BetaShares’s Nasdaq 100 ETF has passed $1 billion in assets under management.
The firm said the ETF, which was launched in 2015, had gained $500m since the start of the year driven by inflows and market performance.
It had been particularly helped by the dominance of technology in US markets, with companies such as Amazon and Facebook boosting the US market amid the COVID-19 pandemic. The US market was one of the only global stockmarkets to report positive returns this year amid a market downturn.
However, more recently there had been a pullback in the performance of technology stocks with the Nasdaq falling around 12% from 2-23 September.
BetaShares chief executive, Alex Vynokur, said: “Technology has been a key driver of growth in global stockmarkets for some time now, a trend that has been reinforced as the world increasingly moves online in response to the COVID-19 pandemic.
“The recent pullback in global technology stocks needs to be seen in the context of the sector’s overall performance this year. The reality is that stocks like Apple, Amazon and Netflix have all enjoyed significant share price rises. The drivers of these rises remain intact, and so the growth story of these stocks remains compelling – however the rate of increase in market valuations we have seen in the last six months clearly can’t be sustained indefinitely.”
According to FE Analytics, within the Australian Core Strategies universe, the BetaShares Nasdaq 100 ETF had returned 43% versus returns by the North America sector of 5.9% over one year to 31 August.
Performance of BetaShares Nasdaq 100 ETF versus North America sector over one year to 31 August
