The FTSE NASDAQ 500 is one of four indexes in the FTSE NASDAQ Index series first introduced in July of 2005. It includes the 500 largest NASDAQ companies by market capitalization with an emphasis on technology stocks. The partnership between NASDAQ and the FTSE intended to create potential opportunities for future development of innovative products that leveraged different segments of the NASDAQ investment universe. 

As of mid-2014 the index series, including the FTSE NASDAQ 500, were discontinued and no longer listed on an exchange. 


The FTSE NASDAQ 500 index is analogous to the S&P 500 but consists of the NASDAQ investment universe. Some of the top stocks tracked by the index include Microsoft (MSFT), Cisco (CSCO), Google (GOOGL), Apple (AAPL), and Intel (INTC). The index is free-float weighted and reviewed every year during the first week of December. When it was actively trading, investors could find the index under the symbol Q500. Other parts of the FTSE NASDAQ partnership included a large-cap, mid-cap, and small-cap index. The large-cap index consisted of the largest 70% of NASDAQ companies, while the mid-cap index included the next 20%, and the small-cap index the smallest 10% of companies.

Each index aimed to leverage the hallmarks of two leading financial services organizations in an innovative product. This involved FTSE's cutting-edge index design combined with NASDAQ's diverse market comprised of industry leading companies in technology, financial services, retail and all other sectors of the economy. 

Even though the FTSE NASDAQ 500 index was discontinued, FTSE and NASDAQ continued to collaborate on innovative financial products. In 2008, the two leading brands introduced the FTSE NASDAQ Dubai UAE 20 Index, which consists of 20 stocks traded on the NASDAQ Dubai. The index has found limited success and now trades below its opening price of $4,300 in April 2008. 

Historical Performance of the FTSE NASDAQ 500

The FTSE NASDAQ 500 index opened slightly below $5,500 and closed on July 2014 at about $11,700, representing a 114% increase from start to finish. Prior to listing, the FTSE NASDAQ index was found to outperform the comparable Russell Growth indexes for the previous two years. And for the first five years of the millennium, the small-cap version bested the S&P 500, Russell 2000, and other small-cap tracking indexes. Like most assets, though, the FTSE NASDAQ 500 hit an all-time low during the recession, when prices were cut in half from recent highs and dropped to $3,300.

  1. Nasdaq 100 Index

    The Nasdaq 100 Index is a basket of the 100 largest, most actively ...
  2. Footsie

    A slang term for the Financial Times Actuaries 100 index (FTSE ...
  3. Nasdaq National Market Securities ...

    The NASDAQ National - Nasdaq NM is the market, comprising more ...
  4. Nasdaq Composite Index

    The Nasdaq Composite index is a market-capitalization weighted ...
  5. Nasdaq

    Nasdaq is a global electronic marketplace for buying and selling ...
  6. NASDAQ Global Select Market Composite

    NASDAQ Global Select Market Composite is a market capitalization-weighted ...
Related Articles
  1. Investing

    How to Short the FTSE Ahead of The Brexit Vote

    Those who believe that a Brexit is likely can position themselves to take advantage of a fall in British stocks by taking a short position
  2. Investing

    The Kingdom Is Coming to Emerging Markets

    Saudi Arabia just earned an major promotion.
  3. Investing

    3 Types Of Indexing For ETF Success

    ETF success relies on the index with which it's paired. Discover three index genres for tracking average market performance.
  4. Insights

    An Introduction to Stock Market Indices

    Lear more about the five most talked about stock indices and what makes them all different.
  5. Insights

    What's The Difference Between The Dow And The Nasdaq?

    The way people throw around the words “Dow” and “Nasdaq” makes them seem synonymous with “the market.” But there are important differences.
  6. Investing

    PRF: PowerShares FTSE RAFI US 1000 ETF

    Find out about the PowerShares FTSE RAFI U.S. 1000 ETF, and explore detailed analysis of the fund that invests in undervalued stocks.
  7. Investing

    5 Best US Small-Cap Index Mutual Funds

    Read about different small-cap mutual funds that are available for investors. Learn about how the small-cap indexes have higher volatility.
  8. Financial Advisor

    3 Fidelity Funds Rated 5 Stars by Morningstar

    Discover three Fidelity mutual funds that have received five-star overall ratings from Morningstar.
  9. Insights

    Britain's FTSE 100 Hits 1-Year High After BoE Rate Cut

    The FTSE 100 is a share index of companies listed on the London Stock Exchange with the highest market capitalisation.
  1. What is the difference between the Dow and the Nasdaq?

    The Dow refers to the Dow Jones Industrial Average (DJIA) index, while the Nasdaq refers to the Nasdaq Composite Index. Read Answer >>
  2. 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 >>
  3. What should I use as a benchmark for my small-cap stock portfolio?

    The Russell 2000 and S&P SmallCap 600 are two of the best indexes to use as a benchmark for small-cap performance. Read Answer >>
  4. How can I find out if a company I like is included in an index?

    Learn how to find out what indexes include a company's stock. Determine the importance of predicting future price movement ... Read Answer >>
  5. Is there an index for tracking mid-cap stocks?

    Learn the specifics about indexes available for tracking companies with market capitalizations in the medium-sized, small ... Read Answer >>
Hot Definitions
  1. Intrinsic Value

    Intrinsic value is the perceived or calculated value of a company, including tangible and intangible factors, and may differ ...
  2. Current Assets

    Current assets is a balance sheet account that represents the value of all assets that can reasonably expected to be converted ...
  3. Volatility

    Volatility measures how much the price of a security, derivative, or index fluctuates.
  4. Money Market

    The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities ...
  5. Cost of Debt

    Cost of debt is the effective rate that a company pays on its current debt as part of its capital structure.
  6. Depreciation

    Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life and is used to account ...
Trading Center