Where to invest $3,000 in ASX shares right now

If you have some spare cash to invest in ASX shares, here are two solid options to consider: Carsales.Com Ltd (ASX: CAR) and one other.

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If you have some spare cash to invest in ASX shares right now, I believe Vanguard MSCI Index International Shares ETF (ASX: VGS) and Carsales.Com Ltd (ASX: CAR) are great options.

Here's why they are both on my buy list right now:

Vanguard MSCI Index International Shares ETF – $2,000

There is no doubt that ASX shares offer investors a wide range of quality companies to invest in. However, the Aussie share market only provides access to around 2% of listed global investment opportunities.

This is why the purchase of some quality exchange-traded funds (ETFs) can be a great addition to your ASX share portfolio. ETFs give you easy access to a basket of top quality global companies.

By comparison, investing in individually listed global shares can be a complicated process. You generally need to find a broker who deals in international shares and open up a separate share trading account. Also, trying to pick winners out of the vast array of investment options can be overwhelming.

I am particularly attracted to the Vanguard MSCI Index International Shares ETF because I believe it complements a portfolio of mostly ASX shares. This ETF seeks to track the return of the MSCI World ex-Australia Index. This includes over 1,500 of the world's largest companies in a range of major developed countries. Its top five holdings are the tech giants Apple, Microsoft, Amazon, Alphabet (Google) and Facebook. All of these tech companies have seen share price returns well above the average returns of the  S&P/ASX 200 Index (ASX: XJO) over the past 3 years.

Carsales – $1,000

Carsales is a locally-listed, ASX share, but also offers excellent exposure to a growing number of global markets, including Korea and Brazil. Carsales has had a commanding and entrenched position in the Australian automotive classifieds market for over a decade. This is reflected in its strong share price growth of nearly 300% during the past 10 years.

While growth has slowed down in its local market, it still provides Carsales with a solid revenue base, which I believe is highly sustainable over the medium to long term. A growing overseas presence will also boost the company's overall revenue growth in years to come.

Carsales' adjusted total revenue is predicted to be flat for FY 2020. However, if achieved, I think this will be a commendable result in what are highly challenging local market conditions. Once pandemic restrictions eventually ease, I am confident that growth is likely to return to more normal levels for Carsales.

Foolish takeaway

Vanguard MSCI Index International Shares ETF and Carsales are two very different types of investments. But I believe both would make excellent additions to your ASX share portfolio right now. In my view, these ASX shares are well positioned for above average shareholder returns over the medium term.

Motley Fool contributor Phil Harpur owns shares of carsales.com Limited. The Motley Fool Australia has recommended carsales.com Limited and Vanguard MSCI Index International Shares ETF. 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.

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