Here’s why the BetaShares Nasdaq 100 ETF (NDQ) is outperforming the ASX today

The S&P/ASX 200 Index (ASX: XJO) is performing strongly this Thursday. At the time of writing, the ASX 200 is up a healthy 0.74% at around 7,045 points. But that’s nothing compared to the BetaShares Nasdaq 100 ETF (ASX: NDQ).

NDQ units have had a cracking day so far. This exchange-traded fund (ETF) has lifted an impressive 1.7% to $29.37 a unit at the time of writing.

NDQ is an ASX-listed index fund. It covers no ASX shares though, instead tracking the 100 largest companies on the US NASDAQ-100 (NASDAQ: NDX). The NASDAQ stock exchange is renowned as the major US exchange that holds most of the US’s famous tech shares. Its largest holdings are the likes of Apple, Amazon.com, Microsoft, Tesla and Alphabet.

It also holds a bevvy of other household tech names, including PayPay, Netflix, Starbucks, Adobe and NVIDIA.

So why is the BetaShares NASDAQ 100 ETF having such a strong showing this Thursday?

What’s boosting the BetaShares Nasdaq 100 ETF (NDQ)?

Well, we need not look any further than the performance of the NASDAQ-100 Index itself.

Last night on the US markets, the NASDAQ had an exceptionally strong showing. It gained a healthy 2.85%, rising from 13,008.16 points to 13,378.32 points.

This was supported by moves like Apple rising 2.62%, Microsoft appreciating 2.43% and Amazon and Tesla both gaining more than 3.5%. And with these companies among the NDQ’s top holdings, the gains are flowing into the NDQ ETF today as well.

But why not as much as the NASDAQ’s gains last night? Aren’t NDQ and the NASDAQ-100 essentially the same thing?

Well, yes. But there are other factors at play too. The US NASDAQ-100 Index is obviously priced in US dollars. But NDQ is an ASX-listed ETF priced in Aussie dollars.

And the Aussie dollar has been on the rise over the past few days. This devalued what US companies are worth in Australian dollar terms, and might explain the more tempered movements of NDQ today compared to its underlying index.

But even so, it’s certainly a strong and pleasing showing from this ETF.

Despite today’s gains, the BetaShares Nasdaq 100 ETF has had a rough time in recent months. NDQ units remain down by almost 20% in 2022 thus far, and by just over 10% over the past 12 months. But they also remain up by more than 130% over the past five years.

The BetaShares Nasdaq 100 ETF charges a management fee of 0.48% per annum.

The post Here’s why the BetaShares Nasdaq 100 ETF (NDQ) is outperforming the ASX today appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Adobe Inc., Alphabet (A shares), Amazon, Apple, Microsoft, Nvidia, Netflix, PayPal, Starbucks, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, BETANASDAQ ETF UNITS, Microsoft, Netflix, Nvidia, PayPal Holdings, Starbucks, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2024 $420 calls on Adobe Inc., long March 2023 $120 calls on Apple, short January 2024 $430 calls on Adobe Inc., short March 2023 $130 calls on Apple, and short October 2022 $85 calls on Starbucks. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Adobe Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Netflix, Nvidia, PayPal Holdings, and Starbucks. 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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