Understand What is the NASDAQ 100 Index Fund? What is the Composition and How to Trade in NASDAQ 100 Index.
Understand What is the NASDAQ 100 Index Fund? What is the Composition, Methodology for Eligibility and How to Trade in NASDAQ 100 Index.
What is the NASDAQ 100 Index?
There are over 3,300 U.S Companies listed on the NASDAQ Stock Exchange. The NASDAQ 100 Index is a bucket of the Top 100 Busily Traded Non-financial U.S Companies Listed on the NASDAQ Stock Exchange.
The index comprises of companies from various Stock Market Sectors like – Information Technology, Healthcare, Consumer Discretionary, Communication Services, Industrial, Consumer Staples, Energy, Utilities, Real Estate and Materials.
What is the NASDAQ 100 Index Fund?
An index fund is a type of mutual fund that focuses on a specific index, such as the S&P 500 (Index of Top 500 Largest companies listed on stock exchanges in the United States) or the NASDAQ 100 Index.
Such funds are managed passively rather than by Fund Managers . This drops down fees and other expenses.
Methodology and Composition of the NASDAQ 100 Index
Methodology
Did even Warren Buffett bother about the Methodology of NASDAQ 100 Index? In case you are interested in understanding, read this Document,
Composition
The index comprises of companies from various Stock Market Sectors like – Information Technology, Healthcare, Consumer Discretionary, Communication Services, Industrial, Consumer Staples, Energy, Utilities, Real Estate and Materials.
US Top 10 Companies by Market Cap cover a large portion of the index. Over 50% of the index is occupied by companies in the IT Sector. Rest is occupied by companies in other sectors.
Sector wise Holdings of Companies in NASDAQ 100 Index
- Information Technology: 48.82%
- Consumer Discretionary: 16.28%
- Communication Services: 16.1%
- Health Care: 7%
- Consumer Staples: 6.85%
- Industrials: 3.55%
- Utilities: 1.39%
- Not Classified: 0.3%
List of Top 10 Companies in the Nasdaq-100 Index
| Rank | Company | Allocation (%) |
| 1. | Apple | 13.56% |
| 2. | Microsoft Corporation | 10.49% |
| 3. | Alphabet Inc Class C | 3.68% |
| 4. | Alphabet Inc Class A | 3.55% |
| 5. | Amazon.com | 6.87% |
| 6. | Tesla Inc | 4.04% |
| 7. | Meta Platforms Inc Class A | 2.71% |
| 8. | Nvidia Corporation | 2.47% |
| 9. | Broadcom Inc | 1.73% |
| 10. | Cisco Systems Inc | 1.68% |
How to Trade NASDAQ 100 Index?
The NASDAQ 100 is traded through the Invesco QQQ Trust. It is an exchange-traded fund (ETF) that tracks the Nasdaq-100 Index.
FAQs: NASDAQ 100 Index
What is the Nasdaq 100 Index Fund?
The NASDAQ-100 Index is a Basket of Top 100 Most Actively Traded Non-Financial Stocks Listed in the NASDAQ Stock Exchange.
What is the difference between Nasdaq and Nasdaq-100?
- The NASDAQ Stock Exchange Lists Stocks of over 3,300 Listed Companies.
- The NASDAQ-100 Index is a Basket of Top 100 Most Actively Traded Non-Financial Stocks Listed in the NASDAQ Stock Exchange.
How many companies are in the Nasdaq-100?
The Nasdaq-100 comprises of 102 equity securities issued by 101 non-financial companies.
Can you buy shares of Nasdaq-100?
You can invest in NASDAQ-100 Via ETFs, mutual funds, options, futures and annuities.
Conclusion
Though, The Nasdaq-100 Index comprises of 102 equity securities issued by Top and Largest 101 non-financial companies listed on the NASDAQ stock exchange., it doesn’t guarantees of making money from the share trading.
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