For most Australians, building wealth starts with the income they earn from working.

But I like the idea of gradually building something alongside it.

ASX shares can give investors ownership in businesses that may grow, pay dividends, and become more valuable over time. Given enough patience, that portfolio could eventually become a substantial asset in its own right.

I would invest in ASX shares regularly

I would start by making investing a habit.

Rather than waiting for the perfect moment, I would aim to put a manageable amount into the share market regularly and gradually build my ownership of strong businesses.

The early years may not look particularly exciting. A few thousand dollars invested here and there can feel small compared with a salary or a home.

But each investment adds another asset working on my behalf.

And as the portfolio grows, dividends can be reinvested into more shares, while successful companies can increase in value. Eventually, the returns generated by the portfolio itself can become a meaningful part of the wealth-building process.

I would own businesses that can compound

For the core of the portfolio, I would look for ASX shares with potential to become more valuable over many years.

TechnologyOne Ltd (ASX: TNE) is the type of business I have in mind.

Its enterprise software is deeply embedded within organisations such as councils, universities, and government bodies. It can grow by attracting more customers, expanding internationally, and encouraging existing customers to use more of its products.

If a company can repeatedly reinvest in opportunities like these, earnings can grow and shareholders can benefit from that progress over a long period.

I would not expect every investment to produce spectacular returns. I would be looking for a collection of strong businesses that can steadily do more over time.

Dividends can help as well

Capital growth would be a major part of my plan, but I would not ignore income.

A company such as Macquarie Group Ltd (ASX: MQG) can potentially grow over time while also returning cash to shareholders through dividends.

During the wealth-building stage, I would generally reinvest that income.

This means the dividends buy more shares, which can generate further dividends in later years. The effect may look small initially, but decades of reinvestment can make a considerable difference.

Later in life, the same portfolio could potentially provide income without requiring every share to be sold.

That gives me another reason to think of share investing as building a second pool of wealth rather than simply trying to make money from share price movements.

I would spread the risk

I would also avoid relying too heavily on one company or sector.

An Australian portfolio could include businesses exposed to healthcare, technology, financial services, resources, consumer spending, infrastructure, and overseas markets.

ResMed Inc. (ASX: RMD), for example, gives investors exposure to global demand for sleep apnoea treatment, while BHP Group Ltd (ASX: BHP) provides ownership of major mining assets supplying commodities used around the world.

I think owning a collection of strong businesses makes it easier to stay invested when one company or industry goes through a difficult period.

That patience is important because building meaningful wealth through shares is usually a long process.

Foolish takeaway

I would approach ASX investing as something I build gradually in the background for years.

Every regular investment adds another small piece of ownership, while business growth and reinvested dividends can make that portfolio increasingly valuable over time.

The goal would be to reach a point where my wealth is no longer being built solely from the money I earn from working.

I think a patient portfolio of quality ASX shares can be a powerful way to get there.

The post How I’d use ASX shares to build a second source of wealth appeared first on The Motley Fool Australia.

More reading

• 8 ASX mining shares hitting 52-week highs today
• Buy, hold, sell: Judo Capital, Healius, BHP shares
• BHP share price hits new record high
• $6,000 invested in BHP shares 12 months ago is now worth….
• VGS vs VHY: Which Vanguard ETF comes out on top?

Motley Fool contributor Grace Alvino 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 Macquarie Group and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended BHP Group and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Several ASX mining shares, including BHP Group Ltd (ASX: BHP), reached new 52-week highs on Tuesday.

The BHP share price reached a record $68.22, up 1.6% for the day and 56% over 12 months, in earlier trading.

This pushed two ASX mining exchange-traded funds (ETFs) to record highs as well, given their 40% weighting to BHP shares.

They are SPDR S&P/ASX 200 Resources ETF (ASX: OZR) and Betashares Australian Resources Sector ETF (ASX: QRE).

Meanwhile on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is 0.6% higher at 9,153.6 points.

As earnings season continues, let’s look at the other ASX mining shares reaching new peaks today.

Sandfire Resources Ltd (ASX: SFR)

The ASX 200’s largest pure-play copper mining share rose 2% to a record $22.89 today.

Genesis Minerals Ltd (ASX: GMD)

ASX 200 gold mining share, Genesis Minerals rose 1.75% to a 52-week high of $8.72 per share.

Capricorn Metals Ltd (ASX: CMM)

Fellow gold mining share, Capricorn Metals, spiked 1.6% to a new record of $18.02 today.

Andean Silver Ltd (ASX: ASL)

ASX silver mining share, Andean Silver increased 6.2% to a record $2.90 per share.

Vault Minerals Ltd (ASX: VAU)

Gold and copper mining share, Vault Minerals rose to a 52-week peak of $7.06, up 1.9%, on Tuesday.

Alkane Resources Ltd (ASX: ALK)

Gold and antimony miner Alkane Resources hit a 52-week high of $1.91 per share.

Carnaby Resources Ltd (ASX: CNB)

Copper and gold miner Carnaby Resources rose 4% to a 52-week high of $1.05 per share.

What about the ASX mining ETFs?

QRE and OZR were among the 6 top-performing ASX ETFs of FY26 amid the new mining boom underway in Australia.

The OZR ETF rose 1.1% to an all-time high of $19.38 on Tuesday.

OZR ETF delivered an exceptional total one-year return of 51% in FY26. The trailing distribution yield was 2.4%.

This ASX ETF seeks to mirror the performance of the S&P/ASX 200 Resources Index.

After BHP (40%), its other top holdings are Rio Tinto Ltd (ASX: RIO) (7.7%) and Woodside Energy Group Ltd (ASX: WDS) (7.4%).

The QRE ETF increased 1.9% to a record $11.16 today.

QRE ETF produced a similarly impressive total one-year return of 50% in FY26. The trailing distribution yield was 2.3%.

This ASX ETF seeks to track the Solactive Australia Resources Sector Index.

After BHP, its next top holdings are also Woodside (7.5%) and Rio Tinto shares (7.4%).

Both ETFs invest predominantly in ASX mining shares, along with oil and gas suppliers, and other resources companies like steel makers.

QRE also invests 2.5% in utilities, which is a key difference to OZR, although Origin Energy Ltd (ASX: ORG) is the only stock.

The post 8 ASX mining shares hitting 52-week highs today appeared first on The Motley Fool Australia.

More reading

• How I’d use ASX shares to build a second source of wealth
• Buy, hold, sell: Judo Capital, Healius, BHP shares
• BHP share price hits new record high
• $6,000 invested in BHP shares 12 months ago is now worth….
• VGS vs VHY: Which Vanguard ETF comes out on top?

Motley Fool contributor Bronwyn Allen 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This morning, we discussed the most popular exchange-traded fund (ETF) on the ASX for investors wishing to invest in the US markets. The iShares S&P 500 ETF (ASX: IVV) easily takes that crown, with over $14 billion in funds currently under management. But could the Vanguard Morningstar US Total Market Shares Index ETF (ASX: VTS) be a better choice for that slice of America in an ASX portfolio?

In theory, the iShares S&P 500 ETF and the Vanguard US Total Market ETF are quite different.

For one, IVV is an index fund that tracks the S&P 500 Index. This flagship index represents the largest 500 stocks on the US markets, weighted by market capitalisation (size).

Meanwhile, the VTS ETF tracks a far less common index, the Morningstar U.S. Total Market Index. Instead of following just the largest 500 stocks on US markets, this index tracks more than 4,000. As such, it offers significantly more coverage of mid- and small-cap US stocks than IVV.

Is this enough to make VTS the better choice over IVV? Well, diversification is usually a good thing for investors seeking to increase their exposure to an entire market.

However, as we touched on above, the differences between the IVV and VTS ETFs are more theoretical than practical. That’s because, while both funds have different scopes, they both weight their portfolios by market capitalisation. That means the largest shares take up far more room than the smaller ones in both funds. Since both IVV and VTS both share the same stocks at the top of their portfolios, buying either will get you a similar investment profile.

IVV vs. VTS: Top ETF holdings compared

To illustrate, as of 31 July, IVV’s top five holdings, and their respective weightings, were as follows:

NVIDIA Corporation (NASDAQ: NVDA) at 7.53%

Apple Inc (NASDAQ: AAPL) at 7.03%

Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) at 5.85%

Microsoft Corporation (NASDAQ: MSFT) at 5.35%

Amazon.com Inc (NASDAQ: AMZN) at 4.12%

Meanwhile, the VTS ETF’s largest stocks, as of 31 July, were:

NVIDIA at 6.39%

Apple at 6.28%

Alphabet at 5.2%

Microsoft at 4.78%

Amazon at 3.64%

As you can see, there’s not a lot of daylight between these two ETFs’ holdings.

But let’s look at performance.

Over the 12 months to 31 July, IVV returned 9.42%. That rose to an annualised 17.41% over three years, and 13.61% per annum over five.

Meanwhile, the VTS ETF returned 9.82% over the year to 31 July. Over three years, it managed an average of 17.19% per annum, and 12.77% per annum over five years.

So it’s clear we’re doing a bit of hair splitting here. Overall, these two ASX ETFs can be expected to deliver a similar return over time, given their overlapping, heavy exposure to the largest US stocks on the market. It’s my view that ASX investors who are looking for cheap, easy exposure to US stocks can’t go wrong with either fund.

The post Is the Vanguard US Total Market ETF (VTS) the best buy for investing in America? appeared first on The Motley Fool Australia.

More reading

• Why I think the IVV ETF is a strong buy for ASX investors
• 3 amazing ASX ETFs for Aussie investors in September
• Why every Aussie investor should own one of these ASX ETFs
• 15% for 10 years: Is this ASX ETF a no-brainer buy?
• How much is needed in superannuation to target a $40,000 annual passive income?

Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, Apple, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Microsoft, Nvidia, 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.