Here’s why NDQ ETF is such a great ASX investment

Betashares Nasdaq 100 ETF (ASX: NDQ) could be one of the best exchange-traded funds (ETFs) to have in a portfolio for long-term growth.

Why is NDQ ETF such a good investment?

There are plenty of different quality ETFs that Aussies can buy like iShares S&P 500 ETF (ASX: IVV) and VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT) – they are good long term options. But, NDQ ETF gives some very good benefits as well:

Access to big US tech stocks

NDQ ETF is invested in 100 non-financial NASDAQ-listed businesses, with the big US tech stocks having the largest weightings.

As a group, they are among the most dominant and strong companies in the world.

At 26 March 2021, the position sizes of these huge companies were: Apple (11%), Microsoft (9.6%), Amazon (8.3%), Alphabet (6.9%) and Facebook (3.7%).

Other tech shares also get a noticeable weighting like Tesla, PayPal, Intel, Adobe and Netflix.

Returns

Ultimately, what we’re looking for is returns – and this ETF has certainly delivered. The last five years have been very fruitful for the large US tech shares with an average net return of 23.7% per year.

Past performance is certainly not guarantee of future performance, but I believe that the NDQ ETF can continue to produce solid returns considering it’s many of these businesses that continue to create new products and services for the world.

The fact that the Australian dollar is so strong right now means it’s cheaper to buy more of overseas shares.

There may be new strong businesses in the future that aren’t one of the current big US tech group, but there’s a good chance it would be listed on the NASDAQ.

Diversification

Many Aussies have a good amount allocated to ASX shares. But by doing that, you miss out on technology – because the ASX doesn’t have much tech in it – and international earnings.

Whilst all of the holdings are listed in the US, many of them actually have global earnings. Microsoft, Alphabet and Facebook operate in almost every country in the world.

I think NDQ ETF would be a good way to get earnings diversification and exposure to businesses outside of the ASX.

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here or enter your email address below to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

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From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just click the link below and enter your email address. We'll send you the report right away.

CLICK HERE TO GET THE REPORT

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At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

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The information on this website is general financial advice only. That means, the advice does not take into account your objectives, financial situation or needs. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. Please read our Terms & Conditions and Financial Services Guide before using this website.

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