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The S&P/ASX 20 Index (ASX: XTL) is certainly not talked about nearly as much as its larger cousin, the S&P/ASX 200 Index (ASX: XJO). But with the ASX 20 tracking the 20 largest companies on the ASX, it’s by no means irrelevant.

To prove it, let’s look at 3 ASX 20 shares that are up 60% or more over the past 12 months.

3 ASX 20 shares up 60% or more in the past year

Aristocrat Leisure Limited (ASX: ALL)

Gaming company Aristocrat is our first ASX 20 share that has seen gains of 60% or more over the past 12 months. In Aristocrat’s case, this was $24.48 a share 12 months ago but today the gaming company is trading at $41.92 a share.

That represents a 12-month gain of 72%. Like many hospitality-exposed shares, Aristocrat was hit hard last year by coronavirus lockdowns.

But it has also benefited materially as pubs, casinos and other gaming venues have reopened around the world. Its mid-May earnings update saw investors really step on the gas.

Aristocrat reported a 12% rise in net profits after tax, accompanied by a 6% bump in earnings before interest, taxes, depreciation, and amortisation (EBITDA).

Afterpay Ltd (ASX: APT)

Yes, Afterpay is an ASX 20 company now, a situation many might have thought impossible a few years ago. And this company did nothing to hurt its prestigious position during the past 12 months. A year ago, Afterpay was still a $71 stock.

But today, the buy now, pay later (BNPL) heavyweight is trading at $118.25 a share. That’s a gain of almost 65%. Robust growth, continuing bullishness from brokers, and a rediscovered affinity for ASX tech shares seem to be contributing factors.

It’s worth noting that Afterpay was hit especially hard in the COVID-induced crash last year, falling as low as $8 a share. As such, its recovery from those lows has proven exceptionally lucrative since.

Fortescue Metals Group Limited (ASX: FMG)

Fortescue has been another top ASX 20 performer over the past 12 months. One year ago, this iron ore miner was trading at just over $15 a share. Today, it is a $24.50 stock.

That represents a gain of 59.5% (close enough to 60%). Returns would have been well over 60% if you include the very robust 10.1% trailing dividend yield of Fortescue shares right now.

So what’s gone so right for Fortescue? Iron ore prices, that’s what.

A year ago, the iron ore price was trading around US$120 a tonne. Today, it’s at the historically high level of US$214 a tonne.

These high prices have made Fortescue a cash flow machine. The company has been paying out record dividends as a result  and have helped make this company a very profitable ASX 20 investment over the past year.

The post These 3 ASX 20 shares are up more than 60% in a year appeared first on The Motley Fool Australia.

More reading

• What’s with the Nuix (ASX:NXL) share price today?
• Why the Fortescue Metals (ASX:FMG) share price is flying high on Monday
• Top broker tells investors to stand ready to take profit on ASX bank shares
• Why the Nine Entertainment (ASX:NEC) share price is climbing on Monday
• Chalice Mining (ASX:CHN) share price flops on demerger of gold assets

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. 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 Nuix Ltd (ASX: NXL) share price is having yet another poor day’s trade on the ASX, despite a quiet day on the news front for the beleaguered company.

Right now, the Nuix share price has bounced back from a tumultuous morning to trade at $2.60 – 0.76% lower than its previous close.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is up 0.73%. The S&P/ASX All Technology Index (ASX: XTX) is also up 0.36%.

Let’s take a look at what’s been going on with the ASX’s notorious software company lately.

The month that’s been for Nuix

The Nuix share price seems to be flattening out after its huge day on Thursday which saw it grow a massive 8.6%.

Prior to that, Nuix was hit by a cacophony of bad news over the course of a single month.

The most recent mud to splatter on Nuix’s reputation flew on 30 June when its former chief financial officer (CFO) Stephen Doyle faced allegations of insider trading.

The allegations came from the Australian Securities and Investments Commission (ASIC). ASIC is investigating Doyle, his brother, and his father over similar offences.

The Nuix share price fell a massive 12.9% on the first day of trading after the news broke.

Prior to that, Nuix’s Sydney offices were raided by law enforcement officers. The Australian Federal Police reportedly issued the warrant as they assisted ASIC in its criminal investigation into Nuix’s prospectus.   

Only days before the warrant was issued, Nuix (and ASIC) was named and shamed in Parliament by ALP Senator for New South Wales Deborah O’Neill.

The two events respectively shocked 1.9% and 2.5% from Nuix’s share price.

Finally, let’s not forget it’s been less than a month since Nuix’s CFO and CEO both bid farewell to the company. The Nuix share price fell 5.98% that day.

All this drama and some still say the stock market is boring…

Nuix share price snapshot

After all that, the Nuix share price has fallen a total 1.89% over the last 30 days.

It has also dropped 67% since its Initial Public Offering (IPO) in December 2020.

The company has a market capitalisation of around $825 million, with approximately 317 million shares outstanding.

The post What’s with the Nuix (ASX:NXL) share price today? appeared first on The Motley Fool Australia.

More reading

• Top broker tells investors to stand ready to take profit on ASX bank shares
• Why the Nine Entertainment (ASX:NEC) share price is climbing on Monday
• Chalice Mining (ASX:CHN) share price flops on demerger of gold assets
• Why the Commonwealth Bank (ASX:CBA) share price is beating the ASX 200
• ASX 200 Weekly Wrap: COVID wobbles ASX as shares retreat

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 recommended Nuix Pty Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) is having a very nice start to the trading week. At the time of writing, the ASX 200 is up a healthy 0.74% to 7,327 points. But one ASX 200 share that’s doing even better than the ASX 200 today is Fortescue Metals Group Limited (ASX: FMG). The Fortescue share price is currently up a substantial 2.47% to $24.46 in early afternoon trade.

After a rip-roaring year in 2020 which made Fortescue shares one of the best ASX blue chips to own, 2021 has certainly been more subdued for this iron ore miner. With today’s hefty gains, the Fortescue share price is up just 4.4% year to date. Though it’s seen a very nice 64.71% increase over the past 12 months.

But what’s behind the positive move in Fortescue shares today?

Fortescue having a good day

As an iron ore miner, we can point to robust commodity prices this week as a primary catalyst for the Fortescue share price outperformance today. Commodity prices continue to defy gravity, it seems.

This morning gold is back above US$1,800 an ounce, crude oil (Brent) is above US$75 a barrel, and copper is still trading at record highs, above US$9,430 a tonne. And, perhaps most importantly for Fortescue, iron ore remains at historically high levels at more than US$215 a tonne today.

Another factor that is probably benefitting the Fortescue share price is the Aussie dollar. The Aussie has been slipping in recent weeks, and is currently under 75 US cents at 74.82 at the time of writing. A month ago, it was at 77.5 US cents. A lower Aussie dollar benefits any exporting company, as it makes its exports cheaper for foreign buyers in US dollar terms. As a major iron ore miner, this benefits the Fortescue share price in particular.

We also see other ASX miners like BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) reacting in a similar way today.

So at these elevated levels, are Fortescue shares worth considering?

Are Fortescue shares a buy today?

One broker who thinks Fortescue might have run its race, at least for now, is investment bank Goldman Sachs. Goldman currently rates Fortescue shares as a ‘sell’. It has a 12-month share price target of $18.20 for the miner. That implies a potential downside of more than 25% on current pricing. Goldman reckons the Fortescue share price is currently at risk from a fall in iron ore pricing. The broker noted that, based on an iron ore price of US$80-90 per tonne, Fortescue would be at a 9x earnings multiple based on FY2023 earnings expectations. That compares with a ~5x ratio for both BHP and Rio.

At Fortescue’s current share price, the company has a market capitalisation of $75.3 billion, a price-to-earnings (P/E) ratio of 8.68 and a trailing dividend yield of 10.1%.

The post Why the Fortescue Metals (ASX:FMG) share price is flying high on Monday appeared first on The Motley Fool Australia.

More reading

• ASX 200 Weekly Wrap: COVID wobbles ASX as shares retreat
• Why the Fortescue (ASX:FMG) share price is getting left behind in 2021
• What are leading brokers saying about the Fortescue (ASX:FMG) share price in July 2021?
• Mining shares in the ASX 200 might unearth US$26b worth of dividends
• The Fortescue Metals (ASX:FMG) share price just surged 3% this morning

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 Johns Lyng Group Ltd (ASX: JLG) share price is pushing higher during early afternoon trade. This comes after the building services group announced an update on the acquisition of Unitech Building Services (Unitech).

Established in 1995, South Australian-based Unitech is an insurance building services company focused on building maintenance, repairs and renovations. Notably, the business has become a preferred supplier for a number of Australia’s largest insurance companies. Unitech operates its workshops in both the inner southern suburbs and the northern suburbs of Adelaide.

At the time of writing, Johns Lyng shares are up 1.65% to $4.92.

Acquisition complete

Investors are buying Johns Lyng shares after the company provided its latest update to the ASX. 

According to its release, Johns Lyng advised that it has completed the acquisition of a 60% controlling interest in Unitech.

The deal saw Johns Lyng pay $1.9 million in cash for the business, funded from its existing cash reserves. An earnout component is also payable should Unitech meet specific financial hurdles over the FY21 and FY22 periods.

Johns Lyng highlighted that the transaction is debt and surplus cash free, with earnings accretive expected immediately.

The remaining 40% stake in Unitech, held by original owners and co-directors, will continue to run the day-to-day operations.

Following the takeover, Johns Lyng increased exposure to the South Australian market will present strong growth opportunities moving forward.

Johns Lyng chief executive, Scott Didier commented:

We’re really pleased to bring Unitech into the Johns Lyng fold. It’s a well-run business with a reputation built on repeat, high quality, customer-centric service provision to both the domestic and commercial building markets.

This deal creates multiple opportunities for Johns Lyng to expand parts of our core offering in South Australia by leveraging Unitech’s position and also our own existing relationships. These include growing both our Makesafe business and our Large-loss insurance building offering in the local market, and introducing our restoration services business, Restorx, into SA.

We also now have an opportunity to build our capacity for catastrophe (CAT) response in SA.

About the Johns Lyng share price

Over the past 12 months, Johns Lyng shares have catapulted by more than 100%, with over 50% in 2021 alone. The company’s share price reached an all-time high of $5.13 in June this year before some profit-taking swooped in.

On valuation grounds, Johns Lyng commands a market capitalisation of roughly $1.1 billion, with around 224 million shares on its registry.

The post Johns Lyng (ASX:JLG) share price edges higher on acquisition update appeared first on The Motley Fool Australia.

More reading

• Why the Fortescue Metals (ASX:FMG) share price is flying high on Monday
• Why Australian Pharma Industries, Audinate, NRW, & Vulcan are racing higher
• Why the Pilbara Minerals (ASX:PLS) share price is gaining 3.5% today
• Strike Energy (ASX:STX) share price see-sawing today
• These are the 10 most shorted shares on the ASX

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 S&P/ASX 200 Index (ASX: XJO) is back on form on Monday and charging higher. In afternoon trade, the benchmark index is up 0.65% to 7,321 points.

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

Australian Pharmaceutical Industries Ltd (ASX: API)

The Australian Pharmaceutical Industries share price is rocketing 20% higher to $1.37. This follows news that Wesfarmers Ltd (ASX: WES) has made a takeover offer for the pharmacy chain operator and wholesale distributor. Wesfarmers has offered to acquire the Priceline Pharmacy owner for $1.38 cash per share. This represents a 21% premium to its last close price. Major shareholder Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) has agreed to vote in favour of the proposal.

Audinate Group Ltd (ASX: AD8)

The Audinate share price has jumped 8% to $9.96. Investors have been buying the audio over IP networking solution provider’s shares after brokers responded positively to its recent trading update. One of those brokers is UBS, which has retained its buy rating and lifted its price target to $11.30. UBS was impressed with the update and notes that Audinate’s outlook is strong.

NRW Holdings Limited (ASX: NWH)

The NRW share price is charging 8% higher to $1.67. This morning NRW revealed that Boggabri Coal Operations has exercised an option to acquire the majority of the major mining equipment of Golding Contractors that is engaged under the Maintenance Services and Hire Agreement at the Boggabri Coal Mine. The equipment will be sold for circa $81 million, of which ~$64 million will pay down asset financing debt.

Vulcan Energy Resources Ltd (ASX: VUL)

The Vulcan Energy share price is up over 4% to $8.69. Investors have been buying the lithium explorer’s shares after it was granted a new exploration license. This license is for geothermal energy, geothermal heat, brine, and lithium exploration in the Upper Rhine Valley of Germany for three years. The company notes that the license covers a 108km squared area considered to be prospective for geothermal and lithium brine.

The post Why Australian Pharma Industries, Audinate, NRW, & Vulcan are racing higher appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Wesfarmers makes API takeover bid, BHP & Rio Tinto rising
• Audinate share price (ASX:AD8) rockets to new all-time high
• Australian Pharmaceutical (ASX:API) share price soars 18% on Wesfarmers bid
• Wesfarmers (ASX:WES) share price rises on API takeover offer
• Why the Vulcan Energy (ASX:VUL) share price is surging higher 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 AUDINATEGL FPO. The Motley Fool Australia owns shares of and has recommended AUDINATEGL 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 Pilbara Minerals Ltd (ASX: PLS) share price has started the week strongly.

In afternoon trade, the lithium producer’s shares are up 3.5% to $1.55.

This leaves the Pilbara Minerals share price trading within touching distance of its record high of $1.60.

Why is the Pilbara Minerals share price charging higher?

Today’s rise in the Pilbara Minerals share price comes despite there being no news out of the company today.

However, it is worth noting that rival Orocobre Limited (ASX: ORE) released a positive update on Friday afternoon, which may have gone down well with investors.

That update revealed that sales of Orocobre’s Olaroz lithium carbonate during the June quarter were 2,549 tonnes at US$8,476/tonne free on board. The latter was an increase of 45% on the price it was commanding in the March quarter. It is also a 170% increase on the price it was receiving nine months ago.

This is likely to mean that Pibara Minerals is also commanding strong prices for its lithium as well right now.

Can its shares keep climbing?

One leading broker that still sees some value in Pilbara Minerals shares is Macquarie Group Ltd (ASX: MQG).

According to a recent note out of the investment bank, the broker has an outperform rating and $1.80 price target on its shares.

Based on the current Pilbara Minerals share price, this implies potential upside of 16% over the next 12 months.

Macquarie was pleased with the company’s recent quarterly update, which revealed stronger than expected production during the fourth quarter. In addition to this, it found recent drilling activities as promising and suspects that mineral resource estimates could be upgraded in the coming months.

Following today’s gain, Pilbara Minerals’ shares are now up an impressive 78% since the start of the year.

The post Why the Pilbara Minerals (ASX:PLS) share price is gaining 3.5% today appeared first on The Motley Fool Australia.

More reading

• These 5 ASX lithium shares energised investor portfolios in FY21
• Here are 3 of the ASX 200’s most heavily traded shares today
• Here are 3 ASX 200 shares making moves on the share market today
• ASX lithium shares could get boost from Macquarie (ASX:MQG) upgrade
• 5 best ASX 200 mining and resource shares of financial year 2021

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 Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Strike Energy Ltd (ASX: STX) share price is edging lower today in afternoon trade. This comes after the company’s shares were up in the green earlier today. At the time of writing, Strike Energy shares are down 1.54% at 32 cents a share.

That is in contrast with the S&P/ASX 200 Index (ASX: XJO). The ASX 200 is currently up 0.87% today to 7,337 points so far.

So what’s going on with Strike Energy today?

Well, earlier today, Strike Energy released an announcement before market open.

In this announcement, Strike advised that it has “completed production testing” at its West Erregulla 4 (WE4) well. The results from this testing “demonstrate similar productivity characteristics consistent with the regional Permian gas fairway wells from Waitsia and Beharra and supports the progression of the Phase 1 development“.

Strike also told investors that “gas sample analysis indicates WE4 has a similar gas composition to the WE2 well“. Going forward, the WE4 well will now be shut in order for Strike to “observe a long-term pressure buildup”, before it moves on to the next stage of development.

This announcement comes after a well-received update last week, which provided an update on Perth Basin gas projects. This includes a management target of developing Strike’s multi-well Perth Basin. Strike is now eyeing ~1,800 petajoules of prospective conventional gas resources for these projects over the second half of 2021.

About the Strike Energy share price

Despite the current share price, Strike Energy has been a very solid performer for investors over the past few years. The company is now up 14.5% year to date in 2021 so far, and up 66% over the past 12 months. It’s also up a very pleasing 201% over the past 5 years.

On the current Strike Energy share price of 34 cents a share, the company has a market capitalisation of $659.1 million.

The post Strike Energy (ASX:STX) share price see-sawing today appeared first on The Motley Fool Australia.

More reading

• Strike Energy (ASX:STX) share price charges higher on “transformational” outlook
• Here’s why the Strike Energy (ASX:STX) share price is surging today
• What’s happening with the Strike Energy (ASX:STX) share price?

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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At the start of each week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Kogan.com Ltd (ASX: KGN) is back as the most shorted ASX share after its short interest rebounded week on week to 11.5%. This ecommerce company has been struggling with inventory issues. Short sellers don’t appear to believe they are going away despite recent lockdowns potentially boosting sales.
• Webjet Limited (ASX: WEB) has seen its short interest ease to 10.6%. Lockdowns and border restrictions continue to weigh heavily on this online travel agent’s shares.
• Inghams Group Ltd (ASX: ING) has 8.8% of its shares held short, which is flat week on week once again. Concerns over an upcoming major contract renewal with a supermarket giant continue to weigh on sentiment.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest slide to 8.7%. This appears to have been driven by fears that the travel market recovery could take longer than expected because of the Delta strain of COVID-19.
• Electro Optic Systems Hldg Ltd (ASX: EOS) has 8.1% of its shares held short, which is flat week on week. Short sellers may be targeting Electro Optic Systems due to supply chain and cash flow concerns.
• Zip Co Ltd (ASX: Z1P) has short interest of 8%, which is flat week on week. Valuation and competition concerns could be why short sellers have taken short positions in this buy now pay later provider.
• Temple & Webster Group Ltd (ASX: TPW) has seen its short interest rise to 7.8%. This ecommerce company has been targeted by short sellers since it announced plans to sacrifice margins in the hope of growing its market share.
• Tassal Group Limited (ASX: TGR) has short interest of 7.8%, which is up slightly week on week. Although salmon prices have been tipped to rebound, some short sellers aren’t in a rush to close positions.
• Resolute Mining Limited (ASX: RSG) has seen its short interest fall to 7.7%. This gold miner’s shares have come under significant pressure over the last 12 months due to operational issues and production downgrades.
• A2 Milk Company Ltd (ASX: A2M) is back in the top ten with short interest of 6.8%. Concerns over weakness in the daigou channel and the growing popularity of Chinese infant formula brands has been weighing on its shares.

The post These are the 10 most shorted shares on the ASX appeared first on The Motley Fool Australia.

More reading

• Here’s why the City Chic (ASX:CCX) share price is up 25% in 2021
• A2 Milk (ASX:A2M) share price in focus following update
• ASX 200 Weekly Wrap: COVID wobbles ASX as shares retreat
• 2 excellent ASX growth shares that could be buys
• Top brokers name 3 ASX shares to sell next week

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 Electro Optic Systems Holdings Limited, Kogan.com ltd, Temple & Webster Group Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings Limited, Kogan.com ltd, and Webjet Ltd. The Motley Fool Australia has recommended A2 Milk, Flight Centre Travel Group Limited, and Temple & Webster Group Ltd. 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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Vanguard’s Ethically Conscious Australian Shares ETF (ASX: VETH) is a diversified exchange-traded fund (ETF) that uses an ethical screen on the top 300 ASX-listed shares.

While the ETF underperformed the S&P/ASX 300 Index (ASX: XKO) in the past year, it still managed to deliver 15.3% before dividends.

So, let’s grasp an understanding of what this ETF is exactly.

Investing in ASX shares without the baggage

ETFs are a popular way for investors to gain exposure to a specific sector, index, or thematic in a single transaction. One increasingly popular thematic is ethical investing.

There are many options available when it comes to providers of ethical investing ETFs, however, today we’re taking a look at Vanguard’s Ethically Conscious Australian Shares ETF.

This one considers the top 300 companies listed on the ASX with an added filter. Specifically, the fund excludes companies with significant business activities involving fossil fuels, nuclear power, alcohol, tobacco, gambling, weapons, adult entertainment, and a conduct-related screen based on severe controversies.

As a result, the fund holds 238 ASX-listed companies with a median market capitalisation of $35.9 billion. According to the fund, the price-to-earnings (P/E) ratio of the ETF came to 20.5 times as at 31 May 2021.

Passive income investors would also be pleased to know that VETH ASX currently has a dividend yield of 2.6%.

What companies are in VETH ASX?

For most investors, you want to know exactly what is in the financial product your hard-earned dollars are going towards. For that reason, here are the top 10 holdings of the Vanguard Ethically Conscious Australian Shares ETF:

1. Commonwealth Bank of Australia (ASX: CBA)
2. CSL Limited (ASX: CSL)
3. Westpac Banking Corp (ASX: WBC)
4. National Australia Bank Ltd (ASX: NAB)
5. Australia & New Zealand Banking Grp Ltd (ASX: ANZ)
6. Wesfarmers Ltd (ASX: WES)
7. Fortescue Metals Group Ltd (ASX: FMG)
8. Macquarie Group Ltd (ASX: MQG)
9. Telstra Corp Ltd (ASX: TLS)
10. Transurban Group (ASX: TCL)

These top 10 holdings make up 48.9% of the total ETF. But how does VETH’s top 10 differ from the unfiltered ASX 300? Well, the notable exclusions include BHP Group Ltd (ASX: BHP) and Woolworths Group Ltd (ASX: WOW).

However, the latter might be considered now that Woolies has demerged from its alcohol business, Endeavour Group Ltd (ASX: EDV)

Finally, one of the most important considerations for an ETF… the costs. Investors can expect a 0.16% per annum management fee in addition to 0.01% of indirect costs.

At the time of writing, the ASX-listed VETH is trading for $58.93 per unit.

The post What is the Vanguard Ethically Conscious ETF (ASX:VETH)? appeared first on The Motley Fool Australia.

More reading

• Sayona Mining (ASX:SYA) share price sinks 8% on capital raising efforts
• Top broker tells investors to stand ready to take profit on ASX bank shares
• NAB (ASX:NAB) share price lifts amid news of bid to acquire Citi banking
• Why the Archer Minerals (ASX:AXE) share price is surging 12% higher
• It has been a big past year for the Qantas (ASX:QAN) share price

Motley Fool contributor Mitchell Lawler owns shares of Commonwealth Bank of Australia and Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited, Telstra Corporation Limited, and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The market may be rallying again, but one expert is warnings investors to be ready to sell their ASX bank shares.

The S&P/ASX 200 Index (Index:^AXJO) jumped 1% in morning trade and ASX bank share prices are also trading higher.

The sector is among the best performing ASX shares over the past year, but their best may be behind them.

ASX bank shares running out of puff

That’s the warning from the analysts at Macquarie Group Ltd (ASX: MQG). They believe ASX bank shares could soon be hit by the “buy the rumour, sell the fact” saying.

These shares have been bolstered by falling impairment charges, potential capital returns and cost savings.

But these tailwinds are already priced into ASX banks and are unlikely to drive a further re-rating in the sector, according to Macquarie.

No interest rate boost for ASX bank share prices

Investors are now hoping that rising interest rates will help extend the outperformance of ASX bank share prices. The broker warns that this hope may be misplaced.

“In simplistic terms, we estimate ~8% earnings uplift from a ~25bps shift in interest rates,” said Macquarie.

“However, incorporating several likely offsets (such as the impact of replicating portfolios, deposit repricing and mix changes, and BBSW-OIS implications) suggests that the ultimate benefit is substantially smaller.

“We estimate a ~3-4% earnings upside from a ~40bps increase in the cash rate to ~0.5%.”

Commonwealth Bank’s illusionary advantage

In principle, ASX bank earnings do benefit from rising rates. This is because they can charge more on loans while the rates they pay on deposits only lift marginally in comparison.

Following this logic, some might believe that the Commonwealth Bank of Australia (ASX: CBA) share price would benefit the most. This is because it sources more of its capital from deposits compared to its peers.

However, Macquarie’s analysis shows that the CBA share price does not benefit any more to the other three big ASX banks.

Poor track record

History also isn’t on the side of ASX bank share prices. The results are mixed when looking at past performance of the sector during times when rates are rising.

This is particularly so when it comes to the cash rate. That’s the official interest rate set by the Reserve Bank of Australia.

“Our analysis suggests that the perceived benefit for banks from rising rates appears to be inflated. The impact of rising rates on Australian banks’ performance since the early 90s varied, led to banks underperforming on average by ~1%,” added Macquarie.

“Similarly, when we analysed four recent examples offshore when rates went up from close to zero levels, banks generally underperformed.”

On that note, Macquarie is urging investors to take profits ahead of the cash rate cycle turning.

ASX bank shares to buy and sell

The one to sell is the CBA share price as the broker downgraded it to “underperform” from “neutral” following its big rally.

On the other hand, Macquarie upgraded the National Australia Bank Ltd. (ASX: NAB) share price to “outperform” as its underlying trends continue to improve.

The post Top broker tells investors to stand ready to take profit on ASX bank shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Brendon Lau owns shares of Commonwealth Bank of Australia, National Australia Bank Ltd. and Macquarie Group Limited. Connect with me on Twitter @brenlau.

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 Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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