1. Invest in the New Economy
The way we work, communicate, manufacture and consume has been revolutionised. The world we live in is becoming increasingly digital and automated. And many of the most revolutionary companies driving this change and leading the way in shaping this future are listed on the Nasdaq-100 Index.
Apple, Amazon, Google, Facebook, Netflix, Tesla to name a few…
NDQ offers you the chance to invest in this future rather than just being a consumer of it.
2. Performance that speaks for itself
The Nasdaq-100 has strongly outperformed the Australian sharemarket over time frames from 1 year to 10 years, reinforcing the position of this index as a pre-eminent international large-cap growth index for Australian investors. While the Nasdaq-100 won’t always outperform the Australian sharemarket, the historical performance shown below illustrates the potential benefit of diversifying the sources of investment returns beyond the domestic sharemarket.
Annual Return of the Nasdaq-100 Index compared to the Australian sharemarket (S&P/ASX 200 Index) – as at 31 August 2017:
||3 YR||5 YR||10 YR|
|S&P/ ASX 200||
Source: Bloomberg. Past performance is not an indicator of future performance. You cannot invest directly in an Index. Does not take into account ETF fees and costs which would reduce returns.
Growing earnings and dividends – The Nasdaq-100 has experienced ~2.5 times the annual earnings growth of the broad U.S. sharemarket (S&P 500 Index) over the last 13 years and ~4 times the annual dividend growth of the S&P 500 over last 13 years.
Strength in diversity – The diversity of companies included in the Nasdaq-100 has helped to make it one of the best performing large cap growth indices globally. Since 2003 to December 2016, the Nasdaq-100 has posted a compound annual growth rate of:
3. Complete Your Portfolio
The Nasdaq-100 is home to the fast growing technology sector, a sector that is particularly under-represented in the Australian sharemarket. In fact, IT makes up only 1.4%* of the Australian sharemarket while this dynamic growth sector makes up 54% of the Nasdaq-100 Index.
This type of sector diversification benefits Australian investors who are likely to have a home market bias and who may have a naturally high exposure to Banks, Financials and Resources and relatively little exposure to international large cap technology, consumer brands and healthcare innovation.
4. Access category defining companies beyond Technology
More than a ‘technology index’, some of the leading global innovators across Healthcare, Consumer Goods and Consumer Services sectors are also members of the Nasdaq-100. For example, several companies that are not strictly defined as ‘technology companies’, including Amazon, Netflix, Tesla and Expedia, are companies that are not only defining our future but have redefined and lead their respective industry categories.
5. Simple, low cost international diversification – in a single trade
NDQ can be bought and sold just like any share on the ASX. With management fees of only 0.48% p.a., or $48 for every $10,000 invested, it is a low-cost investment choice when compared to traditional active managers focusing on similar exposures.