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Commonwealth Bank of Australia (ASX: CBA) stock and Westpac Banking Corp (ASX: WBC) stock have both provided investors with pleasing dividend income over the years. But which ASX bank share is a better buy?

According to the ASX, CBA’s market capitalisation is $198 billion, while Westpac’s market capitalisation is $93 billion.

If I were looking to make an investment choice between the two, there are two key areas I’d look at to help me decide.

Dividend yield

Shareholder returns are largely made up of two elements – share price movements and dividend payments.

If I’m going to be a long-term investor, the dividends are going to provide me with ‘real’ returns each year, so that’s going to be a focus.

While huge dividend yields can come with pitfalls, the banks have generally provided stable payments (aside from the COVID-19 period).

According to the (independent) projections on Commsec, owners of CBA stock are expected to get an annual dividend per share of $4.55 in FY24 and $4.61 in FY26. This means the grossed-up dividend yield could be 5.5% in FY24 and 5.6% in FY26.

The Commsec estimates also suggest that owners of Westpac stock could receive an annual dividend per share of $1.44 in FY24 and $1.46 in FY26. That would imply a grossed-up dividend yield of 7.8% in FY24 and 7.9% in FY26.

On this measure, Westpac is predicted to offer a much better dividend yield.

Growth relative to valuation

Ideally, we want to buy businesses at a good price/earnings (P/E) ratio for how quickly they are growing. This can be measured with the PEG ratio.

For example, being able to buy a business that has a P/E ratio of 20 that is regularly growing profit at around 20% per annum is an appealing long-term investment. That would have a PEG ratio of 1.

Sometimes a PEG ratio of 1 (or less) is rare to find, particularly when the ASX share market is close to all-time highs. But still, we’re looking for businesses with lower PEG ratios than expensive ones.

I don’t know what the next results are going to show in terms of profit-making, so we’re going to have to use analysts’ best guesses for CBA stock and Westpac stock.

Profit may be challenged in the next year or two with banks facing a lot of competition, creating headwinds for the net interest margin (NIM). There’s also the possibility of rising arrears if households struggle.

The Commsec earnings projection suggests Westpac’s earnings per share (EPS) could drop to $1.86 in FY24 and then grow by 2.2% to FY26. That would put the Westpac stock price at 14 times FY24’s estimated earnings and under 14 times FY26’s estimated earnings.

CBA is expected to see EPS fall to $5.77 in FY24, drop further in FY25 and then recover to $5.77 again in FY26. That would put the CBA stock price at 20 times FY26’s estimated earnings.

Foolish takeaway

Not only is CBA stock on a significantly higher projected P/E ratio, but Westpac’s profit growth is expected to be better than CBA too.

CBA is a very high-quality bank, but on these numbers, Westpac seems more appealing at the current valuation.

The post Better buy: CBA or Westpac stock? appeared first on The Motley Fool Australia.

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More reading

• Buy Westpac and this ASX dividend giant
• How I’d generate a $20,000 second income from CBA shares
• How much dividend income would I get from a $20k investment in Westpac shares?
• I’d spend $5k on these ASX 200 shares today to target a $13,080 passive income
• $2.1 million! Who are the highest paid ASX 200 directors?

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

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At the start of each week, 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:

• Pilbara Minerals Ltd (ASX: PLS) remains the most shorted ASX shares despite its short interest easing again to 20.2%. It seems that short sellers aren’t expecting lithium prices to rebound any time soon.
• Syrah Resources Ltd (ASX: SYR) has short interest of 17.1%, which is up strongly week on week. Short sellers have been increasing their positions since the graphite producer raised funds yet again earlier this month. They may believe that this points to tough trading conditions being here to stay for a while yet.
• IDP Education Ltd (ASX: IEL) has 12.8% of its shares held short, which is up strongly week on week again. This language testing and student placement company has been targeted due to regulatory changes to student visas.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest rise to 10.9%. Short sellers continue to load up on the travel agent’s shares. They appear to believe that Flight Centre will have a tough second half to FY 2024.
• Liontown Resources Ltd (ASX: LTR) has seen its short interest jump to 9.8%. Short sellers have been increasing their positions despite the lithium developer announcing debt funding for the Kathleen Valley Lithium Project.
• Genesis Minerals Ltd (ASX: GMD) has seen its short interest ease again to 8.1%. It seems that short sellers have been closing positions in this gold miner after the precious metal hit a record high.
• Core Lithium Ltd (ASX: CXO) has short interest of 8%, which is down week on week. Short sellers may have been buying back shares and locking in gains after this lithium miner’s shares crashed deep into the red following its half-year results.
• Deep Yellow Limited (ASX: DYL) has seen its short interest tumble to 7.5%. Short sellers appear to be closing their position in a hurry amid optimism over rising uranium prices.
• Australian Clinical Labs Ltd (ASX: ACL) has short interest of 7.5%, which is down week on week. This pathology company has been having a rough time recently due to tough trading conditions.
• Sayona Mining Ltd (ASX: SYA) has returned to the top ten with short interest of 7.2%. Falling lithium prices have weighed heavily on this lithium miner’s shares and finances. Short sellers don’t appear to believe things will improve in a hurry.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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More reading

• What is the current lithium price?
• 3 of the best ASX growth shares to buy now
• ASX energy shares losing charge amid fresh warnings of gas supply shortfalls
• Popular ASX All Ords shares with ex-dividend dates next week
• ‘We have reached a bottom’: 5 ASX uranium shares leaping higher this week

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

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The BetaShares NASDAQ 100 ETF (ASX: NDQ) is one of the most popular exchange traded funds (ETFs) in Australia.

It isn’t hard to see why.

As its name implies, this ETF gives investors access to the 100 largest companies on Wall Street’s famous NASDAQ index. Though, one thing the name does not give away is that the fund excludes financial shares.

And with the NASDAQ the place to be for technology companies when they list on Wall Street, it will come as no surprise to learn that tech stocks make up a significant portion of its holdings.

At present, 50.7% of its sector allocation is information technology. The next largest allocations are communication services (15.6%), consumer discretionary (15.6%), and consumer staples (6.6%).

Among its largest holdings are many of the world’s biggest and brightest companies. This includes Microsoft, Nvidia, Apple, Amazon, Meta Platforms, Tesla, Alphabet (Google), Costco, and Starbucks.

There’s certainly no denying the quality that you will be buying with this ETF. These companies are the crème de la crème of financial markets. But has this translated into good returns for investors over the past 12 months?

Let’s take a look and see what a $10,000 investment in the BetaShares NASDAQ 100 ETF (NDQ) a year ago would be worth today.

$10,000 invested in the BetaShares NASDAQ 100 ETF (NDQ) in 2023

They say the cream always rises to the top and that has definitely been the case over the last 12 months.

At this point in 2023, I could have picked up this ETF for $29.84 per unit.

This means that for an investment of $9,996.4, I could have snapped up 335 units.

The BetaShares NASDAQ 100 ETF (NDQ) is currently changing hands for $42.60, which is almost 43% higher than where it traded a year earlier.

This means that those 335 units now have a market value of $14,271, which represents a return on investment of close to $4,300 from a $10,000 investment.

Overall, I think it is fair to say that this ETF has delivered for its shareholders. Long may it continue!

The post How much would I have now if I’d invested $10,000 in the BetaShares Nasdaq 100 ETF (NDQ) a year ago? appeared first on The Motley Fool Australia.

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More reading

• Buy and hold these ASX ETFs until 2034
• 5 ASX ETFs to buy and hold for 10 years
• Popular BetaShares ASX ETFs reveal half-yearly results
• Is the Nasdaq in a dotcom-style bubble?
• Can you buy Nvidia shares on the ASX?

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, BetaShares Nasdaq 100 ETF, Costco Wholesale, Meta Platforms, Microsoft, Nvidia, Starbucks, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Nvidia, and Starbucks. 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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A lot of Australian investors have money in the many ASX lithium shares that trade on the local bourse.

Among the most popular options are the likes of Core Lithium Ltd (ASX: CXO), Liontown Resources Ltd (ASX: LTR), and Pilbara Minerals Ltd (ASX: PLS).

In addition, Rio Tinto Ltd (ASX: RIO) is pushing forward with its lithium ambitions and recently revealed that it expects its Rincon lithium plant in Argentina to commence production by the end of 2024.

But unlike oil, gold, copper, and iron ore prices, finding out what the lithium price is can be difficult for investors.

And given how much of impact it has on the performance of ASX lithium shares, this puts them at a disadvantage.

So, let’s take a look and see what is going with the lithium price right now.

The latest lithium price

According to a note out of Goldman Sachs, there was a bit of movement in spot lithium prices in China last week.

At the end of last week, lithium carbonate was fetching a price of US$13,786 per tonne. This is down slightly from US$13,808 per tonne a week earlier.

And if you’re wondering how this compares to recent times. The 2022 average lithium carbonate price was US$63,232 per tonne and the 2023 average was US$32,694 per tonne.

Moving on to lithium hydroxide. It is currently commanding US$9,616 per tonne. This is down a touch from US$9,656 per tonne the week before.

This compares to the 2022 average of US$59,190 per tonne and the 2023 average of US$32,452 per tonne.

Finally, the latest spodumene 6% price is US$1,210 per tonne, which is actually up week on week from US$1,120 per tonne.

But much like the other lithium types, this remains down materially from the 2022 average of US$4,368 per tonne and the 2023 average of US$3,712 per tonne.

The post What is the current lithium price? appeared first on The Motley Fool Australia.

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More reading

• Here’s how the ASX 200 market sectors stacked up last week
• Is the worst of the selling now over for ASX iron ore shares?
• Why Block, Core Lithium, Fisher & Paykel Healthcare, and Virgin Money are rising today
• Own Liontown shares? Here’s when the lithium stock could be profitable
• Core Lithium shares jump 9% on ‘exceptional’ exploration results

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

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Oh my God, how much are we all looking forward to some interest rate relief?

COVID-19 disrupted our lives in many ways that may never be repeated again, and 12 rate rises in 13 months was one of the consequences.

It was 13 hikes in 18 months, if you include the last increase in November.

The Reserve Bank had no choice, as inflation was out of control after the pandemic fattened up people’s savings and disrupted supply chains.

But now that part of the cycle seems to be nearing the end, mortgage holders, businesses and stock investors alike are pumped for the next interest rate movement to be downward.

And whenever that happens, I reckon these four ASX growth shares will cash in:

Institutional investors could be jumping onto this ASX growth stock

The fortunes of the mining industry is closely tied to how well the economy is doing. 

That’s because the demand for raw materials heads up as consumers spend more, then that pushes up commodity prices and the valuations of miners.

An excellent way to gain exposure to that upside is RPMGlobal Holdings Ltd (ASX: RUL), which provides technology and related services to mining businesses.

The tech stock is the Forager Australian Shares Fund’s largest holding, with the team pleased with how reporting season went.

“Revenue was up 21% and earnings before interest and tax more than tripled, thanks to a relatively fixed cost base,” it stated in a report to clients.

“We expect revenue to continue growing for a long while yet and profit to keep growing faster.”

A bonus up the sleeve is that the small cap is now approaching critical mass.

“The company now has a $500 million market capitalisation and trading volumes in its shares have increased markedly over the past month, making it potentially appealing to a wider range of institutional investors.”

The prototypical ASX growth stock

Fintech Block Inc CDI (ASX: SQ2) is very much a stereotype of a stock that is heavily dependent on interest rates for its outlook.

It’s a high-growth US tech company, it services the rate-sensitive industry of consumer finance, and it has investments in cryptocurrency, especially Bitcoin (CRYPTO: BTC).

Not only will it enjoy a huge boost when interest rates come down, it will benefit from being a more efficient business after its efforts to cut costs over the past couple of years.

And Jay-Z owns Block Inc shares. How can you go wrong?

Three of five analysts currently surveyed on CMC Invest rate this ASX growth stock as a strong buy.

Another Yankee on the ASX looking good

GQG Partners Inc (ASX: GQG) is an American investment outfit that manages active stock portfolios.

So it’s no surprise that these ASX growth shares move up and down roughly corresponding to the fortunes of the general share market.

Therefore, when interest rates are brought down it could be in for a surge push upwards.

ECP is one of many investment houses that are bullish on the outlook for GQG Partners shares.

“GQG’s business continues to perform to expectations, with consistent positive monthly net flows from higher fee channels and strong fund performance across all products on a rolling three-year time-frame,” ECP analysts said in a recent memo to clients.

“This consistent alpha generation gives us confidence GQG can continue to sustain flows as it moves toward utilising its significant fund capacity.”

Incredibly, the GQG share price has rocketed more than 52% over the past six months.

Cheaper than its peers

I mentioned earlier that commodity prices are correlated to the health of the economy.

Even among minerals, this is the most true of iron ore.

It is a basic raw material needed for construction, which is one of the primary industries that rise or sink with consumer demand.

And among iron ore miners, Champion Iron Ltd (ASX: CIA) is looking bullish.

CMC Invest currently shows six out of seven analysts rating the stock as a buy.

“We remain bullish regarding the outlook for iron ore in 2024,” said Fairmont Equities managing director Michael Gable a few weeks ago.

“This Canadian based producer is trading on valuations which compare favourably to its peers.”

The post 4 ASX growth shares I think will benefit from interest rate cuts in 2024 appeared first on The Motley Fool Australia.

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More reading

• Do Block shares come with a dividend in 2024?
• Here are the top 10 ASX 200 shares today
• 3 Australian shares quietly crushing the ASX today
• Why Block, Core Lithium, Fisher & Paykel Healthcare, and Virgin Money are rising today
• Forget Fortescue and buy this iron ore share for a 33% return

Motley Fool contributor Tony Yoo has positions in Bitcoin and Block. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin, Block, and RPMGlobal. The Motley Fool Australia has positions in and has recommended Bitcoin and Block. The Motley Fool Australia has recommended RPMGlobal. 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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There are a lot of options on the ASX for income investors to choose from.

But which ASX income stocks could be top options this week?

Two that analysts are feeling bullish on are listed below. Here’s what sort of dividend yields you can expect from them:

Dexus Convenience Retail REIT (ASX: DXC)

The first ASX income stock that analysts think could be a buy this week is Dexus Convenience Retail REIT. It is a property company with a focus on service stations and convenience retail assets located across Australia.

Bell Potter likes the company due partly to its attractive valuation. It commented:

[W]e see clear price discovery for DXC where there have been 53 petrol station transactions in CY23, proving up book value. Notwithstanding, DXC trades at a 27% discount to NTA and screens value to us.

In addition, the broker highlights the company’s generous forecast dividend yields. It is expecting dividends per share of 20.7 cents in FY 2024 and 21.7 cents in FY 2025. Based on its current share price of $2.76, this equates to yields of 7.5% and 7.85%, respectively.

Bell Potter has a buy rating and $3.00 price target on its shares.

Super Retail Group Ltd (ASX: SUL)

Another ASX income stock that has been rated as a buy is Super Retail. It is the name behind popular retail brands BCF, Macpac, Rebel, and Supercheap Auto.

Goldman Sachs is very positive on the retailer and has buy rating and $17.80 price target on its shares.

The broker was impressed with Super Retail’s performance in the first half of FY 2024, noting that “the 1H24 result was high quality and the strategic growth plan is intact.” In addition, it likes the company due to its resilient brands. It adds:

We believe SUL will display resilience in a softer economic environment that is built upon its competitive advantage of high loyalty (~11.0m active members accounting for >75% of sales) and this will be further bolstered as the company launches the Rebel loyalty program and continues to build personalisation capabilities.

Goldman expects this to underpin fully franked dividends per share of 67 cents in FY 2024 and then 73 cents in FY 2025. Based on the latest Super Retail share price of $15.40, this will mean good yields of 4.35% and 4.75%, respectively.

The post Analysts say these excellent ASX income shares are buys appeared first on The Motley Fool Australia.

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More reading

• Popular ASX All Ords shares with ex-dividend dates next week
• Why Goldman Sachs expects market-beating returns from Super Retail shares
• Are these ASX dividend stocks quality buys this week?
• How about buying these ASX dividend shares?
• Guess which ASX 200 retail stock is tipped to deliver 19% upside and a 6.5% yield in 2024

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

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On Friday, the S&P/ASX 200 Index (ASX: XJO) ended the week in the red. The benchmark index edged 0.15% lower to 7,770.6 points.

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

ASX 200 expected to rise

The Australian share market looks set to edge higher on Monday despite a relatively poor finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 7 points higher. On Friday on Wall Street, the Dow Jones was down 0.8% and the S&P 500 fell 0.15%, but the Nasdaq rose 0.15%.

Oil prices fall

ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a soft start to the week after oil prices fell on Friday night. According to Bloomberg, the WTI crude oil price was down 0.55% to US$80.63 a barrel and the Brent crude oil price was down 0.4% to US$85.43 a barrel. This was driven by optimism over ceasefire talks in Gaza.

Star CEO exits

The Star Entertainment Group Ltd (ASX: SGR) share price will be in focus today after the embattled casino and resorts operator announced the immediate exit of its CEO, Robbie Cooke. The board “formed the view that the continuation of Mr Cooke’s leadership of the Group was not going to be conducive to the NSW Independent Casino Commission (NICC) determining to find The Star capable of becoming suitable to hold a casino licence in NSW.” David Foster will take on additional duties as Executive Chair while a search for a permanent CEO is conducted.

Gold price falls

ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a poor start to the week after the gold price dropped on Friday. According to CNBC, the spot gold price was down 0.8% to US$2,166.5 an ounce. The precious metal pulled back from its record high after the US dollar strengthened.

Shares going ex-dividend

A couple of ASX 200 shares are going ex-dividend this morning and could trade lower. This includes property company Cedar Woods Properties Limited (ASX: CWP) and diversified contract services provider NRW Holdings Limited (ASX: NWH). They will be paying eligible shareholders 8 cents per share and 6.5 cents per share dividends on 26 April and 11 April, respectively.

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

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More reading

• Buy Westpac and this ASX dividend giant
• Here’s how the ASX 200 market sectors stacked up last week
• Here are the top 10 ASX 200 shares today
• ASX energy shares losing charge amid fresh warnings of gas supply shortfalls
• Popular ASX All Ords shares with ex-dividend dates next week

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

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The Reserve Bank interest rate decision might be behind us, but there are still plenty of developments coming this week that are worth watching for the sake of your ASX shares.

eToro market analyst Josh Gilbert has picked out the three most important ones for our convenience:

1. Australia monthly inflation

Wednesday will see the latest monthly consumer price index numbers released, which will be crucial in helping the RBA decide what to do with interest rates.

According to Gilbert, it’s a given now that a rate cut will be coming this year.

“The market now sees an 80% chance the RBA will cut rates in August. However, the higher-for-longer take from the board can’t be ignored by investors.”

Inflation is the most important metric for all central banks around the world now, not just the Reserve Bank.

“Investors are looking at the rotation to come as we get nearer rate cuts, moving away from the US dollar and tech into cheaper and more cyclical assets.”

2. Australia consumer confidence

Last month the consumer confidence index headed upwards to 86, according to Gilbert, which is the highest seen in two years.

“It’s reasonable to anticipate a similar trend in March, considering the monthly CPI for January saw consumer prices rise 3.4%, going against economists’ expectations of a slight increase from December.”

The resilience and confidence shown by Australian consumers could be working against them though.

“The market is pushing back on the number of rate cuts this year,” said Gilbert.

“In early February, the market was expecting more than two cuts, which has since been pushed to under two cuts.”

3. BYD financial report

The world’s biggest selling electric car maker, BYD (SHE: 002594), is reporting its latest results on Tuesday.

“Investors are eagerly anticipating the automotive company’s earnings, which BYD expects to have risen by up to 85.6% year-on-year for 2023,” said Gilbert.

“However, the company’s preliminary income figures fell short of market expectations, which could create an interesting dynamic around the earnings announcement this week.”

Gilbert pointed out that Australians may have noticed many more BYD cars driving around this year.

“BYD is set to deliver more than 3 million cars to Australia for the full year 2023.

“Whether BYD can leverage its growth potential to carve out a larger market share remains to be seen. The upcoming earnings report will likely shed more light on this subject, providing key insights into BYD’s strategic direction and financial health.”

The post 3 things ASX investors should watch this week appeared first on The Motley Fool Australia.

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More reading

• Invest $500 in these outstanding ASX ETFs
• 3 of the best ASX growth shares to buy now
• Buy Westpac and this ASX dividend giant
• Top brokers name 3 ASX shares to buy next week
• Here’s how the ASX 200 market sectors stacked up last week

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

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If you’re just starting your investment journey and have $500 to invest, but aren’t sure which shares to buy, then you could consider exchange-traded funds (ETFs).

ETFs allow you to own a portion of a large and diverse number of shares through a single investment.

This means that instead of dedicating time to researching which shares to buy, you can just buy a collection of them with a single click of a button.

Then you can sit back and let compounding work its magic with your money.

But which ASX ETFs could be top options for a $500 investment? Two that are worth considering are listed below:

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Warren Buffett is one of the world’s most well-known investors.

The Oracle of Omaha has earned his reputation by delivering market beating returns over many decades.

The key to his success has been his preference of making long-term investments in companies with attractive valuations, strong business models, and competitive advantages.

With that in mind, if you would like to replicate this you could look at the VanEck Vectors Morningstar Wide Moat ETF. This ASX ETF is focused on buying the type of companies that you would expect to find in Buffett’s portfolio.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ASX ETF for investors to look at for a $500 investment is the Vanguard MSCI Index International Shares ETF.

This ETF is very popular with Aussie investors and it isn’t hard to see why.

Not only does it provide unparalleled diversification for a portfolio, but it gives investors access to 1,000+ of the world’s biggest and best companies. Among the household names that you will be investing in with the ETF are global behemoths such as Amazon, Apple, Nestle, and Visa.

The post Invest $500 in these outstanding ASX ETFs appeared first on The Motley Fool Australia.

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More reading

• Here’s how the ASX 200 market sectors stacked up last week
• 12 ASX ETFs breaking the mould to hit 52-week highs today
• Here are the next distribution dates for your Vanguard ETFs
• How I’d invest my first $1,000 in ASX shares in 2024
• 4 top ASX exchange-traded funds smashing record highs on Wednesday

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nestlé. The Motley Fool Australia has recommended Amazon, Apple, VanEck Morningstar Wide Moat ETF, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The great news for Aussie growth investors is that there are plenty of quality options to choose from on the local share market.

But which ASX growth shares could be best buys next week?

Let’s take a look at three growth shares that brokers rate very highly:

IDP Education Ltd (ASX: IEL)

This language testing and student placement company’s shares could be an ASX growth share to buy now.

That’s the view of analysts at Goldman Sachs, which believe the company is well-placed for long-term growth thanks to structural tailwinds and its dominant market position.

The broker recently responded to its half-year results by retaining its buy rating with a $26.60 price target. This would mean upside of almost 44% for investors if Goldman is on the money with its recommendation.

Megaport Ltd (ASX: MP1)

Analysts at Macquarie think this leading global provider of elastic interconnection services could be an ASX growth share to buy.

The broker appears to believe the stars are now aligning for the company and that it is destined to deliver explosive earnings growth over the coming years.

In response to its half-year results last month, Macquarie retained its outperform rating on Megaport’s shares with an improved price target of $18.00. This suggests potential upside of 25% for investors.

Xero Limited (ASX: XRO)

A final ASX growth share that has been named as a buy is Xero. It is a cloud-based accounting and business services platform provider to small businesses.

Although its shares have been on fire so far this year, the team at Citi doesn’t believe it is too late to invest.

In fact, the broker sees potential for market-beating returns from its shares from current levels. It has a buy rating and $159.00 price target on them. This implies potential upside of 17% for investors from current levels.

The post 3 of the best ASX growth shares to buy now appeared first on The Motley Fool Australia.

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More reading

• New to investing? I’d invest my first $1,000 in ASX shares today!
• These are the 10 most shorted ASX shares
• 5 oversold ASX shares to buy in March 2024
• Got $3,000? 3 ASX tech shares to buy and hold for the long term
• Here are the top 10 ASX 200 shares today

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Idp Education, Macquarie Group, Megaport, and Xero. The Motley Fool Australia has positions in and has recommended Macquarie Group and Xero. The Motley Fool Australia has recommended Idp Education and Megaport. 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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