Are you wanting an easy way to make buy and hold investments?
If you are, exchange traded funds (ETFs) could be worth considering.
They allow investors to buy groups of quality stocks from different areas with relative ease, removing the need to pick individual stocks.
But which funds could be great buy and hold options? Here are three to consider:
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Betashares S&P/ASX Australian Technology ETF (ASX: ATEC)
The first ASX ETF to look at is the Betashares S&P/ASX Australian Technology ETF.
This fund gives investors exposure to the local companies trying to digitise parts of the economy that still have plenty of room to modernise.
That includes businesses involved in online marketplaces, data centres, financial technology, healthcare software, accounting platforms, and enterprise systems. These companies are very different from one another, but they share a common thread. They use technology to make large industries work better.
This gives investors access to the ASX names building tools, platforms, and infrastructure that could become more embedded over time.
The Australian technology sector can be volatile, but for patient investors, this fund offers a simple way to back local innovation across several different business models. It was recently recommended by Betashares.
Global X FANG+ ETF (ASX: FANG)
Another ASX ETF that could be worth a look is the Global X FANG+ ETF.
This fund is concentrated in a small group of global technology and innovation leaders. That makes it very different from a broad market ETF.
Its holdings are companies that already influence enormous parts of the global economy. They shape how people search, shop, stream, advertise, communicate, build software, run cloud workloads, and use artificial intelligence.
The fund's concentration increases risk, because a small number of companies drive performance. But it also gives investors direct exposure to businesses with huge profit pools, strong balance sheets, and the ability to reinvest heavily in the next wave of technology.
For investors who believe the world's largest digital platforms can keep expanding their reach, this fund could be one to hold onto. It was recently recommended by the team at Global X.
VanEck Morningstar International Wide Moat ETF (ASX: GOAT)
A third ASX ETF to consider is the VanEck Morningstar International Wide Moat ETF.
This fund takes a more selective approach to global investing. It looks for companies that have sustainable competitive advantages (aka wide moats) and are trading at attractive valuations.
That gives the ETF a different job from the other two funds. Rather than focusing mainly on technology or innovation, it searches for businesses with staying power.
A company might have a moat because of a trusted brand, cost advantage, network effect, valuable intellectual property, or customer relationships that are hard to break. These qualities can help protect profits when competitors try to attack.
The valuation discipline is also important. Great businesses are not automatically great investments if the price is too high.
For a 10-year holding period, this fund could offer a useful blend of global diversification, quality, and price awareness.
