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Wikipedia / Nasdaq-100

The Nasdaq-100 is a stock market index made up of equity securities issued by approximately 100 (currently 101) of the largest non-financial companies listed on the Nasdaq stock exchange. The Nasdaq-100 is often abbreviated as NDX, NDQ, NAS100, or US100. The Nasdaq-100 index is a public float weighted/capitalization-weighted index, with a maximum weight of 24% for the largest component.

Products linked to the Nasdaq-100 include index funds (exchange-traded funds/ETFs and mutual funds) as well as derivativess (options and futures contracts), which are available for trading in many countries with the goal of replicating the performance of the index. Also available are modified index funds; they replicate the performance of the index with modifications such as the use of covered call strategies, equal weighting, performance buffers, leverage, inclusion of only growth or value stocks, or exclusion of certain sectors, all with the goal of changing the risk/return and yield. Invesco QQQ, with approximately $500 billion in assets, has the highest average daily volume of all Nasdaq-100 ETFs. In total, there is approximately $1.4 trillion in assets tracking the index.

History

The Nasdaq-100 was launched on January 31, 1985, by the Nasdaq. It created two indices: the Nasdaq-100, which consists of industrial, technology, retail, telecommunication, biotechnology, health care, transportation, mass media and service companies, and the Nasdaq Financial-100, which consists of banks, Insurance companies, brokerage firms, and mortgage loan companies.

The base price of the index was initially set at 250. In January 1994, in advance of the launch of options trading on the index by the Chicago Board Options Exchange, the value of the index halved, similar to a 2-for-1 stock split, to make the index value below that of the Nasdaq Composite.

In November 1998, to make the index suitable for the basis of an exchange-traded fund, the index weights were modified away from market cap weights.

Foreign companies were first admitted to the Nasdaq-100 in January 1998.

Selection criteria

Entry to the index is determined by the Nasdaq Index Management Committee, which follows a strict, transparent, and rules-based methodology rather than a subjective selection process. Requirements to be added to the index include having a primary listing on the Nasdaq and an average daily traded value of at least $5 million. The index components are recalculated annually after the close of trading on the third Friday in December. The number of shares outstanding and public float of each component is updated quarterly.

Performance

Record values

Annual returns

Annual returns have been as follows:

Closing milestones

List of 1,000-point milestones by number of trading days

List of 10,000-point milestones by number of trading days

Related indices

Related indices are:

See also

References