I can't think of a simpler way to become wealthy than by investing in exchange-traded funds (ETFs).
The attraction of an ETF is that you can closely follow the returns of an index for very little cost. Achieving average market returns over the long-term can lead to excellent results for your wealth.
That's why the below two ETFs are ideal options to consider:
BetaShares Australia 200 ETF (ASX: A200)
This ETF is the cheapest way for investors to get broad diversification with the ASX. Its annual management fee is only 0.07% per annum, around half of the cost of the Vanguard ASX offering.
The BetaShares Australia 200 ETF has a sizeable weighting to the largest businesses on the ASX with Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), Westpac Banking Corp (ASX: WBC) and CSL Limited (ASX: CSL) all having more than 5% of the ETF's assets allocated.
In my opinion, the main reason to consider an ASX ETF is for the dividend yield. According to BetaShares, it has a dividend yield of almost 5% plus the franking credits.
Vanguard US Total Market Shares Index ETF (ASX: VTS)
This ETF is one of the cheapest ways to invest into international shares for Aussie investors. Its annual management fee is 0.04%, leaving nearly all of the returns for investors, and hardly anything gobbled up by fees.
The US has arguably been the best place to be invested over the last decade and it could continue to be so because the biggest constituents of this ETF are truly global businesses that continue to drive profits higher. This ETF gives you exposure to nearly the entire US share market, with a lot of the underlying earnings coming from across the globe.
The top six of the ETF's biggest holdings are very recognisable: Microsoft, Apple, Amazon, Alphabet, Facebook and Berkshire Hathaway. The increasingly technological nature of the world could mean the FAANG businesses continue to be long-term winners.
Foolish takeaway
Both of these ETFs would be great ideas for most people. A buy-and-hold approach with perhaps 50% of your portfolio in each of them could provide a good mixture of income and growth.
