When you first start investing, it can be intimidating to pick stocks.
But don't let that put you off starting your investment journey, especially when there are exchange traded funds (ETFs) out there to make your life easier.
ETFs allow investors to buy large groups of shares through a single investment. This means that not only can you build a diverse portfolio effortlessly, but you don't have to worry about dedicating time to researching individual shares.
But which ASX ETFs could be top options for beginner investors right now? Let's take a look at three that could be worth considering:
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Betashares Global Quality Leaders ETF (ASX: QLTY)
The Betashares Global Quality Leaders ETF could be a great option for beginner investors.
That's because of its focus on investing in the highest quality companies that the world has to offer, which is always a good strategy.
There are approximately 150 companies included in the fund. These companies rank highly on four key metrics: return on equity, debt-to-capital, cash flow generation, and earnings stability. Betashares' chief economist, David Bassanese, recommended this ETF last year.
iShares S&P 500 ETF (ASX: IVV)
Another ASX ETF that could be a top option for beginners is iShares S&P 500 ETF.
This fund gives investors easy access to the 500 largest companies on Wall Street. This means that you will be buying a slice of tech giants such as Apple, Nvidia, and Tesla, as well as range of companies from other sectors. This includes McDonalds, Walmart, and Nike.
The fund manager, iShares, notes that investors can "use [the ETF] to diversify internationally and seek long-term growth opportunities in your portfolio."
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
A third ASX ETF that could be a great option for beginner investors is the VanEck Vectors Morningstar Wide Moat ETF.
This fund is focused on buying companies that are judged to have sustainable competitive advantages (aka wide moats) and fair valuations.
Legendary investors Warren Buffett looks for these qualities when making investments for his Berkshire Hathaway (NYSE: BRK.B) business. And given how he has consistently beaten the market since all the way back in 1965, it seems apparent that his investment style works.
The companies included in the fund will change periodically to reflect valuations and changes to competitive advantages. At presents, holdings include tobacco leader Altria Group Inc (NYSE: MO), food company Campbell Soup (NYSE: CPB), and beauty products company Estee Lauder (NYSE: EL).
