NASDAQ — what is the NASDAQ index?

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.

Quick Answer

NASDAQ is both a stock exchange in New York — the world's second-largest, known for technology listings — and a stock index. The NASDAQ Composite covers all ~3,000 listed companies, while the NASDAQ-100 tracks the 100 largest non-financial companies and is what most investors mean by "investing in NASDAQ." Over 50% of its weight is IT (Apple, Microsoft, Nvidia), making it more concentrated and volatile than the S&P 500, with ~18% average annual returns over 10 years but deeper drawdowns. European investors can access it via UCITS ETFs like CNDX or EQQQ.

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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:

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?

Freenance tracks NASDAQ ETFs in your portfolio and shows how the technology portion of your portfolio impacts overall performance and your Financial Freedom Runway.

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FAQ

Is NASDAQ the same as the NASDAQ-100 index?

No. NASDAQ is the name of the stock exchange in New York, while NASDAQ-100 is an index tracking the 100 largest non-financial companies listed there. NASDAQ Composite is a separate, broader index covering nearly all NASDAQ-listed companies.

Why is NASDAQ-100 considered a tech index?

Because over 50% of its weight comes from technology companies like Apple, Microsoft, Nvidia, Amazon, and Alphabet. Although the index includes some consumer and healthcare names, IT sector concentration dominates its performance and volatility profile.

Can I invest in NASDAQ-100 from Poland?

Yes, through UCITS ETFs available on European exchanges such as iShares NASDAQ 100 (CNDX), Invesco EQQQ, or Amundi NASDAQ 100. Most Polish brokers offering foreign markets give access to these instruments. This is not investment advice — always check the KID/KIID before buying.

Is NASDAQ-100 riskier than the S&P 500?

Historically yes — NASDAQ-100 has shown deeper drawdowns (e.g. −33% in 2022) but also higher long-term returns. Higher concentration in a single sector means stronger swings in both directions. Past performance does not guarantee future results.

What's the difference between buying AAPL directly and buying a NASDAQ-100 ETF?

Buying AAPL gives you exposure to a single company, while a NASDAQ-100 ETF spreads your money across 100 companies. The ETF reduces single-name risk but you give up the chance to outperform the index with a winning stock pick.