3 ASX ETFs I'd buy and hold for 10 years

I think these ETFs could help you grow your wealth over the long term.

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Key points

  • Investing over the long term allows investors to benefit from compounding
  • Stock-picking isn't for everyone, which can put off investors
  • These ETFs could be the answer and be great long-term options

I firmly believe that making long-term investments in ASX shares is the best way to grow your wealth.

This is because of compounding, which is what happens when you generate returns on top of returns.

It helps explain why a 10% per annum return will turn a single $10,000 investment into $11,000 after one year, then a massive $26,000 after ten years.

But if you're not comfortable stock-picking, don't let that put you off investing. Not when there are exchange-traded funds (ETFs) out there to make things easier for you.

ETFs allow investors to buy a collection of shares through a single investment. In many cases, this can provide instant diversification for a portfolio.

But which ETFs could be great options for buy and hold investors? Three that I would buy are listed below. Let's check them out:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ETF that I think could be a great buy and hold option is the BetaShares Global Cybersecurity ETF. Unless you've been hiding under a rock, you'll know that cybercrime is on the rise. This is good news for the cybersecurity leaders included in this ETF, which appear well-placed to benefit from the increasing demand for their services over the long term. Among its holdings are Accenture, Cisco, Cloudflare, Okta, Palo Alto Networks, and Trend Micro.

VanEck MSCI International Quality ETF (ASX: QUAL)

Another ETF that I would buy for the long term is the VanEck MSCI International Quality ETF. It provides investors with access to a diversified portfolio of approximately 300 quality companies from across developed markets around the world (excluding Australia). To be included in the fund, a company needs to have low leverage, high earnings growth rates, and high returns on equity (ROE). Companies that currently tick these boxes and are included in the ETF are Apple, ASML, Microsoft, Nike, Nvidia, and Visa.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

A third and final ETF that I think could be a top buy and hold option is the VanEck Vectors Morningstar Wide Moat ETF. This ETF gives investors access to a portfolio of US-based companies with fair valuations and sustainable competitive advantages. These are qualities that Warren Buffett looks for when investing and given his track record over multiple decades, I think it is well worth following his investment style. Among the ~50 shares included in the ETF are the likes of Adobe, Alphabet, Amazon, Boeing, Constellation Brands, Microsoft, and Walt Disney.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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. has positions in and has recommended ASML, Accenture Plc, Adobe, Alphabet, Amazon.com, Apple, BetaShares Global Cybersecurity ETF, Cisco Systems, Cloudflare, Constellation Brands, Microsoft, Nike, Nvidia, Okta, Palo Alto Networks, Visa, and Walt Disney. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long January 2024 $145 calls on Walt Disney, long January 2024 $420 calls on Adobe, long January 2025 $290 calls on Accenture Plc, long January 2025 $47.50 calls on Nike, short January 2024 $155 calls on Walt Disney, short January 2024 $430 calls on Adobe, and short January 2025 $310 calls on Accenture Plc. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF. The Motley Fool Australia has recommended ASML, Adobe, Alphabet, Amazon.com, Apple, Nike, Nvidia, Okta, VanEck Morningstar Wide Moat ETF, and Walt Disney. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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