An easy and effective ASX portfolio with just 3 investments

This is the easy way to try and build a winning portfolio.

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Building a share portfolio does not have to be complicated to be effective.

For many investors, the hardest part is not choosing investments, but sticking with them. A simple structure can make it easier to stay invested through market ups and downs, while still providing diversification and long-term growth potential.

Here is an example of an easy, three-investment ASX ETF portfolio that covers Australia, the United States, and a long-term global theme.

iShares S&P 500 AUD ETF (ASX: IVV)

The first investment in this portfolio would be the iShares S&P 500 AUD ETF.

This hugely popular ETF tracks the S&P 500 Index, giving exposure to 500 of the largest companies in the United States. It includes businesses such as Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), and Amazon (NASDAQ: AMZN), which sit at the centre of global commerce, technology, and innovation.

But its holdings are not static. The index naturally evolves over time, adding new leaders and removing those that lose relevance. This has historically made it a strong long-term holding for investors who want exposure to global growth without constant decision-making.

Betashares Australian Quality ETF (ASX: AQLT)

For Australian exposure, the Betashares Australian Quality ETF could be the way to do it.

Rather than simply tracking the largest ASX shares, this ASX ETF focuses on businesses with strong balance sheets, high returns on equity, and consistent earnings. This essentially means that it tilts toward shares that aren't going away any time soon and are well-positioned for the long-term.

Holdings currently include names such as CSL Ltd (ASX: CSL) and Goodman Group (ASX: GMG), which are businesses known for their resilience and long-term execution. This quality bias can help smooth returns and make the portfolio easier to hold during volatile periods.

It could work well alongside the iShares S&P 500 AUD ETF by providing local exposure with an emphasis on financial strength rather than size alone. It was recently recommended by analysts at Betashares.

Betashares Global Cybersecurity ETF (ASX: HACK)

To add a thematic growth element, the Betashares Global Cybersecurity ETF could be worth considering.

This ASX ETF provides investors with exposure to global stocks that are involved in cybersecurity, which is an area becoming more critical as economies digitise. Its holdings include businesses such as CrowdStrike (NASDAQ: CRWD) and Palo Alto Networks (NASDAQ: PANW), which are helping to protect data, networks, and digital infrastructure.

Cybersecurity demand is not tied to economic cycles in the same way as many industries. As digital systems expand, security requirements tend to grow alongside them. This fund allows investors to access this theme without relying on the success of a single company or technology.

Foolish takeaway

An effective ASX portfolio does not need dozens of investments. By combining a US market ETF, an Australian quality ETF, and a thematic growth ETF, investors can build a balanced, low-maintenance portfolio that is designed to grow over time. Sometimes, less is more.

Motley Fool contributor James Mickleboro has positions in CSL and Goodman Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, BetaShares Global Cybersecurity ETF, CSL, CrowdStrike, Goodman Group, Microsoft, and iShares S&P 500 ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Palo Alto Networks. The Motley Fool Australia has recommended Amazon, Apple, CSL, CrowdStrike, Goodman Group, Microsoft, 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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