Getting started in the share market does not need to be complicated.
In fact, I think the simpler the approach, the better. Especially in the early stages.
With $5,000 and exchange-traded funds (ETFs), it is easy to get exposure to quality assets, build a diversified portfolio, and begin the habit of investing.
Here are three ASX ETFs I think are a great place to start.
Image source: Getty Images
Vanguard Australian Shares Index ETF (ASX: VAS)
If I were starting out with ETFs, I would want exposure to the local market. The Vanguard Australian Shares Index ETF provides that.
It gives you access to a broad range of Australian companies, from the largest names like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Telstra Group Ltd (ASX: TLS), through to mid and smaller companies such as Elders Ltd (ASX: ELD) and DroneShield Ltd (ASX: DRO).
That diversification matters. It means you are not relying on a single company or sector. You are participating in the overall performance of the Australian economy.
There is also the benefit of dividends, with Australian shares typically offering income supported by franking credits. For a beginner, I think this is a very straightforward foundation.
Vanguard MSCI Index International Shares ETF (ASX: VGS)
Australia is only a small part of the global market. That is why I would want international exposure as well.
The Vanguard MSCI Index International Shares ETF gives access to around 1,300 large and mid-cap companies across developed markets. This includes global leaders like Apple, Microsoft, NVIDIA, and Johnson & Johnson.
What I like is how it complements Australian exposure. The ASX is heavily weighted toward banks and miners. The VGS ETF brings in sectors like global technology, healthcare, and consumer brands, which helps balance a portfolio.
For me, this is about broadening the opportunity set.
BetaShares Nasdaq 100 ETF (ASX: NDQ)
The final ETF I would consider has a growth tilt.
The BetaShares Nasdaq 100 ETF focuses on the Nasdaq 100 index, which includes many of the companies driving innovation globally.
Top holdings include Alphabet, Amazon.com, Meta Platforms, and Tesla Inc.
This ETF gives exposure to areas like artificial intelligence, cloud computing, electric vehicles, and digital platforms.
It is more concentrated and can be more volatile than a broad market ETF. But I think having a portion of your portfolio exposed to these kinds of businesses makes sense, especially over a long time horizon.
It adds a different growth dynamic alongside the broader exposure of the VAS and the VGS ETFs.
Foolish takeaway
Starting with ETFs is one of the easiest ways to begin investing. The VAS ETF gives you broad exposure to the Australian market, the VGS ETF opens the door to global developed markets, and the NDQ ETF adds a focused growth component tied to innovation.
Together, they create a simple, diversified starting point. And from my perspective, that is what a beginner investor needs.
