Brave ASX ETF investors who bought in the dip last month have already been rewarded.
Last week, a better than expected April US jobs report advanced US equity markets to the longest winning streak in two decades. The S&P 500 (INDEXSP: .INX) and Nasdaq Composite (NASDAQ: .IXIC) both surged 1% on Friday, representing the ninth consecutive day of gains.
Since their recent troughs, the indices have advanced 14% and 17% respectively.
In April, a record number of retail investors capitalised on market volatility to buy in the dip. The Australian Financial Review reported that digital platforms such as Nabtrade had experienced record trading volume. Among the most popular trades were US technology stocks and global exchange-traded funds (ETFs).
Let's look at how much $10,000 invested in two popular US-focused ASX ETFs at the low point is now worth.
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Vanguard US Total Market Shares Index AUD ETF (ASX: VTS)
Since its 22 April low, Vanguard US Total Market Shares Index AUD ETF has surged 9.3%.
While this run has underperformed both the S&P 500 and Nasdaq Composite due to currency, investors have been well rewarded. $10,000 invested at the low point is now worth $10,930.
For those not familiar with VTS ETF, it comprises 3,598 holdings. It provides broad exposure to the entire US economy. Its management fee is extremely low at 0.03% per annum. Its long-term track record is also outstanding, having increased 93.6% over the past 5 years.
Betashares Nasdaq 100 ETF (ASX: NDQ)
The recent recovery of the Betashares Nasdaq 100 ETF is even more impressive, having increased 11.2% since 22 April. Although similar to VTS, this recovery has trailed S&P 500 and Nasdaq Composite benchmarks, investors have been strongly rewarded. $10,000 invested at the low point is now worth $11,200.
As a reminder, for a management fee of 0.48%, NDQ tracks the performance of the 100 largest non-financial companies listed on the Nasdaq. Its five-year performance is even better than VTS's, having risen 98.7% over the past five years. This has largely been due to the strong five-year run from the Magnificent 7 stocks.
Foolish Takeaway
Investors who bought VTS ETF and NDQ ETF in the April dip are materially wealthier today. While it can be challenging to pick the bottom, it's always a good idea to buy quality ETFs on sale. Accordingly, those who bought anywhere close to the 22 April bottom are also in a much stronger financial position today.
