With so much change happening with both AI technology and energy prices, it may seem like it's hard to find the right opportunities. Certain ASX-listed exchange-traded funds (ETFs) could be just the right pick to navigate the short term and long term.
Diversification is a powerful tool, though it's best when it doesn't materially worsen the returns. Investing in too many different types of assets could lead to 'di-worsification' as it has been termed. I prefer sticking to shares for my own wealth-building because of the compounding and how easy it is to invest in shares.
With that in mind, the following two ASX ETFs look very appealing to me.
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VanEck Morningstar Wide Moat ETF (ASX: MOAT)
This ASX ETF is one of the most appealing for long-term investing because of its investment style.
Morningstar analysts aim to identify US businesses that have competitive advantages that will allow them to continue making good profits (more likely than not) for at least 20 years. Competitive advantages can also be called an economic moat.
Economic moats can come in many different forms, such as cost advantages, intellectual property, regulatory licenses, brand power, network effects, and so on. It's what keeps businesses ahead of their competitors. Think about the things that make you choose your smartphone, toothpaste, or where you go for your food shopping – that's probably an economic moat in some way.
By only investing in businesses with long-term potential, the MOAT ETF has made itself an appealing long-term investment from day one. Obviously, the holdings do change every so often – it's not forced to hold onto the same names for 20 years, but it'd (hopefully) be a positive result if it did.
The second stage of this investment strategy is that the ASX ETF only invests when these high-quality names are trading at an attractive price.
By using this strategy of owning great businesses at good prices, I think the portfolio is likely to continue its appealing long-term performance, though I'm not expecting any particular level of return.
WCM Quality Global Growth Fund (ASX: WCMQ)
I'm a big believer in the idea that the best businesses tend to win over time, with their culture an important driver of that success, while a lack of a winning culture leads to mediocre results.
The investment team from WCM – an investment outfit based in Laguna Beach, California – is looking for businesses with an improving economic moat and a corporate culture that supports strengthening that moat.
I like owning businesses that are becoming increasingly profitable for each dollar of revenue they earn – rising margins are a great sign.
But many of these great businesses are listed overseas, which is partly why the WCMQ ETF is so appealing to me – it invests across the global share market in search of opportunities. Only 55% of the portfolio is invested in shares from the Americas, providing a pleasing level of global diversification and avoiding concentration in a few US tech giants.
Impressively, over the past 10 years to February 2026, this investment strategy has returned an average of 16.6%, outperforming the global share market by an average of 3%. While past performance is not a guarantee of future returns, I like WCM's style of investing, which I think will help deliver solid returns.
As a bonus, the WCMQ ETF targets a distribution yield of 5% per year, which I like as a useful level of passive income.
