2 ASX shares I'd buy over CBA stock in December 2023

Here's why I'd pick these top shares over CBA right now.

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Commonwealth Bank of Australia (ASX: CBA) shares are some of the most popular investments on the S&P/ASX 200 Index (ASX: XJO). As the largest bank on the ASX (by far), as well as one of the most famous and prolific dividend payers, it's easy to understand ASX investors' affection for the CBA share price.

However, I've gone on the record before about my view that CBA shares are too expensive at their current valuation. So, this December, I'd much rather own these two other investments.

2 ASX shares to buy over CBA stock this December

National Australia Bank Ltd (ASX: NAB)

If we're talking ASX banks, I think NAB shares are a far better bet right now. For one, there are the potential dividends to consider. As of yesterday's close, CBA offered investors a trailing dividend yield of 4.35%. In contrast, NAB has a trailing yield of 5.94% on the table. Right off the bat, that's more than 36% more income that will start flowing your way.

Whilst I do admit that NAB lacks CBA's size and scale, I still think it is one of the most well-run banks on the ASX. I particularly like its dominance of the business banking sector, which its rivals don't seem to be able to put a dent in.

I would have preferred to buy NAB shares at the ~$25 levels we saw back in June. But at today's pricing of just over $28, I would still happily choose NAB over CBA today.

VanEck Vectors Wide Moat ETF (ASX: MOAT)

Another investment I would be delighted to buy over CBA is this exchange-traded fund (ETF). The VanEck Wide Moat ETF follows a Buffett-inspired concept of only investing in companies (in this case, American) that display evidence of possessing a wide economic moat.

This moat is an intrinsic competitive advantage a company possesses that helps it stave off competition. It could be in the form of a strong brand, a cost advantage, or selling a good or service that customers find difficult to pivot away from.

Most of the best companies in the world have some kind of moat that helps them stay at the top of the greasy pole. That's why you'll find the likes of Nike, Disney, Amazon, Kellanova (Kellogg), and Buffett's own Berkshire Hathaway amongst its recent holdings.

This ETF has delivered some impressive returns over many years. As of 31 October, investors have enjoyed an average of 14.31% per annum over the past five years.

That's more than we can say for CBA shareholders.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Amazon, Berkshire Hathaway, National Australia Bank, Nike, VanEck Morningstar Wide Moat ETF, and Walt Disney. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Berkshire Hathaway, Nike, and Walt Disney. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long January 2025 $47.50 calls on Nike. The Motley Fool Australia has recommended Amazon, Berkshire Hathaway, Nike, VanEck Morningstar Wide Moat ETF, and Walt Disney. 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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