If I had to build an ASX share portfolio from scratch today, here’s how I’d do it

Every now and then, I like to reset my thinking.

If I had zero exposure to the market today and had to build an ASX share portfolio from scratch, what would I actually buy? Not based on what I already own. Not based on tax considerations. Just a clean slate and a long-term mindset.

Here’s how I’d approach it today.

Start with a core ETF foundation

I wouldn’t begin with individual stock picking if starting fresh.

I’d start with a broad global exchange-traded fund (ETF) like the Vanguard MSCI Index International Shares ETF (ASX: VGS).

To me, this is the simplest way to instantly gain exposure to more than 1,000 stocks across developed markets. It gives me access to global leaders in technology, healthcare, consumer brands, and industrials.

I’d likely allocate around 40% of the portfolio here.

Then I’d add an Australian option such as the Vanguard Australian Shares Index ETF (ASX: VAS).

That provides exposure to local banks, miners, healthcare companies, and retailers, plus the added benefit of franked dividends. I’d probably allocate another 30% here.

At this point, 70% of the portfolio is diversified, low-cost, and built for the long term.

Add high-quality ASX growth shares

With the core in place, I’d then layer in individual ASX growth stocks that I believe can outperform over time.

One would be Hub24 Ltd (ASX: HUB). I like the structural shift toward independent advice platforms and the operating leverage as funds under administration grow.

Another would be ResMed Inc. (ASX: RMD). Healthcare demand is long-term and global, and I think its digital ecosystem adds stickiness beyond devices.

And I’d likely include WiseTech Global Ltd (ASX: WTC). Despite recent volatility, I still believe its global logistics platform has a long growth runway.

These wouldn’t dominate the portfolio. But collectively, they would add growth potential beyond the index.

I wouldn’t ignore income

Even in a growth-focused portfolio, I’d want some dependable income.

A name like Transurban Group (ASX: TCL) would make sense to me. Long-dated infrastructure assets and inflation-linked tolls provide some stability.

That income could either be reinvested for compounding or used as dry powder during market pullbacks.

Foolish takeaway

If I had to start again today, I’d build a diversified ETF core and then layer in a handful of high-quality ASX growth stocks.

It may not be the most exciting way to invest. But it could be the most effective.

The post If I had to build an ASX share portfolio from scratch today, here’s how I’d do it appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Hub24, Transurban Group, and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24, ResMed, Transurban Group, and WiseTech Global. The Motley Fool Australia has positions in and has recommended ResMed, Transurban Group, and WiseTech Global. The Motley Fool Australia has recommended Hub24 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.