Do you have some cash to invest? High-quality ASX shares may be worth looking at in the current environment. Businesses that are able to deliver profit growth could keep delivering returns.
It could be interesting to look at businesses with US dollar earnings because the Australian dollar is particularly strong compared to the last three years. However, currency shouldn't play too much of an impact into investment considerations.
These are two investments to consider:
Pushpay Holdings Ltd (ASX: PPH)
Pushpay provides a donor management system, including donor tools, finance tools and a custom community app, and a church management system to the faith sector, non-profit organisations and education providers located mostly in the US.
The ASX share says that it provides leading solutions simplify engagement, payments and administration, enabling customers to increase participation and build stronger relationships with their communities.
Pushpay also has a subsidiary which it acquired called Church Community Builder which has a software as a software (SaaS) church management system, mostly in the US. It allows churches to connect and communicate with their community members, record member service history, track online giving and perform a range of administrative functions.
The tech company's combined offering of Pushpay and Church Community Builder, called ChurchStaq, is proving to be very popular with clients.
In the company's latest operational and guidance update, management said the business continues to outperform its internal expectations.
The ASX share said that processing volumes over the month of December 2020 was slightly higher than its internal forecast when guidance was most recently updated. December donation volumes are usually substantially higher than other months, it was even higher than expected.
Pushpay said that the strong processing volume achieved in December 2020 combined with continued operating leverage improvements supported a guidance update. The ASX share is expecting earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) to be between US$56 million to US$60 million in FY21.
The company is aiming for more growth after making an initial investment of resource into developing and enhancing the customer proposition for the Catholic segment of the US faith sector. Management believe this represents a significant milestone for the company.
It's aiming to become the preferred provider of mission critical software to the US faith sector.
The Pushpay share price is valued at 25x FY23's estimated earnings.
iShares S&P 500 ETF (ASX: IVV)
This ASX share is an exchange-traded fund (ETF) which is invested in 500 of the biggest and best American businesses.
Warren Buffett himself likes to recommend an S&P 500 fund for regular people to invest in because of the businesses, diversification and low fees.
The management fee is exceptionally low, at just 0.04% per annum. Almost all of the returns stay in the hands of investors.
The diversification is good. It's invested in 500 businesses across various industries including IT, healthcare, consumer discretionary and financials and so on.
iShares S&P 500 ETF's largest holdings are some of the world's biggest businesses including: Apple, Microsoft, Amazon, Alphabet, Facebook, Tesla, Berkshire Hathaway, JPMorgan Chase, Johnson & Johnson, Visa, Walt Disney, NVIDIA, Procter & Gamble, Mastercard and PayPal.
There are also smaller businesses, but still recognisable, at the smaller end of the fund including Under Armour, GAP, Ralph Lauren, Campbell Soup and Western Union.
The ETF has been performing strongly over the last decade, with a net return of 17.3% per annum in the 10 years to 31 March 2021.
