2 Vanguard ETFs I’d buy and hold for a decade

A decade gives an exchange-traded fund (ETF) plenty of time to ride through market cycles and benefit from long-term economic growth.

If I were choosing two Vanguard ETFs with that timeframe in mind, these would be high on my list.

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

The VAE ETF gives investors exposure to Asian markets excluding Japan.

I like it because some of the world’s most important economies sit within this region, including China, India, Taiwan, and South Korea. The fund provides exposure to businesses across technology, financial services, manufacturing, consumer spending, and other industries.

Over the next decade, I think several long-term trends could work in its favour.

Rising household incomes can increase spending on financial products, travel, technology, healthcare, and consumer goods. Asia is also central to global semiconductor manufacturing and electronics supply chains, while India continues developing into a much larger part of the global economy.

I would expect plenty of bumps along the way. Political and regulatory changes can move Asian markets quickly, while currency movements add another source of volatility because the VAE ETF is unhedged.

But I think a 10-year timeframe gives investors a better chance to look beyond those shorter-term swings and focus on the region’s long-term development.

Vanguard S&P 500 US Shares Index ETF (ASX: V500)

My second choice would be the V500 ETF.

This relatively new Vanguard ETF tracks the S&P 500 Index, giving ASX investors exposure to around 500 of America’s largest listed companies across all major sectors.

I think the attraction here goes beyond simply owning US shares. Many of the companies inside the index sell products and services around the world.

This means investors gain exposure to global spending on areas such as technology, healthcare, consumer products, financial services, and industrial development through one investment.

I also like that the S&P 500 can evolve. A decade is long enough for today’s corporate leaders to strengthen their positions, lose ground, or be overtaken by businesses that are much smaller today. An index fund adjusts as the market changes rather than asking investors to identify every future winner themselves.

For someone who wants a simple core holding with substantial long-term growth potential, I think the V500 ETF makes a lot of sense.

Foolish takeaway

I would be happy to buy both Vanguard ETFs and leave them invested for the next decade.

The VAE ETF gives me access to the long-term development of Asia, while the V500 ETF provides a simple way to own many of America’s leading businesses.

I think both offer compelling opportunities for investors prepared to stay patient through the inevitable market swings.