If you're looking for an easy way to invest your hard-earned money with a long term view, then exchange traded funds (ETFs) could be the way to do it.

But which ETFs might be top buy and hold options? Listed below are three quality ETFs that could be worth considering as long term investments:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The first ETF option for investors to consider is the BetaShares NASDAQ 100 ETF.

This ETF gives investors access to the 100 largest non-financial shares on the famous NASDAQ index. These are many of the largest companies in the world and household names such as Amazon, Alphabet, Apple, Meta Platforms, Microsoft, and Tesla.

Since inception in May 2015, this ETF has generated an average annual return of 16.08%.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another ETF that could be a quality buy and hold option is the VanEck Vectors Morningstar Wide Moat ETF.

If you want to invest like Warren Buffett, then this ETF would be an easy way to replicate his strategy. That's because it holds companies with fair valuations and moats. These are two qualities Buffett looks for when buying shares.

The ETF currently contains approximately 50 shares, including the likes of Alphabet, Boeing, Kellogg Co, Meta Platforms, and Walt Disney.

Over the last 10 years, the index the ETF tracks has returned 18.64% per annum.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF that could be a great buy and hold option is the Vanguard MSCI Index International Shares ETF.

This popular ETF gives investors access to approximately 1,500 of the world's largest listed companies.

This provides significant diversity and allows investors to take part in the long term growth potential of international economies. Among its holdings are the likes of Amazon, Apple, Nestle, Procter & Gamble, Tesla, and Visa.

Over the last five years, it has generated total returns of 10% per annum.

The post 3 ETFs for investors to buy and hold for a decade appeared first on The Motley Fool Australia.

Are you wanting to add some diversification to your portfolio? If you are, then you might want to look at exchange traded funds (ETFs).

The reason for this is that ETFs give investors easy access to a large and diverse number of different shares through just a single investment.

With that in mind, listed below are two ETFs that are popular with investors. Here's what you need to know about them:

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The first ETF to look at is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to approximately 1,500 of the world's largest listed companies from major developed countries.

Vanguard highlights that this ETF gives investors low-cost access to a broadly diversified range of securities that allows them to participate in the long-term growth potential of international economies outside Australia.

Among the many high quality companies that investors will be owning a part of are giants such as Apple, Johnson & Johnson, JP Morgan, Nestle, Nvidia, Procter & Gamble, and Visa.

Vanguard U.S. Total Market Shares Index ETF (ASX: VTS)

Another ETF that could be a top option for investors is the Vanguard US Total Market Shares Index ETF. Especially if you'd rather just invest in the United States and not globally.

That's because this ETF allows you to invest into a massive 4,000 US listed shares in one fell swoop.

Vanguard highlights that this allows investors to participate in the long-term growth potential of US listed companies.

As well as tech giants such as Amazon, Apple, and Microsoft, you'll be buying a slice of iconic US companies such as Boeing, JP Morgan, Starbucks, Tesla, and Walmart.

The post 2 excellent ETFs for ASX investors to buy now appeared first on The Motley Fool Australia.

If you're looking for an easy way to invest your hard-earned money next month, then exchange traded funds (ETFs) could be the way to do it.

But which ETFs might be top options right now? Listed below are three quality ETFs that could be worth considering in March:

BetaShares Global Energy Companies ETF (ASX: FUEL)

The first ETF to look at is the BetaShares Global Energy Companies ETF. With many analysts tipping oil demand to increase this year because of China's reopening, this ETF could be worth considering. That's because it allows you to invest in many of the largest energy producers in the world through a single investment.

Through the ETF you'll be owning shares in the likes of BP, Chevron, ExxonMobil, and Royal Dutch Shell.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

If you're a fan of Warren Buffett's investment style, then it could be worth considering the VanEck Vectors Morningstar Wide Moat ETF. That's because when Buffett looks for an investment, he has a preference for companies with sustainable competitive advantages and fair valuations. It is these qualities that this ETF has been built around.

The ETF currently contains approximately 50 companies that are deemed to be attractively priced with sustainable competitive advantages. At present, these include the likes of Alphabet, Boeing, Kellogg Co, Meta Platforms, and Walt Disney.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF for investors to consider is the Vanguard MSCI Index International Shares ETF. It could be a great option for anyone that it looking for a quick way to diversify their portfolio. That's because this very popular fund gives investors access to approximately 1,500 of the world's largest listed companies.

This means it provides significant diversity and also allows investors to take part in the long term growth potential of international economies. Among the shares that you'll be owning a slice of are giants Amazon, Apple, Nestle, Procter & Gamble, Tesla, and Visa.

The post 3 excellent ETFs for ASX investors to buy in March appeared first on The Motley Fool Australia.

If you're not a fan of stock picking but want to make some buy and hold investments, then exchange traded funds (ETFs) could be worth considering.

Two high quality ETFs that could be top buy and hold options for investors are listed below. Here's what you need to know about them:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The first ETF that could be a great buy and hold option is the BetaShares NASDAQ 100 ETF.

This ETF aims to track the performance of the NASDAQ-100 before fees and expenses. This index comprises 100 of the largest non-financial companies listed on the NASDAQ stock market.

Among the 100 companies you'll be gaining access to are global giants such as Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla.

Given the significant weakness on the Nasdaq index last year, now could be an opportune time to buy this exceptionally high quality group of shares with a long term view.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ETF for investors to consider as a buy and hold option is the Vanguard MSCI Index International Shares ETF.

This ETF provides investors with exposure to approximately 1,500 of the world's largest listed companies from major developed countries. This allows investors to participate in the long-term growth potential of international economies outside Australia.

In addition, the ETF can bring instant diversification to a portfolio thanks to its exposure to numerous sectors and countries.

Among the ETF's largest holdings are a good number of household names. This includes the likes of Apple, Johnson & Johnson, JP Morgan, Nestle, Procter & Gamble, and Visa.

The post 2 fantastic ETFs for ASX investors to buy and hold appeared first on The Motley Fool Australia.

If you're wanting to add some exposure to global markets to your portfolio, then an easy way to do it would be through exchange traded funds (ETFs).

Rather than having to open up an international brokerage account, ETFs can be bought in the same way that you would buy shares in ASX listed companies.

With that in mind, listed below are two top ETFs that allow investors to buy a large collection of international shares in one fell swoop.

Here's what you need to know about them:

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The first ETF for investing globally is the Vanguard MSCI Index International Shares ETF.

This popular ETF gives investors access to almost 1,500 of the world's largest listed companies from 23 major developed countries including the U.S, Japan, U.K, Canada, France, and Switzerland.

The fund manager notes that the ETF offers greater access to sectors such as technology and health care that aren't as well represented in the Australian share market.

Among the global giants you'll be buying with this fund are Apple, HSBC, LVMH Moet Hennessy Louis Vuitton, Nestle, Procter & Gamble, Roche, Royal Bank of Canada, Shell, and Visa.

Vanguard U.S. Total Market Shares Index ETF (ASX: VTS)

Another ETF for investors to look at for international exposure is the Vanguard Australian US Total Market Shares Index ETF.

As you might have guessed from its name, this low-cost ETF provides investors with access to some of the largest companies listed in the United States.

Vanguard believes it could be a top option for buy and hold investors. Particularly those that are seeking long-term capital growth, some income, and international diversification.

Among the companies included in the ETF are household names such as Amazon, Boeing, JP Morgan, Starbucks, and Walmart.

The post 2 globetrotting ASX ETFs for investors to buy in February appeared first on The Motley Fool Australia.

It's no secret that ASX shares had a cracking start to the year. Over January, the S&P/ASX 200 Index (ASX: XJO) rose from 7,038.7 to 7,476.7 points – a rise of 6.2%. That means that most ASX index funds would have recorded a similar level of gains. But the same can't be said of the Vanguard MSCI Index International Shares ETF (ASX: VGS).

The Vanguard International Shares ETF is one of the most popular exchange-traded funds (ETFs) on the ASX. But it did not deliver for investors over January as an ASX 200 ETF would have.

Over the month just gone, this ETF went from $91.98 per unit to $93.10 by the end of January. That's a rise worth 1.22%:

Nothing to turn one's nose up against – but still enough to make this ETF a significant market lagger over January.

So what happened here to cause such a chasm of value between the Vanguard International Shares ETF and the ASX?

What's behind the Vanguard International Shares ETF's lukewarm start to 2023?

Well, there's a relatively simple explanation: the Vanguard International Shares ETF is not related to the ASX at all. In fact, it holds no ASX shares within its portfolio.

That's because this index fund tracks the MSCI World ex-Australia Index. This index holds around 1,500 shares holdings from advanced economies around the world. Most of its holdings are American, but it also has exposure to the Japanese, British, Canadian, and European markets.

Its largest holdings are dominated by the US tech giants though. Among the most dominant are Apple, Microsoft, Alphabet, and Amazon, as well as Johnson & Johnson, Exxon Mobil, and Berkshire Hathaway.

So this explains why the Vanguard International Shares ETF had such a different January to the ASX 200. Or does it?

On closer inspection, many of the largest shares within this ETF's portfolio actually had stunning Januarys. Apple rose by around 10% last month. Microsoft was up by 3.3%, and Alphabet and Amazon shares rose by 12% and 22.8% respectively.

So what's going on here?

Dollars and dollars

Well, there is one factor that has probably blunted this ETF over the past month – the Australian dollar. The Aussie dollar had a particularly strong month against the US dollar. Our dollar finished 2022 at around 68 US cents.

But it ended January at around 71 cents after going as high as 72 cents a few days earlier. This might not seem like a big difference, but it represents a move of up to 6%.

When US assets are priced in Aussie dollars (as this ETF is by virtue of its ASX listing), a rising Aussie dollar reduces the value of the US-priced assets. So currency fluctuations seem to have taken a big chunk of value out of the Vanguard International Shares ETF over January.

So that's what investors in this ETF can probably blame for the miserly performance that the fund had last month against the ASX 200.

Saying that, the Vanguard International Shares ETF has still returned an average of 10.65% per annum since its inception in 2014.

The post The Vanguard MSCI Index International Shares ETF lagged the market in January. Here's why? appeared first on The Motley Fool Australia.

Three popular ETFs that you may want to look deeper into are listed below. Here's what you need to know about them:

BetaShares Global Energy Companies ETF (ASX: FUEL)

The first ETF for investors to look at is the BetaShares Global Energy Companies ETF. With oil prices trading above US$80 per barrel, energy producers are generating significant free cash flow at present. This bodes well for the companies held by this ETF, which include the leading players in the energy sector. Among its holdings are the likes of BP, Chevron, ExxonMobil, and Royal Dutch Shell.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another ETF that could be worth looking at is the BetaShares NASDAQ 100 ETF. As its name implies, this exchange traded fund gives investors exposure to the 100 largest non-financial businesses on Wall Street's famous NASDAQ index. This means that you will be owning a slice of tech giants such as Amazon, Apple, Alphabet, Facebook/Meta, Microsoft, Netflix, and Nvidia. And with the NASDAQ still down materially on a 12-month basis, now could be a good time to consider making a long term investment in this quality group of stocks.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF for investors to consider buying is the Vanguard MSCI Index International Shares ETF. This popular ETF give investors easy access to many of the world's largest listed companies. This means that rather than just investing in the Australian market, investors can take part in the long term growth potential of international markets. Among the ~1,500 companies included in the ETF are Apple, Johnson & Johnson, JP Morgan, Nestle, and Visa.

The post 3 popular ETFs that could be top picks right now appeared first on The Motley Fool Australia.

Warren Buffett is recognised as one of the world's leading investors. He has built enormous wealth through the power of investing in businesses. I'm using some of his key lessons to help me become rich over time.

Buffett has built his company Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) into a world leader with investments including insurance, railroads, banking and Apple Inc (NASDAQ: AAPL).

While his choice of investments has been part of his success, there are a couple of important factors that I think have enabled Buffett's wealth growth.

Investing when the share market is down

It's obvious to say, but I think hefty market declines can have the biggest impact on people's wealth, depending on how investors behave.

If people decide to sell when share prices have dropped, it means they're locking in the negative returns their portfolio has experienced. We could call that buying high and selling low.

Just look at what's happened to the global share market over the past year with the Vanguard MSCI Index International Shares ETF (ASX: VGS):

I believe that investors need to be patient during volatility – crashes regularly happen, so we should expect them. So, just holding onto good ASX shares during downturns seems like a smart move to me.

But, buying shares during a market decline could be a very good move. The lower the purchase price, the bigger the gains over time, if that particular investment does go up.

Warren Buffett advice about market volatility

Buffett once said: "Be fearful when others are greedy, and greedy when others are fearful."

He also gave an excellent analogy about why it's good to remain optimistic about investing when share prices drop:

To refer to a personal taste of mine, I'm going to buy hamburgers the rest of my life. When hamburgers go down in price, we sing the 'Hallelujah Chorus' in the Buffett household. When hamburgers go up in price, we weep. For most people, it's the same with everything in life they will be buying — except stocks. When stocks go down and you can get more for your money, people don't like them anymore.

A third example of his advice regarding price falls comes from his 1997 annual letter to shareholders:

If you expect to be a net saver during the next five years, should you hope for a higher or lower stock market during that period? Many investors get this one wrong. Even though they are going to be net buyers of stocks for many years to come, they are elated when stock prices rise and depressed when they fall.

Only those who will be sellers of equities in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices.

Foolish takeaway

Choosing good investments is important. But it's no good if investors sell when the market goes through volatility. Missing out on good prices could be a mistake as well. It takes patience to enable investments to compound and grow over time.

I used the COVID-19 crash as a big opportunity to invest and I'm using the current lower prices to buy a number of attractive ASX shares at cheaper prices than we saw in 2021. By using — and living by — Warren Buffett's advice, I think it makes it more likely that I can become wealthy.

The post Forget gold, I'm using the Warren Buffett method to try and get rich! appeared first on The Motley Fool Australia.

But which ETFs might be top options right now?

Named below are three quality ETFs that could be worth considering right now:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF to look at is the BetaShares Asia Technology Tigers ETF.

With China reopening from the pandemic, it could be a quality option for investors. That's because it provides investors exposure to many of the best tech stocks in the Asian region.

This means you'll be buying well-known companies such as ecommerce giant Alibaba, search engine company Baidu, and WeChat owner Tencent.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another ETF to consider is the VanEck Vectors Morningstar Wide Moat ETF. It could be a quality option for anyone that is keen to follow in the footsteps of legendary investor Warren Buffett.

This ETF tracks an index which has been designed to replicate the type of investments that Buffett makes. These are companies with fair valuations and sustainable competitive advantages or moats. And given the Oracle of Omaha's incredible track record, it's hard to argue against this strategy.

The ETF changes its constituents regularly to reflect valuation changes, but generally comprises approximately 50 companies with the aforementioned qualities. At present, these include the likes of Alphabet, Boeing, Kellogg Co, Meta Platforms, and Walt Disney.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF to look at is the Vanguard MSCI Index International Shares ETF. This could be a good option if you're looking to diversify your portfolio.

That's because this popular ETF gives investors access to approximately 1,500 of the world's largest listed companies.

This also allows investors to take part in the long term growth potential of international economies. Among the shares that you'll be owning are giants including Amazon, Apple, Nestle, Procter & Gamble, Tesla, and Visa.

The post 3 fantastic ETFs for ASX investors to buy this month appeared first on The Motley Fool Australia.

The ASX share market has plenty of options for investors to choose from to build wealth. An adult can start investing at any age – 20, 30, or even 70.

One of the most powerful tools we can use to help grow our finances is compounding. Albert Einstein, once supposedly said:

Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it.

The longer we give compounding to work, the easier it is. But that doesn't mean it's not worth doing if we haven't started as early in life as we'd like.

Wealth-building examples

I think one of the easiest ways of showing how ASX shares can build wealth is with a compound interest calculator.

If someone was 30, had $0 invested, and decided to invest $500 a month, with a share portfolio returning an average of 10% per annum, it would grow into $343,650 after 20 years and almost $1 million after 30 years.

Investing $1,500 a month grows into $1.03 million after 20 years and $2.96 million after 30 years if it compounded at 10% per annum.

Don't forget that employees are meant to receive superannuation contributions which can play a big part in wealth building. Indeed, superannuation contributions could make up the majority of the necessary money needed to build someone's net worth to more than $1 million.

However, which ASX shares to invest in is an entirely different question.

One of the easiest investment options is an exchange-traded fund (ETF). An ETF allows investors to buy a whole group of shares at once, rather than having to buy one investment at a time. It can save a lot of time and brokerage fees, as well as enabling investors to track the market return for a low fee.

The Vanguard MSCI Index International Shares ETF (ASX: VGS) is one of the most diversified ETFs with more than 1,400 holdings across the world. The US has by far the biggest allocation of any country because that's where many of the world's global leaders are based, such as Apple, Microsoft, Alphabet, Amazon.com, Johnson & Johnson, Exxon Mobil, Berkshire Hathaway, and Nvidia.

Since its inception in November 2014, the ETF has returned an average of 10.6% per annum, though the past is not a guarantee of future results.

Which other ASX shares could generate good returns?

I think the best investment strategy is to invest for the long term. In terms of which ASX shares could be good investments for at least a decade or longer, names like VanEck Morningstar Wide Moat ETF (ASX: MOAT), Wesfarmers Ltd (ASX: WES), and Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) could make good returns for investors in my opinion.

It's never too late to start investing. I would love to build a $1 million portfolio myself but it's going to take a lot of work to get there.

The post With almost no investments at 30, can ASX shares still make me rich? appeared first on The Motley Fool Australia.

If you're looking for exchange traded funds (ETFs) to buy in January, then you might want to look at the three listed below.

Here's what you need to know about these top ETFs:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

If you're interested in gaining exposure to the Asian tech sector now that China is finally reopening, then the BetaShares Asia Technology Tigers ETF could be worth considering. This ETF tracks the performance of the largest technology companies in Asia (excluding Japan). Among the exciting companies that you'll be buying are tigers such as Alibaba, JD.com, Pinduoduo, Samsung, Taiwan Semiconductor, and Tencent Holdings.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

If you are a fan of legendary investor Warren Buffett, then you may want to look at the VanEck Vectors Morningstar Wide Moat ETF. That's because when Buffett invests, he looks for fairly valued companies with sustainable competitive advantages or moats. VanEck has taken this into account and made an ETF out of it by bringing together around 50 attractively priced companies with moats. At present, this includes high quality companies such as Adobe, Alphabet, Boeing, Kellogg Co, Microsoft, and Walt Disney.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF for investors to look at is the Vanguard MSCI Index International Shares ETF. It could be a great option if you're looking for an easy way to diversify your portfolio. That's because this popular ETF provides investors with access to around 1,500 of the world's largest listed companies. This provides significant diversity and also allows investors to take part in the long term growth potential of international economies. Among the companies included in the fund are giants such as Amazon, Apple, Nestle, Nvidia, Procter & Gamble, Tesla, and Visa.

The post 3 of the best ASX ETFs for investors to buy in January appeared first on The Motley Fool Australia.

It wasn't the worst-performing ETF by far. For example, the Betashares Nasdaq 100 ETF (ASX: NDQ) dropped by around 30% last year.

Indeed, it was a rough time for a number of markets and sectors. While the ASX didn't fall much because of its large weighting to ASX bank shares and ASX mining shares (which did well), there were a number of ASX tech shares that did suffer.

Why did the Vanguard MSCI Index International Shares ETF decline?

An ETF's return is dictated by the return of the underlying holdings. If the combined return of the holdings is positive (taking into account the size of each position), then the ETF's return can be positive. Each ETF has a management fee, with this one costing 0.18% per annum, which reduces the return.

If we look at the biggest holdings within the ETF, there are a number of the world's biggest, most recognisable technology businesses including Apple, Microsoft, Alphabet, Amazon.com, Tesla and Nvidia.

In 2022, the Apple share price fell 27%, the Microsoft share price declined by around 30%, the Amazon share price dropped by 50%, the Alphabet share price declined by around 40%, and the Tesla share price plunged 65%.

Interest rates have soared higher as central banks try to put a lid on inflation. But, this is hurting share prices, particularly ones that have a lot of growth factored into their share price.

Billionaire Ray Dalio, founder of Bridgewater Associates, once said:

It all comes down to interest rates. As an investor, all you're doing is putting up a lump sum payment for a future cash flow.

What next for the global share market?

According to reporting by Reuters, the World Bank has cut its 2023 forecast to a level where many countries are on the brink of recession. Global growth is now expected to be 1.7% in 2023, which would reportedly be the third-worst year in 30 years, behind 2009 and 2020. The World Bank was previously predicting global growth of 3%.

The Eurozone and US are now predicted to grow by just 0.5%. That's not great for the Vanguard MSCI Index International Shares ETF considering Europe and the US are where a large majority of the ETF is invested.

Reuters reported that the World Bank said in a statement:

Given fragile economic conditions, any new adverse development – such as higher-than-expected inflation, abrupt rises in interest rates to contain it, a resurgence of the COVID-19 pandemic or escalating geopolitical tensions – could push the global economy into recession.

Rising interest rates may well have the biggest impact in 2023. The US Federal Reserve has continued to be committed to doing what it takes to bring inflation back to normal.

Federal Reserve Chair Jerome Powell continues to talk about enacting decisions to do what's needed. CNBC reported on comments from Powell in a speech for Sweden's Riksbank, he said:

Price stability is the bedrock of a healthy economy and provides the public with immeasurable benefits over time. But restoring price stability when inflation is high can require measures that are not popular in the short term as we raise interest rates to slow the economy.

The absence of direct political control over our decisions allows us to take these necessary measures without considering short-term political factors.

Foolish takeaway

I don't think the global share market is going to perform strongly for most of the year. I believe that the US Federal Reserve is going to leave interest rates at a high level for longer than plenty of investors would like. However, when interest rates stop rising, it could be a catalyst late in the year, particularly if inflation significantly reduces.

But, in my opinion, the Vanguard MSCI Index International Shares ETF still has a very promising long-term future. The quality of the 1,500 or so businesses is good and I think the global diversification is great.

The post 2022 wasn't kind to the Vanguard MSCI Index International Shares ETF (VGS). What now? appeared first on The Motley Fool Australia.

The tricky thing about some asset classes is that they don't generate good income. Property can require tens of thousands of dollars to start investing – for example, a $500,000 property purchase would need $50,000 just for a 10% starting deposit.

One of the best things about investing in ASX shares is that it can be done with a relatively small amount of money.

In this article, I'm referring to investing $300 per month but that could be just how much is set aside each month. Investors can choose to invest $900 each time, $2,000, or whatever other amount suits them. Saving $300 per month turns into $3,600 per year.

Share market returns

No one knows what the future holds. That's why it takes optimism about the long term, and a bit of bravery, to invest in the ASX share market. It also helps to be patient during particularly volatile times. Some ASX dividend shares can be resilient during times like this.

But we can look to the past for insights into how the share market has previously performed. Over the past five years, Vanguard MSCI Index International Shares ETF (ASX: VGS) has returned an average of around 10% per annum, which is similar to the average share market's return over the prior decades, so I'll use that in building my portfolio for this idea.

If I were to invest $300 per month, and my portfolio achieved returns of 10% per annum, it would reach $57,000 after 10 years, $206,000 after 20 years and $592,000 after 30 years.

A dividend yield of 5.1% would generate $30,000 of annual dividends with a $592,000 portfolio. In this scenario, I'd only need to add $108,000 of my own money over three decades and the rest comes from compounding.

Which ASX dividend shares have a high dividend yield?

Dividend investing doesn't necessarily mean that investors have to go for the highest yield possible. Certainly, a lower yield could be more sustainable.

An investor can mix and match different yields to make a portfolio have an average dividend yield of 5% (or more). For example, using Commsec estimates, these are some projected grossed-up dividend yields for FY24:

Wesfarmers Ltd (ASX: WES) shares could pay a grossed-up dividend yield of 5.9%.

JB Hi-Fi Ltd (ASX: JBH) shares could pay a grossed-up dividend yield of 7.1%.

Accent Group Ltd (ASX: AX1) shares could pay a grossed-up dividend yield of 9%.

Brickworks Limited (ASX: BKW) shares could pay a grossed-up dividend yield of 4.2%.

Sonic Healthcare Ltd (ASX: SHL) shares might pay a grossed-up dividend yield of 4.9%.

APA Group (ASX: APA) shares could pay a dividend yield of 5.5%.

A list of some leading ASX dividend shares might be a bit different in three decades from now, though I think Wesfarmers and Brickworks are likely to still be among the leaders because of their long-term focus in allocating money.

The post How I'd invest $300 a month in ASX dividend shares to target a $30,000 annual second income appeared first on The Motley Fool Australia.

This clearly has gone down well with Australian investors. One in seven Australians reportedly own an ETF, with a total of $136.9 billion invested in them locally as of late last year.

But given the high number of ETFs to choose from, it can be hard to decide which ones to buy.

To narrow things down, listed below are two high quality options to consider when the market reopens. Here's what you need to know about them:

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The first ETF for investors to look at is the Vanguard MSCI Index International Shares ETF.

This is one of the most popular ETFs on the Australian share market. And that's not a big surprise because the Vanguard MSCI Index International Shares ETF provides investors with exposure to ~1,500 of the world's largest listed companies.

This makes the ETF a great way for investors to instantly diversify their portfolio and gain exposure to global economic growth.

Among the companies you'll be owning a slice of with this ETF are global giants such as Apple, ASML, Exxon Mobil, Johnson & Johnson, Nestle, Procter & Gamble, and Visa.

iShares S&P 500 ETF (ASX: IVV)

Another ETF for investors to consider buying when the market reopens is the iShares S&P 500 ETF.

This popular ETF aims to provide investors with the performance of Wall Street's famous S&P 500 Index before fees and expenses. This index is home to 500 of the largest listed companies on the US market.

BlackRock, the owner of iShares, believes the ETF can be used by Australian investors to diversify internationally and seek long-term growth opportunities for a portfolio.

Among the 500 companies included in the fund are giants including Amazon, Apple, Berkshire Hathaway, Facebook, JP Morgan, Johnson & Johnson, Microsoft, and Tesla.

The post 1 in 7 Australians own an ETF: Are these the ones to buy? appeared first on The Motley Fool Australia.

If you're interested in exchange traded funds (ETFs), then you may want to take a look at the three highly rated ETFs listed below. Here's what you need to know about them:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ETF for investors to look at in 2023 is the BetaShares Global Cybersecurity ETF.

This ETF gives investors access to the leading companies in the growing global cybersecurity sector.

As we have seen this year, cyberattacks are becoming more and more frequent and destructive for businesses. As a result, demand for cybersecurity services is expected to rise strongly in the coming years, which is good news for the companies included in the ETF.

This includes industry leaders such as Accenture, Cisco, Cloudflare, Crowdstrike, Okta, Palo Alto Networks, and Splunk.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another ETF for investors to consider for 2023 is the VanEck Vectors Morningstar Wide Moat ETF.

This Warren Buffett inspired ETF gives investors access to a diversified portfolio of companies with sustainable competitive advantages and fair valuations. The MOAT ETF's portfolio changes constituents periodically but usually includes approximately 50 US based stocks.

At present, its holdings include Amazon, Berkshire Hathaway, Intel, Microsoft, and Walt Disney.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF for investors to consider next year is the popular Vanguard MSCI Index International Shares ETF.

This ETF gives investors an easy way to diversify a portfolio. That's because it provides investors with access to around 1,500 of the world's largest listed companies. As well as diversity, it allows investors to take part in the long term growth potential of international economies.

Among the high quality shares that you'll be owning a slice of are giants including Amazon, Apple, Nestle, Nvidia, Procter & Gamble, Tesla, and Visa.

The post These could be top ETFs for ASX investors to buy in January appeared first on The Motley Fool Australia.

But which ETFs might be top options right now? Listed below are three quality ETFs that could be worth considering for next year:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF to look at is the BetaShares Asia Technology Tigers ETF. It provides investors exposure to many of the best tech stocks in the Asian region. This means you'll be buying well-known companies such as ecommerce giant Alibaba, search engine company Baidu, and WeChat owner Tencent.

It has been a tough year for Chinese stocks, but with China now reopening at long last, things could be much better in 2023. This could potentially make it an opportune time to invest in the region with a long term view.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

If you like Warren Buffett's investment style, then another ETF that could be a quality option in 2023 is the VanEck Vectors Morningstar Wide Moat ETF. When Buffett looks for an investment, he has a preference for companies with sustainable competitive advantages and fair valuations. These are the qualities that this ETF has been built around.

The ETF currently contains approximately 50 attractively priced companies with sustainable competitive advantages. These include the likes of Alphabet, Boeing, Kellogg Co, Meta Platforms, and Walt Disney.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF is the Vanguard MSCI Index International Shares ETF. If you're looking for a quick way to diversify your portfolio, then this ETF could be the answer. This very popular fund gives investors access to approximately 1,500 of the world's largest listed companies.

This means it provides significant diversity and also allows investors to take part in the long term growth potential of international economies. Among the shares that you'll be owning are giants including Amazon, Apple, Nestle, Procter & Gamble, Tesla, and Visa.

The post 3 quality ETFs for ASX investors to buy next year appeared first on The Motley Fool Australia.

When you first start investing, the prospect of eventually building a million-dollar portfolio might seem impossible. However, history shows that it is possible to do so by investing in ASX shares.

How many shares? Many experts suggest a portfolio of 20 to 30 shares spread out across various industries is optimal for diversification. That's because having this number decreases company or industry-specific risk by ensuring that no single company or industry has too much influence over the value of your holdings.

However, investors could get away by buying only a handful of ASX shares if they take advantage of the diversification offered by exchange-traded funds (ETFs). For example, the Vanguard MSCI Index International Shares ETF (ASX: VGS) gives investors exposure to 1,467 of the world's largest listed companies from major developed countries. That's about as diverse as it gets.

If you owned an ETF like this, you could potentially snap up just a few high quality ASX shares to make a really strong portfolio.

But how do you make a million?

If you're just starting out and have time on your side, then investing with a long-term view could be the key to making a million.

If you're able to invest $5,000 into ASX shares each year and earn a 9.6% per annum return, then you would turn those investments into $1 million after just over 30 years. If you can afford to add more as you get older and your wage (hopefully) increases, you'll get there even earlier.

Why 9.6%? Well, that's the return that Australian shares have provided investors with over the last 30 years according to Fidelity. And while there's no guarantee that the market will do the same over the next 30 years, this level of return is largely in line with historical averages.

If you're starting when older, you'll just need to begin with a greater amount of capital and make slightly larger annual contributions to reach your goal.

Starting with $150,000 and making $10,000 annual investments will take a little over 15 years to reach $1 million if you're earning a 9.6% per annum return.

All in all, being a share market millionaire is not impossible, particularly if you have a plan and stick to it.

The post I'd aim for a $1 million by buying just a handful of ASX shares appeared first on The Motley Fool Australia.

I've been taking advantage of this ASX stock market correction to invest in a number of compelling ideas. I think this period can help me grow wealth at a quicker pace.

It's not often that the ASX share market goes through this level of volatility. Yet, this was the second time in three years that the share market has gone through a major decline. The other plunge was the COVID-19 crash, but that was a fairly short-lived drop.

Hamburger shopping

For me, while some people pull back from investing during times of weakness, I think that's a good time to go hunting for opportunities.

One of my favourite quotes from Warren Buffett could provide wise advice during this uncertain time. In 2001, the sage of Omaha said:

To refer to a personal taste of mine, I'm going to buy hamburgers the rest of my life. When hamburgers go down in price, we sing the 'Hallelujah Chorus' in the Buffett household. When hamburgers go up in price, we weep. For most people, it's the same with everything in life they will be buying – except stocks. When stocks go down and you can get more for your money, people don't like them anymore.

To me, it makes total sense to invest when the ASX shares we want are at a discount, rather than expensively priced.

I see some very solid businesses that are down substantially, such as the Xero Limited (ASX: XRO) share price and the Wesfarmers Ltd (ASX: WES) share price.

Higher interest rates may justify some of the decline in valuation terms, but they are down heavily regardless of what the central banks are doing.

Why I'm taking advantage of this ASX stock market correction

Time will tell what this tricky period does to the earnings of businesses. But I do know that many share prices are now lower than they were last year.

For many names, we have seen a significant decline in the price-to-earnings (p/e) ratio.

If a business is currently at a p/e ratio of 20 after a share price decline due to the uncertainty, but if the p/e ratio then rises to 22 simply because some investor confidence returns, that's a potential 10% capital return.

Another example of how this correction can help grow wealth is through higher dividend yields, improving the annual cash returns.

For example, if a company had a dividend yield of 5% before the decline and then the share price dropped 20%, the dividend yield would be 6% for prospective investors. An extra 1% per annum could make a noticeable difference to wealth-building over a decade.

Even if investors don't want to invest in any specific names, they can use the volatility to buy a piece of the whole global share market with an exchange-traded fund (ETF) like the Vanguard MSCI Index International Shares ETF (ASX: VGS).

I don't know when the next crash will be, but I don't think we'll see this level of uncertainty very often, which is why I view this period as a limited-time offer to buy discounted ASX shares.

The post Stock market correction: How I'm using this opportunity to build wealth with ASX shares appeared first on The Motley Fool Australia.

This offering from Vanguard is one of the most compelling passive ways to invest in the global share market in my opinion.

For investors that haven't heard of Vanguard, it's an organisation that offers investment funds, like ETFs. A key point of difference with Vanguard is that it aims to offer its funds for as little cost as possible because the owners of Vanguard are the investors themselves. Vanguard shares the profit in the form of lower management fees.

This ETF specifically looks to provide "exposure to many of the world's largest companies listed in major developed countries." The idea is that it's invested in over 1,000 businesses outside of Australia, to get exposure to those international economies.

With that in mind, here are three reasons why it could be a good time to invest in the Vanguard MSCI Index International Shares ETF:

Lower valuation

Part of investing is about choosing an investment that can grow well over time. But, a key element of the return is the purchase price. So, for whatever investment we're looking at, it's obviously better to buy it at a lower price.

The share market doesn't fall over 10% for no reason, the higher interest rates and elevated inflation are justifiably hitting businesses in different ways.

But, I think the fact that it's down around 15% makes it much more interesting. When something declines by 15%, getting back to the same level would be a rise of 18%.

Great holdings

When investing, I think it's important to go for quality businesses or assets that can do well even during a downturn. When the going gets tough, it's the low-quality stuff that could quickly get into trouble.

Looking at the holdings in the Vanguard MSCI Index International Shares ETF, these are some of the strongest national, or even global names, within the 1,460-plus positions in the portfolio.

The top 10 holdings are: Apple, Microsoft, Alphabet, Amazon.com, Tesla, UnitedHealth, Johnson & Johnson, Exxon Mobil, Nvidia and Berkshire Hathaway. I'd be happy to own most of those names myself, so I'd be happy to have a portfolio with them. All of this diversification comes with a low management fee of 0.18%.

Don't try to time the market

If investors are regularly investing in the Vanguard MSCI Index International Shares ETF, then I don't think they should be put off by changes in the unit price.

A regular investment plan can take out the guesswork, and trying to time the market could mean missing out on opportunities and long-term growth.

To the end of November 2022, the ETF had returned an average return per annum of 10.2% over the prior five years. I'm not sure what the future holds in terms of the returns, but, a return on equity (ROE) of just over 18% is promising for long-term double-digit returns.

The post 3 reasons to buy the Vanguard MSCI Index International Shares ETF (VGS) before 2023 appeared first on The Motley Fool Australia.

The ASX share market can be a great tool to grow wealth in my opinion. With how little work is needed to invest, and the historical track record of capital growth, ASX shares are my favourite type of investing. It could be a great way for someone in their 40s to build a six-figure portfolio.

Investing is a long-term task. It doesn't matter if someone hasn't built up much, or any, wealth yet.

Trying to get rich quickly would probably be a mistake, as this could lead to investing in stocks that are incredibly risky, with a low chance of it doing well.

Just look at how some of the hottest investments from the COVID era of cheap money have now dropped by more than 60%. A few of those names which could still generate big profits in the long term may be opportunities. But the valuation of some assets just didn't make sense to me in 2021 and may never return to that level.

Having said that, I do think there are a number of excellent investments that can do well over the long term.

Decades of time left for compounding

A 40-year-old may have missed out on a decade or two of being invested. However, there are at least 25 years to a retirement age of 65. And wealth doesn't necessarily stop building at retirement — there are hopefully many decades ahead of living.

If someone were to invest $1,000 a month into ASX shares, it would turn into $1.18 million over 25 years if it achieved the historical ASX share market average return of 10% per annum, according to the Moneysmart compound interest calculator. In 21 years it would reach more than $500,000.

Of course, we don't know what the future returns will be. It could be worse than the average of 10% per annum, or it could also be better.

It will depend on what stocks investors choose and how they perform.

Which ASX shares to invest in?

The simplest way to achieve long-term returns could be to choose quality exchange-traded funds (ETFs) that are invested in quality businesses, such as Vanguard MSCI Index International Shares ETF (ASX: VGS) or VanEck Morningstar Wide Moat ETF (ASX: MOAT). The VanEck one is focused on companies with strong and enduring competitive advantages — it's my favourite ETF.

Another option could be to pick ASX blue-chip shares that already have a good track record in achieving long-term returns, including Wesfarmers Ltd (ASX: WES), Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Premier Investments Limited (ASX: PMV), and Xero Limited (ASX: XRO).

It could also be interesting to look at some beaten-up ASX shares with long-term growth potential, but I would only make each position a relatively small part of my portfolio compared to the ETFs or the blue chips. Some of the names I like include Temple & Webster Group Ltd (ASX: TPW), Adairs Ltd (ASX: ADH), Shaver Shop Group Ltd (ASX: SSG), Volpara Health Technologies Ltd (ASX: VHT), Universal Store Holdings Ltd (ASX: UNI), and Reece Ltd (ASX: REH).

But, if I were trying to keep things simple with a smaller number of names, my favourite idea for long-term capital growth would be VanEck Morningstar Wide Moat ETF.

The post If I was 40 and had never invested, here's how I'd aim to build a $500,000 ASX share portfolio appeared first on The Motley Fool Australia.