5 reasons I’d buy the NDQ ETF with $10,000

The Betashares Nasdaq 100 ETF (ASX: NDQ) has been one of the most popular growth-focused exchange-traded funds (ETFs) on the ASX.

I can understand why, and if I had $10,000 to invest today, I think the NDQ ETF would be high on my list. Here are five reasons why.

1. It gives exposure to world-class companies

The Nasdaq 100 is home to many of the companies shaping the modern economy.

That includes businesses involved in artificial intelligence (AI), cloud computing, digital advertising, software, semiconductors, ecommerce, cybersecurity, and consumer technology.

For an Australian investor, that is useful.

The ASX has plenty of banks, miners, retailers, and healthcare shares. But it does not have many companies with the global scale of the leading US technology giants.

The NDQ ETF helps fill that gap.

Rather than trying to pick one winner, investors can own a basket of companies that have already built dominant positions in large global markets.

2. The AI opportunity is still early

Artificial intelligence has already created huge excitement in markets.

But I do not think the opportunity is finished.

AI is still being built into software, search, advertising, devices, cloud platforms, chips, data centres, and business workflows. That could support earnings growth for many Nasdaq 100 companies over the next decade.

There will almost certainly be periods when AI enthusiasm runs too hot. Some expectations may prove unrealistic.

But I think the bigger trend is real. This ETF gives investors a simple way to gain exposure to that trend without needing to decide which individual AI stock will win.

3. The NDQ ETF can diversify an ASX-heavy portfolio

Many Australian investors already have a lot of exposure to the local market.

That can mean heavy weightings to the big banks, BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), and other resources or income-focused shares.

There is nothing wrong with that, but it can leave a portfolio very tied to Australia’s economy, commodity prices, and local interest rates.

The NDQ ETF can add something different.

It provides exposure to global businesses earning money across many countries and industries. That can make a portfolio feel less dependent on the ASX doing all the work.

4. It suits long-term investors

The Betashares Nasdaq 100 ETF is not the ETF I would buy for a smooth ride.

Technology and growth shares can be volatile, especially when interest rates rise or valuations come under pressure.

But I think volatility is easier to handle when the time horizon is long.

If I were investing $10,000 into the NDQ ETF, I would be thinking in terms of five, 10, or even 20 years. Over that period, I think innovation, earnings growth, and global digital adoption could continue doing a lot of heavy lifting.

Short-term pullbacks would not surprise me. I would treat them as part of owning a growth-focused ETF.

5. It keeps things simple

One of the biggest advantages of ETFs is simplicity.

With one investment, this ETF gives investors exposure to a diversified group of major global companies.

That means there is no need to constantly decide whether to buy Microsoft, NVIDIA, Apple, Amazon.com, or another individual stock.

For many investors, that simplicity is valuable. It reduces the pressure to pick the perfect stock and allows the portfolio to benefit from a broader innovation theme.

Foolish takeaway

Overall, I would buy the NDQ ETF because it gives me exposure to some of the strongest companies in the world, many of which are tied to powerful long-term trends.

There will be setbacks. Growth shares can fall hard when sentiment changes.

But if I had $10,000 to invest for the long term, I think the Betashares Nasdaq 100 ETF would be a very strong candidate.

The post 5 reasons I’d buy the NDQ ETF with $10,000 appeared first on The Motley Fool Australia.

More reading

• Why the Betashares Nasdaq 100 ETF could be the best way to capture the AI boom
• Why invest in Betashares Nasdaq 100 ETF (NDQ) at an all-time high?
• 5 of the best ASX ETFs to buy and hold in 2026
• How I’d build a simple ASX portfolio with just 3 ETFs
• I love the BetaShares Nasdaq 100 ETF (NDQ). Here’s why I sold it.

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, BetaShares Nasdaq 100 ETF, Microsoft, and Nvidia. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Amazon, Apple, BHP Group, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.