Nasdaq 100 Index

How This Index Works

The Nasdaq 100 is a modified market-cap weighted index of the 100 largest non-financial companies on the Nasdaq exchange; financials are excluded by rule. "Modified" means Nasdaq caps the largest weights at rebalances so a few mega-caps cannot completely dominate the index. Membership is reconstituted every December from the exchange’s market-cap ranking, with quarterly rebalances in between.

Frequently Asked Questions

What is the Nasdaq 100?

An index of the 100 largest non-financial companies listed on the Nasdaq exchange, weighted by market cap with caps on the biggest positions. Its heavy technology tilt makes it the standard benchmark for U.S. growth stocks, and it is the index behind QQQ.

What is the difference between the Nasdaq 100 and the Nasdaq Composite?

The Composite contains essentially every stock listed on the Nasdaq exchange: thousands of companies of every size. The Nasdaq 100 keeps only the 100 largest non-financial names, so it is far more concentrated and even more tech-heavy. QQQ tracks the Nasdaq 100, not the Composite.

How do I invest in the Nasdaq 100?

Invesco’s QQQ and the cheaper QQQM share class above both hold all 100 constituents at index weights; they differ in fee and structure, not holdings.

Why are there no banks in the Nasdaq 100?

By rule the index excludes financial companies, a design choice dating to its 1985 launch, when Nasdaq split its listings into a non-financial 100 and a separate financial index. That exclusion is a big part of why the index skews so heavily toward technology.