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

Smiling woman with her head and arm on a desk holding $100 notes out, symbolising dividends.
ETFs

Passive income made simple: 3 ASX ETFs that pay you to hold them

For many investors, the dream is simple: earn consistent income without having to constantly monitor the market. One way you…

Read more »

Five young people sit in a row having fun and interacting with their mobile phones.
ETFs

5 excellent ASX ETFs to buy with $10,000

Let's see what these top funds offer Aussie investors.

Read more »

Cubes placed on a Notebook with the letters "ETF" which stands for "Exchange traded funds".
ETFs

2 compelling ASX ETFs I'd buy for income and growth

I think both of these ASX ETFs have a lot to offer.

Read more »

A businessman holding a world globe in one hand, representing global investment.
ETFs

The best ASX ETFs to buy for international diversification in FY 2026

These funds offer exposure to many of the best stocks in the world.

Read more »

ETF written in yellow with a yellow underline and the full word spelt out in white underneath.
ETFs

Why these 3 ASX ETFs could be strong buys

Let's see why these funds could be among the best to buy right now.

Read more »

ETF with different images around it on top of a tablet.
ETFs

Best performing iShares ASX ETFs in the last year

These funds have brought strong returns in the last 12 months

Read more »

ETF spelt out with a rising green arrow.
ETFs

Top 6 ETFs holding ASX shares that produced the best returns in FY25

Of the 425 exchange-traded funds listed on the ASX and CBOE, these were the best performers of FY25.

Read more »

Exchange-traded fund spelt out with ETF in red and a person pointing their finger at it.
ETFs

The best ASX ETFs to buy and hold with $20,000

Let's see what sets these funds apart from the rest.

Read more »