ETF in Focus: iShares Nasdaq Top 30 ETF (ITEK)
Gareth Hughes | BlackRock Australia
US earnings continue to provide support for the AI-led equity story. As of early August, around 75% of US companies had beaten Q2 earnings expectations, with an aggregate beat of about 8%. AI-linked companies accounted for more than 65% of earnings growth, while non-AI companies also saw an average upward earnings revision of 6% through reporting season.1
That strength sits behind a longer-running shift in market leadership. Over the five years to 31 July 2026, US shares outperformed Australian equities by around 5% a year, while the more technology-heavy Nasdaq-100 delivered roughly 7% more per year than the Australian share market.2,3
BlackRock expects the US earnings backdrop to remain constructive. Our analysis points to US equity earnings growth of around 11.6% a year over the next five years - a pace observed in only about 15% of historical five-year periods.4 That helps explain why we continue to see the US as a key access point for the AI megaforce.
Can mega-cap tech keep delivering?
The question is increasingly about the quality of that growth. BlackRock estimates hyperscaler capital expenditure has risen by more than 80% year on year to approximately US$715 billion in 2026.5 Higher spending raises depreciation, power and financing costs before the associated revenues are fully visible, increasing the hurdle for already elevated valuations.
But spending is not automatically wasteful. BlackRock Fundamental Equities analysis suggests illustrative data-centre GPU projects can reach break-even in years three to four and generate an internal rate of return near 21% where utilisation, pricing and contract assumptions hold.6 The investment case therefore depends less on the headline capex number than on whether companies can turn infrastructure into durable revenue.
AI infrastructure spending can be economically productive
Source: BlackRock Fundamental Equities Technology, May 2026. Illustrative data-centre GPU contract economics; assumptions are subject to change. For illustrative purposes only. IRR = internal rate of return, FCF = free cash flow.
The journey might not be linear
AI and digital infrastructure remain powerful long-term themes, but high expectations can translate into sharp short-term swings when markets reassess earnings, valuations, interest rates or the scale of investment spending. For investors, this makes portfolio role and position size particularly important when adding concentrated technology exposure.
Why the Nasdaq Top 30 in 2026
ITEK tracks the Nasdaq-100 Top 30 Index, giving investors targeted exposure to the largest companies in the Nasdaq-100. As of 31 July, the index had around 70% in mega-cap stocks and approximately 65% in technology.7 This creates meaningful exposure to hyperscalers alongside the semiconductor and hardware companies supplying the AI buildout.
The opportunity is not limited to software. Top holdings include Micron Technology, Advanced Micro Devices and Broadcom, providing access to memory, chips and connectivity infrastructure, while consumer names broaden exposure to the wider US economy.8
That concentrated growth bias has been rewarded recently. From the Nasdaq-100 Top 30 Index’s inception on 22 August 2024 to 25 August 2026, it returned more than 52% and outperformed the broader Nasdaq-100 Index by around 4 percentage points.9 While past performance is of course not a reliable indicator of future performance, the result illustrates how focusing on the largest Nasdaq leaders can amplify both market leadership and market risk.
We see ITEK as a minor or satellite rather than a core holding: a way for investors comfortable with higher volatility to dial up exposure to US innovation alongside a diversified global equity portfolio. It offers a single-trade alternative to selecting individual AI winners, while retaining the flexibility to increase or reduce the allocation as market views change.
With US earnings still resilient and AI investment moving from model development into chips, data centres, power and real-world adoption, we believe the growth opportunity remains compelling. The trade-off is concentration and volatility - making ITEK most relevant for investors who want a deliberate, targeted allocation to the companies at the centre of that cycle.
- Source: BlackRock/S&P data as of 4 August 2026.
- Source: BlackRock, 31 July 2026. Annualised AUD returns: S&P 500 vs S&P/ASX 200, 1 August 2021-31 July 2026. Past performance is not a reliable indicator of future performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index
- Source: BlackRock, 31 July 2026. Annualised AUD returns: Nasdaq-100 vs S&P/ASX 200, 1 August 2021-31 July 2026. Past performance is not a reliable indicator of future performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index
- Source: BlackRock/LSEG Datastream data as of 7 August 2026. Forecasts may not come to pass
- Source: BlackRock Fundamental Equities data as of May 2026.
- Source BlackRock Fundamental Equities Technology, May 2026
- Source: BlackRock data as of 31 July 2026. Portfolio holdings are subject to change. The specific securities identified and described do not represent all of the securities purchased or sold, and no assumptions should be made that they were or will be profitable. They represent 3 of the top 10 largest holdings in the portfolio as at 31 July 2026. For illustrative purposes only. This is not a recommendation to invest in any particular financial product
- The securities mentioned are top 10 holdings of ITEK as of 31 July 2026. For illustrative purposes only; this is not a recommendation to purchase a particular financial product.
- Source: Nasdaq data as of 25 August 2026. Based on cumulative return of the Nasdaq-100 Top 30 Index versus the Nasdaq-100 Index in US dollar terms since the Nasdaq-100 Top 30 Index inception on 22 August 2024. Past performance is not a reliable indicator of future performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index
Disclaimer:
Opinions are subject to change, and they are not a guarantee of future results. This information should not be relied upon as research, investment advice or a recommendation. Diversification and asset allocation may not fully protect you from market risk. This information has been provided by BlackRock Investment Management (Australia) Limited (BIMAL) for WealthHub Securities Limited (WSL) (ABN 83 089 718 249)(AFSL No. 230704). WSL is a Market Participant under the ASIC Market Integrity Rules and a wholly owned subsidiary of National Australia Bank Limited (ABN 12 004 044 937)(AFSL No. 230686) (NAB). NAB doesn’t guarantee its subsidiaries’ obligations or performance, or the products or services its subsidiaries offer. This material is intended to provide general advice only. It has been prepared without having regard to or taking into account any particular investor’s objectives, financial situation and/or needs. All investors should therefore consider the appropriateness of the advice, in light of their own objectives, financial situation and/or needs, before acting on the advice. Past performance is not a reliable indicator of future performance. Any comments, suggestions or views presented do not reflect the views of WSL and/or NAB. Subject to any terms implied by law and which cannot be excluded, neither WSL nor NAB shall be liable for any errors, omissions, defects or misrepresentations in the information or general advice including any third party sourced data (including by reasons of negligence, negligent misstatement or otherwise) or for any loss or damage (whether direct or indirect) suffered by persons who use or rely on the general advice or information. If any law prohibits the exclusion of such liability, WSL and NAB limit its liability to the re-supply of the information, provided that such limitation is permitted by law and is fair and reasonable. For more information, please click here.
Important Information: This material has been created with the co-operation of BlackRock Investment Management (Australia) Limited (BIMAL) ABN 13 006 165 975, AFSL 230 523 on 26 August 2026. Comments made by BIMAL employees here represent BIMAL’s views only. This material provides general advice only and does not take into account your individual objectives, financial situation, needs or circumstances. Where the iShares Nasdaq Top 30 ETF (ITEK) is referenced, read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) at blackrock.com/au to see if the product is appropriate for you. Before making any investment decision, you should obtain financial advice tailored to you having regard to your individual objectives, financial situation, needs and circumstances. Refer to BIMAL’s Financial Services Guide at blackrock.com/au for more information. This material is not a financial product recommendation or an offer or solicitation with respect to the purchase or sale of any financial product in any jurisdiction. All currency in AUD unless otherwise stated.
Product list
iShares Nasdaq Top 30 ETF (ITEK)
This product is likely to be appropriate for a consumer:
- who is seeking capital growth
- using the product for a minor allocation (up to 25%) or satellite allocation (up to 10%)
- with a minimum investment timeframe of 5 years
- with a high to very high risk/return profile, and
- who may need access to capital within one week under normal market conditions