What is the Nasdaq-100? A Guide to One of the World's Most-Watched Indexes

This article is an educational overview of the Nasdaq-100 index, explaining that it tracks 100 of the largest non-financial companies listed on Nasdaq and serves as a key benchmark for technology and U.S. growth stocks. It highlights the index’s modified market-cap weighting, quarterly rebalances, annual December reconstitution, and more than $1.7 trillion in global exposure linked to it as of June 30, 2026. The piece compares the Nasdaq-100 with the S&P 500, emphasizing the Nasdaq-100’s higher growth orientation, stronger sector concentration, and greater volatility. It also notes that investors gain exposure mainly through ETFs, with QQQ, and similar products from BlackRock and State Street, as well as mutual funds. Market-wise, the article reinforces the Nasdaq-100’s role as a proxy for AI, software, semiconductors, and large-cap innovation leadership, with long-term returns cited as roughly 500% over 10 years versus about 300% for the S&P 500.