I’m trying to fill my portfolio with ASX shares that are going to be worth more in the coming years. That’s a big part of the allure of owning businesses â they can go up in value over time.
I own a range of investments, some of which deliver sizeable passive income each year. The two recent buys I want to tell you about definitely fit into the ASX growth share category, though they do also pay a small dividend yield.
While they’re not significant positions in my portfolio (yet), I’m planning to invest more in the coming months, particularly if the software ASX share stays at the current valuation (or becomes even cheaper).
VanEck Morningstar Wide Moat ETF (ASX: MOAT)
This has been one of my preferred exchange-traded funds (ETFs) for a long time, and now I’ve finally started a position.
It typically owns a portfolio of around 50 names from the US share market, which are viewed by Morningstar analysts as businesses with long-term economic moats.
An economic moat describes the competitive advantages a business possesses, which can take various forms, such as brand power, intellectual property, cost advantages, switching costs, or network effects.
The MOAT ETF only invests in these businesses when it seems like their economic moat is more likely than not to last at least 20 years. This means investors can invest in the fund for the long term with confidence.
On top of that, the fund only invests in these competitively advantaged businesses if they believe the target company is trading at a good value.
The investment strategy has led to the fund returning an average of more than 15% per year over the last decade. Past performance is not a guarantee of future returns, of course, but I believe the MOAT ETF can continue to perform strongly in the coming years.
TechnologyOne Ltd (ASX: TNE)
I have admired TechnologyOne for a long time and slightly regret not investing in the ASX share sooner. However, I took the opportunity to buy after its fall in November.
The enterprise resource planning (ERP) software business continues to demonstrate attractive aspects.
Its core business continues to grow strongly, with a net revenue retention (NRR) rate of 115% in FY25. That means the business made 15% more revenue from its existing client base than the prior year. Growing at 15% per year means revenue doubles in just five years.
The ASX share invests around a quarter of its revenue into research and development to help justify subscribers such as local councils, universities, and companies paying more for (improved) software.
The NRR growth, plus ongoing customer wins, means its annual recurring revenue (ARR) is rising quickly. It has a goal to reach $1 billion of ARR by FY30, with the UK playing an important role in its growth plans. In FY25, UK ARR surged 49% with strong growth in both the local government and higher education segments.
TechnologyOne is also expecting its profit before tax (PBT) margin to increase in the coming years, thanks to its operating leverage, which I believe will enhance its bottom line and drive the TechnologyOne share price upward at a pleasing pace in the years ahead.
The post These are my latest 2 ASX share buys and I’m planning to buy more appeared first on The Motley Fool Australia.
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* Returns as of 18 November 2025
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More reading
- Where to invest $10,000 in ASX shares in December
- Why these ASX 200 shares crashed 10%+ in November
- 2 ASX 200 tech shares to buy following sector sell-off
- These fantastic ASX 200 tech shares look far too cheap
- ASX 200 tech shares fight back after 10 weeks of decline
Motley Fool contributor Tristan Harrison has positions in Technology One and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One. The Motley Fool Australia has recommended Technology One and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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