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Where I would spend $500 on ASX shares right now

When it comes to buying ASX shares, the minimum investment for a normal trade is $500 (which is set by the Australian Securities Exchange). Depending on your broker, you might have to pay a brokerage cost on top of that, but that’s another issue.

You can still get a small parcel of practically any ASX company for $500, so here are some options to consider if you’re thinking about an investment in today’s market.

Woolworths Group Ltd (ASX: WOW)

I think Woolies is a great choice for a $500 investment today. Everyone knows this supermarket heavyweight’s ‘green W’, which comes with a dominant position in Australia’s grocery market.

The Woolworths share price is also looking attractive in my view. Woolies shares were asking almost $44 just over a month ago, but today, you can pick some up for just $36.15 – a 17.84% turnaround. Thus, I think Woolworths is a great ASX share for a $500 investment today.

Telstra Corporation Ltd (ASX: TLS)

Like Woolworths, Telstra is one of the most recognisable companies in Australia. It is the dominant player in the Aussie telco space and commands around a 50% market share in both the mobile and fixed-line markets.

It’s also a company that I don’t see being too harshly affected by the outbreak of the coronavirus – unless customers decide they want to give up their phones and internet connections! But that hasn’t stopped the Telstra share price dropping nearly 12% over the last month.

Telstra also offers a nice dividend yield – 4.65% on current prices. For these reasons, I think an investment in Telstra today would serve its facilitator well!

Vanguard Australian Shares Index ETF (ASX: VAS)

A final option to consider is this broad market index fund. VAS holds within it the largest 300 companies in Australia. That’s everything from Commonwealth Bank of Australia (ASX: CBA) to JB Hi-Fi Ltd (ASX: JBH) – and Woolworths and Telstra as well for that matter.

Investing in such a diversified investment is a great reason why I think a $500 lump sum would go down well in VAS. It too has lost a decent chunk of value over the last month (around 17%) – but all that means is you can get 17% more units in VAS with your $500 than a month ago.

Over time, I expect this ETF to continue to do very well for investors and I think today’s prices are a great place to start!

These 3 stocks could be the next big movers in 2020

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In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

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Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. 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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