One of the easiest ways to invest in ASX shares is just to regularly invest.
Market timing can be very difficult, and it may not make that much difference over the long-term. You don't know when/if shares are going to drop back to a valuation that looks too good to miss. Even when there is a large fall – like March this year – it may be hard to commit to investing when things look shaky.
Unless you're going to commit a lot of time to investing in shares, the best strategy could be to try to make the timing of your investing as automated as possible.
But there aren't that many shares that you can easily commit to investing in every month because valuations can change so much. I like the idea of going for diversified options so that the risk from any particular business is lower.
Here are two ASX shares that could be worth buying with $1,000 every single month:
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Share 1: Betashares Global Sustainability Leaders ETF (ASX: ETHI)
This is an exchange-traded fund (ETF) which aims to give investors exposure to businesses which rank well on ethical considerations.
There are a number of eligibility screens that companies have to pass to make it into this ETF's holdings.
It removes companies which have any direct involvement in the fossil fuel industry as well as ones with material direct exposure and those with a particularly high use of fossil fuels. Businesses have to rank well when it comes to climate factors.
It also excludes a number of other activities that aren't deemed to be responsible such as gambling companies, tobacco, armaments, alcohol, junk foods and pornography.
This ETF is invested in 200 global shares, they aren't ASX shares. Its top 10 holdings are full of businesses that are quality names like: Apple, Nvidia, Mastercard, Home Depot, Visa, Adobe, Paypal, Tesla, Toyota and Netflix. Thankfully, a large portion of the ETF – more than a third – is invested in tech shares. I think that's good because technology is where the most earnings growth is coming from these days.
The ASX share has performed strongly since inception in January 2017, with net returns per annum of 20.3%. These shares have recovered strongly since the COVID-19 crash.
I think this ETF offers a lot of attractive attributes. I'd be willing to regularly buy this ETF because of how many shares it's invested in. It offers good diversification, and its businesses are seemingly high quality.
Share 2: MFF Capital Investments Ltd (ASX: MFF)
MFF Capital is a listed investment company (LIC). It's operated by Magellan Financial Group Ltd (ASX: MFG) co-founder Chris Mackay. I think he has proven to be one of the best investors in Australia.
Over the past decade MFF Capital has delivered average total shareholder returns per annum of 17.8% per annum. Past performance isn't a guarantee of future performance, but I think it shows the level of returns that MFF Capital can produce.
The ASX share has been invested in high-quality businesses like Visa and Mastercard for years. They continue to be great investments and represent around a third of the MFF Capital portfolio. It currently has a large cash position which can be used for protection against a near-term market downturn and more importantly the cash can be used to purchase good value shares.
MFF Capital regularly trades at a discount to its net tangible assets (NTA) per share. The fact that it always trades at a discount means that we can always buy it at a decent price. On 14 August 2020 it had an NTA per share of $2.82. That means it's trading at a 7% discount to the last known NTA.
The ASX share's board has recently announced it intends to keep increasing the dividend – which means shareholders will steadily get bigger payments over time.
Foolish takeaway
I really like both of these ASX shares. The ETF has a lot of great investments with good diversification. I think MFF Capital is one of the best LICs. I believe they're both worth investing in regularly.
