Why NDQ Betashares Nasdaq 100 ETF is an excellent ASX ETF Buy
๐๐๐$BETASHARES NASDAQ 100 ETF(NDQ.AU)$ is one of the best performing Australian ETFs trading on the ASX. NDQ is currently up 19% year todate and in 2023, it has risen 28%.
NDQ aims to track the performance of the Nasdaq 100 Index. The Nasdaq 100 comprises of 100 of the largest non financial companies listed on the Nasdaq market. You can say that NDQ is the Australian version of $Invesco QQQ(QQQ)$
Like its US counterpart, NDQ has a strong focus on technology avd offers a diversified exposure to a high growth sector that is under represented in the Australian share market.
When we look at the Top holdings within the NDQ, it includes the Magnificent 7 - $Microsoft(MSFT)$
Big Tech takes up 50% of its allocation, followed by Communication Services at 15.8%, Consumer Discretionary at 12.6%, Consumer Staples at 6.4%, Healthcare at 6.2%, Industrial at 4.7%, Materials at 1.5% and Utilities at 1.3%.
NDQ does not include any Financial stocks.
The Management Fee is 0.48%. Distribution is paid every 6 months. NDQ goes ex Distribution on July 1. The current Distribution yield is 1.9%.
The Magnificent 7 have driven the US markets to new highs especially in 2024. Microsoft, Apple, Nvidia, Amazon, Meta Platforms have reached new All time highs this year led by Nvidia which is up a whopping 156% year todate.
These companies have wide moats in their respective markets and they have continued to reinvest in their businesses driven by the AI revolution. The Magnificent 7 have strong Returns on Equity and rock solid balance sheets. So they are in a really strong position to grow exponentially in the future.
Take for example Apple. Its iPhones are used almost globally. Microsoft software is used by computers around the world. Google and Facebook are Internet powerhouses used by billions of people daily.
NDQ ETF has been one of the best performing ETFs over the last few years. Since it started in May 2015, NDQ has generated an average return of 19% per annum.
What I like about NDQ is its low entry point of AUD 44.49 at last Friday's closing. In contrast QQQ is USD 479.11 per share. So for small investors like me, NDQ is a great way to get into the US market.
I believe that NDQ ETF can outperform the ASX 200 Index because of its laser focus on global profit growth, excellent gross margins and great profits.
That is why I believe that NDQ is a great ETF to have in my portfolio.
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