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2 ETFs I’d buy and hold forever

Exchange-traded funds (ETFs) are a great investment tool, allowing people with no investment experience at all to (almost) match the returns of the market/the benchmark.

ETFs come with a fee, which is usually very reasonable, and are paid from the fund balance – we don’t have to pay for it from our bank accounts.

It’s perfectly possible to just own ETFs as the only investment and do very well.

VanEck Morningstar International Wide Moat ETF (ASX: GOAT)

This ETF is very similar to the Vaneck Morningstar Wide Moat ETF (ASX: MOAT), though GOAT invests in a global portfolio not just a portfolio of US shares.

The concept is that it invests in businesses that have durable competitive advantages that are expected to last for at least two decades.

I’ve invested in this one because I like businesses that are expected to thrive for a long time. On 7 December 2023, its biggest investments were US Bancorp, Charles Schwab, Masco, Elekta, Anheuser-Busch Inbev and Nike.

Plus, it only invests in these businesses when they’re trading at a good value compared to what Morningstar thinks is undervalued. It currently has 58 holdings.

It doesn’t have much of a dividend yield, but I’d prefer capital growth from an ETF because there are no franking credits from foreign companies.

With this, I’m already buying it and planning to hold forever.

Betashares Global Quality Leaders ETF (ASX: QLTY)

This is another ETF that is invested in a global portfolio of around 150 names from different countries, though the US is the biggest allocation.

There are four key factors that companies are ranked on – return on equity (ROE), debt to capital, cash flow generation ability and earnings stability. When you put those elements altogether, you’re left with a strong business on paper which should do well, in theory. A whole group of them could do well, and is diversified.

Despite the much higher interest rates, the QLTY ETF has delivered an average return per annum of 14% over the past five years, which is a solid return.

Its biggest positions are currently UnitedHealthb, Microsoft, L’Oreal, ASML, Metal Platforms and Adobe.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

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Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz owns shares of VanEck Morningstar International Wide Moat ETF.
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