Looking to invest your first $1,000 in shares? Here are 2 easy ASX options

Ready to invest your first $1,000? Here are 2 easy ASX options you can choose!

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So you’re ready to invest your first $1,000 in the share market?


One of the hardest things about investing is actually committing to the whole process.

For many people, shares and investing are just shoved into the ‘too hard’ or ‘I’ll worry about that when I’m old’ baskets.

But the earlier you take that first footstep of this thousand-mile journey, the better! Compound interest required 3 things: consistency, a decent rate of return and time – and the latter is often the biggest factor in how much you can eventually expect to make.

So, for your first grand in ASX shares, here are 2 easy choices.

Vanguard Australian Shares Index ETF (ASX: VAS)

With an index fund like VAS, you are buying the largest 300 companies on the markets rather than an individual stock pick. This means that all of the hard work and stresses of professional investing pass you by – you can be safe in the knowledge that you own (pretty much) everything. That’s everything from blue-chip shares like Commonwealth Bank of Australia (ASX: CBA) and Coles Group Ltd (ASX: COL) to growth stocks like Afterpay Ltd (ASX: APT) and Kogan.com Ltd (ASX: KGN).

VAS also pays a reasonable dividend, which you can reinvest for a greater compounding effect if you so wish. All in all, I think an index fund like VAS is a great place for your fist $1,000.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

This is another index fund, but actually invests in US shares rather than companies on our own soil. Instead of the biggest 300 Aussie companies, with NDQ you are getting 100 of the largest companies on the US NASDAQ index, which houses most of the ‘tech’ stocks in America. You will probably recognise most (if not all) of the top stock in this fund – with names like Apple, Microsoft, Amazon, Facebook, Alphabet (Google), Intel and even PepsiCo having heavy allocations here.

These kinds of companies are going to have a major role in the global economy for at least the next decade (that’s my outlandish prediction anyway) – so I think this can be a great first investment, especially if you’re a young investor. It’s an easy way to get exposure to some of the best and most disruptive companies on the planet.

Foolish takeaway

If you have your fist $1,000 ready to go, I think these 2 ASX shares are fantastic choices. There is reduced risk through the safety of numbers here, and I think both indexes will continue to appreciate at a healthy rate over time.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

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's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Facebook and Kogan.com ltd. 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.

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