Everything you need to know about the NDQ ETF

If you've ever dreamed of investing in the world's biggest tech companies but didn't know where to start, there's a simple way to do it—without needing to pick individual stocks or open a U.S. brokerage account.

It is called the Betashares Nasdaq 100 ETF (ASX: NDQ).

Let's break down what it is, how it works, and why it could be a smart addition to your portfolio.

What is the NDQ ETF?

The NDQ ETF is an Australian exchange-traded fund (ETF) that gives you access to the Nasdaq-100 Index.

It is home to the 100 largest non-financial companies listed on the Nasdaq stock exchange in the U.S. That means when you buy this fund on the ASX, you're instantly investing in a portfolio that includes some of the world's most powerful companies.

What companies are you buying?

This ASX ETF is packed with household names and innovators that most of us use or hear about daily.

Companies like Nvidia (NASDAQ: NVDA), which is powering the AI revolution, and Apple (NASDAQ: AAPL), which is a global leader in consumer tech.

It also includes Microsoft (NASDAQ: MSFT), which is behind everything from Windows to cloud computing, and ecommerce and cloud giant Amazon (NASDAQ: AMZN).

In addition, you will find Costco (NASDAQ: COST) and Starbucks (NASDAQ: SBUX) among its holdings, which shows that it is not only about tech.

These companies have something in common: dominant market positions, global reach, and a history of strong performance.

Why do people invest in NDQ?

There are three big reasons the NDQ ETF is popular—especially for beginners.

One is simplicity and diversification. With just one investment, you get exposure to 100 top companies. That spreads your risk across different sectors and businesses.

Another reason is its strong historical returns. The NDQ ETF has delivered impressive long-term results. For example, over the past 10 years, it has returned more than 20% per year on average (before fees). Even with a more conservative future estimate of 10% per year, that's still a strong long-term growth profile.

A third reason is its easy access to top US stocks. You can buy the ETF through your regular Australian brokerage account, just like any other ASX share. This means there is no need for complicated foreign currency trades or U.S. tax forms.

Potential risks

Because the NDQ ETF is heavily weighted toward tech companies, its price can be more volatile than broad-market ETFs.

When tech stocks rise, this fund tends to rise more. When they fall, it can fall faster too. Though, that's not necessarily a bad thing if you're investing for the long term and can handle some ups and downs.

Foolish takeaway

If you're just getting started with investing and want exposure to some of the world's most innovative companies, the NDQ ETF is worth a look. It offers simplicity, diversification, and the potential for strong long-term returns. And because it trades on the ASX, it's accessible and easy to add to your portfolio.

Pair it with a more defensive fund or Australian-focused ETF, and you've got the beginnings of a well-balanced, globally diversified investment strategy.

The post Everything you need to know about the NDQ ETF appeared first on The Motley Fool Australia.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, BetaShares Nasdaq 100 ETF, Costco Wholesale, Microsoft, Nvidia, and Starbucks. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Amazon, Apple, Microsoft, Nvidia, and Starbucks. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2025