Australian Resources continue to deliver outstanding returns for investors.
Despite a sharp slowing in world economic growth during 2022, Australia’s resource and energy export earnings are forecast to set a new record of $459 billion in 2022–23. But earnings are forecast to fall to $391 billion in 2023–24 (still the third highest level of earnings on record), as tepid world demand and an easing in supply disruptions reduce commodity prices. Energy commodity prices have declined but generally remain above levels reached just prior to the Russian invasion of Ukraine. Markets have become less concerned about a drop in exports of gas, coal and oil by Russia, one of the world’s largest energy exporters: Northern Hemisphere nations have been successful in building up energy stockpiles for winter. Weak Chinese energy demand (largely due to COVID lockdowns) has made it easier for Western European countries to fill gas storage.
What’s the best way to invest in Resources
In a difficult investment year for Australian investors, the Australian resources sector stood tall and delivered exceptional returns against the Technology stocks and Financials. The easiest and cheapest way to get access to this sector is via an exchange traded fund (ETF) and the Australian Resources Sector QRE-ASX is a good start as it offers exposure to the largest ASX-listed companies in the resources sector, including BHP, Rio Tinto, Woodside Petroleum and more.
Betashares QRE ETF
Compare the performance against the Financials Betashares QFN ETF
Our top performing ETF’s
When you invest, you don’t have to bet everything on one team; instead, the best policy is to divide your money among different types of assets. This is what we call asset allocation — done right as it safeguards your money and maximizes its growth potential, regardless of which team is winning in markets.
With asset allocation, you divide your investments among shares or listed investments like ETF’s, bonds and cash. The relative proportion of each depends on your time horizon—how long before you need the money — and risk tolerance — or how well you can tolerate the idea of losing money in the short term for the prospect of greater gains over the long term.
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