Taking the plunge with ASX shares is a scary thing to do. Although you might be keen to start investing, actually putting your money where your mouth is requires something of a leap of faith. You might have heard stories from friends or family about untold riches or wealth-destroying black holes in equal measure. The truth (according to this writer) is you should be aiming for neither of the above. The easiest path to success on the share market is a slow one – if you just aim to put the wheels of compound interest in motion, you will likely be rewarded over the long-term.
So here are 2 ASX shares which I think are perfect for this purpose.
Magellan Global Equities Fund (ASX: MGE)
Magellan Global Equities Fund is an active exchange traded fund (ETF) run by Magellan – a successful and popular ASX funds manager. With MGE, you are contracting Magellan to invest your money on your behalf, which they aim to do by investing in 20-40 of the best companies around the world. Some of MGE's current top holdings include companies like Facebook, Visa, Microsoft, Starbucks and Alibaba, all of which are represented in a single MGE share. Of course, Magellan doesn't manage your money out of charity – charging a management fee of 1.35% annually. But with a return of 18.05% per annum over the past three years, this could well be worth it.
Vanguard U.S. Total Market Shares Index ETF (ASX: VTS)
VTS is a passive ETF that tracks the US stock market in its entirety – all 3,591 stocks. This means you get exposure to the biggest US companies like Apple, Amazon and Proctor & Gamble as well as mid-cap and small-cap companies that other indices often exclude – giving you a fairly balanced investment. The US is arguably the most historically successful country to invest in – American companies have dominated the world economy since World War 2 and I don't see this changing anytime soon. VTS is also ultra-cheap – charging a fee of only 0.03% (which is basically free – only $3 per $10,000 invested a year).
Foolish Takeaway
With these two investments, all of the hard work is out of your hands, making them perfect for a starter portfolio. You can get started in investing without ever actually having to pick a stock, so if you just want to dip your toe in the cool investing waters, either of these two investments would be perfect, in my opinion.
