Let's see, courtesy of The Bull, if it rates them as buys, holds, or sells:

Betashares Global Royalties ETF (ASX: ROYL)

The wealth advisory firm thinks this ETF could be a buy this week.

It highlights its strong track record since inception and its attractive and predictable income as reasons to consider the fund. It said:

This exchange traded fund focuses on global companies earning royalty and intellectual property income. The benefit from companies producing royalty income is the predictable nature derived from holding the underlying investments. Sector exposure at February 27, 2026 included gold, oil, gas, pharmaceuticals and semiconductors.

Geographical exposure includes the US, Canada and Brazil. Since its inception in September 2022, the fund had returned 19.77 per cent per annum as of March 31, 2026. ROYL can be considered a solid inclusion in a balanced portfolio.

iShares MSCI Emerging Markets AUD ETF (ASX: IEM)

DP Wealth Advisory has named this emerging market fund as a hold this week.

While it is positive on what it offers investors, it isn't enough for a buy rating. It commented:

This exchange traded fund provides exposure to big and mid sized companies in emerging markets. Geographical exposure includes China, India and South Korea, among others.

The average annual total return over three years was 15.30 per cent as of March 31, 2026. A benefit of the ETF is providing exposure to companies and economies that some would find difficult to source as an individual investor.

Betashares Global Cybersecurity ETF (ASX: HACK)

This cybersecurity focused ASX ETF has been named as a sell by DP Wealth Advisory.

While the fund has been a strong performer in recent years, it thinks investors may be better avoiding it while AI disruption concerns weigh on software stocks. It explains:

This exchange traded fund tracks the Nasdaq Cyber Security Index and provides investors with exposure to the rapidly growing and ever evolving cyber security theme. Names held within the ETF included CrowdStrike Holdings, Palo Alto Networks and Cisco Systems as at April 8, 2026.

After performing strongly for the past five years, this ETF, along with other software focused investments, have been under pressure due to fears artificial intelligence large language models (LLM) could significantly disrupt software-as-a-service (SaaS) businesses. While these concerns may be over done, it's safer to take profits and avoid the SaaS sector until more certainty emerges.

The post Expert names 1 ASX ETF to buy, 1 to hold, and 1 to sell appeared first on The Motley Fool Australia.

With thousands of companies to choose from, constant market noise, and the fear of losing money, getting started can feel overwhelming.

But building wealth through investing doesn't need to be complicated. A straightforward portfolio of broad ASX ETFs, quality ASX shares, and bonds can help investors build a resilient portfolio that grows over the long term.

Here's how I'd do it.

Broad market index funds

Step one is to start with broad market ASX ETFs. Exchange-traded funds are one of the easiest ways to gain instant diversification. Rather than trying to pick individual winners from day one, investors can spread their money across hundreds of companies.

A simple starting trio could include the BetaShares Australia 200 ETF (ASX: A200) for exposure to Australia's blue-chip shares. Then add the Vanguard MSCI International Shares ETF (ASX: VGS) for global diversification, and the iShares MSCI Emerging Markets ETF (ASX: IEM) for access to faster-growing developing economies.

Together, these ASX ETFs provide exposure to thousands of companies across Australia, the US, Europe, and emerging markets. That kind of diversification can reduce risk and smooth returns over time.

High-quality ASX stocks

Once the ASX ETFs and the foundations are in place, investors can begin layering in individual companies with strong competitive advantages and long-term growth potential.

The Australian market is home to several world-class businesses that have delivered impressive shareholder returns over decades.

Companies like CSL Ltd (ASX: CSL), REA Group Ltd (ASX: REA), and Xero Ltd (ASX: XRO) have built powerful market positions and continue expanding globally. Adding a handful of quality growth shares can give a portfolio an extra engine for capital appreciation.

Reliable dividend payers

The next step is to include reliable dividend payers. Income is another important component of long-term investing, especially for Australians who benefit from franking credits.

Well-established businesses such as Wesfarmers Ltd (ASX: WES) and Commonwealth Bank of Australia (ASX: CBA) have long histories of returning cash to shareholders through dividends. Reinvesting those dividends can significantly boost returns through the power of compounding.

Stability through bonds

Then it's time to add stability through bonds. Shares can be volatile, particularly during market downturns. Bonds can help stabilise a portfolio and reduce overall risk.

One easy way to gain exposure is through bond ASX ETFs such as the Vanguard Australian Fixed Interest Index ETF (ASX: VAF). These funds invest in government and high-quality corporate bonds, providing steady income and typically moving less dramatically than equities.

Having a portion of a portfolio in bonds can provide valuable balance during turbulent markets.

Invest consistently, think long term

Perhaps the most important step is simply sticking with the plan: invest consistently and think long term. Markets will rise and fall, sometimes sharply. But history shows that patient investors who regularly add to their portfolios tend to be rewarded over time.

Rather than trying to time the market, a steady investing habit — such as contributing monthly — can smooth out volatility and build wealth gradually.

In the end, successful investing doesn't require complex strategies or constant trading. A simple mix of diversified ASX ETFs, quality ASX shares, and stabilising bonds can form a powerful foundation for long-term wealth creation.

The post New to investing? Start with ASX ETFs and quality ASX stocks appeared first on The Motley Fool Australia.

According to Anna Wu, Senior Associate, Cross-Asset Investment Research, last year marked the strongest annual performance for emerging market equities since 2017.

She believes there are a number of drivers that could support this momentum throughout 2026. 

US dollar weakness

According to last week's report, assuming historical patterns hold, US dollar down cycles tend to persist once they begin. 

In 2026, factors such as high US government debt, easing monetary policy, and slowing US economic growth could contribute to further dollar weakness. 

Additionally, the US dollar's share of global foreign exchange reserves has declined to its lowest level since the mid-1990s, suggesting a broader move away from dollar dominance.

A weaker US dollar typically boosts the strength of emerging markets currencies, making exports cheaper, improving revenues and contributing to outperformance in this environment.

Emerging markets are positioned for growth tailwinds

The report from VanEck also reinforced that emerging economies are growing at almost twice the rate of developed markets. 

This is along with relatively stable inflation, which positions them as the world's primary growth drivers.

On a corporate level, street analysts are pricing in an upbeat earnings outlook for emerging markets companies, circa 20% EPS growth over the short and medium term. This highlights the upside potential for continued earnings growth. 

Valuations of emerging markets corporates also appear more attractive compared to their developed markets peers, at a 25% relative discount and at an absolute level closer to the historical average.

Key markets to watch

VanEck pointed to South Korea and Taiwan as markets that have performed well recently. 

It said investors have been chasing exposure to the AI 'picks and shovels' trade. 

These are the companies that supply the core building blocks of artificial intelligence rather than end-use applications. These markets are among the world's top providers of semiconductors.

It also highlighted India as the next potential growth driver in emerging markets. 

India's strong GDP and earnings growth, coupled with easing policy and strong corporate earnings growth, reinforces its potential to return as a key emerging market outperformer this year. 

Additionally, the country could be a beneficiary of the global AI infrastructure buildout, with US tech giants such as Google and Microsoft continuing to increase capital expenditure (CAPEX) commitments in the country.

This sentiment is also shared by Global X who also identified India as a structural growth market in a report last week.

How do investors gain exposure to emerging markets?

For broad exposure to emerging markets, there are several options including: 

• VanEck Msci Multifactor Emerging Markets Equity ETF (ASX: EMKT)
• iShares MSCI Emerging Markets ETF (ASX: IEM)
• Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE)

For geographic specific ASX ETFs for the aforementioned countries: 

• iShares Msci South Korea ETF (ASX: IKO)
• Betashares Capital Ltd – Asia Technology Tigers Etf (ASX: ASIA) – Includes roughly 63% combined weighting to South Korea and Taiwan
• VanEck India Growth Leaders ETF (ASX:GRIN)
• Betashares India Quality ETF (ASX: IIND)

The post The case for emerging markets ASX ETFs strengthens: Expert appeared first on The Motley Fool Australia.

From Big Tech dominance to relentless earnings growth, American markets have rewarded investors who stayed the course.

However, thoughtful investors know markets move in cycles. Leadership changes. And when one region stumbles or simply delivers more modest returns, others can quietly step into the spotlight.

That is where emerging markets may come back into focus and why this ASX ETF could be an opportunity if US stocks disappoint.

A strong but narrowing US run

There is no denying the strength of the US markets in recent years. In 2025, American shares delivered a better-than-average year, supported by resilient consumer demand, strong corporate balance sheets, and the obvious enthusiasm for artificial intelligence and productivity gains. ETF investors did well, with total returns, including dividends, of 17.88% for the 2025 calendar year.

However, that performance has also led to concentration risk. A small number of mega-cap companies now account for a significant share of index returns. Valuations were elevated by historical standards, and expectations for continued earnings growth are high in 2026.

If those expectations are merely met — rather than exceeded — future returns may be more subdued.

This does not mean US stocks are destined to fall. It simply raises a reasonable "what if" question for long-term investors building diversified portfolios.

Emerging markets quietly outperformed in 2025

While US stocks captured headlines, emerging markets delivered a quietly impressive year in 2025.

Across Asia, Latin America, and parts of Eastern Europe, equity markets benefited from easing inflation pressures, stabilising interest rates, and improving economic momentum. In several regions, earnings growth outpaced developed markets, helped by younger populations, rising consumption, and improving productivity.

Importantly, emerging markets entered 2025 from a position of relative valuation discount after years of underperformance. That combination — improving fundamentals and lower starting valuations — helped produce returns that rivalled, and in some cases exceeded, those of the US.

Why 2026 could keep the theme alive

Looking ahead to 2026, several structural factors continue to support the emerging markets case.

Many emerging economies now have healthier balance sheets than in past cycles, with higher foreign exchange reserves and more flexible currencies. Supply chains are also diversifying, with manufacturing, energy, and technology investment spreading beyond traditional developed markets.

At the same time, demographic trends remain favourable. Growing middle classes across Asia and parts of Latin America continue to drive demand for housing, healthcare, financial services, and technology.

None of this guarantees another strong year. But it does suggest emerging markets remain relevant for investors thinking beyond a single economic cycle.

One simple way to gain exposure

For Australian investors, the iShares MSCI Emerging Markets ETF (ASX: IEM) offers a straightforward way to access this theme.

Rather than betting on individual countries or companies, the ETF provides broad exposure across dozens of emerging economies and hundreds of businesses. That diversification matters in a region where political, regulatory, and economic conditions can change quickly.

For long-term investors, it can act as a complement to US-heavy portfolios, helping reduce reliance on a single market driving returns.

Foolish Takeaway

This is not a call to abandon US stocks. They remain home to some of the world's strongest businesses.

However, if US markets deliver more modest returns in the years ahead, emerging markets could matter a lot more than many investors expect. Having diversified exposure in place before leadership changes is often easier than reacting after the fact.

The post If US stocks disappoint, this overlooked ASX ETF could matter a lot more appeared first on The Motley Fool Australia.

A handful of well-established ASX ETFs now provide direct access to Europe, US tech leaders, Asia, and emerging markets. All in local dollars.

Together, these five funds span the world's key growth engines.

Vanguard FTSE Europe Shares ETF (ASX: VEQ)

Europe often flies under the radar, but this ASX ETF gives investors broad exposure to developed European markets, including the UK, Germany, France, and Switzerland. The ETF holds hundreds of large and mid-cap companies across financials, industrials, and healthcare.

Over the past 12 months, VEQ has delivered returns of around 25%, supported by stronger earnings and a rebound in cyclical sectors. Income also plays a role, with a dividend yield near 3%, making it one of the higher-yielding regional ETFs.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

BetaShares NASDAQ 100 ETF remains the go-to ASX ETF for exposure to global innovation. It tracks the NASDAQ-100 Index (NASDAQ: NDX), dominated by technology and growth leaders such as Apple, Microsoft, Nvidia, and Amazon.

After a strong run, NDQ has produced roughly 11% returns over the past year. Dividends are modest, with about 1%. But that's the trade-off for access to companies driving artificial intelligence, cloud computing, and digital consumption.

iShares MSCI Emerging Markets ETF (ASX: IEM)

For investors chasing higher long-term growth, this ASX ETF opens the door to emerging economies, including China, India, Taiwan, Brazil, and South Korea. The fund spans more than 1,000 companies across tech, banking, and consumer sectors.

Emerging markets staged a sharp recovery, with IEM up around 30% over the past 12 months. Income is secondary here, with a dividend yield of roughly 1.5%, but the growth potential remains the key attraction.

Vanguard FTSE Asia ex Japan ETF (ASX: VAE)

VAE focuses on Asia's fastest-growing economies while excluding Japan. China, India, Taiwan, and South Korea dominate the portfolio, giving investors exposure to manufacturing, semiconductors, and expanding consumer markets.

The ETF has returned about 20% over the past year, reflecting renewed momentum across Asian equities. Dividends sit around 1.7%, offering a modest income stream alongside growth.

Vanguard FTSE Emerging Markets ETF (ASX: VGE)

VGE provides another take on emerging markets, tracking a slightly different index with a tilt toward larger companies. It overlaps with IEM but often delivers a higher income profile.

Over the past 12 months, the ASX ETF has generated mid-teens returns while offering a dividend yield of close to 3%, making it appealing to investors seeking emerging-market exposure without sacrificing income.

The post 5 ASX ETFs for genuine global exposure appeared first on The Motley Fool Australia.

As will a slew of other investors holding iShares ASX exchange-traded funds (ETFs) comprised of international shares.

Here's how much you can expect to receive, according to the final distributions schedule.

If you've chosen to reinvest your dividends via the distribution reinvestment plan (DRP), we've also included those DRP unit prices below.

Here's how much you'll receive in dividends

Here is a summary of the dividend amounts that investors in these iShares ETFs will receive today.

The iShares S&P 500 ETF (ASX: IVV) will pay 20.14 cents per unit. The DRP price is $68.66 per unit.

The iShares Global 100 ETF (ASX: IOO) will pay 56.02 cents per unit. The DRP price is $187.62.

The iShares Asia 50 ETF (ASX: IAA) will pay 102.25 cents per unit. The DRP price is $142.61.

The iShares MSCI Emerging Markets ETF (ASX: IEM) will pay 60.22 cents per unit. The DRP price is $81.78.

The iShares Europe ETF (ASX: IEU) will pay 111.47 cents per unit. The DRP price is $101.12.

The iShares MSCI Japan ETF (ASX: IJP) will pay 463.45 cents per unit. The DRP price is $112.01.

The iShares S&P Mid-Cap ETF (ASX: IJH) will pay 20.52 cents per unit. The DRP price is $50.12.

The iShares S&P Small-Cap ETF (ASX: IJR) will pay 72.41 cents per unit. The DRP price is $183.87.

The iShares Global Consumer Staples ETF (ASX: IXI) will pay 70.97 cents per unit. The DRP price is $96.03.

The iShares Global Healthcare ETF (ASX: IXJ) will pay 72.35 cents per unit. The DRP price is $144.79.

The iShares S&P China Large-Cap ETF (ASX: IZZ) will pay 47.14 cents per unit. The DRP price is $56.91.

More dividends to come

If you hold iShares ETFs comprised of ASX shares, you will receive your dividend payments on 19 January.

Blackrock finalised the amounts to be paid this week.

Some examples of these ETFS include the iShares Core S&P/ASX 200 ETF (ASX: IOZ), which will pay 18.37 cents per unit.

iShares S&P/ASX 20 ETF (ASX: ILC) will pay 19.91 cents per unit.

iShares S&P/ASX Small Ordinaries ETF (ASX: ISO) will pay 4.78 cents per unit.

iShares Yield Plus ETF (ASX: IYLD) will pay investors 38.01 cents per unit.

iShares 15+ Year Australian Government Bond ETF (ASX: ALTB) will pay 64.48 cents per unit.

iShares S&P/ASX Dividend Opportunities ESG Screened ETF (ASX: IHD) will pay 14.52 cents per unit.

The post Own IVV or IOO ETFs? It's dividend payday for you! appeared first on The Motley Fool Australia.

The ETFs, which all hold international shares, include iShares S&P 500 ETF (ASX: IVV) and iShares Global 100 ETF (ASX: IOO).

According to the final distributions schedule, BlackRock will pay ASX ETF investors next Friday, 9 January.

BlackRock has also announced the unit price for each ETF's distribution reinvestment plan (DRP).

Here are the details below.

Dividend amounts for iShares ASX ETF investors

Here is a summary of the dividend amounts that investors in these iShares ETFs will receive on 9 January.

The iShares S&P 500 ETF (ASX: IVV) will pay 20.139782 cents per unit. The DRP price is $68.66.

The iShares Global 100 ETF (ASX: IOO) will pay 56.022206 cents per unit. The DRP price is $187.62.

The iShares Asia 50 ETF (ASX: IAA) will pay 102.246930 cents per unit. The DRP price is $142.61.

The iShares MSCI Emerging Markets ETF (ASX: IEM) will pay 60.218221 cents per unit. The DRP price is $81.78.

The iShares Europe ETF (ASX: IEU) will pay 111.471175 cents per unit. The DRP price is $101.12.

The iShares MSCI Japan ETF (ASX: IJP) will pay 463.446530 cents per unit. The DRP price is $112.01.

The iShares S&P Mid-Cap ETF (ASX: IJH) will pay 20.521395 cents per unit. The DRP price is $50.12.

The iShares S&P Small-Cap ETF (ASX: IJR) will pay 72.410620 cents per unit. The DRP price is $183.87.

The iShares Global Consumer Staples ETF (ASX: IXI) will pay 70.973956 cents per unit. The DRP price is $96.03.

The iShares Global Healthcare ETF (ASX: IXJ) will pay 72.347038 cents per unit. The DRP price is $144.79.

The iShares S&P China Large-Cap ETF (ASX: IZZ) will pay 47.139823 cents per unit. The DRP price is $56.91.

More dividend announcements to come

BlackRock will announce the estimated dividends for a second group of ETFs, which all hold ASX shares, on 6 January.

Those ETFs will include the iShares Core S&P/ASX 200 ETF (ASX: IOZ) and the iShares S&P/ASX 20 ETF (ASX: ILC).

The ex-dividend date will be 7 January.

BlackRock will announce the finalised distribution amounts on 8 January and send payments to investors on 19 January.

The post Own IVV or IOO ETFs? Here's your next dividend appeared first on The Motley Fool Australia.

With only a day left of trading this year, the S&P/ASX 200 Index (ASX: XJO) has risen roughly 6.4% this year. 

History tells us that's slightly below average. 

So if your portfolio rose more than that this year, well done! 

What you might not realise is that Australia's benchmark index has been outpaced over the last couple of years by Emerging Markets and Developing Economies (EMDE).

What are developing economies?

The World Economic Outlook divides the world into two major groups: advanced economies and emerging and developing economies.

Emerging Market and Developing Economies (EMDEs) are countries that are in the process of economic development and have lower income levels and less mature financial and institutional systems compared to advanced economies.

There are more than 150 countries that are classified in this group. 

It's important to note this classification is not based on strict criteria, economic or otherwise. 

However in general terms, these are economies that:

• Have lower per-capita income than advanced economies
• Are undergoing structural transformation (e.g., industrialisation, urbanisation)
• Have developing financial markets and institutions
• Often experience faster economic growth but higher volatility

How have they performed?

These markets are growing both economically, and in terms of global presence. 

In fact, data shows emerging markets and developing economies (EMDEs) now account for 45% of global GDP.

This is up from 25% in 2000 according to the World Bank Group. 

There are two ASX ETFs that have performed well over the past two years on the back of this growth. 

Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE)

This ASX ETF offers exposure to companies listed on emerging markets, allowing investors to participate in the long-term growth potential typical of these economies.

At the time of writing, it is made up of more than 6,000 holdings, with its largest geographical exposure being towards: 

• China (32.6%)
• Taiwan (22.0%)
• India (19.8%)

Importantly, it has performed well over the last 3 years. 

In 2025, the fund rose 14.54%, far outpacing the ASX 200. 

Over the last 3 years, it has provided returns of approximately 13.5% per annum. 

iShares International Equity ETFs – iShares MSCI Emerging Markets ETF (ASX: IEM)

This ASX ETF offers another option to gain exposure to emerging markets. It focuses on 800 large and mid-sized companies. 

It has a similar geographic profile, with large exposure to: 

• China (27.91%)
• Taiwan (20.26%)
• India (15.33%)
• Korea, South (13.01%)

In 2025, this ASX ETF has risen more than 22%. 

Over the last three years it has provided per annum returns of 14.23%. 

Foolish takeaway 

There is absolutely ample opportunity in ASX stocks. However diversifying into international markets can also be a worthwhile strategy for investors. 

It is important to note that emerging markets can also face significant volatility due to factors like political instability, currency fluctuations, weaker regulation, and lower liquidity compared with developed markets.

The post Did these two ASX ETFs targeting developing economies beat your portfolio in 2025? appeared first on The Motley Fool Australia.

I also pointed out three domestically focussed ASX ETFs. These have all raced ahead of the S&P/ASX 200 Index (ASX: XJO) in 2025. 

This proves while it's true your ETF won't triple in a day, ETFs can still bring strong returns that far outpace indexes like the ASX 200. 

Looking overseas, there are internationally focussed ETFs that have risen by even more. 

Let's look at three examples. 

BetaShares Global Gold Miners ETF – Currency Hedged (ASX: MNRS)

MNRS aims to track the performance of an index (before fees and expenses) that comprises the largest global gold mining companies. It actively excludes Australian companies.

The fund offers defensive benefits, as gold miners' fortunes are closely tied to the price of gold. This has traditionally tended to perform well during times of market volatility and uncertainty.

Unsurprisingly, the fund has skyrocketed this year along with the global gold price.

It has risen 100.48% year to date, reinforcing the upside that still exists with targeted ASX ETFs. 

Its largest exposure geographically is to Canada (47.7%), USA (14.5%) and South Africa (10.8%). 

At the time of writing it is made up of 46 holdings. No single holding represents more than 8.4% of the fund. 

iShares MSCI Emerging Markets ETF (ASX: IEM)

This globally focussed fund provides exposure to large and mid-sized companies with representation across 24 Emerging Markets (EM) countries.  

This includes more than 1,000 underlying holdings from countries such as China, Taiwan, India, South Korea, South Africa, Brazil and more. 

The fund has risen by an impressive 17.60% in 2025 so far on the back of strong tailwinds for semiconductor and technology companies in Asia. 

It offers exposure to sectors such as information technology (25%), financials (22.49%) and consumer discretionary (12.84%). 

Global X Semiconductor ETF (ASX: SEMI)

The Global X Semiconductor ETF seeks to invest in companies that stand to potentially benefit from the broader adoption of tech-enabled devices that require semiconductors. This includes the development and manufacturing of semiconductors.

The fund is made up of 30 holdings, with the largest geographical allocation being to the USA (64.8%) followed by Taiwan (13.0%). 

It has risen almost 12% year to date. 

The post 3 international ASX ETFs racing ahead of the ASX 200 this year appeared first on The Motley Fool Australia.

They offer high earners broad market exposure and diversification without the hassle of managing a range of individual stocks and their individual fees. Essentially, ETF investors are able to buy a bunch of shares via a single trade and for one brokerage fee.

Not only that, but another upside is that many dividend-paying ASX ETFs pass on franking credits to investors. That means our highest-earning professionals, who face higher marginal tax rates, can use franking credits to reduce their tax liability. 

So, which ASX ETFs are Australia's highest-earning professionals investing in?

The Financial Review, using Stockpot data, has collated a list of the most popular ASX ETFs. Here's what it revealed.

How top earners invest

The analysis takes a snapshot of six of Australia's top-earning professions – mining, gas and oil professionals; finance professionals; chief executives and general managers; doctors and medical professionals; legal, social and welfare professionals; and the average Stockpot user.

The data shows that Australians who work in the mining, gas and oil sector have the highest investment risk appetites by occupation. Stockpot found that 97% of those professionals are invested in one of its 'aggressive' portfolios. These portfolios include growth and high-growth stocks.

This is compared to 85% of finance professionals who invest in the same portfolio, 80% of chief executives and general managers, 72% of doctors and medical professionals, and 65% of legal, social and welfare professionals.

For context, 67% of average Stockpot users also invest in the portfolio.

Source: Financial Review/Stockpot

The most popular ASX ETFs in Stockpot's 'aggressive' portfolio

Stockpot's aggressive-growth portfolio is made up of 78% growth assets, such as shares. It also comprises 22% of defensive assets such as gold, government and corporate bonds.

That portfolio, which is Stockspot's most popular, includes:

• Vanguard's Australian Shares Index ETF (ASX: VAS)
• iShares International Equity ETFs – iShares Global 100 ETF (ASX: IOO)
• MSCI emerging markets and core composite bonds such as Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE) and iShares MSCI Emerging Markets ETF (ASX: IEM)
• Etfs Metal Securities Australia – Etfs Physical Gold (ASX: GOLD)

Stockpot's growth portfolio has similar ETFs, but a higher proportion (30%) in defensive assets.

Most traded ASX ETFs of FY25

Some of these ETFs also made the list of the most-traded ASX ETFs by Stake customers in FY25, highlighting their popularity across all types of investors.

Online trading platform Stake noted that for the financial year ending 30 June, the Vanguard Australian Shares Index ETF was the second most popular among all its customers, with an 81% buy to 19% sell ratio.

The Global X Physical Gold ETF also made the list with an 86% buy and 14% sell ratio.

The post Australia's highest earners are betting big on these ASX ETFs appeared first on The Motley Fool Australia.

Let's take a look at how much you'll receive.

If you chose to participate in the distribution reinvestment plan (DRP) for any of these iShares ETFs, we've provided the DRP prices, too.

It's dividend day for IVV ETF investors and others

Here is a summary of the dividend amounts that people invested in these iShares ETFs will receive today.

The iShares S&P 500 ETF (ASX: IVV) will pay 17.371762 cents per unit. The DRP price is 62.963308 cents.

The iShares Global 100 ETF (ASX: IOO) will pay 144.788408 cents per unit. The DRP price is 162.474210 cents.

The iShares Core S&P/ASX 200 ETF (ASX: IOZ) will pay 28.004199 cents per unit. The DRP price is 34.308186 cents.

The iShares Asia 50 ETF (ASX: IAA) will pay 317.017910 cents per unit. The DRP price is 120.104281 cents.

The iShares Core Composite Bond ETF (ASX: IAF) will pay 71.863797 cents per unit. The DRP price is 103.551430 cents.

The iShares MSCI Emerging Markets ETF (ASX: IEM) will pay 73.321424 cents per unit. The DRP price is 73.626987 cents.

The iShares Europe ETF (ASX: IEU) will pay 201.329885 cents per unit. The DRP price is 95.752689 cents.

The iShares MSCI South Korea ETF (ASX: IKO) will pay 142.553569 cents per unit. The DRP price is 111.875719 cents.

The iShares S&P/ASX 20 ETF (ASX: ILC) will pay 35.765356 cents per unit. The DRP price is 32.314116 cents.

But wait, there's more…

The iShares Government Inflation ETF (ASX: ILB) will pay 45.856295 cents per unit. The DRP price is 126.033139 cents.

The iShares MSCI Japan ETF (ASX: IJP) will pay 99.526157 cents per unit. The DRP price is 114.127567 cents.

The iShares S&P Mid-Cap ETF (ASX: IJH) will pay 15.907814 cents per unit. The DRP price is 47.288231 cents.

The iShares S&P Small-Cap ETF (ASX: IJR) will pay 56.095190 cents per unit. The DRP price is 167.136029 cents.

The iShares S&P/ASX Small Ordinaries ETF (ASX: ISO) will pay 5.747119 cents per unit. The DRP price is 4.931342 cents.

The iShares Global Consumer Staples ETF (ASX: IXI) will pay 103.428384 cents per unit. The DRP price is 98.952519 cents.

The iShares Global Healthcare ETF (ASX: IXJ) will pay 135.427098 cents per unit. The DRP price is 130.135897 cents.

How did ASX IVV perform in FY25?

The IVV ETF seeks to track the performance of the S&P 500 Index (SP: .INX) before fees.

US shares outperformed ASX shares again in FY25, and IVV ETF investors reaped the benefits.

The IVV ETF increased by 15.02% and delivered total returns (including dividends) of 15.13%, according to BlackRock.

Data from S&P Global shows the S&P 500 rose by 13.63% to close at 6,204.95 points on 30 June.

If we add dividends, the S&P 500's total gross return for the year was 15.16%.

The difference between the growth rate of the S&P 500 and the IVV ETF represents the impact of the currency exchange.

In Australian dollar terms, S&P Global data shows the S&P 500 rose by 15.8%, with total gross returns of 17.36%.

The post Own IVV ETF or other iShares ASX ETFs? It's dividend payday for you! appeared first on The Motley Fool Australia.

According to the final distributions schedule, iShares will pay investors next Friday, 11 July.

A distribution reinvestment plan (DRP) is available for all iShares ETFs.

iShares has also announced the DRP prices for this next round of distributions. We have included those amounts below.

It's payday for IVV ETF investors and others

Here is a summary of the dividend amounts that people invested in this selection of iShares ETFs will receive on 11 July.

The iShares S&P 500 ETF (ASX: IVV) will pay 17.371762 cents per unit. The DRP price is 62.963308 cents.

The iShares Global 100 ETF (ASX: IOO) will pay 144.788408 cents per unit. The DRP price is 162.474210 cents.

The iShares Core S&P/ASX 200 ETF (ASX: IOZ) will pay 28.004199 cents per unit. The DRP price is 34.308186 cents.

The iShares Asia 50 ETF (ASX: IAA) will pay 317.017910 cents per unit. The DRP price is 120.104281 cents.

The iShares Core Composite Bond ETF (ASX: IAF) will pay 71.863797 cents per unit. The DRP price is 103.551430 cents.

The iShares MSCI Emerging Markets ETF (ASX: IEM) will pay 73.321424 cents per unit. The DRP price is 73.626987 cents.

The iShares Europe ETF (ASX: IEU) will pay 201.329885 cents per unit. The DRP price is 95.752689 cents.

The iShares MSCI South Korea ETF (ASX: IKO) will pay 142.553569 cents per unit. The DRP price is 111.875719 cents.

The iShares S&P/ASX 20 ETF (ASX: ILC) will pay 35.765356 cents per unit. The DRP price is 32.314116 cents.

Here are some more ASX ETFs…

The iShares Government Inflation ETF (ASX: ILB) will pay 45.856295 cents per unit. The DRP price is 126.033139 cents.

The iShares MSCI Japan ETF (ASX: IJP) will pay 99.526157 cents per unit. The DRP price is 114.127567 cents.

The iShares S&P Mid-Cap ETF (ASX: IJH) will pay 15.907814 cents per unit. The DRP price is 47.288231 cents.

The iShares S&P Small-Cap ETF (ASX: IJR) will pay 56.095190 cents per unit. The DRP price is 167.136029 cents.

The iShares S&P/ASX Small Ordinaries ETF (ASX: ISO) will pay 5.747119 cents per unit. The DRP price is 4.931342 cents.

The iShares Global Consumer Staples ETF (ASX: IXI) will pay 103.428384 cents per unit. The DRP price is 98.952519 cents.

The iShares Global Healthcare ETF (ASX: IXJ) will pay 135.427098 cents per unit. The DRP price is 130.135897 cents.

The post Own IVV ETF or other iShares ASX ETFs? Next dividends and DRP prices revealed… appeared first on The Motley Fool Australia.

This is up from 25% in 2000. According to the World Bank Group, collective growth from the three largest emerging markets — China, India and Brazil — has driven this increase.

The three have played a major role in expanding the global footprint and influence of EMDEs: China, as the largest EMDE and a key driver of global growth in the past quarter century; India, as the fastest-growing large economy in recent years; and Brazil, as the leading exporter of agricultural products.

The report predicts these economies will continue to play an important role globally. However, the rate of growth is predicted to slow slightly.

Trends in productivity, investment, and labor supply, among the fundamental drivers of growth, suggest that EMDEs' potential growth will slow to about 4 percent in the 2020s, on average, compared to more than 5 percent in the 2010s.

For Australian investors looking to gain exposure to these markets through ASX exchange-traded funds (ETFs), here are two options to consider. 

Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE)

This ASX ETF seeks to track the return of the FTSE Emerging Markets All Cap China A Inclusion Index (with net dividends reinvested) in Australian dollars before taking into account fees, expenses and tax.

The index essentially tracks the performance of large, mid and small-cap stocks in emerging markets.

At the time of writing, the VGE ETF has more than 5,800 holdings. Its largest exposure is China (29.0% of the ETF's stocks), India (23.6%) and Taiwan (20.6%). It also has exposure to Brazil (4.3%), Saudi Arabia (4.1%) and South Africa (3.4%). 

It has risen 18.43% in the last 12 months and has a management fee of 0.48% p.a. 

The fund has significant exposure to the information technology and financial sectors. 

iShares International Equity ETFs – iShares MSCI Emerging Markets ETF (ASX: IEM)

This ASX ETF offers exposure to more than 800 large and mid-sized companies in emerging markets. These include China (27.66%), Taiwan (19.62%), India (19.34%), South Korea (8.97%), Saudi Arabia (4.13%) Brazil (4.03%).

It also has significant exposure to the information technology and financial sectors. 

The fund has grown 18.47% over the last 12 months and has a management fee of 0.69% p.a. 

These two ASX ETFs track very similar markets. They share eight out of the ten largest holdings, which is one reason their performance has been similar.

One major difference is the number of total holdings in the funds, with VGE holding roughly 5,000 more stocks.

Trump Tariffs

Back in December 2024, then-US president-elect Donald Trump threatened to place tariffs on some of these developing economies. 

According to the BBC, Trump threatened to impose 100% tariffs on a group of nine nations — including China, Brazil and India — if they were to create a rival currency to the US dollar.

No mention was made of this tariff during his inauguration. However, it's worth noting for anyone considering these markets as an investor. 

The S&P/ASX 200 Index (ASX: XJO) had a rollercoaster first day yesterday under Trump's new administration. 

This could be a sign of what's to come in the short term as the market waits to see what pre-inauguration promises are acted upon.

The post Is now a good time to invest in developing economies? appeared first on The Motley Fool Australia.

ETFs are baskets of stocks that provide great diversification in a single trade for one brokerage fee.

Let's take a look at four ASX ETFs that hit new 52-week high prices today.

4 ASX ETFs that smashed new 52-week highs on Friday

Global X Physical Gold (ASX: GOLD)

The gold price continued to trade around record highs this week, which helped this gold ETF reach a new 52-week high of $35.96 on Friday.

Analysis from Trading Economics explained that gold was benefiting from its safe haven status amid heightened tensions in the Middle East this week.

The Global X Physical Gold ETF seeks to mirror the performance of the Australian dollar gold price.

Global X says the GOLD ETF is the largest and most liquid gold-backed exchange-traded product on the ASX, with the lowest bid/ask spread in the market.

This ASX ETF has delivered total returns of 10.43% per year over 10 years and 16.4% per year over three years.

The management expense ratio (MER) is 0.4%.

iShares MSCI Emerging Markets AUD ETF (ASX: IEM)

This ASX ETF hit a new 52-week high of $68.72 today.

The iShares MSCI Emerging Markets AUD ETF seeks to track the returns of the MSCI Emerging Markets Index before fees.

The index comprises more than 1,200 large-cap and mid-cap shares in developing markets, such as China (29% of the ETF's stocks), India (19.1%), Taiwan (17.28%), South Korea (10.04%), and Brazil (4.78%).

The IEM ETF's biggest holding is Taiwan Semiconductor Manufacturing Co Ltd (TPE: 2330), with an 8.9% weighting.

This ASX ETF's total returns are 2.06% per year over 10 years and (5.99%) per year over three years.

The MER is 0.7%.

Vanguard FTSE Emerging Markets Shares AUD ETF (ASX: VGE)

This ASX ETF ran to a new 52-week peak of $79.36 today.

The Vanguard FTSE Emerging Markets Shares AUD ETF aims to mirror the returns of the FTSE Emerging Markets All Cap China A Inclusion Index (with net dividends reinvested) in Australian dollars before fees.

This ETF provides investors with exposure to 5,934 shares from emerging markets such as China (25.7% of stocks), India (24.9%), Taiwan (21%), Brazil (5.2%), and Saudi Arabia (4.3%).

Its biggest holding is also Taiwan Semiconductor shares with an 8.3% weighting.

This ASX ETF has delivered total returns of just over 5% per year on a 10-year basis and a small negative return of less than (0.5%) per year on a three-year basis.

The MER is 0.48%.

ishares Asia 50 ETF (ASX: IAA)

This ASX ETF lifted to a new 52-week high of $110.75 on Friday.

The ishares Asia 50 ETF seeks to track the returns of the S&P Asia 50 Index, which represents 50 of the largest listed companies in Asia.

Its biggest holding is also Taiwan Semiconductor shares with a 22.58% weighting.

This ETF's total returns are 5.51% per year over 10 years and (7.86%) per year over three years.

The MER is 0.5%.

The post 4 ASX ETFs that hit new 52-week highs today appeared first on The Motley Fool Australia.

They are artificial intelligence (AI), uranium shares, and emerging markets.

In an article published on Friday, Marc Jocum from Global X said thematic ETFs provided a great way to invest in megatrends with less risk.

He commented:

Predicting what will happen in the short-term is challenging given the constantly evolving market environment.

However, if investors extend their time horizons to multiple years, they can be prepared for a future marked by long-term structural shifts known as "megatrends". 

Jocum said megatrend investing was all about long-term thematics. He said the idea was to invest in powerful, potentially transformative global trends that are set to play out over years and decades.

ASX ETFs and the 3 investment megatrends of 2024

Artificial intelligence

Jocum said ChatGPT was a catalyst for investor interest in AI in 2023, but it had only scratched the surface.

He commented:

AI is at a crucial juncture in its adoption cycle … Global X believes sales growth across the AI category can potentially exceed 50% in the year ahead, well above the 5% sales growth expected in the broader share market.

The addressable market for AI services, including the full ecosystem of hardware, software, and data, is set to expand in the coming years, estimated to grow by double digits to $1.6 trillion by 2028. 

Jocum said identifying individual stocks set to benefit from the AI trend was difficult. He said some companies may not be able to leverage AI capabilities without undermining traditional revenue streams. 

For diverse exposure to this megatrend, investors may consider exploring exchange traded funds (ETFs) that track a basket of artificial intelligence benefactors, semiconductor companies or technology stalwarts.

ASX ETFs offering exposure to the AI megatrend include:

Uranium and ASX ETFs

Jocum explained that nuclear energy had become a key element in the world's green energy transition.

He said:

At the 2023 United Nations Climate Change Conference (known as COP28), a declaration was signed among 22 countries to triple nuclear energy capacity globally by 2050.

It also invited international financial institutions (such as the World Bank) to encourage the inclusion of nuclear energy in lending policies.

The uranium price has skyrocketed by 112% over the past 12 months to US$106 per pound on Friday.

Many countries are building nuclear reactors to supplement their domestic energy supply.

Miners are firing up uranium assets that were previously on care and maintenance for years.

Jocum said:

An important distinguishment between a 'fad' and a long-term structural theme is whether there are strong governmental or institutional initiatives. 

Considering climate change is at the front of minds for global nations, combined with favourable momentum in public and private markets, the uranium industry is positioned to grow …

He said Australia has lots of uranium but only delivered 8% of global production. This is because mining is banned in most states.

He commented:

Investors wanting to get exposure to the uranium decarbonisation theme should expand their investment universe to consider global players …

As uranium lacks a liquid spot market like gold and copper, investors could consider investing in an ETF tracking a broad range of global companies involved in uranium mining and the production of nuclear components.

ETFs offering exposure to the uranium megatrend include:

Emerging markets

Jocum said China's economic weakening in 2023 had led to a changing of the guard in emerging markets:

… investors are looking past China, with eyes locked on India as the bright star of emerging markets.

In Global X's opinion, India has emerged as one of the better structural opportunities backed by significant economic, social and political drivers. This changing of the guard in the emerging market leader is a monumental shift in the investment landscape. 

Jocum said that 10 years ago, India accounted for just over 5% of the emerging markets sector. That has now tripled to 16%. By contrast, China's market share has contracted by a third since the pandemic.

Jocum said global companies like Apple Inc (NASDAQ: AAPL) were diversifying their supply chains from China to India. This could lead to further infrastructure development and economic growth.

Traditionally, Australian investors looking for exposure to India had to invest through instruments like mutual funds as many brokers cannot access Indian equities.

However, with the average Indian mutual fund charging 1.2% in fees and the fact that most active funds underperform the market over the long-term, investors can look to pay a fraction of the cost and get exposure to an Indian share market index like the NIFTY 50.

ETFs offering exposure to the emerging markets megatrend include:

The post 3 investment megatrends of 2024 and the ASX ETFs offering a way in appeared first on The Motley Fool Australia.

But there are so many ETFs out there these days, covering almost anything one can think of, that it can be difficult to know which ones are the best to have one's money in.

Between index funds, commodity funds and sector-specific ETFs, it can quickly become overwhelming to sift through the cornucopia of ETFs available on the ASX.

So today, let's look at just five ETFs that one exchange-traded fund expert reckons are all you need to successfully invest.

Expert names the only five ASX ETFs you need

When it comes to ASX ETFs, one of the leading experts on the matter is Chris Brycki. Brycki is the founder and CEO of investment company Stockspot. Stockspot builds an investment portfolio for its clients using only ETFs. He recently sat down with Livewire for an interview.

Brycki starts off by naming the five ETFs that he likes to use to build his investors' portfolios.

The first is none other than the Vanguard Australian Shares Index ETF (ASX: VAS). VAS is the most popular ETF on the ASX by funds under management. It is also the only ASX index ETF that tracks the S&P/ASX 300 Index (ASX: XKO), rather than the more popular S&P/ASX 200 Index (ASX: XJO).

This is one of the reasons why Brycki likes this ETF for exposure to Australian shares, also pointing to its low fees, greater liquidity and long-term returns.

But when it comes to international shares, Brycki is happier to go against popular opinion. Currently, the two most popular ASX-listed international shares ETFs are the iShares S&P 500 ETF (ASX: IVV), and the Vanguard MSCI International Shares Index ETF (ASX: VGS). But neither of these funds are Brycki's preferred avenue to international shares.

Instead, Stockspot favours the iShares Global 100 ETF (ASX: IOO). This fund holds only 100 of the world's largest companies. These hail from the US, as well as Europe, Japan, Korea and the United Kingdom. Stockspot uses IOO for its liquidity and longer-listed track record. Not to mention its habit of outperforming its rivals.

Diversifying with exchange-traded funds…

For access to emerging markets, the iShares MSCI Emerging Markets ETF (ASX: IEM) is Stockspot's fund of choice. This ETF holds more than 800 companies from emerging countries like China, India and Taiwan. IEM is also preferred by Stockspot for both its liquidity and long pattern of generating returns. That's despite some of its rivals offering lower fees.

Turning to assets outside the sharemarket now, and we have Brycki's preference for accessing fixed interest bond investments. The iShares Core Composite Bond ETF (ASX: IAF) holds bonds issued by Australian governments. As well as some investment-grade corporate bonds.

Stockspot chooses this bond for fixed-interest asset exposure for "its size, liquidity, track record, high credit quality and relatively short duration". Not to mention its lower fees compared to its rivals.

Stockspot's final ETF covers a different asset class again. And this time, it's gold. For this precious metal, Brycki's choice is the ETFS Physical Gold ETF (ASX: GOLD).

This ETF is backed by physical gold bullion, stored in a vault in London. Stockspot also likes the fact that it is unhedged. This means investors can benefit from a falling Australian dollar. Stockspot also appreciates GOLD's size, as well as the fact that it has the tightest spreads in buying and selling units.

The post How to successfully invest using only ASX ETFs: expert appeared first on The Motley Fool Australia.

But when it comes to overseas markets, the picture is a little cloudier. These days many brokerage services offer full access to the US markets. This makes sense, seeing as the 'land of the free' is also home to the largest financial market in the world, as well as top-tier companies like Apple Inc (NASDAQ: AAPL) and Amazon.com Inc (NASDAQ: AMZ).

But what of other markets? If you're lucky you can find a broker that offers access to some other major share markets. These might be the European markets, or else the stock exchanges of London, Tokyo or Hong Kong, for example. But if you want to invest in the world's emerging markets, the outlook is even cloudier again. Good luck trying to find an Australian broker that will offer share trading on the Argentinean stock exchange, for example. Or that of Russia, Mexico or Thailand. If they do, it will probably come with a very expensive price tag.

So how do you invest in emerging markets on the ASX?

So how does one simply and cheaply invest in emerging markets? These markets can be useful from a diversification standpoint, as well as offering access to some of the highest-growth economies of the world. Well, an exchange-traded fund (ETF) could be an option worth examining. The ASX is home to a couple of ETFs that cover emerging markets. There's the Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE). But the most popular is the iShares MSCI Emerging Markets ETF (ASX: IEM).

This ETF from iShares invests in more than 5,200 companies from various emerging economies around the globe. Its most prominent countries are China and Taiwan, housing 31.89% and 16.14% of the total fund's holdings respectively. However, IEM also includes companies hailing from India, South Korea, Brazil, Russia, Saudi Arabia, South Africa, Mexico and Thailand, amongst others.

All of this can be available through a single ETF and ticker code. IEM isn't the cheapest ETF on the market, but its annual management fee of 0.68% still arguably looks competitive against some managed funds' fees. So if you're after some emerging markets in your portfolio for diversification or a long-term growth play, ETFs might be the easiest (and even cheapest) path to explore.

The post How to invest in emerging markets on the ASX appeared first on The Motley Fool Australia.

Until now, ASX exchange-traded funds (ETFs) that track the Australian share market follow a very narrow range of ASX-based indexes. These mostly revolve around the flagship S&P/ASX 200 Index (ASX: XJO). However, there are other less-used indexes, such as the S&P/ASX 300 Index (ASX: XKO).

But as you might have noticed, most of these 'ASX-only' indexes are run by S&P Global Inc (NYSE: SPGI).

But today, we have news that another global index provider in MSCI is set to join the party.

Who's this?

MSCI (formerly Morgan Stanley Captial International) is a New York-based company known for its globe-spanning indexes. Although MSCI currently does not offer ETFs, ASX investors might be familiar with some ASX ETFs that already track MSCI indexes around the world.

These include the Vanguard MSCI Index International Shares ETF (ASX: VGS), the iShares MSCI South Korea ETF (ASX: IKO) and the iShares MSCI Emerging Markets ETF (ASX: IEM).

But in Australia, MSCI is moving from the backroom to the open in offering its own indexes that exclusively track ASX shares. The Australian Financial Review (AFR) reported today that MSCI is launching more than 50 Australian indexes this week. According to the report, MSCI has been "quietly" working with super funds, ETF providers and fund managers over the last few months on the new offerings.

The new indexes will be grouped into four areas: market capitalisation, factor, thematic, and ESG (environmental, social and governance).

The market cap indexes will group ASX shares based on size (eg large-cap, small-cap), while the factor indexes will revolve around labels like value, quality or momentum.

Thematic indexes will cover specific sectors or areas of interest, such as real estate or resources. The ESG offerings will include a universal ESG index and others based on factors like climate change and excluding fossil fuels.

ASX is the pick of the bunch

The AFR reports that Australia is one of only 2 markets that MSCI has chosen to build a portfolio of domestic indexes. That's due to 2 reasons.

Firstly, the large capital base that our unique superannuation system provides. With at least 9.5% of the country's pre-tax income going into the superannuation system every year, there is a wide capital base to work off and a long runway for growth. Clearly, MSCI has noticed and is banking on super funds offering investments that may track MSCI's indexes in the future.

Secondly, the shift towards ESG investing in Australia. That AFR report states there is "a hunger for index-based strategies that can better replicate their investment philosophies". That spills over into which super products and investments Australians might choose to direct their super into.

MSCI clearly sees an opportunity here as the report states that the company wants to "work with each fund to create custom indexes that can reflect the fund's ESG view".

The post Countdown to launch of new ASX indexes for ESG boom appeared first on The Motley Fool Australia.

Now the ASX 200 is seemingly pushing to greater heights this week. So I'm sure many an investor is wondering 'where to next?' for ASX shares, given we're barrelling towards a new year.

Where are fundies investing for 2021?

Well, reporting in the Australian Financial Review (AFR) today sheds some light on this question. The AFR is covering the Bank of America's monthly survey of more than 200 global fund managers (with a collective $784 billion in assets under management) for their views on how to position a share portfolio going forward. And the view is reportedly almost unanimous: "It's time to go long or go home".

The AFR reports that the fundies aren't too concerned over the recent 'second/third waves' of coronavirus cases around the world. Although they do note it's a risk. Instead, managers have "pulled forward their expectations for a credible vaccine to be announced from next February to next January. And are piling into trades that will benefit from the reopening of economies". Bank of America says the "US election outcome and the announcement of promising results from vaccine trials" are behind the "switch in the psyche of investors".

And that is resulting in cash positions being whittled to "15-year lows". Where is this cash going? According to the report, there are 3 areas which are overwhelmingly popular amongst the fund managers: emerging markets, oil, and the S&P 500 Index (INDEXSP: .INX).

A triumvirate of opportunity?

Emerging markets refer to the economies (and stock exchanges) of countries outside the 'advanced economies' of the world. Specifically such as the United States, United Kingdom, Europe, Japan, Canada and Australia. As an example, a typical exchange-traded fund (ETF) covering emerging markets is the iShares MSCI Emerging Markets ETF (ASX: IEM). This ETF is weighted 40.56% to China, 12.67% to Taiwan, 12.52% to South Korea, 8% to India and 4.88% to Brazil.

Oil is an interesting choice as well. Oil prices and companies have been decimated in 2020 as a result of the pandemic. Many are sitting at multi-year share price lows. Take Woodside Petroleum Ltd (ASX: WPL). It's currently trading at $21.77 after falling as low as $14.93 earlier in the year. Before 2020, you'd have to go back to 2005 to find similar pricing. It's a similar story with global oil giants like Exxon Mobil Corporation (NYSE: XOM).

Finally, the S&P 500 is the flagship index for US shares. Thus, a bet on the S&P 500 could be construed as a bet on the US shares, especially the larger companies like Amazon.com Inc (NASDAQ: AMZN), Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) and Apple Inc (NASDAQ: AAPL).

The post Global fund managers are bullish on these 3 things appeared first on The Motley Fool Australia.

Here we look at 4 investment trends that could play out in 2020.

European resurgence

Europe has been overlooked and undervalued by global investors for years, but this trend could be set for a reversal in 2020. As uncertainty around Brexit decreases, Morgan Stanley is predicting expanding multiples in Europe, which is also the only market where multiple expansion is predicted. Investors worldwide are underweight in European equities following more than a year of outflows from the region, with some inflows starting to be seen.

European exposure can be obtained via the iShares Europe ETF (ASX: IEU). This ETF provides exposure to a broad range of European companies across 16 major developed European markets. The fund tracks the performance of the S&P Europe 350 and has delivered a return of 21.32% in the year to 30 November. Distributions are made twice yearly and management fees are 0.60% per annum.

Across Europe, 26.45% of the funds securities are from the UK, 17.68% from France, 15.44% from Switzerland, and 13.58% from Germany. The remainder were spread across the Netherlands, Spain, Sweden, Italy, Denmark, Belgium, and other locales. Top holdings include Nestle (3.50%), Novartis (2.65%), Roche Holdings (2.45%), and HSBC Holdings (1.73%).

Income and defensive shares

Political uncertainty, economic slowdown, and recession fears mean safe stocks that pay reliable dividends could be in demand from investors seeking refuge in 2020. Quality, however, will be key. In 2019 we saw companies traditionally known for their dividend payments including National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC) forced to cut dividends in the wake of disappointing earnings results and regulatory costs.

Investors seeking safety should consider companies that provide vital goods and services that are less likely to see a sudden drop in demand or be the target of political attacks. Large and diversified businesses that operate across multiple markets and/or geographies can offset weakness in one market or area with strength in another. Examples could include large pharmaceutical and healthcare providers such as CSL Limited (ASX: CSL) and Ramsay Health Care Limited (ASX: RHC). Other potential dividend shares include health insurer Medibank Private Ltd (ASX: MPL), and energy provider AGL Energy Limited (ASX: AGL).

Digital dominance and the rise of AI

Bank of America has predicted that the current trade war between America and China will transition into a 'technology war' as the superpowers compete to reach technological superiority. Key areas of competition will include artificial intelligence and robotics, Cybersecurity, quantum computing, big data, and 5G.

According to Bank of America, China's annual mobile data traffic could grow at 56% compared to the 35% growth predicted for the United States. Combined with favourable policies and government backing, Chinese technology companies such as Alibaba and Tencent may be better positioned to take advantage of the artificial intelligence revolution, at the expense of United States FAANG stocks (Facebook, Amazon, Apple, Netflix, and Alphabet). In Australia, Appen Ltd (ASX: APX), which provides training data for machine learning, is well placed to take advantage of this trend.

Robotics and automation is another key theme to watch this in 2020, with the potential to jeopardise up to 50% of jobs worldwide by 2035. The ETFS ROBO Global Robotics and Automation ETF (ASX: ROBO) provides exposure to this theme and tracks the ROBO Global Robotics and Automation Index. The ETF returned were 20.53% in the year to 30 November. Management fees are 0.69% per annum and distributions are made annually.

Holdings are distributed across the United States (44.2%), Japan (22.4%), Germany (9.1%), Taiwan (5.7%), Switzerland (3.4%), United Kingdom (3.3%), China (2.3%), Sweden (2.1%), France (2.0%), South Korea (1.7%) and elsewhere. Top holdings include Brooks Automation (1.84%), Zebra Technologies (1.75%), Krones AG (1.71%), Nvidia Corp (1.68%), Koh Young Technology (1.67%), Fanuc Corp (1.66%), Intuitive Surgical (1.63%), Congnex Corp (1.63%) and Daifuku Co Ltd (1.62%).

Emerging markets

According to Morgan Stanley, a better global growth outlook in 2020 may improve the performance of emerging market equities relative to 2019. For 2020, Morgan Stanley have raised their stance on emerging markets from underweight to equal weight, stating:

Emerging market equities typically perform better during periods of global economic re-acceleration and U.S. dollar weakness. As a result, our earnings forecasts suggest growth of 12% for emerging markets in 2020.

Australian investors can access emerging markets via the ASX using ETFs. The iShares MSCI Emerging Markets ETF (ASX: IEM) provides exposure to 800 plus large and mid-size companies in emerging markets. The fund tracks the performance of the MSCI Emerging Markets Index before fees and expenses. The ETF returned 13.95% in the year to 31 October. Management fees are 0.67% and distributions are made twice annually.

The fund held stocks across China (31.78%), South Korea (12.17%), Taiwan (11.88%), India (8.94%), Brazil (7.66%), South Africa (4.65%), Russia (4.09%), and elsewhere. Top holdings include Alibaba (4.49%), Taiwan Semiconductor Manufacturing (4.32%), Tencent Holdings (4.18%), Samsung Electronics (3.69%), and China Construction Bank (1.38%).

The Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE) provides investors with exposure to more than 5,000 companies in emerging economies. The ETF tracks the FTSE Emerging Markets All Cap China A Inclusion Index (with dividends reinvested) in Australian dollars before fees, costs and taxes. The ETF returned 26.04% in the year to 31 October. Management fees are 0.48% per annum and distributions are made quarterly.

Assets are spread across China (35.2%), Taiwan (14.7%), India (10.9%), Brazil (8.6%), and South Africa (5.3%). Top holdings include Alibaba (4.10%), Tencent Holdings (3.85%), Taiwan Semiconductor Manufacturing (2.46%), China Construction Bank (1.23%), Reliance Industries (1.06%), and Ping An Insurance Group Co of China.

Foolish takeaway

As uncertainty around Brexit and US–China trade tension recede, 2020 may be a year where sectors of the market neglected over the past few years come to the fore. Yet political ambiguity remains a concern for global markets, particularly in the US.

The post 4 investment trends for 2020 that you should know about appeared first on The Motley Fool Australia.