If you are looking to build wealth over the long term but aren’t a fan of stock picking, then it could be worth considering exchange traded funds (ETFs).

They allow investors to back long-term ideas without needing to pick every individual winner.

With that in mind, here are three ASX ETFs that could be buy-and-hold options for the next decade.

iShares S&P 500 AUD ETF (ASX: IVV)

The iShares S&P 500 ETF gives investors a simple way to own a large slice of the American share market.

“It offers exposure to companies selling software, pharmaceuticals, devices, advertising, financial services, entertainment, and consumer products to households and businesses around the world.”

That global reach is what makes the S&P 500 so attractive. Many of its largest companies earn revenue far beyond the United States, so investors are buying into businesses that influence spending habits, workplaces, healthcare systems, and technology adoption across many countries.

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

The Betashares Global Robotics and Artificial Intelligence ETF is focused on the physical rollout of automation across the global economy.

The fund owns companies involved in industrial robots, autonomous systems, drones, smart machinery, and artificial intelligence-enabled equipment.

The long-term opportunity is being driven by a simple problem. Many industries need to become more productive, but labour, time, safety, and precision remain major constraints.

Robotics and automation can help address those constraints in factories, hospitals, warehouses, farms, logistics networks, and other work environments.

Over the next decade, the idea of machines doing more complex work in more places could become much less futuristic and much more normal.

It was recently recommended by analysts at Betashares.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

Finally, the Betashares Asia Technology Tigers ETF could suit investors who want technology exposure beyond the usual US names.

The Asian market plays a huge role in the digital economy. It is home to major semiconductor companies, hardware manufacturers, ecommerce platforms, gaming businesses, and internet giants.

That gives this fund a different flavour from a Nasdaq-focused ETF.

It is tied to the region where much of the world’s digital hardware is made, where online platforms serve enormous populations, and where consumer technology adoption can happen at scale.

This ASX ETF is arguably a higher-risk option because it is concentrated in one region and one sector, but the long-term opportunity remains significant.

This fund was also recently recommended by the team at Betashares.

The post 3 ASX ETFs to buy and hold for 10 years appeared first on The Motley Fool Australia.

More reading

• SpaceX will be included in the Nasdaq index this week. Here’s what that means for ASX investors
• The currency-hedged ASX ETFs magnifying dividends by up to 10x this season
• Own NDQ, ARMR, HACK or other Betashares ASX ETFs? Dividends just announced
• Own ASX IVV or other iShares ETFs? Here is your next dividend
• The ASX ETF I’d buy if I wanted to get rich slowly

Motley Fool contributor James Mickleboro has positions in Betashares Capital – Asia Technology Tigers Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended iShares S&P 500 ETF. The Motley Fool Australia has recommended 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.

ASX gold stock Genesis Minerals Ltd (ASX: GMD) is making headlines after it proposed a merger with Vault Minerals Ltd (ASX: VAU)

The merger would create a dominant gold producer valued at $12.6 billion.

What is the proposal?

Genesis has made a binding proposal to acquire all Vault shares via a scheme of arrangement.

The offer includes 0.7629 new Genesis shares plus A$0.475 in cash per Vault share, implying total consideration of A$5.274 per Vault share.

Vault shareholders would own 40.2% of the enlarged Genesis Group; Genesis shareholders would own 59.8%.

Estimated post-tax synergies of approximately A$2.0 billion, with A$1.5 billion unique to this transaction over 10 years.

The combined group would have 33.6 million ounces in mineral resources and 9.4 million ounces in ore reserves.

The proposed deal values Vault at A$5.6 billion and would create an Australian gold major with pro-forma annual production of 600–700,000 ounces and a market capitalisation of A$12.6 billion.

It is important to note the deal is not yet confirmed. Ramelius Resources Ltd (ASX: RMS) has matching rights that could affect whether the deal proceeds.

Bell Potter weighs in on ASX gold stock’s future

Following the proposal, the team at Bell Potter provided updated guidance on this ASX gold stock. 

It appears the broker sees the deal as a positive. 

The biggest benefit according to the broker is that Genesis could avoid spending about A$715 million building a new processing plant at Tower Hill. 

Instead, it could process Tower Hill ore at Vault’s existing King of the Hills mill.

Bell Potter believes this is a much smarter use of capital because Genesis’ main limitation is processing capacity, not finding more gold.

Buy recommendation intact 

Bell Potter has retained its buy recommendation on this ASX gold stock. 

It slightly lowered its price target to $9.75 (previously $9.90). 

From yesterday’s closing price of $6.03, Bell Potter’s updated price target indicates 61% upside from current levels.

The price target was reduced only because of Genesis’ recent Magnetic Resources acquisition, not because Bell Potter is less positive on the merger.

In short, Bell Potter sees the merger as a major positive because it would create a larger, cash-rich gold producer while saving roughly A$715 million by using existing infrastructure instead of building a new mill.

The Proposed Scheme is not subject to due diligence or financing conditions and offers a materially better strategic and financial outcome than the status quo, in our view.

 

The post This ASX gold stock could soar 60% thanks to a big announcement appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Gold, cash, and a takeover twist: Why this ASX 200 gold stock is climbing today
• Move over Regis Resources! Vault Minerals shares leaping 11% as Genesis Minerals’ lobs $5.6 billion takeover bid
• Genesis Minerals proposes Vault merger to create gold powerhouse

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Superannuation has proven to be a highly effective tool for investors to generate returns at a lower tax rate. It can be very effective for investors wanting passive income.

Pleasingly, superannuation has a lower tax rate than many individuals, trusts and companies. The nature of the superannuation structure means it’s very easy to invest for the long term.

In my eyes, receiving passive income is one of the best parts of owning shares. It’s really rewarding to receive passive income by owning ASX shares. Getting paid money into our bank accounts every year for no ongoing effort sounds good to me.

One of the major benefits of superannuation is that Australians lose less of the passive income return to tax. It’s important to keep in mind that it’s the after-tax passive income that investors should focus on.

If a full-time working Australian receives passive income in their name, they could lose a third (or more) of that dividend income to income tax, therefore making the passive income return less appealing.

These days, superannuation may well be the most appealing place to invest for passive income because of that lower tax rate in the accumulation phase of life, compared to the tax rate of an individual’s tax rate as a full-time earner.

In retirement, an Australian’s superannuation tax rate could be as low as 0%. An investor can’t find a lower tax rate than that.

Of course, every household’s taxation situation may be different, so I’ll just talk about targeting a particular dividend goal and leave tax rates behind for the rest of the article.

How much is needed in superannuation for $70,000 of annual passive income?

Receiving $70,000 in dividends each year sounds really good to me. While I have a long way to go to reach that level of cash flow, it’s something i’d love to achieve.

Australian superannuation investors need to think about what sort of investments they want to own and the size of the dividend yield that comes with that.

In my view, ASX shares are the best choice for passive income, partly due to the bonus of the attached franking credits.

Therefore, the required superannuation balance to earn $60,000 annually will depend on the dividend yield of the portfolio.

For example, a portfolio with a 5% dividend would require $1.4 million, a 4% dividend yield would require a $1.75 million portfolio and a 7% dividend would require a $1 million portfolio.

It really depends on which ASX shares investors choose.

The types of ASX dividend shares I’d buy

There are plenty of compelling ideas on the ASX that can deliver good dividend yields.

For example, there are discounted real estate investment trusts (REITs), excellent listed investment companies (LICs) and great operating companies.

Some of the names I’d look at with low-to-medium dividend yields but good growth and/or stability include Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Wesfarmers Ltd (ASX: WES), Lovisa Holdings Ltd (ASX: LOV), Centuria Industrial REIT (ASX: CIP), L1 Long Short Fund Ltd (ASX: LSF) and APA Group (ASX: APA).

Investments with a higher dividend yield include names like  MFF Capital Investments Ltd (ASX: MFF), WCM Global Growth Ltd (ASX: WQG), Future Generation Global Ltd (ASX: FGG), Dexus Industria REIT (ASX: DXI), Telstra Group Ltd (ASX: TLS) and Charter Hall Long WALE REIT (ASX: CLW).

The post How much is needed in superannuation to target a $70,000 annual passive income? appeared first on The Motley Fool Australia.

More reading

• 5 of the best investments on the ASX right now to complement your superannuation
• 1 ASX dividend stock down 50% I’d buy right now
• If I invest $8,000 in Telstra shares, how much passive income will I receive in 2027?
• How much do I need in superannuation to receive $5,500 per month in passive income?
• 10 of the best ASX shares to buy in FY 2027

Motley Fool contributor Tristan Harrison has positions in Future Generation Global, L1 Long Short Fund, Mff Capital Investments, Washington H. Soul Pattinson and Company Limited, and Wcm Global Growth. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group, Mff Capital Investments, Telstra Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Lovisa and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.