2 market-beating ETFs for ASX investors in January

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If you’re not yet invested in exchange traded funds (ETFs), you could be missing out.

For example, you only need to look at the market beating returns from these ETFs to see how they could have complemented your portfolio.

Here’s what you need to know about these ETFs:

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

The first market-beating ETF for investors to look at is the VanEck Vectors Morningstar Wide Moat ETF. This fund aims to invest in a group of companies with sustainable competitive advantages and attractive valuations.

Among the ~50 companies included in the fund are the likes of Alphabet, Amazon, American Express, Boeing, Coca-Cola, McDonalds, Microsoft, Philip Morris, Pfizer, and Salesforce.

Companies with competitive advantages have historically generated strong returns for investors. It is for this reason that Warren Buffett looks for these advantages when choosing his investments.

Over the last five years, the index the fund tracks has generated a return of 18.7% per annum. This would have turned a $10,000 investment into almost $23,500.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another market-beating ETF to consider is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to the world’s largest listed companies.

Vanguard notes that this ETF provides Australian investors with exposure to many of the world’s largest companies listed in major developed countries. It also offers low-cost access to a broadly diversified range of stocks that allows them to participate in the long-term growth potential of international economies outside Australia.

Among its ~1500 holdings are the likes of Apple, Johnson & Johnson, JP Morgan, Nestle, Procter & Gamble, and Visa.

Over the last five years, the index the fund tracks has generated a return of 15.2% per annum. This would have turned a $10,000 investment into almost $20,300.

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*Returns as of January 12th 2022

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF 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 Bruce Jackson.

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