It's been a rather wild day for the S&P/ASX 200 Index (ASX: XJO) this Thursday. Initially, the ASX 200 spiked in value this morning. However, a surprisingly strong unemployment report out today has prompted investors to pause their euphoria. But let's talk about what's happening with the BetaShares Nasdaq 100 ETF (ASX: NDQ). 

In contrast to the ASX 200, the Betashares Nasdaq 100 ETF is having a blinder. This exchange-traded fund (ETF) closed at $49.94 per unit yesterday afternoon. But this morning, those same units opened at $50.66 each before rising as high as $50.72. That's not only a new 52-week high for this index fund but also an all-time record high.

At present, NDQ units are still up by 0.98% at $50.43 each.

So, how is this ASX ETF enjoying such a successful day when most ASX shares are looking wobbly?

How has the ASX NDQ ETF just hit a record ASX high?

Well, there's a simple reason why. The Betashares Nasdaq 100 ETF is an index fund that tracks the American NASDAQ-100 Index (NASDAQ: NDX). 

The Nasdaq 100 represents the largest 100 non-financial shares listed on the Nasdaq stock exchange. The Nasdaq is the exchange that most of the US' largest tech stocks call home. That's everything from Apple, Microsoft, and the other 'magnificent seven' tech giants to PayPal, Netflix, Adobe, and Airbnb.

In the early hours of this morning, the Nasdaq 100 Index had a stunning day of trade on the American markets. The index rose by a confident 1.85% to 21,763.98 points after hitting a new record high of 21,784.71 points during intraday trading.

This new high was driven by massive gains in the largest Nasdaq 100 shares (and thus the largest holdings in the NDQ ETF). This morning's session saw Apple, Alphabet, Meta Platforms, Amazon, and Tesla hit new all-time highs, with Tesla standing out with its 5.93% jump to US$424.77 a share.

With these sorts of gains being minted, it's no surprise that the Nasdaq 100-tracking NDQ ETF followed suit with its own highs on the ASX today.

Too late to buy the ASX NDQ ETF?

Many investors might be looking at this high-flying ASX ETF and wondering whether it's too late to buy in. After all, this index fund is up an extraordinary 35% or so in just 2024. Anyone who bought NDQ units five years ago would have seen their money more than double, with a 141.87% rise since December 2019.

Check that out for yourself below:

Well, it's a tricky position to be sure. My general rule with index funds is that it's never too late to buy in. Most ASX index funds, including those like NDQ that track American indexes, tend to rise over time. The Nasdaq has never failed to exceed a previous all-time high (as we have been reminded today).

However, the gains we have seen over the past year, in particular, have been abnormally lucrative. If I had been watching these rises from the sidelines and wished to invest in NDQ, I would proceed by initiating a dollar-cost averaging strategy.

Instead of putting everything I had into NDQ units right now, I would buy in small tranches at regular intervals going forward. This means that if NDQ has a rough year on the ASX next year, I wouldn't have bought at the top, and I could take advantage of the lower prices to build out a more robust position over time.

Let's see how this stunning ASX ETF fares in 2025.