3 reasons I'd buy and hold the NDQ ETF for 10 years

Instead of trying to pick the next tech winner, this ETF gives investors a diversified way to back a broad group of global leaders.

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If I were building a long-term portfolio today, I would want at least some exposure to global technology.

Not because it is the hottest theme right now, but because of how deeply technology is embedded in the way the world is changing.

That is where the BetaShares Nasdaq 100 ETF (ASX: NDQ) stands out to me.

Here are three reasons I think it could be worth holding for the next decade.

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Image source: Getty Images

Exposure to some of the world's most powerful businesses

One of the simplest reasons I like the NDQ ETF is what it gives you access to.

The ETF tracks the Nasdaq 100, which includes many of the largest and most influential companies in the world.

This includes the likes of Apple, NVIDIA, Microsoft, Tesla, and Alphabet.

These are businesses that dominate areas like cloud computing, software, semiconductors, and digital platforms.

I think that is important because these companies are not just participating in change. In many cases, they are driving it.

Over a 10-year period, I believe that kind of positioning can be very powerful.

Long-term structural growth

When I think about the next decade, a few themes keep coming up.

Artificial intelligence (AI), automation, digital infrastructure, and data growth all continue to expand.

The NDQ ETF sits right in the middle of those trends.

That does not mean the ride will be smooth. Technology stocks can be volatile, especially when interest rates are rising or sentiment shifts.

But over longer periods, I think the direction of travel has been fairly clear.

As more of the global economy becomes digital, companies that enable that shift are likely to keep growing.

A simple way to access global tech

Another reason I like the BetaShares Nasdaq 100 ETF is its simplicity.

Instead of trying to pick individual winners, the NDQ ETF gives you diversified exposure across a wide range of technology-focused businesses.

That reduces the risk of getting a single stock wrong.

At the same time, it still allows you to participate in the upside if the broader sector performs well.

For me, that balance is important. It is a way to gain exposure to a high-growth area without relying on one company to deliver all the returns.

Foolish takeaway

The NDQ ETF is not a low-risk investment. It can be volatile, and there will be periods where it underperforms other parts of the market.

But when I look out over the next 10 years, I think the combination of global technology exposure, structural growth, and diversification makes it a compelling option.

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Apple, BetaShares Nasdaq 100 ETF, Nvidia, and Tesla. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Apple, 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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