Guess which ASX ETF has delivered an average annual return of 19% over the past 5 years

How has this ETF pulled off such a spectacular return?

| More on:
A group of business people pump the air and cheer.

Image source: Getty Images

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

It's not too often that you'll find any ASX investment, share or exchange-traded fund (ETF) that has returned an average of 19% per annum over a five-year period. Yet that's exactly what the lucky investors of one ASX ETF have enjoyed since 2018.

But you probably don't need to tell owners of the BetaShares NASDAQ 100 ETF (ASX: NDQ) that.

Yes, as of 31 July, NDQ investors have basked in an average annual performance of 19.52% per annum. Indeed, this US-based ASX ETF has given its investors an average rate of return of 19.06% per annum since its inception in May 2015.

For some context, a 19.52% return over five years is enough to turn a $10,000 investment into $26,331. If the BetaShares NASDAQ 100 ETF manages to keep this rate of return steady over the next five years (not guaranteed by any means, by the way), that $10,000 will be worth almost $70,000.

So how has this uber-successful ASX ETF pulled off this spectacular return?

How has this ASX ETF given investors an annual 19% return for five years?

Well, the BetaShares NASDAQ 100 ETF is an index fund that tracks the 100 largest shares on the US NASDAQ stock exchange. Over 'Stateside', there are two primary stock exchanges – the NASDAQ and the New York Stock Exchange (NYSE).

The NASDAQ tends to be known as the cooler, younger sibling of the NYSE and houses most of the most prominent US tech stocks.

A look at this ASX ETF's current top holdings pretty much explains this fund's epic run since 2018. Here are NDQ's top 10, as of 31 July, as well as their five-year share price performance:

NDQ Holding Current (as of 31 July) portfolio weighting (%) 5-year share price performance (at time of writing)
Apple Inc (NASDAQ: AAPL) 11% 227.15%
Microsoft Corp (NASDAQ: MSFT) 9.4% 200.18%
Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) 6% 113.34% (Class A stock) Inc (NASDAQ: AMZN) 5.6% 47.23%
NVIDIA Corporation (NASDAQ: NVDA) 4.1% 592.5%
Meta Platforms Inc (NASDAQ: META) 3.7% 75.91%
Tesla Inc (NASDAQ: TSLA) 3% 1,104.4%
Broadcom Inc (NASDAQ: AVGO) 2.9% 302.78%
PepsiCo Inc (NASDAQ: PEP) 2.1% 59.84%
Costco Wholesale Corporation (NASDAQ: COST) 2.1% 148.8%

As you can see, this ASX ETF is stacked with eye-watering winners. We have Apple's 227.15% gain, Nvidia's 92.5% rise, and Tesla's jaw-dropping 1,104.4% rocketship here.

So considering how much these American stock market giants have soared since 2018, it's not hard to see why this ASX ETF that holds these shares has done so well. No doubt, investors will be hoping the next five years will prove just as lucrative. But we'll have to wait and see what happens.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet,, Apple, Betashares Nasdaq 100 ETF - Currency Hedged, Costco Wholesale, Meta Platforms, Microsoft, PepsiCo, and Tesla. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet,, Apple, BetaShares Nasdaq 100 ETF, Costco Wholesale, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Broadcom. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet,, Apple, Betashares Nasdaq 100 ETF - Currency Hedged, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ETFs

Cubes placed on a Notebook with the letters "ETF" which stands for "Exchange traded funds".

Are these market-beating ASX ETFs top buys in December?

These ETFs have delivered sensational returns for investors.

Read more »

a woman raises her arm in celebration while looking at her mobile phone on her sofa at home feeling excited about the WiseTech share price rise

Own the Vanguard Australian Shares ETF (VAS)? Here's how it went in November

Own Vanguard's most popular ETF? You did well this month...

Read more »

ETF written on cubes sitting on piles of coins.

The rise of dividend ETFs in Australia: A new era of investment

Dividend ETFs can be great, but make sure you watch out for these key indicators.

Read more »

The letters ETF sit in orange on top of a chart with a magnifying glass held over the top of it

4 top ASX ETFs to buy in December

These ETFs could give your portfolio a boost next month.

Read more »

Five happy friends on their phones.

Buy these exciting ASX tech ETFs in December

These ETF give investors access to some high-quality tech stocks from across the globe.

Read more »

Woman with headphones on relaxing and looking at her phone happily.
Dividend Investing

How I'd aim to build a bulletproof monthly ASX passive income portfolio with just $10,000

If I were building a bulletproof passive income stream today, I wouldn’t invest in just a few high-yielding ASX stocks.

Read more »

Bonds spelt out on block cubes stacked on top of each other in front of a laptop.

Are fixed income ASX ETFs a good buy right now?

Why this could be a good time to look at bonds.

Read more »

Three miners looking at a tablet.

2 ASX mining ETFs to buy in December

Lithium and uranium exposure is a doddle with these ETFs.

Read more »