So you're ready to invest your first $1,000 in the share market?
Congratulations!
One of the hardest things about investing is actually committing to the whole process.
For many people, shares and investing are just shoved into the 'too hard' or 'I'll worry about that when I'm old' baskets.
But the earlier you take that first footstep of this thousand-mile journey, the better! Compound interest required 3 things: consistency, a decent rate of return and time – and the latter is often the biggest factor in how much you can eventually expect to make.
So, for your first grand in ASX shares, here are 2 easy choices.
Vanguard Australian Shares Index ETF (ASX: VAS)
With an index fund like VAS, you are buying the largest 300 companies on the markets rather than an individual stock pick. This means that all of the hard work and stresses of professional investing pass you by – you can be safe in the knowledge that you own (pretty much) everything. That's everything from blue-chip shares like Commonwealth Bank of Australia (ASX: CBA) and Coles Group Ltd (ASX: COL) to growth stocks like Afterpay Ltd (ASX: APT) and Kogan.com Ltd (ASX: KGN).
VAS also pays a reasonable dividend, which you can reinvest for a greater compounding effect if you so wish. All in all, I think an index fund like VAS is a great place for your fist $1,000.
BetaShares NASDAQ 100 ETF (ASX: NDQ)
This is another index fund, but actually invests in US shares rather than companies on our own soil. Instead of the biggest 300 Aussie companies, with NDQ you are getting 100 of the largest companies on the US NASDAQ index, which houses most of the 'tech' stocks in America. You will probably recognise most (if not all) of the top stock in this fund – with names like Apple, Microsoft, Amazon, Facebook, Alphabet (Google), Intel and even PepsiCo having heavy allocations here.
These kinds of companies are going to have a major role in the global economy for at least the next decade (that's my outlandish prediction anyway) – so I think this can be a great first investment, especially if you're a young investor. It's an easy way to get exposure to some of the best and most disruptive companies on the planet.
Foolish takeaway
If you have your fist $1,000 ready to go, I think these 2 ASX shares are fantastic choices. There is reduced risk through the safety of numbers here, and I think both indexes will continue to appreciate at a healthy rate over time.
