The best ASX ETFs for beginners in 2025

Let's see why these funds could be top picks for beginners this year.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Starting an investing journey can feel overwhelming. With thousands of shares to choose from, where do you begin?

For many beginners, exchange-traded funds (ETFs) are the smartest first step. They provide instant diversification and exposure to world-class stocks — all in a single trade.

If you're looking to get started this year, here are three ASX ETFs that could make an excellent foundation for a beginner's portfolio.

Man looking at an ETF diagram.

Image source: Getty Images

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The first ASX ETF to look at is the VanEck Morningstar Wide Moat ETF. It is built around a simple but powerful idea: invest only in companies with durable competitive advantages and fair valuations.

Competitive advantages, or wide moats, include brand power, cost advantages, or high switching costs, and protect businesses from rivals.

The VanEck Morningstar Wide Moat ETF's portfolio includes global leaders like Alphabet (NASDAQ: GOOGL), Boeing (NYSE: BA), and Nike (NYSE: NKE). These are companies that dominate their industries and have pricing power to match. But it also features less obvious names such as Zimmer Biomet (NYSE: ZBH) in medical devices and MarketAxess (NASDAQ: MKTX) in electronic bond trading, giving investors exposure to niche but profitable businesses.

For beginners, this fund provides a ready-made basket of high-quality stocks selected for their ability to compound wealth over time.

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF gives investors access to the 500 largest listed companies in the United States, a market that has been one of the best-performing in history.

While big names like Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and NVIDIA (NASDAQ: NVDA) often grab headlines, the fund also holds businesses from sectors like healthcare, consumer staples, and finance.

This includes Johnson & Johnson (NYSE: JNJ), Coca-Cola (NYSE: KO), and JPMorgan Chase (NYSE: JPM). These are companies with global reach and steady earnings power.

This balance of high-growth tech and stable, established leaders could make the iShares S&P 500 ETF an excellent core ETF for long-term investors.

Betashares Nasdaq 100 ETF (ASX: NDQ)

Finally, the Betashares Nasdaq 100 ETF could be a top pick for beginners. It tracks the Nasdaq-100 Index, which is home to many of the world's most innovative and disruptive companies.

Naturally, it is packed with tech giants such as Amazon (NASDAQ: AMZN), Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA).

But it also provides exposure to companies outside the pure technology sphere. For instance, Costco (NASDAQ: COST) in retail, PepsiCo (NASDAQ: PEP) in consumer staples, and Starbucks (NASDAQ: SBUX) in coffee are all part of the index.

This mix means the Betashares Nasdaq 100 ETF isn't just a tech bet — it is also a way to invest in the broader innovation economy.

JPMorgan Chase is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF, Nike, and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, BetaShares Nasdaq 100 ETF, Costco Wholesale, JPMorgan Chase, Meta Platforms, Microsoft, Nike, Nvidia, Starbucks, Tesla, and iShares S&P 500 ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and MarketAxess and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nike, Nvidia, Starbucks, VanEck Morningstar Wide Moat ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ETFs

A businessman lights up the fifth star in a lineup, indicating positive share price for a top performer
ETFs

Bell Potter names 2 of the best ASX ETFs to buy now

These funds offer investors access to some of the best stocks in the world.

Read more »

ETF written in white and in shopping baskets.
ETFs

3 ASX ETFs to buy before the rally really takes off: expert

James Gerrish from Shaw and Partners says the "war fear" in the market is now fading and names 3 ASX…

Read more »

2 smiling women looking at a phone.
ETFs

Why I'd buy these BetaShares ETFs for my portfolio in April

I think these BetaShares ETFs offer a mix of growth, resilience, and long-term potential.

Read more »

Children skipping and jumping up a hill.
ETFs

This monthly income ASX ETF yields 7%, and every ASX investor should take note

The price of this ASX ETF has climbed higher over the past 12 months.

Read more »

Happy man and woman looking at the share price on a tablet.
ETFs

3 cheap ASX ETFs to buy for the tech rebound

The funds have fallen heavily and now could be the time to pounce on them.

Read more »

The letters ETF with a man pointing at it.
ETFs

Why these ASX ETFs could be top picks in April

Let's see what makes these funds stand out.

Read more »

Three different hands against a blue backdrop signal thumbs up, indicating share price rise on the ASX market
ETFs

3 of the best ASX ETFs for income investors in 2026

These funds offer instant access to Australia’s top dividend stocks.

Read more »

A casually dressed woman at home on her couch looks at index fund charts on her laptop.
ETFs

Why I think these Vanguard ETFs could be top buys for next month (and forever)

A funds offer a simple mix of growth, diversification, and long-term potential.

Read more »