3 ASX ETFs for beginners starting with $5,000

Starting your investing journey? Here are three funds that could be worth considering.

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Getting started in the share market can feel like a big step, but it doesn't need to be complicated.

For beginners, the focus should be on building a simple, diversified portfolio that can grow over time.

Exchange traded funds (ETFs) can be ideal for this, offering exposure to a wide range of companies or strategies through a single investment.

With $5,000 to invest, here are three ASX ETFs that could help you get started on the right foot.

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VanEck MSCI International Quality ETF (ASX: QUAL)

The first ASX ETF that stands out for beginners is the VanEck MSCI International Quality ETF.

Instead of tracking the biggest companies, this fund focuses on businesses with strong fundamentals, such as high returns on equity, low debt levels, and consistent earnings growth. These are often the types of companies that can perform well across different market cycles.

By investing in the VanEck MSCI International Quality ETF, you are effectively gaining exposure to a curated group of global stocks that have demonstrated financial strength and resilience.

For new investors, this can provide a more disciplined approach to global investing compared to traditional index funds.

This fund was recently recommended by analysts at VanEck.

BetaShares Australian Quality ETF (ASX: AQLT)

If you want local exposure, the BetaShares Australian Quality ETF takes a similar approach within the Australian market.

Rather than holding all the major ASX shares, it selects those that score highly on profitability, earnings stability, and financial health.

This results in a portfolio that tilts towards more reliable and consistent performers, rather than simply the largest companies by market value.

Current holdings include BHP Group Ltd (ASX: BHP), Telstra Group Ltd (ASX: TLS), and Wesfarmers Ltd (ASX: WES).

For beginners, this can be an appealing way to invest in Australian shares while focusing on quality over size, potentially helping to smooth returns over time.

Analysts at Betashares recently recommended this fund.

iShares S&P 500 ETF (ASX: IVV)

To complement these quality-focused strategies, the iShares S&P 500 ETF offers broad exposure to the US market.

This ASX ETF gives investors access to 500 of the largest companies in the United States, covering sectors such as technology, healthcare, and consumer goods.

Among its holdings are the likes of Microsoft (NASDAQ: MSFT), Walmart (NYSE: WMT), and Apple (NASDAQ: AAPL).

This means it provides instant diversification and access to many of the world's most influential businesses, potentially making it a strong core holding for beginner investors.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Microsoft, Wesfarmers, and iShares S&P 500 ETF and is short shares of Apple. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Apple, BHP Group, Microsoft, Wesfarmers, 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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