ASX growth shares can deliver great returns over time because of their ability to achieve compounding earnings.

As Albert Einstein once supposedly said:

Compound interest is the eighth wonder of the world. He who understands it, earns it…he who doesn't……pays it.

In the shortmterm, a high valuation can seem expensive. But over time, they can deliver significant earnings growth and more than justify the current valuation. Further earnings success can send share prices higher at a pleasing speed.

After a recent dip, I believe both of the below investments are compelling options.

Australian Ethical Investment Ltd (ASX: AEF)

The Australian Ethical share price has fallen 5% since 20 February 2025 and is down close to 10% since 12 December 2024, as the chart below shows.

While that's not a big decline, I think it's even more appealing considering the business has continued growing in the last few months.

This business provides investment products that aim to have a high level of 'ethics', such as avoiding investing in certain industries.

One of this business' big advantages is that it offers superannuation for members. This means that funds under management (FUM) are locked in for decades, and it regularly receives superannuation contributions, helping net inflows.

The latest quarterly update from the company showed its FUM rose from $12.95 billion at September 2024 to $13.26 billion at December 2024. This was helped by net inflows of $110 million for the quarter.

The growth of FUM can help net profit, and the ASX growth share recently highlighted how it's making choices to unlock efficiencies and improve costs. Australian Ethical managing director John McMurdo said:

We completed the successful transition of our custody services to State Street on 1 November 2024, and completed the transition of our Mercer superannuation administration services to GROW in late October 2024. Together, these transformational programs will deliver the strengthened business platform, improved efficiencies and unit cost savings that will underpin our continued growth, and further future profit and operating leverage improvement in the medium term.

Global X Fang+ ETF (ASX: FANG)

This fund has delivered big returns since it was created a few years ago, but it has dropped 7.7% from 18 February 2025. That's a sizeable decline for an exchange-traded fund (ETF), considering it represents a portfolio of businesses.

However, as far as ETFs go, this one has a very concentrated portfolio.

It has ten US-listed positions, all with a heavy technology focus, even if they're not specifically counted as being in the technology sector. That's why I'd like it as an ASX growth share (as it trades on the ASX).

Currently, the ten positions are: Crowdstrike, Meta Platforms, Netflix, Nvidia, Apple, Amazon, Alphabet, Broadcom, Microsoft, and ServiceNow.

ETF returns are decided by the returns of the underlying holdings. Since 18 February 2025, this fund has declined 7.8%. I think it's a good time to 'buy the dip' because these are some of the world's strongest businesses with great brands, excellent economics, and rock-solid balance sheets.

Of all the large businesses that we could own, these could be some of the best businesses to hold for the next decade with how involved they are in technological advances such as artificial intelligence, cloud computing, and so on. I think Aussies should have at least some exposure to these great businesses one way or another.