When it comes to investing, time is the most powerful weapon you have.
By buying quality exchange-traded funds (ETFs) and holding them for a decade or more, you give compounding the chance to work its magic.
That said, here are three of the best ASX ETFs that could reward patient investors over the next 10 years.
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Betashares Australian Small Companies Select ETF (ASX: SMLL)
The Betashares Australian Small Companies Select ETF offers investors exposure to a handpicked basket of small-cap shares on the ASX. Small caps are often seen as riskier, but they can deliver stronger growth than larger companies over time.
This ASX ETF aims to capture the upside of small cap investing while avoiding common pitfalls. Its index screens for companies with positive earnings, low debt, and reasonable valuations. The result is a portfolio of 60–90 stocks that is broadly diversified but tilted toward quality.
Top holdings include Perseus Mining Ltd (ASX: PRU), Harvey Norman Holdings Ltd (ASX: HVN), and A2 Milk Company Ltd (ASX: A2M). By mixing miners, retailers, and service providers, the Betashares Australian Small Companies Select ETF taps into the entrepreneurial energy of smaller businesses while keeping a focus on financial discipline. It was named as one to consider buying by Betashares this month.
Betashares Global Quality Leaders ETF (ASX: QLTY)
Another ASX ETF that could be a top buy and hold contender is the Betashares Global Quality Leaders ETF. It focuses on around 150 of the highest-quality companies in the world, chosen for their strong balance sheets, stable earnings, and high returns on equity.
Holdings include ResMed Inc (ASX: RMD), Johnson & Johnson (NYSE: JNJ), and Adobe (NASDAQ: ADBE). By prioritising quality, the Betashares Global Quality Leaders ETF tilts towards businesses that can better withstand economic downturns and still deliver growth, making it a smart option for investors looking to sleep well at night. It was also named as one to consider buying by Betashares.
iShares S&P 500 ETF (ASX: IVV)
Finally, the iShares S&P 500 ETF could be one of the best buy and hold picks out there. It is one of the simplest ways to invest in the world's most important share market. It tracks the S&P 500 index, which includes the 500 largest stocks in the U.S.
That means exposure to household names such as Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOGL), and Nvidia (NASDAQ: NVDA). Over the long term, the S&P 500 has delivered strong returns, thanks to its exposure to innovative and globally dominant businesses. I wouldn't bet against this happening over the next decade.
