I think that one of the best ways to grow wealth is to make buy and hold investments.
The good news is that exchange traded funds (ETFs) make this style of investing easier than ever by allowing you to buy large groups of shares in one go.
But which Australian ETFs could be good buy and hold forever options? Let's take a look at three top funds:
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Vanguard Australian Shares Index ETF (ASX: VAS)
The first Australian ETF that could be a forever-style hold is the Vanguard Australian Shares Index ETF.
Rather than relying on judgement calls or stock selection, this ETF simply mirrors the Australian share market itself. As companies grow, shrink, merge, or disappear, the index adjusts automatically. That means the portfolio is always evolving without needing to take action.
This is a powerful idea for long-term investors. You are not betting on which shares will win, only that Australian businesses as a whole will continue to generate profits over time. Dividends, franking credits, and gradual capital growth are all captured along the way.
The Vanguard Australian Shares Index ETF works because it removes decision-making. For many investors, that simplicity is exactly what allows them to stay invested for decades.
Betashares Australian Quality ETF (ASX: AQLT)
Another Australian ETF to consider is the Betashares Australian Quality ETF, which takes a more selective approach.
Instead of owning the entire market, the fund focuses on ASX shares with strong balance sheets, high returns on equity, and consistent earnings. In other words, it leans toward businesses that tend to do fewer things wrong over time.
In addition, quality-focused portfolios often experience less extreme swings than the broader market, which can make them easier to hold through periods of uncertainty. That can matter just as much as returns when investing over very long timeframes.
Overall, the Betashares Australian Quality ETF could suit investors who want Australian exposure, but with a built-in tilt toward financial strength and discipline rather than size alone.
The team at Betashares recently recommended this ETF.
BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)
A final Australian ETF to look at is the BetaShares S&P/ASX Australian Technology ETF.
It provides investors with exposure to Australia's technology sector, including software, payments, and digital platform businesses. This is a space defined by innovation, but also by volatility, and that has been on full display recently.
This ASX ETF is currently down almost 25% from its 52-week high amid broader weakness across global tech shares. This could prove to be a compelling opportunity for buy and hold investors.
This fund was also recently recommended by Betashares.
