3 popular ASX ETFs smashing record highs today

Do you own any of these lucky ETFs?

| More on:
ETF on white blocks with a rising arrow on top of coin piles.

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

It's been an absolutely dire start to the trading week for the S&P/ASX 200 Index (ASX: XJO) and most ASX 200 shares this Monday. At the time of writing, the ASX 200 has tanked by a horrid 1.3%, pulling the index down to under 7,760 points. But strangely, that hasn't stopped no less than three ASX exchange-traded funds (ETFs) smashing out new record highs today.

Yep, we've seen three popular ASX ETFs spring to new records this Monday.

First up is the BetaShares Nasdaq 100 ETF (ASX: NDQ). NDQ units are currently up a robust 1.11% at $43.80 each but climbed as high as $43.81 earlier this morning – a new record high.

Then we have the iShares S&P 500 ETF (ASX: IVV). This index fund is presently enjoying a lift of 1.01% up to $54.16 a unit. That's right on this ETF's new record high.

Finally, let's talk about the VanEck MSCI International Quality ETF (ASX: QUAL). QUAL units are trading at $56.61 at the time of writing, up a compelling 0.95% for the day thus far. But those units climbed as high as $57 each earlier this morning, which, you guessed it, is a new record high for QUAL.

So how on earth are these three ASX ETFs hitting new record highs today while the ASX 200 is having such a horror show of a Monday?

How are these three ASX ETFs hitting new record highs today?

This might seem like a very strange occurrence. But there is a simple explanation for these three ETFs' new highs today. All three are largely uncorrelated to the ASX 200 Index and the performance of ASX shares.

The BetaShares Nasdaq 100 ETF is an index fund that tracks the largest 100 non-financial US shares that are listed on the NASDAQ stock exchange. The NASDAQ is one of the two major stock exchanges over in the United States. This exchange is famous for housing the vast majority of America's tech giants. That's everything from Apple, Amazon and Microsoft to PayPal, Netflix and NVIDIA.

Last Friday night (our time), the US markets exploded higher, in stark contrast to what we're seeing on the ASX today. The NASDAQ-100 Index (NASDAQ: NDX), which the NDQ ETF tracks, rose 0.39% to 19,074.67 points, just a whisker off its all-time high of 19,113.88 points.

As such, it's not too shocking to see an ASX-listed index fund that tracks the NASDAQ respond so enthusiastically to this Friday night move higher on the ASX today.

Different ASX ETF, same holdings

It's a similar story with the iShares S&P 500 ETF. This index fund tracks the S&P 500 Index (SP: .INX). This index is composed of the largest 500 companies on the US markets, drawn from both the NASDAQ and the New York Stock Exchange.

Last Friday night saw the S&P 500 rise 0.26% up to 5,360.79 points. Again, that's only a hair's breadth away from the S&P 500's all-time record of 5,375.08 points.

So again, there's no shock to see an ASX-listed, S&P 500-tracking index fund leap higher today.

The VanEck International Quality ETF is a bit of a different case though. This ETF isn't really an index fund; rather, it is an actively managed ETF that gives investors access to a portfolio of stocks chosen for their fundamental characteristics.

However, this ETF is still very much an international investment. More than 75% of its holdings are currently US shares. Further, its top holdings are the same names that you'll find at the top of both NDQ and IVV's portfolios: Nvidia, Apple, Microsoft and Meta Platforms.

Foolish takeaway

So once more, given the performance of the US markets last Friday night, there's not much mystery as to why this ETF is performing so well today.

The experience of these three ASX ETFs this Monday just goes to show how having a diversified portfolio of shares that includes holdings from outside the ASX can help investors insulate their investments from the woes of a single stock market.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Motley Fool contributor Sebastian Bowen has positions in Amazon, Apple, Meta Platforms, and Microsoft. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, BetaShares Nasdaq 100 ETF, Meta Platforms, Microsoft, Netflix, Nvidia, PayPal, and iShares S&P 500 ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft, short January 2026 $405 calls on Microsoft, and short June 2024 $67.50 calls on PayPal. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Amazon, Apple, Meta Platforms, Microsoft, Netflix, Nvidia, PayPal, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ETFs

ETF spelt out with a piggybank.
ETFs

Which ASX ETF delivered better returns in FY25: VAS, VGS, or VTS?

Investors in these popular Vanguard ETFs enjoyed solid returns last financial year.

Read more »

Happy man holding Australian dollar notes, representing dividends.
ETFs

How $1,000 a month in this ASX ETF could turn into $500,000

This could be a simple way to build serious wealth in the share market.

Read more »

Woman on her laptop thinking to herself.
Index investing

Here's my big problem with the ASX's Vanguard International Shares ETF (VGS)

This popular ETF has one major caveat that investors should know about.

Read more »

Woman relaxing on her phone on her couch, symbolising passive income.
Dividend Investing

Own IVV ETF or other iShares ASX ETFs? It's dividend payday for you!

Thinking TGIF? There's a better reason to celebrate. It's dividend payday for iShares investors!

Read more »

Man holding out Australian dollar notes, symbolising dividends.
ETFs

5 excellent ASX ETFs to buy with $2,500 today

Let's see why these funds could be worth a closer look.

Read more »

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

How did the Vanguard Australian Shares Index ETF go in FY25?

Investors in Australia's biggest ASX ETF enjoyed solid returns last financial year.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
ETFs

Top ASX ETFs to supercharge your portfolio in FY26

Let's see what could make these funds top picks for Aussie investors in the new financial year.

Read more »

A woman on a green background points a finger at graphic images of molecules, a rocket, light bulbs and scientific symbols as she smiles.
ETFs

Is there a Magnificent 7 ASX ETF?

Nvidia just became the world's first US$4 trillion company.

Read more »