That's why, if I were building a long-term exchange-traded fund (ETF) allocation today, these three VanEck funds would be near the top of my list.

VanEck Morningstar Wide Moat AUD ETF (ASX: MOAT)

When I think about holding an ETF for a decade or more, I keep coming back to the concept of a moat. It's an idea most closely associated with Warren Buffett, who has long argued that the best investments are businesses with durable competitive advantages, bought at sensible prices.

That's essentially what the VanEck Morningstar Wide Moat AUD ETF aims to do.

The ETF invests in US companies that are judged to possess sustainable economic moats, such as strong brands, high switching costs, or network effects. Crucially, it also incorporates a valuation discipline, tilting the portfolio toward fair valued stocks.

For a long-term investor, that combination of quality and price discipline is powerful. It's not about chasing whatever is popular at the time. It's about owning businesses that are built to last and giving them time to compound.

VanEck Video Gaming and Esports ETF (ASX: ESPO)

The VanEck Video Gaming and Esports ETF is the long-term growth play in this group, and I think the numbers back that up.

According to Statista, global gaming revenue is projected to reach US$564 billion in 2026 and grow at a compound annual rate of 6.8% through to 2030, taking the market to more than US$730 billion. The number of gamers worldwide is expected to climb to just over 3 billion users by the end of the decade, which tells me this is not a saturated market, even at its current scale.

What I like about the ESPO ETF is that it gives exposure to the companies building the infrastructure, platforms, and content that sit at the centre of this growth.

This VanEck ETF won't move in a straight line, and I wouldn't expect it to. But over a 10-year horizon, the combination of a growing user base, rising engagement, and expanding monetisation makes interactive entertainment a theme I'm comfortable backing for the long run.

VanEck Global Clean Energy ETF (ASX: CLNE)

Clean energy is a theme that has already had moments of hype, disappointment, and volatility. That's exactly why I think it makes sense to view it through a long-term lens.

Regardless of short-term policy shifts or commodity cycles, the direction of travel is clear. Energy systems are gradually transitioning toward cleaner, more sustainable sources. That transition will require enormous investment across generation, storage, grid infrastructure, and supporting technologies.

The VanEck Global Clean Energy ETF provides diversified exposure to stocks involved across the global clean energy value chain. Some will succeed more than others, but owning the theme through an ETF reduces single-company risk and allows time for the winners to emerge.

For me, the CLNE ETF is a way to participate in a multi-decade transformation without needing to perfectly time the cycle.

Foolish takeaway

Holding an ETF for a decade or more requires confidence in the underlying idea, not just recent performance.

The MOAT ETF gives me durable competitive advantages and valuation discipline. The ESPO ETF gives me exposure to long-term digital entertainment growth. The CLNE ETF gives me a stake in the global energy transition.

Together, they reflect how I like to invest for the long run: a mix of quality, growth, and structural change, with enough diversification to stay invested through whatever the market throws up along the way.

The post Why I would buy and hold these VanEck ETFs for a decade or more appeared first on The Motley Fool Australia.

For beginner investors, ASX ETFs can offer a way to enter the market with instant diversification.

It can also be a set and forget option, to avoid ongoing portfolio management. 

For experienced investors, new funds are constantly entering the market that can offer more specific focus through thematic investing. 

This year has seen plenty of new funds hit the market with more niche exposure. 

Another benefit of ASX ETFs is the prospect of strong returns. 

These three funds managed by VanEck have brought bigger returns than traditional indexes like S&P/ASX 200 Index (ASX: XJO) in the last year. 

Vaneck Vectors Global Clean Energy ETF (ASX: CLNE)

This ASX ETF is made up of 30 of the largest and most liquid companies involved in clean energy production and associated technology and clean energy equipment globally.

It falls into the category of ESG investing.

ESG is a growing theme amongst investors focussed on positively impacting the world through their investment choices.

According to VanEck, the fund targets business activities including but not limited to:

• biofuel & biomass energy production, technology & equipment
• ethanol & fuel alcohol production
• fuel cells technology & equipment
• geothermal energy production
• hydro electricity production, turbines & other equipment
• solar energy production, photo voltaic cells & equipment
• wind energy production, turbines & other equipment

In the last 12 months, the fund has risen 43.76%. 

That means a hypothetical investment of $10,000 made a year ago would today be worth approximately $14,376 today. 

VanEck Msci International Value ETF (ASX: VLUE)

This ASX ETF is made up of 250 international developed market large and mid-cap companies, with high value scores as calculated by: 

• price to book value
• price to forward earnings
• enterprise value to cash flow from operations.

Essentially, this fund targets companies in developed markets that are trading at attractive valuations relative to their fundamentals.

Its largest weighting by country is to the United States (44.8%) followed by Japan (22.5%). 

This strategy has clearly worked in the last year, as this ASX ETF has risen 27.20% in the last 12 months. 

This means a hypothetical investment of $10,000 made a year ago would today be worth $12,720 today. 

VanEck Australian Resources ETF (ASX: MVR)

This ASX ETF provides a portfolio of ASX-listed resources companies.

It's no surprise this fund has performed well. 

The S&P/ASX 200 Resources (ASX:XJR) index is up 27% this year. 

At the time of writing, it is made up of 31 holdings. 

This includes some of Australia's largest resource companies such as BHP Group (ASX: BHP) and Fortescue Metals Group (ASX: FMG). 

In the last 12 months, the fund has risen by 36.74%. 

This means an original investment of $10,000 made a year ago would today be worth $13,674. 

The post Guess how much $10,000 invested in these VanEck ASX ETFs a year ago is worth today? appeared first on The Motley Fool Australia.

The smartest investors focus on companies and funds positioned to thrive in the decades ahead with businesses exposed to megatrends like healthcare, clean energy, and digital transformation.

By leaning into these themes, you could potentially future-proof your portfolio while still enjoying the benefits of diversification.

Anchor your portfolio with stability

Every portfolio needs a reliable core. That's where exchange traded funds (ETFs) like the iShares S&P 500 ETF (ASX: IVV) come in. This fund tracks Wall Street's 500 largest stocks, from banks to tech giants to retailers, giving you broad exposure to the backbone of the US economy. It is a low-cost way to ensure your portfolio moves in line with the wider market.

Add exposure to megatrends

Once you've got a stable foundation, it is time to add in some growth opportunities. Take healthcare, for example. ASX shares like Cochlear Ltd (ASX: COH) and Sonic Healthcare Ltd (ASX: SHL) are global leaders in hearing implants and medical diagnostics. Both operate in industries with ageing populations and rising demand for advanced care. These are structural trends that aren't going away any time soon.

Another megatrend is clean energy. And for exposure to this, investors might look at the VanEck Global Clean Energy ETF (ASX: CLNE). It provides access to leading renewable energy stocks worldwide, including solar, wind, and battery storage innovators. As the world transitions to a low-carbon economy, these companies could play a central role.

Embrace digital disruption

Technology is another critical megatrend. Instead of relying on the usual suspects, you could consider the BetaShares Asia Technology Tigers ETF (ASX: ASIA). It offers exposure to some of Asia's fastest-growing tech stocks, such as Alibaba (NYSE: BABA) and Tencent (SEHK: 700), tapping into the region's expanding digital economy.

On the local market, Megaport Ltd (ASX: MP1) is carving out a niche in network-as-a-service, helping businesses simplify how they connect to cloud services worldwide. With global demand for cloud and AI connectivity rising, Megaport could be a quiet achiever over the long term.

Foolish takeaway

Future-proofing your wealth doesn't mean betting everything on one hot theme.

It is about building a solid base, then layering in exposure to sectors and companies driving global change. By combining broad-market ETFs with megatrend-focused shares like Cochlear, Sonic Healthcare, and Megaport, you could create a portfolio that balances stability with growth.

The post How to easily future-proof your ASX share portfolio appeared first on The Motley Fool Australia.

Investors in the VanEck Morningstar Wide Moat (AUD Hedged) ETF (ASX: MHOT) will receive the largest payment of $10.99 per unit.

Those who hold the unhedged VanEck Morningstar Wide Moat ETF (ASX: MOAT) will get the second-highest distribution of $7.56 per unit.

These two ETFs are different in that they do not try to mirror the performance of a major index like the S&P/ASX 200 Index (ASX: XJO).

Instead, the MOAT ETFs track about 50 US shares that have significant competitive advantages, or in other words, a wide 'moat'.

The wider the moat, the more protected a company's brand and its products or services are from competitors in the marketplace.

Here is a summary of VanEck ETFs that will be paying dividends to investors today.

It's payday for VanEck ASX ETF investors!

VanEck Global Clean Energy ETF (ASX: CLNE) will pay 7 cents per unit.

VanEck FTSE China A50 ETF (ASX: CETF) will pay $1.27 per unit.

VanEck Global Defence ETF (ASX: DFND) will pay 3 cents per unit. Find out more about this ETF here.

VanEck Morningstar Australian Moat Income ETF (ASX: DVDY) will pay 20 cents per unit.

VanEck MSCI International Sustainable Equity ETF (ASX: ESGI) will pay $2.34 per unit.

VanEck Video Gaming and Esports ETF (ASX: ESPO) will pay $1.04 per unit.

VanEck Gold Miners ETF (ASX: GDX) will pay 63 cents per unit.

VanEck Morningstar International Wide Moat ETF (ASX: GOAT) will pay $1.66 per unit.

VanEck MSCI Australian Sustainable Equity ETF (ASX: GRNV) will pay 57 cents per unit.

VanEck 5-10 Year Australian Government Bond ETF (ASX: 5GOV) will pay 11.5 cents per unit.

VanEck Global Healthcare Leaders ETF (ASX: HLTH) will pay 2 cents per unit.

Here are a few more…

VanEck Australian Property ETF (ASX: MVA) will pay 42 cents per unit.

VanEck Australian Banks ETF (ASX: MVB) will pay 40 cents per unit.

VanEck Australian Resources ETF (ASX: MVR) will pay 51 cents per unit.

VanEck Small Companies Masters ETF (ASX: MVS) will pay 32 cents per unit.

VanEck MSCI International Small Companies Quality ETF (ASX: QSML) will pay 9 cents per unit.

VanEck MSCI International Quality ETF (ASX: QUAL) will pay $1.23 per unit.

VanEck MSCI International Value ETF (ASX: VLUE) will pay $1.02 per unit.

VanEck ETFs among the market's top performers in FY25

According to ASX data, there were two VanEck ETFs among the six best-performing ETFs holding Aussie shares in FY25.

Ranked 4th, the VanEck Australian Banks ETF delivered a total annual return of 24.86%.

Ranked 6th, the VanEck Australian Property ETF produced a total annual return of 22.92%.

Another two VanEck ETFs featured in the six best-performing ETFs holding international shares in FY25.

Check them out here.

The post Invested in ASX MOAT or other VanEck ETFs? It's dividend day! appeared first on The Motley Fool Australia.

Earlier this week I covered the ETFs that had outperformed the S&P/ASX 200 Index (ASX: XJO) in the past 12 months. 

However it can be difficult to pull the trigger on funds that appear to be at or above fair value. 

Looking at pooled investment options that have fallen can be a great way to gain exposure to a sector or themed fund that has struggled in recent times, but has long term upside. 

Let's look at some ETFs that have fallen considerably in the last year. 

BetaShares Australian Resources Sector ETF (ASX: QRE)

This fund tracks the performance of an index comprising the largest ASX-listed companies in the resources sector, including BHP, Rio Tinto, Woodside Petroleum and more.

Its largest holding by weight is BHP Group Ltd (ASX: BHP) which makes up 35.5% of the fund. 

With thematic ETFs such as this one, you face increased volatility if the sector struggles. 

In the last year, the fund has fallen 8.03%. 

QRE carries high sector and commodity risk, significant volatility, concentration exposure, liquidity and tracking risks. It can offer strong returns when resource markets rally, but moves sharply on weak demand or global slowdowns.

This fund might suit investors who believe there is upside in the Australian resources and mining sectors despite having a tough past year. 

Global X S&P Biotech ETF (ASX: CURE)

This fund seeks to invest in companies that potentially stand to benefit from further advances in the field of genomic science, such as companies involved in gene editing, genomic sequencing, genetic medicine/therapy, computational genomics, and biotechnology.

It is made up of roughly 124 holdings, with no individual company representing more than 3.3% of the fund. 

Being another specifically themed ETF, this fund can face volatility when the sector faces difficulties. 

The fund is down 9.73% over the past year. 

The fund may appeal to investors looking for exposure in the health care sector which is underrepresented here in Australia. 

Vaneck Vectors Global Clean Energy ETF (ASX: CLNE)

CLNE ETF gives investors a diversified portfolio of 30 of the largest and most liquid companies involved in clean energy production and associated technology and clean energy equipment globally.

The fund includes independent power producers & energy traders, utilities companies and electrical equipment companies. 

These companies are largely from the US (34.7% of the portfolio) and New Zealand (12.2%). 

Despite this ESG fund focussing on an environmentally positive theme, it has struggled to bring investors returns. 

Over the last 12 months the fund is down 3.56% in the last year, and more than 40% since 2021. 

However, as the world transitions toward renewables, CLNE ETF offers diversified access to companies essential to this shift. 

It may appeal to investors looking for diversified entry into this sector or investors interested in ESG strategies.

The post 3 ASX ETFs that could be good value right now appeared first on The Motley Fool Australia.

The ex-dividend date for the distributions listed below is today, 1 July. The record date is 2 July.

The payment date is 25 July.

The biggest payment amount on the VanEck distribution list is a whopper at $10.99 per unit.

That will be paid to investors who own VanEck Morningstar Wide Moat (AUD Hedged) ETF (ASX: MHOT).

Investors in the unhedged version, the VanEck Morningstar Wide Moat ETF (ASX: MOAT), will receive the second-highest distribution of $7.56 per unit.

The VanEck Wide Moat ETFs are a bit different to the norm. They do not seek to track the performance of a major index, like most ETFs.

Instead, the ETFs hold a portfolio of about 50 US shares that have significant competitive advantages, or in other words, a wide moat.

Here is a condensed list of VanEck ETFs and how much each ETF will pay in dividends to their investors later this month.

Payday for VanEck ASX ETF investors

VanEck Global Clean Energy ETF (ASX: CLNE) will pay 7 cents per unit.

VanEck FTSE China A50 ETF (ASX: CETF) will pay $1.27 per unit.

VanEck Global Defence ETF (ASX: DFND) will pay 3 cents per unit. Learn more about this ETF here.

VanEck Morningstar Australian Moat Income ETF (ASX: DVDY) will pay 20 cents per unit.

VanEck MSCI International Sustainable Equity ETF (ASX: ESGI) will pay $2.34 per unit.

VanEck Video Gaming and Esports ETF (ASX: ESPO) will pay $1.04 per unit.

VanEck Gold Miners ETF (ASX: GDX) will pay 63 cents per unit.

VanEck Morningstar International Wide Moat ETF (ASX: GOAT) will pay $1.66 per unit.

VanEck MSCI Australian Sustainable Equity ETF (ASX: GRNV) will pay 57 cents per unit.

VanEck 5-10 Year Australian Government Bond ETF (ASX: 5GOV) will pay 11.5 cents per unit.

VanEck Global Healthcare Leaders ETF (ASX: HLTH) will pay 2 cents per unit.

Show us the money! Here are some more…

VanEck Australian Property ETF (ASX: MVA) will pay 42 cents per unit.

VanEck Australian Banks ETF (ASX: MVB) will pay 40 cents per unit.

VanEck Australian Resources ETF (ASX: MVR) will pay 51 cents per unit.

VanEck Small Companies Masters ETF (ASX: MVS) will pay 32 cents per unit.

VanEck MSCI International Small Companies Quality ETF (ASX: QSML) will pay 9 cents per unit.

VanEck MSCI International Quality ETF (ASX: QUAL) will pay $1.23 per unit.

VanEck MSCI International Value ETF (ASX: VLUE) will pay $1.02 per unit.

The post VanEck ASX ETF dividends: How much you'll get and when appeared first on The Motley Fool Australia.

ASX ETFs are more sensitive than most ASX shares to the financial calendar. Most of these funds pay out dividend distributions every quarter rather than the six-month interval that is normally the standard for ASX shares. These quarterly dividend distributions are typically aligned with the four quarters of the financial year.

As it happens, today is the first day of the 2025 financial year. And as such, we've heard from dozens of ASX ETFs today regarding their next dividend distribution. Many are also trading ex-dividend for said distributions this Monday.

Take the iShares S&P 500 ETF (ASX: IVV). Earlier this afternoon, we discussed the IVV ETF and its latest quarterly dividend distribution, which has just been announced. Investors in this index fund will enjoy a distribution next week on 11 July.

We learned that this dividend distribution would be worth 14.06 cents per unit. However, today is also the day that this ETF has traded ex-dividend. That's why we are seeing a big dip in the IVV unit price this Monday (currently down 1.34%).

It's not just the iShares S&P 500 ETF. Most iShares ETFs are following IVV's lead today. That includes everything from the iShares Core S&P/ASX 200 ETF (ASX: IOZ) and the iShares MSCI South Korea ETF (ASX: IKO) to the iShares Global Consumer Staples ETF (ASX: IXI) and the iShares Government Inflation ETF (ASX: ILB).

A big day for ASX ETFs

All of these exchange-traded funds just traded ex-dividend and will pay their next distributions on 11 July.

And it's not just iShares ETFs that are going through this process right now. Last Friday, we discussed the latest monster dividend from the VanEck Morningstar Wide Moat ETF (ASX: MOAT). Well, MOAT units have also traded ex-dividend for this monster payment today, joining almost all ETFs from VanEck.

In addition to MOAT, today is the day that the VanEck Global Clean Energy ETF (ASX: CLNE), the VanEck China New Economy ETF (ASX: CNEW), the VanEck Gold Miners ETF (ASX: GDX) and the VanEck Australian Equal Weight ETF (ASX: MVW), amongst others, have traded ex-dividend. These ETFs will all pay out their respective distributions on 23 July, later this month.

It's a similar story for Vanguard ETFs. Vanguard is the provider responsible for many of the ASX's most popular ETFs.

Today has seen the likes of the Vanguard Australian Shares Index ETF (ASX: VAS), the Vanguard MSCI Index International Shares ETF (ASX: VGS), the Vanguard Australian Shares High Yield ETF (ASX: VHY) and the Vanguard Diversified High Growth Index ETF (ASX: VDHG) trade ex-dividend. These funds, as well as most Vanguard ETFs, will pay out their latest dividends on 16 July this month.

So all in all, this Monday is a huge day for ASX exchange-traded funds. If you own one, chances are you've got a paycheque with your name on it in the mail as we speak.

The post Why it's a big day for ASX ETFs appeared first on The Motley Fool Australia.

After all, although many shares and ETFs get whacked for good reason, others can get caught up in a whirlwind of undeserved negative sentiment. This can prove to be a compelling buying opportunity if the investment's underlying quality remains sound.

Last week, we took a glance at some of the worst ASX 200 shares of 2023. But today, let's check out the worst-performing ASX ETFs of 2023, and discuss whether they might be worth another look in early 2024. We'll only be using unit price performance here, so these returns are not inclusive of any dividend distributions received.

The worst ASX ETFs of 2023 revealed

Here are the three worst ETFs to have had money in over 2023:

• The VanEck Global Clean Energy ETF (ASX: CLNE). This ETF started 2023 at $8.86 a unit but closed the year at just $7.59. That's a drop of 14.33%.
• The Global X Hydrogen ETF (ASX: HGEN). Global X Hydrogen ETF units also had a 2023 to forget. This ETF was going for $6.88 at the beginning of January 2022 but closed up last month at $5.49. That's a slide worth 20.2%
• The BetaShares U.S. Equities Strong Bear Hedge Fund – Currency Hedged (ASX: BBUS). BBUS units began the year at $10.82 but finished up at $6.86 for a loss of 36.6%.

Are these ETFs worth a bargain-bin buy?

No one loves a share market bargain more than I do. However, I won't be touching any of these ETFs now, or in the foreseeable future.

Why so negative? Well, it's the nature of these products that I find offputting. ASX ETFs are great, and I own many of them myself. However, I believe that the best ETFs are either broad-market index funds or else funds that pursue a proven and successful investing strategy. None of the listed funds above fall in either of these categories.

The VanEck Global Clean Energy ETF and the Global X Hydrogen ETF are thematic funds. They invest in a range of companies that all operate in a very specific niche. In CLNE's case, that would be renewable energy, and in HGEN's, hydrogen technologies.

Those are both commendable, future-facing industries that are right now in the infancy of their potential. Saying that, I don't believe that investing in a basket of companies that all operate within them at this time of global upheaval in the energy space is a good idea.

One or more of the holdings of CLNE and HGEN are probably going to have a prosperous future. But that will probably come alongside many of them failing to get off the ground.

As such, I don't think either fund is worthy of a significant investment.

What about an inverse ETF?

Even less so when it comes to the Betashares U.S. Equities Strong Bear Hedge Fund. This is an inverse, leveraged fund that is designed to rise in value when the US markets experience a fall. The reason why BBUS had such a poor year is that the US markets had a great one.

Betting against the long-term returns of the American share market is, in my view, an inherently awful idea. Especially when there's leverage involved. It's a bet against Apple, Microsoft, Alphabet and Amazon. Not to mention Coca-Cola, Berkshire Hathaway, McDonald's, Nike and hundreds of other quality companies that have generated huge returns for decades. Sound like a good long-term investment? I didn't think so either.

So I'll be staying away from the ASX ETF bargain bin this year with no regrets.

The post Are the 3 worst-performing ASX ETFs of 2023 worth a look right now? appeared first on The Motley Fool Australia.

These include a broad range of Australian and international index funds as well as those seeking to track a particular sector, commodity or theme.

One of the best things about ASX ETFs is their ability to add instant diversification to an investment portfolio. Even by owning a mere one or two such funds, an investor has the potential to gain investment exposure to a variety of sectors, company sizes and international markets.

But with so many now available, choosing where to invest can be challenging. So, we asked our Foolish writers which ASX ETFs they think offer top buying right now. Here is what the team came up with:

7 best ASX ETFs for February 2023 (smallest to largest)

VanEck Global Clean Energy ETF (ASX: CLNE), $126.62 million

Betashares Global Quality Leaders ETF (ASX: QLTY), $353.86 million

VanEck Morningstar Wide Moat ETF (ASX: MOAT), $494.11 million

Betashares Global Cybersecurity ETF (ASX: HACK), $640.44 million

Betashares Nasdaq 100 ETF (ASX: NDQ), $2.54 billion

BetaShares Australia 200 ETF (ASX: A200), $2.74 billion

VanEck MSCI International Quality ETF (ASX: QUAL), $3.07 billion

(Market capitalisations as at market close on 10 February 2023)

Why our Foolish writers love these ASX exchange-traded funds

VanEck Global Clean Energy ETF

What it does: The VanEck Global Clean Energy ETF aims to invest in the 30 largest and most liquid global companies working in clean energy production, as well as associated technology and equipment.

By Brooke Cooper: Part of being a long-term investor is looking to the horizon in an effort to envisage what the world might look like in 10, 20, or 50 years' time. And one megatrend I think will be here to stay is the energy transition.

I expect demand for renewable energy sources – and investment in the space – will continue increasing as the world moves to decarbonise.

But how might one make the most of such an opportunity? There's an ASX ETF for this!

I think the VanEck Global Clean Energy ETF could be an easy way to get exposure to the decarbonisation megatrend.

Motley Fool contributor Brooke Cooper does not own units of the VanEck Global Clean Energy ETF.

Betashares Global Quality Leaders ETF

What it does: This ETF invests in a portfolio of 150 global companies that rank highly on quality metrics. Those four metrics include return on equity (ROE), debt-to-capital, cash flow generation ability and earnings stability.

By Tristan Harrison: Global shares suffered in 2022 as higher interest rates enabled investors to generate semi-decent returns from traditionally safer asset classes like cash and bonds.

Since the end of 2021, the Betashares Global Quality Leaders ETF has dropped by close to 20%. I don't believe the businesses this ASX ETF holds have seen a 20% reduction in their quality. But, they are now a fifth cheaper than before.

Also, in a potential downturn, I think the high-quality shares within this ETF are more likely than the average business to perform well.

For an annual management fee of just 0.35%, I like the diversification and quality overlay this ETF has to offer.

Motley Fool contributor Tristan Harrison does not own units of the Betashares Global Quality Leaders ETF.

VanEck Morningstar Wide Moat ETF

What it does: This ETF invests in a portfolio of US shares identified as having an intrinsic competitive advantage.

By Sebastian Bowen: This actively-managed ETF is one of my oldest and most valued investments. It invests in a basket of US shares that have been identified as possessing a wide moat, or distinct competitive advantage.

This is a concept popularised by the legendary Warren Buffett and refers to characteristics, such as a strong brand, that help a company ward off competition.

The approach has worked well for this ETF, with the Wide Moat ETF averaging a 14.54% per annum return since 2015.

As such, this is an investment I would happily recommend this February.

Motley Fool contributor Sebastian Bowen owns units of the VanEck Morningstar Wide Moat ETF.

Betashares Global Cybersecurity ETF

What it does: This ASX ETF offers investors exposure to 36 large-cap global cybersecurity stocks, predominantly listed in the United States. Its top holdings are Broadcom, Cisco Systems, Fortinet, Infosys, and Palo Alto Networks.

By Bernd Struben: Among the lessons learned in 2022 is that cybercriminals are here to stay. This was driven home by the massive data breaches experienced by Optus and Medibank. And instances of hacking were far from limited to just those two big players.

Hoping to keep their data secure, 80% of larger Australian companies intend to increase their cybersecurity spending in 2023, according to research by Netskope. That's after 63% of large companies reported ramping up spending in 2022.

With hackers targeting individuals and corporations across the world, global cybersecurity spending will most likely continue to grow in the foreseeable future. And I believe that should help support the Betashares Global Cybersecurity ETF price and its distribution payouts.

At the current price, this ASX ETF pays a trailing annual distribution yield of 8.3%, unfranked.

Motley Fool contributor Bernd Struben does not own units of the Betashares Global Cybersecurity ETF.

Betashares Nasdaq 100 ETF

What it does: This ETF invests in 100 of the largest non-financial businesses on the US NASDAQ exchange. Examples include Microsoft, Apple, Alphabet, Amazon, Tesla, Adobe, Intel, and Meta Platforms.

By Bronwyn Allen: We live in a high-tech age, and that's never going to change. I believe current short-term economic headwinds like rising inflation and interest rates are providing a great buy-the-dip opportunity on tech stocks.

I like the Betashares Nasdaq 100 ETF far more than some other tech-focused ETFs, like the BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC). This is simply because NDQ holds a bunch of world-leading brands, whereas Australia's tech sector is junior by comparison.

Personally, if I'm going to invest in tech, I prefer to put my money into an ETF with Microsoft-sized businesses that are earning great, reliable profits, as opposed to tech start-ups — even if they are promising.

The NDQ ETF share price lost 31% of its value over the 12 months of 2022, but it's already up by around 11% in 2023!

Motley Fool contributor Bronwyn Allen does not own units of the Betashares Nasdaq 100 ETF.

BetaShares Australia 200 ETF

What it does: Providing cheap access to the top 200 Australian companies, this Betashares ETF is a no-frills way of earning the average return of the Australian share market. Closely emulating the S&P/ASX 200 Index (ASX: XJO), the A200 ETF predominantly comprises the big banks and miners.

By Mitchell Lawler: Trends come and go – sometimes they fail to materialise altogether. While I can see the value in sector-based or thematic ETFs, I much prefer to invest in companies, not themes.

Instead, where I see ETFs being highly valuable is for low-cost, passive index investing. It might be considered 'boring', but we know that the ASX 200 has always moved to higher highs over time, whilst also producing a delicious dividend yield.

Even the great Warren Buffett is a major proponent of low-cost index investing.

Notably, the Betashares Australia 200 ETF is the cheapest Australian shares ETF on offer – even beating those offered by Vanguard – with a management fee of 0.07%.

Motley Fool contributor Mitchell Lawler does not own units of the Betashares Australia 200 ETF.

VanEck MSCI International Quality ETF

What it does: This ASX ETF gives investors exposure to a diversified portfolio of approximately 300 quality, international companies listed on exchanges in developed markets around the world (excluding Australia).

By James Mickleboro: I think one of the best ways to grow your wealth is by investing in quality shares over a long period. This ETF provides investors with an easy way to do exactly that by pulling together approximately 300 of the world's highest-quality companies.

To be included in the fund, a company needs to have low leverage, high earnings growth rates, and high returns on equity (ROE).

A few examples of companies that tick these boxes and are included in this ASX ETF are Apple, ASML, Microsoft, Nike, Nvidia, and Visa.

The VanEck MSCI International Quality ETF has fallen by almost 7% over the past year so could offer a buying opportunity in February.

Motley Fool contributor James Mickleboro does not own units of the VanEck MSCI International Quality ETF.

The post Top ASX ETFs to buy in February 2023 appeared first on The Motley Fool Australia.

Some ETFs like the Vanguard Australian Shares Index ETF (ASX: VAS) track an index with businesses that are spread across a variety of sectors, such as the S&P/ASX 300 Index (ASX: XKO).

But, there are a growing number of ETFs that provide investors with access to a specific industry or theme.

A report by Sharesies has identified which ETFs investors have been buying. While the Vanguard Australian Shares Index ETF was the most popular, I'm going to outline the next two most popular ETFs that were bought in November 2022 on the Sharesies platform.

VanEck Global Clean Energy ETF (ASX: CLNE)

The purpose of the ETF is to give investors exposure to 30 of the largest companies involved in "clean energy production and associated technology and equipment globally", according to VanEck. These businesses are from both 'developed' and 'developing' markets.

There are four main areas that this ASX ETF is invested in – independent power producers and energy traders (33% of the portfolio), electrical equipment (29.3%), semiconductors and semiconductor equipment (24.8%), and electric utilities (12.9%).

In terms of geographic weighting, the US is the biggest allocation with 41%, but many countries have a weighting of more than 2.5%: Spain (10%), China (9.2%), Israel (7.5%), New Zealand (6.6%), Denmark (5.3%), Canada (4.6%), Japan (4.2%), Brazil (2.9%), and Austria (2.6%).

At the end of November 2022, these were the ten biggest positions in the portfolio: Solaredge Technologies, Vestas Wind Systems, Sunrun, First Solar, Enphase Energy, EDP Renovaveis, Bloom Energy, Xinyi Solar, Chubu Electric Power, and Brookfield Renewable. Those positions make up around 48% of the total portfolio.

This ASX ETF comes with an annual management fee of around 0.65%.

BetaShares Climate Change Innovation ETF (ASX: ERTH)

This investment provides a more diversified exposure to the fight against climate change. It's invested in up to 100 global companies that make at least 50% of their revenue from "products and services that help to address climate change and other environmental problems through the reduction or avoidance of CO2 emissions".

Sectors covered within the ETF include clean energy providers, along with companies tackling "green transport, waste management, sustainable product development, and improved energy efficiency and storage".

Looking at the allocations, green energy gets the biggest allocation with 23.8% of the portfolio, followed by 'enabling solutions' (21.9%), green transportation (21.3%), sustainable products (21.1%), and water and waste improvements (11.9%).

The portfolio is a bit more US-focused than the first one I outlined, with a weighting of 53.9% to the United States. Other weightings of more than 2% include China (8.6%), South Korea (6.2%), Denmark (5.1%), France (4.4%), Japan (3.5%), Spain (2.5%), Sweden (2.3%), and Germany (2.1%).

The top holdings of this ASX ETF look very different from the VanEck one. Here are the biggest 10 positions: Trane Technologies, Enphase Energy, Eaton, Vestas Wind Systems, American Water Works, Ecolab, Samsung, Cie De Saint-Gobain, East Japan Railway, and BYD.

This ETF comes with an annual management fee of 0.65%.

The post 2 ASX ETFs that investors are using to bet on the future appeared first on The Motley Fool Australia.

Inflation and higher interest rates have punished the valuations of plenty of businesses that are expected to grow their operations over the coming years.

After all of the investor panic that we saw earlier in the year, there appear to be signs that investors are now returning to the market.

Is confidence returning?

According to the Sharesies Investing Insights report for October 2022, there was "steady buying by the majority of investors, with some choosing to buy and sell the market moves."

For me, this was one of the most interesting takeaways from the report:

Twice as much buying as selling on the Sharesies platform this month. Buy orders outstripping sell orders is a consistent pattern on the platform over the last six months, regardless of market volatility.

Which ASX shares are people buying?

ASX mining shares were some of the most popular investments last month according to the report.

In terms of the total amount invested, in dollar terms, these were the top ten: Sayona Mining Ltd (ASX: SYA), New Hope Corporation Limited (ASX: NHC), Fortescue Metals Group Limited (ASX: FMG), Core Lithium Ltd (ASX: CXO), Pilbara Minerals Ltd (ASX: PLS), Qx Resources Ltd (ASX: QXR), Telstra Corporation Ltd (ASX: TLS), BHP Group Ltd (ASX: BHP), Qantas Airways Limited (ASX: QAN) and Flight Centre Travel Group Ltd (ASX: FLT).

However, the list was a little different when you look at which were the top 10 most bought ASX shares by the number of investors. Here is the list: BHP, Fortescue, Commonwealth Bank of Australia (ASX: CBA), Pilbara Minerals, Wesfarmers Ltd (ASX: WES), Core Lithium, Woolworths Group Ltd (ASX: WOW), Qantas, Coles Group Ltd (ASX: COL) and Macquarie Group Ltd (ASX: MQG).

Perhaps unsurprisingly, investors were drawn to a number of ASX's blue chips.

Strong levels of ETF investing

According to the report, exchange-traded funds (ETFs) saw four times as much buying in dollar volume traded terms as selling in October.

Sharesies suggested that this was "likely driven by investors employing a dollar-cost averaging investment strategy".

These were some of the ETFs getting investor attention last month:

Vanguard Australian Shares Index ETF (ASX: VAS)

VanEck Global Clean Energy ETF (ASX: CLNE)

BetaShares Climate Change Innovation ETF (ASX: ERTH)

iShares Core MSCI World Ex Aus ESG Leaders ETF (ASX: IWLD)

iShares Core MSCI Australia ESG Leaders ETF (ASX: IESG)

Foolish takeaway

While investors may be coming back to the market, it doesn't mean that the market has reached a bottom yet. Only time will tell whether June was the month we saw the lowest prices for many ASX shares.

The post Are ASX share investors getting their mojo back? appeared first on The Motley Fool Australia.

That doesn't make sense, right?

Why did ASX renewable shares fall last year?

Wentworth Williamson analyst Martin Marais sums up the problem. He says the renewables industry is currently "incapable of rapidly ramping up production after years of underinvestment".

As a result, "the supply/demand imbalance may take many months, if not years, to fix".

Although climate change is firmly on the agenda in most western nations today, that doesn't mean the renewables sector is in a position to respond to it immediately.

Some of the businesses we refer to as ASX renewable shares are brand new companies, while others are existing energy providers. Both are having to spend oodles of cash to build their renewable energy offerings to meet this sudden demand.

A ramp-up in costs isn't so good when there isn't yet corresponding revenue growth to offset it. And that means profit warnings, according to RC Global chief investment officer Roy Chen.

In a recent article in the Australian Financial Review (AFR), Chen said:

There are some of these clean energy companies that have issued profit warning after profit warning, and warned profit margins could even turn negative because costs are becoming so much.

These are some of the factors making market watchers a bit wary of ASX renewable shares for now.

A snapshot of falling prices in FY22

For this article, we're defining ASX renewable shares as companies producing clean power. Let's take a look at how some of the big players did in FY22.

• The Contact Energy Limited (ASX: CEN) share price dropped 14.5% in FY22
• The Meridian Energy Ltd (ASX: MEZ) share price fell 15% in FY22
• The Mercury NZ Ltd (ASX: MCY) share price tumbled 32% in FY22
• The Infratil Ltd (ASX: IFT) share price lost 6%. (Infratil isn't a power producer but it's a major investor in green energy assets with a market cap of $5 billion. So, it's worth including here)
• Genesis Energy Ltd (ASX: GNE) shares fell 24.5% in value in FY22.

There's no index for ASX renewable shares but the VanEck Global Clean Energy ETF (ASX: CLNE) provides a good proxy. Units in the exchange-traded fund lost 22% in value during FY22.

The post Why did ASX renewable shares fall while electricity prices increased in FY22? appeared first on The Motley Fool Australia.

They span several sectors including resources, materials, and energy. Think lithium explorers, battery producers, electric vehicle manufacturers, clean energy providers… arguably, they're all in the renewables space. But for now, let's just focus on clean power producers.

Power has been a hot topic in the Australian economy of late. Electricity prices have skyrocketed and are contributing significantly to rising inflation, which is currently running at 5.1% per annum.

This problem highlights the urgent need for more renewable energy sources. Not only to lower power costs for consumers but also to support a lurching grid at risk of more frequent blackouts and outages.

So, why did several ASX renewable energy shares fall in June?

ASX renewable energy shares dip in June

Well, let's remember that ASX renewable shares are a relatively young and growing part of the market. And like any growth sector, it will have its ups and downs — and that's what we saw in June.

Mind you, June was a volatile month for ASX shares in general. The S&P/ASX 200 Index (ASX: XJO) lost 8.9% and the S&P/ASX All Ordinaries Index (ASX: XAO) lost 9.5% over the month.

First up, let's look at the broad picture.

Clean energy shares generally form part of the utilities segment of the ASX energy sector. The S&P/ASX 200 Energy Index (ASX: XEJ) fell 0.3% in June and is up 16.9% over the year to date.

There's no index for ASX renewable shares, however, we can look to the VanEck Global Clean Energy ETF (ASX: CLNE) for guidance. It's an exchange-traded fund trading on the ASX and it's chock-a-block full of global renewable energy companies. So it serves as a good proxy for ASX renewable energy shares.

The VanEck Global Clean Energy ETF share price dipped 2.5% in June. Year to date, it's down 9.6%.

Here's how some of the big players performed

Let's look at the performance of the bigger players among ASX renewable energy shares in June.

The Meridian Energy Ltd (ASX: MEZ) share price dropped 3% in June. Year to date, Meridian shares are down 6.5%.

Meridian is New Zealand's largest energy producer and uses 100% renewables. It owns five wind farms, scores of commercial solar arrays, and seven hydropower stations, including the country's largest.

The Mercury General Corporation (ASX: MCY) share price dropped 9.5% in June. Year to date, Mercury shares are down 16.5%.

Mercury is another New Zealand-based green energy provider that uses 100% renewables. The company owns nine hydro stations that supply 10% of the country's electricity annually. It owns five geothermal plants and four wind farms. It's currently building what will be New Zealand's largest wind farm.

The Infratil Ltd (ASX: IFT) share price rose by 0.6% in June. Year to date, Infratil shares are down 7.7%.

Infratil is a different kind of ASX renewable energy share. It's an infrastructure investment company that owns several green energy assets in New Zealand.

Genesis Energy Ltd (ASX: GNE) shares lost 0.15% in value in June. Year to date, Genesis shares are down 6.9%.

Genesis is a leading New Zealand electricity and gas retailer that owns a bunch of thermal and renewable generation assets.

Some ASX renewable shares had a shocker

The Genex Power Ltd (ASX: GNX) share price dropped 14% in June. Year to date, Genex shares are down 32.5%.

Genex is an Australian power generation company specialising in the generation and storage of renewable energy.

Ongoing challenges for ASX renewable energy shares

As my Fool colleague Bernd Struben reported in March, the renewables sector has experienced years of underinvestment, so it's difficult to ramp up production rapidly to meet today's soaring demand.

Plus, many clean energy companies are spending a lot — as you do when you're in growth mode — which is narrowing profit margins.

And it appears ASX investors don't like that, especially when a booming commodities cycle is delivering massive profits to the big resources companies digging fossil fuels out of the ground.

The post Here's why ASX renewable shares slipped in June appeared first on The Motley Fool Australia.

Examples over time include electricity and the internet. But right now, there are new megatrends at play.

Let's take a look at what they are and which ASX shares could be impacted?

What are the megatrends in 2022

Five megatrends identified in a recent Livewire article include battery minerals, decarbonisation, automation, digital currencies and the ageing population.

Speaking to the publication, Felicity Thomas from Shaw and Partners recommended ETFS Battery Technology and Lithium ETF (ASX: ACDC) as a way to get exposure in the battery minerals space. She cited the Biden administration's investment in electric vehicles (EV).

Thomas said:

For me, this is a buy. I really like future-facing commodities and ACDC is a way to get diversified exposure to that kind of theme. The US has also created a 50% electrification target, so I think there's going to be a push there.

However, Pivot Wealth founder Ben Nash had a different take on this fund, suggesting investors sell it. He said, "I think if you look at the performance of this ETF relative to the market and relative to commodity prices over the period, it probably doesn't seem to be lining up for me."

The ETFS Battery Tech and Lithium ETF has fallen nearly 15% year to date.

Looking at decarbonisation, Thomas recommends VanEck Global Clean Energy ETF (ASX: CLNE). She again cited the United States investment in green technology, adding:

For me, CLNE is a buy. It's the only ETF that is actually a pure-play green energy ETF. So I think it's quite unique and I believe that the US last year spent a lot of money on climate change, so I think it's going to come into its own.

However, Nash again had a different take, rating this ETF as a sell:

I think it is extremely niche, and while I do believe in the theme and that the space will grow over time, for me, the lack of diversification just suggests a bit more volatility for investors.

VanEck Global Clean Energy ETF has dropped nearly 13% year to date.

The post What is a megatrend and which ones are impacting ASX shares right now? appeared first on The Motley Fool Australia.

• 2021 was a top year for ETFs, but a new report finds 2022 could be even better
• With index funds at saturation, we can expect some more exotic ETF offerings
• Investors are using ETFs in new ways, such as hedging

Last year was a great one for ASX exchange-traded funds (ETFs). As we've covered extensively here on the Fool, 2021 not only saw total funds under management in the ETF sector hit record highs. But we also saw the successful listing of a number of new ETF products. One, the BetaShares Crypto Innovators ETF (ASX: CRYP), actually broke the trading volume record for a newly-listed fund.

So with all that success under the belt, what does 2022 hold in store for ASX ETFs?

Well, a report in The Australian this week reveals that investment bank Citi has released a 'deep dive' report into the global ETF sector and its outlook for 2022.

The report finds that the global index fund market is reaching saturation point. It found the "most widely-followed indices have been replicated by ETFs". As such, the report finds that ETF providers are increasingly motivated to "expand towards more novel product approaches".

We have seen this with our own eyes on the ASX. Although 2021 welcomed many new ETFs to the market, almost none of them were index funds. Instead, the new funds extended coverage of thematic trends or select industry groups. Other 2021 ETF debuts included VanEck Vectors Global Clean Energy ETF (ASX: CLNE) and BetaShares Cloud Computing ETF (ASX: CLDD).

ETF growth on the ASX could just be getting started

The report finds that this trend is likely to continue into 2022 as investors increasingly look for diversification outside the traditional index fund structure.

Further, Citi is predicting that the high inflows we saw last year will continue. This will be driven by "the very strong returns of recent years". It also sees interest in ESG and ethical investing continuing to dominate investors' interest.

This trend, the bank believes, may continue to benefit from a tailwind of improving global standards in ethical/ESG analysis. This, the report finds, has been beset in the past by lax standards and 'greenwashing'.

Interestingly, Citi also predicts a new way in which investors (especially those on the professional side) will use ETFs. It points to a trend in the US where institutional investors employ ETFs for 'tactical' moves such as hedging. The bank reckons this will expand to all markets, including Australia.

So it looks as though the rise of ETFs on the ASX is certainly here to stay if this report is to be believed. So get ready to hear more about ASX ETFs as we move through 2022. 

The post Shopping for some new ASX ETFs in 2022? Here's what you need to know appeared first on The Motley Fool Australia.

Breaking down an ESG ETF

When it comes to ethical ESG ETFs, there are normally two classes that a fund will fall into. There are funds that follow a broad market index, such as the S&P/ASX 200 Index (ASX: XJO), but then 'filter' out any unsavoury companies from the index. And then there are those that invest in a particular ESG-aligned industry, such as renewable energy. There is a big difference between these two approaches.

Let's first look at the index funds. The BetaShares Australian Sustainability Leaders ETF (ASX: FAIR) is one such fund. This ETF tracks an index that screens ASX companies based on ESG criteria such as fossil fuel production, gambling, tobacco, alcohol, environmental destruction and animal cruelty. It holds 80 ASX shares, which includes some big names like Telstra Corporation Ltd (ASX: TLS), CSL Limited (ASX: CSL) and Xero Limited (ASX: XRO). As such, you are still getting some of the diversification benefits a simple ASX 200 index fund might provide, but without the companies that have been identified as not possessing ESG characteristics.

There are other ASX ESG ETFs that follow a similar methodology. The Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH) is one. The VanEck Vectors MSCI Australian Sustainable Equity ETF (ASX: GRNV) is another. There are even funds available that take this approach and apply it to overseas shares instead of ASX companies. Such funds include the VanEck Vectors MSCI International Sustainable Equity ETF (ASX: ESGI) and the BetaShares Global Sustainability Leaders ETF (ASX: ETHI).

What about sector-specific ETFs?

That's only one side of the ASX ethical ESG ETF coin though. There are also a number of funds out there that chase specific ESG sectors. Take the ETFS Battery Tech & Lithium ETF (ASX: ACDC). This fund aims to give exposure to "the energy storage and production megatrend, including companies involved in the supply chain and production for battery technology and lithium mining."

Whilst this fund does not have a specific ESG mandate, it is still focused on an industry with 'green' credentials in aiming to reduce greenhouse gas pollution. However, a fund like this arguably provides less diversification than one of the funds named above. That's because all of the holdings in this ETF are companies that operate in a very specific sector.

The same can be said of the VanEck Vectors Global Clean Energy ETF (ASX: CLNE) or the BetaShares Climate Change Innovation ETF (ASX: ERTH).

Whilst there is nothing wrong with this approach, it's worth pointing out that there is a lot more concentration on one particular section of the ESG market. This carries its own set of risks compared to a more diversified fund.

Foolish takeaway

Ethical ESG investing looks as though it's here to stay as an investing trend. But if you are seeking out ESG funds to invest in, make sure you know what kind of exposure you are looking for. Not all ethical ETFs are equal — some of these funds might be offering a portfolio that's too concentrated for your goals, or risk profile. Just because something has 'ESG' or 'ethical' doesn't mean it's automatically a good investment.

The post An ASX investor's guide to ESG-focused ETFs appeared first on The Motley Fool Australia.