Why these ASX ETFs could be perfect for a long-term retirement strategy

Want to retire wealthy? Here's how you can do it with exchange traded funds.

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Key points

  • ASX exchange-traded funds (ETFs) like the iShares S&P 500 ETF provide exposure to major global markets, ensuring diversification and compounding potential for long-term retirement strategies.
  • The Vanguard Australian Shares Index ETF offers access to Australia's leading companies, alongside the benefit of franked dividends, adding tax efficiency for local investors.
  • The Betashares Global Quality Leaders ETF emphasises globally dominant, profitable companies with low debt, delivering stability and consistent returns, crucial for constructing a dependable retirement portfolio.

Building a retirement portfolio doesn't have to be complicated.

In fact, the smartest approach is often the simplest: buy quality investments, stay consistent, and let time and compounding do the hard work.

For investors planning decades ahead, ASX exchange-traded funds (ETFs) can be powerful building blocks. They offer instant diversification and exposure to markets and sectors that would otherwise be difficult to access.

With that said, here are three ASX ETFs that could sit at the heart of a long-term retirement strategy.

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF gives Australians direct access to the 500 largest listed stocks in the United States.

This means exposure to household names such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), Starbucks (NASDAQ: SBUX), Walmart (NYSE: WMT), and Walt Disney (NYSE: DIS), as well as countless financials, healthcare, consumer, and industrial stocks.

The US economy has been one of the world's most consistent wealth creators, and the iShares S&P 500 ETF allows investors to participate in that growth without picking individual winners. For retirement savers, it offers both stability and compounding potential across a globally diversified basket of stocks.

Vanguard Australian Shares Index ETF (ASX: VAS)

The Vanguard Australian Shares Index ETF is often considered a core holding for local investors. And for good reason. It tracks the S&P/ASX 300 Index, providing access to Australia's biggest and most reliable companies.

That means names like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Telstra Group Ltd (ASX: TLS), and Coles Group Ltd (ASX: COL). These are the companies that dominate the local economy.

In addition, the Vanguard Australian Shares Index ETF could play an important role in a retirement portfolio by delivering franked dividends, which add an extra layer of tax efficiency for Australian investors.

Betashares Global Quality Leaders ETF (ASX: QLTY)

Finally, the Betashares Global Quality Leaders ETF focuses on global stocks with high profitability, low debt, and stable earnings. These are the hallmarks of businesses that can thrive through market cycles and deliver consistent returns.

Holdings include the likes of Visa (NYSE: V), Adobe (NASDAQ: ADBE), and ResMed Inc (ASX: RMD). These are businesses with sustainable competitive advantages and strong positions in industries such as healthcare, technology, and finance.

For investors looking to retire with confidence, owning stocks that are leaders in their fields can help balance growth potential with resilience.

Motley Fool contributor James Mickleboro has positions in ResMed and Walt Disney. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe, Apple, Microsoft, Nvidia, ResMed, Starbucks, Visa, Walmart, Walt Disney, and iShares S&P 500 ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended Coles Group, ResMed, and Telstra Group. The Motley Fool Australia has recommended Adobe, Apple, BHP Group, Microsoft, Nvidia, Starbucks, Visa, Walt Disney, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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