Why this ETF could be a fantastic option for ASX investors

The Betashares Nasdaq 100 ETF (ASX:NDQ) could be a fantastic option for ASX investors after a recent pullback in its share price…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're interested in boosting your portfolio with the addition of an exchange traded fund (ETF), then you might want to consider the one listed below.

Here's why it could be the one to buy right now:

A businessman holding a world globe in one hand, representing global investment.

Image source: Getty Images

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF share price has come under significant pressure in recent weeks due to concerns over rising bond yields.

While there is nothing to say that this volatility is over, with its units down 10% from their high, the risk/reward on offer here looks to have shifted very favourably.

Why buy Betashares Nasdaq 100 ETF units?

The Betashares Nasdaq 100 ETF aims to track the famous NASDAQ-100 Index. This index comprises 100 of the largest non-financial companies listed on the NASDAQ stock market.

Betashares notes that this includes many companies that are at the forefront of the new economy.

This means that through just a single trade, investors will have access to companies like Apple, Amazon, and Google.

Furthermore, with its strong focus on technology, Betashares notes that it provides diversified exposure to a high-growth potential sector that is under-represented in the Australian share market.

What other companies are included in the Betashares Nasdaq 100 ETF?

Another stock included in the Betashares Nasdaq 100 ETF is Nvidia. It is a graphics card company which has been growing at an extraordinarily strong rate over the last few years.

It is benefiting from a number of industry tailwinds such as online gaming, cryptocurrency mining, and cloud computing.

In addition to this, investors will be buying a piece of MercadoLibre. It is the Latin American version of a number of global tech giants.

It is best known for the MercadoLibre Marketplace. This automated ecommerce platform allows businesses and individuals to list merchandise and conduct sales and purchases online. It is often regarded as the region's answer to Amazon.

In addition to this, it has a PayPal-type business called MercadoPago and a Shopify-esque business called MercadoShops.

Combined, these businesses are underpinning stellar revenue and earnings growth, which has led to mouth-watering returns in recent years.

And with the company, and the majority of the Nasdaq 100, tipped to continue growing strongly throughout the 2020s, this ETF has the potential to be a market-beater over the long term.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ETFs

Man looking at an ETF diagram.
ETFs

3 excellent ETFs for ASX investors to buy for the long term

These ETFs offer exposure to cybersecurity, energy, and technology...

Read more »

A group of young ASX investors sitting around a laptop with an older lady standing behind them explaining how investing works.
ETFs

2 top ETFs for ASX growth investors to buy next week

Tigers and cybersecurity... these ETFs could be top options for growth investors this month.

Read more »

The letters ETF with a man pointing at it.
ETFs

3 ETFs for investors to buy and hold for a decade

Here are three quality ETFs that have generated strong returns in recent years.

Read more »

A couple sit on the deck of a yacht with a beautiful mountain and lake backdrop enjoying the fruits of their long-term ASX shares and dividend income.
Retirement

Buy this ASX ETF for big retirement income

Don't worry if you're not a fan of stock picking. This ETF is here to make life easy in retirement...

Read more »

ETF spelt out on cube blocks with rising arrows.
Dividend Investing

Guess which ASX ETF pays dividends every month?

ASX ETFs have gained in popularity among income investors seeking a simpler way to access dividends without having to research…

Read more »

The letters ETF sit in orange on top of a chart with a magnifying glass held over the top of it
Opinions

Does the Vanguard Australian Shares Index ETF (VAS) hold the ticket to building long-term wealth?

Should Aussies use this ETF as their number one choice for becoming rich?

Read more »

A group of young ASX investors sitting around a laptop with an older lady standing behind them explaining how investing works.
ETFs

2 excellent ETFs for ASX investors to buy now

These ETFs provide investors with access to thousands of high quality companies.

Read more »

A man and woman sit next to each other looking at each other and feeling excited and surprised after reading good news about their shares on a laptop.
ETFs

Top ASX ETFs to buy in March 2023

Keen to add some instant diversification to your portfolio this month?

Read more »