One of the beauties of buying and owning Australian exchange-traded funds (ETFs) is that investors can buy them with the expectation of never having to sell.
Most ETFs follow some sort of index. This is periodically rebalanced every few months to ensure that the stocks in the index reflect the real-life changes that are constantly happening on the share market. For example, an ETF that tracks the S&P/ASX 200 Index (ASX: XJO) will be rebalanced every three months or so to ensure that it accurately holds the largest 200 shares on the Australian stock market.
This process is always carried out behind the scenes, requiring no involvement from the investor who owns the ETF. As such, the right Australian ETF can be owned forever.
But not all Australian ETFs are suitable for a long-term investment, at least in my view. So today, let's talk about three funds that I think would serve well in any portfolio indefinitely.
Image source: Getty Images
3 Australian ETFs you could buy and never sell
iShares Global Consumer Staples ETF (ASX: IXI)
Consumer staples companies are some of the most resilient businesses on the planet. That's because they tend to make things we need, rather than want. That includes food, drinks, and household essentials. If you're looking for an investment that can last a lifetime, this space is a great one to check out.
This Australian ETF offers a range of global leaders in this space. As a case in point, many of the names in IXI ETF have been around for decades, and in some cases, centuries. Some of this Australian ETF's largest holdings include Coca-Cola Co, Walmart, Nestle, British American Tobacco and Procter & Gamble.
BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)
If you had to bet on one sector of the ASX providing the most lucrative investments for the next few decades, I think tech would be the best choice. This sector houses some of the best innovative and prosperous stocks on the ASX, including Xero Ltd (ASX: XRO), Computershare Ltd (ASX: CPU), WiseTech Global Ltd (ASX: WTC), Pro Medicus Ltd (ASX: PME), and TechnologyOne Ltd (ASX: TNE).
All of these stocks can be found in the Betashares Australian Technology ETF. I think it's reasonable to assume that these stocks will continue to contribute some of the best returns on the ASX. And if they don't, ATEC ETF will replace them with the next generation of tech winners.
iShares S&P 500 ETF (ASX: IVV)
Last but not least, we have an Australian ETF that tracks the most popular index in the world, America's S&P 500. The S&P 500 represents the largest 500 stocks listed on the US markets. That's everything from Magnificent 7 giants like NVIDIA and Amazon to Netflix, Mastercard, Exxon Mobil and Warren Buffett's Berkshire Hathaway.
Speaking of Buffett, the legendary investor has often advocated an S&P 500 ETF as a perfect investment for most of the population. With American companies continuing to shape the global economy, I think this Australian ETF is a prudent long-term bet for a 'forever investment'.
