Starting an investing journey can feel overwhelming. With thousands of shares to choose from, where do you begin?
For many beginners, exchange-traded funds (ETFs) are the smartest first step. They provide instant diversification and exposure to world-class stocks — all in a single trade.
If you're looking to get started this year, here are three ASX ETFs that could make an excellent foundation for a beginner's portfolio.
The first ASX ETF to look at is the VanEck Morningstar Wide Moat ETF. It is built around a simple but powerful idea: invest only in companies with durable competitive advantages and fair valuations.
Competitive advantages, or wide moats, include brand power, cost advantages, or high switching costs, and protect businesses from rivals.
The VanEck Morningstar Wide Moat ETF's portfolio includes global leaders like Alphabet (NASDAQ: GOOGL), Boeing (NYSE: BA), and Nike (NYSE: NKE). These are companies that dominate their industries and have pricing power to match. But it also features less obvious names such as Zimmer Biomet (NYSE: ZBH) in medical devices and MarketAxess (NASDAQ: MKTX) in electronic bond trading, giving investors exposure to niche but profitable businesses.
For beginners, this fund provides a ready-made basket of high-quality stocks selected for their ability to compound wealth over time.
The iShares S&P 500 ETF gives investors access to the 500 largest listed companies in the United States, a market that has been one of the best-performing in history.
While big names like Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and NVIDIA (NASDAQ: NVDA) often grab headlines, the fund also holds businesses from sectors like healthcare, consumer staples, and finance.
This includes Johnson & Johnson (NYSE: JNJ), Coca-Cola (NYSE: KO), and JPMorgan Chase (NYSE: JPM). These are companies with global reach and steady earnings power.
This balance of high-growth tech and stable, established leaders could make the iShares S&P 500 ETF an excellent core ETF for long-term investors.
Finally, the Betashares Nasdaq 100 ETF could be a top pick for beginners. It tracks the Nasdaq-100 Index, which is home to many of the world's most innovative and disruptive companies.
Naturally, it is packed with tech giants such as Amazon (NASDAQ: AMZN), Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA).
But it also provides exposure to companies outside the pure technology sphere. For instance, Costco (NASDAQ: COST) in retail, PepsiCo (NASDAQ: PEP) in consumer staples, and Starbucks (NASDAQ: SBUX) in coffee are all part of the index.
This mix means the Betashares Nasdaq 100 ETF isn't just a tech bet — it is also a way to invest in the broader innovation economy.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.