If you are trying to find some new additions for your investment portfolio in October, then read on!
That's because analysts at Catapult Wealth have revealed one ASX exchanged traded fund (ETF) to buy and one blue chip ASX 200 share to hold, courtesy of The Bull.
Let's see what it is recommending to its clients this week:
Image source: The Motley Fool
Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO)
The ASX ETF that is being tipped as a buy by Catapult Wealth is the Vanguard MSCI Australian Small Companies Index ETF.
As you might have guessed from its name, this ASX ETF provides Aussie investors with low-cost, broadly diversified exposure to small cap shares listed on the Australian share market.
It is currently invested in around 170 Australian shares, with holdings diversified across both small and mid-sized companies which make up about 14% of the Australian market.
Among its holdings are retailer JB Hi-Fi Ltd (ASX: JBH), rare earths producer Lynas Rare Earths Ltd (ASX: LYC), and enterprise technology provider TechnologyOne Ltd (ASX: TNE).
Commenting on the ASX ETF, Catapult Wealth said:
VSO invests in small to medium sized companies listed on the ASX. Given many of Australia's largest listed companies are considered either overvalued, or with limited upside, we see more growth opportunities in companies within the small to mid-sized sectors. Top VSO holdings included JB Hi-Fi and Technology One at August 31. What also appeals about VSO is exposure to a diversified portfolio, which spreads risk.
ResMed Inc. (ASX: RMD)
ResMed could be an ASX 200 blue chip share to hold right now according to Catapult Wealth.
It is a leading sleep disorder treatment company which has been growing at a strong rate for well over a decade.
While the broker thinks it is one of the highest quality companies on the local market, it isn't trading at a level that is inviting enough to label it a buy. It said:
ResMed makes medical devices to treat sleep disordered breathing, such as sleep apnoea. Many sleep disordered sufferers are yet to be diagnosed, which paints a brighter outlook for sales growth. Growing awareness, aided by new technologies and health trends, could further support demand for treating sleep disordered breathing. The stock is regarded as one of the highest quality healthcare companies and appears attractively valued after retreating from $45.07 on August 25 to trade at $40.85 on October 2.
