What is a NASDAQ Composite Index?

That was was launched in 1985, and is a more compact index comprising of the top 100 (hence the name) non-financial companies listed on the Nasdaq exchange. The Nasdaq Composite is a market cap-weighted index, simply representing the value of all its listed stocks.

What is the difference between the NASDAQ 100 and the composite?

The Nasdaq 100 is much narrower in scope than the Nasdaq Composite: It tracks the 100 largest companies by market capitalization that are listed on the Nasdaq stock exchange, excluding financial sector firms. The companies tracked by the Nasdaq 100 index include more than 90% of the market capitalization of the Nasdaq Composite index.

How many companies are in the NASDAQ 100 Index?

The 100 companies in the Nasdaq 100 make up more than 90% of the weight of the Nasdaq Composite Index. Just like with the Nasdaq Composite, there are mutual fund and ETF products that allow investors to track the Nasdaq-100 Index in their portfolio.

What does NASDAQ 100 mean?

A smaller index, the Nasdaq 100, measures the performance of the 100 largest non-financial companies listed on the Nasdaq exchange based on market capitalization. Nasdaq was originally an acronym for “National Association of Securities Dealers Automated Quotations.” What types of companies are in the Nasdaq Composite Index?