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How to invest in the Nasdaq
Investing in the Nasdaq provides exposure to some of the largest companies in the world.
Have you ever heard “the Nasdaq” mentioned in financial news and wondered what it means? Depending on the context, the Nasdaq could refer to a stock exchange or a stock market index that tracks many of the companies listed on that exchange. Keep reading to find out what the Nasdaq is, how it works, and how to invest in the Nasdaq from Canada.
Key takeaways
- The Nasdaq is a tech-heavy US stock exchange and the world’s second-largest stock exchange.
- The Nasdaq Composite Index is a major stock index that tracks almost all stocks listed on the Nasdaq stock exchange.
- It’s easy to trade Nasdaq stocks, ETFs and mutual funds from Canada with online brokers.
How to invest in the Nasdaq from Canada
- Choose a trading platform. Compare online brokers to find the right trading platform for your needs. Make sure the platform provides access to Nasdaq stocks, is easy to use and charges low or no brokerage fees.
- Open and fund an account. Create an account by providing your personal information, contact details and proof of ID. You’ll then need to deposit money into your trading account, usually by electronic funds transfer or e-Transfer.
- Research investment options. Research any Nasdaq stock, ETF or mutual fund thoroughly to make sure it’s the right investment for you.
- Place a buy order. Place a market order to buy your desired number of shares straight away, or place a limit order to buy the stock when your desired price becomes available.
- Monitor your investment. Track the performance of your investment and reassess occasionally to make sure it still suits your financial goals.
What is the Nasdaq?
The Nasdaq is an American stock exchange based in New York City. It’s the world’s second largest stock exchange by market capitalization after the New York Stock Exchange, and there are over 3,000 companies listed on the Nasdaq. Nasdaq is an acronym for National Association of Securities Dealers Automated Quotations.
But when you hear financial news reports mentioning “the Nasdaq”, they could also be referring to the Nasdaq Composite Index. This index includes most companies listed on the Nasdaq stock exchange, and along with the S&P 500 and the Dow Jones Industrial Average, it’s one of the world’s major stock indices.
What stocks are in the Nasdaq Composite Index?
The Nasdaq Composite Index features some of the largest companies in the world. The top 10 in terms of market capitalization (as of the time of writing) are shown in the table below.
| Company | Ticker | Weighting | Stock price | Market cap | Buy on Questrade |
|---|---|---|---|---|---|
 | 7.52% | $204.64 | $4.9 trillion (USD) | Buy now | |
 | 6.95% | $555.80 | $3.9 trillion (USD) | Buy now | |
 | 5.40% | $349.51 | $5 trillion (USD) | Buy now | |
 | 4.07% | $240.35 | $2.6 trillion (USD) | Buy now | |
 | 2.09% | $288.93 | $3.4 trillion (USD) | Buy now | |
| GOOG-C | 1.99% | $278.22 | $3.9 trillion (USD) | Buy now |
 | 3.36% | $614.99 | $1.6 trillion (USD) | Buy now | |
 | AVGO | 2.42% | $325.48 | $1.7 trillion (USD) | Buy now |
 | TSLA | 1.74% | $385.19 | $1.6 trillion (USD) | Buy now |
 | 2.42% | $66.39 | $259.6 billion (USD) | Buy now |
How do stocks make it into the Nasdaq Composite Index?
To qualify for inclusion in the Nasdaq Composite Index, a security must be listed exclusively on the Nasdaq stock exchange. However, if the security was also listed on another US exchange prior to January 1, 2004 and has maintained that listing, it is still eligible for inclusion in the Nasdaq Composite Index.
The Nasdaq Composite Index is market capitalization weighted. This means the company’s representation in the index is proportional to its market capitalization, so companies with larger market caps will have a larger impact on the performance of the index than companies with smaller market caps.
The following security types are eligible for inclusion in the index:
- American Depositary Receipts (ADRs)
- Common stocks
- Limited partnership interests
- Ordinary shares
- Shares or units of beneficial interest
What is the Nasdaq-100?
The Nasdaq-100 is another major stock index. Unlike the Nasdaq Composite Index, it’s made up of the 100 largest non-financial stocks listed on the Nasdaq stock exchange. The Nasdaq-100 has a strong focus on technology stocks, and a security must have a three-month average daily trading value of at least $5 million to qualify for the index.
How to invest in the Nasdaq-100
Major companies like Apple, Amazon, NVIDIA and Microsoft feature in the Nasdaq-100.
And while you can invest in individual stocks if you wish, the simplest and most cost-effective way to invest in the Nasdaq-100 is to buy shares in a Nasdaq-100 ETF or mutual fund. These funds are designed to track the performance of the index and they make it easy to gain exposure to a wide range of growth stocks.
Let’s break down your options if you want to invest in the Nasdaq from Canada.
Two ways to invest in the Nasdaq
No matter whether you’re talking about the Nasdaq stock exchange, the Nasdaq Composite Index or the Nasdaq-100, there are two main ways to gain exposure to Nasdaq investments.
1. Invest in a Nasdaq ETF or mutual fund
The easiest way to access Nasdaq investments is to buy shares in an ETF or mutual fund designed to track either the Nasdaq-100 or the Nasdaq Composite Index. These index funds make it quick and simple to invest in a diversified portfolio of Nasdaq stocks.
Nasdaq-100 ETFs are the most common option, providing exposure to major companies like NVIDIA and Apple that are included in the index.
Remember to check the management expense ratio (MER) when comparing funds. You also have the option of choosing a fund that is hedged to CAD in order to reduce the impact of any currency fluctuations on your investment.
Examples of Nasdaq ETFs and mutual funds
| Fund | Ticker | Type | Management expense ratio |
|---|---|---|---|
| BMO NASDAQ 100 Equity ETF Fund Series F | BMO18120 | Mutual fund | 0.40% |
| BMO NASDAQ 100 Equity Hedged to CAD Index ETF | ZQQ | ETF | 0.39% |
| Fidelity Nasdaq Composite Index ETF | ONEQ | ETF | 0.21% |
| Global-X Nasdaq-100 Index ETF | QQQX | ETF | 0.29% |
| Horizons NASDAQ-100 Index ETF | HXQ | ETF | 0.28% |
| Invesco NASDAQ 100 Index ETF – CAD hedged | QQC.F | ETF | 0.20% |
| Invesco Nasdaq Next Gen 100 ETF | QQQJ | ETF | 0.15% |
| iShares NASDAQ 100 Index ETF (CAD-Hedged) | XQQ | ETF | 0.39% |
| iShares Nasdaq Top 30 Stocks ETF | QTOP | ETF | 0.20% |
| TD Nasdaq Index Fund | TDB981 | Mutual fund | 1% |
2. Invest in individual stocks
The second option is to buy stocks of individual companies listed in a Nasdaq index. This involves buying shares of companies like Tesla, Apple and Amazon.
It’s a more time-intensive option than investing in an ETF or mutual fund, but it gives you complete control over which companies you want to add to your portfolio. You’ll also need to pay more brokerage fees if you’re buying individual stocks, so it’s worth looking for a platform that offers commission-free trading of US stocks.
Dive deeper: Best stock trading apps in Canada
Investing in the Nasdaq for experienced traders: CFDs
If you’re an experienced trader, you can also gain Nasdaq exposure by trading CFDs. Contracts for difference are derivative products that allow you to speculate on the price movement of an underlying asset. You can trade CFDs on individual stocks as well as Nasdaq ETFs, and it’s a matter of predicting whether you think the asset will go up or down in value.
But CFDs are complicated and highly risky, so they’re not suitable for new investors.
Related: Day trading in Canada
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Important information: Powered by Finder.com. This information is general in nature and is no substitute for professional advice. It does not take into account your personal situation. This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, 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 most investors. You do not own or have any interest in the underlying asset. Capital is at risk, including the risk of losing more than the amount originally put in, market volatility and liquidity risks. Past performance is no guarantee of future results. Tax on profits may apply. Consider the Product Disclosure Statement and Target Market Determination for the product on the provider's website. Consider your own circumstances, including whether you can afford to take the high risk of losing your money and possess the relevant experience and knowledge. We recommend that you obtain independent advice from a suitably licensed financial advisor before making any trades.
Is now a good time to invest in the Nasdaq in Canada?
Whether or not now is a good time to invest in the Nasdaq depends on your investment goals, time frame and appetite for risk.
Take a look back at the 10 years to July 2025 and you’ll see that the average annualized return of the Nasdaq-100 (18.4%) has outperformed that of the S&P 500 (13.7%). But that doesn’t mean it’s always the best choice, as shown in 2022, when the Nasdaq-100 dropped more than 32% but the S&P 500 only fell by 18%.
The key thing to remember with the Nasdaq-100 is that it has a strong focus on high-growth tech stocks. This means it offers the potential for higher returns, but it can also experience more volatility. You’ll need to consider how much risk you’re willing to take on, and whether you have a long-term mindset and will be able to ride out any periods of volatility.
Why should I invest in Nasdaq from Canada?
There are several potential benefits of investing in Nasdaq stocks, ETFs or mutual funds. These include:
- World’s largest companies. Some of the world’s largest and best-known companies are listed on the Nasdaq, including Amazon, Apple, NVIDIA and many more. Investing in Nasdaq allows you to gain exposure to these companies.
- Diversification. Investing in Nasdaq stocks allows you to diversify your portfolio across international markets. And if you invest in a Nasdaq ETF or mutual fund, it’s quick and easy to invest in a diversified basket of stocks.
- Long-term performance. With an average annualized return of 18.4% over the 10 years to July 2025, the Nasdaq-100 has delivered strong long-term returns in the past. Of course, past results are no guarantee of future performance.
- Quick and easy. Several Canadian brokers offer access to US markets, and it’s easy to sign up for an account and start trading.
Risks to watch out for
Like any investment, buying Nasdaq stocks, ETFs or mutual funds comes with risks attached. Here’s what to watch out for:
- FX fees. Brokers will let you deposit in Canadian dollars, then will either convert your funds into US dollars or leave them as Canadian dollars. If your funds are left in CAD, it’s likely you’ll need to pay an FX fee on each trade, which can end up costing more overall.
- Currency fluctuations. Changes in the CAD/USD exchange rate can also impact the total cost of your trades. Investing in a currency-hedged ETF or mutual fund can reduce this risk.
- Tech-heavy. The Nasdaq-100 and Nasdaq Composite are tech-heavy indices, so you’ll need to consider whether your portfolio as a whole is over-exposed to the tech sector. It’s always worth mentioning the burst of the dotcom bubble in March 2000, which saw the Nasdaq Composite Index lose more than 75% of its value.
- Volatility. With its focus on growth stocks, especially tech stocks, the Nasdaq-100 can experience high volatility. So if you’re only investing for the shorter term, you might want to look for a safer index.
How much does it cost to invest in Nasdaq?
The cost of investing in Nasdaq depends on a few factors:
- The broker. While some online brokers offer commission-free stock trading, others will charge a brokerage fee every time you place a buy or sell order. And while many discount brokers don’t have account maintenance fees, some platforms charge this fee if you don’t meet minimum balance requirements.
- Any subscriptions you choose. If you add extra features to your brokerage account, such as real-time market data or access to premium analysis and research, ongoing subscription fees may apply.
- The type of investment. If you invest in a Nasdaq ETF or mutual fund, check the fund management fee that applies. These fees commonly fall in the 0.1-1% range.
- FX fees. You’ll also need to factor currency conversion costs into your calculations when investing in international stocks, ETFs and mutual funds.
Bottom line
It’s easy to invest in Nasdaq stocks, ETFs and mutual funds from Canada, and doing so allows you to diversify your portfolio and gain exposure to some of the world’s biggest companies. Compare online trading platforms before creating an account, and research any investment thoroughly to make sure it’s right for you.
Frequently asked questions about investing in Nasdaq
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