If you've got $1,000 to invest in top ASX shares, choosing the right ones can be a difficult choice. With so many stocks to pick from, the array of available options can get overwhelming very quickly.
But the most important thing in this scenario is to not feel discouraged, and take that plunge. So with that in mind, let's discuss two top ASX shares that I think would be great buys for any investor with $1,000 to spend today. Well, they're not technically ASX shares, but exchange-traded funds (ETFs). But even so, I think these two investments are a perfect fit for any investor.
2 top ASX shares to buy with $1,000 right now
Vanguard Australian Shares Index ETF (ASX: VAS)
First up is the ASX's most popular ETF and index fund. The Vanguard Australian Shares ETF takes out this title for good reason. It provides an easy and cheap way to invest in the top 300 ASX shares on our markets, all in one simple investment.
That's everything from Commonwealth Bank of Australia (ASX: CBA) and Telstra Group Ltd (ASX: TLS) to Coles Group Ltd (ASX: COL) and JB Hi-Fi Ltd (ASX: JBH).
This inherent diversity, plus the relieved pressure of not having to pick an individual company to invest in, is invaluable for most investors, in my view.
VAS has delivered a decent return (including hefty dividend income) over a very long period of time. As of 31 July, this ETF has returned an average of 7.9% per annum over the past ten years.
Right now, VAS units are trading on a trailing dividend yield of 3.51%, which is usually paid out quarterly.
iShares S&P 500 ETF (ASX: IVV)
Another ASX index fund is the iShares S&P 500 ETF. This ETF functions similarly to VAS but with a few small (but key) differences. For one, it covers the largest 500 shares on the US markets rather than the top ASX shares.
So rather than CBA, Telstra and Coles, you get the likes of Apple, Amazon, NVIDIA, Colgate-Palmolive and Coca-Cola.
It's my view that geographic diversity is important in any ASX share portfolio. Our ASX shares are great, but they simply can't match the global scale and domination of the best American stocks.
What's more, this index fund is endorsed by none other than legendary investor Warren Buffett. Buffett has often told investors that they can't go wrong buying an S&P 500 index fund. Here's what he said back in his 2016 letter to shareholders:
Over the years, I've often been asked for investment advice, and in the process of answering I've
learned a good deal about human behavior. My regular recommendation has been a low-cost S&P 500 index fund.
Buffett is a great believer in the endurance of "the American tailwind". Given his success and wisdom, I think it is a poor idea to ignore his advice. As such, it's my view that this low-cost S&P 500 index fund is another great place to park a $1,000 investment today.
