Starting an investment portfolio can feel difficult. There are thousands of shares to choose from and plenty of market noise.

For beginners, ASX exchange traded funds (ETFs) can make things much easier.

They allow investors to own a collection of stocks through one investment, which means you do not have to identify the next great pick yourself.

So, which ASX ETFs could be top picks for someone starting out?

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF could be a great place to start for beginners.

It tracks the S&P 500 Index, giving investors a slice of the 500 largest companies listed in the United States.

Many of these companies have become global businesses. They sell phones, software, medicines, financial services, advertising, consumer products, and industrial equipment around the world.

This means an Australian investor can buy this fund and immediately own a slice of many businesses they probably interact with every day.

The S&P 500 also changes over time. Companies that grow can enter the index, while those that lose relevance can eventually leave.

That makes the iShares S&P 500 ETF a simple way to back corporate America over the long term without having to predict which individual companies will still be leading the market in 10 or 20 years.

Vanguard Australian Shares Index ETF (ASX: VAS)

For investors wanting to keep some money closer to home, the Vanguard Australian Shares Index ETF could be worth considering.

This fund tracks the S&P/ASX 300 Index (ASX: XKO) and therefore owns a large collection of Australian companies.

That includes banks like Westpac Banking Corp (ASX: WBC), miners like BHP Group Ltd (ASX: BHP), healthcare companies like CSL Ltd (ASX: CSL), retailers like Woolworths Group Ltd (ASX: WOW).

One benefit for beginners is familiarity. Many of the businesses inside the fund are companies Australians see, use, or hear about regularly.

The local market is also known for paying dividends, with many companies distributing a meaningful portion of their profits to shareholders.

As a result, the Vanguard Australian Shares Index ETF offers a straightforward way to participate in the performance and income generated by the Australian share market.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ASX ETF for beginners to look at is the Vanguard MSCI Index International Shares ETF.

This fund spreads investments across developed markets around the world.

I think this is valuable for Australians. Our share market represents only a small portion of the global investment universe. The Vanguard MSCI Index International Shares ETF opens the door to businesses and industries that are either underrepresented or largely absent from the ASX.

With more than 1,000 stocks inside the fund, beginners do not need to decide whether the next great opportunity will come from America, Europe, or somewhere else. They can own a piece of all of them.

The post Which ASX ETFs could be top picks for beginner investors? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in CSL and Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and iShares S&P 500 ETF. The Motley Fool Australia has recommended BHP Group, CSL, Vanguard Msci Index International Shares ETF, and 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.

There are a number of ways for investors to gain exposure to the artificial intelligence (AI) boom on the ASX.

Popular options include Megaport Ltd (ASX: MP1) and NextDC Ltd (ASX: NXT), which provide the infrastructure behind the megatrend.

Another ASX AI stock that could be worth a look is in this article. Let’s see why Bell Potter is recommending it to clients.

Which ASX AI stock?

The ASX stock that Bell Potter is positive on is Artrya Ltd (ASX: AYA).

It is a Perth-based medical technology company using AI powered image-analysis software to improve the detection and management of coronary artery disease (CAD). 

Bell Potter notes that CAD is driven by soft plaque that builds up silently in the arteries and ruptures without warning, causing a fatal heart attack. 

It points out that traditional cardiac diagnostics often fail to detect this hidden risk, and in over 50% of the population, the first sign of the disease is sudden death. 

The condition affects around 126 million people globally, which demonstrates the size of the opportunity for the company and its technology.

The ASX AI stock’s cloud-based software, Salix, uses proprietary AI algorithms to interpret data from Coronary Computed Tomography Angiography (CCTA) scans, to deliver results in a single point-of-care solution.

Big potential returns

This morning, following a review of its FY 2026 results, Bell Potter has retained its buy rating on the ASX AI stock with a trimmed price target of $6.00 (from $6.75).

Based on its current share price, this implies potential upside of approximately 50%.

Commenting on its buy recommendation, the broker said:

While some aspects of AYA’s commercialisation are occurring at a slower than expected pace, it is well advanced. AYA has two modules out of its three approved, and all three Salix modules attract top shelf category 1 CPT reimbursement rates that enable high margin generation. AYA has three customers and six study partners it aims to convert to commercial customers in time. All of this now contrasts favourably with EIQ that investors had been comparing AYA with. 

While submission for the FFRCT module has taken longer than expected, now more than ever, it is imperative that AYA take the time to produce a high-quality submission with a high degree of confidence in achieving an FDA approval. Subsequent to our earnings estimate changes, we reduce our TP by c.11% to $6.00/sh and retain our BUY rating.

The post Why this ASX AI stock could rise 50% appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Megaport and Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Commonwealth Bank of Australia (ASX: CBA) shares have long been a favourite with passive income investors.

And it is easy to see why. The banking giant generates billions of dollars in profit each year from mortgages, business lending, credit cards, deposits, and other financial services.

But rather than keeping all those profits inside the business, CBA returns a large portion to shareholders through dividends.

Better still, those dividends are fully franked, which can make them particularly attractive to Australian investors.

So, how much would you need to invest in CBA shares to generate $10,000 of passive income each year?

Let’s take a look.

CBA’s dividend outlook

The market is currently expecting the company to deliver earnings per share of $6.67 in FY 2027, followed by $6.86 in FY 2028.

These earnings are expected to support fully franked dividends of $5.15 per share in FY 2027 and $5.30 per share in FY 2028.

At the current CBA share price of $155.25. this represents dividend yields of approximately 3.3% and 3.4%, respectively.

Those are admittedly not the biggest yields available on the Australian share market, but they are no doubt attractive in the current environment.

How many CBA shares would I need?

Let’s use the FY 2027 dividend forecast of $5.15 per share.

To receive $10,000 in cash dividends, an investor would need approximately 1,942 CBA shares.

At the current share price of $155.25, buying that many CBA shares would set you back approximately $301,496.

The fully franked nature of those dividends is worth remembering as well. Assuming an investor can make full use of the franking credits, $10,000 of cash dividends would come with approximately $4,286 of franking credits.

That would give the income a grossed-up value of roughly $14,286 before personal tax. Not bad!

What about in FY 2028?

The numbers improve slightly if CBA’s dividend grows as expected.

Using the forecast FY 2028 dividend of $5.30 per share, an investor would need around 1,887 shares to generate $10,000 of annual cash income.

That would require an investment of approximately $292,957.

Of course, CBA’s share price will almost certainly be different by then and dividends are never guaranteed. But based on current forecasts, the numbers give us a good indication of the scale required.

All in all, for someone wanting $10,000 a year in passive income from CBA shares alone, they will need roughly $300,000 invested at current levels.

The post How much do I need to invest in CBA shares for $10,000 of passive income? 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 no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.