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Growth investors certainly are spoilt for choice on the Australian share market. But which ASX growth shares should you buy over others?

Three that are highly rated right now are named below. Here’s why analysts are tipping them as buys:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX growth share to buy could be Aristocrat Leisure. It is one of the world’s leading gaming technology companies.

Morgans is very positive on the company and has an add rating and $43.00 price target on its shares. It believes the company’s is well-placed for long term growth potential. The broker commented:

We’re optimistic about ALL’s long-term growth potential, given its superior capitalisation and strong ability to invest in the development of its land-based and digital gaming businesses. Additionally, ALL has a high cash conversion rate and ROCE, despite running a capital-light model. Additionally, ALL has ample funding for investment in online RMG, even following the recent buyback extension.

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share that could be a buy is Temple & Webster. It is Australia’s leading pureplay online furniture and homewares retailer.

Goldman is very bullish on the company and has a buy rating and $6.50 price target on its shares.

It believes Temple & Webster is well-positioned for long-term growth thanks to its strong position in a category that is still in the early stages of shifting online. It commented:

Our Buy thesis is predicated on the following key drivers: (1) we believe TPW is well positioned in the upcoming cycle to continue to grow market share, despite a weaker macro environment; (2) in our view TPW is best placed to be a winner in a category that favours scale players, requires a specialised approach to e-commerce, and has higher barriers to entry vs. other retail categories; and (3) greater focus on costs is a sensible strategy to balance near-term profitability with growth.

Xero Limited (ASX: XRO)

Analysts at Citi are bullish on this cloud accounting platform provider and believe it could be an ASX growth share to buy. The broker has a buy rating and $105.70 price target on its shares.

Citi was pleased with the company’s decision to cut costs and is now forecasting very strong earnings growth in the coming years. It commented:

Xero’s decision to reduce ~15% of its headcount is unsurprising given: i) revenue/EBITDA per headcount has been limited (~1%) over the last two years; and ii) when considering that growth is expected to slow next year due to delays to MTD as well as softer macro conditions. We maintain our Buy rating as we expect Xero to deliver 3-year EBITDA CAGR >35% which reflects revenue growth of ~19%

The post Supercharge your portfolio with these 3 ASX growth shares: brokers appeared first on The Motley Fool Australia.

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More reading

• Could buying Xero shares at under $95 make me rich?
• These are the 10 most shorted ASX shares this week
• Top brokers name 3 ASX shares to buy next week
• Goldman Sachs just added this ASX 200 share to its coveted conviction list
• The ASX 200 tech stock to buy now before a massive revival

Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s been a tug of war between bullish and bearish forces so far this year.

The S&P/ASX 200 Index (ASX: XJO) started the year with a 9% rise into February, but then pretty much lost all those gains by mid-March. Since then it has leapt back up again to the tune of 6.5%.

This violent whipsawing is due to the Reserve Bank of Australia and US Federal Reserve’s fight against rampant inflation.

They have raised interest rates steeply over such a short interval that the market doesn’t know whether to be depressed because of a possible recession or upbeat because the rate rises are about to cease.

After more than ten months of this battle, the annual inflation rate in Australia remains at a worryingly high 6.8%.

But, believe it or not, there are certain ASX 200 stocks that are thriving in this environment.

How these stocks have all risen in 2023

According to IML portfolio manager Daniel Moore, some ASX sectors fared better in the March quarter than others.

“Consumer discretionary stocks had a massive quarter — they were up 10% for March. The other big one was communications,” Moore said in an IML video.

“On the negative side, not surprisingly, the financial sector was down around 3% because of that impending banking crisis in the US. So some mixed results.”

Within the IML portfolio, he named four ASX 200 shares that have outperformed this year, recording double-digit gains.

“We had a lot of great performance in the quarter. A lot of that were stocks we’ve talked about recently, that had really good reporting seasons,” Moore said.

“Whether it was Brambles Limited (ASX: BXB) or Sonic Healthcare Limited (ASX: SHL), or Steadfast Group Ltd (ASX: SDF), we had a number of really strong performers. Lottery Corporation Ltd (ASX: TLC) was another, all up in the teens.”

While these stars play in vastly different industries, ranging from health to industrials to insurance to gambling, they have common attributes that make them a success in the current climate.

“What was interesting, all those businesses are market leaders,” said Moore.

“And they’re all managing this inflationary environment very well, either exercising pricing power or managing their costs or winning market shares.”

Sonic Healthcare shares are up 20.9% for the year so far, while Brambles has climbed 16.7%. The Lottery Corporation and Steadfast Group share prices are both around 9% higher than where they started the year.

The post 4 ASX 200 shares going gangbusters in high inflation (and what they have in common) appeared first on The Motley Fool Australia.

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• How much do you need to invest to give up work and live only off dividend income?
• Big Wednesday: 12 ASX 200 stocks cracking new 52-week highs
• Passive income: How much to invest to get $800 per month

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Steadfast Group. The Motley Fool Australia has positions in and has recommended Steadfast Group. The Motley Fool Australia has recommended Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Although interest rates on savings accounts and term deposits are improving, they still pale in comparison to what you can find on the Australian share market.

For example, the two ASX dividend shares named below offer yields that are vastly better than what you will find with Commonwealth Bank of Australia (ASX: CBA) term deposits right now.

Here’s what you need to know:

Charter Hall Long WALE REIT (ASX: CLW)

The team at Citi see a lot of value in this property company’s shares at current levels.

The broker currently has a buy rating and $5.00 price target on its shares. Based on the current Charter Hall Long WALE REIT share price of $4.28, this implies potential upside of 17% for investors.

Citi likes the company due to its “low risk income stream with c. 12 year WALE and 99.9% occupancy.”

As for dividends, the broker expects dividends per share of 28 cents in FY 2023 and 29 cents in FY 2024. This would mean yields of 6.5% and 6.8%, respectively.

Healthco Healthcare and Wellness REIT (ASX: HCW)

The Healthco Healthcare and Wellness REIT has been tipped as both a buy and a big dividend payer by analysts at Morgans.

The real estate investment trust, which invests in healthcare and wellness assets such as hospitals, aged care, and childcare properties, is on the broker’s best ideas list with an add rating and $2.05 price target.

Based on the current Healthco Healthcare and Wellness REIT share price of $1.35, this suggests potential upside of almost 52% for investors over the next 12 months.

As for dividends, Morgans is forecasting dividends per share of 8 cents in both FY 2023 and FY 2024. This will mean yields of 5.9% for investors in both years.

The post Want passive income? Forget term deposits and buy these high yield ASX dividend shares: brokers appeared first on The Motley Fool Australia.

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

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The CSL Limited (ASX: CSL) share price has been on form over the last 12 months.

As you can see on the chart below, the biotherapeutics company’s shares have risen over 14% to $300.24.

As a comparison, the ASX 200 index is down almost 3% over the same period.

Has the CSL share price peaked?

If the broker community is to be believed, the CSL share price could still have plenty of gas in its tank and be destined to keep climbing from here.

For example, analysts at Citi, Macquarie, and Morgans, to name just three, all have the equivalent of buy ratings on its shares with price targets implying double digit returns.

Citi currently has a buy rating and $350.00 price target. Based on the latest CSL share price, this implies potential upside of approximately 16.5% over the next 12 months.

Macquarie is almost as bullish with its outperform rating and $344.00 price target, which implies almost 15% upside for investors.

Finally, Morgans has an add rating and $337.92 price target, which suggests that the CSL share price can rise approximately 12.5% from here.

What are brokers saying?

All three brokers are positive on the company’s outlook and expect strong earnings growth in the coming years.

This is being underpinned by a significant improvement in plasma collection conditions, the acquisition of Vifor Pharma, new product launches, and strong demand for immunoglobulins.

Morgans commented:

We believe CSL is poised to break-out this year, a COVID exit trade, offering double-digit recovery in earnings growth as plasma collections increase, new products get approved and influenza vaccine uptake increases around ongoing concerns about respiratory viruses.

Citi recently boosted its earnings forecasts for similar reasons. It explained:

We increase our FY23-25e NPATA per share (Core EPS) by +1%/+7%/+10% reflecting the faster than expected recovery in plasma collections and higher sales. Our TP moves to $350 (from $335) Maintain Buy.

All in all, it may not be too late to snap up this high-quality company.

The post What are analysts saying about the CSL share price? appeared first on The Motley Fool Australia.

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• Invested $6,000 in CSL shares 5 years ago? Here’s how much dividend income you’ve earned
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• If I’d invested $1,000 in CSL shares 24 years ago, here’s how much I’d have now!
• Why did the CSL share price lag the ASX 200 in the first quarter of 2023?
• Build your portfolio around these ASX 200 blue chip shares: brokers

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. 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 Scott Phillips.

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Today’s share market is a very different place from what it was just 18 months ago.

Back in October 2021, it was hard to believe that growth shares would suddenly plunge off the cliff and that energy stocks would start to rule as one of the superpowers invaded a far smaller neighbouring country.

Then to rub salt into the wound, the Reserve Bank of Australia subsequently hiked up interest rates for ten consecutive months.

It might be incredible, but that’s exactly what happened. So all investors need to adjust their parameters and expectations.

In this spirit, Glenmore Asset Management portfolio manager Robert Gregory recently mentioned a stock he’s backing that would have been firmly out of fashion at the start of last year:

I bet you weren’t thinking of this stock in 2021

MMA Offshore Ltd (ASX: MRM) provides equipment and services for the offshore energy sector.

From its August 2018 peak to the end of 2021, the stock lost almost 80% in value, perhaps reflecting the market’s aversion to any business related to fossil fuels.

But in the 16 months since the MMA Offshore share price has more than tripled.

Incredibly, Gregory doesn’t think it has finished its run yet.

“With both oil and gas and offshore wind sectors having positive outlooks for the next two to three years at least, we believe the earnings outlook for MMA Offshore is very promising,” he said in a memo to clients.

The current stock price is still “attractive”, he believes, trading at a “slight discount to net tangible assets and an FY23 EV/EBITDA multiple of ~6x”.

The business has 18 vessels globally and earns the bulk of its revenue from leasing those ships.

“After a tough cyclical downturn of depressed activity from its client base, MMA Offshore is now benefiting from stronger demand, which has seen its key metrics (day rate, utilisation rate, earnings) all rapidly improving.”

Plus it’s earning new clientele, which provides an optimistic outlook. 

“During the month, MRM announced it was awarded three contracts supporting offshore wind farms in Taiwan, which will add $30 million of revenue.”

Gregory is not the only one bullish on this small-cap stock.

Last month, Discovery Fund portfolio manager Chris Bainbridge told The Motley Fool that MMA Offshore is one of his hot buys.

“Looking ahead… day rates probably need to go up another 50% to justify anyone building a new vessel. And when they build a new vessel, there’s a three-year wait time on that vessel,” he said.

“So it’s a really great environment at the moment to be [an] offshore service vessel provider — and that’s where MMA is.”

The post ‘Very promising’: The ASX stock set to make a killing over the next two years appeared first on The Motley Fool Australia.

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• 2 exciting small cap ASX shares to buy for market-beating growth: expert

Motley Fool contributor Tony Yoo 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 Mma Offshore. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Despite the housing market downturn, the REA Group Ltd (ASX: REA) share price has been on fire this year.

Since the start of the year, the property listings company’s shares have risen a sizeable 28% to $142.20.

But don’t worry if you think you might have missed the boat with this ASX 200 share. That’s because one leading broker believes its shares can climb to a new 52-week high and then some more.

This ASX 200 share has ‘one of the best risk/reward profiles’

According to a note out of Goldman Sachs, its analysts have retained their conviction buy rating on this ASX 200 share with an improved price target of $164.00.

Based on the current REA share price, this implies potential upside of 15% for investors over the next 12 months.

What is the broker saying?

Goldman notes that REA and Domain Holdings Australia Ltd (ASX: DHG) are increasing prices for FY 2024 more than it was expecting. It commented:

FY24 price increases more material than expected, comprising: (1) REA Premiere+ pricing +9-13% (+9% MEL, +12.5% SYD, +13% TAS) with more aggressive Premiere All increases (i.e. > 20% in TAS) – suggesting that REA is continuing its playbook of targeting higher increases on its lower tiered products to entice agents to move up the tiers and increase overall spend (i.e. Prem All to Prem+ is c.30% price increase).

These prices are more material than we had anticipated for both REA/DHG (GSe prior +8%), but we are marginally surprised for DHG to not match REA in Sydney. We also note that given the digital marketing budget remains immaterial vs. the overall transaction costs, we remain bullish on the long term opportunity to continue growing yields.

In light of this, the broker highlights that REA has “one of the best risk/reward profiles in our domestic media coverage. In particular, we are positive on the pricing power of the real estate classified vertical, given that we believe budgets will rise (at the expense of commissions), and within existing budgets, REA, as a leading player in the vertical, under-monetises its lead generation.”

All in all, the broker believes this makes REA “among the highest-quality names in our coverage, given it has the highest ability to continue to drive pricing.”

And with this ASX 200 share currently trading on multiples well below historical levels, the broker sees plenty of value on offer right now and has it on its coveted conviction list.

The post This ASX 200 share can hit a new 52-week high: Goldman Sachs appeared first on The Motley Fool Australia.

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• Big Wednesday: 12 ASX 200 stocks cracking new 52-week highs
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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How would you feel if you received $500 each month for doing nothing?

That’s $6,000 each year of passive income, which is pretty handy pocket money. That would easily pay for a nice family holiday.

So what’s the size of investment in ASX dividend shares you would need to achieve this level of financial freedom?

Let’s work it out.

How many BHP shares will I need?

Thanks to favourable tax laws, Australian investors are lucky enough to have a wide range of dividend stocks to choose from on the ASX.

But experts warn some stocks with extremely high dividend yields can be value traps. 

That’s because the yield could have increased due to a falling share price, which in turn could indicate flagging fortunes for the underlying business.

So for the purposes of our calculations, let’s take a large, reliable S&P/ASX 200 Index (ASX: XJO) company such as BHP Group Ltd (ASX: BHP) as an example.

According to The Motley Fool stock profile, BHP shareholders currently enjoy an 8.4% dividend yield.

That means that in order to reap $6,000 each year, you currently need $71,428.57 worth of the mining giant’s shares.

If you include franking credits, depending on your personal circumstances, the investment you need is even less than that.

Not bad at all.

How much do I need to save?

But if you don’t have that large a sum to buy shares with right now, you’ll need to start saving.

Are you able to save $2,000 each month to buy BHP shares? 

According to Canstar, that’s less than half the amount of the average monthly mortgage repayment in NSW.

If you can manage that, you will have bought enough BHP shares within three years to achieve your goal of grabbing $500 per month of glorious dividends. 

Plus the bonus of earning a passive income from ASX shares is that there is the potential for capital growth.

Although share prices can head down, over the long term you stand a reasonable chance that the $71,428.57 of BHP shares will increase in value.

The post How much to invest in ASX shares to get $500 in dividends every month appeared first on The Motley Fool Australia.

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• Here’s the forecast for popular ASX 200 mining shares from UBS
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• 3 ASX 200 shares trading ex-dividend this week
• No signs of OZ Minerals slowing down as BHP takeover looms

Motley Fool contributor Tony Yoo 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 Scott Phillips.

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The Pointsbet Holdings Ltd (ASX: PBH) share price has performed terribly over the last year. Its share price is down by close to 60%.

Pointsbet describes itself as a corporate bookmaker with operations in Australia, the US, Canada, and Ireland. It has developed a “scalable cloud-based wagering platform through which it offers its clients innovative sports and racing wagering products, advance deposit wagering on racing (ADW) and iGaming”.

Strong betting that Pointsbet shares will fall further

The concept of short selling means that investors are essentially betting that the share price is going to go down.

As noted by my colleague James Mickleboro, Pointsbet is (or was) one of the most shorted ASX shares, with a short interest of 7.3%. Mickleboro mentioned competition and cash burn concerns as potential reasons why the shorters may be circling.

The company recently reported its FY23 half-year result, which showed that normalised earnings before interest, tax, depreciation and amortisation (EBITDA) came in at a loss of $149.1 million. This was worse than the $126 million loss in the prior corresponding period.

The company’s operating cash flow outflow also worsened from $78.3 million in HY22 to $103.6 million in HY23. Net operating cash flow, excluding movement in player cash accounts, was an outflow of $123.2 million.

Pointsbet attributed these difficult numbers to more spending on marketing, increased operations, and continued scale operational capabilities.

Are there positives?

I think shorters are being overly pessimistic considering the Pointsbet share price has already fallen so heavily.

The company noted that it’s expecting the FY23 second-half net cash outflow, excluding movements in player cash, to be approximately 30% lower than in the first half of FY23. That would be a big improvement.

Pointsbet also thinks that the second half’s normalised operating expenses will reflect a stabilised cost base.

The gross profit margin is expected to improve in the second half with operating scale in North America. That could be a key help for the Pointsbet share price.

Its revenue-related numbers are growing at a good pace. In the HY23 result, the company revealed its sports betting turnover jumped by 40% to $3.2 billion, while the total net win increased 24% to $182.2 million.

The US is a huge market for Pointsbet to expand into and the steady growth of the company in additional US states is promising, thanks to laws that have been changed to allow sports betting.

It pointed to a renewed and disciplined focus on cost efficiencies, combined with “strong revenue growth, delivering increased operational leverage”.

Management is expecting that the FY23 second-half normalised group EBITDA loss will be between $77 million to $82 million, down from a loss of $117.6 million in the prior corresponding period.

While it is still making losses, the business had $387.2 million of cash at the end of December 2022, though $66.5 million of this represents client cash. But it had no borrowings.

It still has plenty of cash and will hopefully reach cash flow breakeven status before running out of money, requiring capital raising.

Foolish takeaway

The business does face some problems, but there’s a very good chance that the company will be able to grow and benefit from scale advantages.

The Pointsbet share price may well fall from here in the short term but I think in the longer term, the outlook is promising for the business as it expands in the northern hemisphere.

The post Are short sellers wrong about Pointsbet shares? appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares this week
• These are the 10 most shorted ASX shares this week
• Here are the 10 most shorted ASX shares this week

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 positions in and has recommended PointsBet. The Motley Fool Australia has recommended PointsBet. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The good news for income investors is that there are a large number of dividend shares to choose from on the Australian share market.

Two that have done enough to impress analysts at Morgans are listed below. Here’s why they have been rated as buys:

GQG Partners Inc (ASX: GQG)

The first ASX dividend share for income investors to look at is fund manager GQG Partners. Morgans has an add rating and $1.93 price target on its shares.

The broker believes its shares could be great value right now, particularly in comparison to peers. It commented:

GQG’s strong relative investment outperformance through the current market weakness should solidify the near-term flows outflow. GQG has diversified earnings (by strategy and clients); solid performance track-record; and ongoing growth prospects. In our view, the current ~12x PE (versus a sector med-term average of ~16x) is attractive.

As for dividends, Morgans is expecting dividends per share of 11.4 cents in FY 2023 and then 12.6 cents in FY 2024. Based on the current GQG share price of $1.45, this will mean 7.9% and 8.7% yields, respectively.

Whitehaven Coal Ltd (ASX: WHC)

Another ASX dividend share that Morgans is positive on its Whitehaven Coal. The broker has an add rating and $9.85 price target on the coal miner’s shares.

Morgans is very positive on Whitehaven Coal and feels that recent share price weakness has created a buying opportunity for investors. It commented:

Ex M&A, WHC looks far too oversold on the recent NEWC correction (FY23F FCF yield +40%, P/NPV 0.69x). We expect the re-tightening of thermal coal pricing dynamics through April to be a key catalyst for WHC.

In respect to dividends, the broker is expecting a 60 cents per share dividend in FY 2023 and then again in FY 2024. Based on the current Whitehaven Coal share price of $6.97, this implies yields of 8.6% for both years.

The post Broker names 2 high yield ASX dividend shares to buy appeared first on The Motley Fool Australia.

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

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$500 is the minimum spend you have to fork out if you want to buy a parcel of ASX stocks the conventional way. There are other ways of investing in the stock market that require less upfront capital. But a good rule of thumb for a beginner investor is to start with $500.

So if you’ve never invested in the ASX stock market before, but you have your $500 saved up and ready to go, where should a beginner investor turn to?

Well, here are three investments I would recommend for a beginner investor who wants to dip their toes in the proverbial ASX waters of investing.

2 ASX stocks I would recommend for a beginner investor

Australian Foundation Investment Co Ltd (ASX: AFI)

The Australian Foundation Investment Co, or AFIC for short, is the first ASX share I would recommend to a beginner. AFIC specialises in investing in shares on behalf of its investors. So there’s almost no effort required on the investor’s behalf.

This ASX share is what’s known as a listed investment company (LIC). This means it invests in other shares rather than running a conventional business itself.

AFIC has been doing this for almost a century and has a long track record of delivering solid and stable returns. Investing in AFIC shares is really investing in a portfolio of ASX’s best blue-chip businesses.

On the latest data, its top portfolio positions include the likes of BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Woolworths Group Ltd (ASX: WOW) and Telstra Group Ltd (ASX: TLS).

But AFIC maintains this portfolio of shares itself. So there’s no need for its investors to worry about picking the best investments.

According to the company, AFIC shares have returned an average of 9.6% per annum over the past five years, including dividend and franking credit returns.

Vanguard Australian Shares Index ETF (ASX: VAS)

Another investment all investors should consider in my view is this exchange-traded fund (ETF). Index ETFs like this one from Vanguard, work by simply tracking a collection of shares that are weighted by company size (market capitalisation).

In this ETF’s case, this fund holds the largest 300 shares in the Australian share market. That’s everything from CBA, BHP and Woolworths to Coles Group Ltd (ASX: COL), Westpac Banking Corp (ASX: WBC) and Harvey Norman Holdings Limited (ASX: HVN).

In the same vein as AFIC, this ETF doesn’t put any onus on the investor to select individual shares to invest in. You just buy the ETF, and get the largest 300 companies in Australia in one investment.

This ETF has also delivered strong returns for investors over many years. Over the five years to 31 March, the Vanguard Australian Shares ETF units have returned an average of 8.63% per annum (including dividends).

The post Here’s how I’d dip my toe in the Aussie stock market with $500 appeared first on The Motley Fool Australia.

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More reading

• The cheapest index fund on the ASX revealed
• Is the Vanguard Australian Shares Index ETF (VAS) still a dirt-cheap buy in April?
• Sunk $10,000 in the Vanguard Australian Shares ETF 3 years ago? Here’s how much passive income you’ve earned
• 3 reasons to start buying ASX shares this week
• How I’m building more passive income to retire early

Motley Fool contributor Sebastian Bowen has positions in Telstra Group and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Harvey Norman. The Motley Fool Australia has positions in and has recommended Coles Group, Harvey Norman, and Telstra Group. The Motley Fool Australia has recommended Westpac Banking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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