The simplest way to grow your wealth these days could be to choose exchange-traded funds (ETFs) that do the job for you.
ETFs allow you to buy a large basket of shares in a single purchase, which is both cost-effective and provides good diversification.
The most well-known ETFs on the ASX could be some of the best choices:
BetaShares NASDAQ 100 ETF (ASX: NDQ)
Some of the best businesses to own over the past decade have been the US technology businesses like Alphabet (Google), Amazon, Apple, Facebook, Microsoft and others.
With this NASDAQ 100 ETF you get quite a high level of exposure to each of the FAANG shares. We probably use the products of most of the big tech businesses almost every day, or at least every week. Google Search, YouTube, iPhones, Facebook Messenger, Instagram, Microsoft Office and so on are all excellent business units for the FAANG shares.
Many of the businesses in the NASDAQ 100 are building very impressive new businesses that could drive profit higher for many years to come such as the data centre businesses operated by Amazon (AWS), Microsoft (Azure) and Google. Other future profit drivers could be automated cars (Waymo) and virtual reality services.
Over the next 10 years there's a fair chance this ETF will soundly outperform the ASX index.
BetaShares Australia 200 ETF (ASX: A200)
But, that's not to say an ASX index ETF would be a terrible investment over the long-term though. The Australian share market has been a solid performer over the long-term, particularly with the payment of dividends.
This ETF looks to track the ASX 200, being 200 of the largest businesses listed on the ASX. What I like about this ETF over other ASX-focused ETF options is that it has the lowest annual management fee of 0.07% per annum.
It's invested in many of the familiar Australian blue chips that we all know like Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), Telstra Corporation Ltd (ASX: TLS) and Woolworths Group Ltd (ASX: WOW).
If you'd like to be passively invested in the Australian share market, this could be one of the best ways to do it.
Foolish takeaway
I'm feeling quite cautious about the ASX at the moment, particularly with falling house prices and how hard the banks are being hit with the royal commission charges. I'd much rather invest in the NASDAQ ETF 100 for the long-term at the current prices.
