I believe that buy and hold investing is one of the best ways to grow your wealth over the long term.
The only problem is that some would-be investors find stock picking daunting and put it in the too hard basket. This is a shame because by doing this they are potentially risking their future wealth.
But don't worry if this is you. Because there are assets called exchange traded funds (ETFs) that simplify the world of investing.
With ETFs, investors can gain exposure to large groups of shares through a single investment. This can provide investors with instant portfolio diversification, while also allowing them to capitalise on long-term market trends and grow their wealth.
But which ASX ETFs could be great buy and hold options? Here are three that could be worth buying and holding until 2033:
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VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
If you're a fan of Warren Buffett, then the VanEck Vectors Morningstar Wide Moat ETF could be a great option. That's because this ETF focuses on companies that have qualities that the Oracle of Omaha looks for when he makes investments. This includes fair valuations and sustainable competitive advantages. At present, this includes Adobe, Alphabet, Intuit, Kellogg Co, Meta, and Walt Disney.
Vanguard Australian Shares Index ETF (ASX: VAS)
Another ASX ETF that could be a top long-term option for investors is the Vanguard Australian Shares Index ETF. It is a low-cost, diversified, index-based exchange-traded fund that aims to track the ASX 300 index. This index is home to 300 of the largest Australian companies measured by market capitalisation. This means you'll be buying a diverse group of shares such as mining giant BHP Group Ltd (ASX: BHP), Macquarie Group Ltd (ASX: MQG), and Temple & Webster Group Ltd (ASX: TPW).
Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO)
If you have a higher tolerance for risk, then the Vanguard MSCI Australian Small Companies Index ETF could be another to consider. This ETF gives investors access to small-cap Australian shares. Vanguard notes that, unlike many other small-cap funds, VSO is intelligently designed to include a range of mid and small-cap companies, not just the tail end of the stock market. Among its holdings are companies such as Chalice Mining Ltd (ASX: CHN), Dicker Data Ltd (ASX: DDR), and Objective Corporation Ltd (ASX: OCL).
