Investing in the share market doesn't have to be difficult. You don't need to be constantly trading or trying to outsmart professional investors. There's an easier way!
One of the easiest and most effective ways to build wealth is by investing in exchange-traded funds (ETFs). These funds give you exposure to entire markets, sectors, or investment strategies in just a single trade on the ASX.
By sticking with high-quality ETFs and holding them for the long term, investors can harness the twin powers of diversification and compounding. Here are three ASX ETFs that could make wealth building surprisingly simple.
VanEck Global Defence ETF (ASX: DFND)
Defence spending is on the rise, with governments across the world increasing the percentage of GDP they spend on defence after pressure from US President Donald Trump. This includes NATO agreeing to ramp up defence spending to 5% of their economic output by 2035.
This bodes well for the holdings in the VanEck Global Defence ETF. It offers exposure to leading stocks across the aerospace, defence, and cybersecurity industries. These include giants like Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC), and Raytheon.
For Australian investors, this ETF provides a straightforward way to gain exposure to an industry that's traditionally difficult to access on the ASX.
iShares S&P 500 ETF (ASX: IVV)
For global blue-chip exposure, it is hard to look past the iShares S&P 500 ETF. This ASX ETF tracks the performance of the 500 largest stocks in the United States, giving investors access to names like Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN).
The US market has historically been one of the strongest performers worldwide, and many of its leading stocks dominate their respective industries on a global scale. The iShares S&P 500 ETF allows Australian investors to tap into that growth without the need to pick individual winners.
VanEck Morningstar Wide Moat ETF (ASX: MOAT)
Finally, the VanEck Morningstar Wide Moat ETF could be worth a shout. It adds a quality-focused angle to this simple portfolio. The ASX ETF invests in US stocks that analysts believe have durable competitive advantages, or moats. These can include strong brands, cost advantages, or unique technologies.
Current holdings include companies like Nike (NYSE: NKE), Walt Disney (NYSE: DIS), and Pepsico (NASDAQ: PEP). By focusing on businesses with lasting strengths, the VanEck Morningstar Wide Moat ETF aims to deliver stronger returns through multiple market cycles.
