The Motley Fool

Where I’d be happy to invest my first $500

If you’re just starting out investing, perhaps with $500, you want to make sure your first investment goes quite well. You don’t want to be put off shares with a painful beginning experience!

It’s better to learn from other people’s mistakes rather than your own. One of the hardest things when starting out is what to invest in. There are literally thousands of options on the ASX.

I’m not going to suggest a speculative option. And in the past I have suggested for quality, diversified ideas for beginners like Future Generation Investment Company Ltd (ASX: FGX) and MFF Capital Investments Ltd (ASX: MFF).

Today I’m going to highlight an even simpler option called Vanguard MSCI Index International Shares ETF (ASX: VGS). It’s an exchange-traded fund (ETF) which allows you to invest in, essentially, most of the global share market.

By just buying this one investment your underlying $500 is spread across around 1,600 businesses in all of the major share markets in the US, Japan, the UK, France, Canada, Switzerland, Germany and so on.

Its holdings are varied with businesses like Microsoft, Apple, Amazon, Facebook, Alphabet, Nestle, Visa, Berkshire Hathaway, Walt Disney, Intel, Boeing, HSBC, Toyota and so on. I think you can get great diversification with this ETF.

Its annual management fee is only 0.18% per annum, which is cheap compared to most investment products and leaves more of the net returns in your hands.

It’s certainly capable of producing decent returns when the global share market does well – over the past three years it has delivered an average return of 14.1% per annum.

It also has a decent dividend yield of 2.3%, which is better than a number of popular globally-focused ETFs.

Foolish takeaway

With how diverse this ETF is I certainly think it’s possible this could be your only investment for a whole lifetime. However, for now I’d say it would just be a very good starting investment.

These great ASX shares could also make really good beginner investments with $500.

Top 3 ASX Shares For Long-Term Growth

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 owns shares of FUTURE GEN FPO and Magellan Flagship Fund Ltd. 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.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.