Everyone talking about reading The Hobbit to their young kids needs to get this graphic novel version. It is gold and my 4-year old son loved it.
The one I found has a different cover, but I assume it’s the same. If anyone knows, let me know! :)
Here is the graphic novel I know. It's very well done.
How about the Hobbit? We started with the graphic novel versions:
https://www.amazon.com/Graphic-subtitle-illustrated-fantasy-classic/dp/0345445600
I don't think it's as scary as LOTR. I also used to orally tell the story from memory to my daughter & her cousins. I'd read a few pages of the graphic novel to refresh my memory, then I'd adapt and tell what I rememberd for 15 minutes each night. Worked very well, and you can just omit/adapt any parts you think are too scary.
The Hobbit was written for children. It won the Carnegie Medal, which is for children's and young adult literature. The publisher decided to publish it after handed the manuscript to his 10-year-old son and asked him to review it.
Visit a good bookstore. There should be an illustrated version. By that I mean a book with the full text of the story, but also pictures every few pages.
There is also a graphic novel. Amazon has a couple preview pages visible.
In addition to the other illustrated edition mentioned I grew up with and highly recommend this one:
https://www.amazon.com/Graphic-subtitle-illustrated-fantasy-classic/dp/0345445600
My very first exposure to The Hobbit & LOTR was my mom reciting the story from memory (She'd have really loved this community!) on a long road trip, probably c. age 3 or 4? There's such a great music to the stories; both in and out of the actual poetry and music within them. Even pre comprehension of all of it I was entranced by the sound of the story. I'll always be an enthusiastic vote for the right age being the age where somebody's drawn in by it.
Anyway, after that original verbal retelling, all the books, and that graphic novel version, were in frequent read-aloud rotation. Treasured memories all around—I hope the sharing of these stories lead to many for you and your family as well!
Maybe not exactly what you're looking for, but this was my introduction to Middle Earth, and it's phenomenal.