Starting an investment portfolio can feel more complicated than it needs to be.
There are thousands of shares to choose from, constant market commentary to filter, and plenty of wild swings.
The good news is that ASX exchange traded funds (ETFs) can make the first step much simpler. They allow investors to buy a basket of assets in a single trade, which means instant diversification without having to pick every holding individually.
Here are three ASX ETFs that could help new investors get started.
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Vanguard Diversified High Growth Index ETF (ASX: VDHG)
The first ASX ETF to look at is the Vanguard Diversified High Growth Index ETF.
It is designed as an all-in-one investment option. It provides exposure to Australian shares, international shares, emerging markets, and a smaller allocation to defensive assets.
That makes it a useful starting point for investors who want broad diversification without having to build everything themselves.
The fund has a high-growth profile, meaning most of its exposure is to shares. This gives it stronger long-term return potential than more conservative options, but it also means investors should expect market volatility along the way.
For someone who wants a simple first ETF, the Vanguard Diversified High Growth Index ETF could be worth considering.
iShares S&P 500 ETF (ASX: IVV)
Another ASX ETF that could appeal to new investors is the popular iShares S&P 500 ETF.
It tracks the S&P 500 index, giving investors exposure to many of the largest listed companies in the United States.
Its holdings include companies such as Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Walmart (NASDAQ: WMT).
The US market is home to a large number of global leaders across technology, healthcare, financial services, consumer goods, and industrials. This fund allows Australian investors to access that market through the ASX.
This can be useful for diversification. The Australian share market is heavily weighted toward banks and miners, while the S&P 500 index gives investors exposure to a broader set of global businesses.
Vanguard Australian Shares Index ETF (ASX: VAS)
A third ASX ETF for beginners to consider is the Vanguard Australian Shares Index ETF.
It gives investors exposure to the Australian share market by holding a broad portfolio of ASX-listed companies.
Its 300 holdings include Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), and Woolworths Group Ltd (ASX: WOW).
This means the ETF could appeal to investors who want simple exposure to local shares, including companies they already know and use.
For those starting out, the Vanguard Australian Shares Index ETF provides a straightforward way to invest in a broad slice of the local market.
