Future-proofing: The ASX ETF Aussie parents were buying for their kids in 2022

Investing great Warren Buffett is widely reported to have bought his first stock at age 11. Now, the ‘Oracle of Omaha’ has a more than US$100 billion fortune.

It’s no wonder, then, that many Aussie parents looked to the stock market to kick-start their kids’ wealth in 2022. And in doing so, they apparently turned to one particular ASX exchange-traded fund (ETF).

The ASX ETF parents bought on behalf of their kids in 2022

Imagine waking up on your 18th birthday with a portfolio of ASX shares and ETFs waiting for you. Oh, the compounding that could have taken place over the years before one could walk, talk, or get a driver’s licence!

That might be the reality for many young Australians whose parents squirrelled money into the stock market on their behalf in 2022. But what investments were parents buying for their youngsters?

Well, those investing on behalf of their kids in 2022 turned to the Vanguard Australian Shares Index ETF (ASX: VAS). That’s according to data from trading and superannuation platform Superhero.

It recently released its annual Year in Trades review, finding the Vanguard Australian Shares ETF was the most traded Aussie ETF among minor accounts. Minor accounts can be opened by parents investing on behalf of their children.

The Vanguard Australian Shares Index ETF struggled alongside the broader market in 2022. It has fallen 8% year to date. Meanwhile, the benchmark All Ordinaries Index (ASX: XAO) only posted a slightly better performance, falling 7%.

But such volatility didn’t deter investors. Superhero CEO and co-founder John Winters said:

Over the last two years … we’ve seen our customers grow and evolve. There’s an understanding that markets work in cycles and as such the volatility we saw this year has been accepted as a natural market event – and an opportunity to continue building their wealth through investing.

And it wasn’t just Aussie ETFs that savvy parents were snapping up for their kids this year.

The Vanguard 500 Index Fund ETF (NYSEMKT: VOO) came in as the most popular US ETF among Superhero’s minor accounts. Meanwhile, Core Lithium Ltd (ASX: CXO) was the most traded ASX share.

Interestingly, Gen Z has also seemingly developed a taste for ETFs. The Betashares Nasdaq 100 ETF (ASX: NDQ) was the most traded stock among 18- to 25-year-olds using the platform and the Vanguard Australian Shares Index ETF came in second.

The post Future-proofing: The ASX ETF Aussie parents were buying for their kids in 2022 appeared first on The Motley Fool Australia.

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More reading

• Is now really the time to buy ASX 200 shares?
• Could the VAS ETF outperform the BHP share price in 2023?
• Can the Vanguard Australian Shares ETF deliver more outperformance in December?
• It took me years to realise I’m no investing genius like Warren Buffett
• The Vanguard Australian Shares Index ETF soared in November, beating the ASX 200

Motley Fool contributor Brooke Cooper 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 BetaShares Nasdaq 100 ETF and Vanguard Index Funds – Vanguard S&p 500 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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