We’re in a new financial year and this is a great time to look at ASX share opportunities that could perform strongly in the year ahead and beyond.
We’re going to look at two investments that have excellent return potential to compound wealth into a much larger number.
VanEck Morningstar Wide Moat ETF (ASX: MOAT)
This exchange-traded fund (ETF) gives investors the ability to invest in high-quality US businesses.
The fund targets businesses that Morningstar analysts believe have economic moats (competitive advantages) that can help the business make good profits for the next two decades.
In this era of rapid change, I think it’s compelling to be able to own businesses that could excel for many years to come.
The fund has performed solidly over the long-term, with an average return per year of 13.9% since inception in June 2015. In my view, periods of weaker performance, such as the last 12 months, are a good time to buy.
The second stage of the investment strategy is that the MOAT ETF only invests in these businesses when they’re priced attractively. I think that means it’s nearly always a good time to invest in this ETF because the portfolio is always good value.
Some of its largest positions right now include Masco, Charles Schwab, Airbnb, Kenvue and Broadcom.
Guzman Y Gomez Ltd (ASX: GYG)
This ASX share is a Mexican restaurant business with franchise and corporate outlets in Australia and franchise businesses in Singapore and Japan.
Guzman Y Gomez may seem like a relatively new business to the ASX, but it has already been going for many years. It started two decades ago and continues to grow strongly in Australia.
It is a hit with consumers, so all it needs to do is continue rolling out new restaurants in markets where it’s successful, in my view. The ASX share has a goal of reaching 1,000 restaurants over the next two decades.
Australia is the main growth driver of the business, so this is where I’ll focus my attention on the business. The FY26 third quarter revealed Australian network sales growth of around 20% to $320 million, with the company achieving comparable sales growth of 6.6%.
The business continues expanding at an exciting speed, with its Australian restaurant count reaching 242 (87 corporate and 155 franchise) locations at 31 March 2026. Its national network rose by approximately 15% year on year.
The ASX share’s Australia segment underlying EBITDA (EBITDA explained) is guided to be $85 million in FY26, representing 29% growth year on year.
I think Guzman Y Gomez has a very long growth runway and this will help drive its net profit for years to come.
