The smartest ASX ETFs for investors in their 20s and 30s

Want to invest in your 20s or 30s? Here are three funds that could be smart picks.

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Key points

  • For young investors seeking long-term growth, the Betashares Nasdaq 100 ETF offers a stake in tech giants shaping the future, promising rewards for those who can weather market fluctuations.
  • The Betashares Asia Technology Tigers ETF is your gateway to Asia's burgeoning tech scene, featuring innovative leaders set to drive exponential digital growth alongside rising middle-class demand.
  • Homegrown innovation is key in the BetaShares S&P/ASX Australian Technology ETF, as it provides access to Australian tech stocks known for their global reach and dependable revenue streams, making it a solid choice for forward-looking portfolios.

Being in your 20s or 30s gives you something invaluable in investing: time.

And when it comes to building wealth, time is the ultimate superpower. It allows small, regular investments to snowball into life-changing sums thanks to decades of compounding.

That's why younger investors don't need to obsess over market timing or chase the latest hot stock.

A smarter approach is to build a long-term portfolio that captures global growth, leans into powerful megatrends, and compounds quietly in the background.

For Australians starting their wealth-building journey, the three ASX exchange traded funds (ETFs) named below could be worthy of consideration. Here's what they offer investors:

Betashares Nasdaq 100 ETF (ASX: NDQ)

If you want long-term compounding, it is hard to go past the Betashares Nasdaq 100 ETF. This fund gives you exposure to the 100 largest non-financial stocks that are listed on the Nasdaq index.

Many of these are shaping the future of technology, AI, cloud computing, and digital commerce. This includes giants such as Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG), and Nvidia (NASDAQ: NVDA). These are businesses with enormous global moats, strong cash generation, and long histories of outperformance.

The Nasdaq has beaten most global markets over the past two decades, and while there will always be volatility, young investors can ride out the bumps and let time work its magic.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

While the US dominates global tech today, Asia is expected to be a major growth engine in the decades ahead. The Betashares Asia Technology Tigers ETF provides investors with exposure to some of the region's most dynamic technology companies or tigers. This includes WeChat owner Tencent Holdings (SEHK: 700), Temu owner PDD Holdings (NASDAQ: PDD), Taiwan Semiconductor Manufacturing Co. (NYSE: TSM), and search giant Baidu (NASDAQ: BIDU).

These companies operate in fast-expanding industries such as gaming, e-commerce, semiconductors, cloud services, and artificial intelligence. With Asia's middle class booming and digital adoption rising rapidly, the long-term growth outlook is enormous.

BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)

A third ASX ETF to look at is the BetaShares S&P/ASX Australian Technology ETF. The Australian tech sector may be small compared to the US, but it contains several stocks that have grown into global leaders.

This fund provides exposure to a basket of local innovators, including WiseTech Global Ltd (ASX: WTC), Xero Ltd (ASX: XRO), and Carsales.com Ltd (ASX: CAR). These businesses benefit from recurring revenue, strong customer retention, and global expansion opportunities.

It was recently recommended by analysts at Betashares.

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF, Betashares Capital - Asia Technology Tigers Etf, WiseTech Global, and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Apple, Baidu, BetaShares Nasdaq 100 ETF, Nvidia, Taiwan Semiconductor Manufacturing, Tencent, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF, WiseTech Global, and Xero. The Motley Fool Australia has recommended Alphabet, Apple, CAR Group Ltd, and Nvidia. 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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