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The Nasdaq stock index has had a phenomenal run over the last decade, rising an average of 14.2 percent annually and turning an initial $10,000 investment into more than $37,700. And investors have some easy ways to ride the Nasdaq using exchange-traded funds (ETFs).
Here are three ways to play the Nasdaq using ETFs and what to watch out for.
3 ways to invest in the Nasdaq with ETFs
Investors have a few ways to use funds to invest in the Nasdaq, including ways to short the index and even increase the index’s total return through a leveraged ETF.
1. A Nasdaq index fund
The easiest way to participate in the Nasdaq is to own a straightforward Nasdaq fund. This fund attempts to mimic the performance of the Nasdaq-100 index, which is a collection of the top 100 largest non-financial stocks trading on the Nasdaq exchange.
The key fund here is…
