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The IGO Limited (ASX: IGO) share price has blasted up 18% early today as the miner returns to trade for the first time since Monday. The IGO share price is trading higher at $6.01 at the time of writing.

Why is the IGO share price rocketing up?

Shares in the Aussie company have been in a halt this week after unveiling a US$1.4 billion (A$1.9 billion) acquisition. IGO will acquire a 49% stake in Tianqi Lithium Energy Australia Pty Ltd from China-listed Tianqi Lithium Corporation.

IGO’s venture into lithium meant the company needed to raise some significant funds from shareholders. IGO announced a $766 million capital raise comprising an institutional entitlement offer and an institutional share placement.

IGO today announced the placement raised approximately A$446 million, while the entitlement offer raised $261 million. The offer price represented a 9.7% discount to IGO’s 7 December 2020 closing price of $5.095 per share.

The diversified mining and exploration company’s shares are set to return to trade after what has been a busy period. The IGO share price has slumped 17.3% lower in 2020 having started the year at $6.17 per share.

All eyes will be on the Aussie mining group’s shares after the bold strategic move announced earlier in the week.

What’s the deal with IGO’s acquisitions?

The $1.9 billion price tag will net IGO a 24.99% indirect interest in the Greenbushes Lithium Mining and Processing Operation (Greenbushes) and a 49% indirect interest in the Kwinana Lithium Hydroxide Plant (Kwinana).

This represents a bold push into the potentially lucrative lithium market with IGO tilting towards the sector for future growth.

The IGO share price has climbed 121.5% in the last 5 years with a current market capitalisation of $3.01 billion. Prior to the open, the mining group’s shares were yielding 2.16% p.a. with a 19.5 price to earnings (P/E) ratio.

Foolish takeaway

The IGO share price will be one to watch upon its return to trading today, particularly the case given a recent price target upgrade from leading broker, Jarden.

There are a number of other S&P/ASX 200 Index (ASX: XJO) shares on the move in early trade including CSL Limited (ASX: CSL) after the company scrapped further trials of a potential COVID-19 vaccine candidate this morning.

More reading

• Aussie dollar breaking to new 30-month high will boost these ASX stocks
• CSL (ASX:CSL) share price on watch after terminating COVID-19 vaccine trial
• Australian ETFs just smashed multiple records
• 5 things to watch on the ASX 200 on Friday
• ASX 200 drops on Thursday

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL 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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With the borders of most states and territories reopening and Victoria’s coronavirus outbreak now a thing of the past, the future is finally starting to look much rosier for all Australians. There is even reason to hope that there could be a solid rebound in domestic tourism this summer.

So, is it finally time to start investing in the tourism sector?

Shares in most ASX tourism companies have taken a substantial hit this year. And despite better local news over the last couple of months, most ASX tourism shares are still languishing at or near their 52-week lows.

Travel agent Flight Centre Travel Group Ltd (ASX: FLT) shed close to 70% of its value back in March and, despite a small rise over the last month or so, at $16.87 it is still well short of the 52-week high of $40.77 it reached prior to the COVID-19 crisis. Online travel site Webjet Limited (ASX: WEB) has fared more or less the same.

But at least one major broker is feeling bullish about Australia’s largest airline. Earlier in December, Goldman Sachs reiterated its buy rating for Qantas Airways Limited (ASX: QAN), and put a 12 month target of $7.05 on the company’s shares. That represents a significant 37% upside to the current Qantas share price of just $5.16.

What does Goldman like about Qantas shares?

Goldman Sachs released its note in response to a Qantas market update on 3 December 2020. In the update, Qantas stated that domestic demand was rebounding in response to border re-openings, with domestic flight capacity at 68% of pre-COVID levels for the month of December. As an indication of the strength of demand, Qantas revealed it had sold more than 200,000 fares for flights to Queensland from New South Wales and Victoria within 72 hours of the announcement that borders between these states would be re-opening.

Goldman believes this strong rebound could signal higher than anticipated capacity throughout the second half of FY21.

Qantas freight has also been performing well, due to the uptick in e-commerce sales during lockdowns. The airline added additional freight transportation services between the international hubs of Los Angeles, Hong Kong and Sydney, and it also revealed that several passenger aircraft were now being used to carry freight. Qantas is also looking into the logistics of using its aircraft to transport COVID-19 vaccines at low temperatures.

But it wasn’t all rosy. International flights continue to remain grounded, most likely until at least July 2021, and Qantas admits that international travel could take years to fully recover. Qantas also forecast that revenues for the full year FY21 would be down by at least $11 billion compared to pre-COVID levels.

However, Goldman Sachs stated that the revenue expectations outlined by Qantas in its market update were broadly in line with its own earlier estimates. The broker still feels confident that the domestic aviation industry can recover strongly now that the eastern states have reopened. It feels that as the broader domestic economy recovers from the effects of the pandemic, Qantas can reaffirm its position as market leader in corporate and premium travel, while Jetstar can reclaim pole position in the low-cost market.

More reading

• Qantas faces union in court over 2,000 sackings
• Leading brokers name 3 ASX shares to sell today
• Will the Qantas (ASX:QAN) share price go higher with reopened borders?
• This ASX travel share is already too expensive: fundies
• Regional Express (ASX:REX) share price soars to 13-year high

Motley Fool contributor Rhys Brock has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why this broker thinks it’s time to buy Qantas (ASX:QAN) shares appeared first on The Motley Fool Australia.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

After paying a record $5 billion fine to the Federal Trade Commission last year to settle allegations that Facebook Inc (NASDAQ: FB) violated user privacy, the social media juggernaut is now in hot water with the regulatory agency yet again. But things are even more serious this time around, with a coalition of 46 attorneys general joining forces with the FTC to file two separate lawsuits against Facebook for alleged violations of antitrust laws.

These are extremely serious charges, and Facebook is now facing substantial regulatory risks as the prosecutors call to break up the company.

But his emails

Facebook has a long history of quickly scooping up small social media start-ups right as those companies start to gain popularity. The most notable of these acquisitions have been the $1 billion acquisition of Instagram and the $19 billion purchase of WhatsApp. (Those price tags are based on the initial offers but changed by the time the deals closed due to fluctuations in Facebook stock.)

The company has long maintained that those services have only been able to grow to dominance under Facebook’s wing, thanks to having access to the tech giant’s deep pockets and Mark Zuckerberg’s ruthless business acumen. That may all be true, but it’s also true that acquiring a would-be competitor for the explicit purpose of undermining competition is illegal.

Zuckerberg knows this. Over the summer, a separate congressional investigation unearthed emails from 2012 between Zuckerberg and former CFO David Ebersman where the executives contemplated acquiring Instagram and Path. Ebersman was skeptical of the rationales, and Zuckerberg said that Facebook was really trying to buy time while acknowledging that part of the reason would be to neutralize a potential competitor. Realizing that he may have gone too far, the CEO soon added, “I didn’t mean to imply that we’d be buying them to prevent them from competing with us in any way.”

This exchange is quoted directly in the FTC’s legal complaint, along with another 2008 email where Zuckerberg asserted that “it is better to buy than compete.” Facebook had initially tried to challenge Instagram directly, but failed to gain traction with users, so the company fell back on that strategy of acquiring instead of competing.

A similar episode played out with WhatsApp, which was becoming incredibly popular, perhaps unstoppably so, in emerging markets where the messaging service was displacing traditional SMS texting.

“Just as with Instagram, WhatsApp presented a powerful threat to Facebook’s personal social networking monopoly, which Facebook targeted for acquisition rather than competition,” the FTC wrote.

Facebook says that the feds want “a do-over”

The FTC and attorneys general are seeking to break up Facebook by forcing it to divest both Instagram and WhatsApp, an extraordinary move that would be a daunting task for acquisitions that have long since been integrated into the conglomerate. There are other aspects to the lawsuits, including allegations that Facebook also leveraged its core platform to hurt competition, but the proposed divestitures are a particularly big ask.

“Years after the FTC cleared our acquisitions, the government now wants a do-over with no regard for the impact that precedent would have on the broader business community or the people who choose our products every day,” Facebook fired back in a statement.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• These 2 FAANG leaders will drive the Nasdaq in 2021
• Here’s how world’s 10 richest made $1.5 trillion from COVID-19
• Facebook just spent $1 billion to monetize messaging
• Facebook to acquire Kustomer in $1 billion deal
• How the biggest companies are the worst investments

Evan Niu, CFA has no position in any of the stocks mentioned. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Facebook. The Motley Fool Australia has recommended Facebook. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Buying cheap shares to make a passive income stream may not sound like an appealing idea to some investors. For example, they may think that today’s cheap stocks are priced at low levels because of their weak business models or poor financial outlooks.

While in some cases that may be true, in others it is far from the truth. Some low-priced shares can offer affordable dividends, growth potential and may contribute to a dependable passive income stream over the long run.

Identifying high-quality cheap shares

Assessing which cheap shares are high-quality companies may be a prudent first step in creating a long-lasting passive income. A good starting point to achieve this aim may be a company’s annual report. It provides guidance on the financial position of a business, as well as other facts and figures that may shine a light on the reliability of its dividend. For example, a company that has low debt levels and a dividend that is covered more than once by net profit may offer a robust passive income outlook.

Furthermore, a company’s latest investor updates paint a picture of its overall strategy. This may be especially relevant at the present time, when a number of industries are experiencing major changes. If company management has a flexible strategy that can adapt to what could be a very changeable period in the coming months, it may stand a better chance of delivering improving financial performance. This could mean that it has investment potential versus other cheap shares.

Dividend growth potential

Annual reports and investor updates can provide insight into the dividend growth prospects of cheap shares. For example, a business that pays out a small proportion of profit as a dividend may be able to raise shareholder payouts in future without necessarily increasing profitability. Similarly, a company with a sound strategy that is set to enter a new market may be able to produce improving financial performance that results in strong dividend growth.

Dividend growth could become increasingly important in the coming years. The scale of monetary policy stimulus enacted in recent months suggests that a period of higher global inflation would not be a major surprise. As such, cheap shares that can produce dividend growth may become more valuable in the eyes of investors. This may mean they offer capital growth prospects, as well as an attractive passive income outlook.

Diversifying to create a passive income stream

Of course, some cheap shares could deliver poor returns in the coming years. Even if they have solid financial positions, a competitive advantage and sound dividend prospects, unforeseen events may hold back their financial prospects.

As such, it is crucial to diversify across a wide range of businesses. This could lead to less risk, as well as higher returns in the long run.

More reading

• Facebook allegedly crossed a line in buying up the competition
• ASX retail shares gear up for Christmas boom
• Could this be why the Zip (ASX:Z1P) share price is underperforming?
• Fortescue (ASX:FMG) share price hits record all-time high, here’s what brokers think
• CSL (ASX:CSL) share price on watch after terminating COVID-19 vaccine trial

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.

The post How I’d turn cheap shares into a lasting income stream appeared first on The Motley Fool Australia.

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Buying cheap shares to make a passive income stream may not sound like an appealing idea to some investors. For example, they may think that today’s cheap stocks are priced at low levels because of their weak business models or poor financial outlooks.

While in some cases that may be true, in others it is far from the truth. Some low-priced shares can offer affordable dividends, growth potential and may contribute to a dependable passive income stream over the long run.

Identifying high-quality cheap shares

Assessing which cheap shares are high-quality companies may be a prudent first step in creating a long-lasting passive income. A good starting point to achieve this aim may be a company’s annual report. It provides guidance on the financial position of a business, as well as other facts and figures that may shine a light on the reliability of its dividend. For example, a company that has low debt levels and a dividend that is covered more than once by net profit may offer a robust passive income outlook.

Furthermore, a company’s latest investor updates paint a picture of its overall strategy. This may be especially relevant at the present time, when a number of industries are experiencing major changes. If company management has a flexible strategy that can adapt to what could be a very changeable period in the coming months, it may stand a better chance of delivering improving financial performance. This could mean that it has investment potential versus other cheap shares.

Dividend growth potential

Annual reports and investor updates can provide insight into the dividend growth prospects of cheap shares. For example, a business that pays out a small proportion of profit as a dividend may be able to raise shareholder payouts in future without necessarily increasing profitability. Similarly, a company with a sound strategy that is set to enter a new market may be able to produce improving financial performance that results in strong dividend growth.

Dividend growth could become increasingly important in the coming years. The scale of monetary policy stimulus enacted in recent months suggests that a period of higher global inflation would not be a major surprise. As such, cheap shares that can produce dividend growth may become more valuable in the eyes of investors. This may mean they offer capital growth prospects, as well as an attractive passive income outlook.

Diversifying to create a passive income stream

Of course, some cheap shares could deliver poor returns in the coming years. Even if they have solid financial positions, a competitive advantage and sound dividend prospects, unforeseen events may hold back their financial prospects.

As such, it is crucial to diversify across a wide range of businesses. This could lead to less risk, as well as higher returns in the long run.

More reading

• Facebook allegedly crossed a line in buying up the competition
• ASX retail shares gear up for Christmas boom
• Could this be why the Zip (ASX:Z1P) share price is underperforming?
• Fortescue (ASX:FMG) share price hits record all-time high, here’s what brokers think
• CSL (ASX:CSL) share price on watch after terminating COVID-19 vaccine trial

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.

The post How I’d turn cheap shares into a lasting income stream appeared first on The Motley Fool Australia.

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This year the COVID-19 pandemic delivered a blow to many retailers across Australia. Brick-and-mortar retailers have been under pressure from lockdown restrictions, cautious consumer spending and intense competition from online retailing.

However, there are signs of a turnaround. Roy Morgan, an Australian market research company, conducted a retail sales forecast with the Australian Retailers Association (ARA) in November. They predict Australians will spend over $54.3 billion across retail stores during the Christmas period, which is an increase of 2.8% on the 2019 Christmas period.

Because of the impact of spending patterns caused by COVID-19, the Roy Morgan retail sales forecast also suggested that online retailing is predicted to grow by 6.6% compared to 2019.

Here are two ASX retail shares with both brick-and-mortar and online stores.

Myer Holdings Ltd (ASX: MYR)

The Australian Financial Review (AFR) reports that department stores are expecting the online shopping boom to stick around, post-pandemic. The AFR article quotes former Myer chief executive Richard Umbers as saying “So many people have now shopped online for the first time as a result of COVID, and they like the experience.”

Myer’s group online sales grew by 61.1% to $422.5 million in FY20, which made up 16.7% of total sales in FY20. Overall in FY20, Myer reported a total sales of $2,519.40 million, which is a decline of 15.8% from $2991.8 in FY19. It reported earnings before interest and tax (EBIT) of $78.5 million, which went up 34% from FY19.

During 2020 Myer has received COVID-related rent concessions from its landlords and is negotiating what its future store footprint might look like as it focuses growing on its online offering. The department store reduced its coverage by 14,000 square metres in 2018–19 and 26,000 square metres in 2019–20.

The Myer share price is currently trading at 30 cents, down 37% from 49 cents in January.

Accent Group Ltd (ASX: AX1)

Accent Group is a leading retail and distribution footwear company, with brands including the Athlete’s Foot, Hype DC, Platypus Shoes, Vans, Dr. Martens, Timberland and Palladium etc. It operates across Australia and New Zealand.

With sales growing by 15.70% in the past five months (excluding the impact of Victoria and Auckland’s lockdowns), Inside Retail reports that CEO Daniel Agostinelli is pleased with Accent Group’s strong trade to date and with the performance of the company’s new stores. 

Accent Group has an integrated omni-channel business model, which is a marketing strategy to unite user experiences from brick-and-mortar to mobile/digital shopping. According to the company, the model allowed it to grow its online orders from an average of $200,000 per day to $800,000–$1 million per day from April to June 2020.

Additionally, in the fourth quarter of FY20, more than 50% of digital shoppers were new customers to Accent Group.

This company has a market capitalisation of $1.20 billion, trading at $2.18 per share, which is above its pre-COVID price level.

More reading

• Forget term deposits and buy these ASX dividend shares
• These are the 10 most shorted shares on the ASX
• 2 highly rated ASX dividend shares to buy
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• 2 growing ASX dividend shares to buy this month

Motley Fool contributor MWUaus has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. 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 Zip Co Ltd (ASX: Z1P) share price has more than halved since its August record highs and struggled to hold its ground in recent days. At Thursday’s closing price of $5.15, the Zip share price is now lower than levels seen after the company announced its QuadPay acquisition back in June!

Between June and November, Zip has increased its monthly transaction volume from $189.3 million to $577.1 million and increased its customer base from 2.1 million to 5.3 million. With its metrics more than doubling in just six months, could this hold the key as to why the Zip share price has struggled in recent weeks? 

Cash burn threatens capital raising

Citigroup lowered its Zip share price target from $6.70 to $6.40 with a neutral rating on Thursday. The broker cites the risk of an equity raise to strengthen Zip’s balance sheet. And Citi believes this may occur sooner rather than later as cash burn continues and growth plans expand. 

Zip’s latest update regarding its funding facilities can be found in its FY21 first quarter update. The company has a number of funding warehouses in place to support its customer receivables portfolio. It had undrawn facilities of $463.6 million to fund its Australian consumer receivables.

For its United States business, Zip had secured a revolving line of credit up to US$200 million from Goldman Sachs and Oaktree Capital to fund growth. It also finalised a new $100 million debt facility from Victory Park Capital Advisors to fund growth in Zip Business for SME receivables.

In terms of cash and cash equivalents, the latest figures come from Zip’s FY20 results where it had $32.7 million. Zip is, however, still a cash burning and loss making business that had a net loss of $20 million in FY20. 

Weakness across the BNPL sector 

While Citi brings to our attention the potential capital raising risk in the near-term, Zip isn’t alone in its recent underperformance. Buy now, pay later (BNPL) shares across the board have slumped to 6-month lows with Afterpay Ltd (ASX: APT) being the only exception. 

In recent months, the sectors that had previously benefitted from lockdown such as information technology and consumer staples have struggled, while beaten down sectors such as energy, financials and real estate have bounced back strongly. This rotation effect adds further insult to injury for the Zip share price. 

More reading

• What’s wrong with the Zip (ASX:Z1P) share price?
• Zip and Creso Pharma were among the most traded shares on the ASX last week
• Why G8 Education, Metcash, Woodside, & Zip shares are dropping lower
• These were the worst performing ASX 200 shares last week
• Why BetMakers, Medical Development International, Qantas, & Zip are dropping lower

Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Fortescue Metals Group Limited (ASX: FMG) share price hit a record all-time high of $22.64 on Thursday. This was on the back of the iron ore spot price going from strength to strength in recent days to hit a 7-year high of US$146 per tonne. Here’s what big brokers are thinking about the Fortescue share price after its market leading performance. 

Investor and media day presentation 

A fresh round of broker and share price rating updates have come after Fortescue’s investor and media day presentation held on Wednesday. The company provided the market with FY21 guidance which included:

• 175-180 million tonnes of iron ore shipments.
• Costs of US$13.00 – US$13.50 per wet metric tonnes (wmt) on an assumed exchange rate of AUD/USD 70 cents.
• US$3.0 – US$3.4 billion in capital expenditure.

This compares to its FY20 performance of:

• 178.2 million wmt of iron ore shipments. 
• Cost of US$12.94 per wmt.
• Realised price of US$78.62 per dry metric tonne (dmt).
• Total capital expenditure of US$2.0 billion. 

Iron ore prices were below US$100 per tonne for most of FY20 after hitting a near-term peak of US$120. In FY21, iron ore prices had already passed the US$100 mark by June and US$120 mark by August. Conversely, the Australian dollar/US dollar has hit a 2-year high of 74.6 cents. A higher Australian dollar does have a negative impact on companies that generate earnings from foreign currency. 

What brokers think of the Fortescue share price 

Brokers across the board did not change their ratings or Fortescue share price targets after reviewing the company’s investor day presentation.

Citigroup retained its neutral rating with a $21.00 price target. Similarly, Credit Suisse had a neutral rating with $16.50 price target.

Macquarie Group Ltd (ASX: MQG) also kept its neutral rating with a $23.00 price target but notes that earnings momentum remains strong.

UBS Group also had a neutral rating with a $19.00 price target. The broker is weary of the strong Australian dollar and is watching for the possible adverse impact it might have on earnings. 

More reading

• 5 things to watch on the ASX 200 on Friday
• Why Asaleo Care, Fortescue, Perpetual, & Starpharma shares are storming higher
• ASX 200 down 0.4%: Appen downgrades guidance, Fortescue hits a record high
• Inquiry calls moratorium on mining projects after Rio Tinto (ASX:RIO) Juukan debacle
• The Fortescue (ASX:FMG) share price has doubled in 2020: Too late to invest?

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

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The CSL Limited (ASX: CSL) share price will be one to watch on Friday after the release of an update on its COVID-19 vaccine candidate.

What did CSL announce?

This morning CSL and the University of Queensland (UQ) announced results from the Phase 1 trial of the UQ-CSL v451 COVID-19 vaccine.

According to the release, the vaccine has shown that it elicits a robust response towards the virus and has a strong safety profile.

And while there were no serious adverse events or safety concerns reported, following agreement with the Australian Government, CSL will not progress the vaccine candidate to Phase 2/3 clinical trials.

Why is it not going any further?

The release explains that the Phase 1 data showed the generation of antibodies directed towards the “molecular clamp” component of the vaccine. These antibodies interfere with certain HIV diagnostic assays.

The potential for this cross-reaction had been anticipated prior to the commencement of the trial and participants were fully informed prior to their involvement.

Blood samples from participants were tested after vaccination and it was found that these molecular clamp antibodies did cause a false positive on a range of HIV assays.

Thankfully, follow up tests confirmed that there is no HIV virus present and that it was just a false positive on certain HIV tests. It stressed that there is no possibility the vaccine causes infection.

Nevertheless, following advice from experts, CSL and UQ have worked through the implications that this issue presents to rolling out the vaccine into broad populations and generally agreed that significant changes would need to be made to well-established HIV testing procedures in the healthcare setting to accommodate rollout of this vaccine.

Therefore, CSL and the Australian Government have agreed the vaccine development will not proceed to Phase 2/3 trials.

CSL’s Chief Scientific Officer, Dr Andrew Nash, commented: “This outcome highlights the risk of failure associated with early vaccine development, and the rigorous assessment involved in making decisions as to what discoveries advance.”

“This project has only been made possible by the innovative science developed by world-class scientists at The University of Queensland and the strong collaboration between our organisations, and many others, over the last 10 months. CSL and Seqirus are committed to continuing our work to protect the Australian population against COVID-19.”

“Manufacture of approximately 30 million doses of the Oxford/AstraZeneca vaccine candidate is underway, with first doses planned for release to Australia early next year. In addition, CSL has agreed at the request of the Australian Government to manufacture an additional 20 million doses,” he concluded.

CSL advised that it doesn’t expect this development to have any impact on previously provided financial guidance for FY 2021.

More reading

• The two ASX stocks most impacted by the dangerous rise of the Aussie dollar
• Why has the CSL (ASX:CSL) share price seemingly gone nowhere this year?
• 2 fantastic ASX healthcare shares to buy for 2021
• CSL (ASX:CSL) share price on watch after hints of ‘far more robust’ vaccine
• Brokers name 3 ASX shares to buy right now

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 CSL 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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Retail investors continued to pile onto exchange-traded funds (ETFs) last month, trying not to miss out on a soaring share market.

According to BetaShares, the ETF industry broke multiple records in November including total funds under management, largest dollar growth in funds under management, highest monthly net inwards flow and highest annual growth.

The industry reached an all-time high market capitalisation of $78.7 billion in November, which was further boosted to $92.3 billion after Magellan Global Fund (ASX: MGF) joined the sector on its conversion to an “open class” structure.

Excluding the Magellan aberration, funds under management grew $4.9 billion, which smashed the previous monthly record of $4.1 billion set in January.

About half of that growth came from asset appreciation and the other half from inward flows, which set a new monthly record of $2.5 billion.

“Including the Magellan conversion, industry growth over the last 12 months has been 52%, representing absolute growth of $31.6 billion over this period,” reported BetaShares.

Best performing Aussie ETFs right now

The five ETFs with the biggest returns in November were dominated by US shares and commodities.

The share market generally had a fantastic month, with the S&P/ASX 200 Index (ASX: XJO) rising 10% and S&P 500 Index (INDEXSP: .INX) jumping 11%.

ETF	November performance
BetaShares Geared US Equity Fund Currency Hedged (ASX: GGUS)	27.8%
ETFS Ultra Long NASDAQ 100 Hedge Fund (ASX: LNAS)	26.1%
BetaShares Crude Oil Idx ETF-Currency Hgd(Synth) (ASX: OOO)	25.4%
Betashares Global Energy Cos ETF-Currency Hedged (ASX: FUEL)	25.3%
BetaShares Geared Australian Equity (Hedge Fund) (ASX: GEAR)	22.9%
Source: BetaShares; Table created by author

The top two ETFs were hedge funds.

BetaShares Geared US Equity Fund Currency Hedged came out on top with a remarkable 27.8% performance. ETFS Ultra Long NASDAQ 100 Hedge Fund wasn’t far behind on 26.1%.

Who are the most popular ETF providers?

Vanguard and BetaShares continue their dominance of the ETF market, attracting the largest amount of inward flows this year.

Magellan with its fund conversion has moved up to 7th with $422.7 million coming in to it so far in 2020.

Platinum retains its crown as the least popular provider with more than $48 million taken out, with ACBC storming into second place in November.

Top 5 ETF providers: most money in

ETF provider	In-flow year-to-date	% of Australian industry
Vanguard	$5.1 billion	28.2%
BetaShares	$4.8 billion	26.6%
iShares	$2.8 billion	15.7%
VanEck	$1.9 billion	10.7%
ETF Securities	$1.2 billion	6.7%
Source: BetaShares; Table created by author

Bottom 5 ETF providers: most money out

ETF provider	In-flow year-to-date	% of Australian industry
Platinum	($48.3 million)	(0.3%)
ACBC	($23.5 million)	(0.1%)
K2 Global	($5.2 million)	0.0%
Schroder	($1.5 million)	0.0%
Antipodes	($0.5 million)	0.0%
Source: BetaShares; Table created by author

 

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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 Australian ETFs just smashed multiple records appeared first on The Motley Fool Australia.

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