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There are some very good S&P/ASX 200 Index (ASX: XJO) shares that could be worth owning for income.

Some businesses are paying dividends with yields that are much higher than what other assets are paying right now.

The two ASX 200 shares in this article operate in fairly defensive and growing industries:

Centuria Industrial Reit (ASX: CIP)

This real estate investment trust (REIT) gives Aussie investors exposure to the largest domestic pure play industrial property investment vehicle.

It’s rated as a buy by UBS with expectations of more acquisitions and continuing high-quality tenants at its properties. The broker has a share price target for Centuria Industrial REIT of $3.38.

It currently owns around 60 industrial assets that are worth around $2.5 billion. The aim of the REIT is to grow both the income and capital value. It has around 90% of the portfolio weighted to Australia’s strong-performing eastern seaboard industrial markets. It currently has an occupancy rate of 97.7%.

Centuria Industrial Reit has a weighted average lease expiry (WALE) of 9.8 years, which has increased by 5.5 years since December 2016.

Whilst the portfolio has been growing, the gearing of the ASX 200 dividend share has been reducing. It has fallen 13.3 percentage points from 42.9% at December 2016 to 29.6% at December 2020.

The REIT’s net tangible assets (NTA) per unit has been steadily growing over time. In the FY21 half-year result it revealed that its NTA had grown year on year from $2.83 to $2.99.

Centuria Industrial Reit has upgraded its guidance twice for FY21. It’s now expecting FY21 funds from operations (FFO) to be no less than 17.6 cents per unit.

In FY21 the REIT is expecting to pay an annual distribution of 17 cents per unit, which equates to a distribution yield of 5.75% for income-seekers.

Bapcor Ltd (ASX: BAP)

Bapcor likes to describes itself as the leading auto parts business in Australasia. It operates a number of different brands including Burson, Precision Automotive Equipment, AAD, Bearing Wholesalers, Commercial Truck Parts, Autobarn, Autopro, Midas and ABS.

It’s one of the few ASX 200 shares that grew the dividend in FY21, even if it was just an increase of 2.9%.

The FY21 dividend is shaping up to be a much larger increase after a half-year dividend increase of 12.5%.

There was particularly strong growth in its retail businesses during the six-month period with Autobarn same store sales up 37.1%.

Bapcor still has a large growth targets. Over the next five years it wants to increase its number of trade stores from 195 to 240, whilst also growing the percentage of own brand sales from 29% to 35%.

For its commercial vehicle segment, it wants to reach 40 light vehicle locations (currently 16) and 50 heavy vehicle locations (currently 31).

Looking at Autobarn, it wants to reach 200 Autobarn stores, it currently has 133. It’s targeting 500 service locations, which would be an increase from the current 105.

One growth area that the ASX 200 share is really targeting is South East Asia. It now has six locations in Thailand, but it wants to reach at least 80.

In the FY21 half-year result it saw revenue growth of 25.8% to $883.6 million, earnings before interest and tax (EBIT) growth of 45% and net profit growth of 49.7%.

Based on the last 12 months of dividends, it has a grossed-up dividend yield of 3.9%.

More reading

• Why outperforming ASX resources shares will be in the hotseat on Monday
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• Forget the ASX 200! Another market crashed this week
• ASX 200 sinks 2.4%, Afterpay plunges, AMP jumps

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

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Last week was another busy one for investors with an endless stream of results releases.

Three results which were arguably among the best released over the period are summarised below. Here’s what you need to know about them:

Cochlear Limited (ASX: COH) 

This hearing solutions company released a surprisingly strong half year result last week. For the six months ended 31 December, Cochlear posted an underlying net profit of $125.3 million. Impressively, despite facing tough trading conditions caused by COVID-19, Cochlear’s profit was down only 4% in constant currency from its record first half profit in the prior corresponding (and COVID-free) period.

Looking ahead, a strong second half is expected by management. It has provided full year underlying net profit guidance of $225 million to $245 million. This represents a 46% to 59% increase on FY 2020’s profits.

This went down well with analysts at Macquarie. In response to its result, the broker retained its outperform rating and lifted its price target to $245.00.

Goodman Group (ASX: GMG) 

Goodman Group is on form again in FY 2021 and delivered a strong half year result. The global integrated property company reported a 16% increase in operating profit to $614.9 million for the six months ended 31 December. This was driven by new developments, strong demand, and like-for-like net property income growth of 3%.

Also going down well with investors was management’s guidance for the full year. It now expects operating profit growth of 12% in FY 2021. This compares to its previous guidance of 9% year on year growth.

Macquarie was also impressed with this result. It responded by upgrading Goodman’s shares to an outperform rating with an improved price target of $20.39.

Zip Co Ltd (ASX: Z1P) 

This buy now pay later provider has continued its meteoric growth in FY 2021. Last week it released its half year results and reported a 141% increase in total transaction volume (TTV) to $2.32 billion. This underpinned a 130% jump in half year revenue to $160 million.

Zip’s stellar growth was driven largely by a significant lift in active customers. At the end of December, the company had a total of 5.7 million active customers, which was an increase of 217% over the prior corresponding period. In addition to this, it revealed that it now has more than 38,500 merchants across the United States, Australia, New Zealand, and the UK. Looking ahead, Zip advised that it has global momentum and the foundations to accelerate growth in the second half.

In response to the result, analysts at Morgans retained their add rating and lifted their price target to $12.00.

More reading

• Top brokers name 3 ASX shares to buy next week
• ASX 200 sinks 2.4%, Afterpay plunges, AMP jumps
• Brokers name 3 ASX shares to buy right now
• Will Wall Street’s overnight tumble send ASX 200 shares down today?
• ASX 200 rises 0.8%, A2 Milk sinks, Zip drops

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 Cochlear Ltd. and ZIPCOLTD FPO. The Motley Fool Australia has recommended Cochlear 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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As I’m a big fan of small cap shares, I feel quite fortunate to have such a large number of them to choose from on the Australian share market.

Two small cap ASX shares that stand out from the crowd and could have bright futures are listed below. Here’s what you need to know about them:

Booktopia Group Ltd (ASX: BKG)

Booktopia is an online book retailer which has been growing very strongly.

During the first half of FY 2021, the company shipped a total of 4.2 million units for the six months. This was up 40% on the prior corresponding period. This strong growth is being driven by the shift to online shopping and its investment in additional automation and increased capacity at its distribution centre.

This ultimately led to Booktopia reporting a 51.1% increase in revenue to $112.6 million and a 502.3% jump in underlying EBITDA to $8 million.

Analysts at Morgans were pleased with the result. In response to it, the broker retained its add rating and lifted its price target slightly to $3.53. The broker believes the company is well-placed for growth thanks to market share gains and operating leverage.

Universal Store Holdings Limited (ASX: UNI)

Universal Store is a fashion retailer which aims to deliver a frequently changing and carefully curated selection of on-trend products to a target 16-35 year old fashion focused customer.

Last week it released its half year results and revealed that FY 2021 has started very positively. For the six months ended 31 December, Universal Store reported a 23.3% increase in sales to $118 million and a 63.6% increase in underlying net profit after tax to $21.1 million.

This was driven by like for like store sales growth of 19.1% and a 128.3% jump in online sales. This offset store closures in Melbourne between August and October.

Pleasingly, the second half has started just as strongly. During the first seven weeks of the half, it achieved sales growth of 23.5%. This is being driven by like for like sales growth of 28.2%, which offset store closures during recent lockdowns.

Morgans was very pleased with its result. So much so, it retained its add rating and lifted its price target to $8.37.

More reading

• Why Flight Centre, Life360, Nanosonics, & Universal Store are racing higher
• Why the Universal Store (ASX:UNI) share price is up 6% to a record high
• Top brokers name 3 ASX shares to buy today
• 2 buy-rated small cap ASX shares to watch
• Here’s why the Booktopia (ASX:BKG) share price is in focus today

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

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There are some wonderful tech shares on the ASX that may be worth thinking about.

Technology is changing the world in many different ways. It is changing how we shop, it’s changing how people can communicate and it’s changing how we research shares.

Some ASX tech shares have been sold off recently and are now cheaper:

Betashares Nasdaq 100 ETF (ASX: NDQ)

This is an exchange-traded fund (ETF) which invests in 100 of the biggest non-financial businesses listed on the NASDAQ, which is a stock exchange in North America.

Many of the world’s biggest tech companies are listed on the NASDAQ, so there’s blue chip tech exposure to businesses like: Apple, Microsoft, Amazon, Tesla, Alphabet, Facebook, Nvidia, PayPal and Intel.

Whilst it does give exposure to the ‘FAANG’ shares, including Netflix, there are a number of other tech names in the portfolio like Adobe, Broadcom, Qualcomm, Texas Instruments, Applied Materials, Advanced Micro Devices, Intuit, Micron Technology, ASML and Zoom.

There are also plenty of companies that aren’t classified as information technology as their ‘sector’, but they do use world-leading technology within the business including Costco, Starbucks, Booking Holdings, Intuitive Surgical, JD.com, MercadoLibre, Activision Blizzard, Baidu, Mondelez and Moderna.

The returns of the ETF have been consistently strong since inception in May 2015, returning a net of 21.25% per annum. Over the last three years, the return has been 25.7% per annum.

Those returns from the ASX tech share include the annual management fee of 0.48% per annum.

Kogan.com Ltd (ASX: KGN)

Kogan.com is an e-commerce business where a large number of products and services are sold. TVs, phones, appliances, drones, clothes, furniture and so on can be bought on the website. It also sells services like mobile plans, NBN internet, insurance and superannuation.

In the company’s FY21 half-year result, it reported that gross sales rose 97.4% to $638.2 million, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) went up 184.4% to $51.7 million and net profit after tax (NPAT) jumped 164.2% to $23.6 million.

The ASX tech share said that it’s going to keep investing in its logistics network, speed of delivery, range expansion and improved competition on the platform to drive even better experiences for its customers.

Kogan.com founder and CEO Ruslan Kogan said:

The rapidly expanding network effect at Kogan.com means that as we attract more customers, we’re able to make the products and services they need even more affordable and accessible. I love hearing feedback from customers that have shopped with us many times over our 15 year journey about how the experience keeps getting better and better – this is what makes our team jump out of bed in the morning. The investments we’re making into Kogan.com today are to ensure that we can continue to delight millions of customers in more and more ways.

The company continues to expand its total addressable market by adding new product lines and the Kogan Marketplace keeps increasing its number of sellers. The Mighty Ape acquisition also increases the potential growth for Kogan.com.

January 2021 saw gross sales growth of 45% year on year, gross profit went up 102% and adjusted EBITDA rose 90%.

The Kogan.com share price is valued at 19x FY23’s estimated earnings according to Commsec.

More reading

• 2 tech ETFs for ASX investors to buy after the market selloff
• 2 ASX growth shares to buy in March 2021
• Why this ASX tech ETF is in the buy zone
• Why Afterpay, Kogan, Orica, & Service Stream shares are crashing lower
• Growth outlook fails to save the Aristocrat share price today

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS and Kogan.com ltd. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS and Kogan.com 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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.

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

Adore Beauty Group Ltd (ASX: ABY)

According to a note out of UBS, its analysts have upgraded this online beauty retailer’s shares to a buy rating with a $6.20 price target. The broker made the move following the release of a strong half year result by Adore Beauty last week. UBS was pleased with its gross margin expansion, which was driven by strong customer growth and retention. Looking ahead, while it acknowledges that the company has benefited greatly from the shift online during the pandemic, it believes it remains well positioned for growth even when COVID passes. The Adore Beauty share price ended the week at $5.40.

Goodman Group (ASX: GMG)

A note out of Credit Suisse reveals that its analysts have upgraded this integrated property company’s shares to an outperform rating with a price target of $19.62. This broker made the move in response to the release of Goodman’s half year results last week. It was pleased with its stronger than expected performance. And while it suspected that the company might upgrade its guidance, the upgrade was larger than it forecast. The Goodman share price was fetching $16.56 at the end of the week.

Qantas Airways Limited (ASX: QAN)

Analysts at Morgan Stanley have retained their overweight rating but trimmed their price target on this airline operator’s shares to $5.90. According to the note, Qantas posted a large half year loss as expected. And while it is expecting a sizeable full year loss as well, it believes Qantas will return to profit next year. In addition to this, it believes the company will come out of the other end of the pandemic in a stronger position.  The Qantas share price ended the week at $5.00.

More reading

• Is the Qantas (ASX:QAN) share price great value?
• ASX 200 rises 0.8%, A2 Milk sinks, Zip drops
• Air New Zealand (ASX:AIZ) share price flies after earnings devastated
• Qantas (ASX:QAN) share price on watch after $1.1 billion loss
• 2 exciting mid cap ASX shares to buy and hold

Motley Fool contributor James Mickleboro 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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Are you fed up with the low interest rates on offer with savings accounts and term deposits? Then you might want to consider putting your money to work in the share market instead.

The Australian share market is home to a good number of dividend shares that provide investors with generous yields.

One of those is Australia and New Zealand Banking GrpLtd (ASX: ANZ).

Why consider buying ANZ shares?

Earlier this month the bank released its first quarter update and revealed a huge improvement in trading conditions.

For the three months ended 31 December, ANZ reported unaudited cash earnings from continuing operations of $1,810 million. This was an impressive 54% jump on the average of the final two quarters of FY 2020. Management advised that this was driven partly by improvements in its net interest margin and flat operating costs.

In addition to this, the bank unveiled a COVID-19 collective provision release of $173 million. It also hinted that there could be more releases in the future depending on how economic conditions fare.

One broker that was particularly pleased was Morgans. In response to this result, it has put an add rating and $31.00 price target on its shares. It is also forecasting a $1.45 per share fully franked dividend in FY 2021.

Based on the current ANZ share price of $26.17, this represents a generous 5.5% dividend yield. It also implies potential upside of 18.5% over the next 12 months.

Looking to FY 2022, Morgans is forecasting a dividend of $1.61, which equates to an even more attractive 6.1% dividend yield.

Who else likes ANZ?

Morgans isn’t alone with its positive view on ANZ Bank.

Last week UBS and Credit Suisse retained their buy and outperform ratings and lifted their respective price targets on its shares to $28.50 and $29.50.

The latter is forecasting an even greater dividend of $1.48 per share in FY 2021.

More reading

• Leading brokers name 3 ASX shares to buy today
• ASX 200 Weekly Wrap: ASX lower despite bumper dividends
• Is the ANZ (ASX:ANZ) share price a buy?
• 2 of the best ASX 200 results from last week
• Why the Ainsworth (ASX:AGI) share price surged 15% today

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

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

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

A2 Milk Company Ltd (ASX: A2M)

According to a note out of Citi, its analysts have retained their sell rating and cut the price target on this infant formula company’s shares to $7.15. The broker made the move following the release of a2 Milk Company’s disappointing half year results. Citi has reduced its estimates materially over the coming years to reflect the demand issues it is facing in the daigou channel and margin pressures across the business. The a2 Milk Company share price ended the week at $8.99.

Appen Ltd (ASX: APX)

A note out of Macquarie reveals that its analysts have retained their underperform rating and cut the price target on this artificial intelligence data services company’s shares to $16.00. According to the note, the broker wasn’t surprised that Appen fell short of expectations in FY 2020. Looking ahead, Macquarie has concerns that increased competition could weigh on pricing and lead to Appen falling short of expectations again. The Appen share price was fetching $16.69 at the end of last week.

InvoCare Limited (ASX: IVC)

Analysts at Macquarie also have retained their underperform rating and $9.30 price target on this funerals company’s shares. This follows the release of a mixed full year result last week. According to the note, InvoCare fell short of expectations in FY 2020 due to one-offs. And while the broker is expecting a better performance this year, it does have concerns that rising costs could offset this. In light of this and its current valuation, it sees no reason to change its rating. The InvoCare share price ended the week at $11.23.

More reading

• Do brokers think the A2 Milk (ASX:A2M) share price is a buy or sell?
• These were the worst performing ASX 200 shares last week
• Brokers name 3 ASX shares to buy right now
• 3 ways A2 Milk (ASX:A2M) is planning a share price recovery
• ASX 200 rises 0.8%, A2 Milk sinks, Zip drops

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 Appen Ltd. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia has recommended InvoCare 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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Reporting season is now over. There were some ASX shares that were able to double their profit year on year.

It has been quite a stunning 12 months. COVID-19 has really hurt some industries like airlines and travel, whereas other companies have seen high levels of growth.

The below three businesses were all able to (at least) double their profit compared to the prior corresponding period:

Adairs Ltd (ASX: ADH)

The home furnishings business was able to report that it delivered record sales and profitability despite 43 Melbourne stores being closed for half the period. Sales and underlying earnings before interest and tax (EBIT) exceeded the December 2020 guidance after adjusting for the $6.1 million repayment of the jobkeeper wage subsidy.

The ASX share showed that group sales increased by 34.8% to $243 million, with group online sales increasing to $90.2 million, representing 37.1% of overall sales. Mocka sales, which are 100% online, grew 44.4% and Adairs online sales went up 95.2%.

Not only did sales grow quickly, but the gross margin improved by 500 basis points, which helped the underlying group earnings before interest and tax (EBIT) grow by 166% to $60.2 million.

Statutory net profit after tax (NPAT) rose 233.4% to $43.9 million.

Nick Scali Limited (ASX: NCK)

The furniture retailer ASX share also saw strong levels of growth in the first half of FY21.

It reported that sales revenue went up by 24.4% to $171.1 million. The gross profit margin improved by 180 basis points to 64%.

Nick Scali reported that its profit margins improved by a very large amount. Both the EBITDA and EBIT margins increased by 1,270 basis points, to 35.2% and 33.6% respectively.

This helped the ASX share grow its underlying net profit after tax by 99.5% to $40.5 million. The operating cash flow before interest and tax went up 222.3% to $53.5 million.

Nick Scali said that the sales order growth for the group in January 2021 was up 47% compared to the same period last year, representing the largest month of written sales orders in the company’s history. January is traditionally the company’s largest trading month and the sales order bank at the end of January was at an all-time high (which was a further increase on December 2020).

Costa Group Holdings Ltd (ASX: CGC)

The horticultural business is the third ASX share in this article that managed to (at least) double its profit.

Costa said that in 2020 it recovered from drought challenges. The international segment performance was “well up” on the previous year. The Australian category saw sustained momentum through the second half of 2020, which drove earnings. Management pointed to the balance sheet strength and strong cashflow position, which highlights resilience.

The food business generated revenue of $1.16 billion for 2020, which was up 11.2%. Underlying EBITDA grew by 47.2% to $144.8 million. Underlying net profit after tax went up by 108.4% to $59.4 million.

In terms of its outlook, Costa said that demand and pricing across produce categories generally remains strong in 2021. Management said that there is continued focus on its competitive advantages in yield, geographical spread, quality and cost of production.

More reading

• These were the best performing ASX 200 shares last week
• These ASX retail shares are smashing sales expectations
• Leading broker tips Costa (ASX:CGC) share price to rocket higher
• Why these ASX shares just raced to 52-week highs or better
• ASX 200 drops 0.2%, Costa soars, BOQ is buying ME Bank

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. The Motley Fool Australia has recommended ADAIRS 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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There are a number of quality exchange-traded funds (ETFs) that are worth thinking about as long-term investments.

ETFs can be an easy way to get exposure to a large number of different businesses in a single investment, giving useful diversification.

Here are two ETFs that may be worth considering:

iShares S&P 500 ETF (ASX: IVV)

Berkshire Hathaway’s Warren Buffett himself has said that investors would do well by simply investing in a S&P 500 fund.

The S&P 500 is an index of 500 of the biggest and most profitable businesses that are listed in the US.

It’s an index that has been around for decades and has proven can generate good investment returns. Many US businesses are global leaders in their respective industries.

Looking at the ETF’s current top holdings, its biggest 10 exposures right now are: Apple, Microsoft, Amazon, Alphabet, Facebook, Tesla, Berkshire Hathaway, JP Morgan Chase, Johnson & Johnson and Visa.

But it’s not like the global quality stops there. As you look through the list you’ll see more and more recognisable names like: Walt Disney, Nvidia, Proctor & Gamble, Mastercard, PayPal, Home Depot, Bank of America, Intel, Netflix, Adobe, Salesforce, Broadcom, Walmart and Nike.

The performance of this ETF has outperformed the ASX over the last decade, with a net return per annum of 16.4%.

One of the key selling points of this ETF is that it has an annual management fee cost of just 0.04%. which means that nearly all of the gross returns made by this ETF stay in the hands of the investor.

According to Blackrock, the ETF currently has a price / earnings ratio of almost 29 times.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

This is an ETF that focuses on high quality businesses with wide economic moats, or sustainable competitive advantages, according to Morningstar’s equity research team.

A business only makes it into the portfolio of this ETF if, after a rigorous equity research process, the Morningstar analysts believe that the target company is trading at an attractive value compared to Morningstar’s estimate of fair value.

The ETF has a diverse portfolio, with five different sectors having a weighting of more than 10%. Those sectors are: healthcare, IT, financials, industrials and consumer staples.

Looking at the actual holdings, it has almost 50 positions right now. In order of weighting, the largest positions are: Charles Schwab, John Wiley & Sons, Wells Fargo, Corteva, Bank of America, US Bancorp, Cheniere Energy, Intel, Blackbaud, Aspen Technology, Zimmer Biomet and Constellation Brands.

VanEck Vectors Morningstar Wide Moat ETF only has a management fee of 0.49%, which is considerably lower than many other global fund managers based in Australia.

The performance of the ETF has been strong over the last five years, with a net return per annum of 17.1%, which is better than the S&P 500 return of 14.4% per annum.

More reading

• 2 top ETFs to buy and hold
• 2 high quality ETFs for ASX investors to buy in February
• Got money to invest? Here are 3 ASX shares to buy
• Got cash to invest? Here are 3 ASX shares to buy
• 2 top ETFs to buy next week

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended iShares Trust – iShares Core S&P 500 ETF and VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’re looking to boost your portfolio with exchange traded funds (ETFs), then you might want to consider the two listed below.

Due to their focus on the tech sector, they have recently pulled back from their all-time highs. This could make it a good time to consider them as long term investments:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

If you’re interested in gaining exposure to the rapidly growing Asian tech sector, then you can achieve this with the BetaShares Asia Technology Tigers ETF.

Among the fund’s holdings you will find the likes of Alibaba, Baidu, JD.com, Meituan Dianping, Samsung, Tencent, and Pinduoduo.

My first focus will be on Pinduoduo. It is an e-commerce platform that offers a wide range of products from daily groceries to home appliances. Its platform connects distributors with consumers directly through an interactive shopping experience, allowing shoppers to team up to buy items at lower prices. At the end of September, it was serving 731 million active buyers.

Another company included in the fund is Alibaba. It is the Amazon of China and at the end of September had 757 million annual active customers. Across its Alibaba, Taobao, and Tmall brands, the company is estimated to control a sizeable 56% of China’s e-commerce market. It also has a presence offline with a growing network of grocery stores, hypermarkets, and department stores.

A third company in the fund is Meituan Dianping. Its apps connect consumers with local businesses for food deliveries, hotel bookings, movie tickets, and many other services. During the second quarter of FY 2020, the company was making 24.5 million food deliveries per day. Meituan had 476.5 million users at the end of September.

Over the last 12 months, the BetaShares Asia Technology Tigers ETF generated a return of 64% for investors.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF aims to track the performance of the NASDAQ-100 Index. The NASDAQ-100 comprises 100 of the largest non-financial companies listed on the world-famous NASDAQ market. This includes many companies that are at the forefront of the new economy.

Among its top ten portfolio holdings are Google parent Alphabet, Amazon, Apple, Facebook, Intel, Microsoft, Netflix, Nvidia, PayPal, and Tesla. But it doesn’t stop there, there is also a whole range of exciting companies such as Booking Holdings, Intuit, and MercadoLibre in the fund. 

MercadoLibre is an operator of ecommerce platforms in the Latin America market. It is best known for the MercadoLibre Marketplace, which is an automated ecommerce platform that enables businesses and individuals to list merchandise and conduct sales and purchases online. It is often referred to as Latin America’s Amazon.

The company also has MercadoPago, which is a financial technology solution platform facilitating transactions on and off its marketplaces (much like PayPal). And finally, there’s the MercadoShops solution, which is Latin America’s answer to Shopify.

Over the last 12 months, the Betashares Nasdaq 100 ETF has generated a return of 20%.

More reading

• Why this ASX tech ETF is in the buy zone
• 2 excellent ETFs for ASX investors to buy now
• 2 of the best ETFs for ASX investors to buy today
• 2 great ASX growth shares to buy
• Nasdaq at record high! Here’s what it means for the ASX 200

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 BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS. 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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