These ASX ETFs could supercharge your returns

ETFs are more than just an easy way to invest. They can be market beaters.

| More on:
The letters ETF with a man pointing at it.

Image source: Getty Images

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

Exchange-traded funds (ETFs) are not only an easy way to invest, they have the potential to deliver strong returns for investors.

For example, the two ASX ETFs listed below (or the indices they track) have all delivered double-digit returns in recent years.

Let's take a closer look at them and see what a $10,000 investment a decade ago would have turned into today:

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The first ASX ETF we are going to look at is the Vanguard MSCI Index International Shares ETF.

It provides investors with access to approximately 1,500 of the world's largest listed companies from major developed countries. This makes it a great way to diversify a portfolio and gain exposure to global economic growth.

Over the last 10 years, the index the fund tracks has delivered an average annual return of 12.49%. This would have turned a $10,000 investment into over $32,000 today.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Warren Buffett has a long history of beating the market, so it should come as no surprise to learn that an ASX ETF inspired by the Oracle of Omaha has done the same.

The VanEck Vectors Morningstar Wide Moat ETF allows investors to invest in the type of companies that Warren Buffett buys for Berkshire Hathaway (NYSE: BRK.B). These are high-quality companies with fair valuations and sustainable competitive advantages.

Since this time in 2013, the index the fund tracks has achieved an average total return of 16.9% per annum. This would have turned a $10,000 investment into just under $48,000 today.

Overall, I believe the above demonstrates why ASX ETFs can be a great option for investors. Though, of course, it is worth remembering that past performance is not a guarantee of future returns.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway and Vanguard Msci Index International Shares ETF. The Motley Fool Australia has recommended Berkshire Hathaway, VanEck Morningstar Wide Moat ETF, and Vanguard Msci Index International Shares 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

A couple cheers as they sit on their lounge looking at their laptop and reading about the rising Redbubble share price
ETFs

5 ASX ETFs to buy with $10,000 today

These funds could be worth a deeper dive. Let's see what they offer.

Read more »

A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin, waiting in anticipation.
ETFs

Why S&P 500 focused IVV ETF isn't as diversified as you might think

Is the IVV ETF a risky investment today?

Read more »

A elder man and woman lean over their balcony with a cuppa, indicating share rpice movement for ASX retirement shares
ETFs

The long game: ASX ETFs to target amidst an ageing population

These funds could be set to benefit from increased demand in global healthcare. 

Read more »

a smiling woman sits at her computer at home with a coffee alongside her, as if pleased with her investments.
ETFs

I rate this ASX ETF as one of the best Aussies can buy

This fund is incredibly high quality. Here’s why it’s so good…

Read more »

The letters ETF on wooden cubes with golden coins on top of the cubes and on the ground
ETFs

These 2 top ASX ETFs look like smart long-term buys after the RBA held rates in July

These could be two of the best ASX ETFs to buy today.

Read more »

A female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.
ETFs

3 exciting ASX ETFs for Aussie investors to watch

Let's see why these funds should be on your watchlist right now.

Read more »

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

How did the iShares S&P 500 AUD ETF perform in FY25?

US shares outperformed ASX shares in FY25 and IVV ETF investors benefited.

Read more »

a man sits back from his laptop computer with both hands behind his head feeling happy to see the Brambles share price moving significantly higher today
Share Market News

Best performing Betashares ASX ETFs over the last year

A review of this ETF provider's best performing funds. 

Read more »