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:
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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.
