If you have $50,000 to invest, taking a long-term buy and hold approach can be a smart way to build wealth.
Rather than trying to time the market, focusing on quality investments and holding them over many years allows compounding to do the heavy lifting. Exchange traded funds (ETFs) make this process simple by providing exposure to large groups of stocks with a single click of the button.
With that in mind, here are three ASX ETFs that could be worth considering.
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iShares S&P 500 ETF (ASX: IVV)
The first ASX ETF that could play an important role is the iShares S&P 500 ETF.
This fund provides exposure to a broad mix of leading US companies, including Apple (NASDAQ: AAPL), NVIDIA (NASDAQ: NVDA), Amazon (NASDAQ: AMZN), and Berkshire Hathaway (NYSE: BRK.B). These businesses span multiple industries and generate significant revenue globally.
NVIDIA stands out as one of the most influential companies in the index today. It designs advanced graphics processing units that are critical for artificial intelligence (AI), data centres, and high-performance computing. As demand for AI infrastructure continues to grow, NVIDIA's technology is becoming increasingly important across industries.
Owning companies like NVIDIA gives investors exposure to one of the most powerful trends shaping the global economy, which is why broad US exposure remains a popular long-term strategy.
VanEck Morningstar Wide Moat ETF (ASX: MOAT)
Another ASX ETF that could be worth considering is the VanEck Morningstar Wide Moat ETF.
This fund focuses on companies with sustainable competitive advantages and currently includes holdings such as Constellation Brands (NYSE: STZ), Airbnb (NASDAQ: ABNB), Fortinet (NASDAQ: FTNT), and Nike (NYSE: NKE).
Fortinet is a strong example of the type of business this ETF targets. The company provides cybersecurity solutions that help organisations protect their networks and data. As cyber threats become more sophisticated and widespread, demand for these services continues to grow.
With high switching costs and mission-critical products, Fortinet has built a strong position in the cybersecurity industry, supporting recurring revenue and long-term growth potential.
By combining competitive advantages with valuation discipline, this ETF appears well-placed to deliver good returns over the next decade.
Vanguard MSCI Index International Shares ETF (ASX: VGS)
A final ASX ETF to consider is the Vanguard MSCI Index International Shares ETF.
This fund provides access to a wide range of developed market stocks outside Australia, including Nestlé (SWX: NESN), Roche (SWX: ROG), Toyota (TYO: 7203), and LVMH (FRA: MOH).
Nestlé is a strong example of a long-term compounder. The company owns a portfolio of global consumer brands across food and beverages, generating steady cash flow and benefiting from consistent demand.
This type of business can help balance more growth-oriented holdings, providing stability alongside long-term earnings growth.
