3 reasons to buy and hold the NDQ ETF for 10 years

This fund could be a great long term pick for Aussie investors.

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Trying to predict which individual shares will lead the market over the next decade is difficult, even for experienced investors.

That is why many long-term investors prefer to back broad themes rather than specific outcomes.

One of the most persistent themes of the past 20 years has been the rise of large, innovative technology-led businesses, and there is a simple ASX-listed way to gain exposure to that trend.

Here are three reasons why the Betashares Nasdaq 100 ETF (ASX: NDQ) could make sense as a buy and hold investment for the next 10 years.

Exposure to the world's most influential companies

The NDQ ETF tracks the performance of the Nasdaq 100 Index, which is made up of 100 of the largest non-financial companies listed on the Nasdaq exchange.

This gives investors exposure to some of the most influential businesses in the global economy today. Major holdings include stocks such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and NVIDIA (NASDAQ: NVDA). They all play central roles in areas like mobile devices, software, cloud computing, and artificial intelligence.

Rather than relying on a single winner, the Betashares Nasdaq 100 ETF allows investors to own a diversified basket of global leaders that continue to invest heavily in innovation and growth.

Built-in exposure to long-term growth trends

Another reason the NDQ ETF could suit a 10-year holding period is its natural alignment with structural growth trends.

Many stocks in the index benefit from scalable business models, global reach, and recurring revenue. Examples include Amazon (NASDAQ: AMZN), which sits at the heart of online retail and cloud infrastructure, and Alphabet (NASDAQ: GOOGL), whose services are deeply embedded in digital advertising, search, and online ecosystems.

As technology adoption continues to expand across industries, these types of businesses are well placed to grow earnings faster than the broader economy over time.

Importantly, the Nasdaq 100 index evolves as markets change. Stocks that lose relevance are removed, while emerging leaders are added. This helps to ensure that the NDQ ETF remains relevant and focused on where growth is actually occurring.

Simplicity

The Betashares Nasdaq 100 ETF also offers simplicity. Rather than having to build a balanced portfolio from scratch, with a single ASX trade, investors gain exposure to a large group of world class companies.

This avoids excessive brokerage fees and time spent researching investments.

And while technology-led markets can be uncomfortable at times, with sharp pullbacks almost guaranteed along the way, a long time horizon allows those cycles to play out and gives compounding the opportunity to work through both rallies and corrections.

Foolish takeaway

For investors looking to gain exposure to innovation, global growth, and some of the world's most influential companies, the Betashares Nasdaq 100 ETF offers a straightforward solution.

Held for a decade, the NDQ ETF could prove to be a powerful way to participate in long-term technological and economic change, without needing to pick individual stocks along the way.

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, 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, 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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