If you've got $3,000 to invest and are looking for a simple way to build long-term wealth, exchange-traded funds (ETFs) can be a smart place to start.
They offer diversification, low fees, and exposure to high-quality companies — all without the stress of stock picking.
There are plenty of options on the ASX, but here are three ASX ETFs that stand out right now and could be great additions to a long-term portfolio.
Image source: Getty Images
BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)
For investors who want to back Australia's thriving tech sector, the BetaShares S&P/ASX Australian Technology ETF is worth a closer look. It gives access to a portfolio of local technology leaders including Catapult Group International Ltd (ASX: CAT), Megaport Ltd (ASX: MP1) WiseTech Global Ltd (ASX: WTC), Xero Ltd (ASX: XRO), and TechnologyOne Ltd (ASX: TNE).
These companies are growing globally and benefiting from long-term digital trends. And while tech stocks can be volatile, this ASX ETF offers diversified exposure to the sector, which could pay off handsomely over the long run. It was recently named as one to consider by the team at Betashares.
Betashares Cloud Computing ETF (ASX: CLDD)
The Betashares Cloud Computing ETF offers exposure to some of the biggest global names powering the digital infrastructure of tomorrow. Its portfolio includes cutting-edge companies like Snowflake Inc (NYSE: SNOW), Shopify (NASDAQ: SHOP), Zscaler Inc (NASDAQ: ZS), and Cloudflare (NYSE: NET) — leaders in cloud storage, ecommerce, cybersecurity, and data analytics.
Cloud technology remains a critical part of the digital transformation sweeping across industries. As AI adoption accelerates, the need for cloud-based services is expected to grow significantly. This ASX taps directly into this powerful theme. It is no wonder then that the team at Betashares also named this as one to consider buying recently.
Vanguard Australian Shares Index ETF (ASX: VAS)
If you're after broad market exposure and solid income, the Vanguard Australian Shares Index ETF is a reliable option. It tracks the ASX 300 index, giving investors a slice of Australia's largest listed companies such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and CSL Ltd (ASX: CSL). It also gives investors exposure to up and coming mid caps like online furniture and homewares retailer Temple & Webster Group Ltd (ASX: TPW) and counter drone technology company DroneShield Ltd (ASX: DRO).
This ETF is often used as a core holding because of its diversification, low fees, and franked dividend income. It could be a solid foundation for any long-term portfolio.
