Do you have room in your portfolio for a new exchange-traded funds (ETFs) or two? If you do, then it could be worth considering the two in this article.
These ASX ETFs have strong track records, provide investors with access to high-quality stocks, and look well-placed to outperform over the next decade.
Here's what you need to know about them:
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VanEck Morningstar Wide Moat ETF (ASX: MOAT)
The VanEck Morningstar Wide Moat ETF gives Australian investors access to U.S. based stocks that have sustainable competitive advantages and are deemed to be fairly valued.
The portfolio is dynamic and updated regularly, but current holdings include high-quality names such as Microsoft (NASDAQ: MSFT), Walt Disney (NYSE: DIS), Nike (NYSE: NKE), and Adobe (NASDAQ: ADBE).
It also holds undervalued industrial and healthcare names like Caterpillar Inc (NYSE: CAT), GE Healthcare Technologies (NASDAQ: GEHC), Bristol-Myers Squibb Co (NYSE: BMY), and Amgen Inc (NASDAQ: AMGN).
By focusing on companies with wide economic moats and attractive valuations, the VanEck Morningstar Wide Moat ETF seeks to deliver above-market returns with less risk. It has delivered on this aim over the past 10 years, with the fund it tracks generating an average total return of 14.86% per annum.
This could make it a particularly appealing option for long-term investors who want a quality tilt in their U.S. equity exposure.
iShares S&P 500 ETF (ASX: IVV)
Another ASX ETF for investors to look at is the iShares S&P 500 ETF. It tracks the iconic S&P 500 Index, giving investors low-cost access to the 500 largest companies listed in the United States.
This fund is often recommended by legendary investors like Warren Buffett, who famously said most investors would be better off simply buying a low-cost S&P 500 index fund and holding it for decades.
Its top holdings include some of the most recognisable companies in the world. This includes tech giants like Apple (NASDAQ: AAPL), Nvidia Corp. (NASDAQ: NVDA), and Meta Platforms Inc. (NASDAQ: META). It also holds powerful brands across various sectors like Johnson & Johnson (NYSE: JNJ), ExxonMobil Corp. (NYSE: XOM), Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRK.B), Starbucks (NASDAQ: SBUX), and JPMorgan Chase & Co. (NYSE: JPM).
For long-term investors, the iShares S&P 500 ETF offers broad U.S. market exposure, high liquidity, strong historical returns, and a proven track record of compounding wealth over time. It remains a foundational building block in many globally diversified portfolios.
Over the past 10 years, this ASX ETF has delivered an average total return of 14.57% per annum.
