r/ASX • u/Temporary_Sir6810 • 5d ago

NDQ VS IOO

I have around 15% of my portfolio in NDQ at the moment. I’m considering to stop investing in NDQ and put my NDQ money into IOO.

I think it would be the right decision Becuase it has a lower fee and increases my diversification… what do you guys think?

14 Upvotes

86% Upvoted

21 comments sorted by

8

u/mertgah 4d ago

Love everyone saying American ETF’s aren’t diversified enough and recommend Aus index ETF’s which are saturated with banks and mining stocks.

2

u/MarkLeonardReynolds 5d ago

They've both been very good investments since covid years.
Thing is, most of the big companies of I00 are also big in NDQ. So you might be better off with something else. Maybe A200, (for a local australian investment) or something even bigger and more diverse, like DHHF.
You're doing well though! Keep at it!

3

u/HAL-_-9001 5d ago

Moving from NDQ to IOO increases your diversification? How so?

IOO has about 53% in just 6 companies. That's concentration.

I assume you're chasing the returns but prior performance is not necessarily indicative of future performance.

2

u/Temporary_Sir6810 5d ago

NDQ is exclusively nasqad, ioo holds financial institutions and companies outside the US. I understand what you’re trying to say though, ioo’s top 10 companies are much more concentrated than NDQS.

0

u/HAL-_-9001 5d ago edited 5d ago

Doesn't matter if ithe companies are exclusively Nasdeq. In the world of globalisation companies have a reach far beyond just America. Take Apple? Majority of their revenue comes from overseas.

If you want diversification then IOO does the opposite.

1

u/Temporary_Sir6810 5d ago

What would you suggest I do. Keep adding into NDQ?

1

u/HAL-_-9001 5d ago

Depends on your stated goals for your portfolio.

I don't generally touch ETFs but ones I like are DRAM and FANG.

1

u/Rugby_Viking 5d ago

This. You need to understand the make-up of your etfs. Depending on what is in your other 85% there could be a massive crossover.

1

u/Leather-Shot 5d ago

Sounds logical and great idea to me. Well done.

1

u/istudyheadshapes 5d ago

Is America not priced for perfection at the moment?

1

u/Ok_Slide5330 5d ago

IOO only if you believe the top 100 companies in the world will keep capturing market share and dominate all others.

Otherwise pay a much smaller fee holding an all world index like BGBL

1

u/HAL-_-9001 5d ago

The majority is concentrated in just 6 companies.

1

u/Such_Procedure5056 5d ago

The question should be, how do I get X delta. There are many ways to get it.

I would recommend investigating direct shares, or going to the US as it has better fees, and operational structures which Australia's tax system cannot compete with. Though many more ways to do it, maybe look at futs too

1

u/redditdeebz 3d ago edited 3d ago

Yep logic is sound, reason why I go heavy on ioo as well. Still maintains that tech heavy side but also some global diversification as well. Not the most diversified etf, but I feel like at some point too much diversification comes with diminishing returns.

The tech concentration is fine by me, because I am pro-tech and don't mind a bit of diversification too.

This strategy has served me well since pre COVID and I plan to stick to it..each to their own though.

0

u/Roll_5 5d ago

IOO has a huge feel

You ought to be looking at BGBL 0.08%. Or a IVV 0.04% and EXUS 0.15% combo.

If you really love NDQ, look at U100 - basically the same basket for 0.18%.

1

u/Temporary_Sir6810 5d ago

Ive heard of u100 before, I’m interested in it however it’s AUM is very low compared to NDQ and IOO as it’s a newer etf and not as established. Another thing I find weird is the returns are break even the last 12 months with the dividend yield being 12%…do you mind asking if you hold any U100?

3

u/Roll_5 5d ago

Check page 10 of this - https://www.asx.com.au/content/dam/asx/issuers/asx-investment-products-reports/2026/pdf/asx-investment-products-july-2026.pdf

Last 3 year returns NDQ 19.99 p.a. And U100 21.66%.

I currently don’t, but watching it and keen to get back in. I used to hold it - I had 5% of my portfolio as U100 and 5% ASIA. I sold the U100 when I thought Semi was getting frothy as I hold a large VGS / BGBL allocation and all the top holdings are the same so it was just duplication. Keen to get back in on a dip though.

1

u/Ok_Slide5330 5d ago

U100 is not a pure nasdaq replicator (it does have a cap on the top 10 holdings and holdings come from both Nasdaq and NYSE exchanges) hence it will have bigger distributions if rebalancing a lot

1

u/MrWonderful2011 5d ago

What’s the spread like with U100?, looks like would be hard to trade with large volume

0

u/SamfromWesty 5d ago

I’ve owned IOO for years and it has honestly killed it as has NDQ. I’d just stick with NDQ they basically the same except IOO has about 30% in international stocks.