I believe the best exchange-traded fund (ETF) on the ASX right now is Betashares NASDAQ 100 ETF (ASX: NDQ).
What Is An ETF?
An ETF is an investment fund that is bought and sold on a share market. An ETF will normally track a market index, e.g. the ASX 200 (INDEXASX: XJO) index, or in this case, the NASDAQ-100 (INDEX: NDX). The NASDAQ market is in the US and is known for listing the world’s largest technology companies.
An ETF’s price will rise or fall in line with the index it is following. ETF tend to be a cheap and easy way to begin investing. The minimum amount needed to invest in an ETF is $500. They generally have low fees because they are passively managed. Another bonus for new investors is the instant diversification received from some ETFs as they hold a large number of shares in different sectors.
Betashare NASDAQ 100 ETF
The Betashares NASDAQ 100 ETF tracks the performance of the 100 largest non-financial shares listed on the NASDAQ stock market. Many of the top companies on the NASDAQ 100 would be familiar to you, and you would use their products every day. The top company names include Apple, Alphabet (Google), Microsoft, Amazon, Facebook and Netflix.
The companies mentioned above are household names globally. Investors should take comfort knowing they are investing their money in products they use regularly.
I think these technology giants still have a lot of growth in front of them as they as they are continually developing and acquiring new products.
Apple and Amazon have both reached a $1 trillion market capitalisation in recent times, making them the largest publicly traded companies in the world. These companies dominate their industries, which is one reason why I believe they are suitable investments to have in a shares portfolio.
If you are new to investing, ETF’s can be the best place to start. I think the Betashares NASDAQ 100 ETF offers low fees, diversification and invests in companies you will be familiar with.
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Disclosure: At the time of publishing, Jack own shares in Betashares NASDAQ 100 ETF.
