When it comes to long-term investing, exchange-traded funds (ETFs) can be a simple yet powerful way to build wealth.
Instead of betting on one stock, you gain exposure to tens, hundreds, or even thousands of businesses at once. That diversification, combined with the ability to ride major global themes, arguably makes ETFs natural buy and hold candidates.
Here are three ASX ETFs that stand out as strong long-term picks.
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iShares S&P 500 ETF (ASX: IVV)
The iShares S&P 500 ETF offers investors exposure to the 500 largest U.S. companies — effectively the backbone of the world's most important equity market. Its holdings include global leaders such as Alphabet (NASDAQ: GOOGL), Amazon.com (NASDAQ: AMZN), and Johnson & Johnson (NYSE: JNJ), spanning technology, healthcare, consumer staples, and more.
The S&P 500 has historically been one of the best-performing markets over the long term, delivering steady growth through booms, busts, and everything in between. By owning the iShares S&P 500 ETF, investors can capture the compounding power of U.S. corporate giants while benefiting from the diversification of an entire index.
Betashares Australian Quality ETF (ASX: AQLT)
The Betashares Australian Quality ETF screens for local shares with high returns on equity, strong balance sheets, and consistent earnings. In other words, it filters out the weaker players and focuses only on the ASX's highest-quality businesses.
This approach means exposure to resilient names that can weather downturns while continuing to compound wealth. For investors who want to anchor their portfolio in the best Australian shares without having to pick them individually, the Betashares Australian Quality ETF could be a compelling option. Current holdings include CSL Ltd (ASX: CSL), Wesfarmers Ltd (ASX: WES), and Westpac Banking Corp (ASX: WBC).
It was recently named as an ASX ETF to consider buying by the team at Betashares and it isn't hard to see why.
VanEck Morningstar Wide Moat ETF (ASX: MOAT)
The VanEck Morningstar Wide Moat ETF is built around Warren Buffett's favourite concept: economic moats. It invests in U.S. companies that analysts believe are undervalued and protected by sustainable competitive advantages.
Current holdings include Nike (NYSE: NKE), Walt Disney (NYSE: DIS), and PepsiCo (NASDAQ: PEP) — global leaders with brand power and pricing strength. By focusing on companies with moats, the VanEck Morningstar Wide Moat ETF aims to deliver steady long-term growth while protecting against competition.
