Happy New Year!
For many, the start of January marks the dawn of a new journey. Whether it's improving fitness, boosting career prospects, or building wealth, a New Year's resolution can be a powerful motivator.
That said, studies have shown only around 9% of people actually stick to the personal commitments they make at the start of a new year.
Finder analyst Saranga Sudarshan says setting unrealistic goals can be "a recipe for failure" and that achieving success requires being specific and consistent while taking things "one step at a time".
If, as 83% of Aussies did at the start of last year, you've resolved to get on top of your finances and start building wealth, you're already on the right track!
Even starting small — reducing spending, paying down debt, saving more, and slowly growing your investments — can deliver big results over time.
With time, consistency, and the magic of compounding, you can transform your financial future.
To help set your wealth-building resolutions, we asked our Foolish writers for their top ASX stock picks for new investors in 2025.
Here is what the team came up with:
6 awesome ASX shares for newbie investors in 2025 (smallest to largest)
- Objective Corporation Ltd (ASX: OCL), $1.53 billion
- Betashares Nasdaq 100 ETF (ASX: NDQ), $5.91 billion
- iShares Core S&P/ASX 200 ETF (ASX: IOZ), $6.31 billion
- VanEck MSCI International Quality ETF (ASX: QUAL), $7.08 billion
- iShares S&P 500 ETF (ASX: IVV), $10.60 billion
- Xero Ltd (ASX: XRO), $25.74 billion
(Market capitalisations as of market close 3 January 2025)
Why our writers think these ASX stocks make great first buys
Objective Corporation Ltd
What it does: Objective Corp provides software that simplifies building assessments, information management, and regulatory compliance. The company's 2,000-plus customers are dispersed across more than 60 countries worldwide and range from ANZ Group Holdings to the Scottish Government.
By Mitchell Lawler: As many of my colleagues note below, ASX exchange-traded funds (ETFs) provide an excellent starting point for a first-time investment. However, I believe there is one striking limitation to ETFs for anyone who wants to immerse themselves in the rewarding world of investing: Learning the essence of a good business.
Part of being a good investor is understanding the qualities of good business. As Warren Buffett — widely considered the 'greatest of all time' investor — once said, "I am a better investor because I am a businessman, and a better businessman because I am an investor."
That's why I think Objective Corp would make an ideal beginner investment. It's not only a fundamentally good business but also owned and operated by Tony Walls. In my opinion, Walls' long-term mindset provides an indispensable lesson for new investors hoping to master the art of investing.
Motley Fool contributor Mitchell Lawler does not own shares of Objective Corporation Ltd.
Betashares Nasdaq 100 ETF
What it does: This ASX ETF tracks the performance of the Nasdaq-100 (NASDAQ: NDX), which holds 100 of the largest non-financial tech stocks. Annual management fees run at 0.48%.
By Bernd Struben: When it comes to ASX shares for beginners, I think ETFs are a great starting point. You can buy and sell shares in the Betashares Nasdaq 100 ETF just like any other ASX stock.
With NDQ, you gain exposure to some of the world's leading tech companies, garnering broad diversity with a single ASX investment.
Looking back at 2024, NDQ had a terrific run, with the ETF gaining a whopping 39%. That's largely in line with the gains posted by the Nasdaq-100, as intended.
The ETF's top holdings include powerhouse companies like Apple, Nvidia, Microsoft, Amazon and Tesla.
All of these companies outperformed the ASX 200 in 2024, with Nvidia's 175% share price gains leading the charge.
While what happens in 2025 remains to be seen, I believe the long-term growth outlook for leading US tech stocks remains strong amid the ongoing artificial intelligence (AI) revolution and global energy transition.
Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned.
iShares Core S&P/ASX 200 ETF
What it does: The iShares Core S&P/ASX 200 ETF is an ASX index fund that tracks the performance of the S&P/ASX 200 Index (ASX: XJO), a basket of Australia's largest 200 stocks.
By Zach Bristow: For those looking to invest in ASX shares, the first question is usually where to start. A good place is the ASX 200 index. But you can't buy an index. It's not an investment.
Here's where the IOZ ETF comes in. It tracks the ASX 200 index's performance.
This allows you to own a portfolio of Australia's largest 200 companies by market value in a single investment.
Many of these are companies with dominant market positions, such as the big four banks, mining behemoths BHP Group Ltd, Rio Tinto Ltd and Fortescue Ltd, and healthcare giants like CSL Ltd and Cochlear Ltd, to name a few.
The IOZ ETF has climbed almost 10% in the past year, paying dividends of $1.14 per share in that time.
Looking ahead, Morgan Stanley projects overall economic growth to "improve gradually" next year in Australia.
Meanwhile, accounting firm KPMG expects 2% economic growth in 2025, and the Australian Government's Trade and Investment Commission says Australia is projected to "continue to outperform our peers over the next 5 years to 2029".
These forecasts suggest a positive future for ASX shares, meaning the IOZ ETF should be well-positioned to benefit in 2025.
Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned.
VanEck MSCI International Quality ETF
What it does: This ASX ETF is focused on owning the highest-quality companies from across global share markets.
By Tristan Harrison: I think an ASX ETF is a great place to start investing due to the instant diversification it can deliver with just a single investment.
But which ETF is the right one to go with? How about one in which every single portfolio holding is 'high quality'?
To be chosen for the QUAL ETF portfolio, these international businesses must rank well on three key fundamentals: A high return on equity (ROE), earnings stability, and low financial leverage.
This means the companies make high profits for the amount of shareholder money retained within the business, the profit doesn't tend to fluctuate dramatically, and they have low debt on the balance sheet.
When you put those factors together, they generally result in great businesses. There's a good chance these types of companies will perform over the long term thanks to their ability to reinvest newly generated profit for a high return (thanks to the high ROE).
Past performance is not a guarantee of future returns, but over the past decade, the QUAL ETF has returned an average of 15.7% per year. That return was more than 2% stronger per year than the MSCI World ex-Australia Index, which measures the global share market.
Motley Fool contributor Tristan Harrison does not own units of the VanEck MSCI International Quality ETF.
iShares S&P 500 ETF
What it does: The iShares S&P 500 ETF is an index fund that gives ASX investors exposure to the largest 500 companies listed on the American stock markets.
By Sebastian Bowen: Normally, I'm a big fan of ASX index funds for beginner investors. However, I think that this America-centric index fund is a better pick for a beginner investor in the current environment.
For one, the largest US stocks in this index fund are still growing at a healthy clip, unlike some of the ASX's biggest companies right now.
Zooming out, the iShares S&P 500 ETF gives beginners exposure to what are, arguably, the best businesses on the planet. This index fund includes famous American names like Coca-Cola, American Express, Ford, Mastercard and Netflix.
However, its largest holdings — the likes of Apple, Amazon, Nvidia and Microsoft — are truly globally dominant and, in my view, a great place for a beginner investor to start.
If you're looking to kick off the new year with your first stock market investment, you could certainly do a lot worse than this all-star ETF.
Motley Fool contributor Sebastian Bowen owns shares of Coca-Cola, American Express, Mastercard, Netflix, Amazon, and Microsoft.
Xero Ltd
What it does: Xero is a global small business platform provider. Its smart tools help small businesses and their advisors manage core accounting functions like tax and bank reconciliation, payroll, and payments.
By James Mickleboro: I think Xero would be a great option for beginner investors.
It is always advisable to invest in quality companies. So, as arguably one of the highest quality companies on the Australian share market, Xero certainly ticks this box.
In addition, the company has a huge growth runway that appears supportive of decades of growth. For example, in November, Xero had approximately 4.2 million subscribers using its cloud accounting software platform. This compares to its estimated total addressable market (TAM) of 100 million+ small-to-medium-sized businesses across the globe.
I'm not alone in this view. Last month, Blackwattle Investment Partners said its analysts "view XRO as one of the highest quality companies on the ASX with a significant long-term, compounding growth profile." Goldman Sachs also agrees. It recently gave Xero shares a buy rating and a $201.00 price target.
Motley Fool contributor James Mickleboro owns shares of Xero Ltd.
