Many, though not all, Australian exchange-traded funds (ETFs) are suited to investors who just wish to buy an investment and hold it passively for the rest of their lives. A simple fund that holds, say, the largest 300 stocks listed on the Australian share market, would arguably be aptly suited for such a goal. An ASX ETF that holds oil futures, perhaps less so.
With this in mind, let’s discuss three Australian ETFs that I believe any investor can purchase today and hold for decades to come.
Three Australian ETFs that anyone can buy and hold forever
Vanguard Australian Shares Index ETF (ASX: VAS)
First up, we have this Australian ETF from Vanguard. This fund is one that does indeed hold the largest 300 stocks listed on the Australian markets. That’s everything from Commonwealth Bank of Australia (ASX: TLS) and Telstra Group Ltd (ASX: TLS) to Coles Group Ltd (ASX: COL) and Ampol Ltd (ASX: ALD).
Decades of data have shown that simply investing in the Australian share market has produced relatively high returns for investors if we use a long-term lens. Australian shares have historically delivered decent capital growth, strong dividend income, and valuable franking credits. Investors can buy VAS units today, safe in the knowledge that while the largest 300 companies in Australia will move over time, this Australian ETF will move with them by watering the winners and weeding out the losers.
iShares S&P 500 ETF (ASX: IVV)
This next Australian ETF works similarly to VAS. However, instead of holding stakes in the largest 300 Australian shares, it owns stakes in the largest 500 companies listed on the American stock market. That’s everything from Apple, Amazon, Netflix, Microsoft, Mastercard, Walmart, Coca-Cola Co, and ExxonMobil.
The US has also been a historically lucrative market for long-term investors. Even the legendary Warren Buffett has repeatedly stated that he believes an S&P 500 Index (SP: .INX) fund like this one is the best choice for most investors.
Given that the US is still home to the vast majority of the world’s most successful businesses, I would be happy to buy and hold this ETF for the rest of my life.
Vanguard All-World ex-US Shares Index ETF (ASX: VEU)
Both the Australian and American markets are great places to invest, at least historically speaking. However, the more prudent long-term investors may wish to add another layer of diversification to their forever portfolios. That’s where the Vanguard All-World ex-US Shares Index ETF can play a useful role.
This is a highly diversified Australian ETF, holding thousands of underlying stocks from dozens of countries. These include Japan, the United Kingdom, Canada, Taiwan, India, Germany, Singapore, Mexico, and Norway, amongst many others. Some of the individual stocks that make up this Australian ETF include Taiwan Semiconductor Manufacturing Co, Tencent Holdings, AstraZeneca plc, and Samsung Electronics Co.
Again, this ETF is designed to evolve with its underlying markets over time. I would be happy to hold it for an indefinite period as a counterweight to the other two ETFs we’ve discussed today.
The post 3 Australian ETFs to buy and hold forever appeared first on The Motley Fool Australia.
Should you invest $1,000 in iShares S&P 500 ETF right now?
Before you buy iShares S&P 500 ETF shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and iShares S&P 500 ETF wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 18 November 2025
.custom-cta-button p {
margin-bottom: 0 !important;
}
More reading
- 5 excellent ASX ETFs to supercharge your portfolio
- 3 unstoppable Vanguard ETFs to buy even if there’s a stock market sell-off in 2026
- 3 strong ASX ETFs to buy for your SMSF
- 5 fantastic ASX ETFs for beginners in 2026
- Keen to invest outside the ASX? UBS reveals 2026 forecast for US, China, and Euro stocks
Motley Fool contributor Sebastian Bowen has positions in Amazon, Apple, Coca-Cola, Mastercard, Microsoft, Netflix, and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, AstraZeneca Plc, Mastercard, Microsoft, Netflix, Taiwan Semiconductor Manufacturing, Tencent, Vanguard International Equity Index Funds – Vanguard Ftse All-World ex-US ETF, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Amazon, Apple, Mastercard, Microsoft, Netflix, 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.
Leave a Reply