Whether this is your first time investing in ASX shares, or you are looking to top up your current ASX share portfolio, I believe the following 2 ASX shares are worthy of consideration.
These 2 options are very different types of investments, however, I think both are well positioned for strong returns over the next decade.
Telstra Corporation Ltd (ASX: TLS)
As Australia's largest telecommunications provider, Telstra has played a crucial role in the country's telecommunications landscape for many decades.
Telstra previously had a very dominant market position as it owned the national fixed line network for broadband and voice. It was therefore was able to control the price it charged to other telcos that purchased wholesale services from its network. This provided Telstra with high margins and high company profits. However, in the new era of the National Broadband Network, Telstra is now on a level playing field with competitors such as Optus, TPG Telecom Ltd (ASX: TPM) and Vocus Group Ltd (ASX: VOC).
Despite this, I still believe that Telstra is well positioned for long-term growth and strong shareholder returns. It currently has a market leadership position in the rollout of 5G mobile services in Australia. In fact, it has been a world leader in 5G trials over the past few years. In addition, under Telstra's T22 strategy, the telco is now evolving into a much leaner and efficient telecommunications provider. This is positioning it well for strong growth over the next decade.
Vanguard MSCI Index International Shares ETF (ASX: VGS).
This recommendation isn't an individual company, but rather is an exchange traded fund (ETF).
ETFs hold a collection of different companies under one investment umbrella, similar to traditional managed share funds. However, the difference between an ETF and a traditional managed fund is ETFs are traded on a stock exchange. This makes them much easier for investors to access, and they typically have much lower expenses.
Vanguard MSCI Index International Shares ETF (ASX: VGS) tracks the return of the MSCI World ex-Australia Index, which includes over 1,500 of the world's largest companies in major developed countries. The top 5 current listings are all tech giants including Apple Inc, Microsoft and Amazon and Facebook. All of these companies have seen strong growth over the past 3 years.
The ASX is heavily weighted to industry segments such as banking and financial services, industrials and retail. These industries are very mature and in my view they don't have the same long growth potential as industries such as technology. Vanguard MSCI Index International Shares ETF is weighted towards the technology sector, which in my opinion means it is well placed to outperform the S&P/ASX 200 Index (ASX: XJO) over the long term.
