🚨 New Article 🚨 - DHHF vs VDHG: One ETF To Rule Them All?
+ How have rising interest rates imacted house prices, and are the tech titats only getting stronger?
🚨 New Article 🚨 - DHHF vs VDHG: One ETF To Rule Them All?
G’day, Money Pals!
ASX Investors are blessed with an ever-growing list of ETFs to choose from for their portfolio. In this article, I compare two of ASX's most popular ‘all-in-one’ ETFs, Vanguards VDHG & Betashares DHHF.
Both DHHF & VDHG provide investors with a market for a passive, ‘hands off’ investment option, albeit in a few different ways. This article will analyse the pros and cons of ‘all-in-one’ funds like DHHF & VDHG and unpack some of the key differences between each ETF. Happy reading! 🤙
You can read the full article via the link below ⬇️
What Caught My 👀 This Week
The RBA raised interest rates for the 3rd consecutive month this week to curb inflation. The last time the RBA raised rates for three consecutive months was 12 years ago between March-May 2010, following significant rate cuts triggered by the GFC.
My portfolio tracker: Shareshight – 4 months free for The Money Pal Readers.
It’s widely understood that when interest rates rise, asset prices fall. But not every asset class. Here’s economist Steve ‘The Kouk’ Koukoulas’ take on the surprising capital growth of Australian Property following interest rate hike cycles.
#From Around The Web
Meta Slowdown Fears
In a leaked employee memo from Metas Chief Product officer Chris Cox, he outlined Meta’s six investment priorities while also warning employees of ‘serious times’ triggered by ‘fierce headwinds’.
Meta has been suffering from a slower pace of growth, that will likely be amplified by rising interest rates being observed across the globe. Rising interest rates translate to increased borrowing costs for organisations, potentially leading to a re-prioritisation of capital expenditure. In other words, marketing teams may have less of a budget to play with in the short-medium term. Not good news for Meta who generate around 97% of revenue from advertising!
Higher interest rates also make it difficult for high-growth companies to access the capital they need to continue fuelling their growth. Established organisations like Meta & Alphabet are facing similar headwinds. The key difference being they have the balance sheet to ride out the storm and sail out in an even stronger position. Certain competitors may not be so fortunate! In fact, there are numerous examples of companies with strong financials doubling down on R&D, hiring and CAPEX during rough economic conditions to bolster their position when the storm subsides.
My portfolio tracker: Shareshight – 4 months free for The Money Pal Readers.
While Meta might be facing leaner times in the near term, there’s a reasonable chance they’ll come out stronger when economic conditions improve. This article details how big tech companies have weathered economic downturns in the past, and how they’ve emerged stronger.
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