If you’re an investor looking for the best stocks to invest in, it’s easy to feel overwhelmed by market fluctuations. But history has shown that long-term investing beats short-term market timing. Instead of worrying about market highs and lows, investors who stay in the game often see substantial rewards. Exchange-traded funds (ETFs) are one of the simplest ways to benefit from this approach—providing diversification, stability, and exposure to global markets with a single investment.

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Why ETFs Are a Powerful Investment Tool

ETFs have gained popularity among Australian investors because they allow you to invest in a broad range of companies without the stress of stock-picking. Instead of betting on a single stock, you invest in a basket of leading businesses across different industries and countries. This diversification helps cushion your portfolio from downturns in individual stocks while capturing market-wide growth.

Let’s take a closer look at how two popular ASX-listed global ETFs have performed over the past five years.

1. iShares Global 100 ETF (ASX: IOO)

The iShares Global 100 ETF (IOO) gives investors access to 100 of the world’s most influential companies, including tech giants like Apple, Microsoft, and Nvidia. This ETF is heavily weighted toward the US market, making it a strong play for investors who want exposure to American economic growth.

• 5-Year Performance: +93%
• Current Price: $163.25 per share
• Investment Growth: A $5,000 investment five years ago would now be worth approximately $9,632.

2. Vanguard MSCI Index International Shares ETF (ASX: VGS)

For investors seeking even broader global diversification, the Vanguard MSCI Index International Shares ETF (VGS) covers over 1,500 companies from 23 different countries, excluding Australia. This fund is ideal for those looking to balance their Australian-heavy portfolios with international exposure.

• 5-Year Performance: +63%
• Current Price: $143.42 per share
• Investment Growth: A $5,000 investment in VGS five years ago would now be worth around $8,196.

Key Takeaways for Long-Term Investors

• Market Timing Is a Myth: The S&P 500 hit record highs 55 times in 2024 alone—proving that waiting for the “perfect” buying opportunity can mean missing out on major gains.
• Diversification Lowers Risk: ETFs spread your investment across multiple sectors and geographies, reducing exposure to the volatility of individual stocks.
• Patience Pays Off: Both IOO and VGS weathered the 2020 market crash but still delivered impressive five-year returns, reinforcing the importance of ‘time in the market.’

Want to Maximize Your Portfolio in 2025?

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