Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE:BRK.B)'s long-term performance is often cited by investors as the gold standard.
Over the past 60 years, under Warren Buffett's leadership, Berkshire Hathaway has achieved an annual compound growth rate of nearly 20% per annum.
In the last 5 years, the stock is up 170%, outperforming the S&P 500 Index (SP: .INX).
Berkshire has built a track record that's pretty hard to beat.
However, several ASX exchange-traded funds (ETFs) have eclipsed Berkshire's track record.
What are they?
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Global X Fang+ ETF (ASX: FANG)
The Global X Fang+ ETF is one of the best-performing ETFs on the ASX, over both short and long time frames.
Over the past five years, it has risen 179%, outperforming Berkshire Hathaway, which is up 170% over the same time frame. On a one-year basis, the FANG ETF is also ahead, rising 22% compared to 18% for Berkshire.
The FANG ETF contains 10 equally weighted holdings within the technology sector. Its best performing holding over the past 5 years has been Nvidia Corp (NASDAQ: NVDA), which is up 1,453%. Tesla Inc (NASDAQ: TSLA) is the only magnificent 7 stock excluded from the ETF.
With a management fee of 0.35%, it's certainly not as cheap as many other ASX-listed ETFs. However, given its performance, it has been well worth it for investors.
With strong momentum anticipated in areas like AI adoption and software spending, the US technology sector is well placed to continue outperforming.
Vaneck Global Defence ETF (ASX: DFND)
Australia's first defence-focused ETF, the Vaneck Global Defence ETF, has been another strong performer.
Although it hasn't been around for as long as the FANG ETF, it has outperformed Berkshire Hathaway since it listed.
Since listing in September 2024, it is up 79%. Meanwhile, Berkshire has risen 6% over this time frame.
The DFND ETF contains 29 holdings, with exposure to a portfolio of listed global companies involved in the military or defence industries.
Geopolitical tensions have been on the rise over the past couple of years. Over the weekend, NBC News reported that the US had carried out strikes on three Iranian nuclear sites.
Its annual management fee is relatively high for an ASX ETF at 0.65%. However, given its performance, this has been more than justified so far.
Betashares Global Defence ETF (ASX: ARMR)
The Betashares Global Defence ETF is another defence-themed ETF with an outstanding track record.
Like DFND, it has only been listed for less than a year.
Since listing in October 2024, it has risen 55%. Berkshire is up just 5% over the same time frame.
ARMR provides exposure to up to 60 companies, which make more than 50% of their revenue from developing and manufacturing military and defence equipment and defence technology.
The ARMR ETF's management expense is slightly cheaper than the DFND ETF at 0.55%.
With tension in the Middle East ongoing, both the DFND ETF and the ARMR ETF could be well positioned to outperform Berkshire Hathaway shares over at least the next 12 months.
