If I had $5,000 to invest on the ASX today, this is how I’d split it

If I were lucky enough to have $5,000 sitting in cash right now, I would look to put it straight to work in the share market.

I’d focus on building a simple foundation, with one broad exchange-traded fund (ETF) to anchor the portfolio and one high-quality ASX business that I’d be comfortable holding through ups and downs.

This is how I’d do it today.

I’d start with a core ASX ETF

The first thing I’d buy is the iShares S&P 500 AUD ETF (ASX: IVV).

For me, this is still one of the easiest ways to get instant exposure to the share market without having to make dozens of individual decisions. It gives you tech giants, banks, miners, healthcare, retailers, and infrastructure in one hit, and it does so at a low cost.

I like the idea of using the IVV ETF as a core holding because it removes the pressure to constantly monitor news flow. You’re not betting on one company getting everything right. You’re backing the long-term growth of US businesses as a whole, while also picking up a reliable stream of dividends along the way.

If I were starting today, I’d happily put roughly half my $5,000 here and let it compound quietly in the background.

Then I’d add a high-quality ASX business

With the remaining capital, I’d look for a single, high-quality business that has both income and growth characteristics. One that fits that bill for me is Macquarie Group Ltd (ASX: MQG).

Macquarie isn’t a low-risk stock in the short term, but it is a business with a long track record of adapting to different market environments. Its earnings can fluctuate year to year, but over full cycles, it has consistently created value for investors through asset management, infrastructure, and capital markets.

What I like most is that you’re not just buying a bank. You’re buying a global financial services platform with exposure to energy transition, infrastructure investment, and alternative assets, all areas that continue to attract long-term capital.

On top of that, Macquarie has historically paid attractive dividends when conditions allow, which complements the income coming from an ETF like the iShares S&P 500 AUD ETF.

Why this simple mix appeals to me

This kind of split appeals to me because it balances simplicity with opportunity.

The ETF provides diversification and reduces the risk of getting a single stock call wrong. The individual share adds the potential for higher returns if the business executes well over time. Together, they form a portfolio that doesn’t rely on perfect timing or constant tinkering.

It’s not the only way to invest $5,000, and it certainly wouldn’t be the last investment I’d ever make. But if I were starting today and wanted something sensible, flexible, and built for the long term, this is a combination I’d feel comfortable owning. Sometimes the best portfolios are the ones you can stick with.

The post If I had $5,000 to invest on the ASX today, this is how I’d split it appeared first on The Motley Fool Australia.

More reading

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• How to make $24,000 in passive income a year
• How to build a $50,000 portfolio with ASX 200 shares

Motley Fool contributor Grace Alvino 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 Macquarie Group and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended iShares 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.