These 2 quality ASX shares could be worth buying for the long-term, including Vanguard MSCI Index International Shares ETF (ASX:VGS).
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There are some quality ASX shares that could be worth owning for the long-term.
Here they are:
Vanguard MSCI Index International Shares ETF (ASX: VGS)
This is an exchange-traded fund (ETF). One of the advantages of an ETF is that it allows investors to buy a large group of businesses through a single investment. They can also be very cheap in terms of the annual management fee.
The purpose of this ETF is to provide exposure to many of the world’s largest companies listed in major developed countries. Vanguard says that it offers low-cost access to a broadly diversified range of shares that allow investors to participate in the long-term growth potential of international economies outside Australia.
This is a truly global ETF. Countries that have an allocation of more than 0.3% include: the United States, Japan, the United Kingdom, France, Canada, Switzerland, Germany, Netherlands, Sweden, Hong Kong, Denmark, Spain, Italy, Singapore, Finland and Belgium. The US gets the bulk of the allocation, with a weighting of just over two thirds of the ETF.
This ASX share provides exposure to a number of different sectors. Industries with a weighting of more than 5% include: information technology (22.5%), health care (13%), financials (12.3%), consumer discretionary (12.3%), industrials (10.6%), communication services (9%) and consumer staples (7.7%).
In terms of the actual positions that it owns, its biggest 10 holdings at the end of December 2020 were: Apple, Microsoft, Amazon, Alphabet, Facebook, Tesla, Johnson & Johnson, JPMorgan Chase, Visa and Procter & Gamble.
There are plenty of recognisable names further down the portfolio list like Walt Disney, Berkshire Hathaway, Nvidia, Mastercard, PayPal, Adobe, Netflix, Coca Cola, PepsiCo, Walmart, Salesforce.com, Nike, LVMH (Louis Vuitton Moet Hennessy), Costco and so on.
The ETF has an annual management fee of 0.18% per annum. The net returns over the longer-term has been fairly consistent. Over the last three years the net return per annum has been 11.3%, over the last five years the net return has been 11% per annum and since inception in November 2014 it has returned and average of 12% per annum.
Australian Ethical Investment Limited (ASX: AEF)
Australian Ethical describes itself as Australia’s leading ethical investment manager. It says that it provides investors with investment management products that align with their values and provide competitive returns. Investments are guided by the ‘Australian Ethical Charter’ which shapes its ethical approach and underpins both its culture and its vision.
The ASX share has been steadily growing its funds under management (FUM) over time, which is helping the financials.
In FY20 it grew its revenue by 22% to $49.9 million and underlying profit after tax (UPAT) went up 42% to $9.3 million. Excluding the impact of its performance fees, revenue and UPAT grew by 15%.
The group’s FUM went up 19% to $4.05 billion over the year, helped by net inflows of $660 million (up 100%). Customer numbers increased by 20%.
In the three months to 30 September 2020, the company saw a 6.5% increase of FUM to $4.32 billion.
The ASX share’s management has advised that for the six months to 31 December 2020, UPAT is expected to between $4.6 million to $5.1 million, which would be a mid-point increase off 11% compared to the prior corresponding period. Strong FUM growth was offset by the impact of superannuation fee reductions.
The latest update from Australian Ethical has been the quarterly update for the three months to 31 December 2020. FUM increased by another 16.9% to $5.05 billion.
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Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Australian Ethical Investment Ltd. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. and Vanguard MSCI Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.