NASDQ-100 vs NASDAQ Composite: What's the Difference

Introduction

The NASDAQ-100 and NASDAQ Composite are two of the most well-known stock market indexes in the world. Both indexes track the performance of companies listed on the NASDAQ stock exchange, but there are some key differences between them.

What is the NASDAQ-100?

The NASDAQ-100 is an index of the 100 largest, most actively traded non-financial companies listed on the NASDAQ stock exchange. The index is weighted by market capitalization, so the largest companies have a greater impact on the index's performance.

Key Features of the NASDAQ-100:

• Tracks the 100 largest non-financial companies on the NASDAQ
• Weighted by market capitalization
• Heavily influenced by technology and growth stocks

What is the NASDAQ Composite?

The NASDAQ Composite is an index of all companies listed on the NASDAQ stock exchange, regardless of size or industry. The index is weighted by market capitalization, so the largest companies have a greater impact on the index's performance.

Key Features of the NASDAQ Composite:

• Tracks all companies listed on the NASDAQ
• Weighted by market capitalization
• More diversified than the NASDAQ-100

Which Index is Right for You?

The NASDAQ-100 is a better choice for investors who are interested in investing in the largest, most actively traded technology and growth stocks. The NASDAQ Composite is a better choice for investors who are looking for a more diversified exposure to the NASDAQ stock exchange.

Conclusion

The NASDAQ-100 and NASDAQ Composite are two of the most important stock market indexes in the world. Both indexes track the performance of companies listed on the NASDAQ stock exchange, but there are some key differences between them. The NASDAQ-100 is a better choice for investors who are interested in investing in the largest, most actively traded technology and growth stocks. The NASDAQ Composite is a better choice for investors who are looking for a more diversified exposure to the NASDAQ stock exchange.