Nasdaq 100

The Nasdaq-100 is the premier growth index, consisting of the 100 largest non-financial companies listed on the Nasdaq Stock Market.

Technology Focus

While not strictly a "tech index," the Nasdaq-100 is dominated by the Technology and Consumer Services sectors. It excludes banks and financial institutions, giving it a unique risk profile compared to the S&P 500.

Concentration Risk

Because it is market-cap weighted among only 100 names, the "Magnificent Seven" (Apple, Microsoft, Alphabet, etc.) can make up a large portion of the index. This can lead to high returns but also higher volatility.

Innovation Benchmark

Many investors view the Nasdaq-100 as a benchmark for innovation and "the economy of tomorrow," as it includes biotech, industrial, and retail giants that are disrupting traditional industries.

Expert Tip

The Nasdaq-100 has significant overlap with the S&P 500. If you hold both, you are likely heavily overweighted in Big Tech. Check your portfolio concentration!