Exchange-traded funds (ETFs) can make it much easier to invest in global companies from Australia.

The Betashares Nasdaq 100 ETF (ASX: NDQ) has become a popular choice for investors seeking long-term growth.

But does it deserve a place in a portfolio today?

What does the NDQ ETF own?

The NDQ ETF tracks the Nasdaq 100 Index, which includes 100 of the largest non-financial companies listed on the Nasdaq market.

Its holdings include businesses such as NVIDIA, Apple, Microsoft, and Tesla.

These companies sit behind many of the products and services people and businesses now rely on every day. The portfolio reaches across semiconductors, cloud computing, artificial intelligence, online shopping, digital advertising, streaming, software, and consumer technology.

I think that gives the Betashares Nasdaq 100 ETF a good chance of benefiting as more economic activity moves online and companies keep investing in technology.

The index also changes over time. Companies that grow can become more influential, while businesses that lose ground can shrink within the portfolio or eventually leave it.

That allows investors to back the Nasdaq’s future leaders without needing to identify each winner in advance.

Why I like the long-term opportunity

Technology spending is becoming part of almost every industry.

Banks want better fraud detection, manufacturers want greater automation, healthcare providers need improved data systems, retailers want to understand customers more clearly, while companies across the economy are investing in artificial intelligence and cloud infrastructure.

Many of the Betashares Nasdaq 100 ETF’s holdings provide the chips, software, platforms, and digital services supporting that investment.

The companies in the index also tend to have substantial global reach. Their growth is rarely limited to the US economy because they sell products and services to customers around the world.

That combination of innovation, scale, and global demand makes the ETF attractive to me as a long-term growth investment.

What should investors consider?

The Betashares Nasdaq 100 ETF is more concentrated than a broad global ETF.

Technology companies account for a large part of the portfolio, and several enormous businesses carry significant index weight. A difficult period for technology shares could therefore cause the ETF to fall sharply.

Valuation also deserves attention. Investors often pay high earnings multiples for companies expected to grow quickly. Those share prices can react badly when earnings disappoint or interest rate expectations change.

Australian investors also face currency movements because the ETF is unhedged. A stronger Australian dollar can reduce returns from US holdings when translated back into Australian dollars, while a weaker dollar can lift them.

The management fee and costs are currently 0.48% per annum. That is higher than some broad-market ETFs, although I think the focused exposure could justify the cost for investors who specifically want the Nasdaq 100.

I would hold the fund alongside other investments rather than rely on it as an entire portfolio.

My verdict

I think investing in the NDQ ETF is a good idea for investors with a long time horizon and enough tolerance for volatility.

The fund provides access to companies that could remain central to how the global economy develops over the next decade.

There will be periods when technology sentiment weakens and the ETF falls heavily. I would see those declines as part of owning a growth-focused investment.

Foolish takeaway

The NDQ ETF gives ASX investors a straightforward way to own many of the world’s leading technology and consumer businesses.

Its concentration means the journey could be volatile, and I would balance it with broader Australian and international exposure.

For investors who can remain patient through market swings, I think the NDQ ETF is a strong long-term buy.

The post Is it a good idea to invest in the NDQ ETF? appeared first on The Motley Fool Australia.

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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 Apple, BetaShares Nasdaq 100 ETF, Microsoft, Nvidia, and Tesla. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Genesis Energy Ltd (ASX: GNE) share price is in focus as the company reported an 11.6% rise in electricity netback to $189/MWh for Q4 FY26 and completed the final stages of its single brand transition, despite warmer temperatures delivering outcomes at the lower end of expectations.

What did Genesis Energy report?

• Electricity netback: $189/MWh, up 11.6% on prior corresponding period (pcp)
• Total customers: 490,227, down 5.8% on pcp, with the final stage of transition to a single brand
• Total electricity sales: 1,543 GWh, down 153 GWh on pcp, reflecting milder temperatures and brand migration
• Hydro generation: 703 GWh, down 1 GWh on pcp, with increasing storage levels
• Thermal generation: 527 GWh, down 567 GWh on pcp, with Huntly Unit 5 in temporary hibernation until December 2026
• FY26 EBITDAF expected at the lower end of guidance range

What else do investors need to know?

Genesis continued to progress on strategic priorities, notably commissioning Stage 1 of the Huntly Battery Energy Storage System, with Stage 2 moving into detailed design. The company remains on track with its $145 million digital investment rollout, including billing and CRM system upgrades set for phased migration starting in Q2 FY27.

The customer base declined, mainly due to migration to a single brand and simplified product offering, which accelerated during the quarter. Genesis expects around $5 million in one-off operating expenses in FY26 due to this brand transition, with a further $6 million anticipated in FY27 before marketing expenditure returns to normal levels from FY28.

Despite milder weather affecting demand, hydro storage ended the quarter at strong levels, positioning Genesis well for the start of FY27. Coal stockpiles remain robust at over one million tonnes, and gas supply security has been bolstered with new contracts.

What’s next for Genesis Energy?

Genesis will continue its transformation strategy, focusing on growing renewable generation and digital innovation. The company is targeting delivery of its Huntly BESS projects and grid-scale solar developments over coming years, with Tihori Solar Farm scheduled for Q1 FY28 commissioning and Leeston aiming for final investment decision in Q1 FY27.

Efforts to streamline to a single brand are designed to align supply and demand, enhance margins, and unlock value through better utilisation of flexible generation assets. Investors can expect focus to remain on margin quality, digital capability, and further expanding renewable capacity to support medium-term growth.

Genesis Energy share price snapshot

Over the past 12 months, Genesis Energy shares have risen 1%, matching the S&P/ASX 200 Index (ASX: XJO), which has risen 1% over the same period.

View Original Announcement

The post Genesis Energy Q4: Margin lifts as single brand shift nears finish appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

There are some ASX dividend stocks I’d rather own for income than rely on the Age Pension.

The Age Pension is wonderful and generous, and it’s steadily growing over time. But there are ASX passive income ideas that are growing their payouts faster and offer a compelling dividend yield.

L1 Long Short Fund Ltd (ASX: LSF) is a listed investment company (LIC) that’s offering investors numerous benefits. Let’s dig into those positives.

Dividend yield and payout growth

We’ll start with the passive income, seeing as that’s the focus of this article.

The LIC recently started paying investors a quarterly dividend, which is very pleasingly regular.

I expect the business to pay dividends that total 15.8 cents per share over the next 12 months, which equates to a future grossed-up dividend yield of 5.1%, including franking credits.

The business started paying an annual dividend in FY21 and has increased its dividend every year since then. Since switching to quarterly payouts, it has grown its quarterly dividend every quarter.

The dividend is increasing at a pleasing pace, I expect the combined last two quarterly dividends of FY26 will be 15% higher than the FY25 second half dividend. That’s a very pleasing rate of annual growth, in my view – far stronger than today’s elevated inflation.

Diversification

Another benefit to owning the L1 Long Short Fund is that the LIC owns a diversified portfolio which usually gives investors exposure to a number of sectors such as materials, industrials, communication services, financials and utilities.

Currently, some of the ASX dividend stock’s key areas of focus include gold, copper, construction materials, infrastructure and select financials.

L1 does a great job at investing in unloved shares and sectors that look undervalued but can still deliver good returns.

Its portfolio is tilted towards quality value stocks, with its average long position trading on a price/earnings (P/E) ratio of 10, with double-digit earnings per share (EPS) growth and modest debt levels.

Capital growth

Another benefit of ASX shares is that they can deliver long-term capital growth as they increase their underlying value.

L1 Long Short Fund has delivered strong investment returns, allowing it to hike its payouts and deliver share price growth as its portfolio increases in value.

The portfolio returned an average of 16.9% per year over the five years to 30 June 2026, driving a 70% rise in the L1 Long Short Fund’s share price over the period.

Of course, past performance is not a guarantee of future returns.

How many shares it takes to equal the Age Pension

The maximum level of income that an Australian can get from the Age Pension equates to around $1,200 per fortnight or around $31,200 annually.

Based on that, excluding franking credits, an investor would need 197,469 L1 Long Short Fund shares. But, with a growing dividend and rising share price, it makes me think the ASX dividend stock would be an excellent long-term investment.

It wouldn’t be the only investment I have in a dividend portfolio, but I’m happy it’s one of the largest positions in my own portfolio.

The post 197,469 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.