So much time can be spent by investors sifting through ASX and ETF news, updates and expert opinions. However sometimes it helps to sit back and follow the age old acronym: "KISS".
If you aren't familiar, this stands for: Keep it simple stupid.
When it comes to ASX ETFs, this saying rings true.
What do I mean by that?
Well, many investors can give themselves paralysis by analysis when trying to outsmart the market, when in reality, focussing on long term investments from trustworthy companies can yield the best results.
To prove this point, here is how much an investor could have made by setting and forgetting the three largest ASX ETFs by assets under management (AUM) for the last 5 years.
What is Australia's largest fund?
Vanguard Australian Shares Index ETF seeks to track the return of the S&P/ASX 300 Index.
In May, it became the first Australian exchange-traded fund to surpass $20 billion in funds under management, solidifying its position as the country's largest ETF.
It includes blue-chip ASX companies like Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) and CSL Ltd (ASX: CSL).
It also comes with a management fee of a fee of just 0.07% – that works out to just 70 cents each year for every $1,000 invested.
Data from FY 25 provided by investment platform Stake shows it is still extremely popular as the second most traded ASX ETF during that span, with a ratio of 81% buy / 19% sell.
In the last 5 years it has risen approximately 47.32%.
That means a $10,000 investment 5 years ago would be worth roughly $14,731, before taking into account fees or reinvestment plans.
Vanguard MSCI Index International Shares ETF (ASX: VGS)
This is the second largest ASX ETF by assets under management with just over $12 billion AUD.
Many investors may choose the combination of VGS and VAS to start their portfolio with exposure to leading companies in Australia and overseas.
VGS ETF includes 1300+ companies from around 23 different countries including the U.S, Japan, U.K, Canada, France, and Switzerland.
It actively excludes Australian stocks.
It has risen 87.27% over the last five years. This means an initial investment of $10,000 would today be worth $18,823.
iShares S&P 500 ETF (ASX: IVV)
Turning our attention to the US, this ASX ETF tracks the performance of the S&P 500.
Data from TradingView suggests the fund's total assets under management sits just below $12 billion AUD.
It is up an impressive 113.48% over the last 5 years, which means an initial investment of $10,000 would today be worth $21,361.
Referring back to our "KISS" acronym, I believe most investors would be hard pressed to beat this return over a 5 year period by trading individual stocks.
It also comes with a management fee of just 0.04%.
