Nasdaq 100 Index

DEFINITION of 'Nasdaq 100 Index'

An index composed of the 100 largest, most actively traded U.S companies listed on the Nasdaq stock exchange. This index includes companies from a broad range of industries with the exception of those that operate in the financial industry, such as banks and investment companies.

BREAKING DOWN 'Nasdaq 100 Index'

Individual investors are able to gain exposure to the Nasdaq 100 index by purchasing exchange-traded funds (ETFs) that are specifically designed to track its performance. The most popular of these ETFs is known as the QQQQ.

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RELATED FAQS
  1. What is the difference between the QQQ ETF and other indexes?

    Find out more about the PowerShares QQQ Trust, the index the QQQ tracks, and the difference between QQQ, the SPY and Nasdaq ... Read Answer >>
  2. Do you recommend the Nasdaq 100, S&P 500, or a 50/50 allocation?

    My job is now offering two large-cap stocks. The S&P 500 Index and Nasdaq 100 Index. I've read a bit about the debate on ... Read Answer >>
  3. Why is the Nasdaq more heavily weighted to tech stocks than other stock exchanges?

    Learn how the Nasdaq attracts technology companies due to its focus on using advanced financial technology to improve the ... Read Answer >>
  4. What are the most important equity market indexes?

    Discover the most important equity market indexes. Stock market indexes are tools to evaluate the performance of the stock ... Read Answer >>
  5. What are the advantages and disadvantages of listing on the Nasdaq versus other stock ...

    Discover some of the primary advantages and disadvantages that exist for companies listed on the Nasdaq exchange rather than ... Read Answer >>
  6. Who's in charge of managing exchange-traded funds?

    An exchange-traded fund (ETF) is a security that tracks an index but has the flexibility of trading like a stock. Just like ... Read Answer >>
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