There are some quality ASX shares that could be buys for the long-term. US exposure looks interesting with a strong Aussie dollar.
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There are some ASX shares that could be worth looking into.
The Australian dollar has strengthened over the last year to be worth US$0.77. That makes it cheaper to buy US assets or US earnings.
One of President Biden’s urgent goals is to administer 100 million vaccine shots in 100 days to combat the spread and impact of COVID-19, which may have the effect of helping the various parts of the economy recover.
Here are three ASX share ideas:
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
This exchange-traded fund (ETF) aims to give exposure to a diversified portfolio of attractively priced US companies with sustainable competitive advantages according to Morningstar’s equity research team.
The focus is on quality US companies that Morningstar believes have wide economic moats. The investments that VanEck Vectors Morningstar Wide Moat ETF targets must be trading at an attractive price relative to Morningstar’s estimate of fair value.
On 21 January 2021, its biggest positions include: Charles Schwab, John Wiley & Sons, Corteva, Intel, Wells Fargo, Cheniere Energy, Bank of America, Constellation Brands, Zimmer Biomet, US Bancorp, Aspen Technology, Blackbaud, Medtronic, Yum! Brands, Gilead Sciences and Berkshire Hathaway.
The ETF has an annual management fee of 0.49% per annum. Over the past five years the VanEck Vectors Morningstar Wide Moat ETF has delivered net returns of 16.6% per annum, beating the S&P 500’s return of 14.5% per annum over the same time period.
Pushpay Holdings Ltd (ASX: PPH)
Pushpay is the next ASX share that has a lot of US exposure. Its client base is predominately large and medium US churches. It’s an electronic donation business that also offers other services such as a church management system, a livestreaming service and donor tools.
The company has seen an elevated level of processing volume over the past year as it helps churches and the congregations adapt to the COVID-19 world. In the FY21 half-year result it saw total processing volume increase by 48% to US$3.2 billion. This strength saw earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDA) surge 177% to US$26.7 million in the FY21 half-year result.
Pushpay said that it benefited from growing operating leverage and it’s expecting further operating leverage to come with limited growth of operating expenses whilst operating revenue grows at a faster pace. Pushpay’s gross profit margin went up from 65% to 68% and the EBITDAF margin jumped from 17% to 31%.
The ASX share is hoping to grow its market share to 50% and eventually reach US$1 billion of annual revenue. It’s looking to expand into smaller churches and possibly other geographies to make this goal a reality.
Betashares Nasdaq 100 ETF (ASX: NDQ)
The ETF is invested in 100 of the largest businesses on the NASDAQ.
Many of the world’s biggest and most dominant technology businesses are listed in North America.
The biggest positions in the portfolio are: Apple, Microsoft, Amazon, Tesla, Facebook, Alphabet, Nvidia, PayPal and Netflix.
Betashares Nasdaq 100 ETF is actually invested in many global leaders, not just the FAANGs. It also gives exposure to Adobe, Intel, Broadcom, PepsiCo, Qualcomm, Costco, Texas Instruments, Moderna, Starbucks, Booking Holdings and Intuitive Surgical.
The ETF has management costs of 0.48% per annum. Betashares Nasdaq 100 ETF has delivered net returns of 34.8% over the last year, 27.4% per annum over the last three years and 21.4% per annum since inception in May 2015.
Where to invest $1,000 right now
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Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
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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 BETANASDAQ ETF UNITS and PUSHPAY FPO NZX. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS, PUSHPAY FPO NZX, and VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.