3 ASX ETFs perfect for building generational wealth

Let's see why these funds could be great buy and hold options for wealth builders.

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Key points

  • For investors aiming to build lasting wealth, the Betashares Global Cash Flow Kings ETF offers a focus on companies with robust cash flows, facilitating growth and dividend opportunities that compound over time, featuring giants like Palantir and Visa.
  • The iShares S&P 500 ETF provides straightforward exposure to America's top 500 companies, leveraging the historic resilience and innovation-driven growth of the US economy as a compelling choice for multi-generational wealth transfer.
  • VanEck Morningstar Wide Moat ETF focuses on companies with competitive advantages that ensure enduring profitability, making it ideal for long-term investors interested in high returns on capital, including brands like Nike and Disney.

Building generational wealth takes more than luck; it requires ownership of assets that grow over time.

For most investors, exchange-traded funds (ETFs) are one of the simplest ways to achieve that.

They provide broad diversification, exposure to world-class companies, and the ability to let long-term compounding do the heavy lifting.

If the goal is to build wealth that could one day benefit children or grandchildren, you want ETFs backed by sustainable business models, strong global tailwinds, and decades-long growth runways.

Three ASX ETFs that stand out as exceptional long-term building blocks for anyone thinking beyond their own lifetime are named below:

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

If you want to build wealth that lasts, investing in companies with strong, predictable cash flows is a good place to start. The Betashares Global Cash Flow Kings ETF targets exactly that.

Rather than focusing on hype or short-term market momentum, this fund leans into profitability, operational discipline, and financial resilience. It includes stocks like Palantir (NASDAQ: PLTR), Visa (NYSE: V), and Alphabet (NASDAQ: GOOGL).

Cash flow is the engine of compounding. Companies that consistently generate it can reinvest in growth, buy back shares, acquire competitors, or raise dividends. Over decades, that creates an enormous wealth-building effect, making this fund a potentially powerful foundation for generational portfolios. It was recently recommended by analysts at Betashares.

iShares S&P 500 ETF (ASX: IVV)

If you could only choose one ETF to pass down to the next generation, the iShares S&P 500 ETF would be hard to beat. It tracks the S&P 500 index, giving investors exposure to 500 of America's largest and most influential companies.

This includes household names like Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), Amazon (NASDAQ: AMZN), McDonald's (NYSE: MCD), and Walmart (NYSE: WMT).

The US economy has been a compounding machine for more than a century, driven by innovation, entrepreneurship, and technological leadership. This ASX ETF captures that long-term engine without requiring investors to pick winners or time markets.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The VanEck Morningstar Wide Moat ETF provides investors with access to stocks with fair valuations and lasting competitive advantages that protect their profits from rivals. These moats might include strong brands, high switching costs, patents, dominant market share, or cost advantages.

Its portfolio currently holds world class businesses such as Nike (NYSE: NKE), Adobe (NASDAQ: ADBE), and Walt Disney (NYSE: DIS).

Because wide-moat businesses tend to generate above-average returns on capital, they often compound value at a faster rate over long periods. For investors thinking in decades rather than years, the VanEck Morningstar Wide Moat ETF could be a great pick.

Motley Fool contributor James Mickleboro has positions in Nike, VanEck Morningstar Wide Moat ETF, and Walt Disney. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe, Alphabet, Amazon, Microsoft, Nike, Nvidia, Palantir Technologies, Visa, Walmart, Walt Disney, and iShares S&P 500 ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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, Alphabet, Amazon, Microsoft, Nike, Nvidia, VanEck Morningstar Wide Moat ETF, Visa, Walt Disney, 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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