Building a diversified portfolio doesn't need to be complicated — or require a huge sum of money.
With $5,000 investors can create a globally diversified, growth-focused portfolio by using exchange-traded funds (ETFs).
Here are five ASX ETFs that could form the foundation of a long-term, wealth-building portfolio.
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BetaShares Diversified All Growth ETF (ASX: DHHF)
For those who want a one-stop solution, the BetaShares Diversified All Growth ETF could be worth a look. It is designed as a complete portfolio in a single trade. It invests in a range of global equities across developed and emerging markets, with a heavy tilt toward growth-oriented companies.
Holding thousands of stocks globally through underlying index funds, this ASX ETF is an easy way to get instant diversification and exposure to the world's largest economies without having to choose individual shares.
Betashares Global Defence ETF (ASX: ARMR)
With NATO members pledging to lift defence spending and global tensions on the rise, the defence sector is attracting renewed attention. The Betashares Global Defence ETF provides exposure to major international companies in aerospace, military technology, cybersecurity, and intelligence systems.
Top holdings include Lockheed Martin (NYSE: LMT) and Northrop Grumman (NYSE: NOC). These are names that stand to benefit from growing government contracts and long-term spending commitments. It was recently named as one to consider buying by Betashares.
Betashares Global Cash Flow Kings ETF (ASX: CFLO)
The Betashares Global Cash Flow Kings ETF is another ASX ETF that could be worth considering. It targets a portfolio of global companies with strong cash flow generation. These are companies with proven profitability and balance sheet strength, which makes them appealing in both bull and bear markets. It was also recently named as one to consider buying by Betashares.
iShares S&P 500 ETF (ASX: IVV)
For Australian investors, the iShares S&P 500 ETF offers easy access to the 500 biggest companies in the United States. This includes names like Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Walmart (NYSE: WMT), and Coca-Cola (NYSE: KO).
The S&P 500 has historically delivered strong long-term returns, and this fund makes it easy to gain exposure to the core of the US economy — an area that continues to lead global innovation.
VanEck Morningstar Wide Moat ETF (ASX: MOAT)
Finally, the VanEck Morningstar Wide Moat ETF could be a top pick for the $5,000. It is built around a powerful concept: investing only in fairly valued companies with sustainable competitive advantages or economic moats. These are businesses with advantages like brand strength, cost efficiencies, or intellectual property that make it difficult for rivals to compete.
The fund includes global giants such as Alphabet (NASDAQ: GOOGL), Nike (NYSE: NKE), and Walt Disney (NYSE: DIS).
