Ten years is a long time in the share market. Companies rise and fall, technology changes, and entire industries can look very different by the end of a decade.
That is why I think ASX exchange traded funds (ETFs) can be such a good fit for long-term investors.
They allow investors to back markets, investment styles, and major trends without needing every individual stock pick to work out.
With that in mind, here are three ASX ETFs that I think could be excellent buy and hold options for the next 10 years.
Image source: Getty Images
Betashares Nasdaq 100 ETF (ASX: NDQ)
The Betashares Nasdaq 100 ETF could be a strong option for investors who want long-term exposure to some of the world's leading growth companies.
The fund tracks 100 of the largest non-financial companies listed on the Nasdaq exchange. That means investors gain exposure to businesses involved in artificial intelligence, cloud computing, software, semiconductors, ecommerce, digital advertising, streaming, and consumer technology.
I think technology is likely to keep playing a larger role in how businesses operate and how people work, shop, communicate, and spend their time over the next decade. The Betashares Nasdaq 100 ETF gives investors a way to own a collection of businesses at the centre of that change, such as Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT).
Vanguard All-World ex-US Shares Index ETF (ASX: VEU)
The Vanguard All-World ex-US Shares Index ETF is another ASX ETF to consider for the long term.
This fund gives investors exposure to a large group of companies outside the United States, including businesses across Europe, Japan, Asia, emerging markets, and other parts of the world. That can be valuable for investors who already have plenty of US exposure.
After all, the next decade will not necessarily be dominated by one country or one market.
This ASX ETF allows investors to participate if growth comes from areas such as Asian consumer spending, European industrials, Japanese companies, emerging market financials, or global healthcare. It is a simple way to spread investments across a very large part of the global economy.
VanEck Morningstar Wide Moat ETF (ASX: MOAT)
A third ASX ETF to consider is the VanEck Morningstar Wide Moat ETF.
This fund takes a selective approach to buying US shares. Rather than simply buying the biggest companies, it focuses on businesses believed to have sustainable competitive advantages and attractive valuations.
Those advantages could come from strong brands, cost leadership, intellectual property, network effects, or customers that are difficult to lose.
This could be a good thing when investing over a 10-year period. Businesses with genuine competitive advantages have a better chance of protecting profits and compounding earnings for many years.
The valuation discipline is important as well, because even a great company can be a poor investment if investors pay far too much for it.
For investors looking for a more selective way to own quality US businesses, I think the VanEck Morningstar Wide Moat ETF could be a strong long-term choice.
