The Nasdaq is a tech-focused US stock exchange based in New York.
Of the 10 largest companies in the world, 6 of them are listed on the Nasdaq.1
You can now trade Nasdaq stocks with zero brokerage on some platforms.
How can I invest in the Nasdaq in Australia?
It's relatively simple to invest in the Nasdaq from Australia these days.
All you really need is an account with a share trading platform or broker that lets you trade the US stock market.
Once you have a trading account, there are actually a few different ways you can exposure to the Nasdaq exchange:
1. Buy a Nasdaq exchange-traded fund (ETF)
An ETF is a low-cost and convenient way to buy multiple Nasdaq stocks with a single investment.
When you buy an ETF, you're actually buying small amounts of all the stocks that make up the fund.
For example, you could invest in a Nasdaq-100 index fund, which tracks the performance of the 100 largest non-financial companies on the Nasdaq exchange.
ETFs are arguably the most effective way for most investors looking to get exposure to the Nasdaq.
What are the best Nasdaq ETFs in Australia?
Here are some of the best-performing ETFs that you can invest in from Australia.
All these ETFs track some or all of the stocks on the Nasdaq and are ranked based on their performance in 2024 (last updated 20 November 2024):
You can also trade the Nasdaq by buying contracts for difference (CFDs) on the futures market.
If you choose this approach, you do not own the index or individual shares, but instead are trading derivative products that are based on future prices.
It's important to understand that CFDs are the riskiest way to gain exposure to the Nasdaq.
In most instances, retail investors lose their capital when investing in CFDs, and this method should really only be used by experienced investors.
How to get started investing in the Nasdaq
Choose a broker or trading platform. Different platforms have different fees and account options, so it's important you pick the one that best suits your investing needs. You can compare a range of share trading platforms that let you invest in Nasdaq below.
Open a share trading account. Once you've selected which broker or platform you'd like to use, you'll need to open an account with a share trading platform or broker to start investing.
Deposit funds. All brokers will let you deposit in AUD, then will either convert your funds into USD or leave it as AUD. If your funds are left in AUD, it's likely you'll need to pay an FX fee on each trade, which can end up costing more overall.
Buy Nasdaq shares or funds. Once your account is set up and funded, you can begin buying and selling shares or index funds.
Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
Disclaimer: General information only. All forms of investments (and in particular, trading CFDs, commodities and forex) carry significant risk, including the risk of losing more than the invested amounts, market volatility and liquidity risks. Past performance is no guarantee of future results. Such activities are not suitable for most investors.
Trading CFDs and forex on leverage is high-risk and you could lose more than your initial investment. It may not be suitable for every investor. Refer to the provider’s PDS and consider the risks before trading.
What is the Nasdaq?
The National Association of Securities Dealers Automated Quotations (Nasdaq) is the second-largest stock exchange in the world, behind the New York Stock Exchange (NYSE).
It's very technology-heavy and the home to all of the FAANG stocks, and more recently, the "Magnificent Seven" stocks.
As long as you've got a trading account that lets you trade US stocks, you can invest in the Nasdaq from Australia.
The Nasdaq lists more than 3,300 stocks, but investors generally focus on the 100 largest non-financial stocks, which make up the Nasdaq-100 index.
Our expert says: Why invest in the Nasdaq?
"There's a pretty simple answer to this: the Nasdaq is home to some of the biggest and best-performing stocks in history. Think Apple, Microsoft, Tesla, Amazon and Nvidia."
The Nasdaq-100 is one of the best-performing stock indices in the world.
It's heavily weighted towards technology, consumer services and health care, which have seen it outperform the US benchmark index, the S&P 500, in 11 out of the last 15 years.2
Over the last 5 years, the Nasdaq-100 is up 149.28%, compared to 89.63% for the S&P 500. In 2024, the Nasdaq-100 is up 18.32% (as of 3 September 2024).
Both markets have outperformed Australia's ASX 200 over the last decade.
What's the difference between the Nasdaq-100 and S&P 500?
As we've already mentioned, the Nasdaq-100 is an index that tracks the performance of the 100 biggest non-financial stocks on the Nasdaq exchange. This primarily includes tech and healthcare stocks.
In comparison, the S&P 500 tracks the performance of the 500 largest companies on the Nasdaq and NYSE. While it features many of the same stocks as the Nasdaq-100, it also includes a lot of additional financial, banking, retail and consumer companies.
Both indices are weighted towards the largest stocks by market capitalisation.
How much does it cost to invest in Nasdaq?
Some brokers or trading platforms in Australia will charge you a commission on every trade, while others may only charge you an FX fee when you initially deposit AUD and then charge no commission on trades.
It's important that you understand the fee structure of each platform before using it to trade.
Certain brokers or platforms will suit different types of investors but may prove to be expensive if you're only investing small amounts.
If you're investing via an index fund, you should also look at what the fund's management fees are. In Australia, these are typically known as MER fees.
Which stocks are on Nasdaq?
There are over 3,300 stocks available on Nasdaq, including many of the largest companies in the world by market capitalisation. It's likely you'll have heard of many of them:
According to the NASDAQ Composite Index, which tracks all 2,500+ companies on the Nasdaq, the exchange is currently composed of the following industries3:
Technology (61.94%)
Consumer discretionary (16.62%)
Health care (6.49%)
Industrials (3.85%)
Financials (3.20%)
Telecommunications (2.37%)
Consumer staples (2.12%)
Basic materials (1.10%)
Utilities (0.80%)
Energy (0.77%)
Real estate (0.76%)
Nasdaq Composite
The Nasdaq Composite (IXIC) is a stock market index that tracks all common stocks and securities on the Nasdaq.
The Nasdaq-100 is an index that tracks a subset of the top 100 non-financial stocks on Nasdaq.
You can invest in these indices by buying an ETF that specifically tracks the performance of the stocks in the index.
What time does the Nasdaq open in Australia?
Nasdaq is open during regular US market hours, which are 9:30am to 4pm ET, Monday to Friday.
This means the Nasdaq major trading hours occur during the night and early morning in Australia.
However, it's now possible to get "24/5" access to the Nasdaq, which means you can trade it 24 hours a day, including the pre-market, after-hours and overnight trading sessions.
Important information: Powered by Finder.com.au. This information is general in nature and is no substitute for professional advice. It does not take into account your personal situation. This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for most investors. You do not own or have any interest in the underlying asset. Capital is at risk, including the risk of losing more than the amount originally put in, market volatility and liquidity risks. Past performance is no guarantee of future results. Tax on profits may apply. Consider the Product Disclosure Statement and Target Market Determination for the product on the provider's website. Consider your own circumstances, including whether you can afford to take the high risk of losing your money and possess the relevant experience and knowledge. We recommend that you obtain independent advice from a suitably licensed financial advisor before making any trades.
Tom Stelzer is a publisher and writer for Finder, covering investing and cryptocurrency.
He previously worked for Finder as a writer in Australia and the UK, covering things like personal finance, loans, investing, insurance as well as small business and business loans.
He has a Master of Media Arts and Production and Bachelor of Communications in Journalism from the University of Technology Sydney. See full bio
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