The past five years have been nothing short of extraordinary for US technology investors.
From the depths of the COVID-19 market selloff in 2020 to the surge in artificial intelligence (AI) stocks today, the Nasdaq 100 has staged one of the most powerful rebounds in recent history.
And Australian investors haven't been left out.
Thanks to the Betashares Nasdaq 100 ETF (ASX: NDQ), it has been possible to gain exposure to many of the world's most innovative companies through a single trade on the ASX.
From COVID lows to AI highs
Back in 2020, markets tumbled as the world shut down. But the Nasdaq 100 index didn't stay down for long.
With businesses and consumers forced online, technology giants such as Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG), Meta Platforms (NASDAQ: META), and Netflix (NASDAQ: NFLX) powered ahead, cementing their dominance in the global economy.
Then came the AI revolution. Nvidia (NASDAQ: NVDA), once best known as a graphics chip maker for gamers, emerged as a leader in artificial intelligence hardware. Its meteoric rise over the past five years has been a key driver of the Nasdaq's gains and, by extension, the performance of the Betashares Nasdaq 100 ETF on the ASX.
The combination of these factors has turned what could have been a modest investment into something far more substantial.
$20,000 invested in the Betashares Nasdaq 100 ETF
Five years ago, you could have picked up units in the NDQ ETF for $25.66 each.
This means that with a $20,000 investment, you could have added 779 units to your portfolio.
Yesterday, the Betashares Nasdaq 100 ETF finished the session at $54.82. That's a gain of more than 110% in just five years.
It also means that those 779 NDQ ETF units would have a market value of approximately $42,700 today. Not bad!
Foolish takeaway
The NDQ ETF has given Australian investors access to some of the world's fastest-growing companies at a time when technology has reshaped economies and lifestyles. And with AI, cloud computing, and electric vehicles still in their early stages of global adoption, the Nasdaq 100's biggest players could continue to drive growth for years to come.
While it is worth remembering that past returns are no guarantee of future performance, the last five years show just how powerful it can be to align your portfolio with the world's most innovative businesses.
