Many investors overcomplicate things. They chase hot stocks, jump in and out of trades, react quickly to headlines, and constantly try to outsmart the market.
But time and again, the data tells a different story. The simplest portfolios often perform the best.
A true set and forget strategy doesn't rely on forecasting, nerves of steel or endless research.
It relies on broad diversification, consistent contributions, and decades of compounding doing the hard work.
If I were building a portfolio today designed to be held for decades, these are the three ASX ETFs I'd start with.
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Vanguard Australian Shares Index ETF (ASX: VAS)
For the core of the portfolio, I would begin at home. The Vanguard Australian Shares Index ETF gives instant exposure to around 300 of Australia's largest shares.
This means it provides broad coverage across sectors such as financials, resources, healthcare and consumer staples, including heavyweights like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Wesfarmers Ltd (ASX: WES).
While the ASX isn't the fastest-growing market in the world, it has historically delivered steady returns backed by profitable, well-established businesses. So, for investors who want dependable growth paired with income, it remains one of the most efficient and low-cost ways to invest in Australia's economic engine.
iShares S&P 500 ETF (ASX: IVV)
The iShares S&P 500 ETF is another ASX ETF to consider adding to a portfolio. This fund tracks the S&P 500 index, which is one of the strongest-performing major market over the long term.
It gives investors exposure to world leaders such as Apple Inc. (NASDAQ: AAPL), Microsoft Corp (NASDAQ: MSFT), Nvidia Corp (NASDAQ: NVDA), Amazon.com Inc. (NASDAQ: AMZN) and Walmart (NYSE: WMT).
The United States remains the global innovation hub, dominating technology, pharmaceuticals, cloud computing, and artificial intelligence. By owning this fund, investors capture the compounding power of many of the world's most influential stocks without needing to pick individual winners.
Vanguard MSCI Index International Shares ETF (ASX: VGS)
Finally, another ASX ETF to set and forget could be the Vanguard MSCI Index International Shares ETF.
It offers broad diversification across developed markets outside Australia. This includes giants such as Nestlé (SWX: NESN), ASML Holding (NASDAQ: ASML), Toyota Motor Corp (NYSE: TM), AstraZeneca plc (NASDAQ: AZN) and Samsung Electronics.
While the iShares S&P 500 ETF is purely US-focused, the Vanguard MSCI Index International Shares spreads your investment across the whole world. This helps reduce concentration risk and ensures your long-term returns don't hinge on a single country or sector.
