Why these ASX ETFs could be long-term market-beaters

Are these ETFs the secret to outperforming the market? Let's find out.

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Unfortunately, without access to a crystal ball, it is impossible to say which exchange-traded funds (ETFs) will beat the market over the long term.

However, we can potentially put the odds in our favour by looking at which types of shares have beaten the market in the past and learning from this.

Two ETFs that have beaten the market in the past are listed below. Here's why they could be top candidates to repeat this success in the future.

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Image source: Getty Images

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Since its inception in 2015, the popular BetaShares NASDAQ 100 ETF has delivered a return of 19.2% per annum. This is approximately double Wall Street's historical return.

The key to its success has been its exposure to many of the biggest and best companies the world has to offer. This includes the likes of Amazon, Apple, Microsoft, Nvidia, and Tesla.

The good news is that with their outlooks still as positive as ever, it wouldn't be surprising to see the BetaShares NASDAQ 100 ETF continue its outperformance long into the future.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

According to his most recent letter to shareholders, Warren Buffett has outperformed the market consistently for almost six decades. This has been driven by the Oracle of Omaha's focus on investing in high-quality companies with sustainable competitive advantages and fair valuations.

Also outperforming the market has been the VanEck Vectors Morningstar Wide Moat ETF, which is invested in a group of shares that exhibit the aforementioned qualities Buffett looks for when he makes his investments. Since its inception in 2015, this ETF has delivered a return of 16.45% per annum.

And given Buffett's long-term success with this strategy, this ETF appears well-positioned to continue its outperformance in the future.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon.com, Apple, BetaShares Nasdaq 100 ETF, Microsoft, Nvidia, and Tesla. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Amazon.com, Apple, Nvidia, and VanEck Morningstar Wide Moat ETF. 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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