Nasdaq 100 Index: 2025 Guide for Australian Investors

The Nasdaq 100 Index has become a global barometer for innovation, technology, and growth. As 2025 unfolds, more Australians are considering exposure to the Nasdaq 100—either directly or through ETFs—as a way to tap into the world’s most dynamic companies. But what exactly is the Nasdaq 100, how can Australians access it, and what’s changed in the investment landscape this year? Let’s unpack the essentials and highlight what matters for local portfolios.

Understanding the Nasdaq 100: The Engine Room of Global Growth

The Nasdaq 100 Index tracks the performance of the 100 largest non-financial companies listed on the Nasdaq Stock Market in the US. While it’s often associated with tech titans like Apple, Microsoft, and Alphabet, the index also features leaders in sectors like consumer services, healthcare, and industrials.

• Tech-Heavy, but Diversifying: As of 2025, technology still dominates, making up over 50% of the index. But recent additions in AI, healthcare, and renewable energy show growing sector diversity.
• Global Impact: The index’s companies drive trends that ripple across economies—from cloud computing and AI to electric vehicles and biotech.
• Performance: Historically, the Nasdaq 100 has outperformed broader indices like the S&P 500, though with higher volatility.

For Australians, the Nasdaq 100 offers a window into global growth and innovation—often beyond what’s available on the ASX.

How Australians Can Invest in the Nasdaq 100 in 2025

Thanks to expanding access and new investment vehicles, Australians have more options than ever to tap into the Nasdaq 100. The most popular avenues include:

• ASX-Listed ETFs: Funds like Betashares NDQ and iShares’ NDQ ETF track the Nasdaq 100, offering exposure in AUD and the convenience of local trading.
• US-Listed ETFs: Australian investors with international brokerage accounts can buy ETFs like Invesco QQQ directly in the US market, often at lower fees but with FX considerations.
• Managed Funds and Superannuation: Some diversified managed funds and SMSFs are increasing their allocation to global equities, including the Nasdaq 100, in response to demand for growth assets.

In 2025, the competition among ETF providers has led to lower management fees and more granular options (such as ESG-screened or equal-weight Nasdaq 100 ETFs). This means investors can now better align their choices with personal values and cost preferences.

Key Trends and 2025 Policy Updates Affecting Nasdaq 100 Exposure

Several developments are shaping how Australians interact with the Nasdaq 100 in 2025:

• Taxation on International Investments: The ATO’s updated 2025 guidance clarifies reporting obligations for overseas ETFs and capital gains. Investors must ensure compliance, especially with the growing popularity of US-listed products.
• Currency Hedging: With the AUD fluctuating against the USD, some ETFs now offer hedged and unhedged versions. This allows Australians to manage currency risk based on their outlook and appetite for volatility.
• Superannuation Rules: The 2025 superannuation changes expand the range of permissible international investments for SMSFs, making it easier for self-directed super investors to include Nasdaq 100 exposure.
• Regulatory Scrutiny: ASIC’s increased oversight on ETF marketing and risk disclosures in 2025 means providers must be clearer about the unique risks of tech-heavy indices, such as concentration and valuation swings.

These changes make it even more important to understand the mechanics—and the risks—before diving in. For example, tech stocks can be sensitive to interest rate shifts, regulatory changes, and global supply chain issues. In 2025, with central banks still navigating post-pandemic inflation and AI-driven disruption, volatility remains a key theme.

Real-World Example: An Australian Portfolio with Nasdaq 100 Exposure

Consider Jane, a 38-year-old Sydney-based investor. In 2022, she allocated 10% of her portfolio to the Betashares NDQ ETF. By early 2025, her Nasdaq 100 holding had outperformed her ASX shares, but she noticed more dramatic swings during tech sector sell-offs. In response, she split her allocation between a hedged and unhedged version of the ETF to balance out currency risk, and reviewed her overall risk tolerance in light of the index’s strong gains and recent volatility.

Jane’s story highlights the importance of diversification and understanding the unique dynamics of the Nasdaq 100. While it can supercharge returns, it requires a willingness to ride out the bumps and an active approach to portfolio review—especially as new sectors and companies join the index each year.

Conclusion: Is Nasdaq 100 Right for You?

The Nasdaq 100 Index is more accessible than ever for Australian investors, and its 2025 evolution reflects the ongoing global shift toward tech and innovation. Whether you’re seeking long-term growth, sector diversification, or a hedge against local market cycles, the Nasdaq 100 deserves a spot on your radar. But as with any high-growth asset, it pays to understand the risks, stay informed about policy changes, and regularly review your strategy.