The exchange-traded fund (ETF) Betashares Nasdaq 100 ETF (ASX: NDQ) experienced a surge in value during the month following Republican Donald Trump's election as President of the United States.
Between 6 November and 14 November, the US tech-heavy ETF rose by 7.35% to an all-time record high of $48.38 per unit. The NDQ ETF then retraced a bit to close out the month with a 5.47% gain.
The NDQ ETF ended the session on Friday at $47.61, down 0.084% for the day.
Image source: Getty Images
Why did the NDQ ETF lift this month?
The NDQ ETF gives Aussie investors easy exposure to the big US tech stocks on the NASDAQ exchange.
The Betashares Nasdaq 100 ETF seeks to mirror the performance of the NASDAQ-100 Index (NASDAQ: NDX) before expenses.
The NASDAQ 100 represents the 100 largest stocks listed on the exchange by market capitalisation.
Trump's election was a tailwind for the Betashares Nasdaq 100 ETF due to his business-friendly policies.
These include some deregulation plans for the US tech sector and cutting the US corporate tax rate from 21% to 15%.
Investors in NDQ ETF would have viewed Trump's election favourably as a result.
They also probably like that the founder of NASDAQ darling Tesla Inc (NASDAQ: TSLA), Elon Musk, appears to be Trump's new best friend.
Musk is set to co-run the new US Department of Government Efficiency.
It won't actually be a government department, as such, but rather an advisory body to the White House.
Musk will lead the department with US entrepreneur and former Republican presidential candidate, Vivek Ramaswamy. He dropped out of the race for the Republican nomination against Trump earlier this year.
Ramaswamy founded the pharmaceutical company Roivant Sciences in 2014. He stepped down as chair of the board to focus on his presidential run in 2023.
According to The Guardian, Trump said the Department of Government Efficiency would work with the Office of Management and Budget to "drive large scale structural reform, and create an entrepreneurial approach to government never seen before".
Trump also said Musk and Ramaswamy "will pave the way for my administration to dismantle government bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure federal agencies".
Tech stocks make up about 50% of the NDQ ETF's sector allocation. The ETF also has significant exposure to the communications, consumer discretionary, consumer staples, and health care sectors.
As we recently reported, the Betashares Nasdaq 100 ETF has risen by more than 30% in the year to date.
Check out the 12 NASDAQ stocks that have contributed the most to NDQ ETF's growth here.
