When it comes to long-term investing, simplicity and patience are powerful tools.
That's why exchange-traded funds (ETFs) are so appealing. They offer diversified exposure to key sectors and themes, often with lower risk and less stress than picking individual stocks.
If your goal is to build lasting wealth over the next decade, here are three ASX ETFs that could deliver:
iShares S&P 500 ETF (ASX: IVV)
For many investors, owning the S&P 500 is the simplest and most effective way to participate in long-term global growth. The iShares S&P 500 ETF tracks the 500 largest companies in the United States — including giants like Apple, Microsoft, Walt Disney, Starbucks, Alphabet, Amazon, Tesla, and Bank of America.
This ETF gives Australian investors instant access to world-class businesses that dominate their industries. Over the long term, the S&P 500 has delivered average annual returns of around 10% (including dividends), thanks to strong earnings growth and global reach.
Another positive is that as the index rebalances, tomorrow's leaders naturally replace yesterday's laggards. For example, cryptocurrency platform Coinbase was recently added to the S&P 500 index.
Betashares S&P/ASX Australian Technology ETF (ASX: ATEC)
If you want to back Australia's most promising technology names, the Betashares S&P/ASX Australian Technology ETF is one of the easiest ways to do it.
The Betashares S&P/ASX Australian Technology ETF holds a portfolio of local tech leaders such as Xero Ltd (ASX: XRO), WiseTech Global Ltd (ASX: WTC), NextDC Ltd (ASX: NXT), and Life360 Inc. (ASX: 360). These are all businesses with strong customer bases, recurring revenues, and global ambitions.
Given the positive outlook of these shares, and the tech sector in general, this ASX ETF appears well-positioned to potentially outperform over the next decade. It's no wonder then that the team at Betashares recently tipped it as one to consider buying.
Betashares Cloud Computing ETF (ASX: CLDD)
A third ASX ETF to buy and hold could be the Betashares Cloud Computing ETF. Few themes have reshaped modern business like cloud computing — and the trend is far from over.
The Betashares Cloud Computing ETF gives investors exposure to a portfolio of global cloud-first companies building the digital backbone of the economy.
Its holdings include names like Snowflake, Cloudflare, Zscaler, and Shopify. These companies powering everything from data analytics and cybersecurity to ecommerce and AI. As more organisations migrate to the cloud, demand for secure, scalable digital infrastructure will only accelerate.
It was also recently named as one to consider buying by the team at Betashares.
