NDQ is a fine ETF to be sure, and one that I used to own myself. It has delivered some shockingly high growth numbers in recent years to boot. So today, let's discuss two reasons why you might want to buy the Betashares Nasdaq 100 ETF, and one reason not to.

2 reasons to buy the ASX's NDQ ETF

An investment in some of the world's best stocks

The Betashares Nasdaq 100 ETF simply represents an investment in some of the world's best companies. It is technically an index fund, holding the largest non-financial shares on the American NASDAQ stock exchange. The Nasdaq is the exchange that is famous for housing most of the top tech stocks in the US.

It counts Apple, Microsoft, NVIDIA, Alphabet, Meta Platforms, Tesla and Amazon – the Magnificent 7 – as its largest holdings for one. But it also houses plenty of other high-performing stocks, ranging from Netflix, Texas Instruments and Broadcom to Costco, Shopify and Booking Holdings.

It's a cross-section of the best tech companies the US has to offer. Given that the ASX is relatively light when it comes to tech, this can be particularly useful, not to mention lucrative, for Australian investors.

NDQ's ASX performance

As we touched on earlier, the ASX's NDQ fund has been an exceptional investment to have owned in recent years. As of 31 October, this fund has returned an average of 30.6% per annum over three years, and 20.4% per annum over the past five.

Since its May 2015  inception, NDQ unitholders have enjoyed an average return of 20.6% per annum.

Those are extraordinary numbers. Whilst past performance is never a guarantee of future results, no one can argue that NDQ's holdings haven't proven exceptionally gifted at rewarding shareholders up to this point.

So why not buy this ETF?

At first, and second glance, this ETF looks like a screaming buy for any ASX investor who doesn't have exposure to US tech stocks. Or just those who like ot invest in fast-growing stocks.

However, there is one reason why I think some ASX investors might want to look for alternatives. It's the price. NDQ is a high-quality ETF. But it charges a commensurate price. Investors pay a not-insignificant 0.48% per annum to have their money tied up in this fund.

Now, if you want this Nasdaq-specific exposure on the ASX, NDQ is basically your only choice. But it is not if you jump over to the US markets themselves.

These days, most ASX brokers offer cheap access to buying US stocks.

If you are willing to do that, you can get easy exposure to the Nasdaq for a vastly lower price compared to the ASX's NDQ. A popular choice is the Invesco QQQ Trust (NASDAQ: QQQ), which charges less than half of what NDQ does at just 0.2% per annum.

I myself go with the Schwab US Large-Cap Growth ETF (NYSE: SCHG). Although this ETF is not a Nasdaq-tracking index fund, it is very similar in its tech exposure, and shares all of NDQ's top holdings. I chose it for the minuscule management fee of 0.04% per annum.

Now, it's understandable that many ASX investors might want to keep things as simple as possible and stick with the ASX's NDQ ETF for their US tech exposure. And, judging by what the past ten years have delivered, that's probably not a bad way to go.

The post 2 reasons to buy the BetaShares Nasdaq 100 ETF (NDQ), and 1 not to appeared first on The Motley Fool Australia.

So it's no wonder that many investors are making AI stocks a centrepiece of their investing portfolios. I am one of those investors. But not purposefully.

As it happens, some of my largest portfolio holdings, ones that I have held for many years, have morphed into some of the leaders in AI technology and infrastructure.

Without realising it, I've become an 'AI investor'.

That suits me just fine. I don't claim to be even close to an expert in AI technology, and by extension, its implications for investing. But what I do know is that it will shape the future of our economy and the successes of the world's best businesses. As such, it is a trend that I want to be invested in.

Apple Inc (NASDAQ: AAPL), Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL), Amazon.com Inc (NASDAQ: AMZN), and Microsoft Corporation (NASDAQ: MSFT) are the portfolio holdings that give me the best exposure to AI.

As mentioned above, I have owned these stocks for a long time. When I bought each of them, I did not anticipate their emerging status as AI leaders. It was Apple's sticky product ecosystem, Google's dominance of search, Amazon's ever-expanding presence in Australia (not to mention its AWS division), and Microsoft's Office and Xbox brands that initially attracted me to each of these companies' shares.

How I'm betting big on AI with my ASX share portfolio

I have held on, and occasionally added to, each of these positions ever since my first purchases. Over this period, it's been a delight to watch each of these companies push the frontier of AI technology.

Microsoft, through its early backing of ChatGPT owner OpenAI and its own emerging Copilot platform, is now an influential AI player. Ditto with Alphabet's Gemini. Apple's own AI products have been a little more concerning, but when Apple Intelligence eventually comes into its own, I think it has a lot of potential as well. And Amazon's AWS will almost certainly continue to play a huge role in providing the AI infrastructure that the technology will increasingly rely upon.

In addition to these AI players, one of my portfolio's largest positions is in the Schwab US Large-Cap Growth ETF (NYSEMKT: SCHG). This exchange-traded fund (ETF) focuses on holding America's most exciting technology companies, many of which are also investing heavily in AI.

So, even without an explicit focus on AI stocks, my portfolio has naturally evolved into a bet on an AI future. That's just fine with me, and I'm excited to see what comes of it.

The post I'm investing in an AI future, here's how appeared first on The Motley Fool Australia.

The ASX is a fantastic place to invest in. But the US markets just offer some things that the ASX doesn't. As such, I like to proverbially pick apples from both trees when building my portfolio.

So today, let's discuss two of the US ETFs that I currently own, and why.

2 US ETFs that I buy for my ASX stock portfolio

iShares Core Dividend Growth ETF (NYSE: DGRO)

First up, we have this dividend growth ETF from familiar ASX fund provider iShares. Unlike the ASX, the US isn't exactly known for its heavy-hitting dividend stocks. However, US stocks tend to have far more impressive dividend growth streaks than ASX companies, though, with the 'States hosting a number of companies with 50-year-plus track records of annual dividend pay rises.

This ETF holds some of those stocks, such as Johnson & Johnson, Coca-Cola, and Procter & Gamble. But it also holds a number of dividend 'up-and-comers', including Apple, Visa, and Microsoft.

Most of DGRO's holdings have been steadily raising their dividends for many years. As such, the US ETF's annual dividends (which are paid quarterly) are also steadily rising.

I regard this ETF as a portal into some of the US' best dividend stocks. Together with the Schwab US Dividend Equity ETF (NYSE: SCHD), I intend to hold DGRO for many, many years, and (hopefully) enjoy the constantly rising dividend payouts along the way.

Schwab US Large-Cap Growth ETF (NYSE: SCHG)

As most ASX investors would know, the United States is home to the best tech stocks on the planet. No other market can rival the likes of Apple, Microsoft, Amazon, Netflix, Alphabet, NVIDIA and their peers in terms of scope, scale and global dominance of their respective markets.

I used to own the BetaShares Nasdaq 100 ETF (ASX: NDQ) for broad exposure to large-cap US growth stocks like the ones listed above. However, I swapped out this ASX ETF for a US ETF a few months ago. That US ETF is the Schwab US Large-Cap Growth ETF.

This fund gives me a similar level of exposure to the largest and most successful growth companies in the United States. But instead of charging me 0.48% per annum for the privilege, SCHG only asks 0.04% per annum, more than ten times cheaper. That fee difference can make a big impact on one's overall returns over a long period of time.

SCHG's portfolio contains all of the stocks listed above, as well as Mastercard, Costco, Palantir Technologies and Booking Holdings. It adds some pleasing diversification to my portfolio, as well as high potential returns going forward. I was happy to make the swap.

The post Here's why I own these 2 US ETFs in my portfolio appeared first on The Motley Fool Australia.