I think exchange-traded funds (ETFs) could be the way to go for a number of people with their investing.
Organisations like Vanguard who are willing to provide an awesome service, and technological advancements, have allowed regular investors like you and me to get access to the whole share market for a very cheap cost.
Here are two of the best possible ETF choices in my opinion:
iShares S&P 500 ETF (ASX: IVV)
The S&P 500 index is Warren Buffett's preferred option. Most of the money that's being left to his wife is going to be invested in an S&P 500 index fund.
I think it's a great idea to consider an S&P 500 index fund because you get great diversification with 500 US-listed businesses. However don't think of them as just American businesses, because they generate earnings from across the world. Microsoft, Facebook, Apple and so on are truly global businesses. Only temporary global recessions will be the regular hindrance of the progress of this ETF.
It has an extremely low annual management fee of only 0.04%, which leaves more net returns for investors. I'd be happy enough for this to be my only investment for the rest of my life.
Vanguard FTSE Asia Ex Japan Shares Index ETF (ASX: VAE)
However, I think an even better ETF idea could be an Asian-focused ETF.
If the 1900s belonged to the US I think the rest of this century will be the Asian century. China in-particular has experienced incredible economic change and plans to become the world leader in many of the most technological industries like robotics and artificial intelligence.
With this Vanguard ETF you get exposure to 890 businesses listed across China, South Korea, Hong Kong, Taiwan, India, Singapore and other Asian countries.
I'm sure you've heard of the giant Asian businesses of Tencent, Alibaba and Samsung which make up the largest three holdings of the ETF. You also get exposure to Asian banks, telcos, insurance businesses and so on.
With a growth rate of above 10% and a p/e ratio of only 13x, I think this ETF looks good value today and could outperform the S&P 500 over the next couple of decades.
Foolish takeaway
I wouldn't want to make the Vanguard Asian ETF my entire portfolio, but I think it is the better buy with today's market valuations in the US and China. I am actively looking to buy more of the Asian ETF if I can't find any better opportunities on the ASX next time I go to buy shares.
