Why it might be time to put the NDQ ETF to your watchlist

If you’re on the hunt for exposure to the International shares sector, it could be worth adding the BetaShares NASDAQ 100 ETF (ASX: NDQ) to your ASX watchlist. Let’s take a closer look at this BetaShares ETF.

What is the NDQ ETF used for?

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 could be used by investors to get exposure to a broad basket of the USA’s largest public companies (excluding financials), with a sizeable weighting to the technology sector. These companies are likely to grow their profit over time and pay semi-regular dividends to their shareholders.

Keep an eye on FUM

The BetaShares NDQ ETF had $2447.16 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.

Fees and costs for investors

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.

Summary

These are just some of the considerations or factors you would need to look at when weighing up the NDQ ETF. Before doing anything, take a look at our BetaShares NDQ report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs.

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