The lazy investor’s guide to ASX ETFs

Not everyone wants to analyse balance sheets, read earnings transcripts, or track broker price targets.

Some investors just want a simple, low-maintenance way to grow their wealth over time without constantly checking the market. If that sounds like you, ASX exchange-traded funds (ETFs) might be one of the easiest ways to invest.

Here’s how I think about it.

Step 1: Accept that simplicity usually wins

The lazy approach isn’t about being careless. It’s about recognising that most people don’t have the time or interest to consistently pick individual stocks.

ETFs allow you to buy a basket of shares in a single trade. Instead of trying to pick the next winning stock, you own a slice of an entire market or sector.

For example, the Vanguard Australian Shares Index ETF (ASX: VAS) gives exposure to a broad range of large Australian stocks in one simple holding. Meanwhile, the Vanguard MSCI Index International Shares ETF (ASX: VGS) provides access to around 1,300 stocks across developed markets outside Australia.

With just two ETFs, you can own a part of over 1,500 businesses globally.

That’s not lazy. That’s efficient.

Step 2: Focus on diversification

The beauty of ETFs is that they remove the need to be right about a single company.

If one stock disappoints, it is usually offset by others performing well. That diversification smooths out the ride and makes it easier to stay invested during market volatility.

If I wanted something even more hands-off, I might consider a diversified fund like the Vanguard Diversified High Growth Index ETF (ASX: VDHG), which combines Australian and international shares with bonds in one portfolio.

Instead of juggling multiple holdings, you can hold one ETF and let it do the work.

Step 3: Automate and forget (mostly)

The real power of a lazy strategy comes from consistency.

Rather than trying to time the market, I’d set up regular monthly investments. Whether it’s $250, $500, or $1,000 a month, the key is to keep buying through good times and bad.

This approach reduces the pressure to pick the bottom, averages out your entry price over time, and builds discipline into your investing process.

Then, instead of reacting to every headline, you let compounding do the hard work.

Step 4: Keep costs low

One of the biggest advantages of index ETFs is cost.

Many broad-market ETFs charge relatively low management fees compared to actively managed funds. Over decades, even small fee differences can significantly impact your end result.

For a long-term investor, keeping costs low is one of the easiest ways to tilt the odds in your favour.

Step 5: Stay invested

The hardest part of investing is not choosing the ETF. It is staying invested when markets fall.

History shows that share markets experience corrections and bear markets regularly. But over long periods, they have tended to rise.

The lazy investor’s edge is not superior stock picking. It is patience.

By owning diversified ASX ETFs, reinvesting dividends, and continuing to contribute during downturns, you give yourself exposure to long-term economic growth without the stress of constant decision-making.

Foolish Takeaway

You don’t need to be glued to the screen to build wealth.

A simple portfolio of broad ASX ETFs, funded regularly and held for years, can be a powerful strategy. It may not feel exciting, but for many investors, boring and consistent beats complicated and reactive.

Sometimes, the laziest approach is also the smartest.

The post The lazy investor’s guide to ASX ETFs appeared first on The Motley Fool Australia.

More reading

• If I had to build an ASX share portfolio from scratch today, here’s how I’d do it
• How I’d Invest $25,000 in Vanguard ETFs today
• 5 amazing ASX ETFs to buy and hold for 20 years
• The easy way for Aussies to invest globally on the ASX
• The sleep easy ETF portfolio to survive market crashes

Motley Fool contributor Grace Alvino has positions in Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.