I've got my eyes on a couple of ASX-listed exchange-traded funds (ETFs) that I expect to be major positions in my portfolio in the long-term.
There are certain ASX dividend shares and ASX growth shares I've invested in that I'm very optimistic about.
But, there are a few ASX ETFs that I believe can help fill some investment exposure gaps that some Aussie portfolios, including mine, may have when aiming for (or during) retirement.
So, let's dive in.
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VanEck Morningstar Wide Moat ETF (ASX: MOAT)
It'd be understandable for investors to have a lot of exposure to ASX shares and perhaps to an ASX ETF that gives significant allocation to large US shares, such as with the iShares S&P 500 ETF (ASX: IVV) and Vanguard MSCI Index International Shares ETF (ASX: VGS).
But, there are plenty of other high-quality businesses in the US – the home of numerous compelling companies – that are worth owning.
The MOAT ETF typically has around 50 holdings (it currently has 57). They're all US-listed businesses, though the underlying earnings are more diversified.
There are some great businesses below the tech giant group in size which have very powerful economic moats, which are also called competitive advantages. An economic moat is what helps a business generate revenue/profit and fend off rivals, with examples such as intellectual property, cost advantages and plenty of others.
The MOAT ETF wants to find businesses that have economic moats that are expected to endure for at least 20 years, which means those businesses have a very attractive, long-term future. In turn, this makes the ASX ETF itself a great option to own for the long-term.
Additionally, the ASX ETF only invests in these great businesses when the price is attractive.
In the ten years to March 2026, it had returned an average of 14.7% per year. Past performance is not a guarantee of future returns, but that level of return is powerful to help build towards a great nest egg.
WCM Quality Global Growth Fund (ASX: WCMQ)
The WCMQ ETF is another option that I think plenty of Australians would benefit from owning.
It invests in a portfolio of global shares that have a couple of key features that California-based fund manager WCM believes can help deliver investment (out) performance.
First, the fund wants to find businesses that have strengthening economic moats. It's the 'direction' of the moat that's more important to the WCM investment team than the size of that moat. A business with improving competitive advantages can become increasingly profitable.
The second element of the investment strategy is to invest in businesses that have a corporate culture that fosters an improvement of the competitive advantages.
The WCMQ ETF has retuned an average of 15.1% per year since inception in August 2018, which is a great level of return, though that's not guaranteed to continue in the next several years.
One of the advantages of this fund is that it aims to pay a distribution yield of at least 5%, so it's able to give investors good passive income. I think some investors may be missing an international shares option that pays a good dividend yield.
