What is the Nasdaq-100? A Guide to One of the World’s Most-Watched Indexes

The Nasdaq-100® (NDX®) is a globally recognized index of 100 of the most innovative large cap companies listed on the Nasdaq Stock Market®. Widely used as a benchmark for the technology sector as well as US large cap growth, it’s one of the most tracked indexes in the world from an investable product standpoint, with more than $1.7 trillion of exposure linked to it globally as of June 30, 2026. Here’s what you need to know.

Quick Facts:

Inception Date	January 31, 1985
Number of Components	100
Weighting Method	Modified market capitalization
Rebalance Schedule	Quarterly
Reconstitution Schedule	Annual (December)
Top Sectors	Technology, Consumer Discretionary, Healthcare
Financial companies included?	No
Index Ticker Symbol	NDX

How the Nasdaq-100 Works

At its core, the Nasdaq-100 tracks 100 of the largest non-financial Nasdaq-listed companies, as measured by the total market value of those companies’ outstanding shares.

The index uses a modified market capitalization weighting method, which means bigger companies have more influence on the index’s movements, but with guardrails in place to prevent any single company from dominating the whole index. This distinguishes it from a pure market-cap-weighted index and helps limit concentration among its top holdings.

While the Nasdaq-100 has a longstanding reputation as a “tech-heavy index,” its reach goes well beyond Silicon Valley. The Nasdaq-100 is home to companies that have reshaped how we live, work, shop, and connect. The index spans multiple sectors, centering on:

• Technology — software, semiconductors, hardware
• Consumer Discretionary — e-commerce, retail, media, entertainment, travel & leisure
• Healthcare — biotech, medical devices, pharmaceuticals
• Consumer Staples, Industrials, and Telecommunications
• Basic Materials, Energy, Utilities, Real Estate (minimal exposure)

It’s also worth distinguishing the Nasdaq-100 from the Nasdaq Composite®. The Composite includes every company listed on the Nasdaq Stock Market — more than 3,000 securities spanning all sizes and sectors — whereas the Nasdaq-100 is far more selective, tracking only the 100 largest non-financial companies on the exchange.

And while many of those components are US-headquartered, the Nasdaq-100 is explicitly not limited to American companies. The index is open to any company listed on the Nasdaq Stock Market — regardless of where that company is based — so it includes globally recognized companies headquartered outside the United States. That international dimension is part of what makes the Nasdaq-100 a global innovation benchmark, not just an American one.

Nasdaq-100 vs. S&P 500: Key Differences

The Nasdaq-100 and S&P 500 are often mentioned in the same breath, but they’re measuring different segments of the market. Here’s how they compare:

	Nasdaq-100	S&P 500
Number of Companies	100	~500
Exchange Requirement	Nasdaq-listed only	Any major U.S. exchange
Financial Sector Included?	No	Yes
Performance Profile	Growth/Innovation-driven	Broad U.S. market
Sector Concentration	New economy focus	More balanced

The S&P 500 is designed to represent the broad U.S. economy — 500 companies across all sectors, from banks to oil producers to tech giants. By contract, the Nasdaq-100, which trades under the ticker symbol NDX, by contrast, is explicitly focused on non-financial companies at the forefront of global innovation. If the S&P 500 is a snapshot of the economy, the Nasdaq-100 is more of a portrait of where innovation is happening. According to Nasdaq Global Indexes, Bloomberg, and Factset, as of year-end 2025, Nasdaq-100 companies represented slightly more than half of the total market capitalization of the S&P 500, with the average NDX company size approximately three times as large.

How a Company Gets Added to the Nasdaq-100

There are specific eligibility requirements a company must meet to be included in the Nasdaq-100. To be considered for inclusion, a company must:

• Be listed on the Nasdaq Global Select Market® or Nasdaq Global Market® tiers
• Be classified as a non-financial company (banks, insurance companies, and other financial firms including REITs are excluded)
• Meet minimum average daily trading volume requirements to ensure liquidity
• Have been listed on Nasdaq for a minimum seasoning period before becoming eligible

The index is reconstituted annually each December, when Nasdaq reviews the full list and makes any additions or removals based on updated rankings. In addition, the index is rebalanced quarterly to keep the weighting methodology in check and ensure no single company grows disproportionately large relative to the others. Outside these scheduled events, special rebalances may occasionally take place to manage index concentration, while fast-entry rules enable intra-quarter additions for the very largest companies that conduct their IPOs or switch their listings to Nasdaq, subject to conditions.

Top Sectors and Holdings

The current Nasdaq-100 components reflect the index’s growth-oriented DNA. Technology consistently represents the largest share of the index by weight, followed by Consumer Discretionary and Healthcare.

The top holdings by weight typically include companies like Nvidia, Apple, Microsoft, Amazon, Alphabet, Tesla, Meta Platforms, and Broadcom — joined by names such as Walmart and Costco. These are some of the largest and most widely held names in global equity markets, and they collectively represent a significant portion of the index’s total weight, although they are limited by weight caps applied at the quarterly rebalances and the annual reconstitution. The full list of companies that comprise the Nasdaq-100, in order of their weight in the index, can be found on Nasdaq’s website.

How to Invest in the Nasdaq-100

Investors can’t buy the Nasdaq-100 directly because it is an index, not a security, but there are several practical ways to gain exposure to it. The most popular approach is through exchange-traded funds (ETFs). The Invesco QQQ Trust ETF (QQQ) historically tracked the Nasdaq-100’s performance, but BlackRock and State Street launched similar funds that also track the index, in July and June of 2026, respectively. Other ETF options exist as well, including leveraged and inverse variants for more sophisticated investors.

Mutual funds that track the index are another option, typically accessible through retirement accounts and brokerage platforms. For a full overview of available investment vehicles, visit the Nasdaq-100 Ways to Invest page.

Why the Nasdaq-100 Matters

Over the long run, the Nasdaq-100 has historically delivered substantial outperformance compared to broader market benchmarks — a reflection of its concentration in high-growth sectors. On a trailing 10-year basis as of December 31, 2025, the Nasdaq-100 has generated total returns of approximately 500% vs. the S&P 500’s approximately 300%. Investors can explore historical Nasdaq-100 performance data directly from Nasdaq.

That said, higher growth potential also comes with higher volatility. Because the index is concentrated in a smaller set of companies and sectors, it can swing more dramatically than the broader market during periods of economic uncertainty or sector-specific headwinds. For investors, it’s both a feature and a risk factor worth understanding.

Learn more about the Nasdaq-100® (NDX®).

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 investment advice, 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.