What Is the Nasqad 100 Index?

The Nasdaq 100 Index is a collection of the 100 largest, most actively traded companies listed on the Nasdaq stock exchange. The index includes companies from diverse industries like manufacturing, technology, healthcare, and others. The index excludes those in the financial sector, like commeꦚrcial and investment banks.

Understanding the Nasdaq 100 Index

For inclusion in the Nasdaq 100 index, securities must be listed exclusively on a Nasdaq exchange. These can include common stocks, ordinary shares, American depositary receipts, and tracking stocks. They must also be nonfinancial and have traded for at least three months on an exchangဣe.

The Nasdaq 100's liquidity criteria require that each security have a minimum average daily trading value of $5 million (measured over the previous three calendar months). There is no market capitalization requirement.

The Nasdaq 100 Index is constructed using a modified capitalization method. This method uses the individual weights of included items according to 澳洲幸运5官方开奖结果体彩网:their market capitalization. Weighting limits the influence of the largest companies and balances the index among al൩l🐷 members.

Nasdaq reviews the composition of the index each quarter and adjusts the weights if the distribution requirements are not met.

Composition of the Nasdaq 100 Index

The Nasdaq 100 Index comprises assets i𝕴n various sectors, except financial services. There are eight total sectors, which are the following as of June 20, 2025:

• Technology (62.25%)
• 澳洲幸运5官方开奖结果体彩网:Consumer Discretionary (17.02%)
• Healthcare (5.95%)
• Industrials (4.09%)
• Telecommunications (3.87%)
• 澳洲幸运5官方开奖结果体彩网:Consumer Staples (3.34%)
• Basic Materials (1.65%)
• Utilities (1.20%)
• Energy (0.44%)
  

The top 10 companies by weight in the Nasdaq 100 as of June 20, 2024, are as f꧟ollows:

• Apple Inc. (8.75%)
• Microsoft (7.41%)
• NVIDIA (6.32%)
• Amazon (5.25%)
• Meta Platforms (4.76%)
• Broadcom (4.44%)
• Google (A shares) (2.49%)
• Google (C shares) (2.42%)
• Tesla (2.37%)
• Costco Wholesale (2.34%)
  

Special Rebalancing

Nasdaq undertook a special rebalancing of the Nasdaq 100 index on 澳洲幸运5官方开奖结果体彩网:July 24, 2023. The component companies' weights were rebalanced to address overconcentration in the index and make it less dependent on just a few large companies. Nasdaq's rules state that if stocks with a weight of more than 4.5% in the index collectively account for more than 48% of the index, then the index mu🦹st be rebalanced.

Nasdaq has only undertaken a special rebalance twice before, in 1998 and 2011. The latest special rebalance was triggered by a recent rally in tech stocks and Tesla shares, which pushed the aggregate weight of the top five companies (Microsoft, Apple, Nviജdia, Amazon, and Tesla) above the 48% threshold. The special rebalance reduced their weights and increased those of other companies like Alphabet, Meta Platforms, Netflix, and Costco.

The special rebalance was expected to impact the performance and volatility of the index and the individual stocks, as some investors were likely to adjust their portfolios to align with the new weights. However, an increase in volatility never materialized, but a short decline did. It's difficult to say whether this was due to the rebalance or if the index was simply following the rest of the market—which is more likely because prices began trading upward in October 2023 market-wide.

Investing in the Nasdaq 100 Index

The Nasdaq 100 index ܫis a꧙ list of the largest 100 companies by modified market cap trading on Nasdaq exchanges. You have many choices for gaining exposure to the index without buying the individual stocks included in the index.

澳洲幸运5官方开奖结果体彩网:Exchange-traded funds (ETFs), mutual funds, futures and options, or annuities all exist that mirror the performance of the Nasdaq 100. For the average investor, ETFs are generally the simplest and least risky means of gaining exposure to the companies in the index.

The Bottom Line

The Nasdaq 100 Index focuses on the largest 100 nonfinancial companies trading on Nasdaq exchanges. It is a diversified index providing a broad overview of the market, covering a variety of sectors. Investors seeking broad exposure to some of the world's largest companies can invest in the index via ETFs, mutual funds, futures and options, or annuities.