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The ASX is home to dozens of healthcare companies, many with market capitalisations in the billions.

CSL Limited (ASX: CSL) is the largest cap ASX healthcare share. Other major players include hearing implant maker Cochlear Limited (ASX: COH) and Fisher & Paykel Healthcare Corp Ltd (ASX: FPH), which is in the healthcare products business.

Fisher & Paykel has been at the forefront of the fight against COVID-19, supplying hospitals with equipment vital to treating patients. Sonic Healthcare Limited  (ASX: SHL) is another ASX healthcare share involved in the COVID fight, becoming Australia’s largest non-government COVID-19 vaccination provider.

As revealed during last month’s reporting season, the pandemic has had a mixed impact on ASX healthcare shares. 

How have ASX healthcare shares performed against the market?

Shares in Sonic Healthcare have performed strongly in 2021, up 26.7% year to date and more than 31% above its pre-COVID levels.

The CSL share price has gained 7.5% in 2021, below the All Ordinaries Index (ASX: XAO), which is up 12.5%. The CSL share price remains slightly below its pre-COVID high.

Also trading just below its pre-COVID high, the Cochlear share price has risen 25% for the year, thanks to the resumption of implant surgeries in many markets.

The Fisher & Paykel share price, on the other hand, has increased just 4% over the course of 2021 but remains more than 50% higher than its pre-COVID price. 

Who are the healthcare winners this earnings season? 

Sonic Healthcare was a clear winner this earning season, reporting revenue growth of 28%.

Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 81% to $2.6 billion, boosting profits by 149% to $1.3 billion. COVID-19 testing contributed significantly to revenue and earnings in FY21, with Sonic Healthcare performing approximately 30 million PCR tests in some 60 laboratories globally.

The company operates across 7 countries, providing pathology, diagnostic imaging, radiology and general practice medical services. This diversification is providing increased opportunities for expansion and risk mitigation. 

Sonic Healthcare said it reduced net debt by $1,082 million in FY21 thanks to strong operating cash flow and a favourable exchange rate impact. The company’s gearing ratio is currently 12.5%, its lowest level in 20 years, and it has some $1.5 billion in available liquidity. This leaves Sonic well-positioned for ongoing value accretive acquisitions and other growth opportunities. The company declared a final dividend of 55 cents, 65% franked. 

Cochlear achieved record sales revenue in FY21 driven by a combination of market share gains, market growth, and rescheduled surgeries from COVID shutdowns.

Sales revenue increased 10% to $1,493 million as cochlear implant units increased 15% to 36,456 units. Compared to pre-COVID FY19, units increased by 7% and sales revenue by 9%.

Underlying net profit was $236.7 million, up 54% from FY20. The company declared a final dividend of $1.40 per share (unfranked), bringing full-year dividends to $2.55 per share. This was a 59% increase on FY20 and represented a payout of 71% of underlying net profit. 

CSL reported a full-year net profit of $2.375 billion, up 10% on a constant currency basis.

Despite the uncertainties brought on by the COVID-19 pandemic, CSL maintained all critical operations and manufactured 50 million doses of the Astra Zeneca vaccine for the Australian Government.

Its influenza vaccines business, Seqirus, delivered an exceptionally strong performance with revenue up 30% on a constant currency basis. CSL’s earnings per share (EPS) were $5.22, up 10%. The company declared a final dividend of US$1.18 per share, franked at 10%. This brings its full-year dividends to US$2.22 per share, up 10%. 

And the losers? 

Fisher & Paykel’s financial year ended on 31 March, but the company did provide an FY22 trading update last month.

The update revealed revenue for the first four months of the financial year was 2% below the prior comparable period, which was a period of high demand due to surges in COVID.

Revenue for the first four months was $583 million, with 74% from the hospital product group and 26% from the homecare product group.

But the company warned it did not expect hospital revenue to continue at an elevated level for the remainder of the financial year given ongoing vaccination activity. 

What is the outlook for ASX healthcare shares?

CSL says demand for the company’s core plasma products remains robust, and the influenza vaccines business is expected to continue to perform well.

Some margin easing is occurring as the result of plasma costs which will continue into FY22. The company is anticipating a net profit after tax of $2,150 million to $2,250 million in FY22, slightly below FY21 results.

Cochlear has provided net profit guidance of $265 million – $285 million for FY22, a 12% – 20% increase on FY21. This factors in market growth, continuing recovery in surgery rates, and investment in market growth activities. 

Fisher & Paykel has declined to provide revenue or earnings guidance for FY22. The company cited uncertainties associated with vaccination rates, the efficacy of vaccines, and public responses to COVID-19 as factors inhibiting its ability to provide guidance.

Over the short term, hospital sales will continue to be impacted by COVID-19 related hospital admissions. Over the longer term, the impact has been an increased installed base of hardware and increased physician awareness of the company’s products and therapies. Fisher & Paykel believes this will result in increasing numbers of patients receiving the benefits of its offerings in the years to come. 

Despite the pandemic, Sonic Healthcare expects ongoing growth of its base business, with underlying growth drivers remaining unchanged. The company said the base business was becoming increasingly resilient to the impacts of pandemic waves, with fluctuations mitigated by geographical and business sector diversity.

It expects significant revenue from COVID testing to continue into the foreseeable future, with the Delta variant driving substantial recent increases in volumes.

Nonetheless, Sonic has declined to provide FY22 guidance due to COVID-related unpredictability. However, we can expect some possible acquisition activity, with Sonic confirming it is considering opportunities in Australia, the United States, and Europe. 

The post How have ASX healthcare shares performed during the August 2021 earnings season? appeared first on The Motley Fool Australia.

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Motley Fool contributor Katherine O’Brien owns shares of CSL Ltd. and Cochlear Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. and Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. and Sonic Healthcare 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 Woolworths Group Ltd (ASX: WOW) share price has been struggling this week amid a series of company announcements.

First off, the company released its 2021 sustainability report. Then, it sold its stake in Marley Spoon AG (ASX: MMM). Finally, reports emerged Woolworths will be issuing sustainable bonds.

While none of the news was outwardly awful, the Woolworths share price is currently 1.15% lower than where it started the week. Right now, shares in the supermarket retail giant are swapping hands for $39.64.

Let’s take a closer look at the week that’s been for Woolworths on the ASX.

The week that’s been for Woolworths

The Woolworths share price is battling through a tough week on the ASX.

While the market responded well to the company’s sustainability report, it wasn’t enough to buffer it against the coming drop. The report sent Woolworths shares 0.02% higher on Monday.

However, the price fell another 0.47% on Tuesday following news that Woolworths had sold its 9.8% stake in the recipe and meal box supplier Marley Spoon.

As The Motley Fool Australia reported on Tuesday, Woolworths sold its 28,026,000 Chess Depository Interests in Marley Spoon for $1.91 apiece, raising about $54 million in the process.

Finally, on Wednesday, reports emerged that Woolworths will be issuing about €500 million (about AU$801 million at the current exchange rate) worth of sustainable bonds to Europe.

As my Foolish colleague reported at the time, Woolworths’ new bonds will financially reward it for hitting its emissions targets. The Woolworths share price fell 1.3% on the day.

However, Woolworths managed to dodge Thursday’s carnage on the ASX. While the Woolworths share price slid 0.5% yesterday, it outperformed the S&P/ASX 200 Index (ASX: XJO), which fell by a significant 1.7%.

Woolworths share price snapshot

While it hasn’t been Woolworths’ best week on the ASX, the supermarket giant has been performing well in 2021. The company’s share price is currently 17% higher than it was at the start of the year.

It has also gained 27% since this time last year.

The post It hasn’t been a great week for the Woolworths (ASX:WOW) share price appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Marley Spoon AG. The Motley Fool Australia owns shares of and has recommended Marley Spoon AG. 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 Ramelius Resources Limited (ASX: RMS) are edging higher today following a resource statement from the gold miner.

At the time of writing, the Ramelius share price is up 1.91% trading at $1.44. It’s worth noting though, the company’s share price has slipped 7% over the past week and is down 12% in a month.

Ramelius reveals FY21 resource statement

Investors are sending the Ramelius share price slightly higher after the miner’s latest update to the ASX.

According to its release, Ramelius announced new estimates of mineral resources and ore reserves for the end of FY21.

The company advised that increases in mineral resources were achieved through exploration drilling and resource additions at its gold projects in Western Australia. This includes deposits at the Eridanus, Galaxy and Edna May gold mines.

As such, mineral resources are up 15% over the prior corresponding period. Ramelius highlighted the findings:

• Estimated total mineral resources: 110 metric tonnes at 1.6 grams per tonne of gold for 5.4 metric tonnes of gold
• Estimated total ore reserves: 17 metric tonnes at 2 grams per tonne of gold for 1.1 metric tonnes of gold

The miner reported that inferred resources dropped from 1,400 tonnes of gold to 1,200 tonnes of gold. This led the indicated category to jump to 3,800 tonnes of gold, up from 3,000 tonnes recorded in FY20.

The term ‘inferred resources’ refers to quantity, grade (quality) and mineral content that is estimated with a low level of confidence. An upgrade to ‘indicated category’ increases the level of geological knowledge and confidence of probable ore reserves.

All resources are based on combinations of reverse circulation (RC) and diamond drill holes.

About the Ramelius share price

Over the past 12 months, the Ramelius share price has lost almost 40% in value, with year-to-date down around 15%. The gold miner’s share price has been treading south ever since the beginning of June.

Ramelius presides a market capitalisation of roughly $1.1 billion, with more than 814 million shares on its books.

The post Ramelius (ASX:RMS) share price lifts on boosted resource statement appeared first on The Motley Fool Australia.

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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 Province Resources Ltd (ASX: PRL) share price is moving higher, up 3% to 16 cents per share.

Below we take a look at the latest announcement from the ASX hydrogen share.

What did Province announce?

Province Resources’ share price is gaining after the company reported it has secured the first of a series of required approvals for its HyEnergy green hydrogen project in Western Australia.

The section 91 licence covers an area of 99 square kilometres, known as the Town Common, situated north of Carnarvon.

The company plans to build its HyEnergy Project production site and some upstream generation assets in the licenced area. Once completed, the green hydrogen project could produce up to 8GW. Though Province said it may initially be developed with a smaller capacity.

Province Resources managing director David Frances said that the licence was just the first step in a series of required approvals before the project becomes operational. But the company is excited to commence activities in the Town Common.

Commenting on the license approval, Frances said:

This approval allows us to get on the ground to commence our environmental, heritage, geo technical and other survey work. It means we get can get a better understanding of the physical properties of the location to support our concept selection process. We are looking forward to being on site in the coming weeks to begin this important work.

The company is currently in discussions with the Western Australian government and the Shire of Carnarvon to secure a long-term lease of the Town Common.

It said its also in discussions with pastoralists, traditional owners and the state government to secure access to a “broader area of the Gascoyne Region” for the purpose of installing large-scale wind and solar generation assets.

Province Resources share price and company snapshot

The Province Resources share price has hands down been a stellar performer in 2021.

Year-to-date shares are up an eye-popping 1,450%. That’s more than 130 times the 11% gains posted by the All Ordinaries Index (ASX: XAO) this calendar year.

Over the past month the Province Resources share price is up 3%.

The post Up 1,450% in 2021, why Province Resources (ASX:PRL) share price is up again today appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The SelfWealth Ltd (ASX: SWF) share price is up 22% in September to a 1-month high of 38.5 cents but still down 30% year-to-date.

Shares in the investing and trading platform have been hammered by recent announcements including the company’s FY21 full-year results and $10 million capital raising.

Despite its recent underperformance, the founder of Datt Capital, Emanuel Datt, told the Australian Financial Review (AFR) that SelfWealth might have what it takes to become the next Afterpay Ltd (ASX: APT).

Could the SelfWealth share price become the next Afterpay?

Datt pointed to SelfWealth when asked about any hidden nuggets in the small-cap space with the potential to be the next Afterpay.

“We believe that SelfWealth possesses a lot of the ingredients that made Afterpay so successful, and could prove to be an enormous success looking out over a three-year time horizon,” Datt said.

“The company is currently focused solely on the online broking space but has large potential to expand towards offering a suite of financial services across its platform.”

“The opportunity is there for the taking and the new management team are executing very well so far.”

Datt Capital is also the largest shareholder in the SelfWealth share price.

What’s next for SelfWealth?

SelfWealth has laid out a detailed product roadmap that continues to focus on expanding its capabilities in terms of online broking.

In the near term, the company said that it’s working on the ability for members to fund their ASX accounts in real-time, a live pricing feature and continuously working to improve the user experience on its app.

Perhaps an exciting short-to-medium term catalyst for the SelfWealth share price is its plans to launch cryptocurrency trading.

The company said that “we will be partnering with an established and secure cryptocurrency exchange to provide access to cryptocurrencies”.

“This is off the back of research we’ve done, including answers from many of you. You want to access crypto, but you want it done in a safe and secure manner. You will be able to trade cryptocurrencies that have been vetted by us first. We will factor in popularity, liquidity and security.”

The post The Selfwealth (ASX:SWF) share price could be the next Afterpay: fundie appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun 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 AFTERPAY T FPO. 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 Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has struggled this past month.

Despite a strong start to the year, shares in the banking giant have tumbled 4.3% in the past 30 days.

Let’s take a look at what’s been dragging the ANZ share price lower.

What’s weighing ANZ down?

In the past 30 days, ANZ has not released any pertinent news that could explain the decline in its share price.

Instead, it could be feeling the repercussions of weaker sentiment for the overall sector.

Some market experts have flagged that big banks like ANZ could feel the impact of lockdowns in the medium term. According to the commentary, a moderating volume of new loans and housing price growth could slow near-term growth prospects for banks.

Outlook for ANZ shares

Despite the gloomy outlook on the overall banking sector, some experts are bullish on the outlook for ANZ.

A recent note from leading broker Morgans has painted a positive forecast for the Big Four bank. Analysts upgraded their rating on ANZ’s shares, issuing a price target of $34.50.

In addition, the broker noted that ANZ could benefit from treasury and markets income if the bank continued to focus on absolute cost reductions.

Also, shares in the bank could be poised to benefit if ANZ improved the quality of its loan book.

Analysts also cited the bank’s recent forecast dividends of $1.45 per share in FY21 and $1.65 per share in FY22.

Snapshot of the ANZ share price

Despite a weaker month, the ANZ share price has surged more than 21% since the start of the year. By comparison, the S&P/ASX 200 Index (ASX: XJO) has only managed to claw 12% higher for 2021.

Several catalysts have helped propel the ANZ share price higher this year. In particular, the banking giant reported a strong first-half report for FY21 earlier this year.

The report highlighted a 45% increase in statutory profit after tax of $2.94 billion. Continuing operations cash profit also increased 28% to $2.99 billion.

ANZ also announced its intention to buy back up to $1.5 billion of shares on-market as part of its capital management plan.

At the time of writing, shares in ANZ have started today’s session stronger. They are trading at $27.64, which is up 0.47%.

The post The ANZ (ASX:ANZ) share price is down 4% in a month. Here’s why. appeared first on The Motley Fool Australia.

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Motley Fool contributor Nikhil Gangaram 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 Elixir Energy Ltd (ASX: EXR) share price has faced headwinds over the last few months, despite several advancements in the company’s operations.

Whereas the S&P/ASX 200 index (ASX: XJO) has climbed 1.4% into the green over the last three months, Elixir shares are 20% in the red. At the time of writing, they are down 4.17% today to 23 cents.

Here’s why.

Quick rundown on Elixir Energy

Elixir Energy is in the oil and gas exploration business and has a number of government and other energy stakeholder relationships, according to the company.

Currently, it is “solely focused” on an exploration program in Mongolia targeting natural gas in the form of “coal-bed methane (CBM)”.

What’s up with the Elixir Energy share price lately?

The Elixir Energy share price has been on the way down despite a series of updates from its Nomgon IX CBM Production Sharing Contract (PSC).

It was in June when the company first established the presence of coal through one of its drill holes. At the time, it stated drilling had intersected 48 metres of coal.

The find wasn’t without setbacks, with the company encountering a number of mechanical issues and unlikeable drilling conditions.

Then in July the company’s extended drilling operations in the Kingston sub-basin of Nomgon discovered a further 12 metres and 8 metres of coal from two drill holes, respectively.

Elixir also released its quarterly earnings report in late July where it gave several potential investment highlights.

These included a successful capital raise that strengthened the cash position on its balance sheet to $33 million.

As a result of the finds in Kingston, the area of discovery in the sub-basin was extended to 50km2 on 25 August.

It also advised that several other drilling programs are underway in addition to identifying a new drilling target. The company has named the prospect “Lattice”.

Despite these advancements, investors continue to sell off Elixir shares.

In fact, the downward pressure on Elixir shares is a continuation of a longer-term downward trend over the last 6 months. This comes after a high of 45 cents for the Elixir Energy share price in April.

Not all doom and gloom for the Elixir Energy share price

Taking a long-term view, we see the Elixir Energy share price has gained 84% this year to date and 70% over the last 12 months.

This far outpaces the broad index’s return of around 25% over the past year.

The post Why the Elixir Energy (ASX:EXR) share price is down 20% in 3 months appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions 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 Zip Co Ltd (ASX: Z1P) share price is back in focus on Friday morning. Recent insights shared by a leading broker have cast doubts on the rebranding of Quadpay in the United States.

Shares in the buy now, pay later (BNPL) company slipped 2.48% yesterday. At the end of the session, the Zip share price stood at $6.69. However, shares are bouncing back in early trade today, swapping hands for $6.89 at the time of writing.

It has been a testing month for Zip investors, with the value of their holdings falling 14% over the past 30 days.

Here’s a look at what analysts think of the latest change in tack for Zip’s US operations.

Coincidence or consequence?

In July, Zip released a quarterly update noting its plans to rebrand its Quadpay business as Zip in August. The company initially acquired Quadpay in September 2020. Since then, the Quadpay business has been a growth engine for the BNPL competitor.

To illustrate the importance of its US operations, in the last financial year, the company’s Australia and New Zealand operations grew by 40% in terms of revenue. Meanwhile, Zip’s US segment experienced a 269% increase in pro-forma revenue year-over-year.

Understandably, shareholders and analysts would be keeping a close eye on how Zip’s US operations are tracking. This brings us to an analysis conducted by Citi, putting the Zip share price in focus on Friday.

According to Citi, since Quadpay has been rebranded to Zip web traffic and app downloads have slumped. While app downloads have been impacted to a lesser extent, traffic to the website has declined rapidly. Taking a look for ourselves, Similarweb shows web traffic for Quadpay dropping from 3.75 million in July to 2.04 million in August.

Although, the analysts considered that perhaps transaction volume is not significantly impacted if app usage remains elevated.

In its note to clients, Citi analysts wrote:

App downloads seem to be less impacted, however total app downloads declined for the 5th consecutive month which points to downside risks to our customer growth forecasts.

In our view, increasing app usage has been a key driver of Zip’s TTV growth in the US in recent quarters – app usage has remained stable in recent months which suggests that overall transaction volumes may not be impacted.

Potential risk to Zip share price

The analysts concluded that the decline in traffic following its rebrand presents a risk. Specifically, the broker highlighted downside risk to its forecasts for its first-half result in FY2022.

Unfortunately, the mounting concern comes at an already tumultuous time for the Zip share price as competition heats up. Yesterday, we covered Paypal Holdings Inc (NASDAQ: PYPL) entrance into Japan’s BNPL market. The payments company acquired Paidy for US$2.7 billion to get its foot in the door of another geography.

On top of this, US-based Affirm Holdings Inc (NASDAQ: AFRM) has been making moves, being the first BNPL provider to partner with Amazon.com Inc (NASDAQ: AMZN).

The post Zip (ASX:Z1P) share price bounces as US rebrand puts a dent in traffic appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Affirm Holdings, Inc., Amazon, PayPal Holdings, and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon, long January 2022 $75 calls on PayPal Holdings, and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia has recommended Amazon and PayPal Holdings. 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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National Australia Bank Ltd.‘s (ASX: NAB) shareholders could be in for a shock this morning as the bank prepares for a temporary rename. The NAB share price will be in focus as some of the institution is branded ‘JAB’ in a bid to encourage more Australians to get vaccinated against COVID-19.

The NAB share price finished yesterday’s session trading for $28.40 after falling 1.56% on Thursday.

Let’s dive deeper into NAB’s new look.

NAB shares in focus amid rebrand to JAB

The NAB share price is on watch amidst news the bank is rebranding to encourage more Australians to get jabbed.

The bank’s 3 letter logo will become JAB on TV ads, billboards, online, and at the AFL finals series.  

Amidst NAB’s (JAB’s?) media campaign, the bank’s CEO, Ross McEwan, has called for more details on how restrictions will ease once 80% of Australians over 16 are jabbed.

Yesterday, he told the House of Representatives the government must create a ‘vaccine pass’. He envisions Australia’s pass will be like those of some European countries, where residents need proof of vaccination to access restaurants, sporting events, and concerts.

McEwan has also called for an international “vaccine passport” to be ready as soon as Australia’s borders open. As The Motley Fool Australia reported yesterday, the federal government is reportedly already working on a vaccine passport.

Fortunately for the NAB share price, the bank’s boss noted the current lockdowns have been less financially damaging. He said:

As at 31 August, just over a $1.8 billion in lending was on deferral. This compares to $58 billion at the height of the pandemic last year.

However, the impacts on small businesses are continuing. Additionally, McEwan pointed to the impact lockdowns are having on Australians’ mental health.

On a lighter note, current projections forecast 80% of Australians will have had one jab by the end of the month. And, excitingly, 80% of Australians are predicted to be fully vaccinated by mid-November.

The post Own NAB (ASX:NAB) shares? Now you own JAB shares appeared first on The Motley Fool Australia.

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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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Many investors are looking at how to diversify their portfolios as cheaply as possible, such as owning Australian Foundation Investment Co. Ltd (ASX: AFI) ‘AFIC’ shares.

Unlike an exchange-traded fund (ETF), owning shares in AFIC means owning a portion of the company, not just a stake in a particular investment portfolio. An example of a popular ETF is the Betashares Nasdaq 100 ETF (ASX: NDQ).

At close of trade yesterday, the AFIC share price was $8.56 – even on the previous close. It is up 0.12% to $8.57 in early trade today. For context, the S&P/ASX 200 Index (ASX: XJO) was pummelled yesterday, finishing the day 1.90% lower. However, at the time of writing, it is up 0.8% today to 7,428.2 points.

If you’re looking to invest in AFIC, you might be curious as to what its philosophy is, how it invests, and most importantly – what it’s invested in.

Let’s take a closer look.

Company philosophy

According to the company’s website, AFIC invests in between 60-80 companies across a range of industries. It says these companies are selected because of their “ability to perform through economic cycles and generate returns over the long term”.

The company’s total portfolio is worth about $9 billion. This is slightly under its market capitalisation of $10.5 billion. It pays an annual dividend of 24 cents per share, fully franked, and claims to have a management expense ratio of 0.14%. AFIC describes itself as “very low cost”.

What shares do you own when you own AFIC shares?

AFIC lists the top 25 investments it holds in its portfolio – which combined makes up more than three-quarters of its entire investment mix. These are the shares you own if you own AFIC shares.

Name	Sector	Portfolio value ($ million)	Portfolio percentage (%)
Commonwealth Bank of Australia (CBA)	Banks	790.9	8.4
CSL (CSL)	Healthcare	681.7	7.3
BHP Group (BHP)	Resources	611.8	6.5
Wesfarmers (WES)	Retail	442.0	4.7
Westpac Banking Corporation (WBC)	Banks	401.4	4.3
Macquarie Group (MQG)	Diversified Financials	367.9	3.9
Transurban Group (TCL)	Transportation	349.7	3.7
National Australia Bank (NAB)	Banks	309.3	3.3
Mainfreight (NZX:MFT)	Transportation	295.8	3.1
Woolworths Group (WOW)	Consumer Staples and Discretionary	267.9	2.9
James Hardie Industries (JHX)	Materials	253.4	2.7
Australia and New Zealand Banking Group (ANZ)	Banks	236.4	2.5
Rio Tinto (RIO)	Resources	208.7	2.2
Telstra Corporation (TLS)	Communications	208.5	2.2
Sydney Airport (SYD)	Transportation	204.1	2.2
Amcor (AMC)	Materials	202.9	2.2
ARB Corporation (ARB)	Consumer Staples and Discretionary	181.5	1.9
ResMed (RMD)	Healthcare	170.8	1.8
Sonic Healthcare (SHL)	Healthcare	160.8	1.7
Goodman Group (GMG)	Real Estate	154.6	1.6
Carsales.com (CAR)	Communications	151.9	1.6
Reece (REH)	Materials	150.4	1.6
Coles Group (COL)	Consumer Staples and Discretionary	147.5	1.6
Ramsay Health Care (RHC)	Healthcare	131.9	1.4
Xero (XRO)	Technology	126.5	1.3

AFIC shares history

Over the past 12 months, the AFIC share price has increased by 36% – overperforming the ASX 200 by about 11 percentage points.

Year-to-date, AFIC shares have appreciated by 16%. Again, they have outgrown the ASX 200 in 2021 – this time by about 5 percentage points.

The post Own AFIC (ASX:AFI) shares? Here’s what you’re invested in appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Sidarous owns shares of Amcor Limited, BETANASDAQ ETF UNITS, and Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended BETANASDAQ ETF UNITS, CSL Ltd., and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia owns shares of and has recommended Amcor Limited, BETANASDAQ ETF UNITS, COLESGROUP DEF SET, Macquarie Group Limited, Telstra Corporation Limited, Wesfarmers Limited, and Xero. The Motley Fool Australia has recommended ARB Corporation Limited, Ramsay Health Care Limited, ResMed Inc., Sonic Healthcare Limited, and carsales.com 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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