Buy and hold investing is a great way to grow your wealth. The good news is that you don't necessarily have to pick stocks to do this style of investing.
It is possible to buy large groups of stocks through exchange-traded funds (ETFs).
But which ETFs could be great long term options for investors? Here are three to consider:
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BetaShares Global Cybersecurity ETF (ASX: HACK)
The first ASX ETF that could be a great buy and hold option is the BetaShares Global Cybersecurity ETF.
When looking to invest with a long term perspective, it is always good to find pockets of the market that are likely to grow more than others. The cybersecurity industry certainly ticks this box.
This side of the tech sector has been tipped to grow materially in the future. For example, Betashares highlights that "an estimate of the total addressable market by McKinsey suggests that the cybersecurity market is $1.5-$2.0 trillion globally, and at best only 10% penetrated with a very long runway for growth."
This means that the companies held by the ETF, which are the leaders in the field such as Accenture and Palo Alto Networks, could be destined to deliver strong returns for investors over the next decade.
Betashares Australian Momentum ETF (ASX: MTUM)
Another option for investors to look at is the Betashares Australian Momentum ETF. It is a newly launched fund that Betashares is tipping as a buy.
The fund manager notes that the index the fund tracks has outperformed the S&P/ASX 200 index by 2.3% per annum since its inception in May 2011 and through to the end of June 2024. Importantly, this outperformance has been achieved over most time periods, proving that it's not a fluke.
The key to this success has been the Betashares Australian Momentum ETF's momentum strategy over Australian shares. This strategy is supported on economic theory and empirical data, which theorises that rising asset prices tend to continue rising, and falling prices tend to continue falling.
BetaShares NASDAQ 100 ETF (ASX: NDQ)
A final ASX ETF that could be a great buy and hold option is the BetaShares NASDAQ 100 ETF.
It is one of the most popular ETFs out there with almost $5 billion invested in it. That's more than the market capitalisation of Bank of Queensland Ltd (ASX: BOQ).
It is no wonder that this ETF is popular. It gives investors access to the 100 largest names on the famous Nasdaq index, excluding financial shares. These are many of the largest and highest quality companies in the world. This includes the likes of Apple, Microsoft, Tesla, and Nvidia.
If there were only one group of shares you could invest in for the long term, it would probably be these.
