The S&P/ASX 200 Index (ASX: XJO) is performing strongly this Thursday. At the time of writing, the ASX 200 is up a healthy 0.74% at around 7,045 points. But that's nothing compared to the BetaShares Nasdaq 100 ETF (ASX: NDQ).
NDQ units have had a cracking day so far. This exchange-traded fund (ETF) has lifted an impressive 1.7% to $29.37 a unit at the time of writing.
NDQ is an ASX-listed index fund. It covers no ASX shares though, instead tracking the 100 largest companies on the US NASDAQ-100 (NASDAQ: NDX). The NASDAQ stock exchange is renowned as the major US exchange that holds most of the US's famous tech shares. Its largest holdings are the likes of Apple, Amazon.com, Microsoft, Tesla and Alphabet.
It also holds a bevvy of other household tech names, including PayPay, Netflix, Starbucks, Adobe and NVIDIA.
So why is the BetaShares NASDAQ 100 ETF having such a strong showing this Thursday?
What's boosting the BetaShares Nasdaq 100 ETF (NDQ)?
Well, we need not look any further than the performance of the NASDAQ-100 Index itself.
Last night on the US markets, the NASDAQ had an exceptionally strong showing. It gained a healthy 2.85%, rising from 13,008.16 points to 13,378.32 points.
This was supported by moves like Apple rising 2.62%, Microsoft appreciating 2.43% and Amazon and Tesla both gaining more than 3.5%. And with these companies among the NDQ's top holdings, the gains are flowing into the NDQ ETF today as well.
But why not as much as the NASDAQ's gains last night? Aren't NDQ and the NASDAQ-100 essentially the same thing?
Well, yes. But there are other factors at play too. The US NASDAQ-100 Index is obviously priced in US dollars. But NDQ is an ASX-listed ETF priced in Aussie dollars.
And the Aussie dollar has been on the rise over the past few days. This devalued what US companies are worth in Australian dollar terms, and might explain the more tempered movements of NDQ today compared to its underlying index.
But even so, it's certainly a strong and pleasing showing from this ETF.
Despite today's gains, the BetaShares Nasdaq 100 ETF has had a rough time in recent months. NDQ units remain down by almost 20% in 2022 thus far, and by just over 10% over the past 12 months. But they also remain up by more than 130% over the past five years.
The BetaShares Nasdaq 100 ETF charges a management fee of 0.48% per annum.
