In a new report, Wickenden says the longer-term impact of the Iran war will centre around global energy self-sufficiency.

Investors have responded by ploughing funds into 5 ASX ETF thematics.

Let's take a look.

Energy producers

An example is the Global Energy Companies Currency Hedged ETF (ASX: FUEL), which is 30% higher in the year to date (YTD).

Another example is the commodity-price-based energy ETF, Betashares Crude Oil Index Currency Hedged Complex ETF (ASX: OOO).

OOO ETF was the best performer among the more than 400 ASX ETFs on the market last month, returning 55% due to the global oil shock.

Uranium

Betashares offers investors the Global Uranium ETF (ASX: URNM), which is up 15% in the YTD.

The uranium arena is volatile, however, James Gerrish from Market Partners says small modular reactors are the way of the future.

In a recent Money Matters newsletter, Gerrish said:

Nuclear power accounts for ~10% of global electricity generation today with demand set to rise substantially over the coming years as AI usage ratchets up.

With the uranium market transitioning into a structural tightening phase, and a high probability of deficit emerging later this decade, the URNM ETF should push higher in the coming years.

Defence

Vaneck Global Defence ETF (ASX: DFND) is one of the most popular defence ETFs on the market today.

DFND ETF has risen 34% over the past 12 months amid NATO committing to a substantial lift in defence spending at America's urging.

Critical minerals

Australia's last mining boom, from the early 2000s through to 2013, was mainly driven by iron ore and coal exports to China.

Experts say the next one already underway is being driven by critical minerals tied to electrification, power generation, and energy security.

They include copper, uranium, lithium, rare earths, and silver.

Betashares Energy Transition Metals ETF (ASX: XMET) was among the 6 best-performing international shares-based ASX ETFs last year.

XMET ETF delivered a 100% return while Global X Green Metal Miners ETF (ASX: GMTL) returned a similarly impressive 81%.

Agricultural commodities

The oil shock has sparked concern over the global supply of fertiliser, which is crucial for crop production.

Natural gas is a key feedstock for nitrogen-based fertilisers like ammonia and urea.

This means higher oil and gas prices can significantly increase fertiliser costs.

Betashares offers the Global Agriculture Companies Currency Hedged ETF (ASX: FOOD), which has risen 41% over the past year.

The post 5 thematics driving ASX ETF investment today: expert appeared first on The Motley Fool Australia.

Cameron Gleeson, Betashares, said geopolitical events like this can create sudden swings in markets. 

This has certainly been felt throughout March.

In a report released yesterday, he outlined two potential paths for markets: a prolonged conflict and disruption to global oil supply, or a de-escalation within a matter of weeks. 

He also highlighted several ASX ETFs that may help investors position their portfolios accordingly.

How does the current conflict impact ASX portfolios?

There are several reasons the current conflict in the Middle East is influencing markets.

The most immediate influence to markets is typically energy prices, which have had significant movement this past week on mixed messages from the Trump administration and Tehran's defiance. 

According to the report from Betashares, impact to global oil supply can quickly influence other areas of the economy like inflation expectations, central bank policy and the global growth outlook.

Here are two possible outcomes and how investors could adjust their portfolios.

Its important investors understand these scenarios are illustrative only and not predictions.

Potential path one: Prolonged conflict

Mr Gleeson said if tensions escalate and oil shipments through the Strait of Hormuz face sustained disruption, energy prices may remain elevated for some time. 

According to the report, even if Trump succeeds in dismantling Iran's nuclear program and triggering regime change, the outcome could still create a power vacuum in which factions within Iran continue to threaten energy shipments.

If you are looking for the single most important indicator of risk in this crisis, it's the price of oil. Oil's reaction has been volatile, but some investors have tried to use it as a "geopolitical hedge" for when other asset valuations come under pressure.

The ASX ETF that offers the most direct exposure to changes in the price of oil is the BetaShares Crude Oil Index ETF – Currency Hedged (Synthetic) (ASX: OOO). 

The Motley Fool's Sebastian Bowen provided a thorough breakdown of the fund and its positioning relative to the current conflict earlier this month. 

Other ASX ETFs that may be worthy of consideration if you expect a prolonged conflict and ongoing oil crisis include: 

• BetaShares Global Energy Companies ETF – Currency Hedged (ASX: FUEL) – Provides exposure to some of the world's largest oil and gas producers, with significant production outside the Gulf region.
• BetaShares Global Agriculture Companies ETF – Currency Hedged (ASX: FOOD)
• BetaShares Gold Bullion ETF – Currency Hedged (ASX: QAU)

Potential path two: De-escalation

Mr Gleeson said alternatively, if tensions ease quickly and shipping through the Strait of Hormuz resumes uninterrupted, oil prices could retrace and the geopolitical risk premium embedded in markets may fade. 

In that environment, global equities and cyclical sectors could benefit from improving sentiment and a renewed focus on economic growth.

A rising tide lifts all boats and one might expect all equity markets to rally, but below we identify some of the higher beta opportunities for such a recovery.

Some ASX ETFs mentioned include: 

• Betashares Msci Emerging Markets Complex Etf (ASX: BEMG)
• Betashares Global Shares Ex Us Etf (ASX: EXUS)
• BetaShares Geared Australian Equity Fund (Hedge Fund) (ASX: GEAR)

He highlighted that historically, emerging markets have performed strongly when global risk appetite improves and trade flows normalise.

Additionally, Ex-US equities provide greater exposure to cyclical sectors like financials and industrials than the US equity market and, as such, greater exposure to a strong global growth environment.

The post Portfolio strategies for 2 potential Middle East scenarios – Expert appeared first on The Motley Fool Australia.

With crude oil leaping from around US$70 a barrel at the end of last month to over US$100 today, it looks as though inflation could surge even higher if that trend doesn't reverse in the near future. Remember, crude oil and its derivatives, like petrol, jet fuel, and diesel, are inputs into almost every kind of economic activity in our economy. As such, oil price increases function as a giant tax on everything, raising prices across the economy and thus inflation.

This is obviously a frightening scenario for investors to contemplate. As such, I thought we could discuss three ASX exchange-traded funds (ETFs) that can help any Australian stock portfolio resist the corrosive effects of higher oil-induced inflation.

3 ASX ETFs that can help shield your portfolio from high inflation

First up, we have the BetaShares Global Energy Companies ETF (ASX: FUEL). This ASX ETF invests in a portfolio of global energy stocks. These include major oil companies such as ExxonMobil, Chevron, Shell, ConocoPhillips, and BP.

Energy stocks are among the few companies that benefit from higher oil prices. As this ETF holds some of the largest, most stable and lowest-cost energy producers, it stands to benefit from a prolonged period of higher oil prices and increased inflation.

Next, let's talk about the BetaShares Global Agriculture Companies ETF (ASX: FOOD). Like FUEL, this ASX ETF offers exposure to a thematic portfolio of global stocks. With this fund, though, those stocks all hail from the agricultural sector of the global economy and support food production. Some of this ETF's holdings include Nutrien, Archer-Daniels-Midland, Deere & Co, Kubota Corp, and Tyson Foods Inc.

Food production is not immune to higher fuel costs. However, as we all need to constantly buy food, these companies can pass on higher costs to customers, knowing they will have to accept them. That makes this ETF a useful investment for a high-inflation era.

Finally, investors concerned about inflation might consider the iShares Global Consumer Staples ETF (ASX: IXI). Overlapping in scope with FOOD a little, this fund offers exposure to companies involved in the production and distribution of consumer staple goods such as food, drinks and household essentials.

Some of IXI's holdings include Nestle, Procter & Gamble, Coca-Cola Co, Walmart, and Colgate-Palmolive. Again, these companies provide goods that we tend to need, not want. As such, they can also pass on higher costs to consumers in an inflationary environment, protecting your capital as a shareholder.

The post These 3 ASX ETFs can protect your portfolio against inflation appeared first on The Motley Fool Australia.

Well, today we're asking ASX broker Morgan Stanley (MS).

Morgan Stanley's Kevin Dermers recently released a report on how to invest in a high-inflation world. And it makes for some interesting reading.

Morgan Stanley: How to beat inflation

Many investors might assume that just investing in ASX shares is enough to counter the effects of inflation. But rising prices affect different companies in different ways. And some are more immune to its corrosiveness than others. In its report, MS tells us this:

Persistent inflation and a resilient economy could spur the Federal Reserve to keep interest rates elevated, which could weigh on some stocks…

Stocks and funds that offer investors exposure to "real assets"—that is, tangible assets like infrastructure, real estate and natural resources, whose value is linked to their physical attributes—may be appealing in an environment of solid economic growth, persistent inflation and higher interest rates.

It's these 'real assets' like infrastructure, property and commodities that MS argues are the key to beating inflation through investing. This is due to three reasons.

Firstly, real assets allow investors to hedge against inflation as they are able to consistently pass on rising costs to their users.

Secondly, real assets can deliver an all-weather income stream that can deliver cash flow regardless of the economic conditions.

Third, real assets can offer investors some portfolio diversification benefits, as their valuations are usually uncorrelated to other assets including ASX shares.

How to invest in real assets on the ASX

So how exactly does one invest in real assets? Well, MS does note this:

It is possible for investors to hold real assets in their portfolios – for instance, by purchasing gold or buying a share of a building – but it can be more difficult and potentially more risky than purchasing stocks or funds that offer exposure to real assets

So with that in mind, let's discuss a few ASX options here. The most obvious is using exchange-traded funds (ETFs). As investors would probably be aware, there are a plethora of different ASX ETFs that cover different corners of the market. As luck would have it, there are many options to choose from if you are looking for infrastructure, property or commodity investments.

With infrastructure, there are a few ASX ETFs that offer sole coverage of these investments. Two examples would be the Vanguard Global Infrastructure Index ETF (ASX: VBLD) and the VanEck FTSE Global Infrastructure ETF (ASX: IFRA). Both of these funds hold companies that operate assets like pipelines, toll roads, railroads and electrical poles and wires.

Turning to property, there is also a bevy of options to choose from. The Vanguard Australian Property Securities Index ETF (ASX: VAP), which holds stakes in various real estate investment trusts (REITs) is one possibility. Others include buying REIT units yourself, or else another ETF like the iShares Core FTSE Global Property ex-Australia ETF (ASX: GLPR).

The challenges of beating inflation using natural resources

Commodities and natural resources are a tricky one to discuss though. As we all know, there are countless commodities out there that are vital to a healthy economy. But not all of these function in the same way. Iron ore and oil are notoriously cyclical, while precious metals like gold and silver have markets that move on entirely different factors. But MS argues that natural resources are still a great place to look if you want to invest to beat inflation.

So what's the solution? Well, you could start with an ASX-wide resources ETF like the BetaShares Australian Resources Sector ETF (ASX: QRE). This fund invests in all of the ASX's major mining and energy companies, such as BHP Group Ltd (ASX: BHP), South32 Ltd (ASX: S32) and Woodside Energy Group Ltd (ASX: WDS).

You could also combine several different commodity-based ETFs. For example, the BetaShares Crude Oil Index ETF (ASX: OOO) tracks oil futures, the Global X Copper Miners ETF (ASX: WIRE) tracks copper companies, the VanEck Gold Miners ETF (ASX: GDX) tracks, well gold miners, and the Global X Green Metal Miners ETF (ASX: GMTL) allows for exposure to future-facing commodities like lithium, rare earths, nickel and cobalt.

There's also agriculture to consider. Food investments have their own cyclicalities to worry about, with factors like weather and rainfall playing a major role.

But there are ETFs that can allow ASX investors exposure to food-producing investments too. One such example is the BetaShares Global Agricultural Companies ETF (ASX: FOOD).

This fund holds a portfolio of global shares that grow, make, process, package and distribute food products all over the world. It also includes companies like Deere & Company that manufacture farming equipment.

The post Here's how Morgan Stanley invests to beat inflation appeared first on The Motley Fool Australia.

Most ASX-based index funds would have given investors a similar return to the index. But let's take a look at some of the funds that beat out the ASX 200.

Here are the five best-performing funds of FY 2022.

The 5 best-performing ASX ETFs last financial year

BetaShares Global Agriculture Companies ETF (ASX: FOOD)

Our first fund to take a look at today tells us most of what we need to know in its title. FOOD is an agricultural-based ETF that tracks a basket of food-producing companies from around the world. Some of its holdings include tractor maker Deere & Co, Archer-Daniels-Midland Co and Tyson Foods Inc. FOOD units gave investors a 3.5% return over FY 2022, which looks pretty good against the ASX 200.

VanEck Australian Resources ETF (ASX: MVR)

This fund from VanEck holds ASX shares, but only those in the resources sector. ASX investors will recognise most of the big names in this fund, which include Woodside Energy Group Ltd (ASX: WDS), BHP Group Ltd (ASS: BHP) and Rio Tinto Limited (ASX: RIO). MVR units managed to give an overall return of 5% over FY 2022 for investors.

ETFS S&P 500 High Yield Low Volatility ETF (ASX: ZYUS)

This ETF from ETFS is an income-focused fund that tracks a select group of American companies, picked to minimise volatility and maximise income. You might know some of its current holdings like Kraft Heinz, Chevron, IBM and Philip Morris International. ZYUS managed to give its investors a 12.7% return over FY 2022.

BetaShares Global Energy Companies ETF (ASX: FUEL)

This fund from BetaShares is similar to FOOD, except it holds a basket of global energy shares rather than agricultural ones. Once again, we see Chevron here, as well as other oil giants like Exxon Mobil, Royal Dutch Shell and BP.

Rising energy prices have been kind to these companies in the past six months, so it's perhaps no surprise that FUEL units managed to provide a return of 27.9% over FY 2022.

BetaShares Crude Oil Index ETF (ASX: OOO)

Our final and best-performing ASX ETF of FY 2022 is another fund from BetaShares. And another energy-focused one at that. OOO is nothing like FUEL though. Instead of tracking energy companies, OOO only invests in West Texas Intermediate (WTI) crude oil futures contracts, and holds no actual shares within it.

But this has proven to be a winner over the last financial year, with OOO units giving investors a pleasing return of 60.3% over that time. Black gold indeed,

The post Here are the best-performing ASX ETFs of FY 2022 appeared first on The Motley Fool Australia.

BetaShares chief economist David Bassanese notes there has been a shift in global interest rate expectations since last year, with interest rates in the United States now expected to reach 1.9% by the end of the year and 2.8% by the end of 2023.

With global inflation spurred on by the Russian invasion of Ukraine, Mr Bassanese has pointed to some ASX ETFs in the commodities sector that may be of interest to investors in this inflationary environment.

Commodity ETFs

The four ETFs that BetaShares refer to relate to global energy, gold and food producers, and Australian resource companies.

They include:

• BetaShares Global Energy Companies ETF (ASX: FUEL)
• BetaShares Australian Resources Sector ETF (ASX: QRE)
• BetaShares Global Gold Miners ETF (ASX: MNRS)
• BetaShares Global Agriculture Companies ETF (ASX: FOOD)

Mr Bassanese said these ETFs had been performing thanks to the strength of oil, gold, food, and iron ore prices. More broadly, many commodity shares were performing well.

BetaShares said that valuations were "still attractive" when looking at price to earnings (p/e) ratios compared to long-run averages.

However, commodities aren't the only industry that BetaShares said could benefit in the current environment.

Global banking ETF

The other high-performance area was the global banking sector.

Mr Bassanese said that the banking sector "tended to do relatively well in an environment of rising interest rates", referring to the BetaShares Global Banks ETF (ASX: BNKS) for these inflationary times.

The BetaShares chief economist said:

This is because rising rates tend to be associated with stronger profits margins as medium-term bank lending rates tend to widen by more than the cost of short-term funding costs. Rising credit demand due to strong economic growth also tends to be supportive of global banks.

Mr Bassanese wrote that the same attractive valuation argument was also broadly held for the financial sector.

Australian interest rates to increase?

Mr Bassanese said that he expected Australian interest rates to rise by 15 basis points next week, which is early May 2022. He said it made sense for the RBA to "start off slow", with another 25 basis point increase expected in June.

Interest rates are being increased by several central banks around the world, including the US Federal Reserve.

The post 5 ASX ETFs to combat inflation: fund manager appeared first on The Motley Fool Australia.

But today, there seems to be an ETF for every flavour you can think of. Oil? There's the BetaShares Crude Oil Index ETF (ASX: OOO). Do you find particular interest in the share market of South Korea? Then the iShares MSCI South Korea ETF (ASX: IKO) could pique your eye.  Food loving investors might find interest in the BetaShares Global Agriculture ETF (ASX: FOOD). Robotics? Try the ETFS ROBO Global Robotics and Automation ETF (ASX: ROBO). You get the idea.

The youngins love it

But new research from ETF provider BetaShares shows just how much of this interest comes from younger investors. 2020 was a great year for the ETF structure, despite the disruption of the global market crash in March.

According to the research, the number of ASX investors using ETFs climbed 58% in 2020, from 455,000 to 720,000. That was reportedly the largest annual increase ever recorded.

What's more, nearly two–thirds (65%) of these new ETF investors entering the market between March and August 2020 were under the age of 40. That is, millennials and 'Gen Zers'.

Alex Vynokur, CEO of BetaShares, said this of what he sees:

The average age of the ETF investor continues to fall, as first–time investors increasingly are made up of those under the age of 40. This continues a long–term trend and demonstrates that the wealthier early SMSF adopters of ETFs are now joined by younger Australians, who are also turning to ETFs to help them achieve their financial goals...

Investing can be daunting, particularly in times of volatility, such as during the pandemic–related market turmoil or more recently, during the GameStop controversy.

The fact that investors, particularly younger investors, continued to invest in ETFs throughout 2020 suggests that not only are investors attracted to the liquidity ETFs offer in volatile markets, they also appreciate simple, cost–effective way to diversify portfolios and minimise single stock risks…. We are preparing for another strong year of growth

Why are ETFs so hot right now?

So why are investors, especially millennials and Gen-Zers, choosing to invest in ETFs rather than individual ASX or international shares? Well, 63% of the investors BetaShares surveyed stated that diversification was the most important factor at play for choosing ETFs.

This makes sense. It is far easier to achieve diversification through a single share of an ETF than through direct share investing. That's because a single ETF can hold thousands of individual holdings with it. Other reasons why investors chose an ETF (or two) for their portfolios include access to specific overseas markets (24%), avoiding risk to individual stock exposure (42%), and efficiency (39%).

These numbers look set to grow even higher over the next 12 months. BetaShares is expecting another 190,000 investors to buy their first ETF in the next year. And if last year's statistics hold, this will include 120,000 millennials and Gen-Zers. ETFs are the new black right now, that's for sure.

The post Data shows millennials love investing in ASX ETFs appeared first on The Motley Fool Australia.

This is an exchange-traded fund (ETF) offered by BetaShares to give investors exposure to some of the world's leading food-related businesses.

You can find many food shares on the ASX like Tassal Group Limited (ASX: TGR), Select Harvests Limited (ASX: SHV) and Costa Group Holdings Ltd (ASX: CGC).

However, if you want food shares with a more global outlook then this ETF could be what you're after.

Some of its top holdings include agricultural processor & food ingredient provider Archer Daniel Midland and farming machinery businesses Deere & Co and Kubota Corp. A lot of its other holdings relate to packaged foods and meats businesses.

Over half of the ETF's assets are allocated to US businesses, but that's just where a majority of worldwide businesses are listed. Some other countries that are represented include Japan, Norway, the UK, Germany, Malaysia, Hong Kong, Canada and the Netherlands.

The ETF has an annual management fee of 0.57%, which is cheaper than many active managers but more expensive than some of the main low-cost ETFs.

We all need food so, other than a commodity aspect to a few of this ETF's holdings, it could be described as somewhat defensive.

However, over the long-term it may generate good growth because the world may face a food shortage by 2030. If the world isn't to face a food shortage then it will likely be food businesses that are able to improve the food yields from farmland.

Foolish takeaway

A bonus with this ETF is that it has a 3.5% yield, which is materially more than what you can get at the bank. If I were looking to expand my portfolio with another ETF then this one would be high on my shortlist.

The post Is BetaShares Global Agriculture ETF (ASX:FOOD) a buy today? appeared first on The Motley Fool Australia.

BetaShares is one of the most versatile ETF providers in Australia with many different offerings such as BETANASDAQ ETF UNITS (ASX: NDQ), BetaShares Global Agriculture ETF (ASX: FOOD) and Betashares Global Cybersecurity ETF (ASX: HACK).

The new Asia Technology Tigers ETF looks to give exposure to 50 of the most innovative and disruptive technology companies in Asia. It is almost like the Asian version of the NASDAQ ETF.

Asia is a fast-growing economic region with an increasingly tech savvy population that uses their phones to do a lot of their purchasing, socialising and so on. Some of the Asian giants completely dominate in China, just like Facebook, Google (Alphabet) and Amazon do in Western countries.

Holdings that represent 7.5% of the ETF portfolio, or more, are: Taiwan Semiconductor Manufacturing, Alibaba, Samsung, Tencent and Baidu. Other top-10 exposures include Infosys, Hon Hai Precision Industry, SK Hynix, JD.com and NetEase.

Whilst these businesses may dominate in their own countries, they also have plans to expand in dozens of other countries. They could become global titans in their own rights.

The risks of Asian businesses are certainly higher than typical American or ASX businesses. Ownership issues, governments and management are all potential problems. I wouldn't put 50% of my portfolio into this ETF.

However, there is potentially less risk to this ETF than say investing in Chinese banks due to the high level of debt.

Foolish takeaway

There are now quite a few different ways to get exposure to investments in Asia with this ETF along with Vanguard FTSE Asia Ex Japan Shares Index ETF (ASX: VAE) and UBS IQ MSCI Asia APEX 50 Ethical ETF (ASX: UBP).

The current trade war may present a good opportunity to buy into Asian shares. Of course, it could keep getting worse between the US and China but that might just make it more attractively valued.

The new BetaShares Asia Technology Tigers ETF could generate strong returns over the long-term if the Asian economy and population keeps going more technological. It is fairly likely I will choose to invest into it over the next year. 

The post Here's why I'm excited by this brand-new ETF appeared first on The Motley Fool Australia.

A portfolio mostly attributed to Commonwealth Bank of Australia (ASX: CBA), Australia and New Zealand Banking Group (ASX: ANZ), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB) and Telstra Corporation Ltd (ASX: TLS) is not diversified.

One of the quickest and easiest ways to get quick diversification is with an exchange-traded fund (ETF). The 'exchange-traded' part simply means you can buy it on the ASX. The 'fund' usually refers to an index of some sort.

There are many indices out there, such as Vanguard Australian Share ETF (ASX: VAS) or iShares S&P 500 ETF (ASX: IVV), which are based on 300 of the biggest businesses in Australia and 500 of the biggest businesses listed in the US respectively.

Patient investors who simply buy and hold the above indices should do very well over long periods of time.

However, it's also possible to find index funds that offer diversification but may also be able to beat the market. Here are two examples:

Betashares Global Cybersecurity ETF (ASX: HACK)

Although we don't have to worry about nuclear bombs much these days, we increasingly need to keep our eyes open to the fact that there are many cyber criminals wanting to cause harm to governments, businesses and individuals.

Many companies have intellectual property that is integral to remain in their hands. Households don't want their bank accounts hacked. Governments need to keep tax and health records safe.

This ETF provides exposure to some of the biggest cybersecurity businesses in the world such as Splunk, VMware, Palo Alto Networks, Cisco Systems and Symantec.

Over the past year this ETF's return has been an impressive 45.7%. I definitely wouldn't expect the same over the next 12 months. But over the long-term this group of companies could grow impressively as the importance of cybersecurity increases.

BetaShares Global Agriculture ETF (ASX: FOOD)

This ETF is devoted to some of the largest food-related businesses in the world such as Archer Daniels Midland, Deere & Co, Kubota, Marubeni and Tyson Foods.

Food is essential to our lives. There are fewer and fewer agricultural businesses that can deliver continual improvements in food production efficiency due to the technology required.

Some food experts believe that the world faces a food shortage by 2030. This could make the constituents of this ETF increase substantially in value.

Foolish takeaway

I believe both of these two ETFs can be good ways to diversify your portfolio both through industry and geography based on where the shares are listed and generate earnings.

The post 2 alternate ETFs to beat the market appeared first on The Motley Fool Australia.

There are a wide range of ETFs out there, some that focus on huge numbers of businesses and others that give access to a specific sector or asset class.

Unless you choose extremely diverse ETFs such as Vanguard MSCI Index International Shares ETF (ASX: VGS) I think it's better to choose ETFs you think can beat the ASX Index, or else you may as well just stick to Australia.

So, with beating the ASX in mind, here are three ETF ideas:

Vanguard US Total Market Shares Index ETF (ASX: VTS)

This ETF gives the investor exposure to over 3,600 businesses listed in the US. Many of the larger holdings are actually global businesses, so you're getting global diversification with this ETF, not just a US-focused one.

It has a very low cost of 0.04% per annum of management fees, which is one of the lowest in the world.

Its top holdings include all of the best shares in the US such as Apple, Microsoft, Amazon, Alphabet (Google), Facebook, JPMorgan Chase and Berkshire Hathaway.

I think it would be possible to own just this ETF as your portfolio, however it wouldn't provide much income.

BetaShares Global Agriculture ETF (ASX: FOOD)

BetaShares offers a variety of ETFs that specialise on specific sectors. This ETF provides exposure to some of the world's largest food businesses such as Archer Daniels Midland, Deere & Co and Kubota.

Some food experts believe that the world will face a food shortage by 2030, meaning all food-related businesses could get an earnings boost by then. Increasing food productivity is always a valuable development and some of this ETF's top holdings operate in that space.

Betashares Global Cybersecurity ETF (ASX: HACK)

Another sector that could grow faster than the general economy in the coming years are companies focused on supplying cybersecurity services. We live in a new world where anyone with a decent computer can cause problems to governments and businesses.

Therefore, those businesses will pay what it takes to keep people's details and intellectual property safe. Some of its top holdings include Splunk, VMware, Palo Alto Networks, Cisco Systems and Symantec.

Foolish takeaway

ETFs can be a very easy way to get good diversification and good returns for little effort. At the current prices if I could only choose one ETF I would probably go for the FOOD ETF as I think the other two are more likely to be affected by rising interest rates in the next couple of years.

The post 3 ETFs to beat the ASX appeared first on The Motley Fool Australia.

People seem to think that the best way to beat the market is by investing in individual shares. I agree with that line of thinking, but there are ways of beating the ASX index or global share market index by buying exchange-traded funds (ETFs) that focus on specific industries or geographical areas.

I think the following three ETFs will improve my portfolio if, or when, I buy them:

BETANASDAQ ETF UNITS (ASX: NDQ)

I think most Aussie investors have far too little of their portfolio exposed to overseas shares, particularly the technology giants that are listed in the US.

Apple, Alphabet (Google), Netflix, Microsoft and Facebook are all (probably) daily parts of our lives. That type of 'staying' power is enormously valuable in the business world and I think these tech businesses are only going to become more powerful in time.

Facebook is working on virtual reality technology and could monetise Whatsapp and Facebook Messenger a lot better. Google has a long growth runway ahead with online video site Youtube, its other services and who knows how big an opportunity the automated car Waymo will be?

I cannot think of another group of blue chips with as much growth potential and I haven't even mentioned Amazon. Now could be a decent time to buy the ETF after Facebook's fall.

UBS IQ MSCI Asia APEX 50 Ethical ETF (ASX: UBP)

This ETF owns shares of the 50 largest businesses in Asia that aren't listed in Japan. Asia also has its own tech giants that are changing the way that people live their lives.

Tencent, Alibaba and Baidu are all economic powerhouses that are delivering enormous growth as Asia's wealth increases and more people do more of their shopping on the internet. Tencent and Alibaba are each more than 10% of this ETF.

The growing Chinese middle class should create strong growth for all businesses like banks, insurance, travel and so on. That's why this ETF could be such a strong performer over the coming years.

BetaShares Global Agriculture ETF (ASX: FOOD)

We all need to eat, right? The food industry could be described as defensive in some ways.

This ETF owns shares of some of the world's largest food-related companies including Archer Daniels Midland, Deere & Co, Kubota and Tyson Foods.

Some food experts believe that the world may face a food shortage by 2030, meaning all food-related businesses may get a market-beating boost between now and then.

Foolish takeaway

I think all Aussie investors need to increase their exposure to the US tech shares, whilst the Chinese businesses could be a once-in-a-lifetime growth story as long as the Chinese government doesn't create any nasty surprises.

The post 3 ETFs I want to buy appeared first on The Motley Fool Australia.

One of Australia's leading ETF providers is BetaShares, which provides some of the best ETF options on the ASX in my opinion, such as BETANASDAQ ETF UNITS (ASX: NDQ), BetaShares Global Agriculture ETF (ASX: FOOD) and Betashares Global Cybersecurity ETF (ASX: HACK).

Here are three reasons to like ETFs according to BetaShares:

Avoid the hassle of picking individual shares

Picking individual shares is notoriously difficult. If you manage to make six right picks out of ten then that's doing well! Of course, you hope your winners are bigger than your losers.

We are wired to naturally want to avoid danger and pain. That's why the losers in our portfolio hurt more than the winners.

ETFs allow you to avoid the large losers and also saves time on all the researching that you could have done. More time for family, earning money or whatever else you want to do.

Diversification

There's strength in diversification. In one share purchase you get lots of different companies in different industries. If there's a problem with telcos then only a small portion of your portfolio would be affected.

It also means that you don't miss out on growth sectors either. A simple SMSF portfolio may only contain the big banks and resource shares, but an ETF would also give you exposure to healthcare and tech shares.

Exposure to international markets

The ASX has a lot of quality businesses listed, but it is missing a huge amount of other companies listed in North America, Asia and Europe.

To directly invest in them takes a lot of effort, forms and brokerage costs. It's much easier to invest through an ETF and get that international exposure through one or a few ETF holdings.

One reason ETFs aren't great

Diversification is a good thing, but it means your returns are reliant upon the underlying holdings to do well. Yes, you get the winners but you also get the losers. If you invest in a tech ETF and the entire sector does badly then you lose. If it's a US-focused ETF and the American economy does badly then the ETF will do badly.

Foolish takeaway

I think ETFs are great and definitely can form part of a portfolio. Perhaps ETFs are all you need to hold – that would make things very simple. I think ETFs can be very useful to give exposure to certain industries or geographies that you don't have in your portfolio.

However, any winners in the portfolio are diluted. If Altium Limited (ASX: ALU) or Amazon doubles in value then the ETF you own will only benefit a small amount because those shares are a relatively small part of the ETF.

The post 3 reasons why ETFs are great and 1 reason they're not appeared first on The Motley Fool Australia.

Diversification usually means investing into different industries and perhaps businesses that offer geographical diversification away from Australia.

Here are three shares that I think would offer good diversification:

BetaShares Global Agriculture ETF (ASX: FOOD)

This exchange-traded fund (ETF) is offered by ETF specialist BetaShares. Food is an essential part of our lives, so you could say it's defensive in some regards.

The ETF gives investors exposure to some of the world's biggest food businesses like Archer Daniels Midland, Deere & Co, Kubota Corp and Tyson Foods.

The importance of food companies is only going to increase as the global population. Some experts believe there will be a good shortage by 2030. If that's true then this ETF could be one of the best ways to profit from that idea.

National Veterinary Care Ltd (ASX: NVL)

This veterinary clinic business has seen its share price fall by over 30% since its all-time high at the start of the year due to difficult conditions in the vet industry.

However, I think this presents a compelling long-term opportunity to buy shares at a discounted price. We all still own pets – the number of pets hasn't decreased by 30%. Pet owners still regularly take their pet to the vet, a majority of pets go at least once a year.

National Vet Care has acquired a lot of new clinics over the past year. It needs to integrate them. I think the amount of annualised profit that will be realised in the FY19 result will encourage investors with this pet company again.

Magellan Global Trust (ASX: MGG)

This is a listed investment trust (LIT) run by Magellan Financial Group Ltd (ASX: MFG). It aims to give Aussie investors exposure to some of the world's highest-quality businesses like Facebook, Alphabet (Google), Visa, Mastercard and Wells Fargo.

Since inception in October 2017 it has outperformed its benchmark by 0.6%, after all fees, whilst keeping a good amount of cash on hand for downside protection. At June 2018, 21% of its portfolio was cash.

I think this is one of the better ways for investors to get exposure to high quality international shares without having to do any research themselves.

Foolish takeaway

At the current prices I'm drawn to National Vet Care's beaten-down share price. Although 2018 has been disappointing for the pet company you just need to think about where the business will be in five or ten years' time. In that context, I think it's easier to imagine how much more valuable the National Vet Care will be.

The post Who else wants to diversify their portfolio? appeared first on The Motley Fool Australia.

If you just own a low-cost (compared to fund managers), quality ETF for the long-term then you can outperform a majority of investors because of the small fees and quality holdings.

Here are three of my favourite ETFs:

BetaShares Global Agriculture ETF (ASX: FOOD)

This is an ETF that looks to give investors exposure to some of the best food-related businesses in the world. I think this could be a good opportunity because the global population is expected to continue growing and this will make food more valuable as it may be difficult for food exporting countries to continue growing production to match the demand.

Some of its top holdings include Deere & Co, Archer Daniels Midland, Kubota, Tyson Foods, WH Group and Associated British Foods.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

This is one of the broadest ETFs on the ASX. Not only does it have over 1,500 holdings but it has investments spread across many countries like Japan, the UK, France, Germany, Canada, Switzerland, Hong Kong, the Netherlands, Spain and so on.

The diversification offered by Vanguard is really good and over the long-term (think decades) this ETF should produce quite pleasing results. It could be one of the best ways to invest in the global share market. Its largest holdings are Apple, Microsoft, Alphabet (Google) and Facebook.

Betashares Global Cybersecurity ETF (ASX: HACK)

This is an ETF that gives exposure to some of largest cybersecurity firms in the world. There is a growing trend of cyber attacks because more of a company's value and intellectual property is held on computers these days. I'm talking about things like software, databases, product design and so on. These are great targets for a hacker.

Its top holdings include Palo Alto Networks, Akamai Technologies, VMware, Cisco Systems and Symantec.

Foolish takeaway

I'd be very happy to own all three ETFs in my portfolio. I don't own any ETFs yet but there's a good chance I will have the FOOD ETF and the Vanguard in my portfolio at some point down the road, I'm just waiting for the overall market's valuation to become a bit more attractive.

The post 3 of the best ETFs on the ASX appeared first on The Motley Fool Australia.

An ETF is a simple way to become invested into many shares with a single purchase. Investing across many shares gives you diversification and theoretically reduces risk.

There is a huge amount of different ETF options that you could choose to invest in. Here are some examples:

iShares S&P 500 ETF (ASX: IVV)

This is one of the lowest-costing ETFs on the ASX with a management fee of only 0.04% per annum. It gives the investor exposure to 500 of the biggest stocks in the US and has performed very well over the past year, decade and longer-term.

Some of its top holdings include Apple, Microsoft, Amazon, Facebook, JPMorgan, Berkshire Hathaway and Alphabet (Google). It's easy to imagine that this group of companies will continue to be some of the top performing shares in the world.

Betashares Global Cybersecurity ETF (ASX: HACK)

This ETF looks to give exposure to some of the biggest cybersecurity companies in the world. There has been an increased amount of hacks and DDOS attacks in recent times. Businesses and governments need to make sure they keep hackers far away from the important data, so they'll pay for the best security.

Some of its top holdings include Palo Alto Networks, Symantec Corp, Akamai Technologies, VMware and Cisco Systems.

BetaShares Global Agriculture ETF (ASX: FOOD)

This ETF contains some of the world's largest food-producing companies. Experts believe that there's going to be a food shortage in a decade or so from now, so these companies could receive a lot more money for their products during this time.

Its top holdings are businesses like Archer Daniels Midland, Kubota, Deere & Co, Tyson Foods, WH Group and Associated British Foods.

Foolish takeaway

I'd be happy to buy and hold any of the above ETFs for the next decade. The S&P 500 is probably trading a bit too expensively for me at the moment, due to how low interest rates are. However, the cybersecurity and food ETFs could be decent long-term value today.

The post 3 ETFs for a strong portfolio appeared first on The Motley Fool Australia.

However, I do think food stocks have their part to play in an investor's portfolio. We all need to eat, so unless there's something inherently wrong with a food business it should have demand even in a downturn.

Here are three food stock ideas:

Tassal Group Limited (ASX: TGR)

If Australia is the food bowl of Asia then Tassal is the salmon king of Australia. It has several major salmon farms in the ideal waters of Tasmania, as well as a large fish wholesale business.

It has increased its operating profit each year over the past four years and could continue growing as demand for salmon steadily increases in Australia with healthier diets and in Asia with a growing middle class.

It's currently trading at 14x FY18's estimated earnings with a grossed-up dividend yield of 5.6%.

Costa Group Holdings Ltd (ASX: CGC)

Costa is one of Australia's leading food-producing companies. It now has five pillars of food produce, being berries, mushrooms, citrus fruit, tomatoes and avocadoes.

Demand for its products is increasing at a pleasing rate due to global and Australian population growth. The supermarket giants are willing to pay a decent price for large-scale dependable supply of food – which Costa can deliver.

Costa is now predicting underlying profit growth of 25% this year and you'd think that there will be continued growth as it expands its farms acreage in Australia and abroad.

It's currently trading at 30x FY18's estimated earnings with a grossed-up dividend yield of 2.3%.

BetaShares Global Agriculture ETF (ASX: FOOD)

This is an exchange-traded fund (ETF) that looks to give investors exposure to some of the biggest food businesses in the world. Some of its top holdings include Archer Daniels Midland, Kubota, Deere & Co and Tyson Foods.

This group of companies is very likely to benefit from the growing global population and the potential food shortage we may experience in a decade's time according to some experts.

Foolish takeaway

Food businesses' earnings may not be affected that much by an economic downturn, although the share prices would still feel some pressure.

At the current prices I'd be interested in buying Costa the most, but the FOOD ETF does intrigue me as well.

The post 3 food stocks for tasty returns appeared first on The Motley Fool Australia.

However, as an investor I'm still looking to beat the generic 'average' shares return, whether that's the Australian index or the global MSCI index.

Here are three ETFs I'm really interested in:

BETANASDAQ ETF UNITS (ASX: NDQ)

This ETF gives investors exposure to 100 of the biggest technology businesses on the NASDAQ in the US. The large technology shares have been the driving force for international shares in recent years and that's likely to continue.

Facebook, Alphabet, Apple, Microsoft and Amazon are all growing their businesses at impressive rates considering how big they already are. The world is just going to become more technological, so investors may as well exclude all the large blue chips that aren't growing and focus on the ones that are. Which is exactly what this ETF provides with businesses growing revenue at impressive double digit rates. This ETF could be volatile, but that is the price we have to pay to invest in the better growth shares.

Betashares Global Cybersecurity ETF (ASX: HACK)

This ETF gives investors exposure to some of the biggest companies that provide cybersecurity. Some of its top holdings include Akamai Technologies, Palo Alto Networks, Symantec, Cisco Systems and VMware.

Government organisations and businesses are increasingly attractive targets for hackers because they have so much of their customer's details on their systems. It's highly likely that cybersecurity businesses will be able to achieve better growth than most other industries.

BetaShares Global Agriculture ETF (ASX: FOOD)

This ETF gives investors exposure to some of the largest food-related companies in the world. Food is a very important commodity to us and demand is only going to increase because the human population is predicted to continue going up – which means food companies should become more valuable.

Its biggest holdings are Deere & Co, Archer Daniels Midland, Kubota and Tyson Foods.

Foolish takeaway

I like all three ETF ideas and hopefully they produce better returns than the typical MSCI index fund. Some NASDAQ businesses are trading at a very high valuation, so it may be better to wait for a better opportunity.

The post 3 ETFs I'd like to buy for my portfolio appeared first on The Motley Fool Australia.

I've been interested in food businesses for a while and the latest piece of media that I've consumed on the topic, this TED video on an upcoming food shortage, is yet another example of people more knowledgeable than me on the global food situation saying that the globe is going to experience ever-increasing food demand if the population keeps rising. Except that there may not be enough food to match that demand.

Australia's population has been growing at a fast rate for a long time and is expected to keep going upwards. Melbourne's population in-particular is expected to keep growing at above 2% a year for many years to come – its population could be as large as Australia's current whole population within the next century according to some estimates.

So where does this leave many of the ASX's food options? I think it bodes very well for shares like Costa Group Holdings Ltd (ASX: CGC), Rural Funds Group (ASX: RFF), Tassal Group Limited (ASX: TGR) and BetaShares Global Agriculture ETF (ASX: FOOD).

None of these shares are going to shoot the lights out over the next few years but they could provide relatively defensive earnings and quite good compounding growth for investors.

If the ASX food stocks can achieve slowly-rising prices for their products and sell more products then it should lead to pleasing revenue growth, higher profit margins and good profit growth.

It could also be good news for businesses that are building brands around their businesses like Costa, a2 Milk Company Ltd (ASX: A2M) and Capilano Honey Ltd (ASX: CZZ)

Foolish takeaway

At the current prices I'm most interested in buying Costa shares because it could achieve sustained growth with plans to expand the business in Australia, Asia and North Africa.

The post Why I'm confident about the food sector appeared first on The Motley Fool Australia.

Kids, a mortgage and marriage will probably take up a big chunk of your money, but with your highest earnings there will hopefully be some money for investing.

Most people will be a few decades from retirement and even further away from being six feet under, so it's far too early to withdraw everything as cash and stuff it under the mattress.

However, it's also probably a good age to start heeding one of Warren Buffett's most famous and wise quotes: Rule number one don't lose money, rule number two don't forget rule number one.

I believe that people in their 40s need to invest for growth. Slow-growth, high-yielding stocks aren't likely to generate strong returns. One idea could be BETANASDAQ ETF UNITS  (ASX: NDQ), it's an index which gives concentrated exposure to all of the top tech shares in the US like Apple, Alphabet (Google), Facebook, Amazon and Microsoft. The nature of the index fund means that the risk is diversified instead of being invested in just Apple.

Other options could be businesses that lead their industries but should be able to keep growing as profit margins increase and they expand overseas, such as REA Group Limited (ASX: REA), Seek Limited (ASX: SEK) and Altium Limited (ASX: ALU).

Another idea could be to invest in shares that benefit from the ageing population like Challenger Ltd (ASX: CGF) and Ramsay Health Care Limited (ASX: RHC) because you have the time to see the thematic play out.

Another idea could be to invest in food-related shares. The Australian and global populations are predicted to continue rising for a long time to come, which should lead to rising food prices. Two options to place this theme could be Costa Group Holdings Ltd (ASX: CGC) and BetaShares Global Agriculture ETF (ASX: FOOD).

Foolish takeaway

The 40s is the beat time to set yourself up for a good retirement. High earnings whilst having decades for compounding is a good combination.

The post How to invest in your 40s appeared first on The Motley Fool Australia.