Here’s why these funds could be great options for investors that are just starting their journey with shares.
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For many beginners, the idea of investing in the share market can feel overwhelming.
The prospect of picking individual stocks often brings uncertainty and fear of making the wrong choice. This can discourage people from taking the first step toward building wealth through investing.
Fortunately, ASX exchange-traded funds (ETFs) provide an ideal solution for new investors.
They eliminate the need to hand-pick individual stocks, offering a simple way to invest in a broad basket of assets. Whether it’s a specific index, sector, or thematic, ASX ETFs allow beginners to diversify their investments effortlessly.
Overall, they are an accessible and effective entry point for anyone looking to start their investment journey.
But which ASX ETFs could be top options for beginners in 2025? Let’s take a look at three that could be worth considering:
BetaShares NASDAQ 100 ETF (ASX: NDQ)
One of the best ASX ETFs out there for beginners could be the BetaShares NASDAQ 100 ETF. Investing in quality is always a great idea for investors and this ETF is teeming with it. This hugely popular fund allows investors to buy a slice of the 100 largest (non-financial) companies on the famous Nasdaq index. This includes well-known companies such as AI chip manufacturer Nvidia (NASDAQ: NVDA), iPhone maker Apple (NASDAQ: AAPL), and electric vehicle giant Tesla (NASDAQ: TSLA).
Betashares Global Quality Leaders ETF (ASX: QLTY)
A second ASX ETF that could be a quality option for beginners is the Betashares Global Quality Leaders ETF. It was recently recommended by Betashares chief economist and it isn’t hard to see why. This fund is home to 150 of the highest quality companies from around the globe. These are companies with high return on equity and profitability, low leverage, and earnings stability. Among its largest holdings are companies such as Visa (NYSE: V), Costco (NASDAQ: COST), and Netflix (NASDAQ: NFLX).
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
Finally, if you want to follow in the footsteps of Warren Buffett, which is also never a bad idea, then the VanEck Vectors Morningstar Wide Moat ETF could be an easy way for beginners to do this. This ASX ETF is focused on investing in the type of companies that the Oracle of Omaha would normally buy for his Berkshire Hathaway (NYSE: BRK.B) business. These are companies with fair valuations, strong business models, and sustainable long-term competitive advantages. Given how Buffett has smashed the market for multiple decades, it is fair to say that this focus has its merits.
Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Berkshire Hathaway, BetaShares Nasdaq 100 ETF, Costco Wholesale, Netflix, Nvidia, Tesla, and Visa. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, Berkshire Hathaway, Netflix, Nvidia, VanEck Morningstar Wide Moat ETF, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.