4 ASX shares to buy with $20,000 in this volatility

Here are 4 ASX shares to buy with $20,000 in this volatility.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The ASX is facing another day in the red with the S&P 500 seemingly finishing in the red again.

Some people believe that this is just a short-term correction and that prices will stop falling soon. If the trade war does stop then you can imagine prices would quickly revert some of their declines.

So with that in mind, here are four ASX shares to buy with $20,000 in this volatility:

Challenger Ltd (ASX: CGF) – $6,000

Challenger is my favourite financial business on the ASX and it's usually one of the ones that are hardest hit during market dips. Its huge balance sheet is reliant on asset prices holding up.

But, like all crises, this one shall pass – meaning Challenger will recover. In-fact, the demand for annuities could increase due to market crashes because retirees are seeking a safer source of income.

Challenger is currently trading at under 14x FY19's estimated earnings with a grossed-up dividend yield of 5.4%.

BetaShares Asia Technology Tigers ETF (ASX: ASIA) – $4,000

Despite the arrest of the Huawei executive, the trade war between the US and China is currently on hold for now. You would think that the trade war will eventually end, even if it takes a year or two. Don't forget, we are investing with a longer timeframe in mind than just a couple of years.

I think it makes sense to buy this Asian exchange-traded fund (ETF) for two reasons.

Firstly, the trade war may not hurt the constituent companies as much as expected. Many of the businesses are listed outside of China. The ones inside China generate a lot of their earnings from domestic sources or from the rest of the globe that isn't the US.

The other good reason to consider it is the valuation. According to BetaShares, at the end of October this ETF was trading with a price/earnings ratio of 11 with a trailing dividend yield of 1.5%.

However, I wouldn't make it a big portion of your portfolio as the government and governance risks are higher than a typical ETF.

WAM Global Limited (ASX: WGB) and Magellan Global Trust (ASX: MGG) – $5,000 each

Australia might be seen by many global investors as a safe haven away from US and Asian troubles. Therefore, the ASX may not be hit as hard and opportunities may not be as good.

It might be a good idea to invest with quality globally-focused investment managers who have long-term track records of beating the market after fees. Importantly, WAM Global and Magellan Global have high levels of cash which somewhat protects the values of their portfolios and provides ammunition to buy some beaten-down opportunities.

WAM Global aims for small and medium global businesses whereas Magellan Global targets global businesses with large market caps.

Foolish takeaway

I believe the value offered by all four of these shares is compelling and I think they can all beat the market. I already own shares of all four and I'd happily buy more on a day like today.

Challenger is the only individual company on my list, but there are other ASX businesses out there trading at very attractive values.

Should you invest $1,000 in Terracom Limited right now?

Before you buy Terracom Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Terracom Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Tristan Harrison owns shares of BetaShares Asia Technology Tigers ETF, Challenger Limited, MAGLOBTRST UNITS, and WAMGLOBAL FPO. The Motley Fool Australia owns shares of and has recommended Challenger Limited. The Motley Fool Australia owns shares of BetaShares Asia Technology Tigers ETF. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Growth Shares

Happy young couple saving money in piggy bank.
Growth Shares

Where to invest $2,500 into ASX 200 shares today

Analysts think these shares could be top buys for investors with money to invest.

Read more »

Two people having a meeting using a laptop and tablet to discuss Seven West Media's balance sheet
Growth Shares

3 excellent ASX shares to buy for your SMSF

Analysts think these shares could be top picks for SMSF investors. Let's find out why.

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Growth Shares

2 ASX growth shares to supercharge your portfolio

Analysts think these shares could be in the buy zone for growth investors right now.

Read more »

A group of people gathered around a laptop computer with various expressions of interest, concern and surprise on their faces. All are wearing glasses.
Growth Shares

Turn $300 into significant wealth: 3 explosive ASX opportunities for Aussie investors

Analysts think these shares could be great picks for growth focused investors.

Read more »

A man looking at his laptop and thinking.
Growth Shares

What I'd buy with $2,000 on the ASX right now

Here are three options for investors to look at this month.

Read more »

Silhouette of CEO standing in conference room looking out at cityscape.
Growth Shares

3 founder-led ASX 200 shares with serious long-term upside

Let's see what makes these shares top picks according to analysts.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Growth Shares

Where to invest $5,000 in ASX 200 shares in May

Analysts think that these shares could be top picks for Aussie investors next month.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Growth Shares

3 fantastic ASX growth shares to buy with $2,000 in May

Analysts think these shares would be top picks for growth investors right now.

Read more »