The Motley Fool

This ETF could be the best way to invest into ASX shares

One of the best ways to invest into shares is to just invest in a good index and benefit from the long-term growth of the market.

Unless fund managers can provide outperformance after fees over the long-term, or very differentiated returns, I just don’t see the point of being invested with most fund managers.

However, you may also think that an investment like Vanguard MSCI Index International Shares ETF (ASX: VGS) is too diverse and you’re losing investment performance because of it. Here is an exchange-traded fund (ETFs) that could provide the right mix for ASX shares:

BetaShares Australia 200 ETF (ASX: A200)

This might be the cheapest way to invest in the ASX market. This ETF has an annual management fee of only 0.07%, which is even cheaper than what’s on offer from Vanguard Australian Share ETF (ASX: VAS).

With this ETF you get exposure to all the ASX blue chips like Commonwealth Bank of Australia (ASX: CBA), Woolworths Group Ltd (ASX: WOW) and BHP Group Ltd (ASX: BHP), all the way down to number 200 on the list. However, many of these large businesses are very mature. 

Aside from the cheap management cost, the other attractive feature of this ETF is that it has an underlying partially franked dividend yield of 4.6%, which is partially due to a higher dividend payout ratio – it has a price/earnings ratio of around 17.75x.

Foolish takeaway

The ASX ETF offers a decent yield, at a decent price / earnings ratio with solid businesses. However, the main issue I have with it is that it’s too focused on financial and resource businesses. 

Even so, I wouldn’t want to put too much money in the ASX ETF, I’d want to balance it with plenty of quality ASX dividend shares like these ones.

Best ASX Dividend Ideas For This Year

With interest rates likely to stay at rock bottom for months (or YEARS) to come, income-minded investors have nowhere to turn... except dividend shares. That’s why The Motley Fool’s top analysts have just prepared a brand-new report, laying out their top 3 dividend bets for 2019.

Hint: These are 3 shares you’ve probably never come across before.

They’re not the banks. Not Woolies or Wesfarmers or any of the “usual suspects.”

We think these 3 shares offer solid growth prospects over the next 12 months. The first two currently offer fat, fully franked yields. The last is a surprising REIT offering you the benefits of being a landlord with none of the hassle! You’ll discover all three names and codes in "The Motley Fool’s Top 3 Dividend Shares for 2019."

Even better, your copy is free when you click the link below. Fair warning: This report is brand new and may not be available forever. Click the link below to be among the first investors to get access to this timely, important new research!

The names of these top 3 dividend bets are all included. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.

Click here to claim your free copy right now!

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares 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.

One ASX Stock For An Estimated $US22 Billion Marijuana Market

A little-known ASX company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

And make no mistake – it is coming. To the tune of an estimated $US22 billion.

Cannabis legalisation is sweeping over North America, and full legalisation arrived in Canada in October 2018.

Here’s the best part: we think there’s one ASX stock that’s uniquely positioned to profit immensely from this explosive new industry… taking savvy investors along for what could be one heck of a ride.

AND, this is the first time The Motley Fool Australia has EVER put a BUY recommendation on a marijuana stock.

Simply click below to learn more on how you can profit from the coming cannabis boom.

Click here to find out more