The NASDAQ-100 (INDEXNASDAQ: NDX) Index has become a very popular index to invest in over the past few years. Thanks to its tech-heavy composition, and stellar performance history, ASX investors love chasing the NASDAQ.
So it's no wonder the ASX's sole NASDAQ exchange-traded fund (ETF) – the BetaShares NASDAQ 100 ETF (ASX: NDQ) – is one of the most popular international index funds here in Australia.
This is a fund that counts the likes of Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), Amazon.com Inc (NASDAQ: AMZN), Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL), NVIDIA Corporation (NASDAQ: NVDA), and Tesla Inc (NASDAQ: TSLA) as its top holdings. What's not to like?
The NDQ ETF has already had an incredible year in 2023 to date. As it stands today, BetaShares NASDAQ 100 units are going for $34.51 each. That's a good 39% or so above the $24.15 this ETF started the year at.
Yep, ASX NASDAQ investors have already gotten a near-40% return on this ETF in just six months. Check it out below:
Now, the more wary investors out there might say that a gain of this magnitude, especially from an index fund, means that investors should probably pump the brakes, or even take some profits off the table.
After all, how often does an investment keep growing after a 39% rise in six months?
Well, as it turns out, there is plenty of evidence to show it can.
Image source: Getty Images
Why the NASDAQ (and the NDQ ETF) could have further to climb
Our Fool colleagues over in the US recently ran the numbers on the NASDAQ Index, and they turned out some interesting (and potentially lucrative) data. Here's what they found:
Since 1986, the Nasdaq-100 has only declined in consecutive years on one occasion: during the dot-com tech bust from 2000 to 2002. Every other time the index suffered an annual loss (1990, 2008, and 2018), it came roaring back the very next year.
But here's the kicker: Its average return in those bounce-back years was 52%! Therefore, since the index is only up 38% so far in 2023, there's room for further gains ahead.
As it turns out, last year was a brutal year for the NASDAQ 100, and thus for the BetaShares NASDAQ 100 ETF. 2022 saw NDQ units lose a nasty 30.67%.
So, unless we have a history-defying event this year (which is entirely possible of course), it should continue to be a great year to hold this ASX NASDAQ ETF.
