One of the smartest ways to build long-term wealth is through investing and letting the power of compounding work its magic.
The longer you stay invested, the greater the potential for your returns to snowball. For instance, a $10,000 investment compounding at 10% per annum would grow to $11,000 after just one year—but stretch that out over a decade, and you'd be looking at close to $26,000.
For those who aren't confident with picking individual stocks, exchange-traded funds (ETFs) offer a simple solution.
By investing in an ASX ETF, you gain exposure to a basket of quality shares in one transaction. But which ETFs could be solid long-term options? Here are three that stand out.
BetaShares NASDAQ 100 ETF (ASX: NDQ)
If you're looking for an ETF stacked with high-quality companies, the BetaShares NASDAQ 100 ETF is hard to overlook.
This fund provides exposure to 100 of the largest non-financial companies listed on the NASDAQ index. That includes global tech giants such as Microsoft (NASDAQ: MSFT), AI chip leader Nvidia (NASDAQ: NVDA) and iPhone maker Apple (NASDAQ: AAPL).
Given the track record of these tech heavyweights, this ETF appears well-placed to continue outperforming the broader market over the next decade. If you're seeking long-term growth, this fund could be a great addition to your portfolio.
BetaShares Australian Quality ETF (ASX: AQLT)
For those who want to invest in the best companies on the ASX, the BetaShares Australian Quality ETF is one to consider.
Unlike traditional ASX index funds that weight companies by size, this ETF takes a quality-first approach. This means that it selects stocks based on key financial metrics like return on equity, earnings stability, and low debt levels.
BetaShares recently tipped this ETF as a potential market beater, explaining that quality stocks tend to generate higher returns while offering defensive characteristics. The fund's largest holdings include names such as banking giant Commonwealth Bank of Australia (ASX: CBA) and health imaging technology leader Pro Medicus Limited (ASX: PME).
BetaShares Asia Technology Tigers ETF (ASX: ASIA)
If you're bullish on the rise of Asian tech, then the BetaShares Asia Technology Tigers ETF could be a compelling long-term investment.
This fund provides exposure to the region's top tech stocks, excluding Japan. This includes e-commerce giant Alibaba and Temu owner PDD Holdings. Many of these companies are Asia's answer to the biggest names in Silicon Valley, with strong growth potential driven by the region's expanding middle class and increasing digital adoption.
For investors looking for long-term exposure to the fast-growing tech sector, this ETF could be a strong choice.
