Highlights

  • Betashares Nasdaq Next Gen 100 ETF (ASX:JNDQ) targets the 100 largest non-financial Nasdaq-listed companies outside the Nasdaq-100.
  • The ETF is up 12.38% over the past year.
  • JNDQ carries a Dividend Yield of 5.17% as on 1 September 2026.
  • The strategy provides exposure to the next tier of US growth companies across technology, healthcare, industrials and consumer sectors.

The artificial intelligence boom has lifted the largest technology names, but attention is increasingly turning to companies sitting just below them in scale. The Betashares Nasdaq Next Gen 100 ETF (ASX:JNDQ) targets the 100 largest non-financial Nasdaq-listed companies outside the Nasdaq-100, effectively providing exposure to the next tier of growth businesses. Listed in February 2024, it offers Australian investors a way to access innovation beyond the familiar mega-caps as markets move between enthusiasm for AI and periods of heightened volatility.

What the ETF Does

JNDQ aims to track the Nasdaq Next Generation 100 Index, which captures the 100 largest Nasdaq-listed non-financial companies that are not already included in the Nasdaq-100.

In practice, these are mid- to large-cap growth companies across technology, healthcare, industrials and consumer sectors, many of which may eventually grow large enough to enter the flagship Nasdaq-100.

The fund gives Australian investors diversified, unhedged exposure to this next tier of US-listed companies through a single ASX-listed vehicle. Because the index sits directly beneath the Nasdaq-100, companies can move into or out of the benchmark as their market size changes.

Why It Is in Focus

Betashares Nasdaq Next Gen 100 ETF (ASX:JNDQ) is up 12.38% over the past year, while its dividend yield stands at 5.17% as on 1 September 2026.

The fund is in focus as investors look beyond the largest US technology companies for exposure to the next generation of growth businesses. This segment can include firms positioned to benefit from themes such as artificial intelligence, digital infrastructure, healthcare innovation and evolving consumer technologies.

The structure also gives investors exposure to companies that may eventually graduate into the Nasdaq-100, although inclusion is not guaranteed and depends on future Market Capitalisation and index eligibility.

Performance and Income

Betashares Nasdaq Next Gen 100 ETF (ASX:JNDQ) is up 12.38% over the past year, reflecting positive recent performance across its portfolio of next-generation Nasdaq-listed companies.

The ETF carries a dividend yield of 5.17% as on 1 September 2026. For a growth-oriented Equity fund, distributions can vary materially from year to year and may not represent a steady income stream.

JNDQ's overall return profile is likely to remain more heavily influenced by movements in underlying share prices than by distributions. Growth-oriented companies are typically valued on expectations for future earnings, making capital appreciation and valuation changes important drivers of total returns.

The fund's relatively short operating history since February 2024 also means there is limited evidence of how the strategy may perform through a complete market cycle.

What Could Drive It Next

The trajectory of artificial intelligence Investment and broader technology Capital Expenditure is likely to remain important for many companies within the portfolio.

US interest rates are another major factor. Growth companies whose valuations depend heavily on future Earnings can be particularly sensitive to changes in discount rates, with lower rates generally providing a more supportive backdrop and higher rates potentially pressuring valuations.

Corporate earnings will also be important. The ability of mid-cap growth businesses to convert expanding markets into sustainable Revenue and profit growth will influence investor sentiment.

Index reconstitution can further change the portfolio over time as companies move into the Nasdaq-100 or fall out of the Next Generation 100 universe.

Currency also matters because Betashares Nasdaq Next Gen 100 ETF (ASX:JNDQ) is unhedged. Movements in the Australian dollar against the US dollar can therefore amplify or reduce returns for local investors.

Risks to Watch

JNDQ carries the elevated Volatility associated with growth-oriented and technology-heavy equity exposure. Its focus on companies below the mega-cap tier can also produce sharper swings than more established large-cap benchmarks.

Valuation risk is particularly relevant if interest rates rise or enthusiasm around AI and other growth themes cools. Many growth businesses are priced on expectations for earnings well into the future, leaving them sensitive to changes in market sentiment.

Sector concentration, currency movements and the fund's relatively short track record are additional considerations.

Because the ETF is unhedged, a stronger Australian dollar can reduce returns from US holdings when translated back into Australian dollars.

Closing

Betashares Nasdaq Next Gen 100 ETF (ASX:JNDQ) offers a differentiated way to access US growth companies sitting just outside the Nasdaq-100.

Its 12.38% gain over the past year reflects positive momentum across the portfolio, while the 5.17% dividend yield as on 1 September 2026 adds an income component to the strategy.

The fund's longer-term story will depend on whether this next tier of companies can convert innovation and expanding markets into sustained earnings growth. At the same time, interest rates, valuations, currency movements and growth-stock volatility remain important considerations.