The ability to invest in ASX exchange-traded funds (ETFs) is really compelling. Being able to invest in a large group of shares in one go is excellent for diversification, while also costing much less in brokerage fees.
There are a few ASX ETFs that have performed very strongly over the long-term, and I wish I could go back a decade in a time machine and put some money into a few of them.
I don't have a crystal ball to know what's going to happen next. But, I do believe the two funds I'll talk about still have a compelling future.
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Betashares Nasdaq 100 ETF (ASX: NDQ)
This fund invests in 100 of the largest non-financial companies listed on the NASDAQ market and includes many companies that are involved with the technological shifts around the world.
The companies in this ASX ETF's portfolio give exposure to trends like artificial intelligence (AI), cloud computing, smartphones, the internet of things, e-commerce, online video, video gaming, autonomous driving and more.
I think it's these sorts of trends that will help lead to further earnings growth for the companies involved, which should be a useful driver of share prices.
The biggest positions in the portfolio currently include Microsoft, Nvidia, Apple, Amazon.com, Broadcom, Meta Platforms, Netflix, Tesla, Costco and Alphabet.
Since its inception in May 2015 to 30 April 2025, it returned an average of 18.7%. I'm not expecting the returns to be as good in the next decade, but I think this collective group can help power the ASX ETF's returns in the coming years and perhaps outperform the S&P/ASX 200 Index (ASX: XJO).
VanEck Morningstar Wide Moat ETF (ASX: MOAT)
This fund is one of my favourites because of its investment strategy.
It aims to buy businesses with excellent long-term potential, and only buy them when they're at a good price.
The ASX ETF invests in businesses that Morningstar analysts believe have high earnings power resulting from competitive advantages developed and sustained over at least 20 years. In other words, these businesses are expected to be strong for decades.
Not only that, but the MOAT ETF only buys into these great businesses when the Morningstar analysts think the share price is undervalued compared to what they calculate its true value to be.
This ASX ETF has also performed very strongly over its history. Between inception in June 2015 to April 2025, it delivered an average return per annum of 14.3%.
While I'm not expecting the returns to be as strong as that, I think it can continue to perform very satisfactorily because of the active component of its strategy to only invest when those great US businesses are priced at attractive value.
