I believe buy and hold investing is one of the best ways to grow your wealth.
This is because it allows you to leverage the power of compounding over time.
But don't worry if you're not a fan of stock-picking. That's because exchange-traded funds (ETFs) are here to make life easier.
They allow you to buy large numbers of stocks in one fell swoop. This means you can diversify your portfolio almost instantly.
But which ASX ETFs could be great long term options? Let's take a look at three that could be buys:
BetaShares NASDAQ 100 ETF (ASX: NDQ)
When making long term investments, it is never a bad idea to buy the best companies you can get your hands on. The good news is that the BetaShares NASDAQ 100 ETF is home to many of the biggest and best companies that the world has to offer.
This hugely popular ASX ETF gives investors easy access to the 100 largest non-financial shares on the famous NASDAQ index. This is heavily, but not exclusively, focused on technology, with many household names among the ETF's holdings. This includes Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA).
Over the last 10 years, the index the fund tracks has generated a return of 22.7% per annum.
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
Another ASX ETF that could be a great buy and hold option is the VanEck Vectors Morningstar Wide Moat ETF.
Warren Buffett is a great investor to follow if you're interested in making long term investments. His focus on investing in companies with sustainable competitive advantages (moats) and fair valuations has allowed him to smash the market for many, many decades.
The VanEck Vectors Morningstar Wide Moat ETF allows you to invest in this style by putting together a group of shares that have the exact qualities that Buffett looks for when making investments.
And just like Buffett, this ETF has delivered great returns. The index the ETF tracks has achieved an average return of 16.7% per annum over the past 10 years.
Vanguard Australian Shares Index ETF (ASX: VAS)
Finally, if you want to invest locally, then the Vanguard Australian Shares Index ETF could be a great option.
This ETF allows you to buy a slice of the companies included in the ASX 300 index. These are Australia's leading 300 listed companies and include names from all sides of the market.
Among its holdings are companies as diverse as BHP Group Ltd (ASX: BHP), Lovisa Holdings Ltd (ASX: LOV), Macquarie Group Ltd (ASX: MQG), and Woodside Energy Group Ltd (ASX: WDS).
Over the last 10 years, it has achieved a return of approximately 8% per annum.
