Why these ASX ETFs could be long-term market-beaters

Are these ETFs the secret to outperforming the market? Let's find out.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Unfortunately, without access to a crystal ball, it is impossible to say which exchange-traded funds (ETFs) will beat the market over the long term.

However, we can potentially put the odds in our favour by looking at which types of shares have beaten the market in the past and learning from this.

Two ETFs that have beaten the market in the past are listed below. Here's why they could be top candidates to repeat this success in the future.

A woman gazes with anticipation into a glass ball she's holding in her hands.

Image source: Getty Images

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Since its inception in 2015, the popular BetaShares NASDAQ 100 ETF has delivered a return of 19.2% per annum. This is approximately double Wall Street's historical return.

The key to its success has been its exposure to many of the biggest and best companies the world has to offer. This includes the likes of Amazon, Apple, Microsoft, Nvidia, and Tesla.

The good news is that with their outlooks still as positive as ever, it wouldn't be surprising to see the BetaShares NASDAQ 100 ETF continue its outperformance long into the future.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

According to his most recent letter to shareholders, Warren Buffett has outperformed the market consistently for almost six decades. This has been driven by the Oracle of Omaha's focus on investing in high-quality companies with sustainable competitive advantages and fair valuations.

Also outperforming the market has been the VanEck Vectors Morningstar Wide Moat ETF, which is invested in a group of shares that exhibit the aforementioned qualities Buffett looks for when he makes his investments. Since its inception in 2015, this ETF has delivered a return of 16.45% per annum.

And given Buffett's long-term success with this strategy, this ETF appears well-positioned to continue its outperformance in the future.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, 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 Amazon.com, Apple, BetaShares Nasdaq 100 ETF, Microsoft, Nvidia, and Tesla. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Amazon.com, Apple, Nvidia, and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ETFs

ETF spelt out with a piggybank.
ETFs

ASX ETFs that target undervalued sectors

These funds could be trading at a discount right now.

Read more »

Target circle going down on a rollercoaster, symbolising volatility.
ETFs

Looking to defend your portfolio from volatility? – 3 great ASX ETFs to consider

These funds aim to help reduce volatility.

Read more »

A group of young people lined up on a wall are happy looking at their laptops and devices as they invest in the latest trendy stock.
ETFs

3 ASX ETFs that could be strong picks for investors in their 30s

Looking for investments in your 30s? Here are three funds to consider.

Read more »

Young businesswoman sitting in kitchen and working on laptop.
ETFs

Should I invest $2,000 in the VAS ETF?

This popular ETF tracks the S&P/ASX 300 and offers broad market diversification.

Read more »

Cubes placed on a Notebook with the letters "ETF" which stands for "Exchange traded funds".
ETFs

2 ASX ETFs I'd buy for returns and to sleep well at night

These funds have strong growth potential.

Read more »

ASX oil share price buy represented by cash notes spilling out of oil pipe Suez ASX energy shares
ETFs

Oil climbs toward US$100 as the Middle East war disrupts global supply

Global commodity markets rise as oil climbs toward US$100 per barrel.

Read more »

Woman in celebratory fist move looking at phone.
ETFs

The ASX ETFs to buy for growth, income, and diversification

Exchange-traded funds can help investors target a variety of investment goals.

Read more »

ETF written on wooden blocks with a magnifying glass.
ETFs

3 ASX ETFs for new investors to consider in 2026

Here's an instantly diversified portfolio with just three ETFs.

Read more »