Beating the market, in our case the S&P/ASX 200 Index (ASX: XJO), is the goal of most ASX investors, perhaps aside from those just seeking maximum dividend income. After all, if any investor were happy with achieving the market return, we wouldn't bother owning individual stocks in place of a simple ASX index exchange-traded fund (ETF).
But of course, beating the market is easier said than done. Most professional investors struggle to do it consistently, which doesn't bode well for the average retail investor.
Yet, I believe it can be done. I also believe that most investors, regardless of preference for individual stocks or index funds, have a fair shot at it. A potential path to doing so is by incorporating a few additional ETFs into an ASX stock or index fund portfolio. Here are two ETFs I would use for this endeavour.
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2 ASX ETFs that could help you beat the market
BetaShares Nasdaq 100 ETF (ASX: NDQ)
This ETF from Betashares is an index fund covering the 100 largest non-financial shares listed on the American NASDAQ stock exchange. The NASDAQ is known for being the home of most of the US's largest tech stocks. That's everything from Magnificent 7 giants like Microsoft and Apple to Netflix, Shopify and AMD.
Investing in the NASDAQ has been phenomenally rewarding in recent years. As of 31 July, NDQ units have returned an average of 20.09% per annum over the past ten years. There's no guarantee that this will continue, of course. But given how the top US tech stocks continue to drive global innovation, I think this ETF has a reasonable shot at continuing to outperform the ASX 200 going forward.
BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)
Our own Australian tech sector isn't nearly as developed or dominant as its American counterpart. Even so, it has still proven itself to be a winner in recent times. This ETF aims to capture this performance and deliver it to investors in one easy fund. ATEC holds the largest and most profitable ASX tech shares within its portfolio.
You'll find names like Pro Medicus Ltd (ASX: PME), WiseTech Global Ltd (ASX: WTC), Xero Ltd (ASX: XRO) and REA Group Ltd (ASX: REA) in its holdings. As well as many other successful stocks.
Over the past five years, ATEC units have also handily outperformed the broader ASX 200, delivering an average gain of 14.61% per annum (as of 31 July). Again, there are no guarantees this will continue. But I think the calibre of ATEC's holdings gives this ETF a good chance of it.
