How to build wealth with ASX ETFs

For many Australians, the hardest part of investing isn’t saving the money, it is deciding which shares to buy.

In fact, the fear of choosing the wrong stock can stop people from getting started altogether.

That’s where exchange-traded funds (ETFs) come in. Instead of trying to pick winners, investors can buy a single ETF and instantly gain exposure to dozens or even thousands of stocks. And with regular contributions and a long-term mindset, ETFs can be one of the most reliable ways to build meaningful wealth over time.

If you want a simple, diversified portfolio you can stick with for decades, here are three ASX ETFs that could help form the foundation.

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF is one of the most popular ETFs in Australia, and it isn’t hard to see why. It gives investors access to 500 of the largest and most influential companies in the United States. Its portfolio includes global giants such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN), along with leaders in healthcare, financials, consumer goods, and industrials.

The US market has historically been one of the strongest wealth creators in the world, driven by innovation, population growth, productivity gains, and deep capital markets. The iShares S&P 500 ETF allows Australians to tap into these long-term themes with a single trade.

Vanguard Australian Shares ETF (ASX: VAS)

The Vanguard Australian Shares ETF offers investors broad exposure to the Australian share market, tracking the nation’s largest and most established stocks. Its top holdings include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Bunnings and Kmart owner Wesfarmers Ltd (ASX: WES).

Overall, this makes the Vanguard Australian Shares ETF a simple way to own a slice of corporate Australia and could be a core building block for local investors.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A third ASX ETF to consider for wealth building is the Vanguard MSCI Index International Shares ETF. It offers exposure to more than 1,200 international stocks across developed markets, including the US, Europe, the UK, and Asia.

This ETF is designed to provide broad diversification, reducing reliance on any single country or sector. Some of its major holdings include Nestlé (SWX: NESN), Novo Nordisk (NYSE: NVO), and Toyota (TYO: 7203). By combining this fund with the others, investors can build a genuinely global portfolio without the complexity of managing multiple individual positions.

The post How to build wealth with ASX ETFs appeared first on The Motley Fool Australia.

More reading

• 3 Australian ETFs to buy and hold forever
• 3 ASX ETFs perfect for building generational wealth
• If a 30-year-old invests $1,500 a month in ASX stocks, here’s what they could have by retirement
• 3 ASX ETFs that could quietly make you rich
• How to build a $100,000 ASX share portfolio starting at zero

Motley Fool contributor James Mickleboro 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, Microsoft, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nestlé and Novo Nordisk and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Amazon, Apple, BHP Group, Microsoft, Vanguard Msci Index International Shares ETF, Wesfarmers, 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.