3 ASX ETFs for a stress-free start to investing

With one simple trade you get exposure to thousands of companies.

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

Want to start investing without constantly checking share prices or second-guessing every earnings update? Broad-market ASX ETFs can take the pressure off.

With one trade, you get exposure to hundreds – even thousands – of companies, spreading risk and reducing the need to pick individual winners.

Here are 3 ASX ETFs that can offer a genuinely stress-free start to investing.

A woman looks internationally at a digital interface of the world.

Image source: Getty Images

Betashares Australia 200 ETF (ASX: A200)

This ASX ETF is a straightforward way to own Australia's 200 largest listed companies. Blue chips such as Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) and CSL Ltd (ASX: CSL) dominate its portfolio.

In one trade, you're effectively buying a slice of the Australian economy. It spans from banks and miners to healthcare leaders and retailers. A200 ETF is known for its ultra-low management fee, which helps maximise long-term compounding.

While banking and mining heavyweights dominate the Australian market, this ETF provides broad, diversified exposure. All without the stress of choosing individual blue chips.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

This fund opens the door to developed markets worldwide. This ASX ETF holds thousands of companies across the United States, Europe and parts of Asia.

Among its largest holdings are global giants such as Apple Inc (NASDAQ: AAPL), Amazon.com Inc (NASDAQ: AMZN) and NVIDIA Corp (NASDAQ: NVDA). That exposure adds powerful technology and innovation leaders that are underrepresented on the ASX.

By spreading your money across multiple economies and industries, VGS ETF can help smooth returns over time. However, currency movements may influence performance in the short term.

iShares Core S&P/ASX 200 ETF (ASX: IOZ)

This ASX ETF is rounding out the trio. Like A200, IOZ ETF focuses on Australia's largest 200 companies, tracking the S&P/ASX 200 Index (ASX: XJO). Its top holdings closely mirror the leaders of the local share market, including retail giant Wesfarmers Limited (ASX: WES) and Macquarie Group Ltd (ASX: MQG), alongside the major banks and miners.

This ASX fund offers strong liquidity and exposure to the companies that drive much of the ASX's overall performance.

Foolish Takeaway

The beauty of these ASX ETFs is their simplicity. You can choose one as a starting point or combine Australian exposure through A200 or IOZ with global diversification via VGS.

Instead of chasing hot tips, you own broad sections of the market and let time and compounding do the heavy lifting.

For investors who want a calm, disciplined entry into the share market, that kind of structure can make all the difference.

Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, CSL, Macquarie Group, Nvidia, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Amazon, Apple, BHP Group, CSL, Nvidia, Vanguard Msci Index International Shares ETF, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ETFs

ETF written on wooden blocks with a magnifying glass.
ETFs

3 ASX ETFs that could be set to jump – Expert

If conflict is resolved, these funds could rise.

Read more »

ETF on white blocks with a rising arrow on top of coin piles.
ETFs

Which ASX ETFs I'd buy for retirement investing

Australians focused on retirement could do well with these funds.

Read more »

Man smiling at a laptop because of a rising share price.
ETFs

5 ASX ETFs to buy and hold for five years

Looking for long-term options? Here are five quality picks.

Read more »

ETF written in yellow with a yellow underline and the full word spelt out in white underneath.
ETFs

Where to invest $1,000 in ASX ETFs for beginners in April

New to investing? These funds could be excellent starting points.

Read more »

A young bank customer wearing a yellow jumper smiles as she checks her bank balance on her phone.
ETFs

Why I'd buy these excellent Vanguard ETFs in April

Rather than trying to predict the next move, I’m focusing on building a portfolio I’d be comfortable holding for years.

Read more »

three children wearing superhero costumes, complete with masks, pose with hands on hips wearing capes and sneakers on a running track.
ETFs

New to investing? 3 ASX ETFs to set and forget for 10 years

They offer global growth, Australian income and stability.

Read more »

Investor looking at falling ASX share price on computer screen.
ETFs

3 cheap ASX ETFs to buy before it's too late

One of these funds is down 40% from its high.

Read more »

A woman studying share market stats on a computer while writing a report.
ETFs

3 ASX ETFs to buy amid share market rally today: Experts

The ASX 200 soared by 2.6% in earlier trading as investors looked beyond the near-term risks of the global oil…

Read more »