Nasdaq vs S&P 500

Find out the key differences between the Nasdaq and the S&P 500, where they overlap, plus some key points to consider before investing.

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Nasdaq vs S&P performance Compare historical data

If you’re investing in US stocks, then you’ve probably come across the S&P 500 and the Nasdaq. But what’s the difference between the S&P 500 and the Nasdaq and which should you invest in? Let’s dive in and take a closer look.

The S&P 500 is a stock market index and the Nasdaq is a stock exchange. There’s a lot of overlap between the two because plenty of stocks listed on the Nasdaq exchange are also members of the estemeed S&P 500 list. So, many of the top 10 stocks are the same. If you’re invested in both, you may not be as diversified as you think. Here are the top 10 stocks in both indices.

What is the best S&P 500 vs Nasdaq index fund?

The best Nasdaq or S&P 500 index fund will depend on your circumstances.

All S&P 500 index funds should be tracking the full index, whereas with the Nasdaq stock exchange, it’s the Nasdaq 100 that tends to be the most popular index fund, which only contains 100 stocks.

Here are some of the best performing S&P 500 and Nasdaq funds according to JustETF:

ETF
5-year performance (to Apr. '25)
Link
Invesco S&P 500 ETF (SPXP) Invesco S&P 500 ETF icon 128.92% Invest Capital at risk
Xtrackers S&P 500 Swap ETF 1C (XSPX) Xtrackers S&P 500 Swap ETF 1C icon 128.40% Invest Capital at risk
HSBC S&P 500 ETF (HSPX) HSBC S&P 500 ETF icon 114.18% Invest Capital at risk
iShares Core S&P 500 ETF USD (Acc) (CSP1) iShares Core S&P 500 ETF USD (Acc) icon 127.06% Invest Capital at risk
SPDR® S&P 500 ETF (SPX5) SPDR® S&P 500 ETF icon 112.58% Invest Capital at risk
Vanguard S&P 500 ETF (VUSA) Vanguard S&P 500 ETF icon 112.09% Invest Capital at risk
Fund5-year performance (to Feb. ’24)Link to invest
Amundi NASDAQ 100 (ANXG)Amundi icon164.88%Invest with IGCapital at risk
Lyxor NASDAQ 100 ETF (NASL)SPDR icon163.76%Invest with IGCapital at risk
iShares NASDAQ 100 (CNX1)iShares icon161.79%Invest with eToroCapital at risk
Invesco NASDAQ 100 (EQSG)Invesco iconN/AInvest with IGCapital at risk
Xtrackers NASDAQ 100 (XNAQ)DWS Xtrackers iconN/AInvest with IGCapital 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.


Platforms to invest in the Nasdaq and S&P 500

These trading apps allow you to invest in companies within the S&P 500 index or listed on the Nasdaq stock exchange, or alternatively use a fund or exchange-traded fund (ETF).

Best for 0% commission stocks
eToro logo
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Capital at risk. T&Cs apply.
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Fractional shares
Get dividend payments
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XTB logo
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Capital at risk. T&Cs apply.
Earn 4.5% on uninvested funds
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5,400+ stocks/ETFs
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IG logo
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13,000+ shares to invest in
Choose from over 5,000 ETFs
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Top 10 stocks on the Nasdaq and S&P 500

Nasdaq 100 and S&P 500 overlap

The following companies are constituents of both the Nasdaq 100 index and the S&P 500 index. This information is updated daily.

Stock Industry
Apple Inc (AAPL) Consumer electronics
Microsoft Corporation (MSFT) Software
NVIDIA Corporation (NVDA) Semiconductors
Amazon.com Inc (AMZN) Internet retail
Meta Platforms Inc. (META) Internet content & information
Alphabet Inc Class A (GOOGL) Internet content & information
Broadcom Inc (AVGO) Semiconductors
Tesla Inc (TSLA) Auto manufacturers
Alphabet Inc Class C (GOOG) Internet content & information
Costco Wholesale Corp (COST) Discount stores
Netflix Inc (NFLX) Entertainment
Cisco Systems Inc (CSCO) Communication equipment
Linde plc Ordinary Shares (LIN) Specialty chemicals
PepsiCo Inc (PEP) Beverages - non-alcoholic
Intuitive Surgical Inc (ISRG) Medical instruments & supplies
Intuit Inc (INTU) Software
Palantir Technologies Inc. Class A Common Stock (PLTR) Software
Qualcomm Incorporated (QCOM) Semiconductors
Adobe Systems Incorporated (ADBE) Software
Amgen Inc (AMGN) Drug manufacturers
Advanced Micro Devices Inc (AMD) Semiconductors
Texas Instruments Incorporated (TXN) Semiconductors
Booking Holdings Inc (BKNG) Travel services
Honeywell International Inc (HON) Conglomerates
Comcast Corp (CMCSA) Telecom services
Gilead Sciences Inc (GILD) Drug manufacturers
T-Mobile US Inc (TMUS) Telecom services
Automatic Data Processing Inc (ADP) Software
Vertex Pharmaceuticals Inc (VRTX) Biotechnology
Applied Materials Inc (AMAT) Semiconductor equipment & materials
Palo Alto Networks Inc (PANW) Software
Starbucks Corporation (SBUX) Restaurants
Analog Devices Inc (ADI) Semiconductors
Micron Technology Inc (MU) Semiconductors
Intel Corporation (INTC) Semiconductors
Lam Research Corp (LRCX) Semiconductor equipment & materials
KLA-Tencor Corporation (KLAC) Semiconductor equipment & materials
Crowdstrike Holdings Inc (CRWD) Software
Mondelez International Inc (MDLZ) Confectioners
O'Reilly Automotive Inc (ORLY) Specialty retail
Cintas Corporation (CTAS) Specialty business services
Cadence Design Systems Inc (CDNS) Software
Synopsys Inc (SNPS) Software
Regeneron Pharmaceuticals Inc (REGN) Biotechnology
PayPal Holdings Inc (PYPL) Credit services
Constellation Energy Corp (CEG) Utilities
Fortinet Inc (FTNT) Software
Roper Technologies, Inc. (ROP) Software
DoorDash, Inc. Class A Common Stock (DASH) Internet content & information
CSX Corporation (CSX) Railroads
American Electric Power Co Inc (AEP) Utilities
Autodesk Inc (ADSK) Software
Workday Inc (WDAY) Software
PACCAR Inc (PCAR) Farm & heavy construction machinery
Copart Inc (CPRT) Specialty business services
Marriott International Inc (MAR) Lodging
Airbnb Inc (ABNB) Travel services
Paychex Inc (PAYX) Software
NXP Semiconductors NV (NXPI) Semiconductors
Exelon Corporation (EXC) Utilities
Monster Beverage Corp (MNST) Beverages - non-alcoholic
Fastenal Company (FAST) Industrial distribution
Ross Stores Inc (ROST) Apparel retail
Verisk Analytics Inc (VRSK) Consulting services
Xcel Energy Inc (XEL) Utilities
Keurig Dr Pepper Inc (KDP) Beverages - non-alcoholic
Baker Hughes Co (BKR) Oil & gas equipment & services
Cognizant Technology Solutions Corp Class A (CTSH) Information technology services
Charter Communications Inc (CHTR) Telecom services
Axon Enterprise Inc. (AXON) Aerospace & defense
GE HealthCare Technologies Inc. (GEHC) Health information services
CoStar Group Inc (CSGP) Real estate services
Lululemon Athletica Inc. (LULU) Apparel retail
Old Dominion Freight Line Inc (ODFL) Trucking
Electronic Arts Inc (EA) Electronic gaming & multimedia
IDEXX Laboratories Inc (IDXX) Diagnostics & research
Take-Two Interactive Software Inc (TTWO) Electronic gaming & multimedia
ANSYS Inc (ANSS) Software
DexCom Inc (DXCM) Medical devices
Diamondback Energy Inc (FANG) Oil & gas
Kraft Heinz Co (KHC) Packaged foods
CDW Corp (CDW) Information technology services
Microchip Technology Inc (MCHP) Semiconductors
Warner Bros Discovery Inc (WBD) Entertainment
Biogen Inc (BIIB) Drug manufacturers
ON Semiconductor Corporation (ON) Semiconductors

What is the Nasdaq composite index?

The Nasdaq Composite Index was launched in 1971 and had an initial value of 100. It includes all the companies listed on the Nasdaq stock exchange.

It shouldn’t be confused with the Nasdaq 100, which as index containing the biggest 100 companies in the Nasdaq stock exchange. The Nasdaq is the second biggest stock exchange in the US after the New York Stock Exchange (NYSE).

The Nasdaq is quite tech stock heavy, with plenty of modern growth-focused firms rather than more traditional value stocks.

What is the S&P 500?

The S&P 500 was founded in 1982 and it includes 500 of the largest companies trading on all 3 of the main US stock exchanges: the NYSE, Nasdaq and Cboe.

The S&P 500 has strict criteria for its constituents. A company must have a market cap of at least $14.6 billion, be highly liquid and the public must own at least 10% of its shares.

The S&P is spread across a wider range of sectors than the tech-heavy Nasdaq index. This means it’s slightly less exposed to concentrated crashes within one sector.

Which is the best investment, the Nasdaq or the S&P 500?

The best investment for you depends on your investment goals. Here’s a summary of what to consider:

  • Are you looking for current income or future potential growth? If you want future growth then stocks listed on the Nasdaq may be suitable but if you want current income then the S&P 500 may be more useful.
  • What is your attitude to investment risk? The tech heavy Nasdaq index tends to be more volatile in price movements compared to the S&P 500 as it contains a higher concentration of tech-focused growth stocks.
  • What other investments do you hold in your portfolio? The S&P 500 and Nasdaq overlap in som eareas, so you need to check what else you hold within your portfolio if you want it to be diversified. If you want more exposure to tech stocks then the Nasdaq could be a good choice, but the S&P 500 still has a strong tech offering.

Nasdaq vs S&P 500 chart

Nasdaq vs S&P 500: Which is bigger?

The S&P 500 contains 500 of the biggest companies in the US whereas the Nasdaq Composite contains more than 3,000 stocks. However some Nasdaq companies are very small and the total value of the Nasdaq Composite is actually lower than the S&P 500.

Nasdaq vs S&P 500: Which is worth more?

The S&P is worth an eye-watering $50 trillion (about £40 trillion). In contrast, the NASDAQ composite index is worth a grand total of around $20 trillion (around £16 trillion) despite having over 3,000 stocks in total. That’s because it includes a large proportion of smaller tech companies.

Nasdaq vs S&P 500: Concentration

Both the Nasdaq and the S&P 500 are extremely concentrated, with the largest companies making up a big proportion of the total market value of the index and the exchange.

For the Nasdaq, the top 20 companies are mainly tech giants and account for 47% of the overall value of the index. Likewise, the S&P 500 is extremely concentrated towards the biggest companies with just 4 companies making up nearly 21% of the S&P 500 index

Nasdaq vs S&P 500: Stock quality

Quality investing is where investors look for certain criteria in their investments. It’s based on management credibility as well as balance sheet stability and financial performance.

The S&P arguably contains a higher proportion of quality stocks than the Nasdaq. That’s because they need to meet a strict verification criteria to be included in the S&P 500.

If you want to invest purely in quality stocks then you could choose the S&P quality index which is a pre-vetted group of quality companies which are selected based on return on equity and other financial ratios.

Nasdaq vs S&P 500: Which is more diversified?

Both indices are fairly diversified as you will spread your investment across many underlying US stocks. But both indices are also heavily weighted towards the bigger companies. For example, if you invest purely in the S&P 500 index then 21% of your investment will be in the top 4 biggest companies in the index.

Instead, most experts recommend that you also diversify your investments across different asset classes and different geographical areas. Then you won’t be too badly affected if one business fails.

Is it better to invest in the S&P 500 or the Nasdaq?

Zoe Stabler

Finder expert Zoe Stabler answers

Whether the Nasdaq or S&P 500 is best for you will depend on your circumstances and the other funds and assets in your portfolio.

If you want more exposure to potential growth stocks then the Nasdaq might be a good choice with its emphasis on tech stocks. If you prefer a more general US index fund then the S&P might be right for you as you’ll be invested in 500 of the biggest companies in the US.

How to invest in the S&P 500 and Nasdaq

  1. Find an S&P 500 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 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.

Bottom line

When comparing the Nasdaq stock exchange and S&P 500 index, it’s important to remember that there’s a big overlap. If you want to be invested in the biggest US companies, then you might want to choose the S&P 500. In contrast, if you want to invest more tech-focused companies then you might prefer the Nasdaq 100.

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.


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To make sure you get accurate and helpful information, this guide has been edited by George Sweeney, DipFA as part of our fact-checking process.
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Written by

Writer

Alice Guy is a Suffolk-based finance writer, a busy mum of 4 older kids and a self-confessed personal finance geek. She trained as a chartered accountant with KPMG London before working for Tesco Plc as a business analyst. She loves to write about budgeting, saving, investing and building wealth. See full bio

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