$1,000 is an excellent starting point for investing in Australia. At this amount, you have access to all major brokerage platforms, brokerage costs become a small percentage of your investment, and you can buy a meaningful number of ETF units to begin building a portfolio. Here is exactly how to invest your first $1,000.
Why $1,000 Is a Good Starting Point
At $1,000, you hit the sweet spot where:
- $10 brokerage represents just 1% of the investment — reasonable
- You can buy 7–25 units of most popular ETFs (depending on price)
- Every major Australian broker is available to you
- You have enough to establish a real portfolio, not just a micro-investment
Step 1 — Decide What You Are Investing For
Before investing, be clear on the purpose:
| Purpose | Time horizon | Appropriate for $1,000 investment? |
|---|---|---|
| House deposit (2–3 years) | Short | No — too short for share market; use HISA |
| Long-term wealth building (10+ years) | Long | Yes — ETFs appropriate |
| First step toward a larger portfolio | Ongoing | Yes — start and contribute regularly |
If you need this money within the next 2–3 years, shares are not the right vehicle. The market can fall 30–40% in the short term. For long-term goals (10+ years), shares have historically been the best performing asset class.
Step 2 — Choose Your ETF
For a $1,000 first investment, a single diversified all-in-one ETF is the simplest and most effective option:
| ETF | Approximate units for $1,000 | What it holds | Annual fee |
|---|---|---|---|
| DHHF | ~25–28 units | ~8,000 global companies (100% shares) | 0.19% |
| VDHG | ~14–16 units | ~13,000 global companies (90% shares/10% bonds) | 0.27% |
Alternatively, with $1,000 you can begin a two-ETF portfolio:
- $700 into VGS (international shares)
- $300 into VAS or A200 (Australian shares)
This provides a 70/30 international/Australian split — a commonly used allocation for Australian investors.
Step 3 — Choose a Broker
Recommended brokers for a $1,000 starting investment:
| Broker | Brokerage per trade | Cost as % of $1,000 |
|---|---|---|
| Superhero (ETF) | $0 | 0% |
| Pearler | $6.50 | 0.65% |
| Stake | $3.00 | 0.30% |
| SelfWealth | $9.50 | 0.95% |
| CommSec | $10.00 | 1.00% |
CommSec and SelfWealth are both practical at $1,000 — $9.50–$10 on a $1,000 trade is right at the reasonable limit. Superhero and Pearler are more cost-effective.
Step 4 — Open Your Account and Invest
- Choose a broker and complete the online account application (10–15 minutes, need TFN, bank account and ID)
- Transfer $1,000 to your brokerage account
- Search for your chosen ETF by ticker (e.g., DHHF)
- Place a market order for your target number of units
- Wait for settlement (T+2 — two business days)
What $1,000 Could Grow To
At an assumed 8% average annual return (actual returns will vary significantly):
| Starting amount | Monthly additions | After 10 years | After 20 years |
|---|---|---|---|
| $1,000 (one-time only) | $0 | ~$2,159 | ~$4,661 |
| $1,000 + $500/month | $500 | ~$93,000 | ~$295,000 |
| $1,000 + $1,000/month | $1,000 | ~$184,000 | ~$589,000 |
The starting $1,000 is the beginning, not the destination. Building the habit of regular contributions is what drives long-term wealth accumulation.
After Your First $1,000 — What to Do Next
- Set up automatic investments — use Pearler’s Autoinvest or a calendar reminder to invest monthly
- Reinvest dividends — either use the dividend reinvestment plan (DRP) if available, or accumulate distributions and buy more units
- Increase contributions — aim to invest 10–20% of your take-home pay each period
- Do not check daily — watching daily price movements encourages poor decisions; review quarterly at most
- Do not panic sell — market downturns are normal and historically temporary
A $1,000 Starting Portfolio — Concrete Example
Investor: 32-year-old Australian, investing for long-term wealth building outside super
Platform: Pearler
Investment: $1,000 into DHHF (Betashares Diversified All Growth ETF)
Plan: Add $700/month via Pearler’s Autoinvest feature on payday
Why DHHF: 100% diversified global shares, low 0.19% MER, no rebalancing required, automatic internal rebalancing included
Tax position: Dividends (distributions) received quarterly, included in annual tax return. Capital gains only applicable when selling — no CGT event from buying.
Related Articles
- How to Start Investing with $500 in Australia
- How Much Money Do You Need to Start Investing?
- Best ETFs Australia (2026)
- Pearler Review 2026
- DHHF Review 2026
- Getting Started hub
- Investing hub
Frequently Asked Questions
Should I split $1,000 across multiple ETFs or put it all in one? At $1,000, a single all-in-one ETF (DHHF or VDHG) is simpler and more cost-effective than splitting. Splitting $1,000 across two ETFs means either paying brokerage twice or holding very small amounts in each — neither optimal. Once your portfolio grows to $5,000–$10,000+, you can consider a multi-ETF approach.
Is a $1,000 investment enough to receive dividends? Yes. ETF distributions (dividends) are paid per unit, so even a small number of units receive a proportional distribution. At a 4% distribution yield, $1,000 invested would generate approximately $40/year in distributions ($10/quarter). Reinvesting these over time adds to your total return.
Can I buy shares in individual companies with $1,000? Yes — with $1,000 you could buy shares in an ASX-listed company. However, putting all $1,000 into a single company carries much more risk than a diversified ETF. If that company’s share price falls 50% (which happens with individual stocks), you have lost $500. With an ETF holding 300 companies, one failure barely moves the needle.
This article provides general financial information only. For advice tailored to your situation, speak with a licensed financial adviser. You can find one through the ASIC financial advisers register or MoneySmart.