Is NDQ a good ETF?
NDQ is the BetaShares NASDAQ 100 ETF from BetaShares. It tracks the NASDAQ-100 Index. We classify it under US, Large-Cap, Tech, Growth, and Market-Cap. With about $9.55 billion in assets it is a large, highly liquid fund. Listed on the ASX since 2015-05-26 (over 11 years ago).
On a total-return basis, NDQ has delivered 20.85% a year over 10 years (ranked 2nd of 108 ETFs we track), 14.81% a year over 5 years (ranked 17th of 188 ETFs we track), 20.04% a year over 3 years (ranked 26th of 226 ETFs we track), and 11.74% a year over 1 year (ranked 105th of 308 ETFs we track). Its strongest showing is over 10 years, where it sits in the top 2% of all ETFs we track.
The management fee of 0.48% is on the higher side. For comparison, similar ETFs average around 0.4%. If cost is your priority, IVV (0.04%), U100 (0.18%), and FANG (0.35%) cover similar ground for less. It pays a moderate 1.54% yield.
Over the past 10 years its volatility has been elevated (annualised standard deviation around 15.93%), meaning noticeably larger swings than the broad market. Its 10-year Sharpe ratio of 1.14 is strong — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is low at about 15% a year — it trades only a small slice of its holdings each year, so trading costs and tax on realised gains stay modest — typical of a passive index strategy.
Strengths
- Top-2% returns over 10 years (2nd of 108 ETFs we track).
- Strong risk-adjusted returns (10-year Sharpe ratio 1.14).
Things to watch
- Pricier than similar ETFs, which average around 0.4%.
- Cheaper alternatives exist: IVV, U100, and FANG.
What NDQ's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
US-listed companies — the world's deepest, most innovation-heavy market and home to the mega-cap tech names. Has led global returns for over a decade.
- Market regime
- Strong leadership has left valuations high and the index heavily concentrated in a handful of tech giants. Unhedged funds also rise and fall with the AUD/USD exchange rate.
- In a portfolio
- A legitimate core holding for global exposure, but be aware you are buying after a long run of outperformance and at elevated valuations.
The biggest, most established companies. More stable earnings, lower volatility and often steadier dividends than the broad market.
- Market regime
- Holds up comparatively well in downturns and uncertain markets; tends to lag small-caps and growth during the most aggressive bull runs.
- In a portfolio
- A dependable core building block suited to long-term holding.
Concentrated in technology and high-growth innovation. The highest long-run growth potential on offer, paired with the deepest drawdowns.
- Market regime
- Very sensitive to interest rates and sentiment: powers ahead when money is cheap and optimism is high, and falls hardest when rates rise or risk appetite sours. Low dividends, high volatility.
- In a portfolio
- A long-horizon, high-conviction holding for investors with a strong stomach. Size the position so a 40-50% drawdown wouldn't derail your plan.
Companies expected to grow earnings quickly, which typically reinvest profits rather than pay dividends. Low yield, higher volatility, valuation-driven.
- Market regime
- Shines when interest rates are low or falling and risk appetite is high. Hit hardest when rates rise, because more of their value sits in distant future earnings.
- In a portfolio
- Long-horizon growth engine for investors who can stomach deeper drawdowns and little income along the way.
Holdings are weighted by company size, so the largest companies carry the most weight. These funds are cheap, tax-efficient and self-rebalancing.
- Market regime
- Works in almost any regime as a low-maintenance core. The trade-off is concentration — you automatically own more of whatever has already become expensive at the top of a bull market.
- In a portfolio
- The classic buy-and-hold core of most portfolios. Well suited to long-term, hands-off investing.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.