I think there are still some wonderful ASX share opportunities that investors can find in February 2023.
This year has started off strongly for the share market. Investors seem to be becoming more confident about the situation, with inflation seemingly peaking and interest rate increases coming to an end.
If inflation is going to start falling, I still think there are good ASX share options to consider. But, there could still be volatility ahead if interest rates stay higher for longer than expected.
VanEck Morningstar Wide Moat ETF (ASX: MOAT)
This is one of my preferred exchange-traded funds (ETFs) 0n the ASX.
I think that, over the long-term, buying quality businesses at good prices gives a high chance of outperformance.
The businesses within the ETF are chosen by analysts at Morningstar. VanEck says the focus is on “quality U.S. companies Morningstar believes possess sustainable competitive advantages, or ‘wide economic moats’ “.
Shares are only invested in when they are at attractive valuations, according to VanEck “targets companies trading at attractive prices relative to Morningstar’s estimate of fair value”.
The MOAT ETF had returned an average of 13.5% over the five years to 31 December 2022, beating the 12% return per year of the S&P 500 over the five years. I think this investment strategy has shown it’s very effective over the longer-term.
WCM Global Growth Ltd (ASX: WQG)
This is a listed investment company (LIC) that looks to be invested in businesses that are quality, have strengthening economic moats and have a company culture that’s supportive for improving those competitive advantages.
The last year has been tough for ASX share, it’s down more than 20%, despite being invested in some of the businesses that weather a possible downturn the most.
With the share market seemingly over the worst of it, I think that this LIC could outperform from this lower starting point.
Not only that, but the leadership have committed to progressively growing the dividend, which means that investors can get the benefit from the long-term performance paid through dividend income every six months.
Some of its current investments include Thermo Fisher Scientific, United Health Group, Amphenol, Novo Nordisk and Visa.
Final thoughts
I think both of these ASX shares have the potential to outperform in 2023 thanks to their quality bias.
