Why these ASX ETFs could be fantastic buy and hold options

I think that buy and hold investing is one of the best ways to generate wealth.

This is because of the power of compounding. And as compounding really works its magic the longer you leave it, buy and hold investing really unlocks its power.

But what if you don’t like stock picking? Well, there’s a solution for you – exchange-traded funds (ETFs).

ETFs remove the need to pick stocks because they allow investors to buy large groups of shares through a single click of the button.

With that in mind, let’s look at three ASX ETFs that could be great buy and hold options for investors right now. They are as follows:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

If you are looking for buy and hold options then it is hard to look beyond the extremely popular BetaShares NASDAQ 100 ETF.

That’s because it is never a bad idea for investors to buy some of the best companies in the world. And this ASX ETF is filled with them.

The BetaShares NASDAQ 100 ETF provides investors with access to the 100 largest (non-financial) shares on Wall Street’s famous NASDAQ index.

This includes tech giants such as Amazon, Apple, Microsoft, Nvidia, and Tesla, as well as well-known non-tech companies including Starbucks, Monster Beverage, Lululemon, and PepsiCo.

Betashares Global Quality Leaders ETF (ASX: QLTY)

Another ASX ETF for investors to consider as a buy and hold investment this month is the Betashares Global Quality Leaders ETF.

As its name implies, this ETF has a focus on investing in quality. At present, it provides investors with exposure to approximately 150 of the world’s highest quality companies.

These are companies that rank highly on four key metrics: return on equity, debt-to-capital, cash flow generation, and earnings stability. Betashares’ chief economist, David Bassanese, recommended it last year.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

A third ASX ETF for investors to look at is the VanEck Vectors Morningstar Wide Moat ETF.

If buy and hold investing is your aim, then this ASX ETF could be the one. That’s because it invests in the type of companies that legendary investor Warren Buffett buys for his Berkshire Hathaway (NYSE: BRK.B). And given his incredible track record over multiple decades, it is not a bad idea to follow in his footsteps.

The VanEck Vectors Morningstar Wide Moat ETF invests in high quality companies with sustainable competitive advantages (aka wide moats) and fair valuations.

The post Why these ASX ETFs could be fantastic buy and hold options appeared first on The Motley Fool Australia.

More reading

• Both of these excellent ASX ETFs are on my buy list
• How much money should I put in one ASX ETF?
• 5 excellent ASX ETFs to buy next week
• Top ASX shares to buy for your superannuation fund in May 2024
• Does the VanEck Wide Moat ETF pay a decent ASX dividend?

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, 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 Amazon, Apple, Berkshire Hathaway, BetaShares Nasdaq 100 ETF, Lululemon Athletica, Microsoft, Monster Beverage, Nvidia, Starbucks, 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 Amazon, Apple, Berkshire Hathaway, Microsoft, Nvidia, Starbucks, 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.