The ASX growth share space is a great place to hunt for opportunities that could beat the market.
Compounding is a powerful economic force. As the genius Albert Einstein once said:
Compound interest is the most powerful force in the universe. Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't pays it.
The faster an investment is compounding profit, the quicker it may grow its underlying value. After the recent volatility of the share market (due to the growing tariff trade war), I think the below ASX growth shares look like compelling ideas.
Betashares Nasdaq 100 ETF (ASX: NDQ)
This is an exchange-traded fund (ETF) – while it doesn't own ASX shares, it is listed on the ASX, which is why I'm calling it an ASX growth share.
It aims to give investors exposure to 100 of the largest businesses on the NASDAQ, which is one of the stock exchanges in North America. The NASDAQ is where we can find many of the big US tech companies.
For Aussie investors who are heavily concentrated on ASX shares, this is a good way to diversify into some of the world's strongest businesses, which have incredible brand power, market positions, society-changing products and services, and excellent balance sheets.
I'm referring to businesses like Apple, Nvidia, Microsoft, Amazon.com, Alphabet, Broadcom, Meta Platforms, and Netflix.
They have achieved excellent profit growth and shareholder returns over the past decade. Past performance is not a guarantee of future performance, but winners have a habit of continuing to win, in my view.
In the three years to February 2025, the NDQ ETF returned an average of 19.9%. Following the more than 10% decline of the ASX growth share since 18 February 2025, I think this is a good time to buy the dip.
Tuas Ltd (ASX: TUA)
Tuas is an Asian telco listed on the ASX. It used to be part of TPG Telecom Ltd (ASX: TPG) before it was demerged.
The business is growing revenue at an impressive pace and delivering operating leverage. In the FY25 first quarter, it revealed that revenue had grown 33% year over year to $35.5 million, thanks to its market share of Singapore mobile subscribers rising to 10.8%. At the end of October 2024, it had reached 1.1 million subscribers, representing a 26.6% rise year over year.
For me, one of the most promising signs that a business can achieve strong profits in the future is when its profit margins are increasing, leading to profit growing faster than revenue. The FY25 first quarter saw operating profit (EBITDA) surge 46%.
One of the main reasons I'm still excited about Tuas's future is its potential to grow in other Asian countries, such as Malaysia, Indonesia, and other Southeast Asian nations. This would open up a significant growth avenue and help increase the total addressable market the business can expand into. I think this ASX growth share can become a much bigger business in five years.
