NASDAQ — what is the NASDAQ index?
Definition of NASDAQ Composite and NASDAQ-100 indices. How they differ, what companies they contain, and how to invest from Poland.
Definition
NASDAQ is both the name of a stock exchange and a stock index. The NASDAQ exchange (National Association of Securities Dealers Automated Quotations) is the world's second-largest stock exchange, known for listing technology companies.
NASDAQ Composite vs NASDAQ-100
- NASDAQ Composite — includes all ~3,000 companies listed on the NASDAQ exchange
- NASDAQ-100 — index of 100 largest non-financial companies on NASDAQ. This is the index we usually mean when talking about "investing in NASDAQ"
What makes NASDAQ-100 special?
NASDAQ-100 is essentially a technology index — over 50% of its weight consists of IT sector companies:
- Apple, Microsoft, Nvidia, Amazon, Meta, Alphabet, Tesla
- But also: Costco, PepsiCo, Amgen (not just tech!)
Compared to the S&P 500, NASDAQ-100 is more concentrated and volatile, but has historically delivered higher returns.
Historical performance
- Average annual return of NASDAQ-100 (last 10 years): ~18% (in USD)
- For comparison S&P 500: ~12%
- But: deeper declines in bear markets (2022: -33%)
Higher returns come with higher volatility and risk.
How to invest in NASDAQ from Poland?
Popular NASDAQ-100 ETFs available to European investors:
| ETF | TER | ISIN |
|---|---|---|
| iShares NASDAQ 100 (CNDX) | 0.33% | IE00B53SZB19 |
| Invesco NASDAQ 100 (EQQQ) | 0.30% | IE0032077012 |
| Amundi NASDAQ 100 | 0.23% | LU1681038243 |
Available through brokers like XTB, mBank eMakler, or Bossa.
NASDAQ vs S&P 500 — what to choose?
- S&P 500 — broader, more diversified, less volatile
- NASDAQ-100 — higher historical returns, but higher risk and concentration in tech
Many investors combine both: e.g., 70% S&P 500 + 30% NASDAQ-100.
How can Freenance help?
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