The BetaShares NASDAQ 100 ETF (ASX: NDQ) could be one to watch in July and in this short article, we’ll run through arguably the three most important factors to consider when you’re reviewing an ASX ETF.
What the BetaShares NDQ ETF actually does
The BetaShares NDQ ETF provides investors with exposure to the performance of the 100 largest non-financial companies listed on the NASDAQ stock market, weighted by market capitalisation.
NDQ meets our minimum FUM criteria
The BetaShares NDQ ETF had $1453.79 million of money invested when we last pulled the monthly numbers. Given NDQ’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw the line at $100 million for ETFs in the International shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
Don’t forget NDQ’s fees
BetaShares charges investors a yearly management fee of 0.48% for the NDQ ETF. This means that if you invested $2,000 in NDQ for a full year, you could expect to pay management fees of around $9.60.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% or around $10.00 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
What to do next
If you’re weighing up investing in the NDQ ETF, keep in mind that this is just a brief introduction. Indeed, before doing anything, take a look at our free BetaShares NDQ report. And while you’re at it, consider searching our complete list of ASX ETFs for similar ETFs in the International shares sector to compare your options.