Nasdaq-100

The Nasdaq-100 is a stock market index of the largest non-financial companies listed on the Nasdaq Stock Market.

The Nasdaq-100 is a stock market index of the largest non-financial companies listed on the Nasdaq Stock Market. It is market-capitalization weighted and is widely used as a benchmark for large-cap growth and technology-oriented stocks. The index includes domestic and international companies listed on Nasdaq and is heavily weighted toward technology, but also includes companies in consumer services, healthcare, and industrials.

Composition

The Nasdaq-100 consists of the 100 largest non-financial companies listed on Nasdaq, based on market capitalization. It includes both U.S. and international issuers and spans sectors such as technology, retail, healthcare, and industrials. Because some constituent companies have multiple share classes, the number of listed securities can exceed 100 even when the index represents 100 issuers.

Methodology

The index is capitalization weighted, meaning larger companies generally have greater influence on performance. Nasdaq’s methodology also excludes financial companies and applies rules that can cap the weight of the largest component. The weighting method is free-float market-capitalization weighted.

History

The Nasdaq-100 was launched on January 31, 1985. Over time it has become one of the best-known U.S. equity benchmarks and a common reference point for technology and growth investing. Nasdaq says the index has become a major benchmark for large-cap growth investing.

Market use

The index is followed by many investment vehicles, including ETFs and mutual funds. It is often used to measure the performance of large, innovative, non-financial companies listed on Nasdaq. The index is widely tracked by exchange-traded funds, mutual funds, and other investment products.