The Betashares Nasdaq 100 ETF (ASX: NDQ) has become one of the most popular ways for Australians to own the world’s leading technology companies through a single ASX trade. It offers exposure to 100 of the largest non-financial companies listed on the Nasdaq — the very names at the centre of the artificial intelligence boom.

In September 2026, NDQ embodies a genuine tension. The AI Investment cycle continues to power big technology, yet the US Federal Reserve has turned more hawkish than markets expected, and long-duration Growth Stocks are unusually sensitive to interest rates. This article looks at what NDQ holds, why it is in focus, and the catalysts and risks that could shape it from here.

What is the NDQ ETF?

NDQ is a passive, physically backed ETF issued by Betashares. It aims to track the performance of the Nasdaq-100 Index, before fees and expenses. The Nasdaq-100 comprises 100 of the largest non-financial companies on the Nasdaq market and is heavily skewed towards technology and the so-called new economy. The fund charges management fees and costs of 0.48% per annum and does not require investors to complete US W-8BEN forms.

In a single trade, NDQ gives access to global technology leaders such as Apple, Amazon, Microsoft, Nvidia and Alphabet. Because the Australian market has relatively little large technology exposure, NDQ has been widely used to Fill that gap. The fund is not currency hedged, so returns for Australian investors are affected by moves in the AUD/USD exchange rate. It distributes income, though the Yield is modest given the growth orientation of its holdings.

What is driving interest now?

The dominant driver is artificial intelligence. Strong Demand for AI chips, cloud infrastructure, data centres and software has continued to fuel technology spending, and the Nasdaq-100’s largest constituents are central to that theme. The Nasdaq-100 had added roughly 16.6% year-to-date by around mid-2026, outpacing the broader market, though momentum cooled over the northern-hemisphere summer.

The counterweight is US monetary policy. The Federal Reserve held its benchmark rate at 3.50–3.75% in mid-2026 with hawkish guidance, and several policymakers projected a possible hike before year-end. Because the Nasdaq-100’s long-duration growth profile is highly rate-sensitive, technology stocks sold off on those signals. For Australian holders, the unhedged currency exposure adds further variability: a stronger Australian dollar reduces US returns, a weaker one lifts them.

Portfolio and holdings

NDQ is defined by its concentration in a small group of enormous technology companies. Electronic technology and technology-services businesses together make up well over half the fund, with large retail-trade and health-technology exposures adding to the mix. The very largest holdings — the dominant US technology and internet names — carry substantial weight, so NDQ’s fortunes are tied closely to their earnings.

That concentration has fuelled striking multi-year returns, but it is also the fund’s defining risk. When the mega-caps lead, NDQ tends to surge; when AI-related Earnings disappoint or growth stocks are repriced, the same concentration magnifies the fall. Investors should be comfortable that much of NDQ’s return depends on a handful of technology leaders continuing to perform.

Catalysts to watch

Key factors for NDQ in the coming months include the trajectory of US Federal Reserve policy and whether a rate hike materialises before year-end; the pace of AI Capital spending and whether it converts into profits; the earnings of the largest technology holdings; the AUD/USD Exchange Rate for unhedged returns; and any regulatory developments affecting the biggest technology companies.

Risks

NDQ’s risks are significant despite its popularity. Technology and single-stock concentration mean a repricing of growth stocks could hit the fund hard. Interest-rate risk is elevated because long-duration growth names are sensitive to Fed policy. Currency risk is unhedged. Valuation risk is a real consideration after strong gains, and sector, country and market risks apply. Regulatory scrutiny of the largest technology companies adds a further layer of uncertainty. Investors wanting to remove the currency element sometimes consider the hedged version, HNDQ, though hedging carries its own costs.

Outlook

NDQ remains one of the most direct ASX routes into US large-cap technology and the AI theme, and it has rewarded holders strongly over recent years. The near-term picture is a contest between an AI capital-spending supercycle and a less accommodative Fed. Investors may be watching US rate decisions, technology earnings, AI spending trends and the Australian dollar for direction. The outlook may depend on whether AI investment continues to justify elevated valuations and how the currency moves for unhedged Australian investors.