The ASX share market is a great place to invest in businesses that can grow, in my opinion.
If someone handed me $100,000 to invest for the long term, I know that I'd want to put at least $10,000 of it into two options that could deliver strong growth well into the future.
We can't know for certain which share prices are going to go up. But, companies that can grow revenue and/or profit at a solid rate have a good chance of achieving good performance or even outperformance.
I'd be happy to invest $10,000 in these two ASX shares because I believe they will outperform the S&P/ASX 200 Index (ASX: XJO).
BetaShares Global Sustainability Leaders ETF (ASX: ETHI)
This is a diversified exchange-traded fund (ETF) that enables investors to invest in a portfolio of businesses that are trying to do the right thing when it comes to environmental, social, and corporate governance (ESG) factors.
The 200 companies in the portfolio come from the global share market, have been identified as 'climate leaders' and exclude a number of 'unethical' sectors such as fossil fuels, tobacco, gambling, weapons and so on.
According to BetaShares, a dollar invested in this portfolio has 71.3% lower carbon emissions compared to the Solactive Global DM Index.
Some of the businesses involved that pass all of the screens include Nvidia, Visa, Apple, Mastercard, Home Depot and Toyota.
It comes with an annual management fee of just 0.59%, which is quite inexpensive considering all of the work done to create the portfolio.
Past performance is not a reliable indicator of future returns, but the ETHI ETF returned an average of 16.4% per annum over the five years to April 2023.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara is an ASX healthcare share that makes software to help against breast cancer and lung cancer.
Its AI-powered image analysis enables radiologists "to quantify breast tissue with precision, and helps technologists produce mammograms with optimal image quality, positioning, compression and dose."
The company helps healthcare professionals better identify risk. It's currently focused on the United States, with a market share in the breast screening space of more than a third of US women.
Volpara recently became operating cash flow positive and continues to grow revenue quickly. In the fourth quarter of its FY23 (the three months to March 2023), cash receipts increased by 25% to NZ$10 million.
Annual recurring revenue (ARR) has now reached NZ$33.6 million. The ASX share comes with a gross profit margin of more than 90%, so any revenue growth is very beneficial for the company's financials.
It's seeing its cost base remain "steady", which suggests that the profit margins could rapidly grow from here. The company is looking at future areas of growth, including "new forays in primary care."
If the ASX share continues to be chosen by large healthcare providers such as Banner Health, that bodes well for future revenue growth and returns for shareholders.
