Well, it's another day and another new all-time record high for the BetaShares Nasdaq 100 ETF (ASX: NDQ).
Over 2024 to date, this exchange-traded fund (ETF) has been one of the ASX's best-performing index funds. NDQ units started the year at $37.37 each. But today, those same units have touched a new record of $51.64 each, a giant worth just over 38% at the time of writing.
This has naturally come with a bevy of new record highs for this ASX ETF over the year, of which today's is just the latest.
The stunning performance of the Betashares Nasdaq 100 ETF mirrors the performance of the NASDAQ-100 (NASDAQ: NDX) itself. The Nasdaq 100 Index has gained an equally impressive 33.5% over this year.
Longer-term investors have done even better. As of 29 November, NDQ's ASX units have returned an average of 21.19% per annum over the past five years (including dividend returns).
Check all of this out for yourself below:
The extra performance that the NDQ ETF has delivered probably comes down to currency fluctuations. Remember, this ETF's assets are priced in US dollars. As such, they become more valuable in Australian dollar terms if our currency declines in value against the US dollar, which has indeed occurred over 2024 so far.
So, how did this index fund get here?
Image source: Getty Images
How has the ASX NDQ delivered so many record highs in 2024?
Well, as an index fund, NDQ's performance on the ASX rises and falls on the performance of its underlying holdings, particularly the largest ones.
In this case, those would be the 'magnificent seven' tech titans that now dominate the American markets. Apple, Microsoft, NVIDIA, Amazon, Alphabet, Tesla, and Meta Platforms together account for 44.7% of the Betashares Nasdaq 100 ETF's entire portfolio. If we throw in software stock Broadcom, we get to 51.6%.
Over 2024, here's how these stocks have performed:
- Apple has gained 35.23%
- Microsoft has risen 21.77%
- Nvidia has rocketed 174.03%
- Amazon has shot up 55.36%
- Alphabet (Class A) has gained 42.33%
- Tesla has vaulted 86.39%
- Meta Platforms has surged 80.27%
- Broadcom has ballooned 130.33%
That's four out of eight of NDQ's largest stocks with a year-to-date gain of over 80%. Two are up more than 130%. And the smallest gain is a 'mere' 21.77%.
With these kinds of gains happening amongst NDQ's largest holdings, it's no wonder this ASX ETF has had such a stunning year.
Let's see how many additional new all-time highs the Betashares Nasdaq 100 ETF hits before the year is out.
