Why this ETF could be a fantastic option for ASX investors

The Betashares Nasdaq 100 ETF (ASX:NDQ) could be a fantastic option for ASX investors after a recent pullback in its share price…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're interested in boosting your portfolio with the addition of an exchange traded fund (ETF), then you might want to consider the one listed below.

Here's why it could be the one to buy right now:

A businessman holding a world globe in one hand, representing global investment.

Image source: Getty Images

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF share price has come under significant pressure in recent weeks due to concerns over rising bond yields.

While there is nothing to say that this volatility is over, with its units down 10% from their high, the risk/reward on offer here looks to have shifted very favourably.

Why buy Betashares Nasdaq 100 ETF units?

The Betashares Nasdaq 100 ETF aims to track the famous NASDAQ-100 Index. This index comprises 100 of the largest non-financial companies listed on the NASDAQ stock market.

Betashares notes that this includes many companies that are at the forefront of the new economy.

This means that through just a single trade, investors will have access to companies like Apple, Amazon, and Google.

Furthermore, with its strong focus on technology, Betashares notes that it provides diversified exposure to a high-growth potential sector that is under-represented in the Australian share market.

What other companies are included in the Betashares Nasdaq 100 ETF?

Another stock included in the Betashares Nasdaq 100 ETF is Nvidia. It is a graphics card company which has been growing at an extraordinarily strong rate over the last few years.

It is benefiting from a number of industry tailwinds such as online gaming, cryptocurrency mining, and cloud computing.

In addition to this, investors will be buying a piece of MercadoLibre. It is the Latin American version of a number of global tech giants.

It is best known for the MercadoLibre Marketplace. This automated ecommerce platform allows businesses and individuals to list merchandise and conduct sales and purchases online. It is often regarded as the region's answer to Amazon.

In addition to this, it has a PayPal-type business called MercadoPago and a Shopify-esque business called MercadoShops.

Combined, these businesses are underpinning stellar revenue and earnings growth, which has led to mouth-watering returns in recent years.

And with the company, and the majority of the Nasdaq 100, tipped to continue growing strongly throughout the 2020s, this ETF has the potential to be a market-beater over the long term.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ETFs

Middle age caucasian man smiling confident drinking coffee at home.
ETFs

The best ASX ETFs to buy for passive income

This could be the easiest way to build an income portfolio.

Read more »

Retired couple hugging and laughing.
ETFs

Want to fast-track retirement? These ASX ETFs could get you there

This mix gives investors exposure to entire markets in a single trade.

Read more »

Man in drenched jacket in heavy rain.
ETFs

All-weather ASX ETFs to buy if the market crashes 20%

A crash is not a catastrophe for a prepared investor — here are the ETFs worth watching if shares take…

Read more »

A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.
ETFs

3 ASX ETFs with market-beating potential over the next 10 years

These funds are highly rated for a reason.

Read more »

Man holding fifty Australian Dollar banknotes in his hands, symbolising dividends.
ETFs

How to generate monthly income using ASX ETFs

Want a regular pay check from the share market? Here's how you can do it.

Read more »

ETF on a cube with a green and red arrow on another cube.
ETFs

Is this ASX ETF the perfect companion to Vanguard's VAS?

This simple hack nullifies VAS' greatest weakness...

Read more »

Two people work with a digital map of the world, planning their logistics on a global scale.
ETFs

Global investing is easy on the ASX with these ETFs

Want to invest outside Australia? Here are three ways you could do it.

Read more »

A cute young girl wears a straw hat and has a backpack strapped on her back as she holds a globe in her hand with a cheeky smile on her face.
ETFs

Why I think Australian growth investors would love this Vanguard ETF

If you’re looking beyond the usual large-cap names, this Vanguard ETF offers access to a broad group of smaller companies…

Read more »