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3 Long-term ETFs to make you rich

Tristan Harrison
Exchange Traded Fund (ETF)

Diverse exchange-traded funds (ETFs) are a great way to invest simply into shares and make you wealthy over time.

However, Vanguard MSCI Index International Shares ETF (ASX: VGS) may not quite offer the level of growth you’re looking for.

There are some ETFs that you can get access to on the ASX where the underlying holdings’ earnings growth is faster and therefore might deliver better total returns over the long-term.

Here are three ETFs that could make you rich:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

If you want exposure to growth shares like the FAANG shares, why not go for the ETF that offers a very high level of exposure to them?

Amazon, Apple, Alphabet (Google), Facebook and Microsoft make up a large part of this ETF and may continue to be the best global shares to have exposure to because of their growth plans and new service ideas like Waymo and virtual reality.

Unless they are broken up, I believe the FAANG shares will outperform the broader S&P 500 over the next decade.

Vanguard FTSE Asia Ex Japan Shares Index ETF (ASX: VAE)

Asia is another area that is demonstrating impressive earnings growth each year. The Chinese and Indian middle class is growing in number and wealth every year and this is feeding through into the economy.

The Asian eCommerce giants have great long-term potential, as do businesses like telecoms, insurance, healthcare and travel.

This ETF gives investors exposure to around 850 Asian-based shares and the underlying earnings growth of the entire index is comfortably in the double digits right now.

Betashares Global Cybersecurity ETF (ASX: HACK)

There has been a string of high-profile cyber attacks in recent years including during the 2016 US election, a recent attack on Australia’s political parties and earlier this year there was an attack of Kathmandu Holdings Ltd (ASX: KMD).

The importance of keeping customer data safe is extremely important, as Facebook has proven with its own scandal.

This ETF gives investors exposure to some of the biggest cybersecurity businesses in the world. Seeing as cybersecurity is only going to become more important as time goes on, these companies appear to have a long growth tailwind.

Foolish takeaway

I believe each of these ETFs can outperform the ASX index or the MSCI index over the next decade. At the current prices I would really like to buy more of the Vanguard Asia ETF for my portfolio.

The main negative to each of these ETFs is that they don’t have a high dividend yield, which is why they could work well with these leading ASX shares in a balanced portfolio.

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Motley Fool contributor Tristan Harrison owns shares of VANGUARD FTSE ASIA EX JAPAN SHARES INDEX ETF. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of BETA CYBER ETF UNITS. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019