2 ASX ETFs to buy and hold forever in your investment portfolio

Man looking at an ETF diagram.

If you are looking for an easy way to invest your hard-earned money, then exchange traded funds (ETFs) could be the answer.

Especially if you’re just wanting to take a set and forget or buy and hold approach to investing.

This is because ASX ETFs allow investors to buy large groups of companies in one fell swoop.

This means you don’t have to pick individual stocks to buy, nor do you really need to keep a close eye on the companies you’re invested in. You can just put your money to work and watch your investments grow.

But which ASX ETFs could be quality options for investors looking to make buy and hold investments? Let’s take a look at two:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

When investing for the long term, it is never a bad idea to invest in the highest quality companies the world has to offer.

The BetaShares NASDAQ 100 ETF certainly ticks this box. It provides investors with access to 100 of the largest non-financial companies on the famous NASDAQ index. These are the giants of Wall Street (and the world) and include iPhone maker Apple (NASDAQ: AAPL), Facebook and Instagram owner Meta (NASDAQ: META), software giant Microsoft (NASDAQ: MSFT), graphics card behemoth Nvidia (NASDAQ: NVDA), and electric vehicle leader Tesla (NASDAQ: TSLA).

Over the last 10 years, the index this ETF tracks has delivered investors a stunning average total return of 22.25% per annum. This would have turned a $10,000 investment into almost $75,000.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another ASX ETF that could be a great buy and hold option is the VanEck Vectors Morningstar Wide Moat ETF.

This fund has a focus on companies that are deemed to have sustainable competitive advantages (wide moats) and fair valuations.

These are the qualities that the king of buy and hold investing, Warren Buffett, looks for when he is making investments for Berkshire Hathaway (NYSE: BRK.B).

And given how the Oracle of Omaha has consistently outperformed the market since all the way back in 1965, I think it is fair to say that a focus on companies with wide moats and fair valuations has its merits.

The companies that the fund invests in will change periodically. But at present it includes tobacco giant Altria Group Inc (NYSE: MO), food company Campbell Soup (NYSE: CPB), beauty products company Estee Lauder (NYSE: EL), sportswear leader Nike (NYSE: NKE), and entertainment juggernaut Walt Disney (NYSE: DIS).

Over the past 10 years, the index the fund tracks has generated an average total return of 17.1% per annum. This would have turned a $10,000 investment into over $48,000.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

See The 5 Stocks *Returns as of 5 May 2024

More reading

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Berkshire Hathaway, BetaShares Nasdaq 100 ETF, Meta Platforms, Microsoft, Nike, Nvidia, Tesla, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2025 $47.50 calls on Nike, long January 2026 $395 calls on Microsoft, and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nike, Nvidia, VanEck Morningstar Wide Moat ETF, and Walt Disney. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.