Highlights

  • The fund is still up 10.14 per cent this year. But a chip sell-off and worries about debt-funded AI.
  • NDQ tracks the Nasdaq-100 index, which holds 100 of the largest non-financial companies on the Nasdaq exchange. It listed.
  • Technology dominates the portfolio. Information technology made up 60.5 per cent of NDQ at 30 September, Betashares data show..
  • The top 10 holdings were about 47 per cent of the fund. Nvidia led at 8.4 per cent, followed.

The Betashares Nasdaq 100 ETF (ASX:NDQ) has been one of the big winners of the AI boom. The past week showed the other side of that bet. The units have lost 4.24 per cent over the past week. On 19 October they fell 1.77 per cent to A$61.68.

The fund is still up 10.14 per cent this year. But a chip sell-off and worries about debt-funded AI spending have cooled a rally that set records this month.

What NDQ tracks

NDQ tracks the Nasdaq-100 index, which holds 100 of the largest non-financial companies on the Nasdaq exchange. It listed in May 2015 and held 101 stocks at 30 September. It manages US$6.51 billion.

The fund is unhedged; Betashares sells a hedged version, HNDQ.

A concentrated bet on technology

Technology dominates the portfolio. Information technology made up 60.5 per cent of NDQ at 30 September, Betashares data show. Communication services added 14.7 per cent and financials just 0.2 per cent.

The top 10 holdings were about 47 per cent of the fund. Nvidia led at 8.4 per cent, followed by Apple at 7.4 per cent and Microsoft at 5.8 per cent. Micron, at 5.0 per cent, and AMD, at 4.2 per cent, give the fund a heavy tilt towards semiconductors.

That tilt has paid off. Micron's shares had risen 256 per cent this year by early September,. The Philadelphia semiconductor index was still up 57 per cent for 2026 after an October slide,.

Why NDQ fell 4.24 per cent in a week

Three forces collided. First, US consumer prices rose 3.7 per cent in the year to September, above forecasts,. The 10-year Treasury yield jumped to 5.33 per cent after the data,.

Second, doubts grew over how AI infrastructure is funded. Shares in CoreWeave, a data-centre operator carrying about US$50 billion of debt, fell about 25 per cent over the week. Goldman Sachs said hedge funds were selling AI stocks at the second-fastest pace in over a year.

Third, chipmakers sold off. On Friday the Philadelphia semiconductor index fell 3.83 per cent, with all 30 members lower,. Micron dropped 5.63 per cent and AMD 5.95 per cent.

Brokers turned cautious too. Deutsche Bank and RBC both cut their tech sector recommendations,.

The Nasdaq Composite lost 4.5 per cent in the week to 16 October, ending a four-week winning run. NDQ's fall on 19 October tracked that Friday sell-off.

2026: oil shock, AI earnings and the Fed

The year opened with a scare. After the Iran war began on 28 February, the Nasdaq 100 fell into correction territory in late March,. Higher oil prices lifted inflation fears and Treasury yields.

AI earnings powered the recovery. Nvidia's revenue rose 106 per cent to US$96.2 billion in the quarter to July. The Nasdaq 100 reached a record in early October, Nasdaq said.

Policy then turned against growth stocks. The Federal Reserve lifted its target range to 3.75 to 4 per cent in September, its first increase since 2023. An Australian dollar up about 7 per cent over the year also trimmed local returns.

A long record of outperformance

NDQ's longer-term numbers stand out. Its price is up 87.25 per cent over five years and 464.84 per cent over 10 years. Over the same 10 years, BlackRock's S&P 500 fund IVV rose 294.40 per cent.

Including distributions, NDQ's net asset value rose 82.80 per cent over three years.

Metric

Value

Price (A$)

61.68

Daily change

−1.77%

Assets under management

US$6.51 billion

Management fee (issuer)

0.48% (management fees and costs)

1-week return

−4.24%

1-month return

+2.80%

3-month return

+3.77%

6-month return

+12.47%

YTD return

+10.14%

1-year return

+10.02%

5-year return

+87.25%

10-year return

+464.84%

3-year NAV total return

+82.80%

Relative volume

1.26