If you've ever thought you need a big salary or a lucky break to build serious wealth, think again.
With just $500 a month, a bit of discipline, and a few carefully chosen ASX exchange traded funds (ETFs), it is entirely possible to grow your portfolio to $250,000.
Let's break down exactly how it works — and which ASX ETFs could help get you there.
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The $500-a-month strategy
This isn't a get rich quick story. It is more of a get rich slow and smart plan.
If you invest $500 a month into a diversified mix of ASX ETFs and earn a 10% annual return (in line with long-term equity market averages, though not guaranteed), your portfolio would grow to approximately $250,000 in just under 17 years.
That's the power of consistency and compounding. You don't need to worry about market timing or chasing trends — just focus on regular contributions and staying invested through the ups and downs.
But which ASX ETFs could be worth considering as part of this strategy? Let's take a look at four.
4 powerful ASX ETFs for long-term growth
Here are four ASX ETFs that could help you get to $250,000 in 17 years:
Betashares Nasdaq 100 ETF (ASX: NDQ)
The Betashares Nasdaq 100 ETF tracks the tech-heavy Nasdaq 100 index, giving you exposure to innovation giants like Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), NVIDIA (NASDAQ: NVDA), and Amazon (NASDAQ: AMZN). With its focus on technology and disruption, this ASX ETF has delivered strong returns over the past decade. And given the quality in the fund, it would not be surprising if this trend continues for the next decade and beyond.
iShares S&P 500 ETF (ASX: IVV)
One of the most popular ETFs globally, the iShares S&P 500 ETF gives you exposure to the top 500 companies on Wall Street. This includes stocks from the healthcare, consumer goods, mining, financials, and tech sectors. Warren Buffett has often suggested that investors put their money into a fund like this instead of trying to beat the market.
VanEck Morningstar Wide Moat ETF (ASX: MOAT)
If you are a fan of Warren Buffett then the VanEck Morningstar Wide Moat ETF could be for you. This ASX ETF invests in high-quality US companies with strong competitive advantages or economic moats. Think of businesses that are hard to disrupt, with pricing power and long-term staying power. These are the type of stocks that Buffett likes to buy. And given his long term track record, this investment focus seems to work.
Vanguard MSCI Index International Shares ETF (ASX: VGS)
The Vanguard MSCI Index International Shares ETF provides exposure to more than 1,500 companies from developed markets around the world, excluding Australia. It is a great way to round out your portfolio and diversify across economies, currencies, and industries.
