Investing can be a time-consuming activity. There are individual shares to research, broker notes to read, earnings results to follow, market moves to interpret, and endless opinions about what will happen next.
ASX exchange traded funds (ETFs) can help cut through some of that noise.
They allow investors to spread money across a basket of companies in one trade, which can make portfolio building much simpler and removes the need to pick individual stocks.
But which ASX ETFs could make buy and hold investing easy? Here are three to look closer at:
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Vanguard MSCI Index International Shares ETF (ASX: VGS)
The first ASX ETF to look at is the Vanguard MSCI Index International Shares ETF.
This fund gives investors broad exposure to developed share markets outside Australia.
That is important because the Australian market is relatively small and heavily tilted toward banks and miners.
The Vanguard MSCI Index International Shares ETF opens the portfolio to companies listed in markets such as the United States, Europe, Japan, and other developed economies.
It can give investors exposure to global technology leaders, healthcare giants, consumer brands, industrial businesses, and financial companies that are simply not available in the same depth on the local market.
It gives investors a way to reduce home bias, access global growth, and avoid relying too heavily on the fortunes of the Australian economy alone.
Betashares Australian Quality ETF (ASX: AQLT)
But if you do want some exposure to the local market, then it could be worth looking at the Betashares Australian Quality ETF.
This fund gives investors exposure to Australian companies that pass a quality screen.
That makes it quite different from simply buying the largest companies on the ASX. Instead of letting size alone determine the portfolio, the fund looks for businesses with stronger financial characteristics.
This can include companies with more attractive profitability, healthier balance sheets, and better earnings quality. That type of filter can be useful in the Australian market.
VanEck Morningstar Wide Moat ETF (ASX: MOAT)
A third ASX ETF to consider is the VanEck Morningstar Wide Moat ETF.
This fund is built around the idea that some companies have stronger defences than others.
In investing terms, a moat is what helps a business protect its profits from competitors. It might come from a powerful brand, cost advantage, network effect, valuable intellectual property, customer loyalty, or a product that is difficult to replace.
The VanEck Morningstar Wide Moat ETF applies that idea to US shares, looking for stock with lasting competitive advantages and fair valuations.
That second part is important because even great businesses can disappoint investors if they are bought at the wrong price.
For long-term investors, this ASX ETF can add a more selective style of US exposure. It is a way to own a portfolio of companies chosen for business strength rather than simply market size.
