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The Nickel Mines Ltd (ASX: NIC) share price is set to finish Wednesday’s trading session on a high note. This comes as the low-cost nickel producer is enjoying multi-year highs on the spot price of nickel.

At the time of writing, the company’s shares are swapping hands for $1.555, up 6.87%. It’s worth noting that earlier in the morning, its shares rose to a record high of $1.565.

Nickel Mines shares continue to impress

The Nickel Mines share price is surging today following positive investor sentiment in the electric vehicle (EV) battery sector.

Nickel is a key component in lithium-ion batteries, which is used in generating power for electric vehicles. Nickel is able to produce a lot more energy into batteries than using cobalt. The latter is considered a more expensive metal and has fewer purposes across industries.

On the back of rising interest in the sector, the price of nickel has accelerated to US$21.04 per kilo. The crucial metal has risen close to 22.6% since this time last year.

Last month, the company announced it signed a conditional share purchase agreement with Bolt Metals to acquire the Tablasufa Nickel Project.

The potential US$8.5 million purchase would represent another opportunity for Nickel Mines to expand its nickel portfolio.

Nickel Mines managing director, Justin Werner commented:

Located on the coast with a number of potential jetty locations already identified through previous bathymetry studies, it provides excellent potential logistics for the low-cost movement of ore and equipment in the future.

Through the acquisition of Tablasufa, Nickel Mines will further grow its presence in the emerging nickel province of West Papua. The province has historically undergone significant exploration by many of the majors and remains highly prospective.

Nickel Mines share price snapshot

Over the last 12 months, the Nickel Mines share price has accelerated by 25%, with year-to-date up 8%. The company’s shares slumped in early October to 88.5 cents before zooming to an all-time high of $1.565 today.

Based on today’s price, Nickel Mines commands a market capitalisation of roughly $3.89 billion, with approximately 2.52 billion shares outstanding.

The post Here’s why the Nickel Mines (ASX:NIC) share price is surging 7% today appeared first on The Motley Fool Australia.

More reading

• Why Afterpay, Appen, Liontown, and Nickel Mines shares are surging higher
• ASX 200 (ASX:XJO) midday update: Afterpay-Block deal approved, Fortescue downgraded
• 2 highly-recommended ASX shares to buy
• 6 ASX shares involved with green metals

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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The Whitehaven Coal Ltd (ASX: WHC) share price has rocketed in the past month.

Shares in the coal miner have gained around 20% in that time although, in afternoon trade today, Whitehaven shares are down 0.53%, currently trading at $2.86 apiece.

Let’s take a look at what may be behind the movement in the company’s share price lately…

What’s impacting Whitehaven Coal

The Whitehaven Coal share price has risen in the past month despite no price sensitive news from the company. However, rising demand for coal and elevated prices may have impacted investor confidence.

Whitehaven is one of the most significant coal players in Australia, with exploration at four mines in NSW and two development assets in Queensland.

Likely driving the share price hike over the past month was news the world’s biggest thermal coal exporter, Indonesia, had banned coal exports.

Rueters reported the south-east Asian country had imposed the ban due to concerns for its own power demand.

Investors likely see the ban as providing more opportunities for Whitehaven Coal and other competitors to export the product while also driving up the price of coal.

Indeed, the coal price has increased by 20% since market close on 10 December and is now trading at US$197 per tonne.

Also spurring the Whitehaven Coal share price may be positive broker recommendations. Six brokers have issued a buy rating on the miner.

As my Foolish colleague Tristan reported two days ago, Citi has placed a $3.20 price target on Whitehaven Coal. That’s around 10% more than the current share price at the time of writing.

In the last update from the company in October, Whitehaven Coal CEO Paul Flynn said rising thermal coal prices would also lead to “significant cash generation” in the coming months.

Share price snap shot

The Whitehaven Coal share price gained 80% in the past year. That’s far more robust the benchmark S&P/ASX 200 Index‘s (ASX: XJO) return of around 12% for the same period.

Shares in Whitehaven are up 4% in the past week.

The company has a market capitalisation of nearly $3 billion based on the current share price.

The post Why has the Whitehaven Coal (ASX:WHC) share price rallied 20% in a month? appeared first on The Motley Fool Australia.

More reading

• 2 highly-recommended ASX shares to buy
• The 5 best ASX energy shares of 2021 unmasked
• Why Brainchip, Pilbara Minerals, Straker, and Whitehaven Coal shares are pushing higher
• ASX 200 (ASX:XJO) midday update: Pilbara Minerals hits record high, energy shares rise
• Why the Whitehaven Coal (ASX:WHC) share price is jumping 9% today

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 rising popularity of Bitcoin is posing a threat to financial markets and ASX investors should be alive to this risk as well.

An analysis undertaken by the International Monetary Fund (IMF) found a high correlation between cryptocurrencies and major share indices.

This means that cryptos, such as Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), moved in tandem with share markets. This has implications for the ASX on a number of fronts.

The connection between Bitcoin and shares

“Crypto assets are no longer on the fringe of the financial system,” said the IMF in its blog post.

“Amid greater adoption, the correlation of crypto assets with traditional holdings like stocks has increased significantly, which limits their perceived risk diversification benefits and raises the risk of contagion across financial markets.”

The market value of cryptos surged to around US$3 trillion in November last year from $620 million in 2017.

Why Bitcoin is more correlated now

The connection between the digital asset class and shares didn’t quite exist till the outbreak of the COVID-19 pandemic in early 2020.

Pre-COVID, cryptos and shares moved independently. But the flood of money unleashed by central banks around the world changed that, according to the IMF.

Why ASX investors should care is because of the potential spill-over effects. For instance, if the price of Bitcoin crashes, it could trigger a sharp sell-off in global shares.

How cryptos can cause a share market crash

This isn’t as farfetched as you might think. The IMF calculated that around one-sixth of the volatility on the S&P 500 (INDEXSP: .INX) is caused by the volatility of Bitcoin.

“As such, a sharp decline in Bitcoin prices can increase investor risk aversion and lead to a fall in investment in stock markets,” added the IMF.

“Spillovers in the reverse direction—that is, from the S&P 500 to Bitcoin—are on average of a similar magnitude, suggesting that sentiment in one market is transmitted to the other in a nontrivial way.”

No safe haven for Bitcoin investors

The other follow-on effect for ASX investors to note is that Bitcoin doesn’t make a good safe haven asset. There has been plenty of talk about how Bitcoin could replace gold.

But gold has a much weaker correlation to shares. History has repeatedly shown that gold outperforms during a financial crisis, such as the GFC. As it turns out, Bitcoin could actually be a source of a financial crisis.

Another point to note is that it may only be a matter of time before global regulations are imposed on cryptos.

Foolish takeaway

If the IMF’s analysis is right, it is unlikely that governments would allow cryptos to trade without the same rules that apply to other assets in the financial system.

What’s also interesting is that the IMF article doesn’t talk about what happens when central banks withdraw stimulus.

If the sharp increase in loose monetary conditions drove an increase in correlation between crypto and shares, will the reverse happen when monetary conditions tighten as they surely will?

The post Is Bitcoin making share prices more volatile? appeared first on The Motley Fool Australia.

More reading

• Bitcoin, Ethereum, and Dogecoin surge higher as crypto markets recover
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• Forget Bitcoin! These were the 5 crypto assets you wish you’d held in 2021
• Bitcoin and Ethereum are crashing: Is now the time to invest?
• The Bitcoin (CRYPTO:BTC) price has tumbled 10% since the start of 2022. Is it a buy?

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. 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 S&P/ASX 200 Index (ASX: XJO) is back on form on Wednesday. In afternoon trade, the benchmark index is up 0.65% to 7,438.8 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s share price is down 4.5% to $107.06. This appears to have been driven by an update from its US parent overnight. According to CNBC, the pizza giant warned that it is expecting “unprecedented” food cost increases in 2022. Domino’s US is forecasting an 8% to 10% rise in its food basket costs. This is three to four times the food inflation experienced in a typical year.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price is down 1.5% to $20.85. Investors have been selling the mining giant’s shares following the release of a broker note out of Citi. According to the note, the broker has downgraded the company’s shares to a sell rating with a $17.20 price target. Citi made the move largely on valuation grounds.

Medibank Private Ltd (ASX: MPL)

The Medibank share price is down 2% to $3.48. This decline could have been driven by calls for the private health insurer to give more of its COVID savings back to members. The Private Hospitals Association chief executive, Michael Roff, has questioned the transparency of how health funds returned COVID-related savings. He has called for formal government monitoring of health fund balance sheets.

Metcash Limited (ASX: MTS)

The Metcash share price is down 4% to $4.09. This is despite there being no news out of the wholesale distributor. However, investors may be concerned that Metcash could be struggling from current supply chain issues which have left many supermarket shelves bare.

The post Why Domino’s, Fortescue, Medibank, and Metcash shares are falling appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to sell today
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• Why this top broker says the Fortescue (ASX:FMG) share price is overinflated
• 3 fantastic ASX growth shares rated as buys
• Medibank (ASX:MPL) share price shrugs off further questions over profit paybacks

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 Dominos Pizza Enterprises 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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The Bubs Australia Ltd (ASX: BUB) share price faced a difficult 12 months amid COVID-led channel disruptions. This caused volatility across the sector as investor confidence continued to weigh down the company’s shares.

At the time of writing, the infant formula company’s shares were edging 1.05% into the green at 48 cents apiece. It’s a sharp contrast from when Bubs shares were trading around the $1.40 mark before the pandemic began.

How is Bubs performing to date?

In its annual general meeting presentation released on 30 November, Bubs highlighted a turnaround to accelerated growth.

Responding to rapidly changing market dynamics, Bubs quickly adapted and returned the business to strong revenue margins in Q1 FY22.

As such, the first three months of the new financial year brought in revenues of $18.5 million. This represented a 45% increase on the previous quarter and a 96% lift on the prior corresponding period.

Bubs attributed the record sales volume to its growing brand awareness and market expansion. Strategic focus was placed on providing resilience, diversification of its customer base, and efficiencies across the entire business.

What’s ahead Bubs shares?

As my Foolish colleague Tristan pointed out late last month, Bubs has received a “buy” rating from multinational investment bank Citi.

Its team of analysts put a 12-month price target for the infant formula company at 58 cents per share. This implies an upside of around 22% based on the current Bubs share price.

The broker noted the robust recovery with Bubs’ operational action plan currently ahead of schedule. Key priorities include specialty dairy focus, margin improvement, daigou 2.0, and rebalancing inventory levels.

Bubs share price summary

It’s been a challenging year for Bubs shareholders, with the company’s shares falling around 15% over the past 12 months.

Since hitting a low of 31.5 cents in May, the company’s shares have continued their rollercoaster ride.

Based on valuation grounds, Bubs commands a market capitalisation of around $294 million.

The post Can the Bubs (ASX:BUB) share price bounce back in 2022? appeared first on The Motley Fool Australia.

More reading

• Are these 2 impressive ASX shares buys for 2022?

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 recommended BUBS AUST FPO. 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 diversified mining company South32 Ltd (ASX: S32) have nudged past 52-week highs today after pushing less than 2% higher on Wednesday.

South32 shares are now changing hands at $4.12 apiece after rallying as high as $4.19 and as low as $4.11 throughout the session.

Another record high for South32

It was a formidable year in 2021 for South32, with investors realising a 62% gain after shares jumped from a low of $2.78 back in August.

Since then, the South32 share price has been on an upward trajectory and shows no signs of slowing in today’s session.

Investors bought in at the lows following the release of its FY21 results which were a solid outcome for the company. South32 grew revenue 4% year on year to US$6.3 billion whereas EBITDA expanded by 32% to US$1.56 billion.

Much of the growth was underscored by corresponding record production throughout its portfolio constituents from projects like Australia Manganese, Worsley Alumina and also Brazil Alumina.

Aside from that, South32’s recent equity stake in the Sierra Gorda copper mine in Chile has given investors and brokers alike another boost of confidence.

For instance, Goldman Sachs reckons that South32 is a worthy aluminium play over the medium to long-term. The broker notes that South32 is “seeing positive sign posts on China production caps with greater focus on environmental issues, positively impacting price”.

As such, it estimates a free cash flow yield of around 16-18% in FY22 and FY23 for South 32 – over 20% at spot when factoring in the economics of this forecast, and values the company at $4.40 per share.

Macquarie is also constructive on South32, rating it as a buy on a $5.20 per share valuation. The investment bank also likes South32’s exposure to the mine in Chile in terms of free cash flow and forecasts a fully-franked dividend yield of 6% for investors to sink their teeth into in FY22.

Aside from these points, several of South32’s underlying commodities are well within another upswing and are showing strengths once again.

For instance, the price of aluminium is surging back towards 10-year highs at US$2,960/tonne, whereas zinc is now trading near the same record levels at US$3,607/tonne. Each of the metals has gained 46% and 30% in the past year, respectively.

Given the strengths in South32’s operations and underlying commodity markets, the picture starts to form as to what might be underpinning the South32 share price today.

South32 share price snapshot

In the last 12 months, the South32 share price has climbed more than 57% after rallying another 8% in the past month.

Shares have rallied this year to date as well and now sit 3% in the green, building on momentum earned in 2021.

Each of these returns is well ahead of the benchmark S&P/ASX 200 Index (ASX: XJO)’s return in the last year.

The post Why is the South32 (ASX:S32) share price hitting all-time highs today? appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares on Friday
• Brokers name 3 ASX shares to buy today
• Why the South32 (ASX:S32) share price jumped 62% in 2021
• ASX 200 (ASX:XJO) midday update: Afterpay sinks again, BHP and Rio rise
• Why the South32 (ASX:S32) share price is pushing higher again today

The author 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 Mesoblast Limited (ASX: MSB) share price is in the green on Wednesday.

The stock’s boost has come the same day the regenerative medicine company released the results of a 36-month follow-up on a phase 3 trial. Within the trial, patients with chronic low back pain were treated with rexlemestrocel-L.

At the time of writing, the Mesoblast share price is $1.34, 1.9% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.71%.

Let’s take a closer look at the non-price sensitive news released by the biotech company this morning.

Mesoblast gains amid news of another phase 3 trial

The Mesoblast share price is taking off today as its CEO, Dr Silviu Itescu prepares to present the results of a 3-arm trial at a showcase this week.

The trial found a single intra-discal injection of the company’s allogeneic cell therapy rexlemestrocel-L, along with a hyaluronic acid carrier, may help reduce pain from chronic lower back pain associated with degenerative disc disease for up to 36 months.

According to the company, there is an unmet need for safe, effective, and lasting opioid-sparing treatment for the condition.

So far, it has noted the durability of pain reduction from rexlemestrocel-L was greatest in those who have had chronic lower back pain for less than 68 months (around 5.6 years).

Mesoblast states this suggests the drug is most effective when there’s active inflammation from the disease and before irreversible fibrosis of the intervertebral disc occurs.

Additionally, patients who used opioids and received treatment with rexlemestrocel-L seemed to experience greater pain reduction than those who receive saline controls.

In fact, 28% of patients who were taking opioids and received an intra-discal injection of rexlemestrocel-L stopped taking their opioids.

That’s compared to 8% of those who received the saline control.

The company has also received feedback from the US Food & Drug Administration’s Office of Tissues and Advanced Therapies on the phase 3 program.

On the back of the feedback, it plans to conduct another phase 3 trial. This one could support submissions for approval in the US and EU.

The new trial’s endpoint will be pain reduction at the 12-month mark. Its secondary endpoints will be functional improvement and reduction in opioid use.

Mesoblast share price snapshot

The Mesoblast share price has been suffering lately.

The company’s stock is currently trading for 23% less than it was this time last month. It’s has also fallen 48% since this time last year.

The post Why is the Mesoblast (ASX:MSB) share price taking off on Wednesday? appeared first on The Motley Fool Australia.

More reading

• The Mesoblast (ASX:MSB) share price has tumbled 25% in a month. What’s going on?
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• Why the Mesoblast (ASX:MSB) share price is rising 5% today
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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 Pilbara Minerals Ltd (ASX: PLS) share price is having yet another positive day.

So much so, the lithium miner’s shares have hit a record high of $3.65 on Wednesday.

This means that Pilbara Minerals’ shares are now up a massive 35% in the space of a month.

Why is the Pilbara Minerals share price charging higher today?

Investors have been bidding the Pilbara Minerals share price higher on Wednesday following the release of a note out of Citi.

According to the note, although the broker has only retained its neutral (high risk) rating, it has lifted its price target by a sizeable 44% to $3.60.

This is broadly in line with where the Pilbara Minerals shares price is trading this afternoon.

What is the broker saying?

While Citi isn’t recommending investors buy the company’s shares, it also believes that it is “too early to sell”. This is due to its belief that lithium prices will remain higher for longer.

The broker explained: “We expect demand to remain strong amid mild supply growth over the next six months, resulting in pricing staying higher for longer through the first half of 2022.”

“We maintain Neutral/High Risk rating on PLS and believe the recent share price performance largely captures expected favorable earnings momentum,” Citi has also stated.

What are other brokers saying?

The team at Macquarie Group Ltd (ASX: MQG) believe the Pilbara Minerals share price is also trading close to fair value now.

The broker recently put an outperform rating and $3.70 price target on its shares. It is predicting lithium prices to remain at record levels for the next four years, which led to its analysts making significant upgrades to their earnings estimates for Pilbara Minerals and other lithium miners.

The post Pilbara Minerals (ASX:PLS) share price hits record high as Citi says ‘too early to sell’ appeared first on The Motley Fool Australia.

More reading

• Why is the Pilbara Minerals (ASX:PLS) share price having such a stellar start to 2022?
• These were the best performing ASX 200 shares last week
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Here are the 5 best performing ASX 200 mining and resource shares of 2021
• Here are the 3 most heavily traded ASX 200 shares this Thursday

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. 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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Looking back on 2021, it was certainly an eventful year filled with ups and downs. The prolongation of impacts from COVID-19 impeded some companies, while others managed to march onwards and upwards. To understand exactly how it played out, we’re reviewing the best and worst ASX sectors of last year.

The placing of sectors might be a surprise to investors. Likewise, the sheer scale of returns from some of the market’s sectors in a single 12-month period is mindblowing.

Let’s dive into the breakdown.

What were the best ASX sectors of 2021?

Out of the 11 sectors that make up the S&P/ASX 200 Index (ASX: XJO), only two finished the year in the negative. This helped the benchmark index achieve a 13% return, which is well above the historical average.

However, there were three sectors that did a fair chunk of the heavy lifting when it came to last year’s gains. These were telecommunications, consumer discretionary, and financials. All three of these sectors conjured up a remarkable 20%-plus return in 2021.

Zeroing in on telecommunications, this quiet-achieving ASX sector rocketed 28.5% higher last year. Thunderous rallies in Telstra Corporation Ltd (ASX: TLS) and Uniti Group Ltd (ASX: UWL) put this segment of the market out in front.

The next best sector, consumer discretionary, served up a 21.3% return at the end of 2021. Major contributors to this market-beating performance included Domino’s Pizza Enterprises Ltd. (ASX: DMP), Idp Education Ltd (ASX: IEL), Aristocrat Leisure Limited (ASX: ALL), and ARB Corporation Limited (ASX: ARB).

Financials was the third-best ASX sector of the previous year. A rebounding economy and strong demand for home lending boosted the share prices of major banks. The big four all cemented solid gains last year, however, it was Macquarie Group Ltd (ASX: MQG) with a 48% return that bumped up the sector.

In the 2021 doghouse

Not every sector was as fortunate as the ones mentioned above. The two segments of the share market finishing in the negative last year were energy and information technology.

Firstly, energy suffered a challenging year with large oil and gas companies, such as Woodside Petroleum Limited (ASX: WPL) and Santos Ltd (ASX: STO), dragging. Despite the price per barrel of crude oil increasing 55% in 2021, these giants struggled as they both underwent separate merger deals. The energy sector fell 2% over the 12-month timeframe.

Secondly, tech shares lost favour among investors as fears of rising interest rates loomed. This once high-flying sector shed 2.8% in 2021. Two shares falling from their prior market darling status were Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX).

Why this year could be different?

While there are circulating fears of rising interest rates, one expert has offered calm to the concerns. In a possibly contrarian take, Chris Demasi of Montaka Global Investments highlighted his expectation for rates to stay lower for longer.

In conversation with Livewire, Demasi said:

We’ve got populations that are ageing, we’ve got the use of technology that’s intensifying and that boosts productivity, and then on top of that, we’ve got very, very high loads of debt around in the world. And all three of those things say interest rates are going to be lower for longer. 

Based on this, we could potentially see a reversal in the ASX tech sector if rates turn out to be less of a fear than first thought.

The post The best and worst ASX sectors of 2021. Why this year could be different appeared first on The Motley Fool Australia.

More reading

• Here are the 5 best performing ASX ETFs of 2021
• ASX 200 (ASX:XJO) midday update: Afterpay-Block deal approved, Fortescue downgraded
• 2 ASX 200 shares that could be top buys for dividends
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX shares today

Motley Fool contributor Mitchell Lawler owns Afterpay Limited, Appen Ltd, and Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Afterpay Limited, Appen Ltd, and Idp Education Pty Ltd. The Motley Fool Australia owns and has recommended Afterpay Limited, Appen Ltd, and Telstra Corporation Limited. The Motley Fool Australia has recommended ARB Corporation Limited, Dominos Pizza Enterprises Limited, Macquarie Group Limited, and Uniti 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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Although the ASX share market has had a rather rocky start to 2022, remember that 2021 was a pretty decent year for ASX shares overall. In the year that has just passed us by, the S&P/ASX 200 Index (ASX: XJO) returned roughly 13% (plus dividends and franking). That, in turn, means that any ASX index exchange-traded fund (ETF), which are perenially the most popular ETFs on the market, would have more or less matched that return.

But some ETFs managed a 2021 performance far exceeding that benchmark. So here are the ASX’s best performing ETFs of 2021.

The 5 best performing ASX ETFs of 2021

iShares S&P 500 ETF (ASX: IVV)

This ETF from BlackRock’s iShares is our first high flyer to check out today. IVV is a rather simple ETF, covering the most-tracked index in the world, the US S&P 500. This index tracks 500 of the largest companies on the US markets. These include everything from the US tech giants like Apple Inc (NASDAQ: AAPL) and Amazon.com Inc (NASDAQ: AMZN) to Warren Buffett’s Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK.B), Adobe Inc (NASDAQ: ADBE) and Ford Motor Company (NYSE: F).

IVV returned 36.36% in 2021, making it the ASX’s fifth best-performing ETF.

iShares Core MSCI World ex Australia ESG Leaders ETF (ASX: IWLD)

Another iShares ETF, this fund comes in next. IWLD is an ETF that focuses on mid- and large-cap companies from outside Australia, selected for “leading ESG practices within their industry”. At the time of writing, this ETF has 720 holdings, the largest mostly coming from the US markets. We have Apple and Microsoft Corporation (NASDAQ: MSFT), as well as Tesla Inc (NASDAQ: TSLA), Mastercard Inc (NYSE: MA) and Toyota Motor Corp (NYSE: TM).

IWLD returned just over 38% for the 2021 calendar year.

SPDR Dow Jones Global Real Estate Fund (ASX: DJRE)

Our third top-performing ETF of 2021 is a little different. Rather than racking large baskets of shares, this ETF only holds real estate investment trusts (REITs) and other property-linked companies and funds from around the world. The ASX’s Goodman Group (ASX: GMG) is a large holding here, as well as other shares like Prologis Inc (NYSE: PLD) and Public Storage (NYSE: PSA). Over 2021, DJRE returned 38.56%, of which 4.05% came from dividend distributions.

BetaShares Crude Oil Index ETF (ASX: OOO)

A whole different kettle of fish again, this EFT from BetaShares takes the silver medal for 2021 performance. OOO is a pure-play commodities fund. It tracks an index that reflects the performance of crude oil futures. As you may be aware, oil had a dramatic 2021, rising to levels we haven’t seen for years. This is reflected in this ETF’s performance, which gave investors a healthy return of 47.8% over the year just gone.

BetaShares Geared US Equity Fund (ASX: GGUS) and ETFS Ultra Long Nasdaq 100 Hedge Fund (ASX: LNAS)

In a 2-for-1 special, these two ETFs were the best performing of the entire ASX last year. We’ll look at them together since they largely operate in a similar manner, and track similar markets. These two ETFs are ‘leveraged’ (or geared) which means they use borrowing to potentially magnify the gains (or losses) of the indexes they track.

BetaShares’ GGUS covers the S&P 500 Index, while ETFS’ LNAS covers the Nasdaq 100. Fortunately for investors, last year was a lucrative one for both of these indexes, which means that these ETFs recorded larger gains again due to their leveraged nature. LNAS returned a total of 64.7% in 2021, while GGUS gave back a very pleasing 66.25%, making it the best ASX ETF on the market.

The post Here are the 5 best performing ASX ETFs of 2021 appeared first on The Motley Fool Australia.

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Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen owns Ford, Mastercard, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Microsoft. The Motley Fool Australia has recommended Adobe Inc., Amazon, Apple, Berkshire Hathaway (B shares), Mastercard, 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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