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Are you looking for investment options in the tech space? Then look no further! Listed below are two top ASX tech shares which have been tipped as buys.

They are as follows:

Altium Limited (ASX: ALU)

Inside almost all electronic devices you will find a printed circuit board (PCB). These circuit boards are highly complex and integral to the operation of these devices. As such, specialist software is required to design and manufacture them.

Altium is a leading PCB design software company which is aiming to dominate its industry this decade with its Altium Designer and cloud-based Altium 365 platforms. It has started strongly and is making big strides towards achieving this goal by FY 2026.

One broker that is confident on its prospects is Morgan Stanley. Its analysts have an overweight rating and $40.00 price target on the company’s shares.

Appen Ltd (ASX: APX)

Artificial intelligence (AI) is revolutionising our lives, often without us knowing. While the likes of Apple’s Siri and Amazon’s Alexa are clear and obvious examples of AI, there are other more subtle uses that impact our everyday lives. This includes shopping recommendations, facial recognition, healthcare diagnoses, your Uber ride, and social media feeds.

In order for AI models to work successfully, they need to be trained. This is where Appen comes in. Through its team of over one million skilled contractors, the company provides or prepares the training data for AI models. A testament to the quality of its service is its customer base. This includes Amazon, Facebook, Google, and Microsoft.

COVID-19 has put a dampener on its growth this year, but management expects to bounce back strongly in FY 2021. As do the analysts at UBS. Last week they retained their buy rating and $44.00 price target on its shares following its trading update.

More reading

• ASX 200 Weekly Wrap: ASX 200 hits a 6! Thank iron ore
• 10 highly rated ASX shares to buy in 2021
• Top brokers name 3 ASX shares to buy next week
• Westpac (ASX:WBC) tips Australian dollar to hit 80 US cents in 2021
• 3 ASX growth shares to add to your portfolio in 2021

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

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The S&P/ASX 200 Index (ASX: XJO) has just hit a 6! Cricket metaphors aside, the ASX 200 has just notched up its sixth straight week of gains, leaving it just below the level at which it started the year. It’s worth saying that even though last week kept this streak alive, it was only by a wicket (sorry!).

After a strong start to the week, losses later on pulled the ASX back to Earth, and resulted in the index notching up a week-to-week gain of just 0.1%. Even so, it doesn’t matter if you win by an inch or a mile, to quote a great racing film, and at the same time this week, we will see if the streak runs (I’ll stop now) to 7.

The iron price pays

We can probably thank the resources sector for the ASX’s week in the green, specifically those companies that mine iron. Iron ore had another incredible week, topping US$150 per tonne (and reaching as high as US$156) for the first time since 2013. This saw the share prices of iron ore miners go ballistic. Fortescue Metals Group Limited (ASX: FMG) was the headline act in this show, with the Fortescue share price reaching a new, all-time high of $23.27 on Friday. That share price means Fortescue is now up more than 112% year to date, and up an incredible 1,226% over the past 5 years.

It also means that Fortescue’s market position has never been stronger. With a current market capitalisation of more than $70 billion, Fortescue is now larger than Australia and New Zealand Banking Group Ltd (ASX: ANZ). That would have been an almost inconceivable proposition for most ASX investors to imagine even just a few months ago.

It wasn’t just Fortescue basking in the reflection of the surging iron ore price though. The ‘Big Australian’ BHP Group Ltd (ASX: BHP) is also at a 9-year high, with its share price having hit a peak of $43.30 on Friday. It’s a similar story with Rio Tinto Limited (ASX: RIO). The Rio share price hit a post-GFC high of $117.12 on Friday.

Oil and vaccines

But it’s not just iron ore companies feeling the love from commodity investors. Crude oil is also trading at (a less impressive) post-March high after hitting US$50 a barrel last week. As a result, we saw ASX oil drillers like Woodside Petroleum Limited (ASX: WPL) continue their recent run of performance as well.

One ASX 200 blue chip share not feeling the love last week though was CSL Limited (ASX: CSL). The CSL share price lost almost 5% of its value between Wednesday’s open and Friday’s close. The catalyst? It unfortunately became clear the coronavirus vaccine the company had been working on in conjunction with the University of Queensland would not be progressing to Phase 2 or 3 clinical trials. CSL shares closed at $291.53 on Friday.

How did the markets end the week?

It was a haphazard week on the ASX 200 last week. The Index started off at 6,634.3 points and finished up at 6,642.6 points to eke out a week-to-week gain of 0.1% as we discussed earlier.

Monday kicked things off with a 0.6% gain, which was backed up on Tuesday with another 0.2% rise. Wednesday added another 0.6%, but Thursday and Friday saw sentiment turn, delivering 0.7% and 0.6% losses respectively.

Meanwhile, the All Ordinaries Index (ASX: XAO) also managed to squeak out a gain for the week, rising from 6,874.8 points to 6,886.4 points, a week-to-week gain of 0.3%.

Which ASX 200 shares were the biggest winners and losers?

Time now for our Foolish gossip page. So fetch the tea while we start with the worst-performing ASX 200 shares from last week:

Worst ASX 200 losers	% loss for the week
Appen Ltd (ASX: APX)	(14.5%)
IDP Education Ltd (ASX: IEL)	(8.9%)
Webjet Limited (ASX: WEB)	(8.7%)
Pendal Group Ltd (ASX: PDL)	(8.2%)

WAAAX growth share Appen led the losses last week and receives the wooden spoon. Investors were swiping left on Appen after the company downgraded its guidance, citing lockdowns over in the United States and a stronger Aussie dollar.

Higher education company IDP was also in the firing line last week, with a near 9% drop. This could be being driven by concerns over the ongoing diplomatic spat between Australia and China that is spilling into trade. Chinese international students are a significant customer base of IDP Education.

Meanwhile, Webjet and Pendal both fell for no obvious reason. However, both companies enjoyed strong gains over November, which might indicate some investors were taking profits off the table.

With the losers out of the way, let’s now look at some of last week’s ASX 200 winners:

Best ASX 200 gainers	% gain for the week
IGO Ltd (ASX: IGO)	14.77%
Link Administration Holdings Ltd (ASX: LNK)	13.57%
Fortescue Metals Group Limited (ASX: FMG)	13.52%
Viva Energy Group Ltd (ASX: VEA)	11.81%

Last week’s winning share was nickel miner IGO. IGO has recently completed a share purchase plan, which is intended to fund a new 49% stake in Tianqi Lithium Energy Australia. Investors have seemingly endorsed this with enthusiasm.

Meanwhile, Link Administration has been the subject of a second takeover offer. This time it’s from SS&C Technology, which values Link at $5.85 a share. No wonder investors are chasing the Link share price towards this mark.

We’ve already discussed Fortescue’s remarkable week, while Viva Energy was in investors’ sights after a positive update over its Geelong Energy hub.

What does this week look like for the ASX 200?

There’s a couple of things to look out for this week on the ASX 200. Firstly is the Index’s quarterly rebalance. This is set to take place on 21 December, and will result in Kogan.com Ltd (ASX: KGN) and Reece Ltd (ASX: REH) joining the club. Even though the rebalance date is not this week, the index funds that track the ASX 200 are very large, and have to make this pivot slowly (kind of like steering a large ship). As such, we could see some funny things happening with the affected shares’ pricing this week.

Additionally, ASX banks ANZ and National Australia Bank Ltd (ASX: NAB) are both holding their annual general meetings this week, on Wednesday and Friday respectively. It will be interesting to see what comes out of these, especially if it involves dividend news.

Before we go, here is a look at the major ASX 200 blue chip shares as we start on another week (make Fortescue feel welcome):

More reading

• These are the 10 most shorted shares on the ASX
• 2 ASX dividend shares to buy this week
• Quarterly rebalance: Afterpay (ASX:APT) added to ASX 20, Kogan (ASX:KGN) joins the ASX 200
• 5 things to watch on the ASX 200 on Monday
• 10 highly rated ASX shares to buy in 2021

Sebastian Bowen owns shares of National Australia Bank Limited, Newcrest Mining Limited, and Telstra Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd, CSL Ltd., Idp Education Pty Ltd, and Link Administration Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited, Telstra Limited, and Webjet Ltd. The Motley Fool Australia owns shares of COLESGROUP DEF SET, Transurban Group, Wesfarmers Limited, and Woolworths Limited. The Motley Fool Australia has recommended Link Administration Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post ASX 200 Weekly Wrap: ASX 200 hits a 6! Thank iron ore appeared first on The Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) will welcome 2 new companies next week while kicking out 3.

The quarterly rebalance will take place for the start of trade Monday 21 December.

The share price of the 2 additions will be keenly watched that day as index funds will be forced to buy them up to synchronise with the ASX 200.

After a spectacular rise in its share price in 2020, Kogan.com Ltd (ASX: KGN) is a high-profile entrant.

The retailer has been a massive beneficiary of the COVID-19 pandemic and the resultant consumer shift to online shopping.

The Kogan share price started the year at $7.47 but had risen to $18.16 as of close of trade Friday. This represents a 143% climb, and that’s even after a correction from its dizzy high of $25.57 a couple of months ago.

Even with the effects of coronavirus starting to fade and e-commerce shares starting to rotate out of favour, some analysts are still bullish.

Kogan’s acquisition of Kiwi merchant Mighty Ape last week prompted Credit Suisse to whack a price target of $20.60 on the e-tailer’s shares.

Even a $350,000 fine for misleading conduct on the same day could not dampen investor enthusiasm.

Perhaps a less glamorous entrant to the ASX 200 is Reece Ltd (ASX: REH).

Reece is a more traditional retailer, with showrooms all over Australia selling bathroom and plumbing supplies.

The Reece share price has also fared well, starting the year at $11.38 but is now sitting at $14.96, which is a 31% increase.

With Australians performing more renovations while forced to stay at home may have had an effect, the company’s full year results in August also showed its business in the United States was booming.

Reece now has a market capitalisation of $9.66 billion while Kogan is $1.92 billion.

Why are there 3 removed and 2 added?

Despite only 2 additions, there are 3 removals this quarter because miner Iluka Resources Limited (ASX: ILU) demerged its royalty arm into Deterra Royalties Ltd (ASX: DRR). Both companies were retained in the ASX 200, meaning there was an excess member.

The 3 companies that will be making way for these rising stars are Avita Therapeutics Inc (ASX: AVH), Cooper Energy Ltd (ASX: COE) and Western Areas Ltd (ASX: WSA).

The share prices of this trio will also be on watch on 21 December, as index funds will be compelled to sell them off to remain faithful to the index.

More reading

• These are the 10 most shorted shares on the ASX
• Quarterly rebalance: Afterpay (ASX:APT) added to ASX 20, Kogan (ASX:KGN) joins the ASX 200
• 5 things to watch on the ASX 200 on Monday
• 10 highly rated ASX shares to buy in 2021
• 5 things to watch on the ASX 200 next week

Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited and Kogan.com ltd. The Motley Fool Australia has recommended Avita Medical Limited 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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Every Monday I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

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

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

• Webjet Limited (ASX: WEB) continues to be the most shorted share on the ASX by some distance. The online travel agent has short interest of 15%, which is flat week on week. Although its outlook is improving, short sellers appear to believe its shares are severely overvalued.
• Western Areas Ltd (ASX: WSA) has seen its short interest reduce slightly to 11.4%. This nickel producer’s shares crashed lower recently after management downgraded its production guidance. However, they have bounced back now, much to the dismay of short sellers.
• Tassal Group Limited (ASX: TGR) has seen its short interest rise to 9.3%. Short sellers have been rapidly increasing their positions in this salmon producer. There are concerns that salmon could be another item that China slaps tariffs on.
• Myer Holdings Ltd (ASX: MYR) has seen its short interest jump sharply to 9.1%. Short sellers have been increasing their interest in this department store operator amid concerns it is being left behind due to changing consumer habits.
• Speedcast International Ltd (ASX: SDA) still has short interest of 9%. The communications satellite technology provider’s shares have been suspended for almost the entire year as it undertakes a recapitalisation.
• Flight Centre Travel Group Ltd (ASX: FLT) is back in the top ten with short interest of 8.9%. As with Webjet, things are looking better for the travel agent, but short sellers appear to believe the market is expecting too much.
• Metcash Limited (ASX: MTS) is also back in the top ten with 8.7% of its shares held short. Though, with the wholesale distributor’s shares hitting a 52-week high last week, they may be regretting this one.
• InvoCare Limited (ASX: IVC) has short interest of 8.5%, which is down slightly week on week. There are concerns that this funerals company has been losing market share, which could drag on its earnings.
• AVITA Therapeutics Inc (ASX: AVH) has 8.3% of its shares held short, which is up sharply week on week. The regenerative medicine company’s shares will be dumped out of the ASX 200 at the December quarterly rebalance. Its sales have fallen heavily this year because of COVID-19.
• Inghams Group Ltd (ASX: ING) has 8.2% of its shares held short, which is flat week on week. Although the poultry company’s performance has improved in FY 2021, some short sellers appear to believe it isn’t over the worst of its issues just yet.

More reading

• Quarterly rebalance: Afterpay (ASX:APT) added to ASX 20, Kogan (ASX:KGN) joins the ASX 200
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 next week
• These were the worst performing ASX 200 shares last week
• This is when ASX airport shares will take off

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 Avita Medical Limited. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Avita Medical Limited, Flight Centre Travel Group Limited, and 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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The Robinhood smartphone app has been both praised for making investing accessible to the average folk and criticised for triggering addiction.

But one undisputed legacy is that it has made $0 brokerage standard in the United States. 

When the app launched in 2013, first-time investors absolutely loved the idea of not paying a fee for every small transaction. So after just 7 years, more than 13 million users have flocked to Robinhood.

Its popularity forced the older platforms to follow. Even most of the online brokers operated by the big 100-year-old companies now offer a free option.

But what about Australia? We’ve not yet seen a ‘zero fee’ platform for trading shares on the ASX.

Like so many financial and cultural trends, will it head across the Pacific to our shores?

Unfortunately the short answer is ‘no’.

ASX’s monopoly means it can charge whatever

The main reason ‘no fee’ can never happen in Australia is that ASX Ltd (ASX: ASX) runs an effective monopoly in this country.

Stake is a trading platform especially designed for Australians to invest in American markets.

The company’s chief executive Matt Leibowitz told The Motley Fool that there are 13 exchanges in the US, meaning they are all competing for liquidity – or “flow”, in industry parlance.

“So what they do to provide liquidity is they actually provide a rebate,” he said.

“So if you make liquidity you get paid, say 10 cents. If you take liquidity, you pay 15.”

The exchange thus makes money from that 5 cent difference. 

This rebate mechanism, called ‘payment for order flow’, is how each of the exchanges – like NASDAQ or NYSE – try to lure business away from its rivals.

And online broking platforms can afford to execute customers’ trades for free by living off the PFOF rebate.

But the ASX has no such need to show such generosity.

“In Australia you’ve got a monopoly… The ASX is actually charging a per-trade fee, regardless if you make or take liquidity,” Leibowitz said.

The ASX knows that if you want to buy or sell shares, it’s the only game in town.

ASX’s monopoly has other impacts too

The ASX infamously had a systems outage last month when the entire trading day was cancelled after just 24 minutes of operation.

The Australian Investments and Securities Commission was unusually stinging in its criticism of the outage, even questioning the exchange’s fitness to hold its market licence.

“Market licensees are required to operate a market that, to the extent reasonably practicable, is fair, orderly and transparent, and to have sufficient resources (financial, technological and human) to operate the market, including for any outsourced services,” the corporate watchdog stated at the time.

“Well-functioning financial market infrastructure is critical to the integrity and reputation of the Australian equity market and the trust and confidence investors have in it.”

Some market participants publicly stated ASX has no incentive to properly fund its systems because it doesn’t have any competitive pressure.

The same criticism was made in October when the new website crashed, leaving users unable to view company announcements.

In Britain, listed companies may choose from a range of providers to distribute their market announcements and meet their disclosure obligations. These suppliers include news agencies.

But all ASX-listed companies must go through the ASX to post announcements.

OpenMarkets chief Ivan Tchourilov told the Australian Financial Review at the time the situation was not serving the best interests of the market.

“The industry is concerned that ASX has too much power to dictate play and there isn’t much of an opportunity for competitors to create a diverse environment that will ultimately benefit customers.”

More reading

• Top brokers name 3 ASX shares to sell next week
• Will ASX kick out companies that don’t have board diversity?
• Meet the most unpopular ASX large cap stock according to analysts
• Why ASX, Kogan, Myer, & Northern Star shares are dropping lower
• ASX 200 Weekly Wrap: ASX continues to climb, despite outage

Motley Fool contributor Tony Yoo 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.

The post Why zero-fee apps will never exist for ASX shares appeared first on The Motley Fool Australia.

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If you’re looking to add some dividend shares to your portfolio, then the two listed below might be ones to consider.

Here’s what you need to know about them:

National Storage REIT (ASX: NSR)

National Storage is one of the region’s leading self-storage operators. It tailors self-storage solutions to residential and commercial customers across Australia and New Zealand.

At present, the company operates approximately 190 storage centres across the region. While this sounds like a large number, management believes there is still significant room to grow. In fact, it has completed eight acquisitions totalling $139 million since the end of FY 2020. In addition to this, management advised that its forward-looking acquisition pipeline remains strong and it is has a number of development projects.

According to a note out of Ord Minnett, its analysts have an accumulate rating and $2.05 price target on its shares. The broker is forecasting an 8 cents per share dividend in FY 2021. This represents a 3.9% dividend yield.

Westpac Banking Corp (ASX: WBC)

If you don’t have exposure to the big four banks, then Westpac could be worth considering. While the banking sector has been having a very tough time in recent years, there are signs that it is now over the worst of its issues. This is thanks partly to the improving housing market, the relaxing of responsible lending rules, and the quicker than expected economic recovery from the pandemic.

Analysts at Macquarie believe now could be the time to invest. Earlier this month they put an outperform rating and $21.50 price target on the bank’s shares. They are also forecasting a 70 cents per share dividend in FY 2021 and an 85 cents per share dividend in FY 2022. This represents fully franked 3.5% and 4.2% dividend yields, respectively, over the next two years.

More reading

• These ASX dividend shares will help you overcome low interest rates
• Westpac (ASX:WBC) tips Australian dollar to hit 80 US cents in 2021
• ASX 200 down 0.3%: CSL sinks, Zip’s Facebook deal, IGO rockets
• Westpac (ASX:WBC) share price lower on AGM update
• 2 ASX dividend shares with attractive yields

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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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A number of shares could be on the move on Monday after S&P Dow Jones Indices announced its quarterly rebalance of the S&P/ASX Indices.

This will see a number of popular shares added and dumped out of our major indices.

Here is a summary of the change that will be effective at the open of trading on December 21:

ASX 20.

The ASX 20 is home to the 20 largest listed companies on the Australian share market and will welcome payments company Afterpay Ltd (ASX: APT). The buy now pay later provider will take the place of insurance giant Insurance Australia Group Ltd (ASX: IAG).

ASX 50.

Afterpay is also being added to the ASX 50 at the rebalance and will be joined by cloud-based business and accounting software provider Xero Limited (ASX: XRO). They will be replacing energy producer Oil Search Ltd (ASX: OSH) and retail property company Vicinity Centres (ASX: VCX).

ASX 100.

The ASX 100 will welcome student placement company IDP Education Ltd (ASX: IEL), mining and mining services company Mineral Resources Limited (ASX: MIN), and plumbing parts company Reece Ltd (ASX: REH) later this month. They join at the expense of Flight Centre Travel Group Ltd (ASX: FLT), Iluka Resources Limited (ASX: ILU), and NIB Holdings Limited (ASX: NHF).

ASX 200.

Finally, the ASX 200 will be welcoming online retailer Kogan.com Ltd (ASX: KGN) and plumbing parts company Reece Ltd (ASX: REH) at the open of trading on December 21. They will actually be replacing three shares in the index. This is due to the ASX 200 currently containing 201 shares following the Deterra Royalties Ltd (ASX: DRR) demerger from Iluka. Leaving the benchmark index are Avita Therapeutics Inc (ASX: AVH), Cooper Energy Ltd (ASX: COE), and Western Areas Ltd (ASX: WSA).

What now?

As fund managers often have strict mandates in relation to the shares they can buy, this news could give certain shares a boost and put pressure on others.

In addition to this, index-tracking funds will be needing to buy the additions and dump the removed shares from each respective index in the near future. This could also add pressure to the buy and sell sides, depending on the share.

More reading

• 5 things to watch on the ASX 200 on Monday
• 10 highly rated ASX shares to buy in 2021
• 5 ASX shares rated as buys by top fundie
• 5 things to watch on the ASX 200 next week
• These were the best performing ASX 200 shares last week

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 Avita Medical Limited, Idp Education Pty Ltd, and Xero. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Avita Medical Limited, Flight Centre Travel Group Limited, and NIB Holdings 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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On Friday the S&P/ASX 200 Index (ASX: XJO) finished a positive week on a disappointing note. The benchmark index fell 0.6% to 6,642.6 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX futures pointing slightly lower.

It looks set to be a subdued start to the week for the Australian share market. According to the latest SPI futures, the ASX 200 is poised to open the week a single point lower this morning. This follows a mixed end to the week on Wall Street. On Friday night the Dow Jones rose 0.15%, the S&P 500 fell 0.15%, and the Nasdaq dropped 0.2%.

ASX 200 new additions.

S&P Dow Jones Indices has announced its quarterly rebalance of the S&P/ASX Indices. The ASX 200 will be welcoming online retailer Kogan.com Ltd (ASX: KGN) and plumbing parts company Reece Ltd (ASX: REH) at the open of trading on December 21. Heading out of the index are three shares, due to the index currently having 201 shares following a demerger. These are Avita Therapeutics Inc (ASX: AVH), Cooper Energy Ltd (ASX: COE), and Western Areas Ltd (ASX: WSA).

Oil prices soften.

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could come under pressure today after oil prices finished the week in the red. According to Bloomberg, the WTI crude oil price fell 0.45% to US$46.57 a barrel and the Brent crude oil price dropped 0.55% to US$49.97 a barrel. Despite this, oil prices were able to record their sixth successive weekly gain.

Gold price rises.

Gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch today after the spot gold price pushed higher on Friday. According to CNBC, the spot gold price rose 0.35% lower to US$1,843.60 an ounce. COVID-19 stimulus optimism in the US lifted the precious metal.

US approves Pfizer COVID-19 vaccine.

On Friday night the US FDA gave its authorisation for the emergency use of Pfizer’s COVID-19 vaccine. According to CNBC, the FDA’s emergency use authorisation will allow the federal government’s distribution of the potentially lifesaving vaccine across the country immediately. The government has already distributed 2.9 million doses of the vaccine, with the first jabs expected later today.

More reading

• 10 highly rated ASX shares to buy in 2021
• Top brokers name 3 ASX shares to sell next week
• 5 things to watch on the ASX 200 next week
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week

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 Avita Medical Limited and Kogan.com ltd. The Motley Fool Australia has recommended Avita Medical Limited 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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The 2020 stock market crash has left a wide range of cheap stocks across many sectors. Although they could yet fall further in the short run due to ongoing political and economic risks, they may deliver strong recoveries in the long run.

Such opportunities have historically been relatively rare. And, with major stimulus programs in place across many economies and the prospect of fewer lockdown restrictions in 2021, the outlook for high-quality companies that trade at low prices could be relatively positive.

The 2020 stock market crash: a rare event?

This year’s stock market crash was a relatively rare event. In fact, many of today’s cheap stocks have not traded at their current prices in over a decade. The last time they did was in the global financial crisis, when major indexes such as the S&P 500 Index (INDEXSP: .INX) and FTSE 100 Index (FTSE: UKX) collapsed in value.

Prior to the global financial crisis, major bear markets have been relatively uncommon. For example, the dot com crisis included vast share price falls across global stock markets. And, while there have been many corrections and downturns in the past 20 years, this year’s stock market fall was among the most severe.

As such, an investor is likely to experience only a relatively small number of declines that are similar in size and severity to the 2020 stock market crash during their lifetime. Taking advantage of the cheap stocks they provide may mean greater scope for capital appreciation in the long run.

A unique opportunity to buy cheap stocks?

The 2020 stock market crash could be a unique opportunity to buy cheap stocks. That’s not because it has left many companies trading at low prices. Rather, the path to growth could be stronger and faster than has been the case following previous bear markets.

For example, investor sentiment could improve significantly if it becomes clear that the coronavirus pandemic will be successfully overcome. Furthermore, the amount of fiscal and monetary policy stimulus that has been announced may have a positive impact on asset prices over the coming years. As was the case after the global financial crisis, a loose monetary policy can have a very positive impact on global stock markets.

Of course, there is no guarantee of a fast-paced growth period for cheap shares after the stock market crash. A second downturn could take place in the short run. However, vast amounts of stimulus arguably represent a faster and stronger response to a market decline than has been the case in some previous downturns.

Focusing on high-quality cheap stocks

The stock market crash has highlighted the importance of buying high-quality companies. Therefore, rather than simply buying the cheapest stocks around, it may be prudent to consider the financial standing and competitive advantage of a business prior to purchase. This could lead to higher returns in a likely stock market recovery.

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Motley Fool contributor Peter Stephens has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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Exchange-traded funds (ETFs) have reportedly managed to maintain their popularity in 2020, despite this year being… full of surprises (and volatility) on the share market. There doesn’t appear to be much to indicate this trend won’t continue into 2021.

The 3 ETFs discussed below have all seen record inflows in 2020, and may prove just as popular next year. Here are some reasons why this might be the case:

Vanguard MSCI Index International Shares ETF (ASX: VGS)

This ETF from Vanguard is massive in scope. It holds 1,547 companies within it, which hail from most of the advanced economies of the world. Most of these holdings are from the United States (currently 68.2%), but Japan, The United Kingdom, France, Switzerland and Canada also feature. Its top holdings are mostly recognisable names like Apple Inc (NASDAQ: AAPL), Amazon.com Inc (NASDAQ: AMZN) and Nestle.

VGS has delivered some solid performance numbers, returning an average of 10.63% per annum over the past 5 years, and 12.3% since inception. Clearly, investors can’t get enough of the broad diversification this ETF brings to the table.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

This ETF from BetaShares is a little more concentrated. It holds 100 of the largest companies that list on the American tech-heavy Nasdaq exchange. You’ll also find Apple and Amazon here, as well as Tesla Inc (NASDAQ: TSLA), NVIDIA Corporation (NASDAQ: NVDA) and PayPal Holdings Inc (NASDAQ: PYPL).

Due to a high allocation to the ‘information technology’ sector (47.5%), this ETF is essentially a bet on the future of US tech, a bet that has paid off especially well over the past 10 years. NDQ has returned an average of 21.69% per annum since its inception in 2015, and 34.4% in the past year alone.

BetaShares Asian Technology Tigers ETF (ASX: ASIA)

Another tech-focused fund from BetaShares is our final ETF. ASIA can essentially be looked at as Asia’s answer to the US tech sector. It holds 50 of the largest tech companies in Asia (excluding Japan). According to BetaShares, “Asia is surpassing the West in terms of technological adoption… due to its younger, tech-savvy population”.

And this ETF offers a slice of that action. Its holdings are dominated by Chinese companies with 52.6% of the holdings, but Taiwan, South Korea, Hong Kong and India are also present.

You may or may not have heard of this funds’ top holdings in Samsung Electronics, Taiwan Semiconductor Manufacturing Co, Tencent Holdings, Alibaba Group, Baidu Inc and JD.com Inc. But these are all massive companies with popular products in Asia and abroad. ASIA’s recent performance has been extraordinary. It has returned an average of 32.4% since inception in 2018, including 61.18% over the past year alone.

More reading

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• 2 popular international ETFs for ASX investors to buy
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• 3 great ASX tech shares to buy
• 2 quality ETFs to buy for long-term investing

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Baidu and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon, Apple, Baidu, NVIDIA, PayPal Holdings, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS and recommends the following options: short January 2022 $1940 calls on Amazon, long January 2022 $1920 calls on Amazon, and long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended Amazon, Apple, BETANASDAQ ETF UNITS, NVIDIA, PayPal Holdings, 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 Bruce Jackson.

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