NASDAQ Composite vs NASDAQ 100

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

See the top company holdings Top holdings for each fund
NASDAQ Composite vs NASDAQ 100 performance Compare historical data

The NASDAQ Composite and NASDAQ 100 are both stock market indices, which means they’re collections of stocks that are designed to reflect the performance of the market. In the UK we have the FTSE 100 and the FTSE 250, while the US has the Dow Jones, the S&P 500, the NASDAQ Composite and the NASDAQ 100, among others.

You can invest in an index through an index fund, which is a fund that either holds the stocks in the index or holds stocks in an attempt to mirror the performance of the index — a good index fund has performance close to the index it’s attempting to imitate.

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.

In order to be part of the NASDAQ 100 index, companies must:

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

The companies in the top 100 of eligible companies, by market capitalisation, are part of the index. It is rebalanced annually, although there are some instances when it gets rebalanced earlier.

List of top 10 stocks

  • 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 the number of stocks and in 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 (around £18.72 trillion).

NASDAQ Composite vs NASDAQ 100: Which is more diversified?

Both the NASDAQ Composite and the NASDAQ 100 have heavy weightings in technology, 51.42% and 41% respectively. There aren’t any financial companies in the NASDAQ 100, so you’re less diversified if you invest in it, but you could pair it with an investment in the NASDAQ Financial-100, which only holds financial companies.

NASDAQ Composite vs NASDAQ 100 chart

Platforms where you can invest in the NASDAQ Composite and the NASDAQ 100

These trading apps allow you to invest in companies within the indexes directly or to invest in funds/ETFs.

Best for international trading
Saxo Share Dealing Account logo
Go to site
Capital at risk. T&Cs apply.
Free professional investing tools
Over 6,000 ETFs & funds
Access 50 global markets
Commissions from $1
Best for mobile ETF trading
XTB ETFs logo
Finder Award
Go to site
Capital at risk. T&Cs apply.
Earn up to 5.2% interest on uninvested cash.
Commission-free trading
Over 5,400 stocks & ETFs
Invest in fractional shares
Best for customer satisfaction
Hargreaves Lansdown Fund and Share Account logo
Finder Award
Go to site
Capital at risk. T&Cs apply.
97% would recommend
Free fund trading
Expert insights
Wide range of accounts

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
HSBC iconHSBC FTSE 100 (HUKX)38.39%Capital at risk
Invesco iconInvesco FTSE 100 (S100)37.21%Capital at risk
Lyxor iconLyxor FTSE 100 (100D)37.27%Capital at risk
iShares iconiShares Core FTSE 100 (CUKX)37.98%Invest with eToroCapital at risk
Vanguard iconVanguard FTSE 100 (VUKE)38.03%Invest with XTBCapital at risk
Xtrackers iconXtrackers FTSE 100 (XDUK)37.61%Capital at risk
IconFund5-year performanceLink to invest
Fidelity iconFidelity NASDAQ Composite (FNCMX)96.87%Capital at risk

All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.

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 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.

What are the top holdings in the NASDAQ 100 and NASDAQ Composite?

LogoCompany
iconApple
iconMicrosoft
iconAmazon
iconTesla
iconNvidia

How to invest in the NASDAQ 100 and NASDAQ Composite

  1. Find a NASDAQ 100 or NASDAQ Composite 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 more towards specific stocks. You should select the fund that best suits your investment goals.
  2. Open a share-trading account. In order to invest in the funds, you’ll need to open a trading account with a broker or platform. Keep in mind that some index funds may only be available on certain brokerages or platforms. The providers in our comparison table below let you invest in US shares. We’ve listed some index funds below that are listed on the London Stock Exchange (LSE).
  3. Deposit funds. You’ll need to deposit funds into your account to begin trading. Some brokers may charge you deposit fees, or you may need to pay a forex fee in order for your pounds to be converted into US dollars.
  4. Buy the index fund. Once your money has been deposited, you can then buy the index fund. You’ll generally pay a small annual fee to invest in an ETF or index fund.

Compare NASDAQ 100 and NASDAQ Composite trading platforms

Table: sorted by promoted deals first

These trading apps allow you to invest in companies within the indexes directly or to invest in funds/ETFs.

Name Product Finder Score Min. initial deposit Price per trade Frequent trader rate Platform fees Offer Link
Finder Award
OFFER
CMC Invest share dealing account
4.4
★★★★★
£0
£0
N/A
£0
Earn up to £1,000 when you transfer a minimum of £25,000 into your CMC account, plus get your first 3 months free when you upgrade to Plus plan. T&Cs apply. Capital at risk.
Go to site

Capital at risk

Platform details
XTB
4.4
★★★★★
£0
£0
£0
£0
Earn up to 5.2% interest on uninvested cash.
Go to site

Capital at risk

Platform details
InvestEngine
4.4
★★★★★
£100
£0
N/A
0% - 0.25%
Get a Welcome Bonus of up to £50 when you invest at least £100 with InvestEngine. T&Cs apply.
Go to site

Capital at risk

Platform details
Saxo Share Dealing Account
4.3
★★★★★
£0
£3
N/A
0.12% per year
Go to site

Capital at risk

Platform details
Finder Award
FREE TRADES
eToro Free Stocks
4.3
★★★★★
$100
£0 on stocks
N/A
£0
Go to site

Capital at risk. Other fees apply.

Platform details
Wealthify
4.2
★★★★★
£1
£0
N/A
0.6%
Go to site

Capital at risk

Platform details
Hargreaves Lansdown Fund and Share Account
4.2
★★★★★
£1
£11.95
£5.95
£0
Get back up to £100 of online trading fees until 21 June. Capital at risk. T&Cs apply.
Go to site

Capital at risk

Platform details
Halifax share dealing account
4.1
★★★★★
£20
£9.50
£0
£36 per year
Go to site

Capital at risk

Platform details
interactive investor Trading Account
4.1
★★★★★
£0
£3.99 (free regular investing)
£0
From £4.99 a month
Get £50 free trading credit when opening a Trading Account by 30 June. Capital at risk. T&Cs apply.
Go to site

Capital at risk

Platform details
Moneyfarm
3.9
★★★★★
£500
£0
N/A
0.35% - 0.75%
Go to site

Capital at risk

Platform details
TILLIT
Not yet rated
£1
N/A
N/A
0.4%
Go to site

Capital at risk

Platform details
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Bottom line

The NASDAQ has several different indices, including the NASDAQ Composite and the NASDAQ 100. These are designed to give you some insight into how a 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 are harder to come by, but they do exist.

Make sure you branch out into stocks in other countries to further diversify your investment portfolio.

Frequently asked questions

All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.

Avatar

Written by

Zoe Stabler DipFA

Zoe was a senior writer at Finder specialising in investment and banking, and during this time, she joined the Women in FinTech Powerlist 2022. She is currently a senior money writer at Be Clever With Your Cash. Zoe has a BA in English literature and a Diploma for Financial Advisers. She has several years of experience in writing about all things personal finance. Zoe has a particular love for spreadsheets, having also worked as a management accountant. In her spare time, you’ll find Zoe skating at her local ice rink. See full profile

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