In the last financial year the ASX 200 index delivered a return of 7.8% before dividends.
While this was a great performance, there were a number of exchange-traded funds (ETFs) that achieved market-beating returns over the 12 months.
For example, the three ASX ETFs listed below all made their unitholders smile in FY 2024. And the good news is that they could continue this trend long into the future. Here's why:
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BetaShares NASDAQ 100 ETF (ASX: NDQ)
This hugely popular ASX ETF continued its winning ways in the last financial year. During the 12 months, the BetaShares NASDAQ 100 ETF delivered a return of approximately 30%.
This was driven by strong performances from many of its 100 holdings during the period. One of those was of course Nvidia (NASDAQ: NVDA), which almost tripled in value during the year. This made the graphics processing units company the largest on Wall Street at one stage with a market capitalisation above US$3 billion.
Looking to the future, this ETF looks well-positioned thanks to the positive long-term outlooks of many of the companies held by the fund. These are the tech behemoths that provide the search engines, streaming services, mobile phones, spreadsheets, electric vehicles, and online shopping platforms we use daily.
Betashares Global Quality Leaders ETF (ASX: QLTY)
Another ASX ETF that beat the market in the last financial year was the Betashares Global Quality Leaders ETF. It achieved a return of 23% over the 12 months.
It seems that the fund's focus on investing in the highest quality companies in the world is working wonders for investors. Betashares' chief economist, David Bassanese, will no doubt be pleased with this return. He recommended the ETF last year.
At present, there are approximately 150 companies included in the fund. These companies rank highly on four key metrics: return on equity, debt-to-capital, cash flow generation, and earnings stability. Given its success last year, it wouldn't be surprising if this ETF continues its strong form
Vanguard MSCI Index International Shares ETF (ASX: VGS)
The popular Vanguard MSCI Index International Shares ETF outperformed with a gain of almost 19% during the last financial year.
It isn't hard to see why this ASX ETF delivered the goods for investors. That's because it is focused on buying 1,500 of the world's largest listed companies from major developed countries.
This means that you are buying a slice of high-quality global giants from a range of industries. This includes Apple, Johnson & Johnson, JP Morgan, Nestle, and Visa.
