If you are fortunate enough to have $10,000 ready to invest and want a simple, low-maintenance way to build long-term wealth, exchange-traded funds (ETFs) could be the answer.
That's because ETFs provide Aussie investors with instant diversification, remove the pressure of stock-picking, and allow investors to benefit from powerful global and local growth trends over time.
Rather than trying to predict which individual shares will outperform, spreading capital across a handful of high-quality ETFs can deliver strong returns with far less effort.
But which funds could be worth considering for investors with $10,000 to put to work in the share market? Let's take a look at three super strong ASX ETFs that could form the backbone of a long-term portfolio.
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iShares S&P 500 ETF (ASX: IVV)
The popular iShares S&P 500 ETF gives Australian investors direct exposure to the 500 largest listed companies in the United States. This includes global leaders such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Netflix (NASDAQ: NFLX), and Johnson & Johnson (NYSE: JNJ).
The S&P 500 index has delivered outstanding long-term returns over many decades, driven by a winning combination of innovation, productivity growth, and some of the world's most profitable businesses. For investors looking to tap into US economic strength without picking individual stocks, the iShares S&P 500 ETF could be a compelling core holding.
Vanguard Australian Shares ETF (ASX: VAS)
Another ASX ETF that could be a top option for the $10,000 is the Vanguard Australian Shares ETF. It provides broad exposure to the Australian share market, holding around 300 local stocks. Major positions include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and CSL Ltd (ASX: CSL).
This means that the Vanguard Australian Shares ETF offers a mix of growth and income, making it particularly attractive for Australian investors who value franking credits and home-market familiarity. It also ensures your portfolio benefits from Australia's strong dividend culture while maintaining broad diversification.
VanEck Morningstar Wide Moat ETF (ASX: MOAT)
A third ASX ETF to look at is the VanEck Morningstar Wide Moat ETF. Inspired by principles championed by Warren Buffett, this fund aims to own exceptional US stocks with lasting competitive advantages when they are trading at attractive valuations.
Its holdings change periodically but currently include the likes of Nike (NYSE: NKE), Adobe (NASDAQ: ADBE), and Merck & Co. (NYSE: MRK).
The fund's quality-first approach can help investors compound wealth over time while potentially reducing downside risk.
