Beginners may be wanting to know what ASX shares could be good to start with. I’ve got a couple of ideas.
There are loads of choices to pick from. Some investors like blue chips such as Telstra Corporation Ltd (ASX: TLS). But I believe there are other options out there that offer more long-term growth potential.
Technology ASX shares could be an interesting place to start, such as Temple & Webster Group Ltd (ASX: TPW) or Pushpay Holdings Ltd (ASX: PPH).
But I believe the best place to start is by looking for diversified potential investments. If one were to start investing with a business, the entire portfolio would be in just that one business. Whereas an exchange-traded fund (ETF) or listed investment company (LIC) could be a good place to start with a portfolio of investments.
Future Generation Global Investment Co Ltd (ASX: FGG)
Future Generation Global is a LIC that invests in the funds of fund managers that look at global shares. Those fund managers work for free (no management fees or performance fees) so that Future Generation Global can donate 1% of its net assets each year to youth mental health charities each year. That’s a great initiative and also means that shareholders get higher net returns (because managers would typically charge more than 1% per year, including performance fees).
Due to the fact it’s a portfolio of portfolios, the underlying diversification of the ASX share is very strong. However, the wide range of investments means the returns are going to be balanced against each other. Over the last five years, the Future Generation Global portfolio has returned an average of 14.5% per year.
Some of the fund managers that it’s invested with includes Munro Partners, Cooper Investors and Marsico.
BetaShares Global Sustainability Leaders ETF (ASX: ETHI)
This ASX share ticks many of the boxes that a beginner investor want to see.
As the name suggests it’s about a portfolio of global businesses from across the world. Some of the holdings includes Nvidia, Apple, Visa, Home Depot, PayPal, Mastercard, ASML and Adobe. This is a high-quality group of names.
But the main thing that makes this ETF stand out is that it combines positive climate leadership screenings with a broad set of ESG (environmental, social and governance) criteria, offering investors a true-to-label ethical investment solution.
Some of the things that it excludes is fossil fuel producers, as well as companies significantly engaged in armaments, gambling, alcohol or junk foods. It also excludes businesses with human rights or supply chain issues. ETHI ETF also excludes companies that lack gender diversity on the board.
I think the annual management fee is very reasonable in my opinion of 0.59%.
The portfolio has performed well – since inception in January 2017, it has produced net returns of 23.9% per annum. However, past performance shouldn’t be used as a reliable indicator of future returns.
