2 of the best ASX ETFs to buy and hold

Buy and hold investing is one of the best ways to grow wealth in the share market.

That’s because it allows investors to leverage the power of compounding, which is what happens when you generate returns on top of returns.

But if you’re not a fan of stock picking, don’t worry because exchange traded funds (ETFs) are here to save the day.

They allow investors to buy large groups of shares in one fell swoop. This eliminates the need to buy individual stocks.

With that in mind, listed below are two ASX ETFs that could be worth considering for the long term. Here’s what they offer investors:

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The first ASX ETF with strong long-term potential is the popular Betashares Asia Technology Tigers ETF.

This fund focuses on large technology companies across Asia, giving investors exposure to digital growth outside the United States.

That could be important because Asia’s technology sector has its own drivers. It includes ecommerce platforms, semiconductor leaders, digital payments, online services, and companies tied to rising consumption across large populations.

Among its holdings are the likes of Baidu (NASDAQ: BIDU), Taiwan Semiconductor Manufacturing Company (NYSE: TSM), Samsung Electronics, and WeChat owner Tencent Holdings (SEHK: 700).

The fund will not always move in line with US technology ETFs. That can make it a more volatile option at times, but also gives investors exposure to a different set of opportunities.

It was recently recommended by analysts at Betashares.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ASX ETF to consider as a buy and hold investment is the Vanguard MSCI Index International Shares ETF.

This fund is one of the broadest options available to investors on the Australian share market.

It provides exposure to over 1,000 stocks from developed markets around the world, including the United States, Europe, Japan, and other major economies.

Among its holdings are household names such as iPhone maker Apple (NASDAQ: AAPL), software leader Microsoft (NASDAQ: MSFT), luxury giant LVMH Moet Hennessy Louis Vuitton SE, and food behemoth Nestle (SWX: NESN).

That breadth is its strength. The Vanguard MSCI Index International Shares ETF can act as a simple way to participate in global equity market growth without needing to decide which country, sector, or theme will lead next.

For investors looking for a core global ETF to hold for a decade or more, it arguably remains one of the cleanest options on the ASX.

The post 2 of the best ASX ETFs to buy and hold appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Betashares Capital – Asia Technology Tigers Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Baidu, Microsoft, Taiwan Semiconductor Manufacturing, and Tencent. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lvmh Moët Hennessy – Louis Vuitton, Société Européenne and Nestlé. The Motley Fool Australia has recommended Apple, Microsoft, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.