NASDAQ-100 - 10 things to know with detail
- 1. The NASDAQ-100 is a stock market index that includes 100 of the largest non-financial companies listed on the NASDAQ stock exchange.
- 2. The NASDAQ-100 is heavily weighted towards technology companies, with companies like Apple, Microsoft, Amazon, and Alphabet (Google) among its top holdings.
- 3. The NASDAQ-100 is a market capitalization-weighted index, meaning that larger companies have a greater impact on the index's performance.
- 4. The NASDAQ-100 was launched in 1985 and is one of the most widely followed stock market indices in the world.
- 5. The NASDAQ-100 is often used as a benchmark for the performance of the technology sector and as a gauge of investor sentiment towards growth stocks.
- 6. The NASDAQ-100 is a popular index for investors seeking exposure to high-growth companies, as many of its constituents are known for their innovation and disruptive technologies.
- 7. The NASDAQ-100 is rebalanced quarterly, with companies being added or removed based on their market capitalization and other factors.
- 8. The NASDAQ-100 is traded through the Invesco QQQ Trust (ticker symbol: QQQ), an exchange-traded fund (ETF) that tracks the performance of the index.
- 9. The NASDAQ-100 has outperformed other major stock market indices like the S&P 500 and Dow Jones Industrial Average in recent years, due in part to the strong performance of technology stocks.
- 10. While the NASDAQ-100 is a popular index for investors, it is important to note that investing in individual stocks carries risks, and diversification is key to managing those risks effectively.