Is the Betashares Nasdaq 100 ETF (ASX:NDQ) an opportunity in this market correction?

Is the NDQ ETF now an opportunity after its recent decline?

| More on:
A man activates an arrow shooting up into a cloud sign on his phone, indicating share price movement in ASX tech shares

Image source: Getty Images

Could the Betashares Nasdaq 100 ETF (ASX: NDQ) be a good opportunity during this correction for both the global share market and the ASX share market?

It has been a volatile time for plenty of shares, both the mega-caps and the smaller ones.

The Betashares Nasdaq 100 ETF has fallen by 14% since the start of 2022. That’s a pretty large, quick decline for an index that includes many of the biggest technology businesses.

Lower prices don’t always translate into better value for stocks.

But there are plenty of high-quality businesses in this exchange-traded fund’s (ETF’s) portfolio. This is one of the potential reasons to consider this investment.

High-quality businesses

Some of the world’s strongest businesses that have dominant market positions in their respective sector are on the NASDAQ, which is one of North America’s main stock exchanges.

Apple is a massive player when it comes to smartphones. Microsoft is a leader in the office software, cloud computing, and gaming space (particularly with its Activision Blizzard acquisition). Both of those businesses make up more than 10% of the NDQ ETF portfolio.

Then there’s internet search, video streaming, smartphone software and cloud computing business Alphabet. E-commerce and cloud computing giant Amazon is another key player in the ETF’s portfolio. Facebook/Meta is another significant position with its various social media leaders like Instagram.

There are plenty of other leaders in the portfolio such as Tesla, Nvidia, Adobe, Broadcom, Costco, Intel, PayPal, Qualcomm, Texas Instruments, Netflix, Intuitive Surgical, Moderna, ASML, Airbnb and Regeneron. There are a total of 100 positions.

As BetaShares points out, with this one trade on the ASX investors can get access to companies like Apple, Amazon and Google that have changed the way we live.

Management costs

Whilst not as cheap as some other ETFs, the Betashares Nasdaq 100 ETF has an annual management fee of 0.48%. This is cheaper than the typical management fee that would be charged by internationally-focused fund managers.


Whilst the NASDAQ is tech-heavy, it could be used by Aussies to increase the diversification of their portfolio, both in geographical terms and in industry terms.

The ASX is dominated by the financial industry and resources when it comes to the weightings of the main indices.

The NASDAQ can provide exposure to these giant tech companies, with many of them generating earnings from across the world.

Some investors like the look of the major tech companies

In a recent Bloomberg podcast, Morgan Stanley fund manager Andrew Slimmon said that investor sentiment could leave the growth names for a while. He doesn’t think the high-growth names are going to see a V-shaped recovery.

However, he said that the big tech names like Microsoft and Alphabet are not trading at extremely high earnings multiples and are some of the ones that could be opportunities.

Should you invest $1,000 in NDQ ETF right now?

Before you consider NDQ ETF, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and NDQ ETF wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia owns and 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 Share Market News

Smiling man with phone in wheelchair watching stocks and trends on computer
Share Market News

5 things to watch on the ASX 200 on Monday

Here's what to expect on the ASX 200 on Monday...

Read more »

Family of four celebrating inside a grocery store or supermarket
Share Market News

4 ASX shares of the most trusted brands in Australia

Which companies are best placed to attract the hearts, minds and wallets of consumers as interest rates rise?

Read more »

Coal-fired power station generic.
Energy Shares

How dependant on coal closure is the AGL share price?

Climate activists disagree with AGL's decision to hold onto coal, saying its depleting shareholder value.

Read more »

Top 10 - asx shares today
Share Market News

Here are the top 10 ASX shares today

Here are your top 10 biggest gainers in the ASX 200 on Friday.

Read more »

Three children wearing athletic short and singlets stand side by side on a running track wearing medals around their necks and standing with their hands on their hips.
Share Market News

Here are the 3 most heavily traded ASX 200 shares on Friday

We take a look at the most traded ASX 200 shares by volume today.

Read more »

A girl holding a globe shouts into a green megaphone about climate change.
Energy Shares

Why are Fortescue and green hydrogen making news again on Friday?

The company's green energy leg has earmarked a coal-fired power plant as a future hydrogen production facility.

Read more »

Man looking concerned head in hands at laptop

Could the next crypto collapse flow through to ASX shares?

The LUNA token, meant to keep UST pegged to the US dollar, just crashed more than 99%.

Read more »

Smiling man sits in front of a graph on computer while using his mobile phone.
Share Market News

ASX 200 midday update: Block and Xero rebound, gold miners fall

The ASX 200 has returned to form and is charging higher...

Read more »