3 world-class ASX ETFs to buy and hold

For many investors, the goal is simple. Own great businesses and hold them long enough for compounding to work its magic.

The challenge is that identifying those businesses individually can be difficult. That is where exchange traded funds (ETFs) can be incredibly useful. With a single investment, they provide exposure to entire groups of companies that are benefiting from powerful economic trends.

Here are three world-class ASX ETFs that could be worth buying and holding for the long term.

iShares S&P 500 ETF (ASX: IVV)

If there is one ETF that represents the engine room of global capitalism, it is the iShares S&P 500 ETF.

This fund gives investors exposure to 500 of the largest and most influential companies listed in the United States. These businesses span industries ranging from technology and healthcare to finance and consumer goods.

Inside the portfolio are companies that have reshaped entire industries, including Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN). There are also global consumer giants such as McDonald’s (NYSE: MCD) and Visa (NYSE: V).

Rather than betting on a single company to dominate the future, the iShares S&P 500 ETF spreads exposure across the entire ecosystem of American corporate leadership. Over the long run, the S&P 500 has proven to be one of the most powerful wealth-building indices in the world.

Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

Another ASX ETF that could be worth considering is the Betashares Global Robotics and Artificial Intelligence ETF.

Rather than focusing on broad markets, this fund targets companies involved in automation, robotics, and artificial intelligence technologies. These industries are increasingly shaping how factories operate, how goods are delivered, and how businesses analyse data.

The portfolio includes companies working across different parts of the automation ecosystem. For example, Nvidia (NASDAQ: NVDA) supplies the powerful chips used in AI systems, Intuitive Surgical (NASDAQ: ISRG) develops robotic surgical equipment, and ABB Ltd (SWX: ABBN) specialises in industrial automation.

These technologies are already transforming industries such as manufacturing, healthcare, logistics, and transportation. As businesses continue investing heavily in automation and efficiency, companies operating in these areas could see strong long-term demand. This fund was recently recommended by the team at Betashares.

Betashares Australian Quality ETF (ASX: AQLT)

While global exposure is important, many investors also want to maintain an allocation to Australian companies.

The Betashares Australian Quality ETF offers a different way to approach the local market. Instead of simply tracking the largest ASX shares, the fund focuses on businesses with strong financial characteristics.

It screens companies based on factors such as profitability, earnings stability, and balance sheet strength. The idea is to tilt the portfolio toward businesses that consistently generate strong returns and manage their finances conservatively.

The ETF’s holdings include well-known Australian companies such as CSL Ltd (ASX: CSL), Goodman Group (ASX: GMG), and Macquarie Group Ltd (ASX: MQG). These businesses have built strong reputations for delivering consistent earnings growth and high returns on capital.

By emphasising quality rather than size alone, the Betashares Australian Quality ETF aims to capture the long-term compounding potential of Australia’s strongest companies. It was also recently recommended by the fund manager.

The post 3 world-class ASX ETFs to buy and hold appeared first on The Motley Fool Australia.

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• The $10,000 ASX share portfolio I’d build for a 25-year-old today

Motley Fool contributor James Mickleboro has positions in CSL and Goodman Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, CSL, Goodman Group, Intuitive Surgical, Macquarie Group, Microsoft, Nvidia, Visa, and iShares S&P 500 ETF and is short shares of Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2028 $520 calls on Intuitive Surgical and short January 2028 $530 calls on Intuitive Surgical. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Amazon, Apple, CSL, Goodman Group, Microsoft, Nvidia, Visa, 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.