Investors looking to diversify their portfolios with exposure to the largest companies listed on the US-based NASDAQ stock exchange may consider the Betashares Nasdaq 100 (NDQ) ETF. This ETF seeks to track the performance of the largest 100 stocks by market capitalization in the NASDAQ-100 Index. While the NASDAQ is known for its tech stocks, the NDQ ETF offers sector diversification by including stocks from other sectors as well [2b726e47].
One of the key features of the NDQ ETF is its sector diversification. Unlike traditional NASDAQ-focused funds that heavily concentrate on tech stocks, the NDQ ETF allocates only half of its assets to the tech sector. This allocation provides investors with exposure to a broader range of sectors, reducing the concentration risk associated with a single industry [2b726e47].
Another advantage of the NDQ ETF is its geographical diversification. While the majority of the revenue generated by the NASDAQ 100 companies comes from the US, the NDQ ETF offers exposure to companies with global operations. Only 50.3% of the revenue generated by the NASDAQ 100 companies is from the US, providing investors with international exposure and reducing their reliance on the US market [2b726e47].
Investing in the NDQ ETF represents an opportunity to invest in innovation and companies with a strong commitment to research and development. The NASDAQ 100 is known for its focus on innovative companies, and the NDQ ETF allows investors to participate in the growth potential of these companies [2b726e47].
The performance of the NDQ ETF has been impressive, with a 22% increase year-to-date and a 34% increase over the past 12 months. This strong performance reflects the growth and resilience of the companies included in the NASDAQ 100 Index [2b726e47].
Australian investors seeking exposure to the largest companies listed on the NASDAQ stock exchange, with sector diversification and geographical exposure, may find the Betashares Nasdaq 100 (NDQ) ETF to be a suitable investment option. However, as with any investment, it is important for investors to conduct thorough research and consider their own investment goals and risk tolerance before making any decisions [2b726e47].
