Over the last 30 years, ASX shares have generated an average total return of 9.6% per annum.
This means that a single $20,000 investment in ASX shares three decades ago would have turned into over $300,000 if it earned the market return.
But what if we could better that? Well, two exchange-traded funds (ETFs) that have outperformed the market over the last decade are listed below. And while past performance is no guarantee of future returns, it wouldn't be surprising if they repeated this feat over the long term.
Here's what you need to know about them:
BetaShares NASDAQ 100 ETF (ASX: NDQ)
The index that the popular BetaShares NASDAQ 100 ETF tracks has generated an incredible return of 22% per annum over the last decade.
This has been underpinned by the quality of the companies that make up its 100 holdings. These are the largest (non-financial) stocks that are listed on the famous NASDAQ exchange on Wall Street, such as tech giants such as Alphabet, Amazon, Apple, Microsoft, and Nvidia.
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
Another ASX ETF that has beaten the market in recent years is the VanEck Vectors Morningstar Wide Moat ETF. Over the last decade, the index the fund tracks has delivered an average annual return of 17.4% per annum.
The key to this outperformance has been the ETF's focus on companies that are fairly valued and have sustainable competitive advantages or moats. These are all qualities that Warren Buffett looks for when identifying investments.
Given the Oracle of Omaha's track record, it isn't surprising that this ETF has done so well. And with Buffett's success spanning many, many decades, I wouldn't be surprised to see this strong form continue in the future.
