There are some ASX shares that I’d invest $1,000 into every single month.
I’m making the distinction because with some shares you wouldn’t want to commit to buying them every month. Sometimes individual ASX shares trade at good value and sometimes they aren’t.
But there are some ASX shares that it could make sense that you could invest $1,000 into every month, particularly in these coronavirus times. Here are three of those monthly ideas:
iShares S&P 500 ETF (ASX: IVV)
One of the best potential investments that people can make is a S&P 500 fund. You can buy this ETF on the ASX but it gives you exposure to many of the best businesses in the world.
I’m sure you know many of its top holdings. Shares like Microsoft, Alphabet, Apple, Amazon, Facebook, Berkshire Hathaway and so on. There are plenty of other useful shares within the holdings like Walmart, Costco and Netflix.
Not only does this ETF give you exposure to much better global businesses compared to ASX shares. But you also get it for a very cheap management fee. Blackrock’s annual cost for this ETF is 0.04%. You could easily invest $1,000 a month into this.
Future Generation Global Invstmnt Co Ltd (ASX: FGG)
This is a listed investment company (LIC) which invests in global shares, but it also has a philanthropic aspect too. It donates 1% of its net assets each year to youth mental health charities.
It invests in globally-focused fund managers based in Australian which are judged to be among the best in the country.
The fact you get to be invested in so many portfolios is attractive. Each fund would have its own group of non ASX shares, so you might be invested in many dozens of different shares. I think that’s great diversification. At the moment it’s trading at a big discount to the underlying net tangible assets (NTA) per share. I think it offers a lot of positives, which is why I’d be happy to invest $1,000 a month into this.
Magellan High Conviction Trust (ASX: MHH)
You may not want an investment into a large group of shares. Perhaps you only want to be invested in a high-conviction portfolio of around 10 of the best shares in the world which you can’t find with ASX shares.
At the moment it’s invested in shares like Alibaba, Alphabet, Microsoft, Facebook and Visa. These are all great businesses which have good balance sheets, attractive growth prospects and digital business models which are good in times like this. I think it’s a great idea to invest $1,000 a month into something like this.
As a bonus it targets a 3% distribution yield.
Which ASX share to buy?
I think all three of these ideas are likely to achieve outperformance compared to most ASX shares and the ASX index as a whole. At the moment I’d probably go for Future Generation Global because it’s trading at such a large NTA discount.
These 3 stocks could be the next big movers in 2020
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.