5 ASX ETFs for beginner investors in July

Starting your investment journey? Here's an easy way to begin.

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

Starting an investment portfolio can feel harder than it needs to be.

There are thousands of shares to choose from and plenty of market noise.

The good news for beginners is that ASX exchange traded funds (ETFs) can make the first step simpler.

This is because they offer investors exposure to a basket of shares in one easy trade.

With that in mind, here are five ASX ETFs that I think could be good options for beginner investors in July.

Five happy friends on their phones.

Image source: Getty Images

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The Vanguard MSCI Index International Shares ETF could be a good starting point.

It gives investors exposure to over a thousand companies across developed markets. That means investors are not relying only on Australia's banks, miners, and supermarkets to drive returns.

This fund can work as a global foundation because it spreads money across countries, sectors, currencies, and businesses. A beginner does not need to know which overseas company will be the next big winner to get started.

Vanguard Australian Shares Index ETF (ASX: VAS)

But if you do want some exposure to the local market, the Vanguard Australian Shares Index ETF could be worth considering.

This fund tracks a large basket of Australian shares, including banks, miners, healthcare shares, retailers, property groups, infrastructure businesses, and industrial companies.

Australian shares can also be attractive because of dividends and franking credits. The local market is not as broad as the US or global markets, but it still gives investors exposure to some strong, cash-generating businesses.

Betashares Nasdaq 100 ETF (ASX: NDQ)

For US exposure, the Betashares Nasdaq 100 ETF is worth considering.

It invests in 100 of the largest non-financial companies listed on the Nasdaq exchange.

These are businesses linked to areas such as artificial intelligence, cloud computing, software, chips, digital advertising, streaming, ecommerce, and consumer technology.

This fund will likely be more volatile than a broad market ETF, so beginners should understand that it can fall sharply at times.

But over the long term, it gives exposure to some of the companies shaping how people work, shop, communicate, and use technology. That is likely to be a good thing over the next decade.

Betashares Global Cybersecurity ETF (ASX: HACK)

Another ASX ETF to look at is the Betashares Global Cybersecurity ETF.

It gives investors easy access to companies helping protect networks, data, cloud systems, devices, payments, and digital identities.

Cybersecurity is becoming a larger cost for businesses as more activity moves online. The risks are also growing as companies use more cloud software, remote access, artificial intelligence tools, and connected systems.

This means that it gives beginners exposure to a long-term theme that should remain relevant as the digital economy expands.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

Finally, the VanEck Morningstar Wide Moat ETF could be worth a closer look.

This ASX ETF takes a selective approach to US shares. It looks for companies believed to have sustainable competitive advantages and attractive valuations.

In many respects, it mirrors the approach that legendary investor Warren Buffett used during his highly successful career.

This fund could appeal to beginners who want something more targeted than a standard index fund, but not as narrow as a single-sector ETF.

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF and BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Exchange-Traded Funds (ETFs)

A heart next to a pink piggy bank and coins.
Exchange-Traded Funds (ETFs)

Why I would buy this safe ASX ETF with a 4% yield

There aren't many ETFs that offer a safe 4% yield and monthly payouts.

Read more »

Smiling woman look at her computer screen.
Exchange-Traded Funds (ETFs)

3 Betashares ETFs I'd buy and hold for 10 years

Ten years gives global leaders time to change, quality businesses time to compound, and cyber threats time to become even…

Read more »

ETF written in light blue on a chart.
Exchange-Traded Funds (ETFs)

2 amazing ASX ETFs I'd buy and hold for the next decade

These funds could have an excellent long-term future…

Read more »

Birdseye view of four women racing in wheelchairs on an athletic track.
Exchange-Traded Funds (ETFs)

VAS vs VGS: One Vanguard ETF has clearly pulled ahead

Past performance reveals a clear Vanguard ETF winner.

Read more »

ETF in blue with person's hand in the direction of green and red bars on graph.
Exchange-Traded Funds (ETFs)

5 amazing ASX ETFs to buy with $500

Starting a portfolio or adding to it? Here are five easy ways to invest $500 this month.

Read more »

A young girl looks up and balances a pencil on her nose, while thinking about a decision she has to make.
Exchange-Traded Funds (ETFs)

3 ASX ETFs to buy in FY27 and hold for life 

These are great long term options.

Read more »

Man sits smiling at a computer showing graphs.
Exchange-Traded Funds (ETFs)

IonQ just posted record revenue. What does it mean for the ASX's newest quantum computing ETF?

A record quarter, a brand new fund, and one big catch.

Read more »

a woman stares ahead with a serious expression on her face while half of her face is covered by computer coding, indicative of artificial intelligence and machine learning technology.
Exchange-Traded Funds (ETFs)

Australia's first quantum computing ETF is coming. Here's why you should be excited

An ASX first arrives on the market soon.

Read more »