An ETF is a security that tracks an index, sector, or asset class and is traded on an exchange.

How does (ASX:NDQ) gain technology exposure?

It follows the Nasdaq 100 Index, which is heavily weighted towards large technology companies.

What is unique about (ASX:ETHI)?

It focuses on global companies identified as leaders in sustainability, excluding certain industries.

S&P/ASX 200 ETFs for Diversified Market Exposure

3 min read | August 13, 2025 04:07 PM AEST | By Team Kalkine Media

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S&P/ASX 200 ETFs for Diversified Market Exposure — Image source: Shutterstock

BetaShares Nasdaq 100 ETF (ASX:NDQ)

This fund is structured to reflect the performance of the Nasdaq 100 Index, providing access to some of the largest non-financial companies listed on the Nasdaq Stock Market. It includes sectors such as technology, communications, and consumer discretionary industries. The composition of this ETF offers international exposure while being traded locally on the Australian Securities Exchange.

The fund’s structure allows for simplified access to a range of global brands through a single ASX-listed security. It can be incorporated alongside domestic-focused funds to create a more globally balanced portfolio composition.

BetaShares Global Sustainability Leaders ETF (ASX:ETHI)

This ETF tracks a global index comprising large capitalisation companies identified as climate leaders. It excludes sectors such as fossil fuels, tobacco, and certain environmental impact industries. Its methodology focuses on sustainability themes, aligning with environmentally conscious investment principles.

By focusing on global leaders in sustainability, this ETF provides an additional layer of diversification across international markets, while maintaining specific environmental and social governance standards in its selection criteria.

Combining Sector and Thematic Exposure

Pairing a global technology-focused ETF like (ASX:NDQ) with a sustainability-themed ETF such as (ASX:ETHI) can create a balanced exposure across growth sectors and ethical considerations. This blend offers geographic diversification and thematic variety while maintaining Australian market access.

Such combinations can be used within broader portfolios that also contain domestic-focused index funds or sector-based ETFs to further refine market exposure. The selection process for these funds often involves reviewing their underlying indices and methodology for alignment with long-term objectives.

Role of ETFs in Broader Portfolios

ETFs provide a way to access diversified holdings through a single listed entity. They can track domestic benchmarks like the Australian broad market index or international indices such as the Nasdaq 100. This versatility enables market participants to adjust allocations based on sector themes or geographic reach without directly engaging in multiple individual stock transactions.

With transparent structures and defined index methodologies, ETFs have become a preferred method for achieving diversified market exposure in both local and international contexts. Their role continues to expand as more thematic and sector-based options become available on the Australian Securities Exchange.

Frequently Asked Questions

What is an ETF?
An ETF is a security that tracks an index, sector, or asset class and is traded on an exchange.
How does (ASX:NDQ) gain technology exposure?
It follows the Nasdaq 100 Index, which is heavily weighted towards large technology companies.
What is unique about (ASX:ETHI)?
It focuses on global companies identified as leaders in sustainability, excluding certain industries.

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