One of the best ways to grow your wealth is to make long term investments.
The longer you are invested, the more you can benefit from the power of compounding.
For example, $10,000 compounding a 10% per annum would become $11,000 after one year, but then almost $26,000 in 10 years.
The good news is that if you're not feeling too confident with stock picking, you could turn to exchange-traded funds (ETFs) instead. They allow you to buy groups of quality shares in one go, making life easy for investors.
But which ASX ETFs could be great long term options? Here are three to consider:
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BetaShares NASDAQ 100 ETF (ASX: NDQ)
The first ASX ETF that could be a great long term option is the BetaShares NASDAQ 100 ETF.
If you want to make a buy and hold investment, investing in quality is always a great idea. And this ETF is filled to the brim with quality.
It is home to 100 of the largest non-financial companies on the famous Nasdaq index. This includes companies such as AI chip manufacturer Nvidia (NASDAQ: NVDA) and iPhone maker Apple (NASDAQ: AAPL).
In light of the quality in the fund, this ETF looks well-positioned to continue beating the market over the next decade.
BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)
Another ASX ETF that could be a top buy and hold option is the BetaShares S&P/ASX Australian Technology ETF.
It is invested in the leading ASX companies from a range of tech-related market segments. This includes information technology, consumer electronics, ecommerce, and healthcare technology.
The team at Betashares recently tipped this fund as one to buy. It highlights that "with the nascent adoption of AI, cloud computing, big data, automation, and the internet of things, there's a good chance that the next decade's major winners will come from the tech sector."
Among its current holdings are health imaging technology company Pro Medicus Limited (ASX: PME) and cloud accounting platform provider Xero Ltd (ASX: XRO).
Betashares Global Quality Leaders ETF (ASX: QLTY)
Finally, another ASX ETF that is overloaded with quality is the Betashares Global Quality Leaders ETF.
For companies to be included in this fund, they need to have high returns on equity and profitability, low leverage, and earnings stability.
There are currently approximately 150 shares included in the future. They come from a range of geographies and sectors, many of which are under-represented in the Australian share market. Betashares' chief economist, David Bassanese, recently recommended the ETF as one for investors to buy.
