The BEST ETF's for Young Investors!

 



Investing can feel overwhelming, especially when you're just getting started. With thousands of options out there, how do you choose where to put your hard-earned money? The good news is, you don’t need to pick individual stocks to start building wealth—Exchange-Traded Funds (ETFs) offer a simple, low-cost way to invest in a diversified portfolio with just a few clicks.

If you’re new to the world of ETFs, think of them like a basket of investments—instead of buying one company’s stock, you’re buying a collection of assets (stocks, bonds, or even commodities) all wrapped into a single investment. This makes ETFs a great option for young investors who want instant diversification, lower risk, and long-term growth potential.

As a beginner, you don't want to overcomplicate the process of choosing an ETF. Which is why some financial institutions have designed all-in-one ETF's. These allow for new investors to gain exposure and capture the growth of markets all over the world through one investment. In addition, these ETF's are built to greatly reduce the risk of you losing money when the overall economy is not performing so well.   

So, which ETFs should young Australian investors like ourselves here at The Young Dollar Diary consider? 

**A reminder that this is not personal financial advice, always do you your own research before investing**

DHHF – BetaShares Diversified All Growth ETF

DHHF is designed for investors who want maximum long-term growth and are comfortable with short-term market ups and downs. This is the primary ETF that one of us here at The Young Dollar Diary invests into. 

What’s Inside DHHF?

  • 100% stocks – meaning it’s fully invested in shares, with no bonds or fixed income
  • Globally diversified – includes Australian, US, and international stocks
  • Low cost – with a management fee of 0.19%, it’s cheaper than many other diversified ETFs

Who Should Consider DHHF?

  • Young investors who are in it for the long haul
  • Those who can handle market swings without panic-selling
  • Investors who want high growth potential and don’t need the added stability of bonds

Pros of DHHF

  • Higher long-term returns potential due to 100% stock exposure
  • One ETF solution – well-diversified across global markets
  • Lower fees (0.19%) compared to VDHG

Cons of DHHF

  • More volatile – since there are no bonds, it may experience bigger ups and downs
  • Not ideal for cautious investors who prefer some stability
For more information on this ETF you can visit BetaShare's Website Here 👉 DHHF Info

VDHG – Vanguard Diversified High Growth ETF 

VDHG is also designed for long-term growth, but with a small percentage of bonds to help smooth out volatility.

What’s Inside VDHG?

  • 90% stocks, 10% bonds – mostly growth-focused but with a small defensive cushion
  • Highly diversified – includes Australian, US, and international stocks, plus some bonds
  • Slightly higher cost than DHHF, with a management fee of 0.34%

Who Should Consider VDHG?

  • Investors who want high growth but also some protection during market downturns
  • Those who prefer a balanced approach rather than 100% stocks
  • People who may be uncomfortable with extreme market fluctuations

Pros of VDHG

  • Strong long-term growth with slightly less risk than DHHF
  • Built-in diversification across multiple asset types
  • Less volatile than a 100% stock portfolio

Cons of VDHG

  • Slightly lower returns compared to DHHF due to the bond allocation
  • Higher fees (0.34% vs. DHHF’s 0.19%)
For more information on this ETF you can visit Vanguard's Website Here 👉 VDHG Info

No matter which you choose, the key is to start investing early and stay consistent—your future self will thank you!

What are your thoughts? Have you invested in ETFs before, or are you just getting started? Drop a comment below or DM us on Instagram @theyoungdollardiary—we’d love to hear from you!



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