Taking your first step into the share market can be incredibly intimidating.
The Australian share market offers thousands of choices — from blue-chip companies to high-flying tech startups and diversified ETFs. So, where should a beginner put their first $500?
To help narrow things down, let's take a look at three options for first-time investors to consider. They are as follows:
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VanEck Morningstar Wide Moat ETF (ASX: MOAT)
If you're new to investing, buying quality businesses with sustainable competitive advantages is a smart place to begin. And one easy way to do it is with the VanEck Morningstar Wide Moat ETF.
This popular ASX ETF gives investors exposure to U.S. based companies that are deemed to have wide economic moats. These are sustainable competitive advantages that protect profits over the long run. Think giants such as Microsoft (NASDAQ: MSFT), Adobe (NASDAQ: ADBE), and Walt Disney (NYSE: DIS).
Warren Buffett looks for these qualities when making investments for Berkshire Hathaway (NYSE: BRK.B), and based on his success, it is hard to argue against this strategy.
Betashares Nasdaq 100 ETF (ASX: NDQ)
Another ASX ETF that could be a great pick for beginner ASX investors is the Betashares Nasdaq 100 ETF.
It provides investors with easy access to 100 of the largest non-financial stocks listed on the famous Nasdaq index.
This is where many of the world's largest and most highly regarded companies are found. This includes giants like Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), NVIDIA (NASDAQ: NVDA), Alphabet (NASDAQ: GOOGL), and Microsoft.
These companies are shaping the digital economy and have been long-term growth engines for global portfolios. And given how bright their long term outlooks are, it would not be surprising if their positive form continued into the 2030s.
Goodman Group (ASX: GMG)
For beginners who prefer a single high-quality ASX share to buy with their first investment, Goodman Group could be an excellent option.
Goodman is one of the world's leading industrial property developers and managers. It specialises in logistics and warehousing infrastructure — the kind that powers the global e-commerce boom. Think fulfilment centres for Amazon and supply chain facilities for major retailers.
The company has strong property development pipelines, rising rental income, and a growing global footprint. For investors wanting a long-term compounder with solid fundamentals, Goodman could be a great building block.
The team at Citi sees a lot of value in its shares at current levels. The broker has a buy rating and $40.00 price target, which suggests that upside of 17% is possible over the next 12 months.
