ASX growth shares can be a really good way to grow your portfolio over the long-term. April 2021 could be the time to jump on some of these opportunities.
Some investments have plenty of growth potential over the long-term, particularly if they're exposed to growth opportunities outside of Australia.
These two ASX growth shares could be worth looking into:
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Bubs Australia Ltd (ASX: BUB)
Bubs is one of the infant formula manufacturers on the ASX. It's somewhat different because it specialises in goat milk infant formula.
Just like its larger competitor A2 Milk Company Ltd (ASX: A2M), Bubs suffered during the first quarter of FY21 because of a heavy impact of pantry de-stocking as well as much lower demand from daigou buyers.
However, Bubs is now seeing a strong turnaround in demand, starting in the second quarter of FY21. It saw group quarterly gross revenue of $12.8 million – up 36% quarter on quarter, though it was still down 12% on the prior corresponding period.
There were plenty of growth statistics reported in the three months to 31 December 2020. China cross border e-commerce (CBEC) sales went up 27% quarter on quarter, adult goat dairy gross revenue increased 45% and Bubs infant nutrition revenue grew 27%.
It's making particularly strong progress in two key areas – Australia's biggest retailers and with export markets outside of China.
The ASX growth share reported to investors that it's the fastest growing infant formula manufacturer across Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL) and Chemist Warehouse with combined retail scan sales at the checkout up 41% quarter on quarter.
Export sales to markets outside of China are showing the strongest signs of improvement, with growth of 194% quarter on quarter.
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
This has been one of the best-performing exchange-traded funds (ETFs) over the last five years with a net return per annum of 17.3%. That's after the annual management fee cost of 0.49%.
These returns have been generated by a portfolio of US shares that is constructed by analysts from Morningstar that are looking for businesses with sustainable competitive advantages, or wide economic moats. To make it into the portfolio, the companies have to be trading at an attractive price compared to Morningstar's estimate of fair value after going through a rigorous equity research process.
As of 26 March 2021, some of the biggest positions were: Facebook, General Dynamics, Gilead Sciences, Alphabet, Guidewire Software, Intel, John Wiley & Sons and Kellogg Co.
In terms of the sector weightings, more than five industries have exposure above 10%: information technology (19%), financials (18.6%), health care (17.9%), industrials (11.9%) and consumer staples (10.2%).
