ASX investors are buying up the Betashares Nasdaq 100 ETF. Should you?

The Betashares Nasdaq 100 ETF (ASX: NDQ) has been very popular with investors recently.

For example, according to CommSec data, the tech-focused exchange-traded fund (ETF) came third on the list of most traded ASX shares on its platform last week.

Furthermore, the vast majority of these trades were buys. The data shows that a whopping 78% of trades were buy orders from retail investors, with just 22% sell trades.

The good news for those buyers is that the Betashares Nasdaq 100 ETF has been in fine form this week, rising 4.5% over the period. Great timing from them!

As you can see below, after having its best January in 20 years, the ETF has now gained an impressive 10.5% since the start of the year.

Should I buy the Betashares Nasdaq 100 ETF?

If you take another look at the chart above, you’ll see that although the ETF is up strongly this year, it is still trading meaningfully lower than its highs.

I believe that this indicates that it isn’t too late for investors to put money into the ETF today. Especially with inflation starting to ease, interest rate hikes coming to the end of their cycle, and the quality on offer in the ETF.

When you buy the Betashares Nasdaq 100 ETF, you are buying a slice of the 100 largest non-financial companies on the famous NASDAQ-100 Index (NASDAQ: NDX). This includes the likes of Alphabet, Apple, Amazon, Meta, Microsoft, Netflix, and Tesla.

I feel that these are arguably some of the highest quality companies on the planet and have very bright long term growth prospects. And while it may take time for their shares to reach previous highs, I have little doubt they will eventually be scaling new heights and dragging the Betashares Nasdaq 100 ETF along for the ride.

All in all, I would be buying this ETF today if I were not already a unitholder.

The post ASX investors are buying up the Betashares Nasdaq 100 ETF. Should you? appeared first on The Motley Fool Australia.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, 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 Alphabet, Amazon.com, Apple, BetaShares Nasdaq 100 ETF, Meta Platforms, Microsoft, Netflix, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon.com, Apple, Meta Platforms, and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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