Getting started in the share market can feel overwhelming. With thousands of companies to choose from, it is hard to know where to begin. That's where exchange-traded funds (ETFs) can make life easier.
That's because ETFs allow you to buy a basket of shares in a single trade, giving you instant diversification and reducing the risk that comes with owning just one or two companies.
They can be a great first step for beginner investors building a long-term portfolio.
With that in mind, here are three fantastic ASX ETFs worth considering if you are starting your investment journey.
Betashares Nasdaq 100 ETF (ASX: NDQ)
The Betashares Nasdaq 100 ETF gives investors easy exposure to 100 of the largest non-financial companies listed on the Nasdaq stock exchange in the United States.
That means instant access to many of the world's most innovative businesses, including Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), NVIDIA (NASDAQ: NVDA), and Tesla (NASDAQ: TSLA).
The Nasdaq 100 index has delivered strong returns over the long-term thanks to its focus on innovation. The good news is that given the quality of its holdings, this fund appears well-placed to continue this trend over the long term. Especially given its exposure to megatrends like artificial intelligence and robotics.
Vanguard MSCI Index International Shares ETF (ASX: VGS)
The Vanguard MSCI Index International Shares ETF provides broad exposure to more than 1,200 large and mid-sized companies across developed markets outside Australia. Its top holdings include Microsoft, Apple, Nestle (SWX: NESN), Novartis (SWX: NOVN), and LVMH Moet Hennessy Louis Vuitton (FRA: MOH), giving you instant access to leading companies across multiple sectors and countries.
By holding the Vanguard MSCI Index International Shares ETF, investors can diversify beyond the Australian market, reducing the risk of being too exposed to the performance of just one economy. For beginners, it is an easy way to build international exposure into a portfolio without having to pick individual overseas stocks.
Vanguard Australian Shares Index ETF (ASX: VAS)
Finally, the Vanguard Australian Shares Index ETF could be a good ASX ETF for beginners. It tracks the S&P/ASX 300 Index, giving investors exposure to a broad cross-section of the Australian share market. This includes major shares like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and CSL Ltd (ASX: CSL).
For beginners, the Vanguard Australian Shares Index ETF is a straightforward way to invest in Australia's largest and most established businesses. It offers a mix of growth potential and regular dividends, with the added benefit of franking credits for Australian investors.
