There are some great exchange-traded funds (ETFs) on the ASX that could be worth owning in your portfolio for the long-term.
ETFs are a great way to get long-term exposure to the growth of an index or certain sectors over the long-term.
These two ideas could be some of the best ETFs to have over the next few years:
iShares S&P 500 ETF (ASX: IVV)
Buying an S&P 500 fund is one Warren Buffett’s preferred investment picks to say to people as advice.
It’s easy to see why. The long-term returns have been really good, the fees are low and it offers really good diversification.
The businesses in this portfolio are among the best in the world in their respective sectors. The largest 10 positions are: Apple, Microsoft, Amazon, Facebook, Alphabet, Berkshire Hathaway, Tesla, JPMorgan Chase, Johnson & Johnson and Visa.
As I’m sure you can guess, there is a total of 500 holdings inside this investment. Looking at the sector allocations of more than 10%, IT has a 26.4% weighting, healthcare has a 13% weighting, consumer discretionary has a 12.2% weighting, financials has a 11.3% weighting and communication has a 10.9% weighting.
It’s important to note that businesses like Facebook and Alphabet are classified as communication, not IT.
This ETF has an annual management fee of just 0.04% per year, which is one of the lowest on the ASX.
Over the last five years, this ETF has produced an average return per annum of 14.5%.
Betashares Nasdaq 100 ETF (ASX: NDQ)
This ETF features many of the same names that the S&P 500 fund does. However, the exposure is larger because there is a smaller number of holdings.
Apple, Microsoft, Amazon, Tesla, Facebook, Alphabet, NVIDIA and PayPal alone account for almost half of the portfolio.
There are also plenty of other quality US shares in the portfolio such as Netflix, Adobe, Broadcom, Texas Instruments, Qualcomm, Applied Materials, Advanced Micro Devices and Intuitive Surgical.
Despite the ETF have a higher annual management fee of 0.48% per annum, Betashares Nasdaq 100 ETF has delivered average returns per annum over the last five years of 23.7%.
The NASDAQ is tech-heavy – almost half of this ETF’s portfolio is weighted to IT, with another 19.2% invested in communication services. Remember, ‘communication’ includes businesses like Facebook, Alphabet and Netflix.
BetaShares says that this investment gives exposure to many of the world’s most revolutionary and innovative companies that are changing our lives, such as Zoom.
Where to invest $1,000 right now
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Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS and iShares Trust - iShares Core S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.