.

It’s reporting framework will now include these underlying categories:

• Fixed – Consumer & Small business
• Mobile
• Fixed – Enterprise
• Fixed – Active wholesale
• International
• InfraCo Fixed
• Amplitel
• Other

Telstra was also at pains to state that “we remain committed to all financial ambitions under our previous reporting framework”. Additionally, the company also reassured investors that this new framework aligns with the T25 cost-cutting strategy.

Arguably, investors have approved of what the company had to say today (or are at least ambivalent), given the moves from Telstra shares we have seen so far.

At the current Telstra share price, this ASX 200 telco has a market capitalisation of $49.5 billion, with a trailing dividend yield of 3.8%.

 

The post Own Telstra (ASX:TLS) shares? Here’s what you need to know about next month’s earnings report appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares this Wednesday
• Is the Telstra (ASX:TLS) dividend going to grow in 2022?
• Broker names 2 ASX dividend shares to buy in January
• 4 reasons the Telstra (ASX:TLS) share price could be great value
• 2 ASX dividend shares to buy this month: experts

Motley Fool contributor Sebastian Bowen owns Telstra Corporation Limited. 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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on form again and charging higher. At the time of writing, the benchmark index is up 0.6% to 7,483 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are racing higher:

BrainChip Holdings Ltd (ASX: BRN)

The BrainChip share price is up 15% to $1.37. Investors have been buying this artificial intelligence technology company’s shares in 2022 amid excitement over the use of its Akida chip in a Mercedes concept car. Though, it is worth noting that management didn’t deem this news material enough to warrant an ASX announcement.

Crown Resorts Ltd (ASX: CWN)

The Crown share price is up 8% to $12.58. This follows the receipt of an improved takeover offer from Blackstone. The private equity firm has lifted its offer from $12.50 cash per share to $13.10 cash per share. The good news for Blackstone is that the Crown Board believe this offer would be acceptable if it became binding. The previous offer did “not represent compelling value for Crown shareholders.”

Objective Corporation Limited (ASX: OCL)

The Objective share price is up 5.5% to $17.87 following the release of a trading update from the software company. According to the release, the company expects to report revenue of $52.7 million and EBITDA of $15.1 million for the first half of FY 2022. This represents an increase of 13.3% and 28%, respectively, over the prior corresponding period.

South32 Ltd (ASX: S32)

The South32 share price is up 4.5% to $4.27. This morning analysts at Goldman Sachs retained their conviction buy rating and lifted their price target to $4.70. The broker likes South32 due to its exposure to base metals such as aluminium and alumina. Goldman is bullish on aluminium on a multi-year view.

The post Why BrainChip, Crown, Objective, and South32 shares are racing higher appeared first on The Motley Fool Australia.

More reading

• Here’s why the Crown (ASX:CWN) share price jumped 9% today
• ASX 200 (ASX:XJO) midday update: Crown jumps, miners rally, Sonic sinks
• Why the Objective Corp (ASX:OCL) share price is charging higher
• Crown (ASX:CWN) share price on watch after Blackstone ups takeover bid
• Goldman Sachs says buy Rio Tinto and South32 shares but sell Fortescue now

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 Objective Corporation Limited. 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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Many ASX investors who choose to invest their hard-earned money into an exchange-traded fund (ETF) do so because of the benefits of diversification. ETFs are an investing instrument that can arguably offer this diversification like no other. Even though you can buy and sell an ETF in a single trade and with a single ticker code, the underlying investment can be spread across hundreds or even thousands of different companies. That brings us to the Vanguard MSCI Index International Shares ETF (ASX: VGS).

This ETF from Vanguard is one of the most popular on the ASX. Indeed, it is the second most popular fund on the ASX that invests in companies outside Australia, coming in behind the all-American iShares S&P 500 ETF (ASX: IVV). But is it the most diversified?

How does the VGS ETF stack up in terms of diversification?

Well, it certainly makes a strong case. The VGS ETF currently has 1,493 individual company holdings, spread across 22 countries. The ETF focuses on “major developed countries”, so you’ll find everything from the United States, Canada and Japan, to the United Kingdom, Europe, Hong Kong and Israel here. However, most of its holdings (more than 70%) come from the US.

VGS’s top-weighted shares are also (predictably) American. You’ll find Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT) and Amazon.com Inc (NASDAQ: AMZN) in its top ten holdings, as well as NVIDIA Corporation (NASDAQ: NVDA) and Facebook.. sorry, Meta Platforms Inc (NASDAQ: FB).

So is VGS the most diversified ASX ETF out there? Well, it certainly comes close. But it doesn’t take the cake. To illustrate, let’s take a look at the Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE).

While not as popular as VGS, this ETF makes it look like an amateur when it comes to diversification. VGE currently holds a whopping 5,256 individual companies, spread out across more than 25 countries. The most prominent of these are China (36.3%) and Taiwan (19.2%), but also include India, Brazil, South Africa and Saudi Arabia.

So no, VGS is certainly not the most diversified ETF on the ASX. But it does come close. But a caveat. When you’re talking about diversification through ~1,500 companies or ~5,200, you are arguably at a level where there is not too much pure benefit from having additional diversification at this scale. Something to think about if you’re chasing diversification for diversification’s sake.

The post Is the Vanguard MSCI Index International Shares ETF (ASX:VGS) the most diversified ETF on the market? appeared first on The Motley Fool Australia.

More reading

• 2 excellent ETFs for ASX investors to buy and hold
• 3 ASX ETFs for smart investors in 2022
• Here’s why 2021 was a stellar year for the Vanguard International Shares ETF (ASX:VGS)
• 2 of the best ETFs for diversification
• Here are 3 top ETFs for ASX investors in 2022

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, 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 Meta Platforms, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Meta Platforms, Inc., Microsoft, and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended Apple, Meta Platforms, Inc., Nvidia, Vanguard MSCI Index International Shares ETF, and iShares Trust – iShares Core S&P 500 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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The Mineral Resources Limited (ASX: MIN) share price has started the new year off with a bang.

Its shares are currently trading for around 15% more than they were at the end of 2021. That’s despite no news having been released by the company.

At the time of writing, the Mineral Resources share price is $64.81, 3.83% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) has gained 0.63% today and 0.55% since the final close of 2021.

Let’s take a look at what might have helped send the mining services company’s stock higher.

What’s been driving the Mineral Resources share price lately?

While there’s no clear reason behind the stock’s surge in 2022, it’s not alone in the green.

In fact, the majority of its peers are also enjoying the new year. Since the ASX closed on 31 December 2021, the S&P/ASX 200 Materials Index (ASX: XMJ) has gained 7.25%.

The Pilbara Minerals Ltd (ASX: PLS) share price is one of the pack’s leaders. The lithium producer’s stock can boast a 17.5% gain over that time frame.

Meanwhile, the stock of iron ore producer Champion Iron Ltd (ASX: CIA) has gained 17%.

Like those of Pilbara Minerals and Champion Iron, the Mineral Resources share price hasn’t been boosted by news for weeks. In fact, the market hasn’t heard price-sensitive news from the company since mid-December.

Then, on 13 December, the company’s joint venture partner Neometals Ltd (ASX: NMT) announced the pair will be to evaluating potentially commercialising their ELi lithium process at a Portugal-based refinery.

The following day, Mineral Resources announced it will be developing a lithium resource in Western Australia as part of another joint venture.

The Mineral Resources share price gained 3.8% over the course of the two days. It has since gained another 31%.

The post Why is the Mineral Resources (ASX:MIN) share price having such a cracking start to 2022? appeared first on The Motley Fool Australia.

More reading

• What is JP Morgan saying about ASX lithium shares?
• 6 ASX shares involved with green metals
• These were the best performing ASX 200 shares in December
• Brokers name 3 ASX shares to sell
• Is this ASX sector gearing up for a year of M&A activity?

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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There are many different ways to invest in ASX shares. But could Vanguard Australian Shares Index ETF (ASX: VAS) be the cheapest way to do it?

The VAS ETF is an investment that provides exposure to 300 of the biggest businesses on the ASX.

What is Vanguard?

Vanguard is one of the world’s biggest asset managers. The Vanguard Group was founded in 1975 and has over $11 trillion of assets under management globally across more than 400 funds. Vanguard Australia was founded in 1996 and has $142 billion of assets under management across 82 funds.

How is it different to other managers?

The investment manager says that its focus is always on putting the interests of investors first.

It says that its core purpose is to take a stand for all investors, to treat them fairly, and to give them the best chance for investment success.

Vanguard’s ownership structure, where investors are owners of the business, aligns its interests with investors and drives the culture, philosophy and policies throughout the organisation around the world.

A key selling point of Vanguard is its low costs for investors. That’s also one of the selling points for Vanguard Australian Shares Index ETF. Indeed, it says:

Providing leading, low-cost investment products and solutions to investors isn’t a pricing strategy for us. It’s how we do business.

Our unwavering focus on making decisions in the best interests of investors ensures we deliver a disciplined and consistent investment experience.

As its assets under management increases globally, it aims to reduce its expense costs/ratios for the investors in the funds.

It is already at a very large scale, which helps it keeps costs low for investors.

What are the benefits of low costs?

The lower the costs of investing, the more money that investors get to keep themselves in the VAS exchange-traded fund (ETF) or any other product.

As Vanguard points out, every dollar someone pays for fees and costs is a dollar less of potential returns to that person’s portfolio. Compounded over time, every dollar saved contributes to overall fund performance.

It’s not just scale and a desire to lower costs that helps Vanguard provide lower costs. It says:

Our focus on efficient portfolio management and low turnover means lower ongoing transaction costs and expenses for our investors.

Is VAS ETF the cheapest way to invest in ASX shares?

When looking at some of the largest diversified investment options, there are several with very low fees.

For example, one of the oldest listed investment companies (LICs), Australian Foundation Investment Co.Ltd. (ASX: AFI), has an annual management fee of just 0.14%.

Argo Investments Limited (ASX: ARG), another of the oldest and largest LICs, has an annual fee (also called a management expense ratio) of 0.14%.

Now let’s look at Vanguard Australian Shares Index ETF.

The VAS ETF has an annual fee of just 0.10%. For that fee, investors get cheap exposure to the ASX’s blue chips like Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), CSL Limited (ASX: CSL) and Macquarie Group Ltd (ASX: MQG).

But there is an ETF with an even cheaper cost.

BetaShares Australia 200 ETF (ASX: A200) has an annual fee of just 0.07%. It claims to be the world’s lowest cost ASX shares ETF.

With similar holdings and costs, it is up to investors to decide which provider they want to go with.

The post Is Vanguard Australian Shares Index ETF (ASX:VAS) the cheapest way to invest in ASX shares? appeared first on The Motley Fool Australia.

More reading

• Own VAS shares? Here’s how this ETF performed in 2021
• Invested in VAS shares? Here’s what to watch in 2022

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 CSL Ltd. 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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Later this year Commonwealth Bank of Australia (ASX: CBA) is likely to be supplanted by mining giant BHP Group Ltd (ASX: BHP) as the largest company on the Australian share market.

What’s happening?

Australia’s largest bank has been the top dog on the ASX for many years but BHP’s unification plans will put an end to that if shareholder approval is granted.

Last year, the Big Australian announced plans to end its listing on the London Stock Exchange and have its primary listing purely on the Australian share market. This compares to its current dual listing, which has shares listed on both exchanges.

At present, the CBA share price implies a market capitalisation of approximately $173 billion. This is some distance ahead of the BHP ASX market capitalisation of $138.5 billion. However, BHP’s UK market capitalisation is estimated to be GBP50.2 billion (A$94.6 billion).

So, once the dual listing ends, the combined BHP market capitalisation on the ASX will be a massive $233 billion, which is a sizeable $60 billion ahead of CBA. For context, this is about the size of conglomerate Wesfarmers Ltd (ASX: WES).

Could CBA retake the top spot?

For Australia’s largest bank to retake the top spot, it would require a big rise in the CBA share price.

For example, to grow its market capitalisation from $173 billion to $233 billion would require an increase of 35%. This would mean the CBA share price rising from $102.24 currently to $138.00.

While this is not unthinkable, the problem is that most analysts already believe the CBA share price is trading on sky high multiples.

So much so, Macquarie and Morgans both have the equivalent of sell ratings on its shares with price targets of $86.00 and $73.00 respectively. And while Bell Potter is positive on the bank’s shares, its 12-month price target of $111.00 leaves it well short of the level required to retake top spot.

In light of this, CBA may have to get used to playing second fiddle in the future.

The post CBA (ASX:CBA) is about to lose the mantle of the ASX’s largest company, here’s why 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 no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Wesfarmers 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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