2 Simple ASX ETFs to buy and hold for life

These two funds can help build a balanced portfolio with low ongoing fees.

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Key points
  • Vanguard US Total Market Shares Index ETF (ASX: VTS) offers exposure to over 3,000 US companies and has a low management fee of 0.03%, providing excellent diversification and value.
  • Since its inception in 2009, ASX: VTS has delivered an impressive 17.48% annual return over the last five years, making it one of Vanguard’s top-performing ETFs.
  • The BetaShares Australia 200 ETF (ASX: A200) targets Australia's top 200 companies and has achieved nearly 10% annual returns since 2018, with a modest management fee of 0.04%.

I consistently try to cover ASX ETF news. 

What I have noticed this past year plus is ETF providers are getting more and more specific with new funds.

Some of these newer funds focus on trends like AI, or focus on very specific geographic markets. 

This can give investors a chance to really capitalise on themes and sectors they believe are set for growth. 

It's also great for investors looking to focus on something very specific. 

But sometimes we can overwhelm ourselves trying to beat the markets or hop on a megatrend when simple investment principles can win out over the long term. 

Here are two simple funds on the market that have long-term proven success. 

Two people climb to the summit and raise their arms in success as the sun rises brightly over the mountains.

Image source: Getty Images

Vanguard Us Total Market Shares Index ETF (ASX: VTS)

The ETF provides exposure to some of the world's largest companies listed in the United States.

At the time of writing, it has more than 3,000 holdings, meaning investors get great diversification in one simple trade. 

It gives instant exposure to some of the biggest blue-chip companies like Nvidia, Microsoft, Apple, Alphabet, Amazon.com and Meta Platforms. 

The VTS ETF also has an extremely low annual management fee of just 0.03%. This is lower than other comparable funds. 

Additionally, it is considerably cheaper management compared to some of the unique and hyper-focussed ASX ETFs that have been coming onto the market in the last few years. That's likely because these newer funds have much more complex strategies behind them requiring more oversight from the providers. 

It first listed all the way back in May 2009. 

Most importantly, it has had a per annum return of 17.48% over the last 5 years and has been one of Vanguard's best performing ASX ETFs. 

BetaShares Australia 200 ETF (ASX: A200)

If you use the VTS fund to gain exposure to large US companies, the BetaShares Australia 200 ETF could be a perfect Australian focussed counterpart. 

The A200 fund from Betashares simply tracks the 200 largest Australian companies by market capitalisation. 

It also has a comparably low management fee of 0.04%. 

It's been around since 2018, and has provided investors with almost 10% returns p.a. in that span. 

Its largest exposure by weight is to: 

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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