Are these market-beating ASX ETFs top buys in December?

These ETFs have delivered sensational returns for investors.

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

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

One of the best ways to grow your wealth is by making long-term investments. This allows investors to take full advantage of the power of compounding.

Perhaps the hardest part is deciding which shares to buy.

Well, the good news is that exchange-traded funds (ETFs) can make things super easy for you by allowing you to invest in large and diverse groups of shares with a single click of the button.

In addition, a number of ETFs (or the indices they track) have generated market-beating returns for investors over the last decade.

So, not only are they an easy option, but they can also be a winning option for investors. Let's take a look at two market-beaters:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

It won't be overly surprising to learn that the BetaShares NASDAQ 100 ETF has consistently smashed the market.

Over the last five years, its units have generated a return of 18.6% per annum. And over the last decade, the index the fund tracks has been even stronger with a 21.2% per annum return.

The key to its success has been the 100 high-quality companies included in the fund. These are the absolute titans of our age such as Amazon, Apple, and Microsoft.

Betashares Global Quality Leaders ETF (ASX: QLTY)

Another market beater has been the index that the Betashares Global Quality Leaders ETF tracks. Over the last decade, it has delivered a return of 15% per annum.

Once again, it's not overly surprising to see that this has been the case. That's because this ETF, which comes highly recommended by Betashares' chief economist, David Bassanese, gives investors access to approximately 150 global companies that rank highly on four key quality metrics. This means you're buying the creme de la creme of listed companies.

At present, this includes global giants such as Alphabet, Microsoft, Novo Nordisk, and Visa.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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 Alphabet, Amazon, Apple, BetaShares Nasdaq 100 ETF, Microsoft, and Visa. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Novo Nordisk. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, and Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ETFs

Exchange-traded fund spelt out with ETF in red and a person pointing their finger at it.
ETFs

2 of the best ASX ETFs to buy and hold for a decade or more

Let's see what makes these funds stand out from the rest.

Read more »

a group of people in business attire gather around a computer in an office environment with expressions of concern as they try to nut out the answer to a challenge they are facing.
ETFs

What are the 2 biggest ASX ETF themes today?

Betashares reveals the two best-performing segments of the ASX ETF market in the second half of FY25.

Read more »

a couple and their baby sit together at their computer carrying out digital transactions and smiling happily.
ETFs

5 reasons why the Vanguard Australian Shares Index ETF (VAS) is a great investment for most Australians

There are a number of positives to like about this fund…

Read more »

ETF spelt out with a rising green arrow.
ETFs

5 high-quality ASX ETFs to buy in August

Let's see what makes these funds top picks for Aussie investors.

Read more »

A businesswoman weighs up the stack of cash she receives, with the pile in one hand significantly more than the other hand.
ETFs

Does the VanEck Wide Moat ETF really have a 6% dividend yield right now?

How can an American-focused ETF pay such a big yield?

Read more »

Happy woman on her phone while her electric vehicle charges.
ETFs

EV demand comes roaring back. Time to buy this EV-focused ASX ETF?

Global EV demand has surged 30% year-on-year.

Read more »

A couple sit in their home looking at a phone screen as if discussing a financial matter.
ETFs

3 high-yield ASX ETFs to beat falling interest rates

Are you looking to boost passive income?

Read more »

A young man wearing glasses writes down his stock picks in his living room.
ETFs

4 reasons why this ASX ETF is one of the best buys today

I think this is one of the most exciting buys for Aussies.

Read more »