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If you’re looking to boost your passive income this year, then you may want to look at the shares listed below.

These ASX shares have been tipped to pay their shareholders very attractive dividends in 2023. Here’s what you need to know about them:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share that has been named as a buy is Accent.

The footwear and youth apparel retailer could be a top option for investors according to Goldman Sachs.

The broker believes that Accent’s numerous retail brands are well-placed in the current environment due their strong market position and exposure to younger consumers. Goldman expects the latter to continue spending as normal in 2023 due to a rise in the minimum wage and lower exposure to rising interest rates.

The broker expects this to lead to fully franked dividends of 10.2 cents per share in FY 2023 and 11.4 cents per share in FY 2024. Based on the current Accent share price of $1.78, this will mean yields of 5.7% and 6.4%, respectively.

Goldman has a buy rating and $2.20 price target on the company’s shares.

South32 Ltd (ASX: S32)

Another ASX dividend share that has been named as a buy is South32.

Morgans is very positive on this mining giant, which owns a diverse collection of operations that provide exposure to commodities including aluminium, copper, manganese, and nickel.

Its analysts like South32 due to its “clear exposure to a recovery scenario for China growth” and its portfolio transformation and strong balance sheet. It sees the latter as “supporting potential for further M&A.”

As for dividends, Morgans is expecting South32 to pay fully franked dividends per share of 23 cents in FY 2023 and 21.6 cents in FY 2024. Based on the current South32 share price of $4.45, this will mean yields of 5.15% and 4.9%, respectively.

The broker has an add rating and $5.30 price target on South32’s shares.

The post Buy these ASX dividend shares for a passive income: experts appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Looking to buy South32 shares? Here are the key dates to watch in 2023
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie 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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Often the best wisdom from professional investors arises when they discuss ASX shares that have plunged in their portfolio, not the ones that have risen.

That’s because the analysts explain why they chose to retain or sell those stocks.

And if they are keeping the faith then it’s a great tip for other investors to buy, especially as the price has been discounted.

The portfolio managers at Elvest Fund, in a recent memo to clients, mentioned two S&P/ASX 200 Index (ASX: XJO) shares exactly in that situation.

Discounted stock despite great outlook 

The share price for construction products player Brickworks Limited (ASX: BKW) was down 1% in December, which the Elvest team felt didn’t justify “a positive update”.

“Brickworks announced expectations to deliver a record half-year result in its property division,” read the memo.

“Not long after delivering a strong FY22 result, Brickworks expects to grow its net property trust asset base by $450 million to $2.2 billion in the first half of FY23.”

As well as producing goods, Brickworks has substantial investments in real estate and fellow ASX-listed company Washington H Soul Pattinson and Co Ltd (ASX: SOL).

“Over the medium term, we see property underwriting Brickworks’ current market cap, leaving substantial residual value within its 26% stake in Washington H Soul Pattinson, as well as the building products division.”

The Brickworks share price has dropped 7.1% over the past year, leaving a dividend yield of 2.75%. 

According to CMC Markets, three out of five analysts that cover the stock recommend it as a buy. The remaining two rate Brickworks as a hold.

The reason why this travel stock is struggling and why it’ll surge again

Christmas fortunes for Corporate Travel Management Ltd (ASX: CTD) were opposite, with the share price dropping 10.9% over December.

In fact, the stock has plunged almost 30% over the past 12 months.

If you visit any airport in Australia at the moment, it’s obvious to see from the lengthy queues the travel industry is going gangbusters.

So what gives?

“Corporate Travel Management declined on news of leisure travel swamping airline capacity and therefore limiting availability for corporate travellers.”

But that just means more upside, as far as the Elvest team is concerned.

“As capacity returns, which we believe will occur over the next 12 to 24 months, so too will corporate travel, albeit in the midst of a challenging economic environment,” read the memo.

“Corporate Travel Management is attractively priced assuming recovery of pre-COVID activity over the coming years.”

Elvest’s peers broadly agree, with nine out of 12 analysts currently surveyed on CMC Markets recommending Corporate Travel shares as a buy.

The post ‘Attractively priced’: Why fund is excited by these 2 ASX 200 shares appeared first on The Motley Fool Australia.

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More reading

• Could ASX 200 travel shares be set for a major boost in 2023?
• How ASX dividend shares can solve retirement income needs
• Top brokers name 3 ASX shares to buy next week
• Brokers name 3 ASX shares to buy now
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Tony Yoo has positions in Corporate Travel Management and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Corporate Travel Management. 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) saw a very heavy fall in 2022. Of the big ASX exchange-traded funds (ETFs), it was one of the worst performers, dropping around 30%.

For investors who don’t know, this fund owns some of the largest US businesses. Indeed, it’s invested in 100 of the largest non-financial businesses listed on the NASDAQ. The NASDAQ is a US-based stock exchange, home to many tech companies.

Looking at the fund’s holdings list, these are some of its biggest positions: Microsoft, Apple, Amazon.com, Alphabet, Nvidia, Tesla, Meta Platforms, PepsiCo, and Broadcom.

Why was 2022 so tough?

Collectively, technology shares had a rough time last year. The combination of high inflation and rising interest rates has had quite an effect on valuations. Not only can inflation hurt profitability through rising costs, it can also prompt central banks to lift interest rates in a bid to take some demand out of the economy.

So why do interest rates matter so much? Legendary investor Warren Buffett once said:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature…its intrinsic valuation is 100% sensitive to interest rates.

In 2022, the US Federal Reserve took the interest rate from around 0% to above 4%, and more increases are expected in 2023.

Over the year, the Microsoft share price dropped almost 30%, the Apple share price fell 27%, the Amazon share price sank almost 50%, the Alphabet share price declined almost 40%, and the Tesla share price was whacked 65%.

Will 2023 be any better for the Betashares Nasdaq 100 ETF?

As a group of businesses, I think it’s likely to be another volatile year as things go up and down as optimists and pessimists drive the action.

As to whether it’s a positive year or not, I think will come down to two main elements.

First, interest rates. It seems that the US Federal Reserve collectively thinks that the interest rate will reach 5.1%, based on individual members’ expectations.

There’s also the risk that the interest rate could stay at that 5% mark for longer than the optimists are hoping for. Theoretically, share price valuations are meant to take into account not just the current interest rate, but where it will be in the coming years as well.

The boss of the US Federal Reserve, Jerome Powell, has promised to “keep at it until the job is done”, so I wouldn’t expect interest rate cuts any time soon. If the market is not taking this commitment fully into account, then it could be another tough year.

The other main element could be the actual profitability performance of the businesses in the Betashares Nasdaq 100 ETF.

Analysts are regularly assessing how much profit they expect businesses to make in 2023. If economic conditions are worse for a business than expected, its share price could take a dive. But, on the other hand, if profit performs better than expected, the share price could jump amid all the negativity. I think there will be a bit of both within the ETF’s portfolio of companies.

Foolish takeaway

I think the Betashares Nasdaq 100 ETF can end up higher come December 2023. Sentiment may fall during the year, particularly if quarterly profit numbers start being disappointing. However, by the end of the year, I think interest rate rises will have paused and this will give investors some certainty, as well as interest rate cuts getting closer, whenever they happen.

The post The Betashares Nasdaq 100 ETF (NDQ) crashed 30% in 2022. Are things looking up? appeared first on The Motley Fool Australia.

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More reading

• 2 super ETFs for ASX investors to buy in 2023 and hold for a decade
• $300 a month in these 3 ASX shares could make you a millionaire by retirement
• 3 excellent ETFs for ASX investors to buy in January
• 3 reasons to buy the BetaShares Nasdaq 100 ETF (NDQ) before 2023
• 2 high quality ETFs for ASX beginner investors to buy in 2023

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. 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 Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon.com, Apple, BetaShares Nasdaq 100 ETF, Meta Platforms, Nvidia, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom and has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon.com, Apple, Meta Platforms, and Nvidia. 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 Tuesday, the S&P/ASX 200 Index (ASX: XJO) ended its winning streak with a small decline. The benchmark fell 0.3% to 7,131 points.

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

ASX 200 expected to rebound

The Australian share market looks set to rebound on Wednesday following a solid night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 27 points or 0.4% higher this morning. In late trade on Wall Street, the Dow Jones is up 0.4%, the S&P 500 is up 0.55%, and the Nasdaq is 0.8% higher.

Oil prices rise

It could be a good day for energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) after a decent night for oil prices. According to Bloomberg, the WTI crude oil price is up 1.4% to US$75.68 a barrel and the Brent crude oil price has risen 1.25% to US$80.65 a barrel. Optimism over Chinese demand boosted prices.

Norwest rejects MinRes takeover

After the market close on Tuesday, Mineral Resources Ltd (ASX: MIN) was dealt a blow in its quest to acquire Norwest Energy NL (ASX: NWE). Norwest has released its target statement and advised that its directors unanimously recommend that shareholders reject the offer. Mineral Resources has offered one share for every 1,367 Norwest shares. This currently values the offer at 6.2 cents per share.

Iron ore price rises

It could be a positive session for mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) on Wednesday after the iron ore price charged higher. The steel-making ingredient is up 3.1% to US$121.95 a tonne amid hopes that China’s reopening will lead to an increase in demand for the base metal.

Gold price edges higher

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price edged higher overnight. According to CNBC, the spot gold price is up 0.1% to US$1,879.7 an ounce. Gold is trading near a new eight-month high.

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

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More reading

• Broker reveals ASX 200 share with earnings expected to halve
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• These 3 ASX 200 lithium shares outperformed all others in 2022
• My 3 best ASX shares of 2022 – and why I think they’ll win again in 2023

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

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Two ASX 300 retail shares are a buy but another may fall slightly, according to analysts at Macquarie.

The broker rates Lovisa Holdings Ltd (ASX: LOV) and Premier Investments Ltd (ASX: PMV) as buys, while City Chic Collective Ltd (ASX: CCX) is rated neutral.

Let’s take a look at the outlook for these three ASX retail shares.

Will retail shares bounce back?

Macquarie analysts have placed an outperform rating on the Lovisa share price with a $27 price target. It also rates Premier Investments as outperform with a $29 price target. Premier Investments has a portfolio of retail brands including Portmans, Just Jeans, and Peter Alexander.

The Macquarie team likes retailers with scale, strong balance sheets, and market-leading brands, with youth consumers well positioned in today’s economic environment, the Australian Financial Review reported.

Lovisa shares fell 0.29% on Tuesday to close at $24.21 each. Macquarie’s price target of $27 implies an upside of 11.5%. In November, Lovisa reported global store sales in the first 19 weeks of FY23 to date were up 16.1% on FY22. The company also reported it had opened 47 new stores.

Premier Investments shares dropped 5.19% on Tuesday to close at $24.85. Macquarie’s price target of $29 implies a 16.7% upside based on the current share price.

In early December, the company reported global sales in the first 17 weeks of 1H23 had soared 24.9% compared to pre-Covid 1H20 sales. The company also reported record sales during the Black Friday trading week.

However, looking at the bigger picture for retail, analysts at Macquarie are concerned about online sales traffic in the current economic environment, commenting (courtesy of AFR):

December website traffic data remains weak as retailers continue to cycle tough COVID comps. Online activity continues to moderate from elevated levels seen over CY20-21.

With this in mind, Macquarie has placed a neutral rating on City Chic Collective with a 42-cent price target, noting the company’s website traffic fell 8.9% in the “first weeks of December”, the publication reported.

City Chic shares fell 3.37% in Tuesday’s trade to close at 43 cents apiece. On 20 December, City Chic reported global year-to-date revenue was down about 7% compared to the prior corresponding period. However, it was up 38% on FY21.

Meanwhile, the latest ANZ-Roy Morgan Consumer Confidence data, released today, shows consumer confidence lifted 4.9 points last week to 87.4. ANZ senior economist Adelaide Timbrell said:

This was the first new year’s jump in confidence since 2018.

Share price snapshot

The Lovisa share price has soared nearly 32% in the last year.

Premier Investments shares have declined 11% in the past 52 weeks.

Citi Chic Collective shares have plunged 91% in the past year.

The post 2 ASX 300 retail shares to buy right now, and one to avoid: Macquarie appeared first on The Motley Fool Australia.

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More reading

• Why Brainchip, IAG, Premier Investments, and Telix shares are sinking today
• 5 things to watch on the ASX 200 on Tuesday
• 2 excellent ASX growth shares that analysts say are buys in January
• Should you buy Premier Investments shares before they trade ex-dividend next week?
• Leading brokers name 3 ASX shares to buy today

Motley Fool contributor Monica O’Shea 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 Lovisa. The Motley Fool Australia has recommended Lovisa and Premier Investments. 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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Many blue chip companies are trading on what would be considered ‘cheap’ earnings multiples following a tough year for S&P/ASX 200 Index (ASX: XJO) shares.

Nealy 15% of companies included in the Aussie benchmark index now have a price-to-earnings (P/E) ratio below 10. However, one broker is concerned that there is possibly a good reason for the steep discount on a staple of the materials industry.

Holding the title of the second-lowest P/E ratio in the benchmark — at 3.1 times earnings — shares in BlueScope Steel Limited (ASX: BSL) might look like a golden opportunity. Though, the team at Ord Minnett begs to differ based on its forecasts.

Tailwinds fade in a slowing economy

Share market investors and a single-digit P/E ratio can be like moths to a flame. The attraction is in the chance of investing in a company that is potentially mispriced. This strategy falls apart when the underlying fundamentals continue to erode, resulting in what is called a ‘value trap‘.

According to the analysts at Ord Minnett, BlueScope Steel might have the makings of a value trap right now. This is largely based on their estimates that the steel giant will experience significant reductions in its earnings this year and through to FY25.

Specifically, Ord Minnett analysts expect that rising interest rates will squash steel demand. This paired with the absence of monetary stimulus and an easing of supply disruptions will see BlueScope earnings fall off a cliff.

In FY23, the team forecast BlueScope’s earnings before interest and tax (EBIT) to fall from $3.79 billion to $1.6 billion. From there, EBIT is expected to slide further — descending to $1 billion by FY25.

Commenting on the forecasted future direction of BlueScope earnings, the Ord Minnett team wrote:

We do not believe this negative earnings profile is reflected in BlueScope Steel’s stock price, trading at a premium of more than 20 per cent to our fair value estimate.

In December, Fitch Ratings revealed its expectations for metals prices across the world to weaken in 2023. Likewise, a mill source informed S&P Global Commodity Insights of their view of further weakness, stating:

China’s steel demand is likely to continue falling in 2023 due to slowed demand both home and abroad, so the commissioning of these new steel projects will put a lot of pressure on the market trends, if most steel makers do not put their production under control.

Where could this ASX 200 share end up?

The BlueScope Steel share price has already fallen by 18.4% over the last year, but Ord Minnett anticipates further downside.

In light of forecasts for its earnings to more than halve, the team has set its price target on this ASX 200 share to $13 per share. This would suggest there’s still another 26.5% worth of space left for BlueScope to tumble from its current $17.69 position.

The steel giant’s 52-week low is $14.74.

The post Broker reveals ASX 200 share with earnings expected to halve appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• These 3 ASX 200 lithium shares outperformed all others in 2022
• My 3 best ASX shares of 2022 – and why I think they’ll win again in 2023
• Starting 2023 with no savings? I’d follow Warren Buffett and start building wealth

Motley Fool contributor Mitchell Lawler 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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It’s been a rather crazy time for the Arafura Rare Earths Ltd (ASX: ARU) share price of late. Back at the start of November, Arafura shares were going for 30 cents each. But by New Year’s Eve, Arafura shares were 47 cents each, up more than 56% from where they were just two months prior.

But let’s talk about the past week. Arafura has been on a bit of a rollercoaster. Just last Thursday, we saw Arafura at 45 cents a share. But Friday saw an astonishing run-up for this company, with Arafuras share climbing more than 13%.

Yesterday, the company rose another 7.8% to hit a new 52-week high of 56 cents per share at one point. Not only was that a new 52-week high, but it was also the highest Arafura share price has been at in more than 10 years. So between 6 and 9 January, Arafura shares climbed more than 22%.

But by the end of today’s trading session, this story added a new, and rather different, chapter. The Arafura share price crashed today, no way around it. The company opened at its new 52-week (and decade) high of 56 cents per share but quickly started falling. By the end of today’s session, Arafura had closed down 9.09% at 50 cents a share.

So what on earth is going on here?

Why has the Arafura share price been on such a wild ride in 2023?

Well, the first thing to note is that there hasn’t been any fresh news out of Arafura. However, the company did announce the results of its share purchase plan last week.

But since then, all we have gotten out of the company has been routine paperwork announcements, mostly concerning this share purchase plan. So we can probably rule this out in explaining the wild volatility we have seen with the company’s shares.

It is worth mentioning that most companies in or around Arafura’s wheelhouse also had pretty awful days today. Lynas Rare Earths Ltd (ASX: LYC) shares fell by a nasty 3.75%. And lithium shares like Core Lithium Ltd (ASX: CXO) and Pilbara Minerals Ltd (ASX: PLS) also fell, with Core Lithium copping a 5% slide.

So perhaps investors, after enjoying such a strong run over 2023 thus far, have chosen today to take their profits off the table en masse. It’s rather unusual for an ASX share to gain 20% over just a couple of days. Investors know this, and it is conceivable that many decided to try and get out rather than see what the next week holds.

This might be the most likely explanation as to why the Arafura Rare Earths share price had such a clanger today. Even so, the company remains up more than 10% in 2023 so far as at today’s closing share price.

The post Arafura share price hits 10-year high then crashes 10%! What’s going on? appeared first on The Motley Fool Australia.

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More reading

• 23 ASX shares to buy in 2023 – brokers
• Arafura Rare Earths share price rebounds strongly after dumping 17% in 5 days
• Why Argosy Minerals, Arafura, Deep Yellow, and Pro Medicus shares are charging higher
• Why did the Arafura Rare Earths share price dive 9% on Tuesday?
• Why Appen, Arafura, Aurizon, and Star shares are sinking today

Motley Fool contributor Sebastian Bowen 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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The S&P/ASX 200 Index (ASX: XJO) broke a four-session winning streak on Tuesday, falling 0.28% to close at 7,131 points.

Most of the ASX 200’s 11 sectors closed lower today, with only the S&P/ASX 200 Communications Index (ASX: XTJ) and the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) posting notable gains. They each rose around 0.2%.

The latter may have been bolstered by new data from the Australian Bureau of Statistics, finding Aussie households’ discretionary spending was 6.3% higher in November 2022 than in the same month of 2021.

Spending on consumer staples also lifted 17.1%, while spending on goods and services lifted 1.2% and 24% respectively.

Meanwhile, the S&P/ASX 200 Energy Index (ASX: XJO) fell 0.3% today despite oil prices rising around 1.3% overnight.

The S&P/ASX 200 Materials Index (ASX: XMJ) also fell 0.5%, weighed down by lithium and gold shares.

Still, there were plenty of gains on the ASX 200 on Tuesday. Let’s look at the top 10.

Top 10 ASX 200 shares countdown

Today’s top-performing ASX 200 share was Boral Limited (ASX: BLD).

It posted a 2.6% gain despite no news having been released by the building products and construction materials provider.

These shares made today’s biggest gains:

ASX-listed company	Share price	Price change
Boral Limited (ASX: BLD)	$3.10	2.65%
Aristocrat Leisure Limited (ASX: ALL)	$32.06	2.2%
Lottery Corporation Ltd (ASX: TLC)	$4.72	1.94%
Carsales.com Ltd (ASX: CAR)	$21.28	1.92%
Domain Holdings Australia Ltd (ASX: DHG)	$2.78	1.83%
ResMed Inc (ASX: RMD)	$30.57	1.7%
Incitec Pivot Ltd (ASX: IPL)	$3.78	1.61%
Lendlease Group (ASX: LLC)	$8.03	1.39%
REA Group Limited (ASX: REA)	$112.83	1.39%
Nanosonics Ltd (ASX: NAN)	$4.43	1.37%

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper 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 Nanosonics and ResMed. The Motley Fool Australia has positions in and has recommended Nanosonics and ResMed. The Motley Fool Australia has recommended Carsales.com and REA 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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The S&P/ASX 200 Index (ASX: XJO) travel share sector has seen plenty of bumps over the past three years. Demand is steadily recovering as the pandemic’s impact wears off. But, a change in China’s COVID-19 settings could be a particularly helpful boost to the industry.

There are a number of different travel names on the ASX including Corporate Travel Management Ltd (ASX: CTD), Qantas Airways Limited (ASX: QAN), Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Limited (ASX: WEB).

Chinese travellers to drive ASX travel shares higher?

According to reporting by CNBC, Australia could be about to benefit from Chinese travellers returning to the country,

JPMorgan’s chief investment strategist Tom Kenney said:

China’s shift toward an earlier reopening raises the question of potential implications for the Australian economy.

The largest potential upside from reopening itself sits within the services sector given China is the largest consumer of Australian tourism and education exports.

Our expectation is for the tourism-related consumption impulse to be spread over 2023 and 2024.

While the duration adjusted spending numbers are less striking, real GDP is an aggregate concept and so the absence of Chinese tourism has been a notable headwind

A full recovery of Australian tourism could add 0.5 percentage points to the GDP, while the return of international students from China could add another 0.4 percentage points. In total this might add around 1% to Australian GDP. This could be a nice boost for ASX 200 travel shares.

CNBC noted that in 2019, Chinese arrivals accounted for 15.3% of Australia’s inbound tourism – it was the largest source of short-term visitors.

But, Australian Bureau of Statistics (ABS) data showed that a total of 430,470 short-term trips were made to Australia in October – this data was released in December. This total number of trips was 44% lower than the same level in 2019, according to CNBC.

Could this be a benefit?

It certainly could. Different ASX 200 travel shares have varying levels of exposure to Chinese travellers.

But, the more mobile Chinese tourists and business people become, the more likely they are to use a Qantas plane, an ASX-owned travel agent or use ASX-listed corporate travel services.

In the Qantas market update during mid-October 2022, the company said that group domestic capacity will be 94% of pre-COVID levels in the FY23 first half, growing to around 100% for the second half. International capacity is expected to increase from 61% of pre-COVID levels in the FY23 first half to 77% in the second half.

In other words, Qantas’ international capacity is still materially below pre-COVID times with some of those travel routes not seeing the same demand as before. A return of Chinese visitors could go some way to closing that gap.

The post Could ASX 200 travel shares be set for a major boost in 2023? appeared first on The Motley Fool Australia.

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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 recommended Corporate Travel Management and Flight Centre Travel 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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If you’re wanting to invest but aren’t sure which shares to buy, then ETFs could be a good option. This is because ETFs allow you to buy a large number of shares through a single investment.

With that in mind, listed below are two top ETFs that could be good options for investors in 2023. Here’s what you need to know about them:

BetaShares Global Energy Companies ETF (ASX: FUEL)

The first ETF for investors to look at is the BetaShares Global Energy Companies ETF.

With one hedge fund trader tipping oil prices to surge as much as 90% in 2023, as covered here, gaining exposure to the energy sector could prove to be a good thing for a portfolio.

Investors can achieve this with the BetaShares Global Energy Companies ETF, which allows investors to own a slice of some of the biggest energy companies in the world.

Among the ETF’s holdings are energy giants BP, Chevron, ConocoPhillips, ExxonMobil, Phillips 66, Royal Dutch Shell, and Total.

iShares Global Consumer Staples ETF (ASX: IXI)

Another ETF for investors to look at in 2023 is the iShares Global Consumer Staples ETF.

The iShares Global Consumer Staples ETF gives investors access to the world’s leading consumer staples companies. These are the companies that produce or sell essential everyday products such as food, tobacco, and household items.

The good thing about these products is that demand remains relatively consistent whatever is happening in the economy. This could make it a top option if you’re concerned that the cost of living crisis could put a dent in consumer spending this year.

Among its holdings are household names including Coca-Cola, Coles Group Ltd (ASX: COL), Colgate-Palmolive, Diageo, L’Oreal, Mondelez, Nestle, PepsiCo, Procter & Gamble, Unilever, Walmart, and Woolworths Group Ltd (ASX: WOW).

The post Why these could be the ASX ETFs to buy in 2023 appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 best-performing ASX ETFs of 2022
• Top ASX shares to buy in January 2023

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended iShares International Equity ETFs – iShares Global Consumer Staples 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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