The Betashares Nasdaq 100 ETF (ASX: NDQ) is one of the most popular ASX ETFs out there.
But would it be a good option for investors seeking exposure to the world's leading technology and growth companies? Let's find out.
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A growth-focused ETF for the long term
The Betashares Nasdaq 100 ETF is designed for investors chasing capital growth. It tracks the performance of the Nasdaq 100 Index, which includes 100 of the largest non-financial companies listed on the Nasdaq Exchange in the United States.
This means the NDQ ETF gives Australian investors instant exposure to the US tech giants that are driving global innovation — including in areas such as artificial intelligence, cloud computing, e-commerce, social media, and streaming.
This has been a great place to be over the past decade. During this time, the Nasdaq 100 has delivered double-digit annualised returns, underpinned by the growth of US technology leaders.
If it were to do this again and generate 10% per annum returns over the next five years, a $10,000 investment would grow into approximately $16,100.
What's inside the NDQ ETF?
The ETF's holdings are a who's who of global technology and growth.
Here are the top ten holdings and their portfolio weightings:
- NVIDIA Corp (NASDAQ: NVDA) – 10.1%
- Microsoft Corp (NASDAQ: MSFT) – 9.1%
- Apple Inc (NASDAQ: AAPL) – 7.0%
- Broadcom Inc (NASDAQ: AVGO) – 5.3%
- com Inc (NASDAQ: AMZN) – 5.3%
- Meta Platforms Inc (NASDAQ: META) – 3.9%
- Netflix Inc (NASDAQ: NFLX) – 2.8%
- Alphabet Inc (NASDAQ: GOOGL) – 2.6%
- Tesla Inc (NASDAQ: TSLA) – 2.6%
- Alphabet Inc (NASDAQ: GOOG) – 2.5%
As you can see above, this ASX ETF is heavily tilted towards technology. In fact, information technology makes up 52.9% of the fund. There is also meaningful exposure to communication services (15.4%) and consumer discretionary (13.4%).
Is the Nasdaq ETF a good pick for investors?
Given the quality on offer in this fund, it is hard to argue against the Betashares Nasdaq 100 ETF being one of the best ASX ETFs to buy and hold onto for the next decade and beyond.
And while it may be trading close to a record high, I wouldn't be surprised to see many more records being broken between now and 2035.
Foolish takeaway
For Australian investors who want long-term growth and exposure to world-class technology leaders, the Betashares Nasdaq 100 ETF is a simple and effective option.
A patient, buy-and-hold investor could benefit from the continued global dominance of US tech — and with compounding on your side, the results can be powerful over time.
