Nasdaq 100

The Nasdaq 100 is a U.S. stock market index comprised of the 100 largest companies listed on the Nasdaq Composite stock exchange, based on market capitalization.

Technology companies dominate the index, accounting for about 50% of the index’s weight, followed by Consumer Services which make up close to 25%. Additional sectors in the index include Biotechnology, Health Care, Industrial, Media, Retail, Telecommunication, and Transportation.

Some of the most well-known companies in the world are listed on the NDX including Apple, Google, Intel, Microsoft, Netflix, and Tesla.

At the end of 2020, the index had a market cap of $15T.

Financial companies are excluded as they are listed separately on the NASDAQ Financial-100.

People sometimes confuse the Nasdaq-100 with the Nasdaq Composite Index. The Nasdaq Composite Index, also known simply as The Nasdaq, includes over 3,000 stocks and is regularly referred to by the media as a benchmark for the state of the U.S. economy.

Investors cannot trade the Dow 100 directly because it represents the performance of a grouping of stocks. However, you can purchase index funds, or ETFs (exchange-traded funds) that track the index.

The Nasdaq 100 is based on a “modified capitalization methodology”. This method considers individual weights of the companies in the index according to their market value based on shares of stock.

Nasdaq reviews the composition of the index quarterly, adjusting weightings if distribution requirements are not met.

Additionally, every December the NDX re-ranks to ensure that the largest companies in the NASDAQ are included. This is more frequent than other indexes such as the S&P 500 and Dow Jones Industrial Average.

The following companies in the index have an average upside potential of over 20% based on analyst price targets: