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The ETF portfolio I'd build if I never wanted to watch markets again

The Motley Fool·12/20/2025 01:00:00
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Constantly checking markets, reacting to headlines, and second-guessing investment decisions is exhausting. And for most investors, it is unnecessary.

History shows that long-term wealth is rarely built by trading in and out of the market. It is built by owning quality assets, staying invested, and letting time do the heavy lifting.

The good news is that's exactly where a simple exchanged traded fund (ETF) portfolio can shine.

If my goal was to invest once, add money when I could, and then largely ignore the day-to-day noise, this is the ASX ETF portfolio I would build.

A strong foundation in Australian shares

My first pick would be the Vanguard Australian Shares ETF (ASX: VAS).

This ETF gives exposure to the 300 largest shares listed on the ASX, including household names like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), CSL Ltd (ASX: CSL), Wesfarmers Ltd (ASX: WES), and Woolworths Group Ltd (ASX: WOW). These businesses collectively represent a huge portion of the Australian economy.

Importantly, given its vast number of holdings, it removes the need to guess which Australian shares will outperform. You simply own the market.

US exposure

Next, I would add the iShares S&P 500 ETF (ASX: IVV).

This ETF tracks the 500 largest stocks on Wall Street, giving instant exposure to global leaders across technology, healthcare, consumer goods, and industrials. Its holdings include stocks such as Microsoft Corp (NASDAQ: MSFT), Johnson & Johnson (NYSE: JNJ), Walmart (NYSE: WMT), and Nvidia Corp (NASDAQ: NVDA).

This means that by owning this fund, you are holding a slice of some of the world's strongest businesses without needing to decide which individual stocks will win.

The US market has been one of the best performers in history. And given the quality on offer across the Pacific, it would not be a surprise if this trend continued.

Global diversification

To complete the portfolio, I would include the Vanguard MSCI Index International Shares ETF (ASX: VGS).

This ETF invests in developed markets outside Australia, spreading capital across Europe, Japan, and other major economies. Its holdings include well-known companies like Nestle (SWX: NESN), Roche Holding AG (SWX: ROG), Toyota Motor Corp, and LVMH Moët Hennessy Louis Vuitton (FRA: MO).

This ETF helps reduce reliance on any single country or economy. If Australia or the US underperforms for a period, other regions can help balance returns.

The post The ETF portfolio I'd build if I never wanted to watch markets again appeared first on The Motley Fool Australia.

Motley Fool contributor James Mickleboro has positions in CSL and Woolworths Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Microsoft, Nvidia, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson, Nestlé, and Roche Holding AG and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended Woolworths Group. The Motley Fool Australia has recommended BHP Group, CSL, Microsoft, Nvidia, Vanguard Msci Index International Shares ETF, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2025