Just as we can invest in the top 50 companies of India through the Nifty 50 ETF, in the same way, we can invest in the top companies of America through the Nasdaq ETF.
If you want, you cannot invest in an American company from India. If you want to do so, you have to do a lot of formalities for that.
But if you do this work through Nasdaq ETF, then you can do it easily with any of your brokers.
Benefits of investing in Nasdaq ETF
We all know that America is the best economically established country in the world. If you look, America’s stock market always appears to be at the top.
Although sometimes corrections are seen in the American market, if we look overall, the American market is the fastest-growing market in the world.
Many countries appear to be growing suddenly but after some time that growth stops. But in the whole world, America’s market is the only market that keeps growing continuously.
So if you invest your money in Nasdaq ETF then it is a very profitable deal because you get very good returns on your investment.
How many types of Nasdaq ETFs are there in India and which companies are there in them?
If you want to invest in Nasdaq of America from India, then there are two options available. Firstly you can invest in Nasdaq Hundred ETF and secondly, you can invest in Nasdaq Q 50 ETF.
Nasdaq 100 ETF
This ETF contains the 100 best companies in America. These 100 companies come from every sector like IT, Infra, Pharmaceutical, Finance, etc.
The names of all these companies are as follows with their symbol and weight in Nasdaq 100.
NASDAQ Q 50 ETF
This ETF contains the 50 best companies in America which, like the Nasdaq 100, come from every sector like infrastructure, pharmaceutical, finance, etc.
How to invest in Nasdaq ETF?
You can invest in this ETF very easily. To invest in this you just need to have a demat account.
In that demat account, you type the Nasdaq ETF and the options of both Nasdaq 100 ETF and Nasdaq Q 50 ETF will appear in front of you.
Various companies invest in these ETFs, but you should choose a company that has a high volume and market cap so that when you sell these ETFs, you can easily find a buyer.
Is this ETF volatile?
If we talk about this ETF, we see a lot of fluctuations in its price. This ETF is volatile like PSU Bank ETF.
The main reason for this is that the American market is very volatile, but along with being volatile, it is also a growing market.
This is the reason that whether it is Nasdaq 100 or Nasdaq Q 50, both are very volatile and you can make good profits in both.
Long-Term Investing in Nasdaq PDF
If we look at the State Index, it has given us returns of 19.92% in the last 6 months and 47.93% in 1 year.
These returns have been excellent and there is no doubt that this is one of the best ETFs for long-term investment.
Is swing trading possible in Nasdaq ETF?
As we talked about earlier, this article that this is a very volatile ETF. So if you can find the investment opportunity in it at the right time and can book your profit at the right time, then it is a great option for swing trading.
Does Nasdaq ETF Pay Dividends?
This is an excellent ETF for investment but the question arises does this ETF give you dividends like other shares and some liquid ETFs give?
Nasdaq 100 and Nasdaq Q 50 ETFs do not give you dividends. You do not get any dividend from any company with which you invest in Nasdaq ETF in India.
Conclusion
We discussed what is Nasdaq ETF, how many types it has, and which companies contribute to it.
Note– We advise you to analyze it thoroughly before investing in any Nasdaq ETF. If you do a proper analysis of the stock market, only then do you get a full profit and you avoid any loss.
