The BetaShares NASDAQ 100 ETF (ASX: NDQ) is one of my favourite exchange-traded funds (ETFs) on the ASX. Let's discuss three reasons why I think it could be worth buying before 2023.
Exposure to US tech
The US markets house some, nay most, of the world's top-quality tech shares. Technology has changed the world in a massive way over the past two decades. That's thanks to names like Apple, Microsoft, Tesla, Amazon and Netflix.
It's hard now to imagine a world without iPhones, Microsoft Office, Netflix binging or ordering whatever your heart desires on Amazon. Luckily, the BetaShares NASDAQ 100 ETF enables ASX investors to participate in the profits of the companies that provide these goods and services.
The NASDAQ-100 (NASDAQ: NDX) that this ETF tracks is renowned as the place that most of the US tech giants call home. You'll get the names listed above in the top of this ETF's portfolio. But also other dominant companies like Adobe, NVIDIA, Intel and Starbucks.
The BetaShares NASDAQ 100 ETF is cheap for what you get
At its core, the NASDAQ 100 ETF is an index fund. This ETF might not charge the lowest fees for an ETF on the ASX. But the annual charge of 0.48% per annum (or $4.80 per year for every $10,000 invested) is still very competitive on the ETF scene. Let alone against what a typical managed fund charges.
For getting 100 top-notch US shares in one easy, hands-off investment, I think that 0.48% per annum is quite reasonable. Especially considering that this fund, as of 30 November, has delivered an average return of 16.81% per annum over the past five years.
You're buying a dip
The BetaShares NASDAQ 100 ETF, as we've just deduced, has an impressive performance track record. Saying that, it has also had a very rough year in 2022. Year to date, this ETF has gone from $36.58 per unit to the $25.59 it closed at yesterday. That's a fall worth just over 30%:
Are you bullish on the future of US tech and the continuing dominance of companies like Apple, Tesla and Netflix? If so, then this might represent one heck of a buy-the-dip opportunity.
There's every chance that this ETF will have another tough year in 2023. But for a serious long-term investor, I think that the current pricing on this ETF is well worth a look before we end the year.
