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.

  1. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  2. Nasdaq

    A global electronic marketplace for buying and selling securities, ...
  3. QQQQ

    The previous ticker symbol for the Nasdaq 100 Trust, an ETF that ...
  4. Index

    A statistical measure of change in an economy or a securities ...
  5. Capitalization-Weighted Index

    A type of market index whose individual components are weighted ...
  6. Futures Market

    An auction market in which participants buy and sell commodity/future ...
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  1. Is it possible to invest in an index?

    First, let's review the definition of an index. An index is essentially an imaginary portfolio of securities representing ... Read Full Answer >>
  2. What is indexed universal life insurance?

    Indexed univeral life insurance is a lot like universal life insurance, however it does have a couple of wrinkles not found ... Read Full Answer >>
  3. Should mutual funds be subject to more regulation?

    Mutual funds, when compared to other types of pooled investments such as hedge funds, have very strict regulations. In fact, ... Read Full Answer >>
  4. Do ETFs pay capital gains?

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  5. How do real estate hedge funds work?

    A hedge fund is a type of investment vehicle and business structure that aggregates capital from multiple investors and invests ... Read Full Answer >>
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    While some Vanguard exchange-traded funds (ETFs) are available commission-free from third-party brokers, a large portion ... Read Full Answer >>

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