5 high-quality ASX ETFs to buy and hold for 20 years

Let's see why these funds could be worth holding onto for the long term.

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When it comes to building long-term wealth, time in the market is your greatest ally.

By holding high-quality exchange-traded funds (ETFs) for decades, investors can benefit from compounding returns, diversification, and exposure to major economic growth themes without ever needing to pick a single stock.

With that in mind, here are five strong ASX ETFs that could be smart buys for investors aiming to hold through to 2045 and even beyond.

Young female investor holding cash ASX retail capital return

Image source: Getty Images

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The Vanguard MSCI Index International Shares ETF provides investors with exposure to over 1,200 companies from developed markets around the world.

Top holdings currently include Johnson & Johnson (NYSE: JNJ), ASML (NASDAQ: ASML), and Toyota Motor Corp (TYO: 7203). These are all businesses with long histories of innovation, strong balance sheets, and global reach.

As a low-cost, broad-market ETF, the Vanguard MSCI Index International Shares ETF could be a great core portfolio holding for decades.

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF offers investors direct access to the 500 largest companies in the United States. This arguably makes it a one-stop shop for many of the world's most influential businesses.

Its holdings include the likes of Berkshire Hathaway (NYSE: BRK.B), Eli Lilly and Co (NYSE: LLY), and tech giants like Google parent Alphabet (NASDAQ: GOOGL).

The S&P 500 index has historically been a strong long-term performer, and the iShares S&P 500 ETF appears well-placed to continue this trend long into the future.

Betashares Global Quality Leaders ETF (ASX: QLTY)

The Betashares Global Quality Leaders ETF is another ASX ETF to look at. It invests in a portfolio of high-quality global companies with strong profitability, low debt, and consistent earnings growth.

Notable holdings include L'Oreal (FRA: LOR), ResMed Inc (ASX: RMD), and Intuit Inc (NASDAQ: INTU). These companies have dominant market positions and benefit from powerful long-term trends in beauty, healthcare, and software.

For investors seeking stability alongside growth, the Betashares Global Quality Leaders ETF could be a top option. It was recently named as one to consider buying by the team at Betashares.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The Betashares Asia Technology Tigers ETF could be a good buy and hold option. It gives investors exposure to the technology powerhouses of Asia (excluding Japan), tapping into the region's rapid digital growth.

Its top holdings include TSMC (NYSE: TSM), Meituan (SEHK: 3690), and PDD Holdings (NASDAQ: PDD). These are leaders in semiconductors, online services, and e-commerce.

With Asia's middle class expanding and internet penetration climbing, these businesses (and others in the fund) are well-positioned for sustained growth.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

Finally, the VanEck Morningstar Wide Moat ETF could be a great buy and hold pick.

Especially given how its is based on the teachings of Warren Buffett, focusing on US companies with fair valuation and wide moats. The latter are sustainable competitive advantages that protect profits over the long term.

Holdings include Salesforce (NYSE: CRM), Caterpillar Inc (NYSE: CAT), and Pfizer Inc (NYSE: PFE). This mix offers exposure to enterprise software, industrial machinery, and pharmaceuticals — sectors that tend to remain relevant through changing economic cycles.

All in all, this leaves the fund well-placed to potentially outperform, just like Buffett, over the long term.

Motley Fool contributor James Mickleboro has positions in Betashares Capital - Asia Technology Tigers Etf, ResMed, and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended ASML, Alphabet, Berkshire Hathaway, Intuit, Pfizer, ResMed, Salesforce, Taiwan Semiconductor Manufacturing, and iShares S&P 500 ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended ASML, Alphabet, Berkshire Hathaway, Salesforce, VanEck Morningstar Wide Moat ETF, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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