Starting your investment journey can feel overwhelming, but exchange-traded funds (ETFs) make it easier.
Rather than picking individual stocks, ASX ETFs allow you to own a diversified portfolio of companies with just one trade. This reduces risk and simplifies investing—perfect for beginners!
If you're looking for a buy and hold approach, here are three ASX ETFs that could set you up for long-term success.
Betashares Nasdaq 100 ETF (ASX: NDQ)
If you want exposure to the biggest and best technology companies in the world, the Betashares Nasdaq 100 ETF could be a great choice. This fund tracks the Nasdaq-100 Index, which includes 100 of the largest non-financial companies listed on Wall Street's Nasdaq exchange.
Tech has been one of the biggest drivers of stock market growth in recent decades, and NDQ gives investors access to the giants of the industry. Some of its top holdings include:
- Apple (NASDAQ: AAPL) – The world's most valuable company and a leader in consumer technology.
- Nvidia (NASDAQ: NVDA) – A dominant force in artificial intelligence and graphics processing.
- Amazon (NASDAQ: AMZN) – A global e-commerce and cloud computing powerhouse.
By investing in this ASX ETF, you're putting your money behind some of the most innovative and high-growth businesses in the world.
iShares S&P 500 ETF (ASX: IVV)
For beginners who want broader US exposure, the iShares S&P 500 ETF is a solid choice. This ASX ETF tracks the S&P 500, which consists of 500 of the largest publicly traded companies in the United States.
The S&P 500 has historically delivered strong long-term returns, averaging about 10% per annum over the past century. This fund provides exposure to companies across multiple industries, including:
- Microsoft (NASDAQ: MSFT) – A global leader in software and cloud computing.
- Berkshire Hathaway (NYSE: BRK.B) – Warren Buffett's investment conglomerate, known for its disciplined approach to value investing.
- Johnson & Johnson (NYSE: JNJ) – A healthcare giant with a long track record of stability and dividend growth.
This ETF could be a great option for beginners looking for long-term, diversified exposure to the US stock market.
Betashares Australian Quality ETF (ASX: AQLT)
Finally, for those who prefer to keep their investments closer to home, the Betashares Australian Quality ETF is an excellent way to gain exposure to high-quality Australian businesses.
This fund tracks an index of Australian companies that have strong profitability, low debt, and stable earnings growth. This means you're investing in businesses that are financially healthy and well-positioned for long-term success. The crème de la crème of the Australian share market. Some of its top holdings include:
- CSL Ltd (ASX: CSL) – A global biotech leader with a history of strong earnings growth.
- Macquarie Group Ltd (ASX: MQG) – A top investment bank and asset manager with a strong international presence.
- Wesfarmers Ltd (ASX: WES) – The owner of Bunnings, Kmart, and Officeworks, known for its steady performance and reliable dividends.
This ASX ETF provides exposure to some of the best companies on the ASX, potentially making it a great option for Australian investors who want to focus on local stocks with strong fundamentals. It's no wonder then that Betashares recently tipped it as a buy.