If I could buy only one ASX ETF for the next 10 years, this could be it

There are plenty of ASX exchange traded funds (ETFs) that look attractive right now.

Some offer exposure to artificial intelligence. Others focus on cybersecurity, defence, dividends, or emerging markets.

But if I had to choose just one ETF to buy and hold for the next decade, I would keep things simple.

My pick would likely be the Vanguard MSCI Index International Shares ETF (ASX: VGS).

Why this ASX ETF stands out

This popular fund gives investors exposure to a large portfolio of international shares across developed markets.

That includes companies listed in the United States, Europe, Japan, Canada, and other major global economies. In one ASX trade, investors can access over one thousand businesses across many sectors.

The Australian share market is relatively concentrated. Banks and resources companies make up a large part of the local index, which can leave investors heavily exposed to a small number of sectors.

The Vanguard MSCI Index International Shares ETF helps solve that problem.

Its holdings include global leaders such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and NVIDIA (NASDAQ: NVDA), as well as companies across healthcare, consumer goods, financials, industrials, and communications.

A simple way to go global

The strength of this ASX ETF is that investors do not need to predict which country or sector will win over the next 10 years.

If US technology companies continue to dominate, this fund has exposure to them. If European healthcare or Japanese industrial companies perform well, the fund has exposure there too.

That broad reach makes it useful as a long-term holding.

It is also a much simpler approach than trying to buy individual overseas shares, manage currency conversions, or follow dozens of offshore companies.

Why I’d hold it for a decade

A 10-year holding period rewards patience and diversification.

There will almost certainly be market falls along the way. Some regions will disappoint. Some sectors will go through weak periods. But a fund like the Vanguard MSCI Index International Shares ETF spreads risk across a wide range of companies and economies.

But it is worth remembering that this does not make it a risk-free investment. Share markets can be volatile, and international shares will move with global conditions.

But for investors wanting a straightforward way to participate in global growth, this ASX ETF is hard to overlook.

It offers scale, diversification, global market exposure, and a simple structure. That combination is why, if I could buy only one ASX ETF for the next decade, it would be very high on my list.

The post If I could buy only one ASX ETF for the next 10 years, this could be it appeared first on The Motley Fool Australia.

More reading

• Could this ASX ETF be the easiest way to invest in AI?
• VGS vs IVV: Which ASX ETF is better?
• 5 things to watch on the ASX 200 on Thursday
• How to build a $150,000 ASX share portfolio from scratch
• 2 of the best ASX ETFs to buy and hold

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 Apple, Microsoft, and Nvidia. The Motley Fool Australia has recommended Apple, Microsoft, Nvidia, and 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.