I'll never stop banging on about ASX ETFs.
At the time of writing, there are more than 380 funds to consider. That means investors can find everything from broad international funds, to niche thematic funds.
While some investors prefer to closely monitor the stock market daily, there are others that may prefer to stash a bit of excess cash in a proven fund and trust the historical data that suggests long term investing pays off.
If that sounds like you, here are three ASX ETFs you may want to consider that have brought proven returns over the long term.
iShares Global 100 ETF (ASX: IOO)
This fund is designed to measure the performance of 100 multi-national, blue chip companies of major importance in global equity markets.
It has a straightforward approach to track the largest companies in the world.
At the time of writing (unsurprisingly), its largest exposure is to the US market (80%).
However unlike some other similar funds, it also offers international exposure to some of the largest companies outside the US.
Its top 3 holdings by weight are:
- Nvidia (NASDAQ: NVDA): 13.33%
- Microsoft (NASDAQ: MSFT): 12.18%
- Apple (NASDAQ: AAPL): 9.53%
It has risen 115.52% over the last 5 years, at an annualised rate of 19.19%.
BetaShares Global Banks ETF – Currency Hedged (ASX: BNKS)
As the name suggests, this fund aims to track the performance of an index (before fees and expenses) that comprises the largest global banks.
It actively excludes Australian banks, which could make it ideal for investors who already have exposure to the big four.
It includes exposure to the largest banks across countries such as:
- United States (33.3% weighting)
- Canada (14.0%)
- Britain (9.7%)
- Japan (8.6%)
- Spain (6.1%)
The fund has a 5 year p.a. Return of 20.18%.
BetaShares Geared Australian Equity Fund (Hedge Fund) (ASX: GEAR)
This fund has a unique strategy, but has been a proven winner over the long term.
According to Betashares, it is 'internally geared', meaning all gearing obligations are met by the Fund. The Fund combines funds received from investors with borrowed funds and invests the proceeds in a broadly diversified share portfolio consisting of the largest 200 equity securities on the ASX by market capitalisation (as measured by the S&P/ASX 200 Index).
The Fund's gearing ratio (being the total amount borrowed expressed as a percentage of the total assets of the Fund) is managed between 50-65% on any given day.
GEAR gives you the opportunity to make magnified gains when the Australian sharemarket rises on a given day, and magnified losses when the Australian sharemarket falls.
This strategy has paid off, bringing 5 year p.a returns of 21.99% for a total increase of 110.90%. For context, the S&P/ASX 200 Index (ASX: XJO) has risen 50% in that same period.
The post Three "set and forget" ASX ETFs with proven track records appeared first on The Motley Fool Australia.
Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Microsoft, and Nvidia. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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