Best NASDAQ 100 ETF (Australia, UK and US)
By 'best' I mean the lowest cost ETF that tracks the US NASDAQ 100 index.
Why the NASDAQ 100?
Investing in the Nasdaq 100 can offer several potential benefits:
- Exposure to Growth: The Nasdaq 100 is heavily weighted towards technology and growth-oriented companies, which have historically shown strong long-term growth potential.
- Diversification: While concentrated in technology, the index still offers some diversification across various sectors within the technology space.
- Ease of Investment: Investors can gain exposure to the Nasdaq 100 through ETFs like the Invesco QQQ, making it relatively easy to invest in.
- Potential for High Returns: Historically, the Nasdaq 100 has outperformed broader market indices like the S&P 500 over the long term. Since 1985 the Nasdaq 100 has produced an annualized return of 14.06% (not including dividends).
However, it's important to consider the risks:
- Volatility: The Nasdaq 100 can be more volatile than broader market indices due to its concentration in high-growth sectors.
- Concentration Risk: The index is heavily influenced by a few large technology companies, which can increase risk if these companies underperform.
- Economic Dependence: The performance of the Nasdaq 100 is closely tied to the overall health of the technology sector and the global economy.
UK Market
| ETF | Fees | Ticker |
|---|---|---|
| Xtrackers Nasdaq 100 UCITS ETF 1C Accumulating | 0.2% | LON:XNAQ |
Australian Market
| ETF | Fees | Ticker |
|---|---|---|
| Global X US 100 ETF | 0.24% | ASX:N100 |
United States Market
| ETF | Fees | Ticker |
|---|---|---|
| Invesco NASDAQ 100 ETF | 0.15% | NASDAQ: QQQM |
