What Is the NASDAQ 100?

The NASDAQ 100 includes many large-cap technology companies.

The NASDAQ 100 is an index based on the 100 largest NASDAQ stocks by market capitalization. Most stocks in the index are large-cap technology companies like Cisco, Google, Intel and Microsoft.

Selection Criteria

The NASDAQ 100 contains both domestic and international stocks that trade on the NASDAQ, excluding financials.

Background

The index was launched in 1985 and reached its peak of popularity in the late '90s during the technology and Internet boom.

NASDAQ 100 vs. NASDAQ Composite

Historically, there is little difference between the moves of the index and the entire NASDAQ market, as the 100 largest issues weigh heavily on the NASDAQ's performance. So the NASDAQ 100 and the NASDAQ Composite can be used interchangeably.

How to Trade

The best way to trade the index is through the PowerShares QQQ Trust ETF (QQQQ), an exchange-traded fund based on the NASDAQ 100.

References

• NASDAQ: NASDAQ-100 Index