Sunk $5,000 into the Betashares Nasdaq 100 ETF (NDQ) in 2020? Here's how much passive income your investment has provided

Has the ETF been a dividend winner over the last three years?

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Key points

  • Units in the Betashares Nasdaq 100 ETF have gained 32% since April 2020
  • That sees it having trailed the market over the last three years
  • However, each unit in the ETF has also provided $2.723 of dividend income in that time

The Betashares Nasdaq 100 ETF (ASX: NDQ) has underperformed the broader market over the last three years.

The exchange-traded fund (ETF), which aims to mirror the NASDAQ-100 Index (NASDAQ: NDX), has surged 32% in that time.

An investor sinking $5,000 into the NDQ ETF in April 2020 likely would have walked away with 218 units, paying $22.86 apiece.

Today, that parcel would be worth $6,572.70. The Betashares Nasdaq ETF last traded at $30.15.

Created with Highcharts 11.4.3Betashares Nasdaq 100 ETF - Currency Hedged PriceZoom1M3M6MYTD1Y5Y10YALL24 Apr 202028 Apr 2023Zoom ▾Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23202120212022202220232023www.fool.com.au

Unfortunately, that leaves the NDQ ETF having underperformed the All Ordinaries Index (ASX: XAO). The benchmark index has risen 41% over the last three years.

But what about the dividends Betashares Nasdaq ETF investors have received in that time? Let's take a look.

All dividends paid to those invested in NDQ ETF since 2020

Here are all the dividends paid to those invested in the NDQ ETF over the last three years, rounded to the nearest tenth of a cent:

NDQ dividends' pay dateDividend value
January 20233.1 cents
July 202284.2 cents
July 2021$1.175
January 20212.6 cents
July 202064.9 cents
 Total:$2.723

As the chart shows, each Betashares Nasdaq 100 ETF unit has brought in $2.723 of passive income over the last three years. That means our figurative parcel could have provided $593.614 in dividends.

Considering that, and the ETF's capital gains, an investor might have boasted a return on investment (ROI) of 44% ­­

Not to mention the compounding benefits an ASX investor might have realised had they reinvested their passive income, using it to buy more NDQ units.

However, unlike many ASX-listed shares and funds, dividends offered by the ETF don't come with franking credits.

Considering its two most recent dividends, the Betashares Nasdaq 100 ETF currently trades with a respectable (but not quite mind-blowing) 2.89% dividend yield.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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