First time investing

Hi Redditor, first post but have been reading a wealth of information and just seeking some thoughts on which way to go for my son.

18 year old - setting the scene -$10K initial investment and they will DCA $100 per fortnight, limited interest in investing but understands this is a good thing……time in the market.

Option 1 - DHHF for 10 years minimum, they hit 28-30 years of age and might/should have the maturity for more hands on interest. My question is what happens then if let’s say they wanted to add ETF,s, go it alone with their own portfolio etc, what happens with DHHF. Do they sell it and cop a capital gain or do they leave it and just not DCA into it anymore and basically start again with a new portfolio??

This is the part we aren’t sure on, we like the set and forget model and the diversity of DHHF and of course through the Betashares app looks super easy, just wondering if we are doing a disservice in a way by going an all in one for later on. I guess something is better than nothing and maybe we / he just deals with it later, I am sure he won’t be the first.

Lots of upsides for simplicity but aren’t their tax downsides to DHHF? and I guess it’s what’s next, with an all in one are you then pretty much stuck with that strategy.

Or option 2 - BGBL/ A200 at 75/25 percentage split

Upside is lower MER, using Betashares auto invest he could set it up where he just DCA,s and does nothing else, sets up a simple 2 ETF portfolio that can be built on later should he choose to like an emerging markets ETF and small caps when he gets a decent portfolio, maybe over $100K - $150K

Downside - will need rebalancing at least once a year, limited interest and focusing on career, which is great. Maybe he gives me access and I do it for him until he is more willing to put time and energy into this. I am happy he is at least starting, better than not starting.

Not a first world problem but keen to hear thoughts particularly those who may have had similar conversations or structures with their kids. If DHHF has so many upsides vs downsides maybe it is best option just not sure and appreciate any thoughts or respectful comments.

Cheers