One interesting historical fact about the Nasdaq that could put this ASX ETF in the buy zone right now

If you think a Nasdaq ETF can't go higher than 39% in a year, think again.

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The NASDAQ-100 (INDEXNASDAQ: NDX) Index has become a very popular index to invest in over the past few years. Thanks to its tech-heavy composition, and stellar performance history, ASX investors love chasing the NASDAQ.

So it's no wonder the ASX's sole NASDAQ exchange-traded fund (ETF) – the BetaShares NASDAQ 100 ETF (ASX: NDQ) – is one of the most popular international index funds here in Australia.

This is a fund that counts the likes of Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), Amazon.com Inc (NASDAQ: AMZN), Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL), NVIDIA Corporation (NASDAQ: NVDA), and Tesla Inc (NASDAQ: TSLA) as its top holdings. What's not to like?

The NDQ ETF has already had an incredible year in 2023 to date. As it stands today, BetaShares NASDAQ 100 units are going for $34.51 each. That's a good 39% or so above the $24.15 this ETF started the year at.

Yep, ASX NASDAQ investors have already gotten a near-40% return on this ETF in just six months. Check it out below:

Created with Highcharts 11.4.3BetaShares Nasdaq 100 ETF PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

Now, the more wary investors out there might say that a gain of this magnitude, especially from an index fund, means that investors should probably pump the brakes, or even take some profits off the table.

After all, how often does an investment keep growing after a 39% rise in six months?

Well, as it turns out, there is plenty of evidence to show it can.

Why the NASDAQ (and the NDQ ETF) could have further to climb

Our Fool colleagues over in the US recently ran the numbers on the NASDAQ Index, and they turned out some interesting (and potentially lucrative) data. Here's what they found:

Since 1986, the Nasdaq-100 has only declined in consecutive years on one occasion: during the dot-com tech bust from 2000 to 2002. Every other time the index suffered an annual loss (1990, 2008, and 2018), it came roaring back the very next year.

But here's the kicker: Its average return in those bounce-back years was 52%! Therefore, since the index is only up 38% so far in 2023, there's room for further gains ahead.

As it turns out, last year was a brutal year for the NASDAQ 100, and thus for the BetaShares NASDAQ 100 ETF. 2022 saw NDQ units lose a nasty 30.67%.

So, unless we have a history-defying event this year (which is entirely possible of course), it should continue to be a great year to hold this ASX NASDAQ ETF.

John Mackey, former 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, 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, Nvidia, and Tesla. 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 Nvidia. 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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