3 ASX ETFs for beginner investors to buy in March

These funds could be a good place to start.

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If you are just starting out in the share market, simplicity matters.

You do not need to pick individual stocks straight away. You do not need to forecast earnings next quarter. And you definitely do not need to trade every week.

Exchange-traded funds (ETFs) can provide instant diversification and exposure to global markets with a single trade.

With that in mind, here are three ASX ETFs that could make sense for beginner investors in March and beyond.

young man smiling in blue shirt

Image source: Getty Images

iShares S&P 500 ETF (ASX: IVV)

The first ETF for beginner investors to consider buying is the iShares S&P 500 ETF.

This fund tracks the famous S&P 500 index, giving investors exposure to 500 of the largest stocks in the United States. That includes businesses such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Walmart (NYSE: WMT).

Rather than trying to pick which US stock will perform best, this ASX ETF spreads your investment across the broad US market. The S&P 500 index has historically delivered strong long-term returns, supported by innovation, corporate profitability, and economic growth.

For beginners, this type of broad exposure can provide a solid foundation.

Betashares Australian Quality ETF (ASX: AQLT)

If you want exposure closer to home, the Betashares Australian Quality ETF could be worth a look.

This ASX ETF focuses on high-quality Australian shares that boast strong balance sheets, stable earnings, and high return on equity. It aims to tilt towards the best businesses rather than simply tracking the market.

Holdings often include established names with durable competitive positions and solid financial metrics.

For a new investor, a quality-focused approach can reduce exposure to weaker businesses and provide a smoother ride over time. This fund was recently recommended to clients by analysts at Betashares.

VanEck Morningstar Wide Moat AUD ETF (ASX: MOAT)

Another beginner-friendly option is the VanEck Morningstar Wide Moat AUD ETF.

This ASX ETF invests in US stocks that have sustainable competitive advantages. These advantages can include brand strength, intellectual property, or cost leadership.

Its holdings change periodically but currently include shares such as United Parcel Service (NYSE: UPS), Bristol-Myers Squibb (NYSE: BMY), and Huntington Ingalls Industries (NYSE: HII).

Instead of chasing fast-growing but speculative businesses, this fund focuses on shares that can defend their profits over the long term. This has proven to be a highly successful strategy for legendary investor Warren Buffett. And it is never a bad idea for beginners to follow in his footsteps.

Motley Fool contributor James Mickleboro has positions in VanEck Morningstar Wide Moat ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Bristol Myers Squibb, Microsoft, United Parcel Service, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Apple, Microsoft, 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.

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