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:
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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.
