The NASDAQ 100 index, also known as the NDX, is one of the world’s most widely followed stock indexes. It tracks the 100 largest companies by market capitalization listed on the NASDAQ exchange. This index provides extensive information on technology companies and their performance, as its weighting is dominated by large tech companies such as Apple, Microsoft, Amazon, and Alphabet. Therefore, if you want to get a better look at the current status of the biggest stock market companies, keep an eye on the NASDAQ 100 index.
The Nasdaq 100 tracks the stock price development of the 100 largest listed companies. The regular Nasdaq Composite index tracks over 3,000 companies, while the Nasdaq 100 offers a more focused perspective on the 100 largest companies by market capitalization. This index excludes all financial sector companies and focuses more on technology, consumer goods, healthcare, and entertainment companies.
The index was founded in 1985 and, over the years, has become one of the most widely followed indexes, providing a comprehensive view of technology and growth companies.
You can easily track the index’s performance through various index funds and ETFs. The most well-known is the Invesco-managed QQQ ETF, which aims to track the movements of the index as closely as possible. Many European fund managers also offer products tied to the Nasdaq 100 index, which allow beginner investors to start investing with smaller amounts. An index fund is a good choice because it provides broad diversification across many companies in a single investment.
The Nasdaq 100 comprises the 100 largest companies, primarily tech giants such as Apple, Microsoft, NVIDIA, Amazon, and Alphabet, which collectively account for a significant portion of the index’s value. These companies have been the fastest growers over the last decade, and their growth has been tracked through this index.
The index also includes companies outside the tech sector, such as consumer goods giants PepsiCo, Costco, and Starbucks; healthcare and biotech companies like Amgen and Moderna; and entertainment and media companies like Netflix and Comcast.
The index is regularly reviewed to include emerging successful companies based on market cap ranking, while poorly performing companies may be dropped. In this way, the Nasdaq 100 remains current and serves as a gauge of how the world’s largest and most innovative growth companies are performing.
The easiest way to invest in the Nasdaq 100 is through an index fund or ETF. To get started, all you need is an investment account. Index funds typically have low fees and automatically diversify your investments across many companies. This reduces the impact of any single company’s performance on your overall portfolio, and your investments can also include companies from various sectors.
To start investing in funds, you don’t need substantial capital. You can start with a small monthly amount; for example, a couple of tens of euros every month is quite enough. This investment strategy is suited for long-term investors, as it can deliver strong returns; however, it’s not suitable for those seeking quick profits.
Throughout 2025, the Nasdaq 100 has maintained strong momentum. From the beginning of the year to mid-August, the index rose by roughly 9.5%. As of late October 2025, its year-to-date total return stands at nearly 19%, compared with approximately 14% for the S&P 500.
The ongoing AI sector boom and robust earnings from leading technology companies have primarily powered this steady growth. Nvidia, in particular, continued to strengthen its influence in the index, joining Apple and Microsoft as dominant components. NVIDIA’s weight in the NASDAQ 100 is currently around 13.5%, meaning its performance remains a major driver of the index’s movement.
The S&P 500 is another globally recognized index alongside the Nasdaq. It tracks the performance of the 500 largest U.S. publicly traded companies by market capitalization, encompassing companies across various sectors, including industrials, finance, energy, healthcare, and technology.
The primary difference between the Nasdaq 100 and the S&P 500 lies in their sector focus. The Nasdaq 100 focuses on technology companies, whereas the S&P 500 encompasses a much broader range of sectors. It includes 500 companies from different sectors on the New York Stock Exchange and the Nasdaq. This means that the S&P 500 provides a more comprehensive picture of the entire stock market, while the Nasdaq 100 index focuses on growth companies and the technology sector.
In 2025, the NASDAQ 100 outperformed the S&P 500, gaining approximately 13% compared to about 10% for the S&P. Over the long term, the NASDAQ 100 has consistently outpaced the S&P 500, primarily due to the strong growth of technology giants.
The NDX includes the largest technology companies and AI solution providers, accounting for about 70% of the index. The largest companies and their approximate weightings are:
AI’s growing popularity has increased the number of these largest companies even more in the past year, with the so-called Bloomberg Magnificent 7 index rising about 50%. Therefore, these tech giants have a significant impact on the development of the Nasdaq 100. Currently, these businesses are performing very well, with substantial earnings growth in 2025. However, you should note that if these technology companies decline for any reason, it will hurt the Nasdaq 100.
ETFs are an innovative and efficient way to gain exposure to the Nasdaq 100 without buying individual stocks. Some of the most popular options include:
In Europe and Finland, the iShares Nasdaq 100 UCITS ETF and Invesco EQQQ UCITS ETF are the largest and most popular, but their fees are around 0.30%. Meanwhile, the UBS Nasdaq-100 UCITS ETF is among the cheapest, charging just 0.13% in fees.
NASDAQ is an American stock exchange that was founded in 1971 as the world’s first digital trading marketplace. It is particularly known as a marketplace for technology companies, listing notable companies such as Apple, Microsoft, and NVIDIA.
NASDAQ opens on weekdays at 9:30 AM and closes at 4:00 PM Eastern Time (ET), following standard U.S. stock market hours. Trading is also available during extended hours from 4:00 AM to 9:30 AM (pre-market) and from 4:00 PM to 8:00 PM (after-hours).