Vanguard Nasdaq 100 Index ETF for Your Portfolio

The Vanguard Nasdaq 100 Index ETF is a popular choice for investors looking to gain exposure to the tech-heavy Nasdaq 100 index. It's one of the most widely traded ETFs in the US.

The ETF tracks the Nasdaq 100 Index, which is made up of the 100 largest non-financial stocks listed on the Nasdaq exchange. This gives investors a broad exposure to the tech and growth sectors.

With an expense ratio of 0.10%, the Vanguard Nasdaq 100 Index ETF is a low-cost option for investors. This means you can keep more of your hard-earned money in your portfolio.

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The Nasdaq 100 index tracks the 100 largest stocks listed on the Nasdaq stock exchange, mainly from sectors like hardware, software, telecommunications, retail, and biotechnology.

This index includes all the major US technology companies, but excludes companies from the energy, finance, and real estate sectors.

The Nasdaq 100 index is tracked by 13 ETFs, allowing investors to benefit from price gains and dividends of the constituents.

Here's a brief look at the index's tracking performance:

The estimated annual tracking difference for the Nasdaq 100 index is -0.32%.

The Nasdaq 100 index tracks the 100 largest stocks listed on the Nasdaq stock exchange.

These companies are mainly from sectors such as hardware and software, telecommunications, retail, and biotechnology, including all the major US technology companies.

Companies from the energy, finance, and real estate sectors are not included in the Nasdaq 100 at all.

The QQQ ETF, which tracks the Nasdaq 100, has been available in the USA since 1999 and is managed by Invesco.

There is also a European counterpart of this ETF with the ticker symbol eQQQ.

In Europe, several ETF providers track the Nasdaq 100, making it worth comparing between providers.

Currently, the Nasdaq 100 index is tracked by 13 ETFs.

Let's take a look at the Nasdaq 100 chart. As of November 30, 2024, the rolling 1-year tracking error is 0.03%. This means that the fund's performance over the past year has been very close to the Nasdaq 100's performance.

The rolling 1-year tracking difference is -0.41%, which indicates that the fund has underperformed the Nasdaq 100 by 0.41% over the past year.

Here's a breakdown of the fund's tracking difference over the past few years:

The estimated annual tracking difference is -0.32%, which suggests that the fund has consistently underperformed the Nasdaq 100 by a small margin over the past few years.

The Vanguard Nasdaq 100 Index ETF is designed to track the performance of the Nasdaq 100 Index. The index includes 100 of the largest non-financial companies listed on the Nasdaq market.

These companies are at the forefront of the new economy, driving innovation and growth in various sectors. The Nasdaq 100 Index is a benchmark for the largest and most influential companies in the tech and growth industries.

By investing in the Vanguard Nasdaq 100 Index ETF, you'll gain exposure to a diversified portfolio of these leading companies, with the potential for long-term growth and returns.

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Let's take a look at the holdings and allocation of this investment. Apple is the top holding with an allocation of 8.82%.

The investment is diversified across various sectors, with a significant presence in the technology industry. NVIDIA Corp. is the second-largest holding with an allocation of 8.36%.

Microsoft Corp. takes the third spot with an allocation of 7.76%, highlighting the importance of this tech giant in the portfolio. Broadcom Inc. is another notable holding, accounting for 5.22% of the investment.

Meta Platforms and Amazon.com, Inc. are also significant holdings, each making up around 5% of the investment. Tesla rounds out the top holdings with an allocation of 3.10%.

The investment also has a presence in the e-commerce and retail sectors, with Costco Wholesale and Alphabet, Inc. A/C both holding allocations of 2.57% and 2.48% respectively.

Here are the top 10 holdings, listed in order of their allocation:

The fund objective is to track the performance of the Nasdaq 100 Index before fees and expenses. This means you can expect the fund to mimic the movements of the 100 largest non-financial companies listed on the Nasdaq market.

The Nasdaq 100 Index includes many companies that are at the forefront of the new economy.

Nasdaq 100 ETFs are a cost-effective option for investors, with a total expense ratio (TER) ranging from 0.14% p.a. to 0.33% p.a.

Most actively managed funds charge significantly higher fees per year, making Nasdaq 100 ETFs a more affordable choice.

Management fees for these ETFs are relatively low, with some options costing as little as 0.14% p.a.

In comparison, other investment options may require you to complete additional paperwork, such as the W-8 BEN form, but Nasdaq 100 ETFs do not have this requirement.

This can save you time and effort in the long run, allowing you to focus on growing your investment portfolio.

The Vanguard Nasdaq 100 Index ETF is a popular investment option for those looking to tap into the tech-heavy Nasdaq 100 index.

It's comprised of the 100 largest non-financial stocks listed on the Nasdaq exchange, with a focus on the biggest and most influential companies in the tech sector.

The ETF has a low expense ratio of 0.10%, making it a cost-effective option for investors.

This low cost is a major selling point, as it allows investors to keep more of their returns.

The ETF tracks the Nasdaq 100 index, which is a market-capitalization-weighted index that's designed to give investors exposure to the largest and most liquid stocks in the Nasdaq exchange.

This means that the ETF will hold a significant portion of its assets in the largest Nasdaq 100 companies, such as Apple, Microsoft, and Amazon.

As of the last update, the top 5 holdings in the ETF account for over 30% of its total assets.

The ETF's diversification benefits are a major advantage, as it allows investors to spread their risk across a broad range of stocks.

This can be especially beneficial for investors who want to gain exposure to the tech sector without having to pick individual stocks.

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The Vanguard NASDAQ 100 Index ETF is a popular choice for investors looking to tap into the growth potential of the tech-heavy NASDAQ 100 index.

It tracks the NASDAQ-100 Index, which is a market-capitalization-weighted index of the 100 largest and most actively traded non-financial stocks listed on the NASDAQ stock exchange, with a market capitalization of $10 trillion or more.

The ETF has a low expense ratio of 0.10%, which is significantly lower than many other actively managed funds.

The NASDAQ 100 index is known for its high growth potential, with an average annual return of 12.3% over the past 20 years.

Investors can buy and sell shares of the ETF through most online brokerages, making it easily accessible to a wide range of investors.

The ETF has a large market capitalization of over $100 billion, making it a liquid and stable investment option.

The NASDAQ 100 index has a beta of 1.26, indicating that it tends to be more volatile than the broader market.

The ETF's holdings are diversified across a range of industries, including technology, consumer discretionary, and healthcare.

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