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The Aurizon Holdings Ltd (ASX: AZJ) share price has failed to gain traction in November following weak investor sentiment. The coal rail freight operator hasn’t released any price-sensitive announcements since its acquisition of One Rail Australia.

At the time of writing, Aurizon shares are down 0.59% to $3.39 for the day. However, since October 21, they are down more than 12%.

Below, we take a look at what’s weighing down the company’s share price.

What’s happening with Aurizon?

Investors have been sending the Aurizon share price lower following a strong retrace in the spot price of coal.

Since late last month, the price of coal has tumbled close to 40% after reaching a record high of US$280 per tonne in early October.

COVID-19-related disruptions, China import restrictions, and the global push for clean renewable energy sources have led to weaker demand for coal. Currently, the price of coal is around US$127 per tonne.

Despite the challenging markets, the company recently announced the purchase of One Rail Australia. This is expected to provide an additional growth platform, connecting central Australia operations. Increased commodity exposure to new markets will also further diversify the current bulk business.

The sheer size of the acquisition nearly doubles Aurizon’s existing rail infrastructure. However, some brokers appear pessimistic about the latest takeover as this will affect shareholder payouts.

Swiss investment firm UBS rated the company as “neutral” from “buy”, and slashed its outlook by 33% to $3.50 per share.

RBC Capital Markets also followed suit, downgrading to an “underperform” status, as well as cutting its rating by 8.3% to $3.30 apiece. Based on the current share price, this implies a downside of around 2.6%.

Aurizon share price summary

Up until late October, the Aurizon share price had been in positive territory for the past 12 months. However, a strong selloff led its shares to hit a multi-year low of $3.35 last week.

Currently, the company’s share price is treading 20% lower than it was this time last year and is down around 12% year-to-date.

Aurizon presides a market capitalisation of roughly $6.28 billion, with approximately 1.84 billion shares on issue.

The post Why has the Aurizon (ASX:AZJ) share price struggled this month? appeared first on The Motley Fool Australia.

More reading

• Is the Aurizon (ASX:AZJ) share price undervalued in November?
• Top ASX shares to buy in November 2021

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 Aurizon Holdings 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 All Ordinaries Index (ASX: XAO) is having a fantastic day today, shaking off yesterday’s market blues. At the time of writing, the All Ords is up a healthy 1.29% at 7,660 points. But one ASX share is topping even that robust performance. That would be the Australian Finance Group Ltd (ASX: AFG) share price.

Australian Finance Group shares are currently up a pleasing 3.5% at $2.63 a share. What’s the occasion? Well, this rise is likely due to an announcement the company made this morning before market open.

Australian Finance Group announced it is acquiring a 75% stake in the asset finance aggregator National Finance Alliance Pty Ltd, which commercially trades as Fintelligence. This will set Australian Finance Group back $52.5 million, which will be “primarily funded” through a “new corporate debt facility”. 

Australian Finance Group share price rises amid acquisition

Australian Finance Group told investors that Fintelligence is a “fast-growing, technology-enabled asset finance aggregation business of scale which will drive further growth in AFG’s asset finance volumes and market share”.

As part of the deal, Australian Finance Group will also have an “exclusive option” to acquire the remaining 25% of the company over the next 3 and a half years. That’s if Fintelligence achieves “agreed milestones”. Australian Finance Group is expecting the buyout to be completed by 31 December 2021. 

Australian Finance Group told investors that the tie-up will result in a combined 3,335 brokers at the company. That’s together with combined asset finance settlements of more than $1.7 billion per annum.

The company also stated the deal is “expected to be [earnings per share] accretive” in the first full year of integration. The funding structure will also allow Australian Finance Group to maintain its dividend policy.

Here’s some of what Australian Finance Group CEO David Bailey had to say on the deal:

This acquisition represents a significant opportunity to build a fast-growing, technology-enabled asset finance aggregation business of scale. 

It will drive growth in AFG’s asset finance volumes, market share for the combined group, and more lender and product opportunities for brokers and their customers. In addition, the acquisition allows AFG to increase the availability of white label and securitised asset finance products to meet the needs of our brokers and customers.

At the current Australian Financial Group share price, this ASX company has a market capitalisation of $683 million.

The post Australian Finance Group (ASX:AFG) share price lifts on acquisition news appeared first on The Motley Fool Australia.

More reading

• What’s weighing on the Northern Star (ASX:NST) share price today?
• Why AMP, Collins Foods, Credit Corp, and Orocobre shares are charging higher
• IDT Australia (ASX:IDT) share price rockets 40% on COVID vaccine update
• 2 ASX shares looking good in turbulent times
• Why is the Woodside (ASX:WPL) share price climbing today?

Motley Fool contributor Sebastian Bowen 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 Northern Star Resources Ltd (ASX: NST) share price is down 0.7% at time of writing, having earlier been down more than 1.5%.

This comes as the broader S&P/ASX 200 Index (ASX: XJO) is enjoying a strong rebound from the past days’ selling, currently up 1.2%.

But it’s not just the Northern Star share price underperforming the benchmark today.

Fellow ASX 200 gold producer Newcrest Mining Ltd (ASX: NCM) is down 1.3%, and Regis Resources Limited (ASX: RRL) is also down 1.3%.

So, what’s happening with ASX gold shares today?

What’s going on in the global gold market?

The Northern Star share price and other ASX gold shares are likely taking a hit from a slipping gold price.

Heading into the weekend, the yellow metal was trading for US$1,802.60 per ounce. The gold price was on the rise as investors sought out the classic haven asset amid fear the new Omicron COVID variant might disrupt the global economic recovery.

Since then, gold has retraced to US$1,785.17 per ounce, down some 1%.

Looking ahead, what can investors expect next for the Northern Star share price?

According to Howie Lee, an economist at Oversea-Chinese Banking Corp (quoted by Bloomberg):

Overall we expect a period of heightened volatility, even with industrial metals. The virus’ actual impact is not fully known at this point – depending on how the situation evolves, we may see either a rebound or a continued selling off. More clarity, we expect, will arrive after two weeks.

Gold bugs are also closely watching the US Federal Reserve for any hints that the world’s most influential central bank may tighten its monetary policies sooner than forecast. Lee added:

The market remains wary of the impact of the Fed’s increasingly hawkish stance on interest rates, despite virus fears. Short term, we expect more funds to flow into haven assets like gold, but long-term we expect global rate normalisation to keep a lid on gold’s prices.

Northern Star share price snapshot

The Northern Star share price has struggled this year, down 27% since 4 January. By comparison, the ASX 200 is up 10% year-to-date.

Over the past month, Northern Star shares have gained 6%.

The post What’s weighing on the Northern Star (ASX:NST) share price today? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Wednesday
• 2 ASX shares rated as buys by multiple brokers
• Northern Star (ASX:NST) share price slumps despite acquisition news

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 S&P/ASX 200 Index (ASX: XJO) has returned to form and is charging higher on Tuesday. In afternoon trade, the benchmark index is up 1.1% to 7,321.3 points.

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

AMP Ltd (ASX: AMP)

The AMP share price is up over 7% to $1.08. This follows the release of a demerger and strategy update this morning. That update revealed how AMP intends to operate its PrivateMarketsCo business once demerged. Management intends to focus on leveraging its significant opportunity to become a global leader in the fast-growing private markets industry.

Collins Foods Ltd (ASX: CKF)

The Collins Foods share price has jumped 8.5% to $13.58. Investors have been buying this quick service restaurant operator’s shares following the release of a strong half year result. Collins Foods reported a 9.5% increase in revenue to a record of $534.2 million and a 31.6% jump in underlying net profit after tax to $28.9 million. A strong performance from the KFC Europe business helped drive its growth.

Credit Corp Group Limited (ASX: CCP)

The Credit Corp share price is up 10% to $33.30. This follows the announcement of the acquisition of Radio Rentals for $60 million. Credit Corp notes that it provides the cheapest and most sustainable finance to the Australian credit impaired consumer market and its entry into this new segment will be consistent with that approach. Management also upgraded its guidance to account for the acquisition.

Orocobre Limited (ASX: ORE)

The Orocobre share price is up over 8% to $10.27. Investors have been buying this lithium miner’s shares following the release of its annual general meeting update. That update revealed that Orocobre has continued to experience strong lithium prices during the current quarter. In fact, it expects quarterly prices at Mt Cattlin to be almost double what it received during the September quarter.

The post Why AMP, Collins Foods, Credit Corp, and Orocobre shares are charging higher appeared first on The Motley Fool Australia.

More reading

• Credit Corp (ASX:CCP) share price soars 8% on Radio Rentals acquisition
• ASX 200 (ASX:XJO) midday update: AMP shares jump, Collins Foods impresses
• Why the Orocobre (ASX:ORE) share price is up 6% to a record high today
• Collins Foods (ASX:CKF) share price higher on finger-lickin’ good result
• AMP (ASX:AMP) share price in focus following demerger and strategy update

Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited and Orocobre 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 has recommended Collins Foods 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 IDT Australia Limited (ASX: IDT) share price is entering the stratosphere today. This comes after the pharmaceutical manufacturing company announced a significant market update in regards to Australia’s mRNA manufacturing capability.

At the time of writing, IDT Australia shares are up 40.23% to 61 cents. This means that its shares have now more than tripled since the start of the year.

IDT Australia marks milestone achievement 

Investors appear excited about the company’s latest COVID-19 update, rallying up the IDT Australia share price.

According to its release, the company advised it has successfully created Australia’s first mRNA COVID-19 vaccine candidate.

The drug product passed all the required specifications and is now going through the release process for clinical trials. In total, 450 doses of the vaccine have been manufactured, allowing 150 volunteers to take part in the upcoming study. This is expected to commence in the new year, with results expected later in 2022.

Last month, IDT Australia entered into a Master Services Agreement and Services Order with Monash Institute of Pharmaceutical Sciences (MIPS). Following completion of the successful manufacture, IDT Australia will begin testing ongoing product stability.

A collaboration between MIPS, Doherty Institute and IDT Australia has put Victoria’s medical research and manufacturing sectors in the spotlight. The state is one of the few places in the world with the capability to develop and manufacture mRNA therapeutics.

IDT Australia CEO, Dr David Sparling commented:

We’re honoured to be a part of this collaboration. We believe this product will be the first locally developed mRNA COVID-19 vaccine candidate and the first locally manufactured cGMP mRNA drug product.

About the IDT Australia share price

Over the past 12 months, IDT Australia shares have gained around 215%. Year-to-date has surged even further, with the company share price up 225%.

IDT Australia presides a market capitalisation of roughly $143.92 million and has approximately 239.86 million shares outstanding.

The post IDT Australia (ASX:IDT) share price rockets 40% on COVID vaccine update appeared first on The Motley Fool Australia.

More reading

• Why AMP, Collins Foods, Credit Corp, and Orocobre shares are charging higher
• 2 ASX shares looking good in turbulent times
• Why is the Woodside (ASX:WPL) share price climbing today?
• VGS vs VAS: Which ETF comes out on top?
• Leading brokers name 3 ASX shares to sell today

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 Winsome Resources Limited (ASX: WR1) share price is soaring after the company’s initial public offering (IPO).

The lithium explorer and developer’s stock hit the ASX at 12.30pm AEDT today.

At the time of writing, the Winsome Resources share price is 29 cents, 45% higher than its prospectus‘ offer price of 20 cents.

However, shortly after debuting, the company’s stock was trading for 30 cents apiece, representing a 50% gain.

Here are all the details market watchers need to know about the ASX’s newest member.

What does the company do?

Winsome Resources is a spin-out of ASX favourite Metalstech Ltd (ASX: MTC). The newly formed company has taken over its parent company’s Canadian lithium assets.

That sees it exploring and developing 3 lithium projects in the Quebec Province. These are:

• The Cancet Project, comprising 395 claims. It’s the most advanced of Winsome’s projects.
• The Adina Project, which comprises 57 claims.
• The Sirmac-Clapier Project, made up of 77 claims.

Winsome Resources intends to sell spodumene concentrate from the projects to North America’s battery market.

The company claims lithium is essential for Canada’s financial security, transition to a low-carbon economy, and its electric vehicle sector.

Winsome Resources’ IPO

Winsome Resources raised $18 million through its oversubscribed IPO, issuing 90 million shares for 20 cents apiece.

The funds raised will allow the company to operate as a stand-alone listed entity.

As part of the spin-off, Metalstech shareholders will retain 45 million shares in Winsome Resources. The holding is to be distributed in-specie to Metalstech shareholders.

Another 1.45 million shares will go to the company’s directors.

The offer price and high level of demand for Winsome Resources’ shares leave the company with an expected market capitalisation of around $28.4 million and approximately 141.9 million shares outstanding.

However, at its current share price, Winsome Resources has a valuation of around $40 million.

On Winsome Resources’ future, the company’s managing director Chris Evans commented:

Current trends show up to 10 times more lithium is required in the next decade to meet the demand and it is going to require a huge investment to get there.

With more than 99% of the world’s lithium reserves located in Australia, Argentina, Chile, and China, our projects offer jurisdictional diversity and opportunity to contribute to the expanding North American battery industry.

The post Winsome Resources (ASX:WR1) share price surges 50% following IPO appeared first on The Motley Fool Australia.

More reading

• Why AMP, Collins Foods, Credit Corp, and Orocobre shares are charging higher
• IDT Australia (ASX:IDT) share price rockets 40% on COVID vaccine update
• 2 ASX shares looking good in turbulent times
• Why is the Woodside (ASX:WPL) share price climbing today?
• VGS vs VAS: Which ETF comes out on top?

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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With the world in a state of anxiety about the new COVID-19 Omicron variant, it might be worthwhile taking shelter under some ASX shares with a reliable track record.

Medallion Group analyst Jean-Claude Perrottet singled out 2 such old reliables this week:

You need to breathe, regardless of economy

Over the last two decades, breathing devices maker Resmed CDI (ASX: RMD) certainly has provided smiles for its investors through thick and thin.

And Perrottet doesn’t see any reason why this would change now.

“First quarter 2022 revenue of $904 million beat expectations and was up 20 per cent on the prior corresponding period,” he told TheBull.

“Income from operations increased 21 per cent to $261.9 million.”

Resmed shares are up around 32% for the year, trading for $36.35 on Tuesday afternoon. But they are down about 10% since a September peak.

Perrottet is far from the only fan of this ASX share, with the team at Morgans giving it an “add” rating this week with a price target of $40.80.

“Strong demand for Resmed products paint[s] a bright outlook moving forward,” said Perrottet.

Pengana analyst Mark Christensen last month pointed out that demand for Resmed products is resilient through good and bad economic phases.

“People who use those products do so because they need them,” he said on a Pengana webinar.

“It’s not discretion.”

Pokies never go out of fashion

While gambling machine maker Aristocrat Leisure Limited (ASX: ALL) may not be every investor’s cup of tea, it has served its shareholders pretty well over the years.

Its shares have risen 195% over the past 5 years, even as the coronavirus pandemic forced poker machine players to stay at home.

According to Perrottet, its latest results were strong courtesy of a reopening surge in the North American market.

“The gaming machine company posted operating revenue of $4.736 billion in fiscal year 2021, a 14.4 per cent increase on the prior corresponding period,” he said. 

“Net profit after tax rose 114.4 per cent to $765.6 million.”

In recent years Aristocrat has grown its mobile gaming business, which has diversified its revenue sources.

“The company is proposing to acquire gambling software group Playtech PLC (LON: PTEC), although a potential rival bidder has emerged,” said Perrottet.

“The Playtech acquisition could provide significant upside.”

According to CMC Markets, 8 out of 13 analysts agree with Perrottet that Aristocrat shares are a “buy”.

The stock is up almost 44% for the year, trading at $44.96 on Tuesday afternoon.

The post 2 ASX shares looking good in turbulent times appeared first on The Motley Fool Australia.

More reading

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• Why a leading broker is bullish on these 3 ASX shares
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• 3 top ASX shares named as buys
• Analysts name 3 ASX shares to buy now

Motley Fool contributor Tony Yoo owns shares of ResMed Inc. 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 ResMed Inc. 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 Woodside Petroleum Limited (ASX: WPL) share price is well into the green in afternoon trade. Shares in the S&P/ASX 200 Index (ASX: XJO) energy giant are up 1.41% to $21.54 per share.

This comes on the back of a modest rebound in oil prices.

What’s happening with global oil markets?

Crude oil took its biggest fall over the weekend since the onset of the pandemic in early 2020.

Brent crude dropped from US$82.22 (AU$115.80) per barrel on Friday to US$72.72 on Saturday. The 12% price crash was spurred by fears that the Omicron variant arising in South Africa could derail global reopening plans and see the demand for oil evaporate.

Over the past 24 hours, Brent crude has edged 1% higher to US$73.44 per barrel, a move that’s likely helping support the Woodside share price today.

Looking ahead, oil traders are keeping a close eye on the Organization of Petroleum Exporting Countries (OPEC+). The 23-nation oil cartel is meeting tomorrow and Thursday to determine whether they’ll press ahead with their plan to increase the group’s production by another 400,000 barrels per day in January.

Some analysts are predicting OPEC will hold off on any further increase for now. They note that the release of emergency oil stockpiles by the United States and other nations will certainly be a talking point at the upcoming meeting.

And the unknowns surrounding Omicron aren’t likely to encourage a big output increase either.

According to Bob McNally, president of Rapidan Energy Group (quoted by Bloomberg), “The emergence of a new Covid variant that could spawn renewed shutdowns and travel restrictions is precisely the type of change in market conditions that could cause [OPEC] ministers to deviate from their plan [to add barrels].”

An expert’s view on the Woodside share price

Last week The Motley Fool had the opportunity to chat with Katana Asset Management’s co-founder Romano Sala Tenna. (You can find the full interview here.)

Regarding energy markets, and the Woodside share price, Tenna told the Motley Fool:

I think the energy market was sold down very aggressively over a short period of time. We’re now starting to see good value opportunities in the energy market, even though the headwinds are there. We’re starting to see Woodside trade on a single digit PER [price-earnings ratio]… We think the outlook for Woodside is very good. It’s been heavily sold down on the back of the ESG thematic.

Woodside share price snapshot

The Woodside share price has struggled in 2021. Starting the year at $23.07 per share, Woodside is currently down 5%. That compares to a year-to-date gain of 11% posted by the ASX 200.

Over the past month, the Woodside share price has slipped 7%.

The post Why is the Woodside (ASX:WPL) share price climbing today? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 (ASX:XJO) midday update: Omicron hits Flight Centre, Domino’s jumps
• ASX energy shares on watch after Omicron sparks oil price crash
• 5 things to watch on the ASX 200 on Monday
• Leading broker names 2 ASX energy shares to buy

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 ASX has dozens and dozens of exchange-traded funds (ETFs) available on its boards these days. Since the popularity of ETFs has been steadily rising among ASX investors for the past few decades, so too has the range and scope of these funds.

But even though Australian investors can now access ETFs that cover the most specific niches you can think of (oil futures, platinum bullion, etc), the traditional index ETFs that first helped the ETF structure get off the ground are still the most popular.

According to data from CommSec, the ASX ETF with the highest level of funds under management (FUM) is the Vanguard Australian Shares Index ETF (ASX: VAS).

VAS now has more than $9 billion in FUM, making it the most popular ASX ETF for Aussie investors. But Vanguard’s second most popular ETF (and the sixth most popular ETF overall) is another beloved fund, the Vanguard MSCI Index International Shares ETF (ASX: VGS).

2 of the ASX’s most popular ETFs

Both of these ETFs are index funds that track different indexes. VAS mirrors the S&P/ASX 300 Index (ASX: XKO), which holds the 300 largest ASX companies within it, weighted to market capitalisation.

You’ll find everything from the big ASX banks, Telstra Corporation Ltd (ASX: TLS) and BHP Group Ltd (ASX: BHP) to Woolworths Group Ltd (ASX: WOW), Harvey Norman Holdings Limited (ASX: HVN), and Afterpay Ltd (ASX: APT) here.

VGS, on the other hand, tracks the MSCI World ex-Australia Index. This index tracks a wide slice of the world’s largest companies that are domiciled in major advanced economies, also weighted to market cap. In practice, this ETF is heavily skewed to US shares, which command 69.9% of VGS’s entire portfolio. Other major contributors include Japan, the United Kingdom, Canada, France, and other European countries.

As such, its largest holdings are dominated by the US tech giants, including Apple Inc (NASDAQ: AAPL), Amazon.com Inc (NASDAQ: AMZN), and Microsoft Corporation (NASDAQ: MSFT). As well as Tesla Inc (NASDAQ: TSLA), Meta Platforms Inc (NASDAQ: FB) and Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL).

Some other notable holdings include Johnson & Johnson (NYSE: JNJ), Warren Buffett’s Berkshire Hathaway Inc (NYSE: BRK.A)(BRK.B), and Nestle SA.

So these two ETFs are among the ASX’s most popular index funds, covering two indexes that reflect a broad representation of most of the companies we could ever think of.

But how do they stack up?

VAS vs VGS: Which ASX ETF wins?

Well, in terms of diversification, VGS is the undisputed winner. VAS may cover all 300 shares in the ASX 300 Index. But VGS holds more than 1,500 individual companies across more than 20 countries. That’s a lot more diverse than the ASX-only VAS.

Turning to management fees, and the tables are turned. VGS does charge a competitive fee of 0.18% per annum (or $18 a year for every $10,000 invested). But VAS takes the cake here with an annual management fee of 0.1% (or $10 a year for every $10,000 invested).

But let’s check out the real McCoy, as it were: performance. After all, an ETF is arguably only as good as the returns it can get its investors.

So VAS has averaged a return of 28.66% over the past year (as of 31 October 2021). That is net of fees and assumes all dividend distributions are reinvested. But it doesn’t reflect the value of franking credits. Over the past 3 years, VAS has averaged a return of 12.26% per annum. Over 5, it’s 10.99% per annum, and 9.91% per annum over the past 10.

How does VGS stack up? VGS has given its investors a return of 31.4% over the past year. Over the past 3 years, it has averaged 16.05% per annum, and 15.96% over the past 5. This ASX ETF hasn’t been around for 10 years on the ASX. But it has managed a 13.84% average annual return since its inception in November 2014. 

Everybody wins?

So it seems VGS is the clear winner in terms of performance. But a caveat: US shares have been on an extremely strong bull run over the past decade or so, notwithstanding the market gyrations that last year brought us. There’s nothing that suggests this outperformance will continue over the next 10 years – or that it won’t, for that matter.

What really matters is that both of these ASX index funds have consistently compounded their investors’ money at a very healthy rate. Either ETF would have been a far superior choice than investing in gold, leaving your money in the bank in a savings account or term deposit, or investing in bonds.

So perhaps it’s no surprise that these 2 ASX ETFs – VAS and VGS – remain so popular with Australian investors.

The post VGS vs VAS: Which ETF comes out on top? appeared first on The Motley Fool Australia.

More reading

• 2 leading ASX ETFs for excellent global diversification
• 3 ETFs for ASX investors to buy now
• Here’s why not all ASX ETFs are created equal
• Why do investors buy the Vanguard Australian Shares Index ETF (ASX:VAS) when they can buy individual shares?
• 95% of investing in 4 simple steps

John Mackey, CEO of Whole Foods Market, an Amazon 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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen owns shares of Alphabet (A shares), Johnson & Johnson, Meta Platforms, Inc., Telstra Corporation Limited, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Alphabet (A shares), Meta Platforms, Inc., Microsoft, and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, Harvey Norman Holdings Ltd., and Telstra Corporation Limited. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Meta Platforms, Inc., and Vanguard MSCI Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Yesterday we looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:

Commonwealth Bank of Australia (ASX: CBA)

According to a note out of Credit Suisse, its analysts have retained their underperform rating and $92.50 price target on this banking giant’s shares. Although Credit Suisse believes APRA’s newly announced bank capital framework is a positive for the sector, it isn’t enough for a change of rating. The broker continues to believe that CBA’s shares are expensive at the current level and better value can be found elsewhere. The CBA share price is trading at $94.37 today.

Mineral Resources Limited (ASX: MIN)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $38.70 price target on this mining and mining services company’s shares. This follows news that it has signed an agreement with Hancock Prospecting and Roy Hill to investigate the development of a new iron ore export facility in Port Hedland. The broker doesn’t appear convinced by the move and sees downside risks to it. Particularly given how this could support increased supply and weigh on iron ore prices. The Mineral Resources share price is fetching $45.33 this afternoon.

Pact Group Holdings Ltd (ASX: PGH)

Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $3.30 price target on this packaging company’s shares. This follows the release of a trading update at its annual general meeting. That update revealed that its Contract Manufacturing business has been underperforming due to challenging trading conditions. This doesn’t appear to be a surprise to Morgan Stanley, which has been negative on the business for some time. And while the Pact share price has now fallen well beyond the broker’s price target, it doesn’t appear to be in a rush to change its rating.

The post Leading brokers name 3 ASX shares to sell today 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 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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