3 reasons I’d buy the NDQ ETF now

The Betashares Nasdaq 100 ETF (ASX: NDQ) is an ASX exchange-traded fund (ETF) I would be comfortable buying with a long-term view.

It gives investors access to many of the businesses shaping how technology is used around the world, without requiring them to decide which individual company will ultimately come out on top.

Here are three reasons I would buy it now.

It gives me exposure to businesses changing how the world operates

One reason I like the NDQ ETF is that many of its largest holdings sit behind technologies that are becoming increasingly important to consumers and businesses.

Nvidia, for example, has become central to the build-out of artificial intelligence (AI) infrastructure through its advanced chips.

Microsoft approaches the opportunity from another direction. Its cloud computing and software businesses give it the chance to bring AI tools directly into products already used by companies around the world.

Then there are businesses such as Amazon, where cloud computing, ecommerce, advertising, and automation all provide potential avenues for further growth.

These businesses are helping build the infrastructure, software, and services that could shape how we work, shop, communicate, and process information for many years.

I don’t have to pick the biggest winner

Artificial intelligence is a good example of why I like the broad exposure provided by the NDQ ETF.

There are several places where value could ultimately be created.

Chipmakers may benefit from the initial infrastructure spending; cloud providers can supply computing power; software companies can develop applications for businesses; and consumer platforms may find entirely new ways to use the technology.

The balance between those opportunities could shift considerably over the next decade.

Owning the NDQ ETF lets me participate across that broader development rather than trying to predict today which company will capture the largest share of the profits.

The same thinking applies beyond AI.

Technology changes quickly, and I would rather own a collection of leading businesses than depend too heavily on my ability to identify the next major trend before everyone else does.

The fund can evolve without me doing anything

The way the index can evolve is probably one of the strongest reasons I could imagine holding the NDQ ETF for many years.

The NASDAQ-100 Index (NASDAQ: NDX) will not contain the same companies forever. Businesses that grow can become more important within the index, while others can lose influence or eventually be replaced.

That means the fund can gradually change as the corporate landscape changes.

I think this is especially valuable over a timeframe of 10, 20, or even 30 years. It would be unrealistic to expect today’s largest companies to remain in the same positions indefinitely.

Some will keep compounding. Others will eventually be overtaken by businesses that may still be relatively small today.

With the NDQ ETF, investors can participate in that evolution without continually rebuilding the portfolio themselves.

Foolish takeaway

I think the NDQ ETF gives ASX investors a simple way to own a collection of businesses positioned around some of the world’s most important long-term growth trends.

There will be periods when technology shares struggle, and the fund’s concentration in large growth companies means volatility should be expected.

But I like the idea of owning an investment that can keep evolving as new corporate leaders emerge.

The post 3 reasons I’d buy the NDQ ETF now appeared first on The Motley Fool Australia.

More reading

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• The best ASX ETFs to buy with $50,000
• Top 3 ASX ETFs for a first-time investor in 2026
• 20% a year: Is this the ASX’s best index fund?
• A200 vs NDQ: one Betashares ETF is the clear winner

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, 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, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.