NDQ — the BetaShares NASDAQ 100 ETF — provides Australian investors with access to the NASDAQ 100, an index of the 100 largest non-financial companies listed on the US NASDAQ exchange. NDQ is heavily concentrated in US technology companies including Apple, Microsoft, NVIDIA, Alphabet, and Meta. This review covers what NDQ holds, its costs, performance profile, and the risks to be aware of.
NDQ at a Glance (2026)
| Feature | Detail |
|---|---|
| ASX code | NDQ |
| Full name | BetaShares NASDAQ 100 ETF |
| Index tracked | NASDAQ-100 Index |
| Number of holdings | ~100 companies |
| MER | 0.48% per year |
| Distribution frequency | Annually |
| Inception date | May 2015 |
| Fund size | $5B+ (AUM) |
| Provider | BetaShares |
| Currency exposure | Unhedged (USD exposure) |
Verify current details at betashares.com.au.
What Does NDQ Hold?
NDQ tracks the NASDAQ-100 — the 100 largest non-financial companies on the NASDAQ exchange. It is heavily weighted toward US technology:
Top holdings (approximate):
| Company | Weight |
|---|---|
| Microsoft | 8–9% |
| Apple | 8–9% |
| NVIDIA | 7–10% |
| Amazon | 5–6% |
| Alphabet (Google) | 4–6% |
| Meta Platforms | 4–5% |
| Tesla | 2–4% |
| Broadcom | 2–3% |
| Costco | 2–3% |
| Netflix | 1–2% |
Holdings and weights change significantly with market movements. Check betashares.com.au for current data.
Sector breakdown (approximate):
- Information Technology: 50–60%
- Communication Services: 15–20%
- Consumer Discretionary: 10–15%
- Healthcare: 5–8%
- Other: 5%
NDQ MER — 0.48%
At 0.48%, NDQ is significantly more expensive than broad market ETFs (VGS at 0.18%, VAS at 0.07%). On $100,000 invested, the annual fee is $480. The higher MER reflects the NASDAQ-100 index licensing cost from Nasdaq Inc.
NDQ vs VGS vs IVV — Key Differences
| Feature | NDQ | VGS | IVV |
|---|---|---|---|
| Index | NASDAQ-100 | MSCI World ex-Aus | S&P 500 |
| Holdings | ~100 | ~1,500 | ~500 |
| Geographic scope | US only (NASDAQ) | 22 developed markets | US only |
| MER | 0.48% | 0.18% | 0.03% |
| Technology weight | ~55% | ~22% | ~30% |
| Diversification | Low | High | Moderate |
NDQ is concentrated — not diversified. It holds ~100 companies, almost all in the US, with more than half the fund in technology. This is a thematic/sector bet on US technology, not a broad global equity exposure.
Performance of the NASDAQ-100
The NASDAQ-100 has delivered exceptional returns over the past decade — driven by the growth of Apple, Microsoft, Amazon, Google, and Meta. From 2010–2024, NDQ significantly outperformed the ASX and many broad global indices.
However:
- The NASDAQ-100 fell approximately 33% in 2022 (rising interest rates, tech sell-off)
- It recovered strongly in 2023 and 2024 (AI-driven rally)
- Past performance of sector-specific indices is notably variable — there is no guarantee the next decade will resemble the last
The NASDAQ-100’s strong historical performance reflects both genuine company earnings growth and valuation expansion (rising P/E multiples). Future returns depend heavily on whether valuations remain elevated or compress.
Risks of NDQ
- Concentration risk — ~100 companies, 50%+ in technology, all US-listed
- Valuation risk — US tech valuations are historically elevated; a significant de-rating would substantially reduce returns
- Currency risk — entirely USD-denominated; AUD strength reduces returns
- Regulatory risk — US antitrust action, EU regulation, or AI-related regulation could affect the largest holdings
- Mean reversion — sectors that significantly outperform tend to underperform in subsequent periods
NDQ is best understood as a thematic exposure to US technology growth, not a portfolio diversifier.
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Frequently Asked Questions
Is NDQ too risky for a beginner? NDQ’s concentration in ~100 US technology companies creates significantly more risk than a broad global ETF like VGS (1,500+ companies, 22 countries). A beginner investor holding NDQ as their only ETF is making a concentrated bet on US technology — which has paid off historically but carries risks that a diversified portfolio does not. Many financial educators suggest using broad diversified ETFs as the core of a portfolio, with thematic ETFs like NDQ as a smaller satellite position if at all.
Does NDQ pay dividends? Yes, NDQ distributes annually. However, NASDAQ-100 companies pay relatively low dividends — the distribution yield is typically well below 1%. Most NASDAQ-100 companies prioritise share buybacks over dividends. NDQ is primarily a growth (capital appreciation) investment, not an income investment.
What is the difference between NDQ and a managed technology fund? NDQ passively tracks the NASDAQ-100 index at 0.48% MER. Actively managed technology funds typically charge 1.5–2.0% MER and attempt to outperform the index through stock selection. Research consistently shows the majority of active fund managers underperform their benchmark after fees over long periods.
This article provides general financial information only. ETF mentions are for educational context. Past performance is not a reliable indicator of future performance. Thematic ETFs carry higher concentration risk than broad market ETFs. For advice tailored to your situation, speak with a licensed financial adviser. You can find one through the ASIC financial advisers register or MoneySmart.