ASX growth shares are usually some of the best investments to own for the long-term because of how much bigger they can become over the years.
Compounding is a very powerful force that helps a business scale its profits. It's quite easy to underestimate how much progress a business can make after three or five years.
Some larger businesses are growing at a rapid pace, but they're priced accordingly. That's why I think it's better to look at smaller businesses that have significant growth potential.
Over the next five years, I believe the two investments below could be two of the stronger (non-resource) performers.
VanEck MSCI International Small Cos Quality ETF (ASX: QSML)
This exchange-traded fund (ETF) is one of the most appealing for growth because of the types of businesses it's invested in.
As the name suggests, it invests in quality, small international businesses. The reason why I'm calling this fund an ASX growth share is because we can buy it on the ASX and the businesses have attractive growth credentials.
It invests in 150 of the world's highest-quality small companies across various countries and sectors, providing diversification.
How is it determined that these businesses are high-quality? There are three factors – a high return on equity (ROE), earnings stability and low financial leverage. Combined, those elements result in the fund only investing in the very best businesses.
Of course, past performance is not a guarantee of future performance, but in the three years to 31 August 2025, the ETF delivered an average return of 18.9% per year.
Temple & Webster Group Ltd (ASX: TPW)
Temple & Webster is a leading online retailer of furniture and homewares. It sells hundreds of thousands of products, with a significant majority shipped straight from suppliers to customers. This gives the ASX growth share a capital-light model and also enables Temple & Webster to sell an enormous range of items.
The company is aiming for $1 billion of annual sales in the next few years and I think it's on track to reach it considering the pace it's growing at. In FY25 it achieved 20.7% revenue growth to $600.7 million, with trading in FY26 to 11 August 2025 showing 28% year-over-year revenue growth.
Temple & Webster also has a small but growing home improvement segment, which is adding to its revenue growth. The company said home improvement was "outperforming" in the first few weeks of FY26.
I believe more people will adopt online shopping in the coming years, which bodes well for the company's market share and profit margins.
Finally, with interest rates falling in Australia, I think household demand could increase for the products Temple & Webster sells.
