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Now the S&P/ASX 200 Index (ASX:XJO) is having an upside down day so far this Tuesday. After initially entering green territory this morning, the ASX 200 has lashed around and is currently fairly flat, having lost just 0.03% for the day as it stands.
But an ASX exchange-traded fund (ETF) is faring far worse. That would be the Betashare’s Nasdaq 100 ETF (ASX:NDQ).
Although the ASX 200 hasn’t advanced far today, NDQ units are currently down an ugly 0.93% to $26.72. So what’s up with this ASX ETF?
Why is the BetaShares NDQ ETF struggling today?
Well, to answer that, let’s go through what this ETF actually invests in. NDQ is an index fund. But one that only covers the US NASDAQ-100 (INDEXNASDAQ:NDX) Index. The Nasdaq 100 is a US-only index that includes most of the major US technology stocks. You will find famous names like apple inc (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT) and Amazon.com Inc (NASDAQ: AMZN) on this index. Some other notable Nasdaq names are the Google owner alphabet inc (NASDAQ:GOOGL) (NASDAQ:GOOGL), Netflix Inc (NASDAQ:NFLX) and Tesla Inc (NASDAQ:TSLA).
NDQ is an index ETF that tracks the Nasdaq 100. Thus, Nasdaq’s largest holdings — Apple, Microsoft, and Amazon — are also NDQ’s largest portfolio holdings.
Last night, the Nasdaq 100 in the US markets was actually up 1.68%, as were Apple and Microsoft stocks. In after-hours trading, however, it was a very different story. Many US tech stocks, including the three above, tumbled during after-hours trading. This appeared to have been sparked by the social media company and owner of Snapchat. snap inc (NYSE: SNAP) and gave its investors a rather bearish update that we discussed at length today.
As it stands, futures markets are pointing to some significant sell-offs for the Nasdaq 100 in this Tuesday’s trading session. This is probably why the BetaShares Nasdaq 100 ETF is struggling in the stock market today.
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