If you're just beginning your investment journey and aren't sure which ASX shares to buy, then you could consider exchange traded funds (ETFs) instead.
That's because ASX ETFs provide investors with an easy way to invest by allowing you to buy large groups of shares through a single investment.
But which ETFs would be good picks for beginners? Three to consider are listed below. Here's what you need to know about these top ETFs:
Image source: Getty Images
BetaShares NASDAQ 100 ETF (ASX: NDQ)
The first ASX ETF that could be a good option for a beginner is the BetaShares NASDAQ 100 ETF.
This hugely ETF provides investors with access to 100 of the largest non-financial companies listed on the famous exchange.
This means you'll be buying household names such as Google parent Alphabet, Amazon, Apple, Microsoft, Nvidia, Starbucks, and Tesla.
And with the fund pulling back meaningfully from recent record highs, now could be an opportune time for beginners to invest.
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
Another quality option for a beginner investor to consider is the VanEck Vectors Morningstar Wide Moat ETF. It could be particularly good for anyone that is aspiring to be like Warren Buffett with their investments.
That's because this Warren Buffett-inspired ASX ETF gives investors access to a group of companies that have fair valuations and sustainable competitive advantages or moats.
These are qualities that Buffett looks for when finding investments for Berkshire Hathaway (NYSE: BRK.B). And given his incredible track record over multiple decades, it's hard to argue against his strategy.
The fund is currently invested across ~50 shares boasting these qualities. This includes the likes of Adobe, Altria, Campbell Soup Co, and Nike.
Vanguard Australian Shares Index ETF (ASX: VAS)
If you would prefer to invest locally, then the Vanguard Australian Shares Index ETF could be one to consider buying.
This index-based exchange-traded fund aims to track the local ASX 300 index. This index is home to Australia's leading 300 listed companies.
This includes a diverse group of shares such as mining giants BHP Group Ltd (ASX: BHP), Northern Star Resources Ltd (ASX: NST), and Rio Tinto Ltd (ASX: RIO), and blue chips Coles Group Ltd (ASX: COL), Telstra Group Ltd (ASX: TLS), and Woolworths Group Ltd (ASX: WOW).
Another positive with this ASX ETF is that it provides investors with a source of income in the form of dividends. For example, at present, the ETF is trading with a dividend yield of approximately 3.7%.
