In the technology sector, there are plenty of ETFs available, but I have focused on three that have performed well over the past year.

Let's have a look.

Asia Technology Tigers ETF (ASX: ASIA)

This ASX ETF has returned an impressive 104.9% over the past year and 15.9% over a longer five-year horizon.

The ETF aims to track the performance of an index comprising the 50 largest technology and online retail stocks in Asia, not including Japan.

As the Betashares website says:

In one trade, ASIA provides diversified exposure to a high-growth sector that is under-represented in the Australian share market, and a complement to investors with US technology exposure. Due to its younger, tech-savvy population, Asia is surpassing the West in terms of technological adoption and the sector is anticipated to remain a growth sector.

Major holdings include South Korean semiconductor company SK Hynix, Samsung Electronics, Taiwan Semiconductor, and Alibaba Group.

ASIA pays a low dividend yield of 0.4%.

Electric Vehicles and Future Mobility ETF (ASX: DRIV)

This ASX ETF has not performed as well as the Energy Transition Metals ETF (ASX: XMET), which is focused on companies that mine resources such as copper and lithium, but has still notched up a 36.6% gain over the past year.

The ETF, Betashares says, "provides cost-effective exposure to the growth potential of the electric vehicles and automotive technology thematic in a single ASX trade''.

Major holdings include Sumitomo Electric Industries, Tesla, Volvo, and BYD.

Vehicle manufacturers account for 27.5% of its investments, followed by semiconductor and machinery manufacturers.

The ETF pays a dividend yield of 1%.

NASDAQ 100 Currency Hedged ETF (ASX: HNDQ)

As the name suggests, this ASX ETF aims to track the performance of the NASDAQ-100 Index (NASDAQ: NDX), while hedging its currency exposure.

The Betashares website says further:

With its strong focus on technology, HNDQ provides diversified exposure to a high growth potential sector that is under-represented in the Australian share market. HNDQ is currency-hedged to the Australian dollar, which seeks to minimise the effect of currency fluctuations on returns.

HNDQ is currently outperforming its unhedged counterpart, returning 40.2% over the past year compared to 27.2%.

Major holdings include Nvidia, Apple, and Microsoft.

It pays a dividend yield of 1.5%.

The post Want to invest in the future? These technology ETFs are killing it appeared first on The Motley Fool Australia.

It is made up of the 200 largest Australian companies based on market cap.

It is heavily weighted towards Australia's largest companies like Commonwealth Bank of Australia (ASX: CBA) and mining giants like BHP Group (ASX: BHP). 

Because these companies are significantly larger than most of the others, the ASX 200 index is largely influenced by how these blue-chip companies perform. 

For example, CBA is twice as big as the next largest bank and almost 5x larger than the 11th largest company listed on the ASX. 

How did the ASX 200 perform this year

The ASX 200 index started the year at 8,201 points. 

It dropped significantly from February to early April, declining more than 14% in that span. 

This was largely due to a strong sell-off in early April as investors reacted to Tariff news from the US. 

After this initial panic, the ASX 200 steadily recovered. 

Prior to Christmas eve, it closed trading at 8,795.70 points, which is an overall rise of 7.25% for the year. 

Overall this sits just below, but close to an average year for the index. 

Motley Fool research shows the ASX 200 has compounded at roughly 9% per annum over the last 10 years, dividends included.

How does this compare to the US?

Two of the key indexes investors pay close attention to in the US are the S&P 500 Index (SP: .INX) and the NASDAQ-100 Index (NASDAQ: NDX). 

The first, the S&P 500 index, is widely regarded as the best single gauge of large-cap U.S. equities. 

The index includes 500 leading companies and covers approximately 80% of available market capitalisation.

Meanwhile, the Nasdaq 100 Index includes 100 of the world's largest non-financial companies listed on the broader Nasdaq sharemarket. 

As a collection of dynamic companies at the forefront of innovation, the Nasdaq 100 Index has come to represent the 'new economy'. 

This year, the S&P 500 Index has risen 17.21%. 

Meanwhile, the NASDAQ-100 Index has risen 21.39%. 

Since 1985 (until December 2024), the NASDAQ-100 index has provided an average annual return of 14.25%, compared to 11.57% for the S&P 500. 

How do investors get exposure?

For investors looking to track these Australian and global indexes, there are many ASX ETFs to choose from. 

For exposure to the ASX 200, some options include: 

• BetaShares Australia 200 ETF (ASX: A200)
• iShares Core S&P/ASX 200 ETF (ASX: IOZ)
• SPDR S&P/asx 200 Fund (ASX: STW)

To track the S&P 500: 

• iShares S&P 500 ETF (ASX: IVV)
• SPDR S&P 500 ETF Trust (ASX: SPY)

To track the NASDAQ 100, investors can consider: 

• BetaShares NASDAQ 100 ETF (ASX: NDQ)
• Betashares Nasdaq 100 ETF – Currency Hedged (ASX: HNDQ)

The post Did the ASX 200, NASDAQ 100, or S&P 500 perform better this year? appeared first on The Motley Fool Australia.

Ongoing strength in the US market is lifting not just ASX ETFs holding US stocks but also those holding diversified international shares.

This is because US shares dominate diversified global ETFs as America is home to so many of the world's largest and most profitable businesses.

For example, the VGS ETF is invested in about 1,300 of the world's largest companies listed in major developed countries.

About 76% of those companies are in the US.

Another example is the iShares Global 100 AUD ETF (ASX: IOO), which seeks to track the performance of the 100 biggest global equities.

Just under 81% of IOO ETF holdings are US shares.

Last night, the benchmark index for the US market, the S&P 500 Index (SP: .INX), smashed another record high at 6,698.88 points.

The S&P 500 is up 13.8% in the year to date compared to an 8.2% bump for the S&P/ASX 200 Index (ASX: XJO).

Last night, the Dow Jones Industrial Average Index (DJX: .DJI) also hit a record 46,447.13 points, up 9% this year.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) followed suit with its own record of 22,801.90 points, up 26.8% in 2025.

On the ASX today, the ASX 200 is up 0.74% and the S&P/ASX All Ordinaries Index (ASX: XAO) is up 0.69%.

Let's look at some of the ASX ETFs holding international shares that are setting new 52-week highs, if not all-time records, today.

International ASX ETFs smash records on Tuesday

The post Own IOO, IVV, or VGS ETFs? They're smashing records today! appeared first on The Motley Fool Australia.

This follows a big session on Wall Street, with the benchmark S&P 500 Index (SP: .INX) reaching another record close of 6,656.8 points.

Today's strong market appears to be having an outsized impact on ASX exchange-traded funds (ETFs).

At the time of writing, an extraordinary number of ETFs have hit new 52-week highs, or multi-year highs, on the back of today's exuberance.

In fact, at the time of writing, 68 ASX exchange-traded funds have hit new high prices.

Macroeconomic elements may be playing a role in the market surge.

Yesterday, we had the news that the US Fed Reserve has cut interest rates and Australia's jobless rate held steady last month.

ETFs are a favoured way for Aussie investors to access international markets without the hassle of trading on an overseas exchange.

The amazing three-year run for US equities has inspired Aussie investors to think beyond the ASX 200 and the local banks and miners.

The popularity of ETFs is a global trend playing out strongly in Australia.

Betashares data shows Australian investors ploughed a record $5.28 billion into ASX ETFs in July alone.

68 ASX shares setting new records today

Here is a sample of the 68 ASX exchange-traded funds smashing new highs today.

The post 68 ASX ETFs smash multi-year highs amid strong trading on Friday appeared first on The Motley Fool Australia.

This week, the Australian dollar has gained ground against many major currencies. This comes after being historically weak for much of the year. 

Most notably, AUD/USD has surged to its strongest level in six weeks.

According to analysis from The Bull, this is largely attributed to the market's interpretation that the US labor market is cooling, reinforcing expectations of imminent monetary policy easing by the Fed.

Why does it impact ASX ETFs?

ASX ETFs that track global markets are either hedged or unhedged. 

Currency-hedged means the fund is designed to reduce (or eliminate) the impact of exchange rate fluctuations.

Therefore the recent rise of the AUD won't impact these funds. For example, if you own the iShares S&P 500 AUD Hedged ETF (ASX: IHVV), you're only exposed to the S&P 500's actual performance, regardless of currency fluctuations.

However if a fund is not hedged, when the AUD strengthens, each USD is worth fewer AUD. This means returns fall, even if the indexes like the S&P 500 Index (SP: .INX) rises.

What does it mean if you're holding non-hedged ASX ETFs?

If you already own a non-hedged ETF that's invested in US stocks, a strengthening Australian dollar can negatively impact your investment returns. 

That's because your ETF holds assets denominated in U.S. dollars. When those are converted back into AUD, a stronger local currency reduces the value of those USD-denominated gains. 

So even if the US market performs well, part of that growth can be offset by currency movements. 

In contrast, if you own a non-hedged ETF, your returns are directly influenced by both the performance of the underlying U.S. stocks and the AUD/USD exchange rate.

What does it mean if you're looking to buy?

If you think AUD will strengthen, hedged funds can protect your returns.

If you think AUD will weaken, a non-hedged fund can potentially boost your AUD returns.

In the long-term, these fluctuations will mostly balance out. Currency-hedged funds may seem like a simpler choice. However they often come with higher fees due to the increased management required. But for some investors, this is worth the peace of mind.

If you are considering buying a US focussed ASX ETF, some common non-hedged options may include: 

• BetaShares NASDAQ 100 ETF (ASX: NDQ)
• iShares S&P 500 ETF (ASX: IVV)

On the flip side, hedged ASX ETFs tracking the US market include: 

• iShares S&P 500 AUD Hedged ETF (ASX: IHVV)
• Betashares Nasdaq 100 ETF – Currency Hedged (ASX: HNDQ)

The post What does the surging Aussie dollar mean for non-hedged ASX ETFs? appeared first on The Motley Fool Australia.

Many investors use these funds to gain exposure to international markets like the S&P 500 Index (SP: .INX) or NASDAQ-100 Index (NASDAQ: NDX).

However when you choose funds that track these markets, you might be faced with the decision of hedged or unhedged funds. 

That's because these funds are tracking companies based in other countries. 

What is currency hedging?

Currency-hedged ETFs are exchange-traded funds that are designed to reduce (or eliminate) the impact of exchange rate fluctuations on investment returns when investing in foreign assets.

When you invest in international stocks or bonds, you're exposed not just to the performance of those assets, but also to changes in the foreign currency against your home currency.

This year, the Australian dollar has been volatile compared to the USD. The value of $1 AUD fell as low as 60 US cents in April, and has slowly climbed back to around 65 US cents at the time of writing. 

Let's look at how this has impacted ETFs that track the S&P 500 Index (SP: .INX). 

Impact on non-hedged ASX ETFs 

If you own a non-hedged ASX ETF that tracks a US index like iShares S&P 500 ETF (ASX: IVV), your returns are affected by:

• The performance of the S&P 500 (in USD)
• The AUD/USD exchange rate

When AUD is weak like it was in April (around 60¢), each USD of S&P 500 return converts into more AUD. This means your returns in AUD increase and you benefit from currency depreciation. 

However, when the AUD strengthens, each USD is worth fewer AUD. This means your AUD returns fall, even if the S&P 500 rises in USD. 

Hedged ETFs 

Now lets look at a hedged fund, like iShares S&P 500 AUD Hedged ETF (ASX: IHVV).

This ETF hedges currency exposure using derivatives, aiming to keep returns in AUD terms only reflecting the S&P 500.

Whether the AUD goes up or down doesn't materially affect returns.

You're only exposed to the S&P 500's actual performance, not currency fluctuations.

Are hedged ASX ETFs better?

Unfortunately, it's not as simple as which option is better or worse. It largely depends on your risk appetite and personal preference. 

Over the long term, currency fluctuations will likely balance out. 

However, some investors may prefer to avoid these rises and falls, particularly if you invest in funds that are exposed to more volatile economies. 

What are some common hedged funds?

If you are looking to invest in currency hedged ETFs, here are some to consider: 

• Betashares Nasdaq 100 ETF – Currency Hedged (ASX: HNDQ)
• Vanguard MSCI Index International Shares (Hedged) ETF (ASX: VGAD)
• Betashares Global Quality Leaders ETF – Currency Hedged (ASX: HQLT)
  

Some more thematic options include: 

• BetaShares Global Healthcare ETF – Currency Hedged (ASX: DRUG)
• Vaneck Msci International Small Companies Quality (Aud Hedged) Etf (ASX: QHSM)

The post Is it a good time to focus on currency hedged ASX ETFs? appeared first on The Motley Fool Australia.

If you need a refresher, a bear market is defined as a peak-to-trough drop of 20% or more for a flagship index from its most recent high. Between 19 February and 8 April, the Nasdaq 100 fell by 22.9%, marking its first bear market since the tightening tumble of 2022.

However, that bear market was short-lived. Since 8 April, the index has now rebounded by a rosy 24%, including last night's healthy 1.58% rise. Thanks to the strong gains we've seen this week, the Nasdaq 100 is now up 22% from that 8 April low. This means that the index has now entered a bull market, which is defined as a 20% rise from the most recent low.

But which ASX exchange-traded funds (ETFs) have benefited the most from the Nasdaq 100's new bull market? That's what we'll be diving into today.

The ASX ETFs benefitting from the Nasdaq bull market

The Nasdaq is one of two major stock exchanges that represent the US markets. The other is the New York Stock Exchange. The Nasdaq is well-known for hosting most of the major American tech companies, including the likes of Apple, Microsoft, Amazon, Alphabet, and Tesla.

When it comes to ASX ETFs, the most obvious candidate is, of course, the BetaShares Nasdaq 100 ETF (ASX: NDQ). This index fund mirrors the Nasdaq 100 index itself, minus some financial stocks. As such, those major US tech stocks make up a huge chunk of this ETF.

Since 7 April, NDQ units have joined the bull market and have risen by a healthy 19%.

This index fund also had a hedged iteration in the BetaShares Nasdaq 100 Currency Hedged ETF (ASX: HNDQ). This ETF is identical to NDQ, but mitigates the effects of currency movements using hedging. HNDQ units are up 28% from that 7 April low.

But this isn't the only ASX ETF that has benefited from the Nasdaq 100's return to bull market mode. Another fund that has ridden this index's coattails is the Global X FANG+ ETF (ASX: FANG). Instead of holding dozens of individual Nasdaq-listed stocks, this ETF holds just ten. However, nine of those then stocks are all Nasdaq heavyweights. There are all seven of the 'Magnificent Seven' tech giants, including those listed above. In addition, FANG also offers exposure to Netflix, Broadcom, and CrowdStrike Holdings.

Since 7 April, FANG units have vaulted 29% higher.

Those are the ASX ETFs that have seen the most gains as a result of the new bull market the Nasdaq 100 Index has entered into. However, since the Nasdaq's largest holdings are also the largest companies on the US markets, any US-based market ETF would have also benefited enormously. Let's see if this new bull market holds out for the rest of 2025.

The post The Nasdaq 100 Index just entered a bull market. Which ASX ETFs benefited the most? appeared first on The Motley Fool Australia.

Back in mid-March, the Australian dollar was buying around 64 US cents. But by 8 April, a few days after Trump's 'Liberation Day' tariff announcements, one Aussie dollar was buying just 59.14 US cents.

The dollar has since bounced back against the Greenback, presently buying roughly 63.7 US cents.

Given the magnitude of these swings and the ongoing uncertainty regarding the stability of US trade policy, it's probably fair to say that we could continue to see big swings in this exchange rate.

This, of course, has some profound implications for ASX investors. If you own any US stocks or even ASX-listed exchange-traded funds (ETFs) that hold US stocks, the US-Australian dollar exchange rate can have a big impact on the value of your portfolio.

Does a lower dollar benefit ASX investors?

In general, a lower Australian dollar (or higher US dollar) is good news for Australian investors holding US-denominated investments. A lower Aussie dollar means that American investments can be sold for comparatively more Australian dollars. Further, any dividends that these investments pay out in US dollars are also inherently more valuable to ASX investors.

However, as with most things in investing, it is also a double-edged sword. For example, a lower Aussie dollar means that it is more expensive to purchase additional Benjamins if an investor wishes to double down on their American investments.

This dynamic, together with the enhanced volatility that both the US and Australian dollars are currently experiencing, might help explain why demand for dollar hedging is reportedly at a five-year high.

Yep, according to Bloomberg, demand for hedging against currency movements has "jumped to a five-year high" amid Trump's tariff policies. This, according to the report, "threatens to sap US economic exceptionalism and undermine the greenback" in many investors' minds.

Here's how Bloomberg explained this trend:

An index measuring three-month risk reversals — or the spread between call and put options — on the dollar against 12 of its major peers has dropped to the lowest level since the depth of the global pandemic in March 2020.

So, should ASX investors follow suit and opt for 'hedged' ETFs rather than unhedged ones? ETFs that are hedged use financial instruments to nullify any impacts on the value of these funds from currency movements. Unhedged funds offer no such protections, of course.

Hedged or unhedged: Which ASX ETFs to buy?

Many of the ASX's most popular international-based ETFs and index funds offer currency-hedged versions. These include the iShares S&P 500 (AUD Hedged) ETF (ASX: IHVV), the BetaShares Nasdaq 100 Currency Hedged ETF (ASX: HNDQ), and the VanEck Morningstar Wide Moat (AUD Hedged) ETF (ASX: MHOT).

So, are these funds a better bet than their unhedged counterparts?

Well, I tend not to think so. The Australian dollar and the US dollar have long had a volatile relationship. Some of us might remember the days of parity back in the early 2010s when the Aussie would buy more than one US dollar. Fewer of us might also remember the dark days of the turn of the millennium when the Aussie slid as low as 50 US cents.

Predicting what might happen in the foreign exchange markets is almost as difficult as predicting what the share market will do tomorrow.

Personally, I don't bother to. What is more important, in my view at least, is investing in assets that offer compounding growth for years into the future.

Most hedged ASX ETFs will charge you for the service, too. For example, the management fee for the iShares S&P 500 ETF (ASX: IVV) is currently 0.04% per annum. But its hedged IHVV sibling will cost an investor 0.1% per annum.

I would rather take the cheaper fund and deal with the currency fluctuations as they happen. Over the long run, I think a lower fee beats the chance of saving you a few dollars from a fluctuating currency.

The post US dollar hedging demand hits five year high. Should ASX ETF investors consider hedged ETFs? appeared first on The Motley Fool Australia.

The Australian dollar was trading as low as 59.33 US cents yesterday. For context, it was as high as 69 US cents late last year.

This is important for many reasons, but for investors, it can impact the returns of US focussed funds. 

Hedged vs non-hedged ETFs

So what does "hedged" and "non-hedged" mean in the context of ETFs (Exchange-Traded Funds)?

If the ETF aims to protect from fluctuations between the base currency and the currency of the investor it's hedged.

A non-hedged ETF does not protect against currency movements. 

So, in the case of US focussed ETFs, which is better? 

Let's look at an easy comparison between two funds that both track the NASDAQ-100 Index (NASDAQ: NDX).

BetaShares NASDAQ 100 ETF (ASX: NDQ)

This fund aims to track the performance of the NASDAQ-100 Index (NASDAQ: NDX). This index includes the 100 largest non-financial companies listed on the NASDAQ stock exchange. 

The fund is also unhedged.

This means the ETF does not take any steps to protect or offset the impact of currency fluctuations between the Australian dollar (AUD) and the US dollar (USD).

It has not been immune to the rough start to 2025, falling 19.04% during that span.

Betashares Nasdaq 100 ETF – Currency Hedged (ASX: HNDQ)

This ETF also aims to track the performance of the NASDAQ-100 Index (NASDAQ: NDX). However in this case, the foreign currency exposure is hedged back to the Australian dollar.

It has fallen 21.71% this year despite the fund's objective to minimise the effect of currency fluctuations on returns.

Which is better?

The ebbs and flows of a currency value can be difficult to predict (much like the stock market).

Let's hypothetically project the US stocks in these ETFs rise by 5% in USD terms.

If the AUD strengthens against the USD by 3%, this would reduce the gain when converted back to AUD. That's because the value of your investment in AUD terms would decrease due to the stronger Australian dollar.

Conversely, if the AUD weakens by 3% against the USD, your 5% gain could be amplified when converted to AUD.

Generally, conventional wisdom says to buy the hedged ETF when the Australian dollar is low, and buy the unhedged version when the Aussie is high against other currencies.

At the time of writing, the theory would suggest buying a hedged ETF like HNDQ.

However it can be difficult to predict just how low (or high) the Aussie dollar, and the NASDAQ 100 are likely to go in this (or any) economic climate. 

The performance of these funds in 2025 also shows this isn't a perfect science. The hedged fund has actually fallen more than the non-hedged fund this year. 

The road ahead

Here at The Motley Fool, we are long-term investors.

So if we zoom out a little, and try not to be a prisoner of the moment, you might feel reassured knowing the NASDAQ 100 has had a positive return during 14 of the 17 years between 2008 and 2024.

It has had a return of 109.02% over the last five years. 

Therefore, if you are an investor with time on your side and are interested in a US based ETF, you don't need to time the market to perfection. 

It might fall further, but it also could be a long time before you can buy shares in 100 of the largest US blue-chip companies at such a discount.

The post Australian dollar plunges: should I buy hedged or unhedged ASX US-focused ETFs? appeared first on The Motley Fool Australia.

As I went through last weekend, although ASX shares and ETFs were my first and, for a long time, only investments, my portfolio now contains more US shares and ETFs than ASX ones.

But even so, there are several ASX ETFs that I currently own now.

The index funds

First and foremost amongst these is the Vanguard Australian Shares Index ETF (ASX: VAS).

VAS is the quintessential ASX index fund. It represents an investment in the largest 300 Australian shares listed on the ASX. That's everything from BHP Group Ltd (ASX: BHP) and National Australia Bank Ltd (ASX: NAB) to Ampol Ltd (ASX: ALD) and Aussie Broadband Ltd (ASX: ABB).

I like VAS for its simple and cheap exposure to the Australian stock market. I'm happy to pay VAS' management fee of 0.08% per annum for this access. Given its decent long-term historical return of 9.15% per annum (as of 31 December) and the hefty dividends this ETF habitually pays out, I am happy to hold this position for the long term, just in case my individual share choices don't end up being market-beaters.

In addition to VAS, I also own the Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO). This ASX ETF complements the Vanguard Australian Shares ETF with its portfolio of around 180 smaller companies on the ASX. Instead of BHP and NAB, VSO's largest holdings are stocks like JB Hi-Fi Ltd (ASX: JBH) and Bendigo and Adelaide Bank Ltd (ASX: BEN).

I think this ETF nicely balances out VAS. Together, these two funds offer a more well-rounded exposure to the Australian markets than either one individually.

The other index fund in my portfolio is the BetaShares Nasdaq 100 Currency Hedged ETF (ASX: HNDQ).

This ETF covers the largest 100 non-financial shares listed on the tech-heavy NASDAQ-100 (INDEXNASDAQ: NDX) Index. It's a great way to easily add exposure to American tech giants like Apple, Amazon, Tesla and NVIDIA, as well as other tech heavyweights like Airbnb, Netflix, PayPal and Texas Instruments.

Other ASX ETFs

There are another two ASX ETFs in my portfolio that are worth mentioning. Neither are the broad-based market index funds that we see above.

Firstly, there's the iShares Global Consumer Staples ETF (ASX: IXI). I love consumer staples shares for their defensive nature and ability to ring in profits during all kinds of economic weather. The ASX doesn't have too many global consumer staples companies, so this ETF is a great way to get exposure to the likes of Walmart, Costco, Unilever, Procter & Gamble, Colgate-Palmolive and Coca-Cola.

I like the defensiveness and stability that this ETF adds to my portfolio.

Secondly, there's the VanEck Morningstar Wide Moat ETF (ASX: MOAT). This is a peculiar ETF in that it holds an actively managed portfolio of US shares selected based on business characteristics. In this case, those characteristics are the perceived possession of a wide economic moat.

This Warren Buffett term refers to a company's inbuilt competitive advantage over its competition. Buffett himself has said he likes to look for it in a new investment.

MOAT has been an exceptional performer in my portfolio for a number of years. Since this ETF's inception in 2015, it has managed an average performance of 16.16% per annum (as of 31 December). As long as this ASX ETF is bringing home those kinds of returns, it has a place in my investing house.

The post The only Australian ETFs I own at the start of 2025 appeared first on The Motley Fool Australia.

None of us really enjoy seeing our ASX share portfolios take a hit during a tough time like what we are currently seeing. Losing money is never fun, particularly when it's out of our control.

However, these share market swings and roundabouts are an inescapable part of investing. As such, there are three paths forward we can choose to go down.

The first is selling shares out of fear that you will lose even more money. Whilst understandably appealing, this path is almost always a mistake, and will eventually lead to financial ruin.

The second is to do nothing. If you're too nervous about the current market situation to muster up the courage to buy more shares, there's nothing wrong with sitting on your hands. It's a lot better than selling out, that's for sure.

But I'm going to be taking a third path if the markets keep on dropping – buying up even more of my favourite ASX shares.

The legendary investor Warren Buffett once said this:

Widespread fear is your friend as an investor because it serves up bargain purchases.

This has been proved time and time again to be true. The stock market may be a volatile place. But it tends to go up far more often than it goes down. Remember, it was only a few weeks ago that the ASX 200 was cracking fresh new all-time highs.

So I'm taking this chance, when there's clearly a bit of fear in the markets, to take a look at buying some more of my favourite ASX shares.

Which ASX shares am I looking to buy in this market dip?

Which shares, you may ask? Well, I've already talked a bit about Telstra Group Ltd (ASX: TLS) this month. I continue to view Telstra as undervalued and a bargain at its current share price.

But I'd also consider three or four more of my favourite investments.

One is the VanEck Morningstar Wide Moat ETF (ASX: MOAT). This actively managed exchange-traded fund (ETF) has a long history of delivering market-beating returns.

But this ETF has retreated by around 5% since the start of April. It's starting to look mightily attractive from my viewpoint.

Ditto with Washington H. Soul Pattinson and Co Ltd (ASX: SOL). Soul Patts shares have also been a huge winner for me over many years. Since last Wednesday, this company has given up more than 6% of its value. It still isn't in 'screaming bargain' territory for me. But it's looking a whole lot finer than it was at the start of last week.

Finally, I'm a big fan of index investing. Index funds are a great investment to employ a dollar-cost averaging strategy.

So if the markets continue to drop next week, I'll be seriously considering adding to the likes of the BetaShares Nasdaq 100 Currency Hedged ETF (ASX: HNDQ) and the Vanguard Australian Shares Index ETF (ASX: VAS) positions in my portfolio.

Share market dips are scary. But they don't happen too often, and, as such, I'm looking to grab this current one's buying opportunities with both hands.

The post I'm buying these quality ASX shares to capitalise on the decline appeared first on The Motley Fool Australia.

To be fair, I've also had a few winners, such as Tesla Inc (NASDAQ: TSLA), and Duolingo Inc (NASDAQ: DUOL). But I've long accepted that growth shares aren't my forte.

But that doesn't mean I don't invest in growth shares. I do. I just do so using exchange-traded funds (ETFs). You can too. So today, I'm going to discuss two growth-based ETFs that have worked wonders in my portfolio, and which I think would do nicely if you had $3,000 to invest in growth shares today.

An ASX investment strategy for ultimate growth

First up, let's talk about the VanEck Morningstar Wide Moat ETF (ASX: MOAT). This ETF isn't your typical index fund. It invests in a portfolio of US shares that indicate that they possess an economic moat of sorts. A moat is a term originally used by legendary investor Warren Buffett. It refers to a competitive advantage that a company can possess that protects it from competition.

This might be a powerful and trusted brand, a product that customers can't turn away from, or else a patent that can't be legally copied.

Often, these ETF holdings might not seem like typical growth names. For example, some of its current shares include Nike, Disney and Pfizer.

However, when the rubber hits the road, this ETF shines. As of 30 November, it has averaged an average performance of 15.01% per annum over the past five years. That's a number that should draw the eye of any growth investor.

The best tech stocks in the world

Another ASX ETF I use to gain exposure to growth shares is the BetaShares NASDAQ 100 ETF (ASX: NDQ). Along with the NYSE, the Nasdaq is one of the two major stock exchanges over in the United States. It is known for housing most of the American tech stocks we know and love. It's for this reason that this index fund is one of my major growth investments.

Amongst this ETF's top holdings, you'll find the likes of Amazon, Apple, Microsoft, Tesla, and Alphabet. All of these companies have delivered phenomenal returns to investors over the past decade. But you'll also find up-and-coming innovators like PayPal, Airbnb, Netflix, Starbucks, MercadoLibre and LuluLemon.

This fund has done even better than the Wide Moat ETF over the past five years. It has averaged a performance of 18.62% per annum over the last five years, and almost 28% over the past 12 months alone.

I've actually opted for the BetaShares Nasdaq 100 ETF – Currency Hedged (ASX: HNDQ), a currency-hedged version. This is due to the current Aussie dollar exchange rates. But I'll probably switch over to the unhedged iteration when the currency outlook is better.

The post My $3,000 ASX investment strategy for ultimate growth appeared first on The Motley Fool Australia.

From Xero Limited (ASX: XRO) to WiseTech Global Ltd (ASX: WTC), from Zip Co Ltd (ASX: ZIP) to Altium Limited (ASX: ALU), the ASX is certainly an exciting place for many tech enthusiasts.

It's a similar story for access to Nasdaq stocks. The Nasdaq is one of the two major stock exchanges in the United States. It is famous for housing most of the US's largest and most well-known tech shares. That's everything from Apple, Microsoft, Amazon, Google-owner Alphabet to Netflix, Tesla, PayPal, and Airbnb.

However, until very recently, the ASX was home to only one exchange-traded fund (ETF) that tracked the Nasdaq Index (two if you include the currency-hedged alternative). That ETF was the BetaShares NASDAQ 100 ETF (ASX: NDQ), alongside its hedged sibling – the BetaShares NASDAQ 100 ETF – Currency Hedged (ASX: HNDQ).

It was only in August of this year that we saw a rival launch when the Global X US 100 ETF (ASX: N100) was added to the ASX.

This means ASX tech investors have a choice of going for ASX tech shares like Xero, WiseTech Global, and Zip, or else opting for one of these Nasdaq ETFs.

So which would I choose?

Would I buy ASX tech shares or a Nasdaq 100 ETF?

First up, I don't own ASX tech shares. However, I do own the hedged iteration of the BetaShares Nasdaq 100 ETF. That should answer this question, so see you next week.

No, in all seriousness, I have great respect for most of the ASX's best tech stocks. The success of WiseTech Global and Xero has made not owning them over the past five years a painful experience.

However, I have just never been comfortable investing in these companies. Xero clearly has a great product to offer. But its international rival Quickbooks, owned by the US giant Intuit, has always given me pause. Intuit is a mountainous US$148.2 billion ($233 billion) company, which makes the $14.8 billion Xero look like a relative molehill.

If Intuit decides to try and cut Xero's lawn, it could lead to a bad outcome for shareholders.

WiseTech is also an interesting one. It also obviously has a great product to offer with its flagship CargoWise logistics platform. But this is an area I just don't understand too well, and thus can't justify an investment. Plus, as with Xero, its shares have rarely looked cheap to me.

In stark contrast, a Nasdaq ETF is jam-packed with companies that are unrivalled in scope, scale, and dominance. Apple, Microsoft, Amazon, Netflix… these are names that I feel far more comfortable owning by proxy. Additionally, I was able to buy them at compelling prices when I invested in the Nasdaq ETF.

I haven't ruled out buying ASX tech shares. But until now, a Nasdaq investment has just made more sense for my own investing style.

The post Which would I buy: Nasdaq 100 ETF (NDQ) or ASX tech shares appeared first on The Motley Fool Australia.

But despite this sluggish performance from the broader market, I fortunately have a few stocks that have performed far better than the index. Let's discuss my best ASX shares.

3 of my best-performing ASX shares in 2023

Newcrest Mining Ltd (ASX: NCM)

My position in ASX 200 gold miner Newcrest has been a bright star in my portfolio this year. Since January, the Newcrest share price has gained a healthy 15.3%, helping to buttress my portfolio against other losses.

There's no mystery with this one. The takeover offer from the giant US gold miner Newmont Corporation (NYSE: NEM) has lit a fire under the Newcrest share price in 2023.

Shareholders in Newcrest will do especially well when the monster US$1.10 per share dividend is paid out in a few days' time, coming just after Newcrest is set to depart the ASX forever on 26 October.

BetaShares NASDAQ 100 ETF – Currency Hedged (ASX: HNDQ)

This exchange-traded fund (ETF) has been another major winner in my ASX portfolio in 2023 to date. HNDQ units have bucked the ASX mightily, rising a very welcome 31.9% over the year so far.

The NASDAQ 100 ETF tracks the US NASDAQ-100 Index (NASDAQ: NDX). This index houses most of America's large tech stocks, including Apple, Microsoft, Alphabet, Netflix and Amazon.

These stocks have done a lot better than most this year, which explains why this tech-heavy ETF has been such a winner.

MFF Capital Investments Ltd (ASX: MFF)

Finally, let's talk about the listed investment company (LIC) MFF Capital. This LIC also holds mostly US shares, which again explains why investors have been benefitting from a stonking 28.6% runup in the MFF share price so far this year.

MFF holds a relatively concentrated portfolio of quality names, including Amazon, Alphabet, Mastercard and Visa. It manages this portfolio on behalf of its investors.

Unlike the HNDQ ETF, this ASX share isn't currency hedged, which means that the falling Australian dollar is giving its share price an extra boost. Needless to say, I've very much appreciated having this LIC as a core component of my portfolio. It is one of my best ASX shares in 2023 so far.

The post Here are my best ASX shares of 2023 so far appeared first on The Motley Fool Australia.

I have three in mind for this month for my own portfolio.

3 ASX shares I'm excited to buy in June

BetaShares NASDAQ 100 ETF – Currency Hedged (ASX: HNDQ)

This exchange-traded fund (ETF) comes in first. The BetaShares NASAQ 100 ETF is one of the index funds that I try and add money to as often as possible. The NASDAQ is one of the two major stock exchanges over in the United States. It is well known for its tech dominance, with most of the top holdings being the likes of Apple, Alphabet, Tesla and Amazon. The HNDQ ETF also gives ASX investors decent exposure to the recent semiconductor star NVIDIA Corporation too.

I am currently invested in the hedged iteration of this fund thanks to the current low position of our dollar against the US dollar. While the dollar stays in its current range, this is the fund I am prioritising most for my US tech exposure.

National Australia Bank Ltd (ASX: NAB)

NAB was one of the first shares I ever bought and remains the only ASX big four bank in my portfolio. I consider NAB to be one of the most well-run ASX banks, and I have been impressed with CEO Ross McEwan's tenure so far.

The NAB share price has lost almost 18% of its value since February. Today is trading at its lowest level in almost a year, this is another ASX share that I'm eyeing off this June. Especially that 6%-plus fully-franked dividend yield.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is my final stock on the old June watchlist. This ASX 200 retail and industrial conglomerate is ASX royalty, with a long and strong history of delivering solid returns to its investors. I still think this company is one of the best-run businesses on the ASX.

It has many valuable assets, including the OfficeWorks and Kmart chains, as well as a litany of other, smaller businesses like mining companies, lithium and workwear. But Wesfarmers' crown jewel continues to be the highly successful Bunnings chain.

The Wesfarmers share price has come off the boil somewhat over May, currently down close to 8% this month. But that's exactly why I'm considering picking up some shares this June. This fall puts the Wesfarmers dividend yield back to almost 4%, for one. But I consider Wesfarmers to be a superlative 'bottom-drawer stock' that I'd be happy to add to.

The post 3 ASX shares I'm super excited to buy in June appeared first on The Motley Fool Australia.

Although the funds themselves are traded on the ASX, many of these contain overseas stocks.

The situation then gets complicated because the buying and selling price for these shares becomes dependent on the exchange rate of the Australian dollar.

Some ETF providers have provided a solution around this by providing currency-hedged funds.

Hedged funds will use financial instruments to smooth out the effects of any exchange rate fluctuations over time.

So when should you buy into a currency-hedged ETF, and when should you go for the unhedged ETF?

Shaw and Partners portfolio manager James Gerrish gave his thoughts recently on this dilemma:

The Australian dollar is a risk currency

Gerrish took the example of Betashares Nasdaq 100 ETF (ASX: NDQ) and BetaShares NASDAQ 100 ETF-Currency Hedged (ASX: HNDQ).

"These are ASX listed ETFs yet they are holding US assets such as Microsoft Corp (NASDAQ: MSFT), Apple Inc (NASDAQ: AAPL) and Amazon.com Inc (NASDAQ: AMZN)," he said on a Market Matters Q&A.

"NDQ is not hedged whereas the HNDQ ETF is currency hedged."

He explained that if the NASDAQ-100 (NASDAQ: NDX) rises by 10%, HNDQ is designed to do the same.

"NDQ is also exposed to the vagaries of the Australian dollar," said Gerrish.

"If the Aussie falls by 10% your gains on the underlying stock could be wiped away and, of course, vice versa."

The conventional wisdom is to buy the hedged ETF when the Australian dollar is low, and buy the unhedged version when the Aussie is high against other currencies.

However, Gerrish's insight is that the difference is not as significant as one might think.

"Unhedged exposures generally have a smoothing effect on returns for Australian investors given the Australian dollar is a risk currency," he said.

"When markets fall, the Australian dollar generally falls as well, cushioning the decline."

Over the past year, NDQ has fallen 11.5% while the currency-hedged HNDQ has lost 17%.

The post Hedged or unhedged: Which ASX ETF do I buy? appeared first on The Motley Fool Australia.

Obviously, there will always be domestic happenings that shift the ASX. But generally, you can compare the movements of the ASX 200 to the S&P 500 without much difficulty.

Don't believe me? Take a look at these graphs depicting year-to-date trading of the ASX 200 – represented here by the iShares Core S&P/ASX 200 ETF (ASX: IOZ) – and the S&P 500 – represented by the iShares S&P 500 (AUD Hedged) ETF (ASX: IHVV).

Side by side, it's not hard to see the correlation between the two.

So, why does the ASX trend so closely alongside the US stock market? Let's dive into two potential answers.

Globalisation and the ASX 200

Basically, the ASX 200 doesn't exist in a vacuum. Plenty of US investors invest in the ASX 200, while plenty of ASX 200 companies invest in the US. Not to mention, many companies on the ASX 200 likely do some element of their business with the US or US-owned companies.

Also, the cultural cross over between the US and Australia is significant. You only have to look at how many iPhones are in the hands of Australians or how many Ugg Boots are on Californian toes to know that as individuals we buy into each other's cultures.

This has the potential to get complicated but suffice to say, money and investments flow within and between the two nations. 

Foreign investment means the ASX relies on the US stock market

The US is the largest foreign investor in Australia, according to 2019 data from the Department of Foreign Affairs and Trade. Similarly, Australia's largest foreign investment destination is the US.

Our economies are thus, intertwined in a way that means the US stock market's movements often affect Australia's. Alas, while the US is incredibly financially important to Australia, Australia isn't nearly as important to the US.

According to the US's Bureau of Economic Analysis, while Australia is the US's largest receiver of foreign investment in the Asia Pacific, we don't even figure in the list of its top 10 global investment destinations.

This may be the reason the ASX 200 relies much more on the US market than the other way around. While here in Australia, we watch the Dow Jones Industrial Average Index (DJX: .DJI) and the Nasdaq Composite (NASDAQ: .IXIC) like hawks, but arguably we're just a small island in the ocean to the US market.

The post Why is the ASX 200 (ASX:XJO) so reliant on the US stock market? appeared first on The Motley Fool Australia.

The United States's newer major stock exchange, the Nasdaq is famously home to most of the US's disruptive tech companies.

Probably as a result of this, this index has been a top performer over the past decade. The index alone is up more than 83% over the past 12 months (not even including dividends), and up 181% over the past 5 years.

Is investing in the Nasdaq a good idea?

Since the Nasdaq is a US-based index, it offers many diversification benefits for an ASX investor. Having some investments denominated in a currency outside the Australian dollar can offer some benefits in this regard.

And since the ASX's own tech sector pales in front of the Nasdaq's offerings (more on that later), it can be an easy way to increase your exposure to tech as well.

How to invest in the Nasdaq on the ASX

Well, there are 2 ASX exchange-traded fund (ETF) that directly track the Nasdaq, both from BetaShares. They are the BetaShares Nasdaq 100 ETF (ASX: NDQ) and the BetaShares Nasdaq 100 ETF-Currency Hedged (ASX: HNDQ).

These two ETFs are almost identical, they both mirror the NASDAQ-100 (INDEXNASDAQ: NDX), which holds the 100 largest companies in the Nasdaq Composite.

However, HNDQ is a hedged ETF, which means that it takes currency fluctuations between the US and Aussie dollar out of the equation. In exchange for a slightly higher management fee of course.

NDQ's management fee is 0.48% per annum, while HNDQ's fee is 0.51%. Movements in the exchange rate will affect NDQ though.

So, let's look at which companies these ETFs hold. Here are the top 10, according to BetaShares:

So it is very obvious here where the Nasdaq gets it's 'tech-heavy' reputation from. There are some 'non-tech' companies in the index as well, such as PepsiCo Inc (NASDAQ: PEP). But almost half of the index is allocated to the tech space.

Past performance doesn't guarantee future success

So we've already touched on the Nasdaq's performance history. But let's take a look at the BetaShares Nasdaq 100 ETF's performance, given that it takes into account the currency fluctuations that we Australians face.

So according to BetaShares, NDQ has returned 27.34% over the past 12 months, 24.22% per annum over the past three years, and 23.67% per annum over the past five years.

That's some impressive numbers to be sure. However, it's worth noting that all sectors and indexes have their time in the sun, and the Nasdaq is no different.

Sure, this index is up an impressive 396% over the past decade. But before that, the picture was not as bright. The dot-com crash of the early 2000s hit the Nasdaq hard. In fact, it took until December 2014 for the index to once again hit the peaks that it first hit back in early 2000.

The post How to invest in the Nasdaq Index on the ASX appeared first on The Motley Fool Australia.

If you dig a little deeper in your own cupboard, you might find Kellogg Company (NYSE: K) cereal or razors made by Procter & Gamble Co's (NYSE: PG) Gillette.

American companies are everywhere in Australian life, often hiding under familiar brands. Take the popular ice creams Paddle Pop and Golden Gaytime. They are actually owned by the British-Dutch company Unilever UN (NYSE: UL), listed in the US.

So it's understandable that Aussie investors might want a slice of the pie. And they do. You can take a look at our coverage of some of the most popular US shares that Aussie are buying.

Recently, we covered how the rising Australian dollar was making investing in US shares more attractive. So if you've never taken the plunge across the Pacific, it might be a good time to have a think about it. There's nothing wrong with our own S&P/ASX 200 Index (ASX: XJO) of course. But the reality is that our market is a minnow in the ocean of global markets. The US markets are, by comparison, a pod of whales. I say a pod because the US has a few different markets you can invest in. Rather than just one major index, like our ASX 200, American investors have a few choices. There's the old-school Dow Jones Industrial Average (INDEXDJX: .DJI), the uber-popular S&P 500 Index (INDEXSP: .INX), and the tech-heavy NASDAQ-100 (INDEXNASDAQ: NDX).

Buying US shares on the ASX

You can always buy US shares directly through your ordinary broker. Many of the most popular Aussie share brokers, like Commonwealth Bank of Australia's (ASX: CBA) CommSec, or National Australia Bank Ltd's (ASX: NAB) NABtrade offer the opportunity to buy US shares like Apple or Netflix directly. There are also newer dedicated US brokers, like the popular Stake, which do the same.

However, if you don't want to buy these shares directly, there are other options. Various managed funds and Listed Investment Companies (LICs) that are listed on the ASX invest in US shares. Some popular examples include the Magellan Global Fund (ASX: MGF) and MFF Captial Investments Ltd (ASX: MFF).

Otherwise, there are always US market-tracking index funds available on the ASX as well. Some examples include the iShares S&P 500 ETF (ASX: IVV), the Vanguard US Total Market Shares Index ETF (ASX: VTS), and the BetaShares Nasdaq 100 ETF (ASX: NDQ). There's also a couple of currency-hedged options for the investor who wants to take currency fluctuations out of the equation. These include the iShares S&P 500 AUD Hedged ETF (ASX: IHVV) and the BetaShares NASDAQ 100 ETF – Currency Hedged (ASX: HNDQ).

Foolish takeaway

For the investor who wants to branch out and invest in US shares, there are more options available than ever. In the end, it just depends on your individual preferences as to which route you wish to take.

The post How to invest in US shares in 2021 appeared first on The Motley Fool Australia.

So there are now all sorts of funds that represent different indices, sectors, investment strategies and assets.

Investment services provider BetaShares recently extracted ASX data from 1 January to 30 September to work out which ETFs attracted the most amount of investor money.

And the analysis makes for fascinating reading.

Overwhelmingly, two asset types dominated investor money: Australian shares and international shares. They took in around $4.1 billion and $3.5 billion respectively.

Gold was a distant third with about $1.1 billion. Fixed income ETFs weren't too far behind in fourth place.

"Just because an asset class is receiving large inflows does not necessarily mean it will perform well," said BetaShares Associate Director, Michael Brown.

"It is, nonetheless, always interesting to observe where the money is flowing into and out of, to get a sense of sentiment within the overall market, and what is resonating with different types of investors."

At the end of the spectrum, currency ETFs were the only category to experience negative net investment. Geared long, commodities, Australian listed property and cash all recorded positive flows but were the least popular.

Australian shares ETFs breakdown

ETFs that represented Australian equities were then broken down to subcategories — broad, sector-based, high yield, large cap and small cap.

"Broad market exposures dominated, with just over $3.5 billion in net flows," said Brown.

"Broad market exposures are generally made up of very liquid, large companies that trade on the ASX."

He added that there might be 3 reasons why broad ETFs were so popular:

1. Many active managers have underperformed against their benchmarks this year
2. Investors reckon there's value within Australian shares
3. Broad-exposure funds have less stock-specific risk than directly picking shares

International shares ETFs breakdown

While developed world shares were easily the most popular, attracting almost $1.7 billion, sector-based ETFs fared better than in Australian equities.

Sector-based international ETFs brought in the second most amount of investor money, raking in just under $1 billion.

This is largely because of the United States technology sector's stunning rally this year.

"ETFs providing exposure to the NASDAQ-100 (NASDAQ: NDX) took the lion's share, with the BetaShares Nasdaq 100 ETF (ASX: NDQ) and the BetaShares Nasdaq 100 ETF – Currency Hedged (ASX: HNDQ) attracting ~$380 million in new money between them," Brown said.

Despite a correction in September, the Nasdaq Composite (NASDAQ: .IXIC) has gained more than 70% since the COVID-19 trough in March.

ETFs for gold, fixed income and ethical investing

Fortunately for investors in the year of the coronavirus, it's easy to invest in gold through ETFs.

"Given recent market volatility, and considering gold has traditionally been viewed as a 'safe-haven' asset, we have previously written about why there are still plenty of reasons to consider an investment in gold," Brown said.

"Gold has seen a consistent and high level of total flows this year."

Fixed income ETFs have been popular for similarly defensive reasons.

"For yield-hungry investors, we saw hybrids exposure obtain a large share of inflows with over $190 million," said Brown.

"For more defensive investors, we saw strong flows into core Aussie and Global bond indices, with Australian Government bonds a standout."

More than $900 million has also flowed into ethical investment ETFs this year, showing social responsibility ascending in priority for retail investors.

Brown said market capitalisation of ethical ETFs has increased more than 800% since December 2016.

"Since the start of the pandemic, the knock-on effects of lockdown, including restricted movements of people and the shutdown of industrial activity, have had significant impacts on global carbon emissions and the way we work," said Brown.

"Now, as we consider how best to shape the economy coming out of the crisis, ESG considerations are again coming to the forefront of investment decisions."

The post Which ETFs attracted the most money this year? appeared first on The Motley Fool Australia.