What is the NASDAQ Composite & how to invest in it?

Here’s a look at the Nasdaq Composite, and how to invest in it. Who's in the Nasdaq Composite? The Nasdaq Composite Index, popularly referred to as ‘The Nasdaq’ by the media, covers more than 3,000 stocks, all of which are listed on the Nasdaq Stock Market.

When did the NASDAQ Composite Index fall?

The Nasdaq Composite index spiked in the late 1990s and then fell sharply as a result of the dot-com bubble. The index was launched in 1971, with a starting value of 100. On July 17, 1995, the index closed above 1,000 for the first time. Between 1995 and 2000, the peak of the dot-com bubble, the Nasdaq Composite stock market index rose 400%.

How many times did the NASDAQ Composite outperform the S&P 500?

After the Dot Com Bubble, from 2003-2020, Nasdaq outperformed the S&P 500 in 12 out of 18 years, and the Dow Jones 14 times. In the wake of the Great Recession, 2009-2020, Nasdaq outperformed the S&P 500 and Dow Jones ten times. The easiest way for individual investors to participate in the Nasdaq Composite is Fidelity’s exchange traded fund.

Does Invesco offer a QQQ exchange-traded fund?

Invesco offers the Nasdaq: QQQ exchange-traded fund, which matches the performance of the Nasdaq-100, a different index which tracks 101 of the largest non-financial companies in the Nasdaq Composite and is 90% correlated with the Nasdaq Composite.