3 ASX ETFs I'd buy to try to become a millionaire

ETFs can be an excellent tool to grow wealth.

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I believe exchange-traded funds (ETFs) are an excellent way for investors to grow wealth. I'm going to explore three ASX ETFs that, if invested in regularly, could help people become millionaires.

As a quick example of how effective investing in ETFs can be, if we allocate $1,000 per month into such investments and they return an average of 12% per annum over the long term, the balance would grow to $1 million in less than 22 years.

I think investors should want to own ASX ETFs that can tick a few different boxes. Let's take a look at some options.

Strong returns

There are many different options, such as the Vanguard Australian Shares Index ETF (ASX: VAS).

In my pathway to becoming a millionaire, I'd want to choose funds that I think have a high chance of delivering appealing returns.

Owning shares that have appealing characteristics and are bought at good prices can yield good returns.

And while past performance is not a guarantee of future returns, I think businesses that rank well on quality metrics can outperform the global share market and the local Aussie market.

I'm not trying to identify high-risk companies that might be able to do well. I want to own high-quality companies that have a high chance of delivering good returns.

Diversification

Diversification is an important aspect of investing. We don't want to put all of our eggs in one basket –that's high risk if something impacts the one sector or area we're invested in.

Owning ASX ETFs with diversified portfolios is also useful because it means we don't have to put too much thought into trying to buy different investments to create our own level of diversification.

Many different industries offer good returns, so it's wise to invest in the best businesses on the stock market.

3 ASX ETFs I like

One group of ASX ETFS ticks the investment boxes I'm talking about. Remember that past performance is not a guarantee of future returns, but here are three options I'd choose.

VanEck Morningstar Wide Moat ETF (ASX: MOAT) invests in US businesses that make earnings in many countries. It invests in businesses with competitive advantages (or economic moats) that are expected to endure for at least two decades. Businesses are only added to the portfolio if they're trading at an attractive price compared to what Morningstar analysts think a business is worth. Over the past five years, it has delivered an average return per annum of 17.2%.

VanEck MSCI International Quality ETF (ASX: QUAL) holds a portfolio of 300 businesses worldwide. The companies in this portfolio have three characteristics: high return on equity (ROE), earnings stability, and low financial leverage. US companies make up around 75% of the portfolio. Over the past five years, the QUAL ETF has delivered an average return per annum of 17.6%.

Betashares Global Quality Leaders ETF (ASX: QLTY) invests in a portfolio of 150 global companies. Around 68% of the portfolio is from the United States, so it is probably the most diversified of the three. Over the past five years, the QLTY ETF has returned an average of 15.8% per annum.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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