The Betashares Nasdaq 100 ETF (ASX: NDQ) is one of the most popular exchange traded funds (ETFs) in Australia.
At the last count, there was over $7 billion invested across its ASX listed units. That would be enough to get it a spot in the ASX 200 index if it were a single stock.
But if you aren't invested in this juggernaut, then let's now look at five reasons why you might want to change that.
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Reason 1: Exposure to the world's top innovators
The Nasdaq 100 is home to companies leading the charge in artificial intelligence, cloud computing, e-commerce, and consumer technology. This includes giants like NVIDIA (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Broadcom (NASDAQ: AVGO).
Reason 2: A strong track record of returns
Over the past decade, the Betashares Nasdaq 100 ETF has delivered a ~20% per annum return on average. This is comfortably outpacing the returns of broader global indices and the Australian share market. While past performance doesn't guarantee future results, it highlights the ETF's ability to capture the growth of the tech-driven US economy over the long term.
Reason 3: 100 stocks in a single trade
For Australians, building direct exposure to US tech stocks can be challenging and expensive. The Betashares Nasdaq 100 ETF solves that by offering access to 100 leading US companies spanning multiple sectors with a single click of the button. This means investors can tap into the innovation-driven US market without trying to pick individual winners.
Reason 4: AI and cloud boom exposure
As mentioned above, many of the Betashares Nasdaq 100 ETF's largest holdings are at the forefront of artificial intelligence and cloud computing. Companies like NVIDIA, Microsoft, and Alphabet (NASDAQ: GOOGL) are investing heavily in technologies expected to drive trillions in economic value over the coming decade. For investors looking to ride these transformative themes, this ASX ETF offers exposure to the businesses most likely to benefit — without the need to speculate on early-stage startups.
Reason 5: Cost-effective access to global growth
With a management fee of 0.48% per annum, the Betashares Nasdaq 100 ETF offers cost-effective access to some of the most sought-after companies in the world. Its semi-annual distributions also provide some income, although the real attraction is its long-term growth potential.
Foolish takeaway
The Betashares Nasdaq 100 ETF is designed for investors who want exposure to the biggest names in global innovation, with the simplicity of a single ASX-listed fund.
For those looking to diversify internationally, tap into high-growth sectors, and potentially supercharge long-term portfolio returns, this ASX ETF could be one of the most compelling options on the ASX today.
