3 strong ASX ETFs to buy and hold for 10 years

There are good reasons why these funds could be top long term picks.

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Key points

  • The Betashares Global Cash Flow Kings ETF focuses on resilient companies generating strong cash flows like Alphabet and Nvidia, aligning with Buffett’s approach for sustainable growth.
  • The VanEck Morningstar Wide Moat ETF invests in US stocks with competitive advantages, including Nike and Salesforce, aiming for long-term profit protection.
  • The Betashares MSCI Emerging Markets Complex ETF diversifies into emerging markets with potential high-growth stocks such as Taiwan Semiconductor, offering exposure to rising economies.

Warren Buffett didn't build his fortune by constantly trading in and out of the market. Instead, he became one of the world's most successful investors by buying high-quality stocks and holding them for long periods, letting time and compounding do the heavy lifting.

That approach isn't reserved for billionaires. Everyday investors can follow the same philosophy, particularly by using exchange-traded funds (ETFs), which offer diversification, low costs, and exposure to long-term growth themes in a single investment.

With a decade-long time horizon, the focus shifts away from short-term noise and towards owning assets that can steadily compound in value.

With that in mind, here are three ASX-listed ETFs that could suit a buy-and-hold strategy over the next 10 years.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

The Betashares Global Cash Flow Kings ETF takes a Buffett-like approach by focusing on companies that generate strong, consistent free cash flow. Cash flow is the lifeblood of any business, and companies that produce it reliably tend to be more resilient, more profitable, and better positioned to invest in future growth.

This ASX ETF's portfolio includes global heavyweights such as Alphabet (NASDAQ: GOOGL), ASML Holding (NASDAQL ASML), Palantir Technologies (NASDAQ: PLTR), Visa (NYSE: V), Nvidia (NASDAQ: NVDA), and Costco (NASDAQ: COST). These are businesses with dominant market positions and business models that consistently convert revenue into cold hard cash.

By targeting cash flow rather than hype, this fund aims to capture long-term compounding from quality companies across multiple sectors. It is no wonder then it was recommended by analysts at Betashares.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The VanEck Morningstar Wide Moat ETF is inspired by Buffett's investment philosophy. The fund invests in US stocks that have sustainable competitive advantages (aka wide moats) that protect profits from competitors over long periods.

But it doesn't stop there. Buffett has always spoken about the importance of buying stocks at a good price. This fund offers that as well.

Current holdings include Applied Materials (NASDAQ: AMAT), Estee Lauder (NYSE: EL), Thermo Fisher Scientific (NYSE: TMO), Merck & Co (NYSE: MRK), Danaher Corp (NYSE: DHR), Salesforce (NYSE: CRM), and Nike (NYSE: NKE).

Betashares MSCI Emerging Markets Complex ETF (ASX: BEMG)

A third ASX ETF that could be a great buy and hold options is the Betashares MSCI Emerging Markets Complex ETF. It adds a different dimension to a long-term portfolio by targeting growth outside developed markets. Emerging economies are being shaped by powerful structural forces, including urbanisation, rising incomes, and accelerating digital adoption.

This ASX ETF provides exposure to more than 1,000 large and mid-cap stocks across 24 emerging market countries. Its largest holdings include Taiwan Semiconductor Manufacturing Company (NYSE: TSM), Tencent Holdings (SEHK: 700), Alibaba (NYSE: BABA), and SK Hynix Inc (KRX: 000660).

While emerging markets can be volatile in the short term, their long-term growth potential remains compelling. It is for that reason that Betashares recently recommended this fund to investors.

Motley Fool contributor James Mickleboro has positions in Nike and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Applied Materials, Costco Wholesale, Danaher, Merck, Nike, Nvidia, Salesforce, Taiwan Semiconductor Manufacturing, Tencent, Thermo Fisher Scientific, and Visa. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Alibaba Group. The Motley Fool Australia has recommended Alphabet, Nike, Nvidia, Salesforce, VanEck Morningstar Wide Moat ETF, and Visa. 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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