The BetaShares NASDAQ 100 ETF (ASX: NDQ) is fresh out of what was a modestly successful month over July. Between 30 June and 31 July, the ASX exchange-traded fund (ETF) rose from $35.05 per unit to $35.63. That’s a gain worth 1.35% for the month.
However, ASX shares fared far better than that, with the S&P/ASX 200 Index (ASX: XJO) coming in with a return of 2.9% over the same period.
But now July is over and August is here, let’s talk about what might happen with this popular ASX ETF this month.
It’s hard enough to predict what a single share might do over a single month. But it is 100 times harder to make a prediction with this ETF. That’s because the BetaShares NASDAQ 100 ETF is made up of a portfolio of 100 individual shares, all drawn from the US’s NASDAQ stock exchange.
The NASDAQ is the exchange that houses most of the big American tech shares. Its largest holdings are dominated by the ‘magnificent seven’, comprising Apple, Microsoft, Amazon, Alphabet, Meta Platforms, NVIDIA and Tesla.
But the NASDAQ has plenty of other famous names within it as well. These range from PepsiCo and Adobe to Netflix, Starbucks and Airbnb.
However, this index fund is relatively top-heavy compared to most others out there. Apple alone currently makes up 11.7% of NDQ’s entire portfolio. The entire magnificent seven added together make up a whopping 43.1% of the ETF’s weighted holdings.
What should ASX investors watch out for with the NDQ ETF this August?
So when it comes down to it, how these seven stocks fare over August is going to more or less set the tone for the entire fund.
We might indeed have some big moves to look forward to this month, though. That’s because, over in the US, quarterly earnings season is currently underway. In fact, investors are scheduled to hear from both Apple and Amazon (as well as Airbnb) after Thursday’s US trade wraps up (early tomorrow morning for us).
Last month, we already got a look at the books of Microsoft, Meta and Tesla. These were mostly positive, with Meta a standout with its 16% surge in net income.
Given Apple’s massive share of this ETF’s portfolio though, it is this company that will probably set the trend for the NDQ ETF this month, Particularly if Apple stock jumps meaningfully higher or lower.
So keep an eye out for those earnings tomorrow if you’re interested to see how this ETF will perform in August.
The BetaShares NASDAQ 100 ETF charges a management fee of 0.48% per annum. It has returned an average of 19.42% per annum over the past five years.
