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Nasdaq Composite vs Nasdaq 100

Find out the key differences between the Nasdaq Composite and the Nasdaq 100 plus key points to consider before investing.

Popular Nasdaq index stocks View stock list
Nasdaq index performance Compare historical data

A stock market index tracks how part, or all, of the market is performing by looking at the performance of select, representative stocks. Popular US indices include the NASDAQ Composite, NASDAQ 100, Dow Jones and S&P 500. Popular UK indices include the FTSE 100 and FTSE 250.

You can invest in an index through an index fund, which holds stocks included in the index or seeks to replicate the performance of the index with similar stocks. A good index fund performs similarly to the index it’s attempting to mirror.

What’s the difference between the Nasdaq Composite and the Nasdaq 100?

The Nasdaq Composite includes virtually all of the stocks listed on the Nasdaq stock exchange. In order to be eligible to be part of the index, a stock should be listed exclusively on the Nasdaq market and must be a common stock of a company (so any preferred stocks and ETFs will be excluded). The index is supposed to represent the whole Nasdaq market, rather than the largest companies.

The Nasdaq 100 index is a collection of 100 stocks in a range of sectors, including industrial, technology, retail, telecommunication, biotechnology, healthcare, transport, media and service companies. It specifically does not include banking companies, insurance firms, brokerage firms or mortgage loan companies. These sectors are found in the Nasdaq Financial-100.

Qualification criteria for companies in the Nasdaq 100

Companies included in the Nasdaq 100 index must satisfy the following:

  • Be listed exclusively on Nasdaq in the Global Select or Global Market tiers
  • Have been publicly offered on an established US market for at least 3 months
  • Have an average daily volume of 200,000 stocks
  • Be current in regards to quarterly and annual reports
  • Not be in bankruptcy proceedings

Out of all the companies that satisfy this criteria, only the top 100 companies (plus or minus a few) by market capitalization get to be in the index. The list is rebalanced annually, although there are some instances when it’s rebalanced earlier.

  • Apple
  • Microsoft
  • Amazon
  • Tesla
  • Nvidia
  • Alphabet (C shares)
  • Alphabet (A shares)
  • Meta Platforms
  • ASML Holding
  • Broadcom

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Nasdaq Composite vs Nasdaq 100: Which is bigger?

The Nasdaq Composite is virtually every stock on the exchange, while the Nasdaq 100 is just a selection of 100 stocks that you can find on the exchange. Naturally, this means that the Nasdaq Composite is a lot larger than the Nasdaq 100 in terms of stock volume and value.

Nasdaq Composite vs Nasdaq 100: Which is worth more?

Again, because the Nasdaq 100 is a mere snippet of the Nasdaq Composite, the Nasdaq Composite is worth a lot more. It’s estimated that the Nasdaq stock exchange is worth $23.46 trillion.

Nasdaq Composite vs Nasdaq 100: Which is more diversified?

Both the Nasdaq Composite and the Nasdaq 100 are heavily weighted towards technology stocks—51.42% and 41% respectively. There aren’t any financial companies in the Nasdaq 100, so you won’t be very diversified if you invest solely in this index. But you could also invest in the Nasdaq Financial-100, which only includes financial companies.

Platforms that let you invest in Nasdaq index stocks

These trading apps allow you to invest in companies listed on the Nasdaq as well as funds/ETFs.

1 - 5 of 5
Name Product Finder Rating Available Asset Types Stock Trading Fee Account Fee Signup Offer Table description
Interactive Brokers
Finder Score:
★★★★★
4.3 / 5
Stocks, Bonds, Options, ETFs, Currencies, Futures
min $1.00, max 0.5%
$0
N/A
Winner for Best Overall Broker in the Finder Stock Trading Platform Awards.
CASHBACK
CIBC Investor's Edge
Finder Score:
★★★★★
3.8 / 5
Stocks, Bonds, Options, Mutual Funds, ETFs
$4.95–$6.95
$0 if conditions met, or $100
100 free trades + up to $4,500 cash back
An easy-to-use platform with access to a variety of tools to help you trade with confidence.
Questrade
Finder Score:
★★★★★
4.3 / 5
Stocks, Bonds, Options, Mutual Funds, ETFs, GICs, International Equities, Precious Metals
$4.95 - $9.95
$0
Get $50 in free trades when you fund your account with a minimum of $1,000.
Opt for self-directed investing and save on fees or get a pre-built portfolio to take out some of the guesswork.
CASHBACK
Qtrade Direct Investing
Finder Score:
★★★★★
3.7 / 5
Stocks, Bonds, Options, Mutual Funds, ETFs, GICs
$6.95 - $8.75
$0 if conditions met, otherwise $25/quarter
Get up to $2,000 cashback as a new or existing client. Use promo code CASHBONUS2024. Ends March 4, 2024.
Low trading commissions and an easy-to-use platform with access to powerful tools and a wide selection of investment options.
Finder Award
FREE TRADES
Wealthsimple
Finder Score:
★★★★★
3.7 / 5
Stocks, ETFs
$0
$0
Get $25 when you open a Wealthsimple account and fund at least $150.
Pay no commissions when you trade Canadian stocks and ETFs with Wealthsimple.
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What’s the best Nasdaq 100 and Nasdaq Composite index fund?

Here are some of the best performing Nasdaq 100 and Nasdaq Composite funds according to JustETF.

IconFund5-year performanceLink to invest
iShares logoiShares NASDAQ 100 (CNX1)140.72%Buy on Interactive Brokers
Invesco logoInvesco NASDAQ 100 (EQSG)N/ABuy on Interactive Brokers
Amundi logoAmundi NASDAQ 100 (ANXG)147.14%Buy on Interactive Brokers
Lyxor logoLyxor NASDAQ 100 ETF (NASL)141.72%Buy on Interactive Brokers
DWS Xtrackers logoXtrackers NASDAQ 100 (XNAQ)N/ABuy on Interactive Brokers
IconFund5-year performanceLink to invest
Fidelity logoFidelity NASDAQ Composite (FNCMX)96.87%Buy on Interactive Brokers

Is it better to invest in the Nasdaq 100 or the Nasdaq Composite?

Zoe Stabler

Finder expert Zoe Stabler answers

If you’re looking for a whole-of-market investment that gets you access to most of the stocks on the Nasdaq, then the Nasdaq Composite is a good option, as it’s composed of more than 2,500 shares. This would be well diversified, although it holds a higher weighting in technology companies.

The Nasdaq 100 would let you invest in a number of companies across all the sectors in the exchange based on their market cap, which gives you high value companies.

Popular stocks in the Nasdaq 100 and Nasdaq Composite

LogoCompany
Apple logoApple
Microsoft logoMicrosoft
Amazon logoAmazon
Tesla logoTesla
Nvidia logoNvidia

How to invest in the Nasdaq 100 and Nasdaq Composite

  1. Find an NYSE or Nasdaq ETF, index fund or mutual fund. Some index funds track the performance of all stocks on the index, whereas others only track a certain number of stocks or are weighted towards specific stocks. You should select the fund that best suits your investment goals.
  2. Open a stock trading account. To invest in ETFs or mutual funds, you’ll need to open a trading account with a broker or trading platform. Keep in mind that some index funds may only be available on certain brokerages or platforms. The providers in our comparison table let you invest in US stocks. Some of the index funds above are listed on the Toronto Stock Exchange (TSX).
  3. Deposit funds. You’ll need to deposit funds into your account to begin trading. You may need to pay a foreign conversion fee to convert your Canadian dollars into US dollars, so you can buy US stocks.
  4. Buy the index fund. Once your money has been deposited, you can buy the index fund. Most ETFs or index funds come with a small annual fee to cover fund management expenses.

Bottom line

There are several indices that track stocks on the Nasdaq including the Nasdaq Composite and the Nasdaq 100. These are designed to give you some insight into how a particular market is performing, with the Nasdaq 100 focusing solely on companies that aren’t in the financial industry. You can invest in both of these indices with index funds. Nasdaq Composite funds exist but are harder to come by.

Consider diversifying your investments by exploring stocks in multiple sectors and funds that track indices in other countries.

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Frequently asked questions

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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