Even if you don't own the BetaShares Nasdaq 100 ETF (ASX: NDQ) or any of the top stocks on the US markets, you'd probably be aware that they have collectively had a phenomenal run over the past few years.
The BetaShares Nasdaq 100 ETF is a popular index fund on the ASX for investors looking for some US exposure in their ASX share portfolios, particularly to the largest American tech stocks.
Most of the popular ASX exchange-traded funds (ETFs) that cover international shares offer at least some access to the 'magnificent seven' stocks of Apple, Microsoft, NVIDIA, Meta Platforms, Alphabet, Tesla and Amazon. If you buy the Vanguard MSCI Index International Shares ETF (ASX: VGS) or the iShares S&P 500 ETF (ASX: IVV), you'll get a healthy slice.
However, thanks to NDQ's natural bias towards tech, this index fund is the go-to choice for the magnificent seven bulls. Although the Betashares Nasdaq 100 ETF technically offers access to around 100 different stocks, as it currently stands, 43.7 cents out of every dollar invested in NDQ will go towards those seven tech titans.
This design might not appeal to fans of diversification, but it has turbocharged the extraordinary gains that ASX NDQ investors have enjoyed in recent years. So today, let's look at just how much this ETF has delivered to its investors by looking at how much a $5,000 investment five years ago would be worth today.
What kind of gains have ASX NDQ investors enjoyed since 2019?
In mid-November 2019, NDQ units were asking $20.74 each on the ASX. At that time, a $5,000 investment would have secured an investor 241 NDQ units, with a little change left over.
Today, those units are asking $46.98 at the time of writing, down 0.68%. That's a gain worth a healthy 126.5%, which would value our 241 NDQ units at $11,322.20.
So NDQ's ASX investors have seen their capital more than double since this time in 2019. Not too shabby.
But we haven't even accounted for the dividend returns that NDQ investors have also enjoyed.
Since November 2019, this ETF has paid out a dividend to investors every six months. The dividends that our investors would have enjoyed between November 2019 and November 2024 add up to $4.486 per unit.
This would have resulted in our investor receiving a total of $1,081.13 in dividend income over this period, pulling their overall position from $11,322.20 to $12,403.33. So the Betashares Nasdaq 100 ETF has turned $5,000 into $12,403.33 over just five years, an overall return worth 148.15%.
Let's see if this ASX ETF can continue to shoot the lights out. We'll check back in 2029.
