Today is a very special day of our favorite index-Nasdaq-100INDEX® is 40 years old!
In the past forty years, the index has grown into one of the world’s most popular trade and investment product benchmarks. The market value of the Nasdaq-100® stocks exceeds 2024. Investors can also use stocks, ETFs, options and futures to track the products of Nasdaq-100. (Please note that there are many other product types to track NASDAQ-100, including but not limited to structured products and annuity. For simplicity, we have not added other product types to the liquidity analysis described in the document. The daily transaction exceeds more than exceeded the daily transaction exceeding exceeding the more than. The value of $ 620 billion.
The birth of the Nasdaq-100
NASDAQ-100 should not be confused with the NASDAQCOMPOSITE® index. The Nasdaq Comprehensive Index represents each company listed by Nasdaq, and was established in 1971 with the launch of the Nasdaq’s stock market in 1971.
NASDAQ-100 was born on January 31, 1985. It aims to represent the top 100 (non -finance) shares listed on behalf of Nasdaq. At that time, the market value was only $ 58 billion. Today, the world’s largest stocks in the Nasdaq-100 Index, including AAPL, AMZN, NVDA and Goog, adding an amazing amount of $ 27 trillion.
Interestingly, a separate index, Nasdaq Finance 100TM The index also starts from this date and still exists today.
14 % compound returns of more than 500 companies
Since its establishment, as of December 31, 2024, the Nasdaq-100 (NASDAQ-100) has increased by about 20,000 %. This is 14.25 % of the compound returns of 14.25 % per year, while the same time is 11.57 % of the 500 -inch of 500. Considering that the index is a technical bubble poster child, this is even more impressive-as the foam rupture, the index fell by 83 %. This also seems to show the benefits of long -term investment.
Figure 1: Nasdaq-100 indexes since the establishment of QQQ performance and assets
Like all indexes, the ingredients also change over time. IPO created a new company to replace merger and smaller companies. In the past 40 years, Nasdaq 100 has held more than 500 different companies at different times. In fact, only six original companies are still retained in the index: Apple, micron technology, Intel, KLA-TENCOR, PACCAR and Well -beingEssence
Nasdaq is the home of many innovative growth companies
Over time, one of the reasons for the outstanding performance of the Nasdaq-100 Index is because in Nasdaq’s stock, most of the world’s largest and rapid growth technology stocks.
However, over time, the weight of NASDAQ-100 technology stocks classified by the ICB department has changed. Its range ranges from as low as 25 % to almost 70 %. With the passage of time, the leadership of other departments has also changed. As consumer services/as appropriate, the scope of telecommunications and medical care, with the time of time, ranked second in all aspects. (Please note that ICB has changed its industry classification system, and Nasdaq has implemented these changes since 2021. As a part of this change, the consumer service industry has retired, and consumers have freely tailored the industry.) Many of these departments The company is also a family. Names, including Pepsi, Starbucks, Costco, Honeywell, Gilead, Amgen and Biogen.
Figure 2: The weight of the NASDAQ -00-100 technical department is pushed over time over time
Since the financial crisis, the performance of the Nasdaq 100 is better than performance
Since the end of the financial crisis, Nasdaq’s performance has exceeded. Its increased by more than 10 times, defeating other US and international indexes. However, it can be said that the situation is different, because the Nasdaq No. 100 company has also brought higher income growth-recently, it has spent the construction artificial intelligence (AI) hardware and software.
Figure 3: The index performance and income growth have remained consistent since the end of the financial crisis
Contact the global economy
100 companies in Nasdaq’s 100s may be listed by us, but actually represent the global economy.
First, because NASDAQ-100 includes ADR, some indexes believe that it belongs to other countries. At the end of 2024, Nasdaq No. 100 has 10 “non -American” companies, weighing nearly 4 %, including arm,,,,, Lindeand Astrikan.
In addition, almost all companies in the index have global products and labor. FactSet reports that almost half of the Nasdaq 100 income comes from other countries and a large amount of income from Asian countries.
Figure 4: Almost 50 % of the company’s income from overseas
A huge liquidity ecosystem and investor
The NASDAQ-100 Index not only represents a large part of the largest company, but also represents the benchmark of financial products in the world-it has also become the benchmark for some of the most flowing trading vehicles.
The launch of the NDX options (1994), NDX Futures (1996) and QQQ ETF (1999) allow investors to capture the return of the NASDAQ-100 Index. Over time, more and more investment have increased-from leverage ETF to ETF, using income and protection options.
Combined with the transactions of the Nasdaq 100 company, the total liquidity of the Nasdaq 100 Index has increased $ 620 billion Every day, from:
- 100 stocks In the index, the surrounding transactions $ 173 billion every day.
- Dozens of ETFs Use NASDAQ-100 benchmark. These transactions are combined $ 23 billion every day.
- Nasdaq 100 Futures trading 201 billion US dollars every day.
- Option In stock, the NASDAQ-100 Index or NASDAQ-100 track ETF. Around these transactions $ 113 billion The exposure of the Delta adjustment is adjusted every day.
Figure 5: The liquidity in the NASDAQ-100 ecosystem increases more than half trillion dollars in transactions
Happy birthday to Nasdaq!
This is an index that has attracted investors and traders for many years. Therefore, it includes some of the greatest brands in the United States, which creates a way for investors to buy the investment portfolio of the Nasdaq 100 company.
Conversely, this can help investors provide funds for innovation brought by these companies and allow these investors to participate in their income growth, because products are sold to global consumers.
It was surprising that it achieved all this in just 40 years.
