How to easily future-proof your ASX share portfolio

Being prepared for the long term could be a smart move for Aussie investors.

Smiling young parents with their daughter dream of success.

Images source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Invest in a well-rounded portfolio by anchoring with stable ETFs like the S&P 500 for broad market exposure and low cost.
  • Diversify growth through shares and funds targeting megatrends in healthcare, clean energy, and digital transformation.
  • Future-proof your portfolio by balancing solid foundations with dynamic sectors, leveraging megatrends to enhance growth potential.

Building wealth isn't just about picking ASX shares that are doing well today.

The smartest investors focus on companies and funds positioned to thrive in the decades ahead with businesses exposed to megatrends like healthcare, clean energy, and digital transformation.

By leaning into these themes, you could potentially future-proof your portfolio while still enjoying the benefits of diversification.

Anchor your portfolio with stability

Every portfolio needs a reliable core. That's where exchange traded funds (ETFs) like the iShares S&P 500 ETF (ASX: IVV) come in. This fund tracks Wall Street's 500 largest stocks, from banks to tech giants to retailers, giving you broad exposure to the backbone of the US economy. It is a low-cost way to ensure your portfolio moves in line with the wider market.

Add exposure to megatrends

Once you've got a stable foundation, it is time to add in some growth opportunities. Take healthcare, for example. ASX shares like Cochlear Ltd (ASX: COH) and Sonic Healthcare Ltd (ASX: SHL) are global leaders in hearing implants and medical diagnostics. Both operate in industries with ageing populations and rising demand for advanced care. These are structural trends that aren't going away any time soon.

Another megatrend is clean energy. And for exposure to this, investors might look at the VanEck Global Clean Energy ETF (ASX: CLNE). It provides access to leading renewable energy stocks worldwide, including solar, wind, and battery storage innovators. As the world transitions to a low-carbon economy, these companies could play a central role.

Embrace digital disruption

Technology is another critical megatrend. Instead of relying on the usual suspects, you could consider the BetaShares Asia Technology Tigers ETF (ASX: ASIA). It offers exposure to some of Asia's fastest-growing tech stocks, such as Alibaba (NYSE: BABA) and Tencent (SEHK: 700), tapping into the region's expanding digital economy.

On the local market, Megaport Ltd (ASX: MP1) is carving out a niche in network-as-a-service, helping businesses simplify how they connect to cloud services worldwide. With global demand for cloud and AI connectivity rising, Megaport could be a quiet achiever over the long term.

Foolish takeaway

Future-proofing your wealth doesn't mean betting everything on one hot theme.

It is about building a solid base, then layering in exposure to sectors and companies driving global change. By combining broad-market ETFs with megatrend-focused shares like Cochlear, Sonic Healthcare, and Megaport, you could create a portfolio that balances stability with growth.

Motley Fool contributor James Mickleboro has positions in Betashares Capital - Asia Technology Tigers Etf, Cochlear, and Megaport. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear, Megaport, Tencent, and iShares S&P 500 ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Alibaba Group. The Motley Fool Australia has recommended Cochlear, Sonic Healthcare, 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.

More on How to invest

A smiling woman with a handful of $100 notes, indicating strong dividend payments
How to invest

How to turn $50 a week into a six-figure ASX share portfolio

Small investments could grow into big wealth with this strategy.

Read more »

Excited couple celebrating success while looking at smartphone.
How to invest

Why today's cheap ASX shares could double my money during the next bull market

These shares could be the ones to buy if you are looking for undervalued options.

Read more »

A businessman compares the growth trajectory of property versus shares.
How to invest

The 10-year wealth plan: how to turn small savings into life-changing results

Building wealth doesn't need to be hard. Here's a simple plan you can follow.

Read more »

Legendary share market investing expert and owner of Berkshire Hathaway, Warren Buffett.
How to invest

I'd listen to Warren Buffett's advice to buy undervalued ASX shares today

The Oracle of Omaha knows a good deal when he sees one.

Read more »

Concept image of man holding up a falling arrow with a shield.
How to invest

Is the S&P 500 set for a crash? Here's my plan for the US stock market

No one can predict when the next crash will come.

Read more »

a man wearing a gold shirt smiles widely as he is engulfed in a shower of gold confetti falling from the sky. representing a new gold discovery by ASX mining share OzAurum Resources
How to invest

The Warren Buffett golden rule that investors can't ignore

His golden returns are underpinned by this simple rule.

Read more »

a smiling picture of legendary US investment guru Warren Buffett.
How to invest

Want to build wealth? Here's how Warren Buffett does it

Following Buffett's lead could help you build significant wealth in the share market.

Read more »

Happy young couple saving money in piggy bank.
How to invest

What $100 a week in ASX shares could become in 20 years

Would it be worth investing weekly into ASX shares? Let's find out.

Read more »