ASX-listed ETFs with market-beating five-year returns

January 17, 2022 09:48 AM AEDT

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ASX-listed ETFs with market-beating five-year returns — Image source: Vintage Tone,Shutterstock

Highlights

ETFs provide access to different shares via a single investment.

They also charge lower fees compared to stocks..

MOAT and VGS are two popular ETFs that have delivered market-beating returns over the last five years.

Exchange traded funds (ETFs) are one of the most sought-after options among investors looking for global exposure at lower costs. ETFs provide them access to different shares via a single investment and earn good returns. They also charge lower fees compared to stocks.

These funds basically track an index, sector or some other asset and can be easily sold on a stock exchange just like a common stock.

On this note, we discuss two ASX-listed ETFs with over 15% returns in the past five years:

VanEck Vectors Morningstar Wide Moat ETF (ASX:MOAT)

VanEck Vectors Morningstar Wide Moat ETF seeks to invest in companies with sustainable competitive advantages and attractive valuations. Moat is a key factor that investors look for while making investments.

The fund includes nearly 50 leading companies, including Alphabet, Amazon, American Express, Boeing, Coca-Cola, McDonald’s, Microsoft, Philip Morris, Pfizer, and Salesforce.

The index that the fund tracks delivered a return of 18.7% per annum in the past five years. The fund’s one-year return stands at over 26%, while it gave a negative return of over 1% this year.

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Vanguard MSCI Index International Shares ETF (ASX:VGS)

The Vanguard MSCI Index International Shares ETF provides exposure to more than 1,500 of the largest listed companies across the world. Investors can get access to nearly 1500 leading companies such as Apple, Johnson & Johnson, Nestle, Procter & Gamble, and Visa.

The ETF also offers low-cost access to a broadly diversified range of stocks that allows them to participate in the long-term growth potential of international economies outside Australia.

The index that the fund tracks delivered a return of 15.2% per annum in the past five years. The fund’s one-year return stands at over 23%, while it gave a negative return of over 3% this year.