The best ASX ETFs for long-term compounding wealth

Want to build your wealth? Then check out these top funds that have bucketloads of potential.

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Key points

  • Compounding wealth through ASX ETFs enables long-term growth by investing in diversified high-quality assets, eliminating the need for constant trading.
  • Betashares Asia Technology Tigers ETF and Betashares Cloud Computing ETF provide exposure to innovative technology sectors in Asia and cloud computing, capitalising on growing digital economies.
  • iShares S&P 500 ETF offers investors a broad investment in America's dominant companies, ensuring diversified and robust market participation.

If you want to build serious wealth without the stress of constant trading, compounding is the key.

It is how patient investors quietly turn modest investments into life-changing sums, not through luck or speculation, but by holding high-quality assets that grow year after year.

For those who want to harness that power without picking individual shares, ASX exchange-traded funds (ETFs) can be a brilliant long-term solution.

But which ones?

Here are three that could help investors compound steadily for decades to come.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The first ASX ETF that could be a top buy and hold is the Betashares Asia Technology Tigers ETF. It gives investors exposure to around 50 of Asia's most innovative technology stocks. These are names driving everything from artificial intelligence to e-commerce and fintech.

Its top holdings include Taiwan Semiconductor Manufacturing Co. (NYSE: TSM), Tencent Holdings (SEHK: 700), Samsung Electronics, and PDD Holdings (NASDAQ: PDD).

In respect to PDD Holdings, it is the Chinese e-commerce powerhouse behind Temu, the global online shopping app that has exploded in popularity thanks to its ultra-low prices and aggressive expansion. The company's unique model of connecting manufacturers directly to consumers has helped it achieve rapid growth and makes it one of Asia's most disruptive tech giants.

With the region's digital economy still in its early stages, this ASX ETF offers investors a front-row seat to decades of potential innovation and expansion.

iShares S&P 500 ETF (ASX: IVV)

For investors seeking broad exposure to the world's most dominant stocks, the iShares S&P 500 ETF is tough to beat.

This ASX ETF mirrors the performance of the S&P 500 Index, which is home to household names like Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), and Johnson & Johnson (NYSE: JNJ).

Take Nvidia as a case in point. Once a niche graphics chip maker, it now sits at the centre of the artificial intelligence revolution. Its chips power everything from autonomous vehicles to cloud computing, helping the company deliver extraordinary revenue and earnings growth.

By owning this fund, investors get diversified exposure to 500 of America's biggest and most profitable businesses. These are the kind of companies that could power the global economy for decades.

Betashares Cloud Computing ETF (ASX: CLDD)

The Betashares Cloud Computing ETF could be another top pick. It is designed to capture one of the most powerful megatrends of the 21st century: the shift to cloud-based software and data storage.

Top holdings include ServiceNow (NYSE: NOW), Adobe (NASDAQ: ADBE), Datadog (NASDAQ: DDOG), Oracle (NYSE: ORCL), and CrowdStrike (NASDAQ: CRWD).

Among them, ServiceNow stands out as a prime example of the sector's resilience. Its software automates complex workflows for large enterprises, boosting productivity and reducing costs. This makes it a must-have for many companies navigating digital transformation.

As more businesses migrate operations to the cloud, this is positioned to benefit from steady demand growth, subscription-based revenues, and the unstoppable digitisation of the global economy. It was recently recommended to investors by analysts at Betashares.

Motley Fool contributor James Mickleboro has positions in Betashares Capital - Asia Technology Tigers Etf. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe, Apple, CrowdStrike, Datadog, Microsoft, Nvidia, Oracle, ServiceNow, Taiwan Semiconductor Manufacturing, Tencent, and iShares S&P 500 ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and has recommended the following options: long January 2026 $395 calls on Microsoft, long January 2028 $330 calls on Adobe, short January 2026 $405 calls on Microsoft, and short January 2028 $340 calls on Adobe. The Motley Fool Australia has recommended Adobe, Apple, CrowdStrike, Microsoft, Nvidia, ServiceNow, 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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