With ETFs that track the Nasdaq index, it is possible to invest in American technology, a sector that has driven the growth of the equity markets in recent years.
NASDAQ is the market where the main technology companies are listed, the FAANG group (Facebook, Apple, Amazon, Netflix, Google), and many other companies in the US technology sector. There are 3200 non-financial companies listed on the NASDAQ, which have had an average compound annual return of 18% since 2009, double the Dow Jones.
So investing in NASDAQ is currently one of the easiest investment advice, obviously considering that it would be a medium-long term investment.
The 4 best NASDAQ ETFs to invest in
The performances of the world’s leading technology market are measured with the NASDAQ Composite and NASDAQ 100 indices: the second is a “selection” of the 100 companies with the highest market value and there are several ETFs that replicate it.
Lyxor ETF NASDAQ100 – LU1829221024
This ETF was born on September 7, 2001, just before the collapse due to the terrorist attack. It is quoted in Euros, but exposes to exchange rate risk between the Euro and the US Dollar, as the shares within the fund are denominated in USD.
The ETF’s assets are around 640 million euros, as for the technical characteristics of the instrument we can say that the ETF is synthetic, it costs 0.30% per year, it is distributed every six months.
iShares NASDAQ 100
Unlike the previous case, the ETF is physically replicated. The product launch date is January 26, 2010. Despite arriving after the Lyxor, the NASDAQ iShares ETF has significant assets of approximately US $ 5 billion.
The exchange risk is present and these are the technical characteristics of the product: the replication method is complete physical (the ETF holds all the shares that make up the index), it costs 0.33% per year, it is an ETF accumulation (automatically reinvests the proceeds that will be collected at the time of sale of the product).
Invesco Eqqq Nasdaq 100
The ETF has assets of over $ 2.5 billion. Similarly to the previous ones, it is called the Dollars and involves exchange rate risk.
From a technical point of view these are the characteristics of the product: the replication method is complete physical, the annual management cost is 0.20%, it is distributed (pays dividends on a quarterly basis).
Amundi Nasdaq 100
The ETF’s assets are approximately € 650 million and, as in all other cases, the investment in the product entails the assumption of exchange rate risk.
In summary, these are the ETF technical characteristics: the replication method is synthetic, the annual management cost is 0.23%, it is the accumulation of income.