Why is the BetaShares NASDAQ 100 ETF (NDQ) having such a stellar run today?

This US tech share ETF is on fire today. Here's why…

a man sits at his desk wearing a business shirt and tie and has a hearty laugh at something on his mobile phone.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

ASX shares are having a top day of gains so far this Thursday. At present, the S&P/ASX 200 Index (ASX: XJO) has risen by a healthy 0.85% all the way up to just under 7,350 points. But those gains look rather small in comparison to what's happening with the BetaShares NASDAQ 100 ETF (ASX: NDQ).

This index-tracking exchange-traded fund (ETF) is rocketing in value today. BetaShares NASDAQ 100 ETF units are currently enjoying a 2.78% surge in value, lifting the fund up to $27.38 per unit.

So what's behind these pleasing rises this Thursday?

Why is the BetaShares NASDAQ 100 ETF surging in value?

Well, the BetaShares NASDAQ ETF is an index fund that tracks the NASDAQ-100 (NASDAQ: NDX) over in the United States. The NASDAQ 100 is an index that tracks the 100 largest shares on the NASDAQ stock exchange, excluding certain financial companies.

The NASDAQ is well known for being the home of most of the top tech shares on the US markets. Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), Amazon.com Inc (NASDAQ: AMZN), Netflix Inc (NASDAQ: NFLX), Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) and Tesla Inc (NASDAQ: TSLA) all call the NASDAQ home. As you can tell by their ticker codes.

So as goes the performance of the NASDAQ 100 Index, so goes the BetaShares NASDAQ 100 ETF.

And lo and behold, the NASDAQ 100 had a stellar night last night in US trading. The iIndex finished the session up a rather extraordinary 4.58% to back over 12,000 points.

That's a two-and-a-half-month high. These gains were spurred by the likes of Apple rising close to 5%, Alphabet soaring more than 6%, and Tesla rocketing an incredible 7.67%.

So the BetaShares NASDAQ ETF was always going to have a cracking day. Why isn't it rising by 4.58% like its index, though?

Well, the BetaShares NASDAQ ETF houses assets priced in US dollars. But it is quoted in Australian dollars. Thus, currency movements affect its value, alongside the value of its underlying shares.

And while the US markets rocketed overnight, so too did the Australian dollar. A higher Aussie dollar means that US shares become less valuable in Australian dollar terms. So hence the more muted gains we have seen with the ETF.

Nevertheless, there's no doubt investors are very happy with this ETF today.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon.com, Apple, Microsoft, Netflix and Tesla. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon.com, Apple, BetaShares Nasdaq 100 ETF, Microsoft, Netflix, and Tesla. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon.com, Apple, and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ETFs

The letters ETF sit in orange on top of a chart with a magnifying glass held over the top of it
ETFs

3 excellent ASX ETFs to buy for 2025

These ETFs are highly rated by analysts. Here's what you need to know about them.

Read more »

Four young friends on a road trip smile and laugh as they sit on roof of their car.
ETFs

4 popular ASX tech ETFs smashing new all-time highs today

Do you own any of these lucky ETFs?

Read more »

A woman looks internationally at a digital interface of the world.
ETFs

Looking for diversification through ASX ETFs? I'd buy these 2

These ETFs can provide exposure to great tech companies across the globe.

Read more »

Happy man holding Australian dollar notes, representing dividends.
ETFs

Invest $2,000 into these 5 ASX ETFs

Looking for quality options for your money? Check out these ETFS.

Read more »

ETF written in white with a blackish background.
ETFs

Why I think every retiree should own some ASX ETFs

ETFs could be a good place to put nest egg capital.

Read more »

The letters ETF with a man pointing at it.
ETFs

4 market-beating ASX ETFs to buy

These funds have beaten the market. Here's what they offer investors.

Read more »

A man points at a paper as he holds an alarm clock.
ETFs

3 ASX ETFs to buy and hold until 2050

These funds could be great long term options for investors looking to grow their wealth.

Read more »

Woman on a swing at a beach, symbolising passive income.
ETFs

One high-yield ASX dividend ETF to buy to generate passive income

This looks like an appealing, diversified option for dividends.

Read more »