Since its inception 30 years ago, the Nasdaq-100 index has become one of the most widely followed stock indexes in the world.
In recognition of the Nasdaq-100’s 30th anniversary, the Nasdaq research team took a detailed look at this iconic index. The findings are outlined here.
- The index includes 100 of the largest domestic and international non-financial companies listed on the Nasdaq Stock Market based on market capitalization. Considered a premier large-cap growth index, the Nasdaq-100 plays a crucial role informing the investment community of performance trends for leading non-financial companies and perhaps, more importantly, provides a basis for numerous investable products. Approximately $50 billion in exchange traded products (ETPs) are benchmarked to the Nasdaq-100.
- Throughout the past three decades the Nasdaq-100 has evolved from the industry’s “Technology Index” into a leading barometer for strong, growth companies at the forefront of innovation. Companies included in the Nasdaq-100 have helped drive the modern economy and the evolution of the Index, and is a reflection of how the business world has shifted in the 21st century.
- When launched in 1985, the Nasdaq-100 was intended primarily to showcase the top stocks listed on The Nasdaq Stock Market. It was one of two indexes launched at that time (the other being the Nasdaq Financial-100) intended to create a subset of the Nasdaq Composite Index to better support creation of derivative trading instruments such as options and futures.
Read the entire article in Forbes.com.
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