5 reasons to buy the Betashares Nasdaq 100 ETF

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Key points

  • The Betashares Nasdaq 100 ETF offers Australian investors an accessible way to gain exposure to leading technology giants and innovative sectors, which are highly influential in global markets.
  • By tracking the Nasdaq-100 Index, this ETF provides diversified exposure beyond technology to include sectors like biotechnology, e-commerce, and digital services, reducing investment risk while tapping into growth trends.
  • With a strong track record of performance and an automated rebalancing mechanism, the ETF is an attractive, low-maintenance option for those seeking long-term global growth without the need for constant market monitoring.

The Betashares Nasdaq 100 ETF (ASX: NDQ) has become one of the most popular international ETFs on the ASX.

This is for good reason.

This fund gives Australian investors incredibly easy access to the world's most innovative companies, many of which have reshaped entire industries and delivered outstanding long-term returns.

If you're looking for a simple, growth-focused investment to hold for many years, here are five reasons why this ASX ETF could deserve a spot in your portfolio.

Reason 1: Exposure to the world's technology leaders

The Betashares Nasdaq 100 ETF tracks the Nasdaq-100 Index, which includes many of the most influential companies on the planet. This means instant exposure to giants such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT) and Nvidia (NASDAQ: NVDA). These are the businesses driving advances in artificial intelligence, cloud computing, semiconductors and digital services.

These companies have enormous competitive advantages, global customer bases, and innovation pipelines that could continue powering growth for years to come.

Reason 2: A simple way to invest in the AI boom

Artificial intelligence is becoming one of the defining themes of the decade, and this ASX ETF gives you broad, diversified exposure to the companies leading the wave.

Nvidia's GPUs power most major AI models. Microsoft is integrating AI across its entire product ecosystem. And Alphabet (NASDAQ: GOOG), Meta Platforms (NASDAQ: META), and Amazon (NASDAQ: AMZN), are embedding AI into everything from advertising to cloud services.

Instead of trying to pick which AI stocks will win, this fund lets you own many of the global leaders in one trade.

Reason 3: Strong long-term performance

The Nasdaq-100 index has been one of the best-performing major indices over the past 10 years, driven by strong earnings growth and the increasing dominance of technology-driven companies.

This has seen the Betashares Nasdaq 100 ETF deliver an incredible average return of 20% per annum since 2015.

And while past performance is not guaranteed to continue, the index has historically outpaced broader US and global markets due to its focus on innovation-heavy sectors.

Reason 4: Diversification

Although the Betashares Nasdaq 100 ETF is often viewed as a tech ETF, it provides exposure across several fast-growing sectors. The fund includes companies in biotechnology, digital entertainment, cybersecurity, e-commerce, communication services, and cloud computing. This diversification helps spread risk while still capturing some of the most powerful structural growth trends in the global economy.

Reason 5: A set-and-forget investment

The Betashares Nasdaq 100 ETF is arguably ideal for investors who want global growth without constantly monitoring the market.

The index automatically updates to reflect the top 100 non-financial stocks listed on the Nasdaq, meaning the fund naturally adjusts as winners rise and weaker businesses fall away. This ensures the portfolio stays focused on the strongest companies in the index at all times.

Foolish takeaway

Whether you're chasing long-term growth, looking to ride the AI and technology megatrends, or simply want exposure to the world's most innovative companies, the Betashares Nasdaq 100 ETF offers a very efficient and compelling way to invest globally.

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, BetaShares Nasdaq 100 ETF, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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