2 easy ASX shares for a starter portfolio

Magellan Global Equities Fund (ASX: MGE) is one of my easy ASX shares for beginners.

| 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

Taking the plunge with ASX shares is a scary thing to do. Although you might be keen to start investing, actually putting your money where your mouth is requires something of a leap of faith. You might have heard stories from friends or family about untold riches or wealth-destroying black holes in equal measure. The truth (according to this writer) is you should be aiming for neither of the above. The easiest path to success on the share market is a slow one – if you just aim to put the wheels of compound interest in motion, you will likely be rewarded over the long-term.

So here are 2 ASX shares which I think are perfect for this purpose.

Magellan Global Equities Fund (ASX: MGE)

Magellan Global Equities Fund is an active exchange traded fund (ETF) run by Magellan – a successful and popular ASX funds manager. With MGE, you are contracting Magellan to invest your money on your behalf, which they aim to do by investing in 20-40 of the best companies around the world. Some of MGE's current top holdings include companies like Facebook, Visa, Microsoft, Starbucks and Alibaba, all of which are represented in a single MGE share. Of course, Magellan doesn't manage your money out of charity – charging a management fee of 1.35% annually. But with a return of 18.05% per annum over the past three years, this could well be worth it.

Vanguard U.S. Total Market Shares Index ETF (ASX: VTS)

VTS is a passive ETF that tracks the US stock market in its entirety – all 3,591 stocks. This means you get exposure to the biggest US companies like Apple, Amazon and Proctor & Gamble as well as mid-cap and small-cap companies that other indices often exclude – giving you a fairly balanced investment. The US is arguably the most historically successful country to invest in – American companies have dominated the world economy since World War 2 and I don't see this changing anytime soon. VTS is also ultra-cheap – charging a fee of only 0.03% (which is basically free – only $3 per $10,000 invested a year).

Foolish Takeaway

With these two investments, all of the hard work is out of your hands, making them perfect for a starter portfolio. You can get started in investing without ever actually having to pick a stock, so if you just want to dip your toe in the cool investing waters, either of these two investments would be perfect, in my opinion.

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Sebastian Bowen owns shares of Facebook. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Facebook. The Motley Fool Australia has recommended Facebook. 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 ⏸️ Shares for Beginners

toddler in business attire surrounding by floating money representing asx shares beginner investor
⏸️ Shares for Beginners

2 top notch ASX shares for beginners

Woolworths Group Ltd (ASX: WOW) is one of the 2 ASX shares that I think would be perfect for a…

Read more »

toddler in business attire representing asx shares beginner investor
⏸️ Shares for Beginners

2 ASX shares perfect for beginners in 2020

Argo Investments Ltd (ASX: ARG) is 1 of the 2 ASX shares that I think is perfect for a beginner…

Read more »

⏸️ Shares for Beginners

3 tips for investing in ASX 200 shares for beginners

Investing in ASX 200 shares can be exciting. Here are a few tips I wish I had known before I…

Read more »

⏸️ Shares for Beginners

How mum and dad investors are beating fund managers at their own game

Retails investors can give themselves a pat on their back as they are besting most fund managers in the COVID-19…

Read more »

⏸️ Shares for Beginners

Ready to invest your first $1,000? Try these 2 ASX shares

Here's why I think Magellan High Conviction Trust (ASX: MHH) and 1 other ASX share are perfect choices for a…

Read more »

⏸️ Shares for Beginners

Here's how I would put $10,000 to work on the ASX

You work hard for your money, so why not make your money work hard for you? Here's how to put…

Read more »

⏸️ Shares for Beginners

2 ASX shares for a first-time investor

Here's why I would choose Magellan Global Trust (ASX: MGG) as one of my ASX shares for a first-time investor

Read more »

⏸️ Shares for Beginners

3 ASX shares to buy as a beginner

It can be hard to know where to invest in ASX shares as a beginner, so here are a few…

Read more »