When it comes to long-term investing, few strategies have been as rewarding as owning shares in the world's most innovative companies.
For Australians, one of the simplest ways to do that is through the Betashares Nasdaq 100 ETF (ASX: NDQ).
This ASX ETF provides access to the 100 largest non-financial companies that are listed on the Nasdaq Stock Exchange, many of which have become household names across the globe.
And with its track record of strong returns and exposure to powerful long-term growth themes, let's see why the Betashares Nasdaq 100 ETF could be a perfect buy and hold investment for Aussie investors.
A history of strong returns
Over the past decade, the Betashares Nasdaq 100 ETF has delivered an impressive average return of 19.56% per annum.
That kind of performance shows the strength of the stocks within the fund, as well as the growth potential of the technology-heavy Nasdaq 100 index.
A $10,000 investment 10 years ago would now be worth around $60,000, demonstrating the power of compounding returns when paired with consistent growth.
Betashares Nasdaq 100 ETF holdings
The Betashares Nasdaq 100 ETF is heavily weighted towards the technology sector, which means investors get exposure to transformative themes such as artificial intelligence, cloud computing, and digital commerce.
Its largest positions include giants like Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA), all of which are investing billions into areas like AI and next-generation computing.
But the ASX ETF also goes beyond the usual suspects. Holdings such as Costco (NASDAQ: COST) and PepsiCo (NASDAQ: PEP) provide stability through resilient consumer demand, while Adobe (NASDAQ: ADBE) and Intuit (NASDAQ: INTU) capture the growth of digital services used by millions of businesses worldwide. Even hospitality leader Marriott International (NASDAQ: MAR) and coffee giant Starbucks (NASDAQ: SBUX) have a place, reflecting the breadth of the Nasdaq 100.
This mix of cutting-edge tech leaders and resilient consumer businesses gives the Betashares Nasdaq 100 ETF is both explosive growth potential and a measure of diversification.
Compounding
The real magic of buy and hold investing lies in the power of compounding. By holding and reinvesting over the long term, investors allow returns to build on themselves year after year. Even modest contributions grow into substantial wealth when given time.
Warren Buffett has often noted that compounding is one of the most powerful forces in investing, and the Betashares Nasdaq 100 ETF demonstrates it well. Its high-growth holdings generate profits that are reinvested into new innovations, creating a flywheel effect that can sustain strong performance over decades.
Foolish takeaway
The Betashares Nasdaq 100 ETF offers Australian investors an easy way to own a basket of some of the world's best businesses — companies that are driving technological change, consumer trends, and global innovation.
With a strong historical track record, a portfolio of industry leaders, and the power of compounding behind it, it could be a near-perfect buy and hold investment for patient investors looking to grow wealth over the long term.
