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The Westpac Banking Corp (ASX: WBC) share price struggled on Friday and finished the session at $25.88, down 0.46% for the day.

The S&P/ASX 200 Index (ASX: XJO) lost ground as well and closed at 7,403 points, down 0.80%.

Just over 4 months have come and gone since the bank reported its half-year results for the 6 months ending 31 March. Today, we take a look at how the Westpac share price has been performing since then.

But first, a quick review of the key results.

What half-year results did the big 4 bank report?

The Westpac share price was on watch on 3 May when the bank reported its half-year results before the market open.

Some of the core metrics included a statutory net profit after tax (NPAT) of $3.44 billion. That was up 189% from the prior corresponding period (pcp).

The bank’s cash earnings also leapt 256% compared to the pcp, reaching $3.54 billion.

Investors were likely pleased to receive an interim dividend of 58 cents per share this year, as the bank didn’t pay one in FY20.

Commenting on the results, Westpac’s CEO, Peter King said:

Our Australian mortgage book increased $2.6 billion over the past six months, with good growth in owner occupier loans partly offset by lower investor lending. Owner occupier loans increased 3 per cent, with first home buyers making up 13 per cent of new loans. We also managed margins well, with the margin up six basis points from second half 2020.

Westpac is scheduled to announce its full-year results on 1 November.

How has the Westpac share price performed since reporting?

ASX investors appear to have liked what they saw in the half-year results. The Westpac share price closed up 5% on the day of reporting.

Since reporting, the Westpac share price has gained 3.6%. By comparison, the ASX 200 is up 5.3% over that same time.

The post How has the Westpac (ASX:WBC) share price performed since reporting results? appeared first on The Motley Fool Australia.

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• Why this fund manager sees limited growth potential for ASX 200 banks
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• Could liar loans crash the housing market?
• How these 4 ASX 200 bank shares have performed since reporting results

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

Three sell ratings that caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

Fortescue Metals Group Limited (ASX: FMG)

According to a note out of UBS, its analysts have downgraded this mining giant’s shares to a sell rating and cut the price target on them to $15.00. The broker made the move on the belief that iron ore prices will continue to fall in the coming months. UBS suspects that prices could fall to between US$70 and US$80 a tonne. This would weigh on Fortescue’s free cash flow and dividends. The Fortescue share price ended the week at $15.27.

Magellan Financial Group Ltd (ASX: MFG)

Another note out of UBS reveals that its analysts have downgraded this fund manager’s shares to a sell rating and cut the price target on them materially to $35.00. UBS notes that Fortescue is experiencing fund outflows at a time when its investment performance is lagging and pressure on its higher than average fees is growing. The Magellan share price was fetching $15.27 at Friday’s close.

Xero Limited (ASX: XRO)

Analysts at Macquarie have retained their underperform rating and $130.00 price target on this cloud accounting company’s shares. This follows news that rival Intuit is acquiring email marketing company Mailchimp. Macquarie is concerned that Intuit could remove Mailchimp from Xero’s ecosystem. If it does, it suspects that some subscribers may switch to Intuit’s Quickbooks in order to retain access to the app. In addition, it believes the acquisition strengthens Intuit’s offering and could support its global expansion. The Xero share price ended the week at $153.34.

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

More reading

• This top broker has named the Fortescue (ASX:FMG) share price as a sell
• How has the Fortescue (ASX:FMG) share price performed since reporting results?
• The Magellan (ASX:MFG) share price hit a 52-week low this week. Do brokers think it’s a buy?
• These were the worst performing ASX 200 (ASX:XJO) shares last week
• These 3 ASX 200 shares are flying around the markets today

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

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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.

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

Adairs Ltd (ASX: ADH)

According to a note out of UBS, its analysts have retained their buy rating and lifted their price target on this retailer’s shares to $5.40. Although the broker acknowledges that near term trading will be difficult because of lockdowns, it remains very positive on the future. Particularly given the quality of the business and its loyal customer base. Based on UBS’ forecasts, the company’s shares are changing hands for a little over 11x estimated FY 2022 earnings. The Adairs share price finished the week at $3.91.

Ramsay Health Care Limited (ASX: RHC)

A note out of Macquarie reveals that its analysts have retained their outperform rating and $75.50 price target on this private hospital operator’s shares. Macquarie believes that Ramsay’s shares are undervalued at the current level. This is based on its positive medium term growth outlook and the strength of its property portfolio in Australia. The Ramsay share price was fetching $70.06 at Friday’s close.

Telstra Corporation Ltd (ASX: TLS)

Analysts at Morgan Stanley have retained their overweight rating and lifted their price target on this telco giant’s shares to $4.50. According to the note, the broker was pleased with Telstra’s T25 update last week. It notes that management is targeting solid earnings per share growth post-FY 2022. Telstra’s targets were largely in line with what the broker was expecting. Morgan Stanley sees this growth target as a big positive following several years of declines since the NBN rollout began. The Telstra share price ended the week at $3.92.

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

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• Acquisitions for Wesfarmers and Domain, Telstra plans to grow and Myer back in profit. Scott Phillips on Nine’s Late News
• Is the Telstra (ASX:TLS) share price in the buy zone after its T25 update?
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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. owns shares of and has recommended ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO and Telstra Corporation Limited. The Motley Fool Australia has recommended Ramsay Health Care 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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Afterpay Ltd (ASX: APT) is still a widely followed ASX growth share, despite its impending exit from the ASX boards. Afterpay announced in August that is to be acquired by the US payments giant Square Inc (NYSE: SQ). Because of this, it’s been clear that investors will soon be unable to directly invest in Afterpay shares. Even so, this acquisition is scheduled to take place in 2022. So there’s still some time left for this company on the ASX.

But with this in mind, it might be a good time to check out how the share structure and ownership of this company is faring.

After all, Afterpay is one of the most prominent founder-led companies on the ASX. It was famously started by Nick Molnar and Anthony Eisen back in 2014, and is still headed by these gentlemen today. In fact, upon its acquisition by Square, Eisen and Molnar will both join the newly merged Afterpay/Square. Here’s what Afterpay said about the new role its two founders will be playing in the merged company:

Afterpay’s Co-Founders and Co-CEOs will join Square upon completion of the transaction and help lead Afterpay’s respective merchant and consumer businesses, as part of Square’s Seller and Cash App ecosystems. Square will appoint one Afterpay director as a member of the Square Board following closing.

How many Afterpay shares do its founders still own?

So Mr Eisen and Mr Molnar both still own substantial chunks of the company they founded. According to an ASX release from 30 August, Molnar still owns approximately 19.46 million Afterpay shares through various ownership vehicles. As well as just over 165,000 stock options.

Eisen also still holds a substantial parcel of shares. They number approximately 19.41 million, also owned through various vehicles. He also holds a similar number of stock options to Mr Molnar.

Afterpay currently has roughly 291.17 million shares outstanding. As such, we can put the ownership of these two founders at approximately 6.68% for Mr Molnar and 6.66% for Mr Eisen. That’s 13.34% together.

Why is this important? Well, many ASX investors, especially growth investors, love to see a founder (or founders) at the helm of the company they created. There is something of an assumption that, because the founders created the company, they will tend to be more aligned with other shareholders. This is especially so if the founders, like Mr Molnar and Mr Eisen, retrain a large portion of the company’s overall ownership.

So if you’re one of those investors, don’t worry about Afterpay’s pending acquisition. Square is also a founder-lead company, with Jack Dorsey still steering the ship.

The post What percentage of Afterpay (ASX:APT) shares are owned by insiders? appeared first on The Motley Fool Australia.

More reading

• Why Afterpay, AnteoTech, Cettire, & Vulcan shares are storming higher
• ASX 200 tumbles but the Afterpay (ASX:APT) share price is green?
• How has the Afterpay (ASX:APT) share price performed since reporting results?
• The Afterpay (ASX:APT) share price is down 9% in September. What’s next?
• Why I’m holding my Afterpay (ASX:APT) shares: expert

Motley Fool contributor Sebastian Bowen owns shares of Square. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and Square. The Motley Fool Australia owns shares of and has recommended AFTERPAY T 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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The Fortescue Metals Group Limited (ASX: FMG) share price has been rated as a sell by a leading broker.

UBS has decided to call the iron ore giant a sell as its expectations regarding the iron ore price have weakened.

What has UBS said about the Fortescue share price?

According to reporting by the Australian Financial Review’s Tom Richardson, UBS believes that the iron ore price is going to drop below US$100 in the next few months and end up at a range of between US$70 per tonne to US$80 per tonne.

That expectation is based on a slowdown of property activity in China because actions taken by authorities as well as the possibility of Evergrande defaulting, which may impact confidence.

If you haven’t heard of Evergrande, it’s a very large Chinese developer that is currently in financial troubles.

Mr Richardson also reported that UBS has lowered its projection for the FY22 dividend from $3.06 per share to $2.12 per share. The FY22 underlying net profit is expected to be US$6.3 billion. Profit expectations can have a big impact on the Fortescue share price.

Australia’s new treaty

It may also be impossible for iron ore miners and China to ignore the new strategic treaty that was announced between Australia, the US and the UK.

This arrangement between the three countries is going to be called Aukus. Part of the agreement is that Australia will be getting nuclear submarines, though they won’t be armed with nuclear weapons.

The ABC quoted the US President Joe Biden, who said:

This is about investing in our greatest source of strength — our alliances — and updating them to better meet the threats of today and tomorrow.

However, Chinese officials did not think highly of this new deal. Chinese foreign ministry spokesman Zhao Lijian said of the agreement that it:

Seriously undermines regional peace and stability and intensifies the arms race. The export of highly sensitive nuclear submarine technology by the United States and Britain to Australia once again proves that they use nuclear exports as a tool of geopolitical games and adopt double standards, which is extremely irresponsible.

As the major purchaser of Australian iron ore, China can have a major influence on the iron ore price.

What now for the Fortescue share price?

UBS has put a price target on Fortescue. The 11.5% drop of Fortescue shares on Friday ensured that the large iron ore miner has rapidly reached close to that level already.

Time will tell what happens next for the iron ore price and Chinese demand.

However, for Fortescue shareholders who have held for more than a couple of weeks, the final FY21 dividend is expected to be paid on 30 September 2021.

That incoming dividend is a payment of $2.11 per share, which was more than twice the size of the FY20 final dividend of $1 per share.

The post This top broker has named the Fortescue (ASX:FMG) share price as a sell appeared first on The Motley Fool Australia.

More reading

• How has the Fortescue (ASX:FMG) share price performed since reporting results?
• These were the worst performing ASX 200 (ASX:XJO) shares last week
• These 3 ASX 200 shares are flying around the markets today
• Which ASX shares are looking to finish the week as the top movers on the ASX 300 today?
• Why Fortescue, IRESS, Newcrest, & Syrah shares are tumbling lower

Motley Fool contributor Tristan Harrison owns shares of Fortescue Metals Group 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The AMP Ltd (ASX: AMP) share price has edged lower at the end of trade on Friday, closing 1% lower at 99 cents.

This follows a recent announcement from the financial services company on its plans to establish an attractive option for its shareholder base.

What did AMP announce?

In a statement to the ASX, AMP advised it has launched a small shareholding sale facility for its shareholders.

The company said it recognised that many of its 700,000 shareholders held AMP shares valued at $500 or less.

The sale facility allows eligible AMP shareholders to offload their small holdings without incurring brokerage costs. However, this only applies to those holding between 1 and 442 AMP shares on the record date of 27 August. The AMP share price closed at $1.13 on that day (442 AMP shares x $1.13 = $499.46).

It’s worth noting that the sale price will be the average price of every share sold on the ASX under the sale facility. This means that all shareholders will receive the same price per share.

The sale facility will run from 20 September to 8 November 2021. The company said the estimated date for payment of sale proceeds was 10 December 2021.

AMP noted that the sale facility would reduce administration and registry costs associated with servicing small shareholdings.

It will issue sale statements via email or post on 13 December 2021.

Shareholders who do not wish to participate in the sale facility need not do anything.

AMP share price snapshot

AMP shares have fallen around 30% over the past 12 months, with the majority of losses coming in 2021. When looking over a 5-year time frame, the AMP share price is down a mammoth 80%.

AMP has a price-to-earnings (P/E) ratio of 29.76 and commands a market capitalisation of roughly $3.27 billion.

The post The shrinking AMP (ASX:AMP) share price now comes with one benefit appeared first on The Motley Fool Australia.

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• How have ASX financial shares performed during the August 2021 earnings season?

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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If you’re wanting to add some exchange traded funds (ETFs) to your portfolio, then you may want to check out the ones listed below.

Here’s why these two ETFs are popular with investors right now:

iShares Global Consumer Staples ETF (ASX: IXI)

The first ETF to look at is the iShares Global Consumer Staples ETF. This fund has been designed to measure the performance of the world’s leading consumer staples companies. These are companies that produce or sell essential products such as food, tobacco, and household items.

As demand for these types of products is relatively consistent whatever is happening in the economy, this ETF is likely to be suitable for investors that are looking for lower risk options.

Among its 111 holdings are the likes of Coca-Cola, Colgate-Palmolive, Diageo, L’Oreal, Mondelez, Nestle, PepsiCo, Procter & Gamble, Unilever, Walmart, and Woolworths Group Ltd (ASX: WOW).

Over the last 10 years, the iShares Global Consumer Staples ETF has generated an average total return of 13.4% per annum for investors. This would have turned a $10,000 investment into $35,000.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another ETF to look at is the VanEck Vectors Morningstar Wide Moat ETF. This fund gives investors exposure to a diversified portfolio of 51 good value, US companies with sustainable competitive advantages or moats.

Historically, companies with moats have generated strong returns for investors. This is why Warren Buffett is such a big fan of investing in companies that boast them. And given his track record, it is hard to argue against this.

Among the ETF’s holdings are the likes of Google’s parent Alphabet, Amazon, American Express, Boeing, Coca-Cola, Microsoft, Philip Morris, Pfizer, Salesforce, ServiceNow, and Yum! Brands.

Over the last 10 years, the index the fund tracks has outperformed the ASX 200 index by some distance. During this time, it has generated an average total return of 22.6% per annum. This would have turned a $10,000 investment into a massive ~$77,000.

The post 2 excellent ETFs generating strong returns for ASX investors appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares that may be worth looking at this weekend
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• Top ASX shares to buy in September 2021
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• Have money to invest? 2 ASX shares that could be buys

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 shares of and has recommended iShares Global Consumer Staples ETF. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat 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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Leading fund manager Wilson Asset Management (WAM) has revealed two ASX shares that it rates as buys within the WAM Research Limited (ASX: WAX) portfolio.

WAM operates several listed investment companies (LICs). Two of those LICs are WAM Capital Limited (ASX: WAM) and WAM Leaders Ltd (ASX: WLE).

One of the LICs is called WAM Research, which looks at smaller businesses on the ASX.

WAM describes WAM Research as a LIC that invests in the most compelling undervalued growth opportunities in the Australian market.

The WAM Research portfolio has delivered gross returns (that’s before fees, expenses and taxes) of 16.8% per annum since the strategy changed in July 2010, which is superior to the S&P/ASX All Ordinaries Accumulation Index return of 9.9% per annum.

These are the two ASX shares that WAM outlined in its most recent monthly update:

City Chic Collective Ltd (ASX: CCX)

City Chic is one of the ASX shares that WAM likes and owns. It’s a ASX retail share that sells clothes, accessories and footwear to women in its ANZ store network and a global online presence, as well as partnerships with northern hemisphere businesses.

The fund manager noted that the company delivered “strong sales” and customer acquisition growth in FY21. WAM pointed out that City Chic generated sales growth of 33%, a 61% increase of customers and a 68% rise in customer website traffic compared to FY20.

This strong result was attributed to City Chic’s expanded online product offering and entry into the UK market by buying Evans, which is the leader in the UK.

WAM believes that City Chic’s global operations helped mitigate the cost of the store closures in Australia due to COVID-19 lockdowns. Approximately 44% of sales were made outside of Australia and New Zealand.

The fund manager believes the company is positioned well to grow its market share and benefit from the supposed strength of both the Australia and global consumer.

According to Commsec, the City Chic share price is valued at 32x FY23’s estimated earnings.

Event Hospitality and Entertainment Ltd (ASX: EVT)

Event Hospitality is a business that owns and operates cinemas in Australia, New Zealand and Germany. It also operates over 70 hotels and leisure venues in Australia.

It was another ASX share that revealed its full year result during reporting season in August 2021.

In that result, Event Hospitality and Entertainment was able to achieve normalised earnings before interest, tax, depreciation and amortisation (EBITDA) of $27.2 million.

WAM pointed out that Event Hospitality and Entertainment’s hotels located across Australia saw “significant” quarter on quarter growth.

The ASX share’s leisure venue, the Thredbo Alpine Resort, saw record full year revenue with the 2020-2021 summer mountain biking and hiking season resulting in a record number of visitors as well as mountain biking revenue.

The fund manager is still positive on the business because of the “robust” property portfolio, potential further divestments of non-core assets as well as a recovery of cinema visitors after the lockdowns.

According to Commsec, the Event Hospitality and Entertainment share price is valued at 22x FY23’s estimated earnings.

The post These 2 ASX shares have been named as good opportunities appeared first on The Motley Fool Australia.

More reading

• Wilson Asset Management (WAM) thinks these 2 top ASX shares are a buy
• These three ASX retail shares delivered double (and triple!) digit returns in 2021
• Top brokers name 3 ASX shares to buy next week
• Experts reveal 3 high-conviction ASX shares
• Which ASX shares are leading the ASX 300 today?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 a lot of growth shares for investors to choose from on the Australian share market. In order to narrow things down, I have picked out three that are highly rated by analysts.

Here’s what you need to know about these ASX growth shares:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is this leading appliance manufacturer. It has been growing at a solid rate for a number of years and continued this trend in FY 2021. In fact, the company’s growth accelerated and led to it outperforming its guidance. Breville reported a 24.7% increase in revenue to $1,187.7 million and a 39.6% jump in earnings before interest and tax (EBIT) to $136.4 million.

Morgans is a fan of the company. In currently has an add rating and $34.00 price target on its shares. The broker believes the company is capable of double digit, multi-year organic revenue growth.

IDP Education Ltd (ASX: IEL)

Another ASX growth share to look at is IDP Education. It is a provider of international student placement services and English language testing services. For obvious reasons, it was hit hard by the pandemic. However, the company has been tipped to win market share once the crisis passes and trading conditions return to normal. It has also boosted its future growth with a key acquisition in the lucrative India market.

Last week UBS retained its buy rating and lifted its price target on the company’s shares to $36.40. The broker believes IDP Education is well-placed for a big earnings recovery once the pandemic passes.

ResMed Inc. (ASX: RMD)

Another ASX growth share to look at is ResMed. It is a medical device company with a focus on the sleep treatment market. ResMed has been growing at a solid rate for over a decade. This has been underpinned by its industry-leading products, wide distribution, and successful acquisitions. Pleasingly, thanks to its significant market opportunity and the growing prevalence of sleep disorders, it has been tipped to continue this positive form long into the future.

Credit Suisse believes the company is well-positioned to grow at above-industry rates over the long term. Earlier this month the broker retained its outperform rating and lifted its price target to $44.00.

The post 3 excellent ASX growth shares named as buys appeared first on The Motley Fool Australia.

More reading

• Why these experts think the IDP Education (ASX:IEL) share price is fully valued
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• Why IDP Education (ASX:IEL) shares are on watch Tuesday

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 shares of and has recommended Idp Education Pty Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. 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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There are some compelling exchange-traded funds (ETFs) that may be good investment opportunities to consider for the long-term.

ETFs allow investors to invest in a (large) number of businesses in a single investment. That’s likely to be good news for people looking for diversification.

It may be an idea to consider businesses listed outside of Australia for different geographic earnings exposures.

Here are two to think about:

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

As the name suggests, this ETF is all about giving investment exposure to the video gaming and e-sports sector.

There are a total of 26 names in the portfolio. To give a sense the types of businesses in its portfolio, at the end of August 2021, these were the biggest ten positions: Nvidia, Advanced Micro Devices, Sea, Tencent, Unity Software, Activision Blizzard, Nintendo, Electronic Arts, Netease and Bandai Namco.

To be initially included in the underlying index, companies must generate at least 50% of revenue from video gaming or e-sports.

Why could the gaming sector be a good one to think about? The ETF provider VanEck has provided some of the reasons to consider it.

The competitive video gaming audience is expected to reach 646 million people globally in 2023, driven in part by rising population of people online. E-sports revenue growth has increased on average by 28% annually since 2015. E-sports has created new potential revenue streams from game publisher fees, media rights, merchandise, ticket sales and advertising.

There are now apparently more than 2.7 billion active gamers worldwide. VanEck said e-sports and online video games are a long-term disruptive force in the traditional media, entertainment technology industries.

The wider video gaming sector continues to see growth too. Video gaming has achieved 12% average annual growth since 2015.

Past performance is no guarantee of future performance. However, the index that VanEck Vectors Video Gaming and eSports ETF tracks has returned an average of 29.6% per annum over the last three years.

iShares S&P 500 ETF (ASX: IVV)

One of the world’s greatest investors, Warren Buffett, has often indicated his liking of S&P 500 funds for investors because of its low fees and diversification.

Blackrock offers this ETF with an incredibly low annual fee of just 0.04% per annum for Aussies. For investors, that means the ETF provider is costing hardly anything each year. It is one of the cheapest investment options on the whole of the ASX.

What is the S&P 500? It represents 500 of the biggest, most profitable businesses that are listed in the United States. However, note that many of the underlying businesses generate their profit from all over the world. Think how many countries Microsoft offers its Office suite, Alphabet provides Google Search and Facebook has its social media presence in most countries too.

Some of the other biggest names in the portfolio includes Apple, Amazon, Tesla, Nvidia, Berkshire Hathaway, JPMorgan Chase, Visa, Home Depot, Procter & Gamble, Walt Disney, PayPal, Adobe, Mastercard, Netflix, Salesforce.com, Pfizer, Accenture, Costco, Nike, Walmart and so on. It’s full of strong names. 

Plenty of the holdings in the iShares S&P 500 ETF are the best in the US or even the whole world at what they do, with strong market shares and big economic moats.

Past performance is not a reliable indicator of future performance. However, over the last five years, the ETF has returned an average of 18.4% per annum.

The post 2 great ETFs to think about for the long-term appeared first on The Motley Fool Australia.

More reading

• 3 highly rated ETFs for ASX investors in September
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• 3 high quality ETFs for ASX investors in September

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports 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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