One of the best ways to grow your wealth is by making long-term investments. This allows investors to take full advantage of the power of compounding.
Perhaps the hardest part is deciding which shares to buy.
Well, the good news is that exchange-traded funds (ETFs) can make things super easy for you by allowing you to invest in large and diverse groups of shares with a single click of the button.
In addition, a number of ETFs (or the indices they track) have generated market-beating returns for investors over the last decade.
So, not only are they an easy option, but they can also be a winning option for investors. Let's take a look at two market-beaters:
BetaShares NASDAQ 100 ETF (ASX: NDQ)
It won't be overly surprising to learn that the BetaShares NASDAQ 100 ETF has consistently smashed the market.
Over the last five years, its units have generated a return of 18.6% per annum. And over the last decade, the index the fund tracks has been even stronger with a 21.2% per annum return.
The key to its success has been the 100 high-quality companies included in the fund. These are the absolute titans of our age such as Amazon, Apple, and Microsoft.
Betashares Global Quality Leaders ETF (ASX: QLTY)
Another market beater has been the index that the Betashares Global Quality Leaders ETF tracks. Over the last decade, it has delivered a return of 15% per annum.
Once again, it's not overly surprising to see that this has been the case. That's because this ETF, which comes highly recommended by Betashares' chief economist, David Bassanese, gives investors access to approximately 150 global companies that rank highly on four key quality metrics. This means you're buying the creme de la creme of listed companies.
At present, this includes global giants such as Alphabet, Microsoft, Novo Nordisk, and Visa.