Many ASX shares are hitting new highs, but I still see appealing pockets of value in some areas of the market.
I don’t think the ASX banking sector is good value, and the larger miners don’t strike me as appealing either. There are other ASX share areas I’d still be willing to invest in.
Vaneck Morningstar Wide Moat ETF (ASX: MOAT)
I believe the MOAT exchange-traded fund (ETF) is set up to have a good-valued portfolio all the time. Morningstar analysts deliberately look for businesses that seem to be at an attractive market price compared to what their underlying value is. The portfolio is regularly adjusted to only own these good value companies.
But it doesn’t just invest in any business. The MOAT ETF targets businesses which have strong competitive advantages, or moats, that are expected to endure for the long-term. We’re talking about advantages like brand power, patents, cost advantages, network effects and so on.
The combination of great businesses at a good price can lead to very good returns, which has been the case with this ASX investment, though it’s not guaranteed to continue. Some of the businesses in the portfolio right now include Salesforce.com, Wells Fargo, Masco, Walt Disney and Equifax.
Telstra Group Ltd (ASX: TLS)
Telstra is another ASX share that I’d be willing to buy right now.
The telco’s share price is down 14% since June 2023, yet the company’s profitability continues to rise. It has been adding subscribers for both its core offering and as a wholesaler. Revenue per user has been increasing thanks to subscription price rising in line with inflation.
Pleasingly, Telstra has been keeping a lid on cost growth and investing in its 5G network.
The telecommunications company has been growing its dividend for shareholders again, which is great to see in this inflationary environment.
If it can unlock faster connections for Aussies, particularly in their homes, then I’d say the future looks bright for the business.
Including franking credits, it might pay a dividend yield of at least 6.75% in FY24.
