The Nasdaq 100 is a U.S. stock market index comprised of the 100 largest companies listed on the Nasdaq Composite stock exchange, based on market capitalization.
Technology companies dominate the index, accounting for about 50% of the index’s weight, followed by Consumer Services which make up close to 25%. Additional sectors in the index include Biotechnology, Health Care, Industrial, Media, Retail, Telecommunication, and Transportation.
Some of the most well-known companies in the world are listed on the NDX including Apple, Google, Intel, Microsoft, Netflix, and Tesla.
At the end of 2020, the index had a market cap of $15T.
Financial companies are excluded as they are listed separately on the NASDAQ Financial-100.
People sometimes confuse the Nasdaq-100 with the Nasdaq Composite Index. The Nasdaq Composite Index, also known simply as The Nasdaq, includes over 3,000 stocks and is regularly referred to by the media as a benchmark for the state of the U.S. economy.
Investors cannot trade the Dow 100 directly because it represents the performance of a grouping of stocks. However, you can purchase index funds, or ETFs (exchange-traded funds) that track the index.