With 2020 now closer than 2018 (scary thought indeed), it might be time to think about what kind of shares you want in your portfolio for next year and beyond. The 2020s are likely to have just as much disruption and change as the 2010s and 2000s, therefore picking shares with something of an ‘edge’ is a good strategy.
Here are two ASX shares that I think fit the bill.
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
MOAT is one of my favourite ASX ETFs (exchange traded funds) and will soon be redomiciled to the ASX, meaning you don’t have to fill out any pesky US tax forms. As part of this shift, MOAT will also now offer a dividend reinvestment program (DRIP), which I always appreciate as it helps to compound your returns efficiently. MOAT invests in US companies that possess a ‘wide economic moat’ or large comparative advantage. As such, it only holds companies that are fundamentally resistant to competition and disruption, making it a great long-term hold in my view. Some of its current top holdings include Kellogg’s, General Mills, Amazon and Campbell Soup.
Afterpay Touch Group Ltd (ASX: APT)
Afterpay has continued to dazzle the ASX this year, reporting a stronger than expected UK launch and continued success in the US market as well as more than $5 billion in underlying sales for the 2019 financial year. Buying now and paying later (BNPL) is a trend that I don’t think will lose popularity anytime soon. This company continues to shake off competition like a wet dog and I think its success in ‘verbing’ its brand will continue to keep it at the forefront of the BNPL space. I also think it’s telling that US payments giant Visa wants to work with Afterpay rather than trying to crush it, giving me confidence in Afterpay’s long-term success.
Both of these stocks would make great picks for 2020 and beyond (in my opinion). Investing for tomorrow is hard, but if you ask yourself which investments are likely to be thriving next year or even in ten years’ time, I’m happy with these two.
Where to invest $1,000 right now
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Sebastian Bowen owns shares of VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.