I always reflect upon the Nasdaq as the exchange of the future. The internet, Bio Technology, Media, Telecommunications and a number of technical innovations and inventions, you will all find them trading on the Nasdaq. But do not forget, you will also find some established “old-fashioned” companies within the Nasdaq.
For long term investors the Nasdaq may be the best option for trading. Mind, there is also a downside on this forward-looking exchange as investors already have invested much hope for the future in most Nasdaq traded companies.
Within the stock price of most Nasdaq traded companies you will find a large part of anticipated profits. Very high price-earnings ratios are no exception for companies that are active within the Nasdaq. Similarly it is no exception either that some Nasdaq companies cannot meet the high expectations or, even worse, go bankrupt.
For a major stock index the Nasdaq is pretty volatile and you will have to deal with that. Another way in putting this in words is that the Nasdaq often exaggerates the market mood. That is why entering a Nasdaq ETF after a period of long price increases would not be the best move.
Entering the market after a sharp correction may however be a very wise decision. As the Nasdaq is the index for the future I always have great confident that in the end it will always bounce back to great heights.
Lyxor NASDAQ-100 UCITS ETF
I use the Lyxor ETF as this Nasdaq ETF has a quotation at the Paris Stock Exchange and is traded in Euro’s.
I have deliberately chosen to trade the Nasdaq-100 and not the complete Nasdaq index which includes over 3.000 companies. The Nasdaq-100 is an index weighted on market capitalization and some other “minor” rules.
Within the Nasdaq-100 you will only find the 100 largest Nasdaq traded companies excluded companies active in the financial sector.
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Lyxor NASDAQ-100 UCITS ETF info:
ETF provider: Lyxor (Societe Generale)
The Lyxor NASDAQ-100 UCITS ETF has quotations on different exchanges and is known under several ticker symbols. As long as the ISIN number is identical you are dealing with the same ETF.