I think that buy and hold investing is one of the best ways to grow your wealth.
This is because the longer you are able to leave your money in the market, the longer it has to compound.
Compounding is what happens when you earn interest on top of interest or returns on top of returns.
It explains why a 10% annual return turns $10,000 into $11,000 after one year and then almost $70,000 in 20 years.
The only problem is that not everybody is confident enough to pick stocks to invest in for the long term. But don't worry because exchange-traded funds (ETFs) are here to make life easy for investors.
They remove the need to pick individual stocks and allow investors to buy large groups of them with a single click of a button.
But which ASX ETFs could be good buy and hold options for investors? Let's take a quick look at three:
BetaShares NASDAQ 100 ETF (ASX: NDQ)
The BetaShares NASDAQ 100 ETF could be a great buy and hold investment option for investors.
It provides investors with exposure to many of the best companies in the world. These are the 100 largest (non-financial) stocks on Wall Street's famous NASDAQ index.
This is where you will find tech giant such as Amazon, Apple, Microsoft, Nvidia, and Tesla, as well as well-known non-tech companies including coffee chain behemoth Starbucks, energy drink seller Monster Beverage, yoga retailer Lululemon, and drinks giant PepsiCo.
Collectively, these 100 companies have very bright long term outlook. It is for this reason that it could make the ETF a great place to invest over the next decade and even beyond.
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
The VanEck Vectors Morningstar Wide Moat ETF could be another ASX ETF to buy and hold.
In fact, it could be the epitome of what investors should look for when making long term investments.
That's because this ETF aims to invest in the style of Warren Buffett, who is the unofficial king of buy and hold investing. He has smashed the market over multiple decades thanks to his focus on buying high quality companies with sustainable competitive advantages and fair valuations.
These are the types of companies that you will find in the VanEck Vectors Morningstar Wide Moat ETF.
Vanguard All-World ex-U.S. Shares Index ETF (ASX: VEU)
Finally, another buy and hold option could be the Vanguard All-World ex-U.S. Shares Index ETF.
This ASX ETF offers investors easy access to a massive ~3,500 companies listed in developed and emerging markets across the globe (but excluding the United States).
Among the ASX ETF's holdings you will find quality companies such as HSBC Holdings, LVMH Moet Hennessy Louis Vuitton, Samsung, and Taiwan Semiconductor.
