I bought these two ASX shares last week, here's why

Buffett does tell us to be greedy when others are fearful.

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As most of us would be aware, the last week or two on the share market has been a wild time for ASX shares. The S&P/ASX 200 Index (ASX: XJO) is in one of those moods where it seems to swing dramatically most days, either to the upside (or more commonly it seems), to the downside.

Today, thankfully, it's the former scenario. But the fact remains that over the past two weeks, the ASX 200 has lost a meaningful 5.2%.

It's never fun seeing the value of your investments move around like this. But I try and use volatility to my advantage, and accelerate my purchases of shares when the prices are moving around like this. So last week, I topped up my portfolio. Let's discuss the two shares that I bought.

Well, they weren't exactly ASX shares, although they represent an investment in ASX shares. I actually toped up two of my exchange-traded fund (ETF) positions last week.

I bought these two ASX shares last week

The first was the Vanguard Australian Shares Index ETF (ASX: VAS). This ETF is the most popular on the ASX by far. It represents an investment in the largest 300 companies on the ASX.

That's everything from Commonwealth Bank of Australia (ASX: CBA) and Fortescue Metals Group Limited (ASX: FMG) to Telstra Group Ltd (ASX: TLS) and Harvey Norman Holdings Limited (ASX: HVN).

This ETF is a cornerstone of my portfolio, so I was happy to nab some of its units at one of the cheapest prices we have seen in months last week. I like the diversity this fund brings, along with the exposure to some of the best-run businesses in Australia. This ETF also pays out quarterly dividend distributions, which come with franking credits too.

The Vanguard Australian Shares ETF has returned an average of 8.95% per annum since its inception in 2009. That's a historical return I'm happy to hitch a wagon to.

The second ETF I bought last week is actually a very similar one to the first. It was the Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO). The Vanguard Australian Shares ETF is great, but it is a fund that is heavily exposed to the big four banks and large miners that dominate our share market.

But the Vanguard Small Companies ETF focuses on the smaller end of the ASX. As such, it has far more even exposure to other sectors like consumer discretionary and real estate.

Some of its current top holdings are names like Carsales.com Ltd (ASX: CAR), Lynas Rare Earths Ltd (ASX: LYC) and Cleanaway Waste Management Ltd (ASX: CWY).

Over the past three years, this ETF has averaged a return of 9.82% per annum. The fund also pays out hefty dividends every quarter. So for these reasons, I was also happy to top up my position in this ETF last week.

Motley Fool contributor Sebastian Bowen has positions in Telstra Group, Vanguard Australian Shares Index ETF, and Vanguard Msci Australian Small Companies Index ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Harvey Norman. The Motley Fool Australia has positions in and has recommended Harvey Norman and Telstra Group. The Motley Fool Australia has recommended Carsales.com. 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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