Getting started in the share market does not need to be complicated.
For beginners, exchange traded funds (ETFs) can offer an easy way to gain diversification, reduce risk, and get exposure to high-quality investments without having to pick individual shares.
With $1,000, it is possible to build a small but well-rounded portfolio that blends quality, value, and long-term growth themes.
Here are three ASX ETFs that could suit investors taking their first steps.
VanEck Morningstar Wide Moat AUD ETF (ASX: MOAT)
The VanEck Morningstar Wide Moat ETF is often described as an ETF version of Warren Buffett's style of investing.
Rather than focusing on short-term trends, this fund invests in US stocks that are judged to have sustainable competitive advantages or wide economic moats. These are businesses with strong brands, high switching costs, or scale advantages that help protect profits over time.
The portfolio is relatively concentrated, holding around 50 stocks. Examples include Huntington Ingalls Industries (NYSE: HII), United Parcel Service (NYSE: UPS), and Bristol-Myers Squibb (NYSE: BMY).
To highlight how this works in practice, let's look at UPS. Its global logistics network would be extremely difficult and expensive for a competitor to replicate. That kind of structural advantage is exactly what the VanEck Morningstar Wide Moat AUD ETF is designed to capture.
VanEck MSCI International Value ETF (ASX: VLUE)
Another ASX ETF for beginners to look at is the VanEck MSCI International Value ETF. It takes a different approach by focusing on international stocks that appear undervalued based on fundamentals.
The fund holds around 250 developed market companies selected for their value characteristics, such as lower price-to-earnings and price-to-book ratios relative to peers. It also offers a forecast dividend yield of around 3%, which can appeal to investors who want some income alongside growth.
Some of its largest holdings include Micron Technology (NASDAQ: MU), Cisco Systems (NASDAQ: CSCO), and Intel (NASDAQ: INTC).
Cisco is a good example of the type of company the VanEck MSCI International Value ETF targets. It operates critical networking infrastructure used by businesses around the world, generates strong cash flow, and often trades at more conservative valuations than high-growth technology peers.
This fund was recently recommended by analysts at VanEck.
Betashares Crypto Innovators ETF (ASX: CRYP)
The Betashares Crypto Innovators ETF could be another ASX ETF for beginners to consider. However, this ETF is best suited for those comfortable with higher risk options.
Rather than investing directly in cryptocurrencies, this fund provides exposure to stocks that are building the infrastructure of the crypto economy. This includes crypto exchanges, mining firms, and service providers that benefit from increased adoption of digital assets.
The ETF holds up to 50 stocks, with major positions including Iris Energy (ASX: IRE), MicroStrategy (NASDAQ: MSTR), and Coinbase Global (NASDAQ: COIN).
Coinbase is a useful example. As one of the world's largest cryptocurrency exchanges, it benefits from higher trading volumes and broader adoption, without investors needing to hold crypto assets themselves.
