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Passive income may be a key goal for many investors that want to generate a lot of dividends each year.

I think there’s a reason why the phrase ‘it pays dividends’ is a positive saying. I think they’re great. Receiving cash for doing no work is a really nice benefit, in my opinion. We can receive a share of the company’s profits each year, while it (hopefully) re-invests the rest for more growth.

Receiving dividends year after year is one of the best benefits of owning ASX dividend shares. Another great benefit is that ASX dividend shares can deliver growth as well – that’s potential capital growth and dividend growth.

The answer we’re after is how much investors need to have invested to generate $800 per month. The answer is: it depends.

Dividend yield

It all depends on how much of a dividend yield the portfolio is going to pay.

For starters, receiving $800 per month translates into annual dividends of $9,600. That’s a very healthy amount of money.

But, it all depends on what the dividend yield is for and how much passive dividend income it could make.

If the ASX share portfolio had a dividend yield of 1%, then investors would need $960,000 to be invested. That’s a lot – almost $1 million.

A 2% dividend yield from a portfolio, but wanting an average of $800 per month, would need a portfolio size of $480,000.

If the portfolio paid a 4% dividend yield, then investors would need a portfolio worth $240,000.

Looking at a 6% dividend yield, we’re talking about a portfolio size of $160,000.

An 8% dividend yield from the portfolio means investors would only need to invest $120,000.

Finally a 10% dividend yield would mean that investors need a $96,000 portfolio.

Which ASX shares pay dividends?

Many of the ASX’s biggest businesses pay dividends to investors such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA) and CSL Limited (ASX: CSL).

Different businesses have different dividend yields, depending on how much of the profit they pay out each year (called the dividend payout ratio) and the multiple of earnings that a business is trading at (which is called the price/earnings (P/E) ratio).

Let’s look at what a few dividend yields are expected to be in FY23, according to Commsec’s projections.

Telstra Group Ltd (ASX: TLS) shares might pay a grossed-up dividend yield of 5.75%.

National Australia Bank Ltd (ASX: NAB) shares could pay a grossed-up dividend yield of 8.8%.

Coles Group Ltd (ASX: COL) shares are projected to pay a grossed-up dividend yield of 5.1%.

Sonic Healthcare Ltd (ASX: SHL) shares might pay a grossed-up dividend yield of 4.2%.

By mixing and matching different yielding businesses together, we can create a good portfolio for passive income. But, I wouldn’t suggest just going for the highest-yielding options – they might be risky and come with less growth.

The post Passive income: How much to invest to get $800 per month appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Brokers say Telstra and this ASX 200 dividend shares are buys
• Here are the 3 most heavily traded ASX 200 shares on Monday
• 7 ASX 200 stocks smashing new 52-week highs on Monday
• 3 Warren Buffett tips on how to invest in ASX 200 banks

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 CSL. The Motley Fool Australia has positions in and has recommended Coles Group and Telstra 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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The S&P/ASX 200 Index (ASX: XJO) started the week on a strong note, closing Monday up 0.5%.

Still, the benchmark index remains down 4.6% since the closing bell on 3 February.

Which begs the question, is now the time to invest in ASX 200 shares for their passive income?

ASX 200 shares offer attractive passive income potential

ASX 200 dividend shares can set investors up with some handy passive income streams.

Particularly those that provide franking credits, which credit investors with the taxes the companies have already paid on the profits they’re sharing out.

Getting the most passive income from your ASX 200 share requires buying the stock at the lowest possible price.

Now, timing the market with any kind of precision is all but impossible to do. Especially with consistency.

And, of course, you don’t want to invest in a company that’s losing share value because of operational or other sector-specific issues that are likely to see management cut future dividend payments.

But today we see many companies trading below their February levels simply due to broader macroeconomic factors, like global banking concerns and stubbornly high inflation.

Those macro issues will resolve themselves in due time. And high-quality ASX 200 companies should see their share prices rebound accordingly.

If their dividends remain on track, that means investors buying at today’s more subdued prices will realise higher yields come payout time.

So, is now a good time to hunt for blue-chip bargains to build up some handy passive income?

In my opinion, that’s a clear yes.

But do bear in mind that macro forces may not be done pressuring shares yet before they post a sustained recovery.

One way to tackle that concern is by dollar cost averaging your investments into any promising ASX 200 dividend shares. That can help smooth your returns and reduce the risk of going all in right before the broader market posts a sharp correction.

With history as our guide, we know there’ll be plenty of ups and downs yet from today’s levels.

We also know that in time the ASX 200 will almost certainly blow past February’s recent highs, offering some outsized passive income potential to investors who begin to dollar cost average today.

The post The ASX 200 is down 5% since February. Time to pounce for passive income? appeared first on The Motley Fool Australia.

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More reading

• Why did the Fortescue share price smash the ASX 200 in March?
• 5 things to watch on the ASX 200 on Tuesday
• Here are the 3 most heavily traded ASX 200 shares on Monday
• 7 ASX 200 stocks smashing new 52-week highs on Monday
• Why did the Telstra share price beat the ASX 200 in March?

Motley Fool contributor Bernd Struben 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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Brokers have been busy in recent weeks adjusting their forecasts and recommendations to reflect updates that were given during earnings season.

Two ASX dividend shares that have fared well are listed below. Here’s why brokers think income investors should be buying these shares:

ANZ Group Holdings Ltd (ASX: ANZ)

The first ASX dividend share for income investors to look at is banking giant ANZ.

The team at Citi are very positive on ANZ and believes it is the bank to buy right now. The broker currently has a buy rating and $29.25 price target on its shares.

It was pleased with ANZ’s first-quarter update and believes its earnings are currently ahead of expectations. More of the same is expected in the future thanks to “lending momentum, particularly in institutional.”

As for dividends, Citi is forecasting fully franked dividends of 166 cents per share in FY 2023 and then 176 cents per share in FY 2024. Based on the current ANZ share price of $23.22, this will mean yields of 7.1% and 7.6%, respectively.

Healthco Healthcare and Wellness REIT (ASX: HCW)

Another ASX dividend share that could be a buy for income investors is the Healthco Healthcare and Wellness REIT.

As you might have guessed from its name, this property company has a focus on health and wellness assets. These are properties such as hospitals, aged care, childcare, government, life sciences and research, and primary care and wellness properties.

Morgans is positive on the company and is expecting some big dividend yields in the coming years.

For example, Morgans is expecting in dividends per share of 7.5 cents in FY 2023 and 7.8 cents FY 2024. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.34, this will mean yields of 5.6% and 5.8%, respectively.

Morgans has an add rating and $2.06 price target on its shares.

The post Brokers say these ASX dividend shares are buys appeared first on The Motley Fool Australia.

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More reading

• 3 Warren Buffett tips on how to invest in ASX 200 banks
• Why did the ANZ share price crash 7% in March?
• Why Appen, Harvey Norman, Healthco, and Lake shares are dropping today
• Guess which ASX 200 bank stock UBS says is the most over-priced right now
• ASX 200 bank stocks: ‘No different’ or ‘extremely strong’?

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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After a strong start to 2023, the S&P/ASX 200 Index (ASX: XJO) has now fallen almost 4% since 8 February.

That means there could be some bargains to be bought during this particular dip.

Here are two buy suggestions from the experts this week:

‘One of the most innovative companies’

It has not been a pleasant ride for those who hold shares in US payments giant and Afterpay owner Block Inc CDI (ASX: SQ2).

The share price has plummeted a shocking 43.5% over the past 12 months, as the market has abandoned fintech stocks like it was a burning building.

However, Sequoia Wealth senior wealth manager Peter Day rates it as a buy at its current price.

“The share price of this buy now, pay later provider can be rapidly volatile in either direction,” Day told The Bull.

“We view Block Inc as one of the most innovative companies in payments.”

He admitted that those buying Block shares need to have the stomach for wild fluctuations in stock price.

“The stock suits investors with an appetite for risk,” said Day.

“On March 22, the shares closed at $115.15. On March 24, the stock closed at $88.94. The shares were trading at $99.28 on March 30.”

17 out of 18 analysts can’t be wrong?

Despite an outstanding year for the energy sector in 2022, Seneca Financial Group investment advisor Tony Langford is bullish on Santos Ltd (ASX: STO) for this year.

“Production is forecast to grow, as demand for products is expected to remain strong.”

He noted Santos’ pleasing reporting season figures.

“The energy giant reported a full year 2022 net profit after tax of US$2.112 billion, up 221% on the prior corresponding period,” said Langford.

“Free cash flow of US$3.641 billion was up 142%. Gearing was reduced to 18.9%. Higher oil and LNG prices contributed to the result.”

For an energy giant, the Santos share price hasn’t lit the world on fire over the past 12 months, actually falling more than 10%.

This mediocrity could point to a golden buying opportunity.

Quite a few of Langford’s peers agree. According to CMC Markets, a remarkable 17 out of 18 analysts currently rate Santos as a buy.

The post ‘Strong demand’: The 2 ASX 200 shares to pounce on right now appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 energy shares off to such a great start on Monday?
• 5 things to watch on the ASX 200 on Monday
• Here are the top 10 ASX 200 shares today
• Why Block, Novonix, Piedmont Lithium, and Syrah shares are racing higher
• Why Jervois Global, Mincor, Newcrest, and Santos shares are dropping today

Motley Fool contributor Tony Yoo has positions in Block. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block. The Motley Fool Australia has positions in and has recommended Block. 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 Fortescue Metals Group Ltd (ASX: FMG) share price managed to do very well in March 2023 compared to the S&P/ASX 200 Index (ASX: XJO).

Shares in the ASX mining company lifted by more than 5% last month, while the ASX 200 dropped by 1%.

Considering Fortescue’s large market capitalisation of $69.25 billion as of Monday’s close of trade, that’s a fair amount of outperformance.

There are two different things that may explain why the miner was such a standout performer for the month.

Why the ASX 200 declined

The ASX 200 is dominated by two industry segments – mining and ASX bank shares.

If one of those sectors sees a negative performance over the month, then it can hurt the overall ASX share market’s return.

Looking at the ASX bank returns in March 2023, shares in ANZ Group Holdings Ltd (ASX: ANZ) and the National Australia Bank Ltd (ASX: NAB) dropped a hefty 7% and 7.6%, respectively. Meanwhile, the Westpac Banking Corp (ASX: WBC) share price fell 3.9%, and the Commonwealth Bank of Australia (ASX: CBA) was down 2.3%.

While other ASX 200 sectors had their own impacts on the index, banking shares were leading contributors to the month’s decline amid the problems for Silicon Valley Bank (SVB) and Credit Suisse.

What helped the Fortescue share price outperform?

Reporting season was in February 2023, so it wasn’t the result that was the main headline news for the company over March.

The ASX mining share went ex-dividend at the end of February 2023, so that wasn’t a major factor either.

The iron ore share price was largely flat over the month, though the commodity did increase as the month ended.

Fortescue’s strong finish to the month occurred after an update regarding its Iron Bridge project update.

The company advised that the first production for its Iron Bridge project had been revised to the second half of April 2023.

Fortescue said the project continued to make “significant progress while managing the impacts of weather on activity at the site and associated infrastructure”.

It also said that commissioning activities were “well progressed on dry processing line A”, and water commissioning of the wet plant was “near completion”.

Fortescue added that the entire steel concentrate and return water pipelines had been welded and buried and that the Canning Basin raw water pipeline was completed and undergoing final testing.

The iron ASX share also said that water commissioning has commenced on line A at the concentrate handling facility at Port Hedland.

The miner reminded investors that it would produce 22 million tonnes per year of “high grade 67% of Fe magnetite concentrate”.

Fortescue share price snapshot

Since the start of 2023, the Fortescue share price has climbed by 8%. The ASX 200 has lifted by 4% in the year to date.

The post Why did the Fortescue share price smash the ASX 200 in March? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the 3 most heavily traded ASX 200 shares on Monday
• 7 ASX 200 stocks smashing new 52-week highs on Monday
• 2 ASX 200 mining directors buying up their company shares in the past week
• Why did the Telstra share price beat the ASX 200 in March?

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group. 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 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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The current year is bearing a lot of similarities to 2019, so it pays to see which ASX shares were successful three years ago.

That’s the opinion of Wilsons equity strategist Rob Crookston, who recalled that the economy slowed in 2019, just as it is doing now. 

But no real downturn or recession came along that year.

“In a similar vein, our base case remains that [this year] the US and domestic economy can avoid a recession, but a slowdown appears likely,” he said in a memo to clients.

Both the US Federal Reserve and the Reserve Bank of Australia (RBA) cut interest rates in 2019 after seeing their economies losing vigour.

“While the motives for cuts this year will be different, the market is now pricing cuts to the Fed and RBA after a fall in confidence in the global banking system,” said Crookston.

“We believe some easing later in 2023 for the Fed, and late 2023 or early 2024 for the RBA is plausible.”

Back to the future: How to position your 2023 portfolio

So if the current situation is so similar to three years ago, how has Wilsons positioned its portfolio?

According to Crookston, his team currently favours growth stocks.

“One of our key portfolio overweights is to growth, with a preference for non-cyclical growth such as healthcare, tech, and stocks like IDP Education Ltd (ASX: IEL) and Lotteries Corporation Ltd (ASX: TLC),” he said.

“We see these stocks, like in 2019, to be key beneficiaries of lower rates/bond yields and a slowdown in economic growth.”

That doesn’t mean cyclical growth won’t also benefit from a cut in interest rates.

“Nine Entertainment Co Holdings Ltd (ASX: NEC) should benefit from lower rates and improving housing market sentiment owing to its 60% ownership of online housing classified Domain Holdings Australia Ltd (ASX: DHG),” said Crookston.

“Macquarie Group Ltd (ASX: MQG) and James Hardie industries PLC (ASX: JHX) will likely rerate when rates fall, while earnings prospects would improve on investment banking and US housing respectively.”

The major difference between 2023 and 2019 is the current impact of high inflation.

Crookston warned that is a critical filter to apply when picking ASX growth shares at the moment.

“We believe the best defence against persistent cost inflation is pricing power,” he said.

“High quality companies with resilient customer demand through the cycle and dominant market positions operating in attractive industry structures are best placed to protect their margins by raising prices.”

The post Why ASX shares in 2023 are eerily similar to 2019 (and what you should do) appeared first on The Motley Fool Australia.

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More reading

• This ASX share’s halved in 5 years, but I’m still sticking with it
• These ASX 200 shares just plunged. Which one’s the bargain?
• Here are the top 10 ASX 200 shares today
• Morgans says these are some of the best blue chip ASX 200 shares to buy now
• Is right now a once-in-a-decade opportunity to buy ASX 200 bank shares?

Motley Fool contributor Tony Yoo has positions in Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Idp Education. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Idp Education and Nine Entertainment. 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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You want your portfolio to perform better than the market, right?

If not, then you might as well just buy passive ETFs and be done with it. The whole point of owning a basket of company-specific stocks is because you want better returns than the average.

So if that’s the case, then there is no point in buying ASX shares that everyone has. If you’re just buying the 100 biggest stocks then that is the market.

Somewhere within the portfolio, it could be an idea to hold some more obscure stocks that make your investment different to what everyone else is doing.

With that spirit in mind, here are a couple of buy suggestions:

‘Well positioned’ company in defensive industry

Capitol Health Ltd (ASX: CAJ) is a diagnostic imaging services provider, in a sector that still sees demand during tougher economic times.

Sequoia Wealth senior wealth manager Peter Day was a fan of what he saw during reporting season.

“First half 2023 revenue of $98.1 million was up 3.4% on the prior corresponding period,” Day told The Bull.

“In the near term, we forecast a recovery in face-to-face general practitioner consultations as a catalyst for improving imaging volumes.”

The more than 17% drop in the share price so far this year is not putting off Day.

“We believe Capitol Health is well positioned relative to peers given strong specialist recruitment and exposure to recovery locations in Victoria.”

Capitol Health shares currently pay out a dividend yield of 3.8%.

Higher inflation is actually good for this business

Steadfast Group Ltd (ASX: SDF) is also lucky enough to be in an industry that doesn’t suffer too much through tougher parts of the economic cycle.

“Steadfast has the biggest general insurance broker network in Australasia,” Seneca Financial Group investment advisor Tony Langford told The Bull.

Accordingly, the stock price has risen 22.6% over the past 12 months.

But Langford, who rates Steadfast as a buy, believes there’s more to come.

“Underlying net profit after tax and amortisation of $111.1 million in the first half of fiscal year 2023 was up 18.8% on the prior corresponding period,” he said.

“Expect higher inflation to lead to increasing insurance premiums and higher commissions.”

Steadfast shares currently pay out a dividend yield of around 2.3%.

The post 2 ASX shares to buy that no one talks about appeared first on The Motley Fool Australia.

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More reading

• 2 ‘recession-resistant’ ASX 200 shares to start a strong portfolio: expert
• 2 ASX 200 shares to rocket from same booming industry: 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 positions in and has recommended Steadfast Group. The Motley Fool Australia has positions in and has recommended Steadfast 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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On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week on a positive note. The benchmark index rose 0.6% to 7,223 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to rise again on Tuesday following a solid start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 15 points or 0.2% higher. In the United States, the Dow Jones was up 1% and the S&P 500 rose 0.4%, but the NASDAQ fell 0.3%.

Oil prices jump

Energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have good session after oil prices jumped. According to Bloomberg, the WTI crude oil price is up 6.3% to US$80.45 a barrel and the Brent crude oil price is up 6,3% to US$84.93 a barrel. Oil prices surged higher on Monday after OPEC announced a surprise production cut.

RBA meeting

It is the first Tuesday of the month, which means the Reserve Bank of Australia will be meeting to discuss the cash rate. According to the latest cash rate futures, the market is pricing in a 100% probability of rates remaining unchanged at 3.6%. Should the central bank do anything else, expect a reaction from the ASX 200 index.

Gold price pushes higher

It could be a decent day for gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.85% to US$2,003 an ounce. A softer dollar and concerns over the impact of OPEC’s production cut on economic growth boosted the precious metal.

Sonic named as a buy

The Sonic Healthcare Limited (ASX: SHL) share price could be in the buy zone according to analysts at Morgans. This morning, the broker has retained its add rating with an improved price target of $37.80. It said: “We believe SHL has turned the corner on the pandemic and is in a strong position, with solid base business growth and effective cost outs, along with Covid-19 testing (at some level) and ample liquidity for capital management and M&A.”

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Monday
• Leading brokers name 3 ASX shares to buy today
• 7 ASX 200 stocks smashing new 52-week highs on Monday
• Why did the Telstra share price beat the ASX 200 in March?
• 5 things to watch on the ASX 200 on Monday

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 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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Are you looking for ASX 200 dividend shares to buy? If you are, you may want to check out the two buy-rated shares listed below that have been tipped to provide attractive yields.

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

Elders Ltd (ASX: ELD)

This agribusiness company could be an ASX 200 dividend share to buy right now.

That’s the view of analysts at Goldman Sachs, which believe that recent share price weakness has created a buying opportunity for investors. The broker highlights that “the fundamentals of this company remain unchanged, and strong in our view.” It also believes that “ELD is very well positioned to grow through the cycle.”

The broker has a conviction buy rating and $18.40 price target on the company’s shares at present.

As for dividends, Goldman is forecasting fully franked dividends per share of 53 cents in FY 2023 and 57 cents in FY 2024. Based on the current Elders share price of $8.51, this will mean yields of 6.2% and 6.7%, respectively.

Telstra Corporation Ltd (ASX: TLS)

Another ASX 200 dividend share that could be in the buy zone is Telstra.

Analysts at Morgans are very positive on the telco giant due to its successful turnaround via the T22 strategy, its new growth strategy, the recently approved restructure, and positive industry conditions.

The broker highlights that “telco has the strongest tailwinds in a decade with an increasingly rational market, price rises across the majors and the criticality of telco increasingly recognised.”

In respect to dividends, Morgans is expecting Telstra to pay fully franked 17 cents per share dividends in both FY 2023 and FY 2024. Based on the current Telstra share price of $4.22 this equates to yields of 4%.

Morgans has as an add rating and $4.70 price target on the company’s shares.

The post Brokers say Telstra and this ASX 200 dividend shares are buys 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 positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Elders. 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 ended up being a top day for the S&P/ASX 200 Index (ASX: XJO) during Monday’s session. By the close of trading, the ASX 200 had risen by a healthy 0.63% at 7,223 points. But one ASX exchange-traded fund (ETF) did even better than that. Yes, the Vanguard MSCI  Index International Shares ETF (ASX: VGS) had a great day, finishing up at $99.70 a unit, a market-beating rise of 1.24%. 

But that’s not all. This ETF also hit a new 52-week high this morning, climbing to the inherently pleasing mark of exactly $100 per unit.

That’s the Vanguard International Shares ETF’s new 52-week high. It’s also the highest this ETF has traded at since February 2022.

So why has this ETF cracked a new high today, and beat the ASX 200 in the process?

Well, this ETF doesn’t have a lot to do with ASX shares at all. The Vanguard International Shares ETF is an index fund. But one that tracks the MSCI World ex-Australia Index. This index represents more than 1,500 individual shares that hail from most of the advanced economies around the world.

You’ll find shares from the United Kingdom here, as well as from Canada, Europe, Japan, Hong Kong, Singapore and Israel, amongst others. But it is the United States and its companies that really dominate this ETF, with almost 70% of the portfolio weighting.

Its largest holdings are the likes of Apple, Microsoft, Alphabet, Amazon.com and Tesla.

So to explain why the Vanguard International Shares ETF hit a new high today, these are the companies we should look to for an explanation.

Why did the Vanguard International Shares ETF hit a new 52-week high today?

And lo and behold, the US markets had a cracking session on Friday night (our time). The S&P 500 Index (SP: .INX) rose by 1.44% for a start. And many of this ETF’s top holdings had an even better time. For example, Apple shares were up 1.56%, Alphabet’s Class A shares rose by 2.8%, and Tesla stock rocketed by an impressive 6.24%.

So with numbers like that coming in for many of this ETF’s top holdings, it was always going to have a happy day today.

The Vanguard MSCI Index International Shares ETF is now up a healthy 9.49% year to date:

The post Why did the Vanguard MSCI Index International Shares ETF just hit a new 52-week high? appeared first on The Motley Fool Australia.

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• Zip share price dips amid Apple’s BNPL US launch
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• 3 fantastic ETFs for ASX investors to buy in April
• Why I think the Vanguard MSCI Index International Shares ETF (VGS) is a buy for any portfolio

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon.com, Apple, Microsoft, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon.com, Apple, Microsoft, Tesla, and Vanguard Msci Index International Shares ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet, Amazon.com, Apple, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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