3 excellent ETFs for beginner investors to buy

ETF in written in different colours with different colour arrows pointing to it.

ETF in written in different colours with different colour arrows pointing to it.

If you’re just starting out with investing and aren’t sure which shares to buy, then you could consider exchange traded funds (ETFs).

ETFs are an easy way to invest because they allow you to buy large groups of shares through a single investment. This means that you’re not putting all your eggs in one basket, so to speak.

But which ETFs would be good for beginners? Three to consider are listed below. Here’s what you need to know about these top ETFs:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The first ETF that could be a good option for beginners is the BetaShares NASDAQ 100 ETF. This ETF provides investors with access to 100 of the largest non-financial companies listed on the famous exchange. This means you’ll be buying household names such as Google parent Alphabet, Amazon, Apple, Meta (Facebook), Microsoft, Netflix, Nvidia, Starbucks, and Tesla. BetaShares notes that the ETF’s strong focus on technology provides investors with diversified exposure to a high-growth potential sector that is under-represented in the Australian share market.

iShares S&P 500 ETF (ASX: IVV)

Another ETF for beginners to look at is the the iShares S&P 500 ETF. This ETF holds all of the shares included in the BetaShares NASDAQ 100 ETF and a further 400. All in all, this gives investors easy access to the top 500 listed companies on Wall Street. The fund manager, iShares, believes this ETF is a good way for investors to diversify internationally and provides long-term growth opportunities for a portfolio. Among the companies included in the fund are Amazon, Apple, Disney, Facebook, JP Morgan, Johnson & Johnson, Microsoft, Tesla, and Visa.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Finally, if you’re a beginner aspiring to be like Warren Buffett, then you may want to look at the VanEck Vectors Morningstar Wide Moat ETF. This Warren Buffett inspired ETF gives investors access to a group of companies that have sustainable competitive advantages or moats. Moats are something Buffett looks for when finding investments. The fund is currently invested across ~50 attractively priced shares boasting these qualities. This includes the likes of Adobe, Alphabet, Boeing, Etsy, Kellogg Co, Walt Disney, and Warren Buffet’s own Berkshire Hathaway.

The post 3 excellent ETFs for beginner investors to buy appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF and iShares Trust – iShares Core S&P 500 ETF. 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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