Buy and hold these ASX ETFs for 10 years or more

A group of young ASX investors sitting around a laptop with an older lady standing behind them explaining how investing works.

A group of young ASX investors sitting around a laptop with an older lady standing behind them explaining how investing works.

I believe that buy and hold investing is the best way to grow your wealth.

By investing over the long term, investors are able to benefit fully from the power of compounding. This is what happens when you generate returns on top of returns.

It explains why a return of 10% per year turns $10,000 into $11,000 in one year but almost $70,000 in 20 years.

The only problem is that some readers may not be fans of stock picking or can’t decide which ones to buy and hold.

But don’t let that hold you back. Not when there are exchange traded funds (ETFs) out there that make life easy for investors.

For example, the two ASX ETFs listed below provide investors to large and diverse groups of shares in one fell swoop. This means you’re not exposed to individual stock risk.

Here’s what you need to know about them:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The BetaShares NASDAQ 100 ETF provides investors with access to the 100 largest non-financial companies on the famous Nasdaq index. These are global behemoths such as Alphabet, Apple, Meta, Microsoft, Nvidia, and Tesla.

Given the positive long-term outlooks of many of its holdings, it would not be surprising to see this ETF outperform the market again over the next decade or two.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Warren Buffett is a big fan of buy and hold investing and it certainly has served him well over multiple decades.

If you want to follow in its footsteps, then you could look at the VanEck Vectors Morningstar Wide Moat ETF. This ETF invests in the types of companies that the Oracle of Omaha would normally buy. These are companies with attractive valuations, strong business models, and competitive advantages.

The post Buy and hold these ASX ETFs for 10 years or more appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

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Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

See The 5 Stocks
*Returns as of 10 November 2023

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Apple, BetaShares Nasdaq 100 ETF, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Apple, Meta Platforms, Nvidia, 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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