FTSE NASDAQ 500 Index

AAA

DEFINITION of 'FTSE NASDAQ 500 Index'

Introduced in July 2005, the FTSE NASDAQ 500 is one of four indexes in the FTSE NASDAQ Index Series. It includes the 500 largest NASDAQ companies by market capitalization with an emphasis on technology stocks. Its holdings encompass the holdings of two other indexes, the FTSE NASDAQ Large Cap and the FTSE NASDAQ Mid Cap.

INVESTOPEDIA EXPLAINS 'FTSE NASDAQ 500 Index'

This index can be thought of as similar to the S&P 500, but for NASDAQ stocks. Some of the top stocks in the FTSE NASDAQ 500 Index are Microsoft, Cisco, Google, Apple, and Intel. The index is free-float weighted and is reviewed every year in the first week of December.

RELATED TERMS
  1. Nasdaq

    A global electronic marketplace for buying and selling securities, ...
  2. Free-Float Methodology

    A method by which the market capitalization of an index's underlying ...
  3. Weighted Average

    An average in which each quantity to be averaged is assigned ...
  4. FTSE

    A company that specializes in index calculation. Although not ...
  5. Standard & Poor's 500 Index - S&P ...

    An index of 500 stocks chosen for market size, liquidity and ...
  6. S&P 500 Dividend Aristocrats

    Companies that have had an increase in dividends for 25 consecutive ...
RELATED FAQS
  1. What is the difference between the Dow and the Nasdaq?

    Because of the way people throw around the words "Dow" and "Nasdaq," both terms have become synonymous with "the market," ... Read Full Answer >>
  2. What are the listing requirements for the Nasdaq?

    Major stock exchanges, like the Nasdaq, are exclusive clubs - their reputations rest on the companies they trade. As such, ... Read Full Answer >>
  3. Should I invest in penny stocks or large cap stocks for my retirement portfolio?

    Large-cap stocks are a superior investment option for retirement portfolios compared to penny stocks. Most penny stocks are ... Read Full Answer >>
  4. Is it more beneficial to invest in a blue chip stock or a penny stock?

    Penny and blue-chip are terms used to describe a stock's valuations and statures. Penny stocks are generally the stocks of ... Read Full Answer >>
  5. How can I calculate the forward p/e of the S&P 500?

    Forward price-to-earnings, or P/E, for the S&P 500 is calculated by dividing the market share per price by the forecasted ... Read Full Answer >>
  6. What is the difference between the Dow Jones Industrial Average and the S&P 500

    The Dow Jones Industrial Average (DJIA) and the S&P 500 are both widely followed American stock market indexes. The major ... Read Full Answer >>
Related Articles
  1. Investing Basics

    An Introduction To Stock Market Indexes

    Investopedia explains the five most talked about indexes and what makes them all different.
  2. Options & Futures

    The NYSE And Nasdaq: How They Work

    Learn some of the important differences in the way these exchanges operate and the securities that trade on them.
  3. Investing

    What A Rate Hike May Mean For Stocks

    By the end of the year, investors will likely be contending with the first Federal Reserve (Fed) rate hike in nearly a decade.
  4. Fundamental Analysis

    Is it Wise to Diversify with Small-Caps?

    Historically, it's always been a good idea to add small-caps to your portfolio. But doing so right now will require more focus and attention.
  5. Investing

    How Nasdaq Makes Money

    NASDAQ provides a marketplace which offers money-making opportunities to investors. Investopedia explains how NASDAQ makes money.
  6. Mutual Funds & ETFs

    Leveraged S&P 500 ETFs: Are These the Best?

    A look at the top six S&P 500 leveraged ETFs.
  7. Chart Advisor

    Interested in Growth Stocks? See These 4 ETFs

    Given the rise in popularity of growth ETFs, there are several interesting growth stock choices for investors.
  8. Mutual Funds & ETFs

    Emerging Market ETFs EEM and VWO: Which is Better?

    Based on current conditions, one ETF will look more appealing than the other on the surface, but you always need to look below the surface.
  9. Stock Analysis

    A Trader's Look at the S&P 500

    Moving averages are sending an important signal, and it's probably not what you think.
  10. Mutual Funds & ETFs

    ETF Bubble Or No Bubble?

    ETFs might be the recommendation of choice for the unimaginative financial advisor, but that doesn’t mean that the industry is in a bubble.

You May Also Like

Hot Definitions
  1. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  2. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  3. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
  4. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  5. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  6. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
Trading Center