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The Vanguard Australian Shares Index ETF (ASX: VAS) is the most popular exchange-traded fund (ETF) on the ASX by a large margin. So we know from the name itself that this ETF invests in Australian ASX shares. But which ones exactly? Time for a deep dive into the Vanguard Australian Shares ETF.

So the Vanguard Australian Shares Index ETF is an index fund at its core, as the name suggests. Instead of the more pervasive S&P/ASX 200 Index (ASX: XJO), this ETF instead follows the S&P/ASX 300 Index (ASX: XKO).   

Thus, every share in the ASX 300 is also found in the underlying portfolio of the Vanguard Australian Shares ETF.

The ASX 300 is similar to the ASX 200, but instead of following the top 200 ASX shares on the share market by market capitalisation, it includes an additional 100 shares from the lower end of the market. This adds diversification and scope at the expense of weightings towards the top end of the ASX.

For example, the ASX’s largest share, BHP Group Ltd (ASX: BHP), would have a weighting of around 10.4% in an ASX 200 ETF today. But in Vanguard’s ASX 300 ETF, BHP only represents 9.02% of the portfolio at present. A small but significant difference.

Which ASX stocks make up the Vanguard Australian Shares ETF?

But let’s get into the weeds of the Vanguard Australian Shares ETF. So as of 31 October, these were the top ten holdings of the fund and their weightings in the fund’s portfolio:

1. BHP with a portfolio weighting of 9.02%
2. Commonwealth Bank of Australia (ASX: CBA) with a weighting of 8.53%
3. CSL Limited (ASX: CSL) with a weighting of 6.45%
4. National Australia Bank Ltd (ASX: NAB) with a weighting of 4.91%
5. Westpac Banking Corp (ASX: WBC) with a weighting of 4.03%
6. Australia and New Zealand Banking Group Ltd (ASX: ANZ) with a weighting of 3.65%
7. Woodside Energy Group Ltd (ASX: WDS) with a weighting of 3.26%
8. Macquarie Group Ltd (ASX: MQG) with a weighting of 2.94%
9. Wesfarmers Ltd (ASX: WES) with a weighting of 2.46%
10. Telstra Group Ltd (ASX: TLS) with a weighting of 2.16%

So that’s the top ten. But following these companies, there are names like Woolworths Group Ltd (ASX: WOW), Rio Tinto Limited (ASX: RIO), Fortescue Metals Group Limited (ASX: FMG) and Coles Group Ltd (ASX: COL) all in the top 20.

Like all index funds, constituents in the Vanguard Australian Shares ETF depend on the weightings of the index itself. So if a company does badly and its share price falls, its weighting in the index (and thus, the ETF) will also fall. Conversely, shares that are doing well will also rise over time.

That’s why NAB, for example, is now the second-largest ASX bank share, where it was in fourth place just a few years ago. This makes an index ETF like this one a perfect ‘bottom drawer’ investment since it requires very little diligence from the investors themselves.   

The post Which stocks are in the Vanguard Australian Shares Index ETF (VAS) right now? appeared first on The Motley Fool Australia.

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More reading

• Why is the Westpac share price tumbling on Thursday?
• This fund manager prefers NAB shares over the other ASX 200 banks. Here’s why
• Goldman says these ASX 200 bank shares can deliver 12%+ returns for three years
• How to have your ASX 200 dividend cake and eat it too
• What’s going on with ASX 200 mining shares on Thursday?

Motley Fool contributor Sebastian Bowen has positions in CSL Ltd., National Australia Bank Limited, and Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET, Telstra Corporation Limited, and Wesfarmers Limited. The Motley Fool Australia has recommended Macquarie Group Limited and Westpac Banking Corporation. 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 Westpac Banking Corp (ASX: WBC) share price is on course to end the day in the red.

In afternoon trade, the banking giant’s shares are down 2.5% to $23.25.

Why is the Westpac share price dropping?

The good news for shareholders is that the weakness in the Westpac share price today is not because something bad has happened.

In fact, it’s actually for a good reason! This morning Westpac’s shares traded ex-dividend for its upcoming final dividend payment.

This means that the rights to this dividend remain with whoever was the owner of the shares at yesterday’s close. So, if you buy a parcel of shares today, you’ll not receive this dividend when it is paid and the seller will receive it instead.

Clearly, you don’t want to pay for something that you won’t receive. So, to account for this, the Westpac share price has dropped to reflect it.

Actually, had its shares not traded ex-dividend this morning, they would likely be trading higher today. That’s because the Westpac share price has dropped by 59 cents, but its dividend payment is even greater.

The Westpac dividend

Earlier this month, Westpac declared a fully franked final dividend of 64 cents per share. This was up from 60 cents per share a year earlier.

If you didn’t take part in the bank’s dividend reinvestment plan, you can look forward to receiving these dividends in your nominated bank account in just over a month on 20 December. Just in time for some last minute Christmas shopping if you’re celebrating the holiday season!

The post Why is the Westpac share price tumbling on Thursday? appeared first on The Motley Fool Australia.

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More reading

• Goldman says these ASX 200 bank shares can deliver 12%+ returns for three years
• Why is Wilsons selling down its ASX 200 bank shares?
• Hoping to bag the latest Westpac dividend payment? Here’s what you need to know
• 2 ASX dividend giants to buy now: brokers
• ASX 200 bank shares: fundie picks winners and losers of the big four

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Westpac Banking Corporation. 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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ASX lithium share Winsome Resources Ltd (ASX: WR1) has rocketed 220% since this time last month.

Yep, that’s no typo. It’s also up 25% so far today.

So, what’s driving investor interest in the lithium stock?

Why has this ASX lithium share soared 218% in a month?

The Winsome Resources share price has been a clear beneficiary of the rocketing demand for lithium. As nations around the world ramp-up electric vehicle production, the price of the battery-critical metal is trading at all-time highs.

And, according to a report by the Australian government, investors can expect lithium prices to charge even higher into 2023 before moderating in 2024 as supply begins to catch up with demand.

While that’s benefited most ASX lithium shares, Winsome Resources has gained far more than the average.

The explorer’s share price really took off on 28 October. That came after the company reported it has identified significant pegmatite intercepts in a drilling campaign at its Adina and Cancet lithium projects, located in Canada.

As additional promising data from the exploratory drilling came in over the following days, the ASX lithium share continued to power higher.

Why is Winsome Resources raising capital?

If you tried to buy or sell shares in Winsome Resources recently, you may have noticed the company was in a trading halt on Friday and Monday.

Shares began trading again on Tuesday when the explorer announced a $6.8 million capital raise.

The funds will be raised via the “Flow-Through Shares” provisions under Canadian tax law at $1.67 per share. That’s 54% higher than the current share price of $1.09.

Winsome said the new shares in the ASX lithium explorer “will be immediately on-sold through a block trade agreement to select high-quality domestic and offshore institutional investors”.

Commenting on the capital raise, Winsome Resources managing director Chris Evans said:

This capital raise comes at an ideal time for the Company and allows us to secure funds under a very attractive arrangement facilitated through the Canadian Government’s generous tax incentives for mining exploration companies. It allows us to raise capital at a premium price without the level of dilution that would occur via a standard, share placement offer.

Winsome Resources share price snapshot

Winsome Resources listed on the ASX just under a year ago, on 30 November 2021.

Since then, the ASX lithium share has gained 193%. Over that same period, the All Ordinaries Index (ASX: XAO) has lost 3%.

The post Why has ASX lithium share Winsome Resources rocketed 220% in a month? appeared first on The Motley Fool Australia.

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More reading

• Up 140% in a month, why has ASX lithium share Winsome Resources just been halted?
• These 3 ASX resources shares exploded more than 35% on Monday
• 5 big ASX announcements making news this week
• Guess which ASX lithium share is rocketing 57% today
• 3 ASX resources shares leaping over 15% today

Motley Fool contributor Bernd Struben 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 Altium Limited (ASX: ALU) share price has been a strong performer on Thursday.

In afternoon trade, the electronic design software company’s shares are up 3% to $37.60.

Why is the Altium share price rising?

Investors have been bidding the Altium share price higher on Thursday following the release of the company’s annual general meeting update.

As you might have guessed from the performance of its shares today, management revealed that it has started FY 2023 strongly.

Altium’s CFO, Richard Leon, commented:

[T]hrough the first four months of FY23 we have seen very good performance. For our PCB business, average revenue per user, or “ARPU” is trending upward as our mainstream customers continue to adopt Pro-level platform subscriptions. Adoption of Altium 365, our cloud platform, also continues to grow, as does the count of users per account, creating a network effect.

Leon revealed that the only thing that isn’t going in the company’s favour is the strong US dollar, which is causing foreign exchange headwinds. Nevertheless, the CFO believes is “entirely manageable” and not holding Altium back from achieving its half or full year objectives.

Speaking of which, Leon provided some colour on what to expect for FY 2023. He revealed that Altium is on track to achieve its guidance, stating:

We expect total revenue to be between $255 and $265 million USD, with both our PCB software business and cloud platform business growing nicely. And, we expect underlying EBITDA margin to be between 35 and 37% for the full year in FY23.

Long term goals

The company’s chairman, Sam Weiss, also provided the market with an update on its longer term goals.

As some readers will be aware, Altium has set itself the goal of achieving revenue of US$500 million and subscribers of 100,000 by 2026.

However, it has now amended this slightly. While it continues to target revenue of US$500 million, it believes it will only need a base of 75,000 to 90,000 subscribers to hit this goal. This is based on an average price of between $3,000 and $3,500 per subscriber.

The post Why is the Altium share price charging higher? appeared first on The Motley Fool Australia.

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More reading

• Why Altium, Pendal, Terracom, and Webjet shares are pushing higher
• Worried about a stock market crash? I’d buy these 5 rock-solid ASX shares to ride it out
• Hub24 or Altium: Which ASX 200 tech stock is the better buy right now?
• ASX 200 tech shares jump 6%
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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 Altium. 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 Materials Index (ASX: XMJ) is in the red today, down 1.18%. But this ASX lithium share is bucking the trend.

The Burley Minerals Ltd (ASX: BUR) share price is on the rise by 25% today to 30 cents. However, in earlier trade, Burley Minerals shares skyrocketed 67% to 40 cents.

So why is this ASX lithium share having such a top run today?

Acquisition news for lithium explorer

Investors are buying up Burley shares today on lithium acquisition news. Burley has entered an “exclusive agreement” to take ownership of 100% of the Chubb Lithium Project in Quebec, Canada.

Further, under the deal, Burley would also acquire the Mt James and Dragon Projects, prospective for lithium, in the Gascoyne region of Western Australia.

The project widens Burley’s exploration pipeline to high-grade lithium-bearing spodumene projects.

Drilling at the Chubb Lithium project has shown the presence of spodumene-bearing lithium pegmatites.

Burley is also an iron ore explorer, with a 70% stake in the Yerecoin Project near Perth in Western Australia.

Commenting on today’s news, Burley managing director Wayne Richards said:

We are very pleased to announce the signing of this Agreement to acquire such high-potential Lithium Projects in jurisdictions complemented by other major Lithium explorers and developers.

The strategic and geographic location of all three potential projects are located in world class mining provinces and in Tier 1 jurisdictions of Australia and Canada.

ASX lithium share Burley’s share price snapshot

Burley Minerals has soared 27% in a year, while it has surged 46% in the year to date. In the past month, the company’s share price has rocketed ahead 122%.

For perspective, the ASX 200 Materials Index has climbed 14% in a year.

This ASX lithium share has a market capitalisation of about $10.3 million based on the current share price.

The post Guess which ASX lithium share exploded 67% today appeared first on The Motley Fool Australia.

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• Why is the Altium share price charging higher?
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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 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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National Australia Bank Ltd (ASX: NAB) shares have been among a select group of S&P/ASX 200 Index (ASX: XJO) stocks that have benefited from rising interest rates this year.

Prior to the RBA’s first rate increase in more than a decade on 4 May, Australia’s official cash rate stood at the rock bottom 0.10%.

While the banks obviously charge higher rates for their loans, and offer less on their deposits, the historically low cash rate squeezed their net lending margins. So as rates have climbed, the banks’ net interest margins have broadly increased. Which has offered a welcome tailwind for NAB shares.

Yet, while all the ASX 200 banks have benefited from higher rates, Andrew Martin, principal of Alphinity Investment Management, told The Motley Fool he prefers NAB shares over the other big bank stocks. (Stay tuned for the full interview, next week.)

Why NAB rather than some of the other ASX 200 bank shares?

Martin said, “The banks are one of the few sectors that are getting [earnings] upgrades. Banks are beneficiaries of higher rates. That’s still playing through.”

He added that NAB had done “particularly well, in a relative sense” in the current environment.

So, why NAB rather than one of the other ASX 200 bank shares?

According to Martin:

I think NAB is executing better. They have really reinvented themselves over the last five years.

They’ve reclaimed their title as the best business bank in the country. Business is actually going really well, despite everything else that’s going on. They’ve managed to have a better margin outcome than their peers. And they’ve managed their costs better. So their growth trajectory looks better than some of the others.

At the current price, NAB shares pay a trailing dividend yield of 5.0%, fully franked.

How has NAB been performing?

Despite underperforming some analyst expectations, NAB reported strong FY 2022 results last week.

Among the highlight, cash earnings increased 8.3% from the prior year to $7.1 billion. Statutory net profit was also up 8.3% from FY 2021 to $6.9 billion. And the bank reported an exit net interest margin of 1.72%.

Year to date, NAB shares have gained around 4% while the ASX 200 has lost 6%.

The post This fund manager prefers NAB shares over the other ASX 200 banks. Here’s why appeared first on The Motley Fool Australia.

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More reading

• Goldman says these ASX 200 bank shares can deliver 12%+ returns for three years
• Why is Wilsons selling down its ASX 200 bank shares?
• ASX 200 bank shares: fundie picks winners and losers of the big four
• Why Allkem, Core Lithium, Flight Centre, and NAB shares are dropping today
• Why is the NAB share price sinking today?

Motley Fool contributor Bernd Struben 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is fighting hard to stay in positive territory. At the time of writing, the benchmark index is up 0.1% to 7,129 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are rising:

Altium Limited (ASX: ALU)

The Altium share price is up 4% to $38.02. This follows the release of the electronic design software company’s annual general meeting update. At the event, Altium reaffirmed its guidance for FY 2023. Management said: “We expect total revenue to be between $255 and $265 million USD, with both our PCB software business and cloud platform business growing nicely. And, we expect underlying EBITDA margin to be between 35 and 37% for the full year in FY23.”

Pendal Group Ltd (ASX: PDL)

The Pendal share price is up 10% to $4.91. This follows news that the courts are pressuring Perpetual Limited (ASX: PPT) to complete its acquisition of the rival fund manager. Perpetual’s shares have sunk on the news. This is because this action is likely to scupper its own potential takeover by a consortium comprising BPEA Private Equity Fund VIII and Regal Partners.

Terracom Ltd (ASX: TER)

The Terracom share price is up 8% to 90.5 cents. This morning this coal miner announced that its board has declared a fully franked dividend of 10 cents per fully paid ordinary share for the quarter ended 30 September. This comprises an ordinary dividend of 7.5 cents per share and a special dividend of 2.5 cents per share.

Webjet Limited (ASX: WEB)

The Webjet share price is up 11% to $6.24. Investors have been buying this online travel agent’s shares following the release of a strong first half update. Webjet reported a 223% increase in TTV to $2,143 million and a 217% jump in revenue to $175.7 million. On the bottom line, the company delivered an underlying net profit after tax of $32 million, up from a loss of $29.2 million a year earlier.

The post Why Altium, Pendal, Terracom, and Webjet shares are pushing higher appeared first on The Motley Fool Australia.

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More reading

• Why did the Perpetual share price just plummet 14%?
• Worried about a stock market crash? I’d buy these 5 rock-solid ASX shares to ride it out
• Why Core Lithium, Creso Pharma, Nickel Industries, and Perpetual shares are dropping
• Why did these ASX 200 shares just crack new, multi-year highs?
• Webjet share price jumps 10% on ‘spectacular turnaround’

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 Altium. The Motley Fool Australia has recommended Webjet Ltd. 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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Morgan Stanley has warned that the recent rally in ASX 200 shares could soon come to an end.

The broker believes a stop to the rally could come in the form of rising interest rates and a pullback in consumer spending, thus reducing corporate earnings, the Australian Financial Review reported.

The S&P/ASX 200 Index (ASX: XJO) has lifted 10.4% since 3 October to the present day. It’s currently up 0.32% in today’s trading session.

Let’s cover how Morgan Stanley expects rising interest rates to affect ASX 200 shares moving forward.

What did Morgan Stanley say?

Morgan Stanley’s head of Australian strategy Chris Nichol said we may not have felt the full effects of rising interest rates, which will put pressure on companies’ bottom lines.

He said:

Investors should brace for impact from the lagged effects of an aggressive tightening cycle. The next six months will see fuller effects from an aggressive monetary hiking cycle impacting domestic focused earnings.

Nichol also believes consumers could be underestimating the effect that rising interest rates might have on the economy, which could be leading to a sense of overconfidence in their spending habits.

[Consumers] are not fully calibrating the true extent of the adjustment in disposable income and asset wealth ahead whilst also potentially underappreciating the job required of policymakers to achieve their goals.

The net result of rising interest rates is that housing prices could fall by as much as 20%, Nichol said. This, in turn, may finally force consumers to spend less on discretionary items, thus kicking off a recessionary cycle in the economy.

However, another expert believes ASX 200 shares could have reached their bottom and are poised to rally again.

Have ASX 200 shares bottomed out?

AMP economist Dr Shane Oliver thinks there have been some “fundamental improvements” in the backdrop of ASX 200 shares that occurred during October.

He said the main reason is that inflation appears to have peaked in the United States, dropping from a high of 9.1% in June to 7.7% year-on-year in October.

Oliver notes that with inflation easing, future interest rate hikes by the Fed are likely to be less severe, thus reducing the chance they will put the economy into a recessionary tailspin.

US equities could also be benefiting from a couple of tailwinds in the short-term, Oliver said, including US midterm elections and the fact ASX 200 shares have entered into a bullish part of the year. These cyclical factors could also be giving them a lift.

Oliver also suggested China could look to focus on growing its economy and lift COVID-zero restrictions by the middle of next year.

Summarising his position, Oliver said the following on the longer-term outlook for ASX shares:

We remain optimistic about shares on a 12-month horizon as investors will start to focus on monetary easing from late next year and then economic recovery.

The post Why ASX 200 ‘investors should brace for impact’: Morgan Stanley appeared first on The Motley Fool Australia.

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More reading

• Why did these ASX 200 shares just crack new, multi-year highs?
• Guess which ASX 200 lithium director just snapped up $250,000 worth of their company’s shares
• Buy these ASX 200 shares now before the market wakes up: fund manager
• 5 things to watch on the ASX 200 on Thursday
• 3 ASX mining shares on ice today pending big news

Motley Fool contributor Matthew Farley 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 Perpetual Limited (ASX: PPT) share price is tumbling on news of its planned takeover of fund management business Pendal Group Ltd (ASX: PDL).

Early this morning, the companies announced a change to the consideration mix on the table for the takeover target. Later, they revealed a court decision related to a hypothetical breach cost.

It comes after a consortium upped its bid for Perpetual to $33 per share last week. While the bid was ultimately rejected, it seems to have spurred concern about Perpetual’s planned acquisition of Pendal.

The Perpetual share price is down 14% at the time of writing, trading at $27.16.

Let’s take a closer look at the latest from the financial services firm.

What’s going wrong for the Perpetual share price?

The market is bidding the Perpetual share price lower on Thursday on the back of a flurry of news regarding its takeover bid for S&P/ASX 200 Index (ASX: XJO) financials peer Pendal.

First, news broke the pair had agreed to revise the mix of cash and scrip initially put forward to acquire Pendal. The offer price on the table hasn’t changed alongside the mix.

If the deal goes ahead, Pendal shareholders will now receive one Perpetual share for every seven Pendal shares they hold, as well as $1.65 cash per Pendal share.

Originally, Perpetual offered one share for every 7.5 Pendal shares and $1.976 cash per share.

Perpetual said the new terms “further strengthen the balance sheet and enhance the financial flexibility for the combined group”.

Additionally, the companies announced a court decision regarding a ‘break fee’ today.

The Supreme Court of New South Wales declared a $23 million break fee — which Perpetual would be elegible to pay Pendal if it abandoned the takeover — would not be an exclusive remedy. Pendal said:

This means … Pendal [could] seek orders to enforce Perpetual’s obligations to complete the scheme, including by way of injunctive relief or orders of specific performance.

That’s likely a relief to Pendal shareholders but worrying to those invested in Perpetual stock. An improved acquisition proposal for the latter could impact its deal with the former.

The post Why did the Perpetual share price just plummet 14%? appeared first on The Motley Fool Australia.

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More reading

• Why Core Lithium, Creso Pharma, Nickel Industries, and Perpetual shares are dropping
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Here are the 10 most shorted ASX shares
• Why Elders, Flight Centre, Perpetual, and Telstra shares are dropping

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 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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Markets have been in turmoil this year, as central banks take decisive action in an attempt to stomp out inflation. Yet, some are still concerned it could get worse for ASX shares amid calls for further rate hikes.

I don’t think it is wise to try and predict where the share market will go from here in the short term. Although, if a bear market is a concern, it can be worthwhile positioning a portfolio in a way that gives you confidence in your investments through a challenging time.

If the goal is to invest in companies that are well-positioned for economic uncertainty, this is worth a read.

Here are five ASX shares I believe are worth holding through a rocky market.

Healthy foundations

Exposure to quality healthcare shares can be worthwhile during a stagnant or declining economy. Unlike other areas of the market, the healthcare industry is considered to be non-discretionary. People generally prioritise health and regard it as essential.

In this category, Pro Medicus Limited (ASX: PME) and Cochlear Limited (ASX: COH) stand out as rock-solid opportunities.

Both of these companies operate in industries — medical imaging and hearing devices — that will likely continue to see demand irrespective of prevailing conditions.

In addition, Pro Medicus and Cochlear are well capitalised with $90.6 million and $586.7 million in net cash as of 30 June 2022.

One ASX share keeping you covered

Another relatively defensive industry to invest in during turbulent times is insurance. Although, ASX-listed companies providing the insurance policies usually run on thin margins — around 5% or less. In contrast, insurance brokering and underwriting tend to print profits at a thicker margin.

I would consider AUB Group Ltd (ASX: AUB) an attractive way of investing in this relatively inelastic industry. Since its founding in 1985, AUB has demonstrated its ability to consistently compound revenue and earnings over long periods of time.

Furthermore, as a broker, AUB stands to benefit from a more price-conscious consumer. The team at Ophir Asset Management recently named this ASX share as one with potential upside.

A dash of defensive innovation

Some might ditch exposure to innovation to protect the portfolio against a stock market crash. However, I believe there are some highly-innovative, fast-growing ASX shares that are also extremely robust.

Taking out the final two spots of my five rock-solid buys are PWR Holdings Ltd (ASX: PWH) and Altium Limited (ASX: ALU). A cooling solutions company and a PCB design software provider may not appear to be rock-solid, but here’s my take.

These companies are operating within industries boasted by strong tailwinds. Demand for advanced cooling solutions is growing with the adoption of electric vehicles. Likewise, circuit boards are finding their way into everything as digital devices consume analog hardware.

Importantly, PWR and Altium are both exceptionally well-run businesses. Zero debt, above 20% earnings margin, and high returns on capital. I struggle to envisage a future where these ASX shares provide below-market returns over the long term.

The post Worried about a stock market crash? I’d buy these 5 rock-solid ASX shares to ride it out appeared first on The Motley Fool Australia.

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More reading

• Experts name 3 of the best ASX growth shares to buy in November
• Hub24 or Altium: Which ASX 200 tech stock is the better buy right now?
• 8 All Ords shares that soared 10% or more today
• Here are the top 10 ASX 200 shares today
• ASX 200 tech shares jump 6%

Motley Fool contributor Mitchell Lawler has positions in Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Cochlear Ltd., PWR Holdings Limited, and Pro Medicus Ltd. The Motley Fool Australia has positions in and has recommended PWR Holdings Limited and Pro Medicus Ltd. The Motley Fool Australia has recommended Austbrokers Holdings Limited and Cochlear Ltd. 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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