The Nasdaq-100: Tracking Innovation in Large-Cap Growth
On January 31, 1985, the Nasdaq-100 (NDX®) Index launched. Since that time, it has become one of the most widely followed stock indexes in the world. The Nasdaq-100 helps guide the investment community on general trends in share prices. Beyond this important informational role, the index has two primary objectives: 1) to focus investor attention on the index’s 100 companies and, 2) to provide a basis for investable products. Today, we can say with confidence that Nasdaq has achieved these objectives with remarkable speed and success. Exchange traded products tied to the Nasdaq-100 are now available in 19 countries, and more than $200 billion of investments in exchange-traded products are tied to the index.
This paper will provide a broad overview of the Nasdaq-100, its methodology, its components and its spectacular success in generating tradable products.
Highlights:
- Since its inception over 38 years ago, the Nasdaq-100 Index® has become the world’s preeminent large-cap growth index.
- While the Nasdaq-100 is home to some of the most well-known names in technology— including Apple, Microsoft, Alphabet, Intel, NVIDIA, and Meta Platforms—the index also includes category-defining companies on the forefront of innovation in other key industries such as Amgen, Starbucks, and Tesla.
- Since the introduction of index options in 1994, a wide assortment of financial products that track the Nasdaq-100 have been made available to investors.
- The Nasdaq-100 also serves as the basis for many investable securities, the largest being the Invesco QQQ ETF (Nasdaq: QQQ). The current value of this and related exchange-traded products exceeds $200 billion, making the Nasdaq-100 one of the most widely tracked indexes in the world.
Nasdaq® is a registered trademark of Nasdaq, Inc. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as , either on behalf of a particular security or an overall investment strategy. Neither Nasdaq, Inc. nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding Nasdaq-listed companies or Nasdaq proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Nasdaq Index Research Team
Nasdaq
Nasdaq calculates more than 40,000 diverse indexes, providing coverage across asset classes, countries and sectors.
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