If you're not a fan of stock picking, don't worry. That's because exchange-traded funds (ETFs) are here to make life easy.
They allow investors to buy groups of shares in one fell swoop. But do they deliver good returns?
Well, over the last decade, they certainly have done. Let's take a look at what $10,000 invested in these ASX ETFs would be worth now:
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BetaShares NASDAQ 100 ETF (ASX: NDQ)
The first ASX ETF that we're going to look at is the massively popular BetaShares NASDAQ 100 ETF.
This ETF provides investors with access to 100 of the largest (non-financial) companies that are listed on the famous NASDAQ exchange. These are the tech giants that provide our search engines, phones, computers, streaming services, electric vehicles, and online shopping.
Over the last decade, the index this ETF tracks has generated a return of 22% per annum. This would have turned $10,000 into almost $75,000.
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
Another ASX ETF that has delivered market-beating returns for investors is the VanEck Vectors Morningstar Wide Moat ETF.
It is a Warren Buffett-inspired ETF that provides investors with access to a group of fairly valued companies that have sustainable competitive advantages or moats. These are qualities that Buffett looks for when identifying investments.
The index the ETF tracks has generated a return of 17.4% per annum over the last 10 years. This would have turned a $10,000 investment into almost $50,000.
Vanguard MSCI Index International Shares ETF (ASX: VGS)
A final ASX ETF that has delivered strong returns for investors is the Vanguard MSCI Index International Shares ETF.
This popular ETF gives investors easy access to ~1,500 of the world's largest listed companies from major developed countries.
Over the last decade, the index it tracks has delivered an average annual return of 12.6%. This means that a $10,000 investment would be worth almost $33,000.
