The ASX ETF I'd buy if I wanted to get rich slowly

Getting rich slowly may not sound exciting, but it can be one of the most realistic ways to build wealth.

I think getting rich slowly is underrated. It does not sound exciting, and it probably will not make headlines in the same way as a soaring ASX growth stock. But I think it is one of the most realistic ways to build serious wealth in the share market.

That is why I would consider buying iShares S&P 500 AUD ETF (ASX: IVV).

This exchange-traded fund (ETF) gives investors exposure to the S&P 500, which includes many of the largest listed companies in the United States.

For Australian investors, I think that could be a strong addition to a long-term portfolio.

A couple are happy sitting on their yacht.

Image source: Getty Images

Why this ETF appeals to me

The ASX has some excellent businesses, but it is not especially deep in global technology, software, digital advertising, semiconductors, cloud computing, and major consumer platforms.

The US market has much more of that exposure.

By owning the IVV, ETF investors can gain access to companies such as Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta Platforms, and many other global leaders through one ASX-listed investment.

That does not mean every company in the fund will perform well. Some will disappoint, and market leaders can change over time.

But that is part of the appeal of an index ETF. Investors do not have to pick the winner. They can own a broad basket and let the index adjust as businesses rise and fall in importance.

A simple compounding tool

I like this ASX ETF because it can be used simply.

An investor could buy it once, add to it regularly, reinvest distributions, and let time do a lot of the work.

That can be especially useful for people who do not want to spend every week analysing individual companies.

The S&P 500 will still have difficult periods. It can fall sharply when investors become worried about valuations, interest rates, earnings, or the economy. Currency movements can also affect Australian returns.

But over long periods, I think exposure to productive global businesses is a sensible place to put money to work.

The key is patience. This is not an ETF I would buy for a quick trade. I would buy it as a long-term wealth-building asset.

Why I'd buy it now

Some investors may worry that US shares have already performed strongly.

I understand that concern. The S&P 500 is not always cheap, and technology giants can become expensive when enthusiasm is high.

But I think waiting for the perfect entry point can be a costly habit.

A long-term investor does not need to invest everything at once. They could build a position gradually, especially during market pullbacks.

What I like about the IVV ETF is that it provides exposure to companies with scale, strong brands, global reach, and large reinvestment opportunities. Those qualities can support wealth creation over many years.

Foolish takeaway

The iShares S&P 500 ETF is not an exciting ETF, but I think it is one of the best ASX-listed options for investors who want to build wealth slowly.

It gives Australians easy access to many of the world's most influential companies and removes the pressure of trying to pick every winner individually.

There will be volatility along the way. But for investors who can keep adding money and stay patient, I think this ETF could be a simple and effective way to build wealth slowly.

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Amazon, Apple, Meta Platforms, Microsoft, Nvidia, 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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