If you’re mining for a top new investment, research shows that you shouldn’t look past, well, mining.
Investment firm Sharesies has released its August report which shows that the top companies investors were interested in were Sayona Mining, Zip Co and BHP Group.
Six of the top ten companies are in the mining industry, with the others being New Hope Corporation, Whitehaven Coal, CBA, Pilbara Minerals, Xero, Wesfarmers and Core Lithium.
“Our investors are looking at their investing portfolios and thinking about how to future-proof them for the foreseeable future given current market conditions,” Sharesies’ Australia Country Manager Brendan Doggett says.
He says this includes looking at shares that have historically done well like resources and bluechips, and exchange-traded funds.
While the report did break it down to US, ASX and NZX-specific buys, the top 10 buys across all markets were:
- BHP Group
- Commonwealth Bank of Australia
- Fortescue Metals Group
- Tesla
- Wesfarmers
- Qantas Airways
- Apple
- Woolworths Group
- Pilbara Minerals
- Core Lithium
When it came to selling, Qantas Airways took out the top spot followed by Tesla and Pilbara Minerals.
In Australia, the markets were similar with the top ASX sells being:
- Qantas Airways
- Pilbara Minerals
- BHP Group
- Commonwealth Bank
- Core Lithium
- Woodside Energy Group
- Telstra
- Fortescue Metals Group
- Zip Co
- Woolworths Group
The top buys on the ASX included BHP Group, Commonwealth Bank of Australia and Fortescue Metals Group.
Mr Doggett says that during periods of uncertainty investors look for defensive stocks.
“Defensive stocks are companies that are well established, tend to have strong cash flows and pay regular dividends, regardless of the state of the overall share market. Think utilities, healthcare and big consumer brands.”
This can be seen in the August top ASX buys.
He noted that investors were taking fewer risks because of the higher interest rates. Wesfarmers, Woolworths and Coles are all on the top 10 list.
“Rather than avoid certain sectors, a strategy is to make sure there’s diversification which is investing in different types of stocks, whether they vary by industry, market, geography etc.
“A common theme to diversifying in these volatile times is by investing in exchange-traded funds (ETFs) given the spread of investments these provide.”
The top ETF buys across all markets were:
- VanEck Global Clean Energy ETF
- BetaShares Climate Change Innovation ETF
- Vanguard Australian Shares Index,
- iShares Core MSCI World ex Australia ESG Leaders ETF
- iShares Core MSCI Australia ESG Leaders ETF
The top ETF sells were:
- VanEck Global Clean Energy ETF
- Vanguard Australian Shares Index
- iShares Core MSCI World ex Australia ESG Leaders ETF
- Vanguard MSCI Index International Shares
- iShares Core MSCI Australia ESG Leaders ETF