Are these 2 top ASX growth shares buys right now?

These two ASX growth shares have been hit in 2022. Are they buys?

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Key points

  • These two ASX growth shares have fallen in 2022
  • VanEck Morningstar Wide Moat ETF invests in businesses expected to maintain competitive advantages for many years
  • Cettire is a high-growth, luxury e-commerce business that is planning expansion into China

ASX growth shares have seen plenty of volatility over the last three months.

The Russian invasion of Ukraine has led to big oil price swings. Rapid inflation is adding more uncertainty for interest rates.

But after all of this volatility, are these two ASX growth shares now an opportunity?

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

This is an exchange-traded fund (ETF) that looks to invest in some of the leading US businesses with strong economic moats.

An economic moat refers to the competitive advantages that a business has. Moats can come in many different forms, such as brand power, intellectual property, cost advantages, and so on.

The investment analysts at Morningstar give the businesses that they cover a ‘moat’ rating. It’s only the businesses that the analysts think will almost certainly continue making excess profits for at least a decade (and, probably, for two decades or more) that get counted as having a wide moat.

From that list of businesses with long-term competitive advantages, the analysts only choose stocks for the portfolio that are at good value compared to the estimate of fair value.

The MOAT ETF provides disclosure about its biggest positions. On 17 March 2022, the positions with a weighting of at least 2.75% of the portfolio were: Cheniere Energy, Lockheed Martin, Corteva, Berkshire Hathaway, Bristol Myers Squibb, Altria, Dominion Energy, Wells Fargo, and Merck & Co.

As VanEck says, performance is not a guarantee of future results. Over the past five years, it has produced net returns of an average of 17.1% per annum.

Cettire Ltd (ASX: CTT)

Cettire is a leading luxury retailer that sells many thousands of products from hundreds of brands. The Cettire share price has dropped 56% since the start of 2022.

The ASX growth share’s core business is growing quickly, even as markets reopen from COVID-19 lockdowns. In January 2022, the company achieved gross revenue growth of 242%.

Cettire said with its FY22 half-year result that it has started to unlock the growth opportunity in multiple high-value luxury goods markets. The company’s management is running the business to maximise revenue through investing in marketing and winning customers to drive long-term shareholder value.

The company recently announced that it was entering the Chinese online luxury market, as well as a partnership with China’s largest online retail platform JD.com. Cettire says this is a $150 billion potential market opportunity.

The JD.com partnership will help Cettire drive traffic, brand awareness, and accelerate growth. JD.com has more than 500 million active customers.

The ASX growth share said it has been developing a local talent pool in mainland China focusing on world-class engineering talent.

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. owns and has recommended Cettire Limited. The Motley Fool Australia has recommended Cettire Limited and VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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