Discover the ASX Share Poised for Gains Amid US Tech Pullback
Following a notable pullback in the US tech equities, one particular ASX share emerges as a compelling buy, hinting at a diversified approach that stands to gain from the volatility. Here’s why the Betashares NASDAQ 100 ETF (ASX: NDQ) should be on your investment radar now.
Market Context: US Tech Stocks Take a Hit
The Nasdaq Composite Index closed down 0.8%, reflecting hesitations in the market after inflation news. The ripple effect was evident as the All Ordinaries Index on the ASX also retracted by 0.6%.
Key Attributes of the Betashares NASDAQ 100 ETF
- This ETF is designed to follow the Nasdaq 100’s performance, featuring top tech leaders as its primary holdings.
- Notable companies in the ETF portfolio include Microsoft, Apple, Nvidia, Amazon, and Meta Platforms, signaling robust growth potential.
- Despite broader market challenges, this ETF has presented a 12% uptick year-to-date, suggesting resilience and potential for continued growth.
Why Bet on Tech Now?
Industry giants in the ETF are actively participating in the AI revolution, promising to spearhead breakthroughs that could propel the sector forward. The underlying resilience of the US economy, even amidst inflation and interest rate fluctuations, also bolsters confidence in this investment.
“Risk assets should stabilize and resume their upward trend,” as suggested by David Zervos of Jefferies, indicating a positive forecast for the ETF constituents and, by extension, for NDQ investors.
Final Insights
Considering the economic tenacity and technological advancements, investors might find the current market scenario an opportune moment to invest in the Betashares NASDAQ 100 ETF, positioning themselves strategically as the tech landscape evolves.