How to invest when you don't like investing

Let's face it, investing may not be everyone's cup of tea. Here's how you can invest even if you don't enjoy it.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Let's face it, investing may not be for everyone. Although some of us (this writer included) love the thrill of stock picking and trying to beat the market, for many people the idea of looking at numbers and quotes may seem like the worst way to spend your weekend.

But I firmly believe that everyone should get into investing whether they like it or not because it's the best way to compound your hard-earned money and save for retirement.

Luckily, there's a way of investing when you don't like investing. It involves buying ETFs or exchange-traded-funds. ETFs trade on the stock exchange, just like shares. But they represent a list of pre-determined shares that follows a set of rules. Rather than trying to beat the market, the best ETFs for non-investors follow the market.

Take the Vanguard Australian Share ETF (ASX: VAS). This ETF is managed by Vanguard, a US-based company that is famous for its low-cost funds. VAS tracks the ASX 300 (the top 300 public companies on the ASX), which gives you an instantly-diversified exposure to some (if not most) of the best companies in Australia in one stock. The top five companies that you will be investing in with VAS are the Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), Westpac Banking Corp (ASX: WBC), CSL Ltd (ASX: CSL) and Australia and New Zealand Banking Group (ASX: ANZ).

VAS has a very competitive management fee of 0.14%, which means for every $1,000 you have invested, you will pay around $1.40 a year in fees. As a bonus, VAS pays a dividend of 4.25% (before franking), which is a great way to earn passive income.

Another great option is the iShares S&P 500 ETF (ASX: IVV) managed by BlackRock. IVV follows the S&P 500 index, which is composed of the largest 500 public companies in the US. Warren Buffett himself has recommended this index for anyone who doesn't like investing.  IVV is a more diversified index than the ASX 300, with names such as Microsoft, the FAANG stocks and Warren Buffett's own Berkshire Hathaway.

Another huge advantage is its super-low 0.04% management fee, which is about the cheapest you can get when it comes to managed investments. Currency exposure is something to keep in mind with IVV though. This ETF is not hedged, which means that currency fluctuations between the Australian and US dollars will impact the value of your investments.

Foolish Takeaway

Either of these two ETFs is a great way to invest if you don't like investing. Buying a single share in VAS or IVV lets you invest in hundreds of high-quality companies for a very low price. These ETFs are a fantastic and easy way to invest for the long-term and are a great option if stock picking just isn't your thing.

For other shares that you can invest in for the long-term, check out our top 3 ASX blue-chip shares to buy in 2019 below.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

More on Index investing

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop.
Index investing

$1 in every $11 for CBA: Should you still buy the Vanguard Australian Shares ETF (VAS)?

CBA's influence in VAS is at unprecedented levels.

Read more »

Two parents and two children happily eat pizza in their kitchen.
Index investing

The ASX 200 returned 13.4% in FY25. Here's how you could have got a slice

ASX shares handily beat having cash in the bank this financial year.

Read more »

a business person in a suit and tie directs a pointed finger upwards with a graphic of a rising bar graph and an arrow heading upwards in line with the person's finger.
Index investing

BetaShares Nasdaq 100 ETF (NDQ) surges 7%: a reminder not to delay a good buying opportunity

Waiting for a bigger dip could cost you...

Read more »

ETF written on wooden blocks with a magnifying glass.
Index investing

Australian equities ASX ETFs set for record quarter

International turmoil has caused a surge in popularity for domestic equities ASX ETFs this quarter.

Read more »

Cubes placed on a Notebook with the letters "ETF" which stands for "Exchange traded funds".
ETFs

If I could only buy 1 ASX ETF, it would be this one

This ETF simply covers all bases...

Read more »

ETF written on wooden blocks with a magnifying glass.
ETFs

VAS vs VHY: Which is the better Vanguard ETF?

A higher yield isn't always the best choice.

Read more »

A woman looks questioning as she puts a coin into a piggy bank.
Index investing

The Vanguard US Total Market ETF (VTS) is down 8% from its peak. Is it time to buy?

Like many index funds, VTS is looking cheap right now.

Read more »

ETF written on wooden blocks with a magnifying glass.
ETFs

Meet the 2 new Vanguard ETFs that just hit the ASX

Vanguard has something for everyone with these new funds...

Read more »