2 ASX shares perfect for a starter portfolio

Building a starter portfolio of ASX shares can be an intimidating goal, but a highly worthwhile one nonetheless. Choosing the right shares is part of this intimidation. With the hundreds of options to choose from on the ASX alone, it’s easy to second-guess yourself and the research or ideas you might have come across or found yourself. That’s why I think the 2 ASX shares named below are perfect for such a starter portfolio.

Both are ‘hands-off’ investments that invest in different companies on your behalf, with very little active input required. Here they are:

1) iShares S&P 500 ETF (ASX: IVV)

This index that this exchange-traded fund (ETF) tracks is one of the most popular investments in the world. It’s none other than the S&P 500, which follows 500 of the largest companies in America (and the world). It holds everything from eh FAANG stocks like Apple and Amazon.com to Coca-Cola, Microsoft, Bank of America, Ford and Walmart.

Investing legends ranging from Warren Buffett to the late Jack Bogle have recommended the S&P 500 as a perfect investment for anyone unable or unwilling to get into the weeds of investing. Thus, I think IVV is a great stock for any starter portfolio. You get fantastic diversification, access to some of the best companies in the world and a small stream of dividend income, all in one easy share. Another benefit? IVV charges a minuscule management fee of just 0.04% per annum. That means you can have $10,000 invested in this ETF and pay $4 a year for the privilege.

2) Magellan Global Trust (ASX: MGG)

Magellan Global Trust is another great option to consider for a starter portfolio. This investment isn’t an ETF, but a Listed Investment Trust (LIT). That means it doesn’t track an index but instead has a fund manager investing on your behalf. In this case, the fund manager is the reputable Magellan Financial Group Ltd (ASX: MFG), which has steadily built a reputation as one of the best fund managers on the ASX over the past decade.

MGG focuses mostly on shares outside Australia. It aims to hold between 20 and 40 of the world’s best companies, according to its mandate. As of 31 July, these included Alphabet (owner of Google), Microsoft, Starbucks and Tencent Holdings.

As a way to get access to a high-performing and concentrated portfolio of international shares, I think this LIT is a fantastic choice and one perfect for a starter portfolio today.

More reading

• 3 defensive ASX shares I’d buy for safety
• What is the best ETF for Aussie investors?
• Is iShares S&P 500 ETF the best long-term investment?
• 2 ASX shares to buy for growth and income
• Here’s how much money you can actually make from investing in ASX shares

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares), Coca-Cola, Starbucks, and Ford. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares). The Motley Fool Australia has recommended Alphabet (A shares). We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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