Investing in exchange-traded funds (ETFs) for the long term can be a great way to build wealth while maintaining a diversified portfolio.
Instead of worrying about short-term market fluctuations, long-term investors can harness the power of compounding to grow their investments substantially over time.
For example, if you were to invest $25,000 in a well-diversified ASX portfolio that generates an average return of 10% per annum, your investment could grow to approximately $65,000 in 10 years.
With that in mind, if you're looking for the best ASX ETFs to buy and hold for the next decade, here are three excellent options worth considering.
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BetaShares Asia Technology Tigers ETF (ASX: ASIA)
With Asia emerging as a global leader in technology and innovation, the BetaShares Asia Technology Tigers ETF could be a great long term pick. It offers investors exposure to a hand-picked selection of the region's top tech companies. This ASX ETF includes industry titans such as Alibaba, PDD Holdings, Tencent, and Samsung—businesses that dominate e-commerce, artificial intelligence, cloud computing, and digital payments in their respective markets.
Asia's middle class is expanding rapidly, driving digital adoption and technological advancements at an unprecedented pace. Investing in this fund allows investors to tap into this structural growth, positioning their portfolios to benefit from the ongoing tech revolution across the region.
BetaShares Nasdaq 100 ETF (ASX: NDQ)
Another ASX ETF for investors to consider as a buy and hold option is the BetaShares Nasdaq 100 ETF. It provides investors with easy exposure to 100 of the largest non-financial companies listed on the Nasdaq Stock Market. This includes household names like Apple, Amazon, Microsoft, and Nvidia. These companies are at the forefront of global technological disruption, driving advancements in artificial intelligence, automation, and next-generation computing.
Overall, tech innovation continues to shape the future, and many Nasdaq-listed companies have demonstrated resilience and adaptability through various market cycles. With BetaShares Nasdaq 100 ETF, investors can access high-growth sectors such as cloud computing, cybersecurity, and e-commerce.
VanEck Morningstar Wide Moat ETF (ASX: MOAT)
Finally, the VanEck Morningstar Wide Moat ETF could be a great buy and hold option. It takes a unique approach to investing by selecting companies with significant competitive advantages or wide moats. These are businesses with strong brand loyalty, high barriers to entry, and sustainable profitability, making them well-positioned to deliver long-term growth.
These are traits that Warren Buffett looks for when making his investments. And given how he is the king of buy and hold investing, it is hard to look beyond this ASX ETF if you want to make long term investments.
