The ASX-listed NDQ ETF exposes investors to US heavyweight tech stocks, from Apple to Nvidia and Microsoft – a sector firmly in the “naughty corner” over recent weeks. This is a major ETF with a current market cap of over $5.7bn, larger than Pilbara Minerals (PLS). The dynamics of the ETF are easy to understand:
- The fund is not leveraged, is not currency hedged (you are effectively holding $US), and incurs costs of 0.48% pa.
Catching the proverbial falling knife can be scary and often a poor strategy. Still, when quality companies are being sold off in a panic, we would rather draw a line in the sand and identify where the risk/reward has swung back in favour of accumulation, which looks set to be the case toward US tech stocks in the coming sessions.
- We like accumulating the NDQ into weakness with 45 and 41 initial buy levels.
MM is bullish on the NDQ ETF between 40 and 45
Add To Hit List
