3 ASX ETFs for a classic Warren Buffet-style portfolio

Warren Buffett has a simple message for everyday investors: stop trying to outsmart the market and just own it.

The legendary investor has long argued that most people are better off buying low-cost index funds, like the 3 ASX ETFs discussed below, and holding them for decades. No trading, no forecasting, no fads necessary. Just disciplined, long-term ownership of great businesses.

If you want to apply Buffett’s philosophy on the ASX today, you don’t need 20 ETFs. You don’t need thematic exposure to AI, uranium, or crypto. You just need a simple, diversified foundation.

Here are 3 ASX ETFs that could form a classic Warren Buffett-style portfolio.

Vanguard Australian Shares Index ETF (ASX: VAS)

This is your home-ground anchor. This $23 billion ASX ETF gives you exposure to around 300 of Australia’s largest listed companies and heavyweights like BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA).

It also includes other banks, miners, healthcare leaders, and industrial giants that dominate the local market. It’s low cost, highly diversified, and built for long-term compounding.

Yes, the Australian market is concentrated in financials and resources. But it also delivers attractive dividend income and franking credits, which many local investors value. In a Buffett-style portfolio, VAS provides stability, income, and broad exposure to the domestic economy.

iShares Core S&P 500 ETF (ASX: IVV)

Buffett has repeatedly said that a simple S&P 500 Index (SP: .INX) fund is the best bet for most investors. This ASX EFT tracks 500 of the largest US companies. Think global leaders in technology such as Apple Inc (NASDAQ: AAPL) and Microsoft Corp (NASDAQ: MSFT), healthcare, consumer brands, and financial services.

This ASX ETF gives you exposure to some of the most profitable and innovative businesses in the world. Over long periods, the US market has delivered powerful earnings growth and strong shareholder returns.

If you believe in the resilience of American enterprise, IVV deserves a major allocation in a Buffett-inspired portfolio.

Vanguard MSCI International Shares Index ETF (ASX: VGS)

This popular ASX ETF invests across developed markets outside Australia, including the US, Europe, and parts of Asia. It holds thousands of international companies, like tech giant Nvidia Corp (NASDAQ: NVDA) and the world’s largest food company, Nestlé S.A. (SWX: NESN). It spreads your risk across regions and industries. While the US often grabs the headlines, global diversification reduces reliance on a single economy and smooths returns over time.

Foolish Takeaway

Three ETFs. Broad diversification. Decades of compounding.

VAS gives you Australian exposure and income. IVV delivers concentrated exposure to the world’s largest and most dynamic economy. VGS broadens your global footprint across developed markets.

You could weight them however suits your risk tolerance, but many growth-focused investors might lean heavier toward IVV and VGS, with a smaller allocation to VAS for home bias and dividends.

The key isn’t picking the perfect percentage. It’s sticking with the strategy.

Buffett’s edge isn’t complexity — it’s discipline. Keep costs low. Reinvest dividends. Ignore market noise. Rebalance occasionally. And most importantly, stay invested when markets wobble.

That’s about as Buffett as it gets on the ASX.

The post 3 ASX ETFs for a classic Warren Buffet-style portfolio appeared first on The Motley Fool Australia.

More reading

• BHP Group posts 28% profit jump and higher dividend in half-year earnings
• 3 excellent ASX ETFs to buy and hold for 10 years
• 5 things to watch on the ASX 200 on Tuesday
• Here’s the earnings forecast out to 2030 for CBA shares
• Which is the better buy: the NDQ ETF or the VAS ETF?

Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nestlé. The Motley Fool Australia has recommended Apple, BHP Group, Microsoft, Nvidia, Vanguard Msci Index International Shares ETF, 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.