Just as many ASX investors feared it would over the weekend, the ASX stock market has opened to another calamitous day of trading so far this Monday.
After tanking a horrid 2.1% on Friday, it seems investors are doubling down on the selling today, with the S&P/ASX 200 Index (ASX: XJO) currently down an awful 2.86% at the time of writing to just under 7,720 points.
That record high of 8,148.7 points that the ASX 200 hit just last Thursday seems very far away right now.
Stock market falls of this magnitude can be highly distressing for ASX investors to watch unfold. After all, no one likes to see the value of their investments drop outside of their control.
But times like this can represent a good opportunity to buy more of our favourite investments at cheaper prices. But don't take my word for it. The legendary Warren Buffett once said that "the best chance to deploy capital is when things are going down".
So, with that sentiment in mind, here are two ASX investments that I would happily invest $5,000 in as the market takes another leg down.
It's worth remembering that while we have seen some horrid falls over the past day and a half of trading, many ASX 200 shares still remain at elevated prices relative to where they have traded over the last year or two. As such, the investments I'm eyeing today are both index funds. I think these investments are better buys at this particular moment for most investors.
What I would buy with $5,000 in the ASX market today
First up, I would go with the Vanguard Australian Shares Index ETF (ASX: VAS) for half of that $5,000.
The VAS ETF is an index fund that tracks the S&P/ASX 300 Index (ASX: XKO). This index, as its name implies, covers the largest 300 shares on the ASX market by market capitalisation.
As such, it's a great choice for any investor who might be struggling to find an individual ASX share trading at a compelling valuation right now.
This index fund has a long history of delivering solid returns. These include a hefty portion of dividend income, which also typically includes some franking credits. It is somewhat skewed towards the largest banks and miners in the ASX market. But it still offers exposure to everything from Telstra Group Ltd (ASX: TLS) and Coles Group Ltd (ASX: COL) to JB Hi-Fi Ltd (ASX: JBH) and Ampol Ltd (ASX: ALD).
VAS units have been whacked hard since last Thursday. At present, this exchange-traded fund (ETF)'s units are currently sitting at $95.72 each. That's down 2.5% today and down around 4.7% since Thursday's close.
Thanks to this sizeable drop, today is a great day to initiate or top up a position in the Vanguard Australian Shares ETF, in my opinion.
Looking beyond the ASX
Of course, the ASX market isn't the only one bleeding right now. The US markets have also been hit hard over the past few days. One investment that I think is looking hot for a buy right now is the BetaShares Nasdaq 100 ETF (ASX: NDQ).
Unlike the ASX market, the US is served by two major stock exchanges. The New York Stock Exchange is the older and more famous one. But the other is the NASDAQ, which is known for housing most of the American tech shares we all know and may (or may not) love.
The BetaShares Nasdaq 100 ETF tracks the latter. Almost every famous US tech share you can think of can be found in this index fund. There's Apple, Microsoft, Amazon, Netflix, Alphabet, PayPal, Tesla, Adobe and NVIDIA, amongst many more.
These are some of the American shares that have taken the biggest hits in recent days. To illustrate, the NDQ units on the ASX market have crashed a painful 6.8% alone since last Thursday's close. Yet these companies remain some of the highest-quality stocks in the world, in my view.
It's hard to imagine a world where Microsoft's Office, Apple's iPhone or Amazon's distribution network don't remain popular and indispensable products and services. As such, with Buffett's advice in mind, I would happily plough $2,500 into NDQ units at this time.
