NDQ
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ASX:NDQ is the BetaShares NASDAQ 100 ETF, an exchange-traded fund listed on the Australian Securities Exchange. It trades in Australian dollars and tracks the performance of the NASDAQ-100 Index, giving local investors simple exposure to 100 of the largest non-financial companies listed in the U.S. [1, 2]
Fund Overview & Key Features
- Underlying Index: Tracks the NASDAQ-100 Index (before fees and expenses).
- Holdings: Focuses on major global giants like Microsoft, Apple, NVIDIA, Amazon, and Meta Platforms.
- Management Fee: 0.48% per annum.
- Currency: Unhedged (your returns are exposed to movements between the Australian dollar and the U.S. dollar).
Why Investors Use NDQ
- Tech Exposure: Fills the gap for high-growth tech and innovation sectors that are under-represented on the standard Australian sharemarket.
- Diversification: Adds 100 leading international companies to a portfolio through a single ASX trade.
- Accessibility: Allows everyday retail investors to buy fractional or whole units via standard Aussie online brokers or platforms.
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chart
A ten fold increase since 2016.
But its advisable to remember the previous 16 years. This ETF only started in 2015 so we need to look elsewhere for that info.
NDQ Launch Date: May 26, 2015
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NASDAQ
2002 july 5 - $5 USD
2006 13 march - $14
2007 16 nov - $14
2010 31 dec - $6.61
2011 dec $7.80
2012 dec $8
2013 dec $12
2026 jan 16 - $100
The period between 2002 and 2012 were the lost decade.
A very painful decade where the US market stagnated.
The period between 2013 to 2026 has a 10 fold increase.
When the correction occurs will we then enter another bear market ?
Is it time to start looking to invest outside the USA?
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ARGO vs NDQ buffett style sept 2026
Comparing Argo Investments (ASX:ARG) and BetaShares Nasdaq 100 ETF (ASX:NDQ) is a classic clash of investment philosophies: traditional, reliable Australian dividend compounding versus high-octane, tech-driven global growth.
Core Comparison Metrics
| Metric | ASX: ARG (Argo Investments) | ASX: NDQ (BetaShares Nasdaq 100 ETF) |
|---|---|---|
| Type | Listed Investment Company (LIC) | Exchange Traded Fund (ETF) |
| Focus / Strategy | Diversified Australian blue-chip stocks | Top 100 non-financial US/Global tech giants |
| 10-Year Annualised Return | ~8% – 9% p.a. (historical NTA/total return) | ~20.8% p.a. (after fees) |
| Price-to-Earnings (P/E) | ~26.9 – 27.2 | Higher (~30+ average for underlying tech holdings) |
| Dividend / Yield | ~4.2% trailing (~5.9% grossed-up with franking) | ~1.4% trailing (low cash distribution) |
| Franking Credits | 100% Fully Franked | 0% (Unfranked / Foreign) |
| 10-Year Dividend Growth | Steady (~2.7% to 7% CAGR, no recent cuts) | Minimal/Volatile (driven by underlying tech buybacks/low yields) |
| Management Fees (MER) | Ultra-low (0.14% p.a.) | Higher for an ETF (0.48% p.a.) |
10-Year Long-Term Growth
- ASX: NDQ has heavily outperformed ARG on pure capital growth over the past decade. Driven by mega-cap tech holdings like Apple, Microsoft, and NVIDIA, NDQ delivered a stellar ~20.8% annualised return over the trailing 10 years. [1]
- ASX: ARG is a steady compounder, not a hyper-growth vehicle. It tracks a traditional portfolio of Australian large-caps (banks, miners, industrials), matching closer to the broader ASX 200 total return (~8–9% historical average).
P/E Ratios and Valuations
- ASX: ARG trades at a P/E of roughly 27.0, which is tightly aligned with its historical median valuation. You are paying a fair, mature price for stable Australian cash flows. [1]
- ASX: NDQ carries a higher aggregate P/E ratio because its underlying index is dominated by high-multiple, fast-growing innovation and software enterprises.
Dividends and Dividend Growth
- ASX: ARG shines here. As a classic Listed Investment Company, its entire corporate mission is to provide reliable, fully franked dividends. It has paid dividends consecutively since 1946, fully franked since 1995, and consistently grows its payout (or holds it stable) through economic cycles. [1, 2, 3]
A Warren Buffett Style Perspective
Warren Buffett famously looks for economic moats (durable competitive advantages), able management, and rational capital allocation, while famously avoiding paying absurd prices for hype.
- The Moat Test:
- NDQ owns companies with some of the widest economic moats on earth (Apple’s ecosystem, Microsoft’s enterprise lock-in, Google’s search monopoly). Buffett understands and admires these moats (he famously owns Apple via Berkshire Hathaway).
- ARG doesn't own unique operating businesses; it owns a diversified basket managed by an internal team picking local stalwarts (like Wesfarmers or BHP). It’s a diversified index-like proxy rather than a single concentrated fortress. [1]
- The Reinvestment vs. Dividend Dilemma:
- Buffett’s Berkshire Hathaway does not pay a dividend. Buffett believes that if a business can redeploy retained earnings at a high rate of return, paying a dividend destroys wealth. NDQ’s underlying holdings align with this philosophy—reinvesting cash to compound at high rates.
- Conversely, ARG exists strictly to turn capital gains and underlying portfolio dividends into a cash stream for its shareholders. Buffett might argue ARG is forced to pay out cash whether or not optimal reinvestment opportunities exist within its local mandate. [1]
- Price / Margin of Safety:
- Buffett insists on a margin of safety. NDQ often trades at rich valuations, exposing investors to severe sentiment pullbacks when interest rates spike or tech corrections occur. ARG offers a more grounded, asset-backed valuation relative to its Net Tangible Assets (NTA). [1]
- Choose ARG if your priority is predictable, tax-effective passive income (fully franked dividends) anchored safely in the Australian economy. [1]
- Choose NDQ if your priority is aggressive, long-term capital accumulation through global technological dominance, accepting low cash-flow generation today
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