Why you should buy and hold these ASX ETFs until the 2030s

I believe that buy and hold investing is one of the best ways to grow your wealth over the long term. …

| More on:
A group of young ASX investors sitting around a laptop with an older lady standing behind them explaining how investing works.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

I believe that buy and hold investing is one of the best ways to grow your wealth over the long term.

The only problem is that some would-be investors find stock picking daunting and put it in the too hard basket. This is a shame because by doing this they are potentially risking their future wealth.

But don't worry if this is you. Because there are assets called exchange traded funds (ETFs) that simplify the world of investing.

With ETFs, investors can gain exposure to large groups of shares through a single investment. This can provide investors with instant portfolio diversification, while also allowing them to capitalise on long-term market trends and grow their wealth.

But which ASX ETFs could be great buy and hold options? Here are three that could be worth buying and holding until 2033:

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

If you're a fan of Warren Buffett, then the VanEck Vectors Morningstar Wide Moat ETF could be a great option. That's because this ETF focuses on companies that have qualities that the Oracle of Omaha looks for when he makes investments. This includes fair valuations and sustainable competitive advantages. At present, this includes AdobeAlphabetIntuitKellogg CoMeta, and Walt Disney.

Vanguard Australian Shares Index ETF (ASX: VAS)

Another ASX ETF that could be a top long-term option for investors is the Vanguard Australian Shares Index ETF. It is a low-cost, diversified, index-based exchange-traded fund that aims to track the ASX 300 index. This index is home to 300 of the largest Australian companies measured by market capitalisation. This means you'll be buying a diverse group of shares such as mining giant BHP Group Ltd (ASX: BHP), Macquarie Group Ltd (ASX: MQG), and Temple & Webster Group Ltd (ASX: TPW).

Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO)

If you have a higher tolerance for risk, then the Vanguard MSCI Australian Small Companies Index ETF could be another to consider. This ETF gives investors access to small-cap Australian shares. Vanguard notes that, unlike many other small-cap funds, VSO is intelligently designed to include a range of mid and small-cap companies, not just the tail end of the stock market. Among its holdings are companies such as Chalice Mining Ltd (ASX: CHN), Dicker Data Ltd (ASX: DDR), and Objective Corporation Ltd (ASX: OCL).

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Motley Fool contributor James Mickleboro 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 Adobe, Alphabet, Dicker Data, Intuit, Macquarie Group, Meta Platforms, Objective, Temple & Webster Group, and Walt Disney. The Motley Fool Australia has positions in and has recommended Dicker Data and Macquarie Group. The Motley Fool Australia has recommended Adobe, Alphabet, Meta Platforms, Objective, Temple & Webster Group, VanEck Morningstar Wide Moat ETF, and Walt Disney. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ETFs

The letters ETF with a man pointing at it.
ETFs

Why this is the biggest ASX ETF holding in my portfolio

This is one of the best ETFs to buy, in my opinion.

Read more »

A group of young people lined up on a wall are happy looking at their laptops and devices as they invest in the latest trendy stock.
ETFs

How to build a $100k ASX ETF portfolio in 10 years

Let's see how you could go from zero to $100k with exchange traded funds.

Read more »

happy investor, share price rise, increase, up
ETFs

3 fantastic ASX ETFs to supercharge your growth portfolio

Let's see why these funds could be top picks for investors looking for growth options.

Read more »

Global technology shares
ETFs

How to invest in the world's best stocks with ASX ETFs

These funds could be great options for investors looking to invest globally.

Read more »

A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.
ETFs

Where to invest $10,000 in ASX ETFs this week

Let's see which funds could be great picks for your hard-earned money.

Read more »

A young woman uses a laptop and calculator while working from home.
ETFs

$10,000 invested in QUAL ETF a year ago is now worth…

This ASX ETF follows an index that uses a filter to ensure all stock holdings meet 3 financial metrics.

Read more »

Cubes placed on a Notebook with the letters "ETF" which stands for "Exchange traded funds".
ETFs

2 excellent ASX ETFs I rate as buys in June

These ASX ETFs have lots of positives.

Read more »

A female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.
ETFs

5 fantastic ASX ETFs to watch

Let's see what they provide investors with easy access to.

Read more »