New to ASX ETFs? These 4 products could be a good start

Here are four ETFs which could make the basis of a new portfolio, giving investors broad coverage across many business sectors.

If you're new to investing, and to be honest even if you're not, exchange traded funds (ETFs) are an excellent way to invest the way you want to, without the risk and effort involved in picking individual stocks. ETFs invest in many ways: by theme, commodity, sector, and across entire share market indices. There are literally hundreds of ETFs on offer, but for a start, let's look at four which provide broad diversification rather than focusing in on any one theme. As the name suggests, this ETF is aiming for high growth, which, as Betashares say on their website, "may suit investors with a high tolerance for risk''. While other ETFs might focus in on one share index, DHHF casts its net broadly. The Fund is invested in a blend of large, mid and small cap equities from Australia, global developed and emerging markets, offering investors exposure to an 'all-cap, all-world' share portfolio with the potential for high growth over the long term. The ETF provides exposure to approximately 8,000 equity securities listed on over 60 global exchanges, in one ASX trade. DHHF ETF is invested 37% in Australian equities and 63% international. It has delivered a return of 12.9% over the past year and 10.69% per year over five years. This ETF invests across Australian and global equities, but does so using gearing to deliver hopefully stronger returns. The fund's gearing ratio, "being the total amount borrowed expressed as a percentage of the total assets of the fund", generally varies between 30% and 40%. Gearing magnifies gains and losses and may not be a suitable strategy for all investors. Investors in geared strategies should be willing to accept higher levels of investment volatility and potentially large moves (both up and down) in the value of their investment. Geared investments involve significantly higher risk than non-geared investments. The ETF provides exposure to more than 4000 equities. It has delivered a return of 20.74% over the past year and 21.41% per year since inception in April 2024. If index trackers are more your thing, here are two which fit together nicely in terms of diversification. Vanguard says VAS is Australia's largest ETF, giving investors exposure to the top 300 companies listed on the ASX. It has a very low management fee of 0.07%, and investors can start off with as little as $200 if they invest through Vanguard itself. The ETF provides low-cost, broadly diversified exposure to Australian companies and property trusts listed on the Australian Securities Exchange. It also offers potential long-term capital growth along with dividend income and franking credits. Unsurprisingly, VAS' top five investments are the big four banks and BHP Group Ltd ( ASX: BHP ). Vanguard says $10,000 invested five years ago would now be worth $14,639. Finally, VGS ETF has a much wider remit than VAS, with exposure to about 1300 companies from developed countries, notably excluding Australia so it doesn't double up with VAS. Investing internationally offers greater access to sectors such as technology and health care that aren't as well represented in the Australian share market. The ETF provides exposure to many of the world's largest companies listed in major developed countries. It offers low-cost access to a broadly diversified range of securities that allows investors to participate in the long-term growth potential of international economies outside Australia. The ETF's largest holdings are in US tech companies including Nvidia , Apple , and Microsoft . Vanguard said $10,000 invested five years ago would now be worth $19,057. The management fee for VGS ETF is 0.18%. The post New to ASX ETFs? These 4 products could be a good start appeared first on The Motley Fool Australia . Before you buy BetaShares Diversified All Growth ETF shares, consider this: Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and BetaShares Diversified All Growth ETF wasn't one of them. The online investing service he's run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that may be better buys… Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy . This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.