If 2025 shapes up anything like 2024, investors will see another year of strong performance from the Nasdaq Composite Index (NASDAQ: IXIC), which is mirrored by an ASX ETF (exchange-traded fund).
Fuelled by ongoing exuberance surrounding the growth potential of artificial intelligence (AI) and interest rate cuts from the United States Federal Reserve, most major US tech stocks have been on a tear this year.
This has seen the tech-heavy Nasdaq Composite Index soar 35.0% year to date.
The NASDAQ-100 (NASDAQ: NDX), which holds 100 of the largest tech stocks, has surged by 31.7%.
This stellar performance has helped the Betashares Nasdaq 100 ETF (ASX: NDQ) rocket by 36.1% so far in 2024.
And while the S&P/ASX 200 Index (ASX: XJO) is down 0.3% in afternoon trade today, shares in the ASX ETF are up 0.4% at $50.85.
That represents a new record high for the Betashares Nasdaq 100 ETF, which is now up 138.7% over five years.
About the Nasdaq tracking ASX ETF
One of the attractions of NDQ for investors seeking broad exposure to the Nasdaq's performance is that you can buy and sell shares on the ASX just as you would with any other stock.
The ASX ETF aims to track the performance of the Nasdaq 100, providing investors with exposure to some of the world's leading tech companies at the forefront of the new economy with a single ASX investment.
Annual management fees run at 0.48%.
The exchange-traded fund's major holdings read like a who's who list in the world of dominant tech companies.
NDQ's top four holdings in order are Apple Inc (NASDAQ: AAPL), Nvidia Corp (NASDAQ: NVDA), Microsoft Corp (NASDAQ: MSFT), and Amazon.com, Inc. (NASDAQ: AMZN).
Tesla Inc (NASDAQ: TSLA) comes in at number seven on this list, making up a 4.8% weighting for the ASX ETF.
Here's how these five US tech behemoths have performed over 2024:
- Apple shares are up 33.7%
- Nvidia shares are up 178.7%
- Microsoft shares are up 20.6%
- Amazon shares are up 51.7%
- Tesla shares are up 75.6%
Tesla shares were actually down 2.2% year to date heading into the November US presidential election.
But with Elon Musk a huge supporter of returning President Donald Trump, the Tesla share price has rocketed an eye-watering 79.6% since the 4 November close.
Of course, no one knows with certainty what we can expect in 2025.
What we do know is that this ASX ETF offers Aussie investors a one-stop shop to gain exposure to how the leading tech companies on the Nasdaq 100 perform in the year ahead.
