3 top-notch ASX shares on my May watchlist

Here's why these 3 ASX shares, including Afterpay Ltd (ASX: APT), have made my ASX May watchlist.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

May has proved an interesting month so far on the S&P/ASX 200 Index (ASX: XJO). After the lows we saw in March, May has (thus far) continued the positive momentum we saw throughout April – with a few hiccups along the way (today being one of them).

So here are the 3 ASX shares that I've got on my May watchlist. I'm hoping for a great price to buy them this month, but we'll have to wait and see if that eventuates!

BetaShares Nasdaq 100 ETF (ASX: NDQ)

This exchange-traded fund (ETF) from BetaShares tracks the 200 largest companies in the US Nasdaq exchange, which is known for its 'tech-heavy' composition. Its largest holdings are names like Microsoft, Amazon.com, Apple and Alphabet (Google), so you know you are getting quality here.

NDQ has rebounded strongly since the lows we saw in March, so I'm waiting for a dip for this one. Nonetheless, it's a fund I would love to see in my portfolio this May. Most of the companies that are shaping and changing the world can be found within this ETF and so I think it's a great long-term growth investment.

Afterpay Ltd (ASX: APT)

I'm still kicking myself that I missed out on loading up on Afterpay shares when the buy now, pay later pioneer was (ever so briefly) under $9 a share in March. Today, it stands at over $41 after we heard last week that Chinese giant, Tencent Holdings has acquired a 5% stake in Afterpay.

I'm not finding the current price too exciting, but I would love to buy into Afterpay if the price dips back down to anywhere near the levels we saw in March. I think this company is one of the most exciting growth stories on the ASX and I'm hoping to get a slice of it this May.

MFF Capital Investments Ltd (ASX: MFF)

MFF is a listed investment company (LIC) that focuses on the top companies in the US. I love that its top holdings are the payment giants Mastercard and Visa, 2 companies that are growing at breakneck speed. Other holdings include Wells Fargo and Microsoft. As such, I think this company is a great share to use for portfolio diversification and long-term capital growth.

I already have some MFF shares but would love to pick up some more if the price dips back down this month. March saw lows around $2.20 – a level I would love to see again for a buying opportunity in May.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares), Magellan Flagship Fund Ltd, Mastercard, and Visa. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Mastercard, and Visa. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Alphabet (A shares) and Mastercard. 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.

More on ⏸️ Best ASX Shares

Three travellers laughing and smiling outside an airport
⏸️ Best ASX Shares

If you'd invested $2,000 in Webjet (ASX:WEB) shares 10 years ago, here's what it would be worth now

The travel expert has proved a winner for long-haul investors...

Read more »

illustration of three houses with one under a magnifying glass signifying mcgrath share price on watch
⏸️ Best ASX Shares

The 5 best ASX real estate shares of the 2021 financial year unmasked

Office space, industrial storage, retail malls and residential. These companies cover them all.

Read more »

asx share price increase represented by golden dollar sign rocketing out from white domes of lithium
Energy Shares

5 best ASX energy shares of the 2021 financial year revealed

As the world emerged from initial COVID lockdowns, the demand for energy soared.

Read more »

best asx 200 shares of financial year 2021 represented by 2021 formed with gold piggy bank
⏸️ Best ASX Shares

Meet the best performing ASX 200 shares of FY21. Are yours on the list?

These companies have been crowned the best of the best in FY21...

Read more »

retail asx share price represented by shopping trolley full of cash
⏸️ Best ASX Shares

How I'd build a 'best stocks to buy now' list

Focusing on the quality and prices of companies from a diverse range of sectors could make it easier to build…

Read more »

asx share price on watch represented by investor looking through magnifying glass
⏸️ Best ASX Shares

How I'd aim to find top shares to buy in March 2021

Comparing companies with their peers and considering how they might change in future could allow an investor to find the…

Read more »

Brest ASX shares represented by piggy bank surrounded by autumn leaves
⏸️ Best ASX Shares

Top ASX shares to buy in March 2021

Our Foolish contributors have compiled a list of some of the ASX shares experts are saying to Buy in March.…

Read more »

rising asx share price represented by man with arms raised against blackboard featuring images of dollar notes
⏸️ Best ASX Shares

Why the Wesfarmers (ASX:WES) share price has soared 24% in a year

The Wesfarmers Ltd (ASX:WES) share price has been a solid performer over the past year. Here's why this ASX blue…

Read more »