Nasdaq 100 Index 2025: Latest Prices, Composition & Trading Insights
Explore the Nasdaq 100 Index in 2025 — a dynamic collection of the 100 largest non-financial companies listed on Nasdaq. Learn about its sector breakdown, weighting methodology, top companies, and how to invest effectively.
What Is the Nasdaq 100 Index?
The Nasdaq 100 Index represents the 100 largest and most actively traded non-financial companies listed exclusively on the Nasdaq stock exchange. This index spans diverse industries including technology, healthcare, consumer goods, and more, while excluding financial firms such as banks and investment companies.
Key Highlights
- The index is weighted by modified market capitalization, balancing the influence of the largest companies.
- It features sectors like technology, consumer discretionary, healthcare, industrials, telecommunications, and utilities.
- Leading companies include tech giants such as Apple, Microsoft, Amazon, Tesla, and Meta.
- Investors can access the index via ETFs, mutual funds, futures, options, and annuities.
How Is the Nasdaq 100 Weighted and Maintained?
Only securities trading solely on Nasdaq exchanges qualify for inclusion. Eligible assets include common stocks, American depositary receipts, and tracking stocks, with a minimum trading history of three months and average daily trading value of at least $5 million.
The index uses a modified capitalization weighting system to prevent overconcentration by the largest firms. Nasdaq conducts quarterly reviews to rebalance and maintain sector diversity, ensuring a balanced representation of all components.
Sector Composition of Nasdaq 100 as of Mid-2024
- Technology – 62.25%
- Consumer Discretionary – 17.02%
- Healthcare – 5.95%
- Industrials – 4.09%
- Telecommunications – 3.87%
- Consumer Staples – 3.34%
- Basic Materials – 1.65%
- Utilities – 1.20%
- Energy – 0.44%
Top 10 Nasdaq 100 Companies by Weight (2024)
- Apple Inc. – 8.75%
- Microsoft – 7.41%
- NVIDIA – 6.32%
- Amazon – 5.25%
- Meta Platforms – 4.76%
- Broadcom – 4.44%
- Alphabet (A shares) – 2.49%
- Alphabet (C shares) – 2.42%
- Tesla – 2.37%
- Costco Wholesale – 2.34%
Special Rebalancing Insights
On July 24, 2023, Nasdaq performed a rare special rebalance to reduce the dominance of the top five stocks, which had collectively surpassed 48% of the index weight. This adjustment decreased weights for tech leaders and Tesla, while increasing exposure to companies like Alphabet, Meta, Netflix, and Costco, promoting broader diversification and mitigating concentration risk.
While concerns about volatility arose, the market showed resilience with only a brief dip before resuming upward momentum in late 2023.
How to Invest in the Nasdaq 100 Index
Investors seeking broad exposure to leading non-financial Nasdaq companies can choose from ETFs, mutual funds, futures, options, and annuities tracking the Nasdaq 100. ETFs, in particular, offer an accessible and cost-effective way to participate without purchasing individual stocks.
Understanding Nasdaq 100 and Its Investment Potential
The Nasdaq 100 represents a powerful barometer of innovation-driven sectors and top-performing companies. Whether you’re a growth-oriented investor or seeking sector diversification, the index presents an effective vehicle aligned with evolving market trends.
Conclusion
As of 2024, the Nasdaq 100 Index remains a premier benchmark showcasing 100 of the largest non-financial companies on the Nasdaq exchange. With its diversified sector representation and balanced weighting approach, it offers investors a comprehensive snapshot of market-leading firms. Using ETFs and related financial products, investors can efficiently gain exposure to this influential index and capitalize on growth opportunities across technology and other dynamic sectors.
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