The “Set & Forget” ETF Strategy
The Set and Forget Strategy - The Lazy Traders Secret Weapon?
If you’ve ever wished you could invest without checking your portfolio every day, you’re not alone. Many successful investors follow a “set and forget” ETF strategy. This is a hands-off approach that lets your money work for you while you focus on… literally anything else.
It’s simple, low-maintenance, and surprisingly effective. Let’s break down how to do it right.
1. Pick Your Core ETFs
The backbone of a “set and forget” strategy is a solid mix of broad-based ETFs. You don’t need dozens, just a few that cover major markets.
Examples:
VAS for Australian shares
VGS or IVV for global exposure
IAF or BOND for bonds and stability
These funds already hold hundreds of companies, so diversification is built in.
Pro tip: Think “global + local + bonds.” That’s a strong starting trio.
2. Automate Your Contributions
Automation is your best friend. Set up a direct debit from your bank into your brokerage account every fortnight or month, and schedule automatic ETF purchases if your platform allows.
That way, investing becomes as routine as paying your phone bill. You’ll benefit from dollar-cost averaging, which smooths out market ups and downs over time.
3. Don’t Touch It (Seriously)
The hardest part is doing nothing. Markets will rise and fall, and your emotions will try to take over. Ignore them.
Stick to your plan, keep investing regularly, and only check your portfolio every few months—or even once a year.
If your mix drifts a little, that’s fine. Rebalancing once a year is enough.
4. Reinvest Dividends Automatically
Many ETFs pay dividends, which can either land in your bank account or be automatically reinvested into more ETF units. Reinvesting compounds your returns over time—this is where the “forget” part really shines.
If your broker offers a Dividend Reinvestment Plan (DRP), tick that box and let compounding do its magic.
5. Trust the Long Game
The biggest advantage of a “set and forget” approach is consistency. You’re not chasing trends or guessing the next hot stock—you’re building wealth the slow, steady way.
History shows markets trend upward over time, rewarding patience. You don’t need to outsmart the market—you just need to stay in it.
Final Thoughts
A “set and forget” ETF strategy is about simplicity, discipline, and time. By automating contributions, holding diversified ETFs, and resisting the urge to meddle, you’ll create a system that builds wealth while you live your life.
It’s not lazy—it’s smart.
