Where to invest your first $1,000 – reliable ASX ETFs

I often lean towards ASX exchange traded funds (ETFs) as a solid starting point for new investors. 

When I began my investing journey, I gave myself "analysis paralysis". There can be an overwhelming amount of information that's available when researching the ASX. 

There are more than 2000 ASX listed companies. If you are starting out with a small amount of capital and don't want to put all your eggs in one basket, its difficult to make a choice.

ASX ETFs give first time investors the opportunity to diversify their portfolio with one trade. 

Think of an ETF like a basket filled with hundreds of companies that all come together. 

This is ideal if you are starting out small, and are focussed on lower-risk, long term investments. 

I you're reading along and resonate with this logic, here are some ASX ETFs that could be options for your first investment.

Vanguard Australian Shares Index ETF (ASX: VAS)

This ETF is one of the most popular funds on the ASX based on total money invested.

It tracks the S&P/ASX 300 Index (ASX: XKO). Essentially, investing in this fund gives you access to 300 of the largest businesses on the ASX.

Included in these 300 companies are the largest blue-chip companies in Australia. It includes names like Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), Wesfarmers Ltd (ASX: WES) etc. 

So for new investors, rather than choosing between a well established Australian company as your first investment, a fund like VAS can give you access to the largest 300 all at once. 

ASX ETFs come with management fees, which are charged by fund managers to cover operating costs like administration, compliance etc. 

The Vanguard Australian Shares Index ETF (ASX: VAS) comes with some of the lowest amongst comparative funds. 

It has risen 39.09% over the last 5 years. If you invested $1,000 today, and it performed the same over the next 5 years, your portfolio would reach $1,390.90. 

BetaShares NASDAQ 100 ETF (ASX: NDQ)

This ETF uses the same idea as VAS, but rather than focussing on the ASX, this ETF focuses on the top 100 largest non-financial companies listed on the Nasdaq stock exchange in the United States. 

It includes companies like Apple, Amazon and Google etc. 

A key difference between the Australian and United States in terms of investing is the NASDAQ-100 Index (NASDAQ: NDX) is heavily weighted toward technology and growth stocks.

Meanwhile, the S&P/ASX 300 Index (ASX: XKO) is weighted more toward financials and mining/resources—reflecting Australia's economy.

The BetaShares NASDAQ 100 ETF (ASX: NDQ) has had a great last five years, rising 111.18% in that period. 

If NDQ grows 111.18% over the next 5 years, your $1,000 investment would become approximately $2,111.80.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

This ETF doesn't just focus on one market, but instead, gives exposure in around 1,500 companies around the world – excluding Australia. 

In fact, the ETF invests in companies from around 23 different countries. This includes the U.S, Japan, U.K, Canada, France, and Switzerland.

It is still largely weighted towards US companies. Currently more than 70% of the fund being made up of stocks from the US. 

However it offers more global exposure than NDQ. 

Over the last five years it has provided strong returns, rising 80.09%.