What Is the NASDAQ 100? A Complete Guide to the Top Tech-Driven Index

The NASDAQ 100 is a major stock market index that includes 100 of the largest non-financial companies listed on the NASDAQ exchange. It is heavily weighted toward technology, featuring industry leaders like Apple, Microsoft, Amazon, and NVIDIA. Known for its growth potential and innovation-driven focus, the index attracts both investors and traders looking to capitalize on market trends. In this guide, you’ll learn what the NASDAQ 100 is, which companies are included, how it compares to other indices, and how to start trading it effectively.

What Is the NASDAQ?

The NASDAQ, short for the National Association of Securities Dealers Automated Quotations, is a major global stock exchange known for its fully electronic trading system. Launched in 1971, it was the first exchange to enable automated trading, making it faster and more accessible than traditional floor-based exchanges like the New York Stock Exchange (NYSE).

Today, the NASDAQ is home to many of the world’s most innovative and growth-oriented companies. It is especially dominant in the technology sector, with listings that include Apple, Microsoft, Amazon, and NVIDIA. While the NYSE is often associated with older, more established firms, the NASDAQ has become the go-to exchange for companies in tech, biotech, e-commerce, and other forward-looking industries.

Because of its strong focus on innovation, the NASDAQ plays a central role in global markets and serves as the foundation for major indices like the NASDAQ 100.

NASDAQ Trading Hours

The Nasdaq Stock Market operates during regular trading hours from 9:30 a.m. to 4:00 p.m. Eastern Time, Monday through Friday. During these hours, investors can trade a wide range of securities listed on the exchange, including stocks, options, and ETFs.

For those seeking additional flexibility, the Nasdaq also offers extended trading hours:

• Pre-market trading: 4:00 a.m. to 9:30 a.m. ET
• After-hours trading: 4:00 p.m. to 8:00 p.m. ET

While these extended sessions allow investors to react to news and events outside of regular hours, it’s important to note that trading volumes and liquidity may be lower, which can affect pricing and execution. Whether trading during standard or extended hours, the Nasdaq Stock Market provides investors with access to some of the world’s most dynamic companies.

Discover the best time to buy and sell stocks. 

What Is the NASDAQ 100?

The NASDAQ 100 is a stock market index that tracks the 100 largest non-financial companies listed on the NASDAQ exchange, ranked by market capitalization. While it excludes banks and insurance firms, it includes major players across sectors like technology, healthcare, consumer services, and industrials.

The index uses a modified market-cap weighting, which means larger companies like Apple and Microsoft have more influence on its performance. To stay current, the NASDAQ 100 is reviewed and rebalanced quarterly, ensuring it reflects the top-performing and most relevant companies on the exchange.

What Are the Companies in the NASDAQ 100?

If you’re wondering what is in the NASDAQ 100, the index is made up of the 100 largest non-financial companies listed on the NASDAQ exchange, ranked by market capitalization. These companies span industries such as technology, consumer services, healthcare, and industrials, though the index is heavily weighted toward technology firms.

The NASDAQ 100 includes many of the most recognized and influential companies in the world. These are businesses that shape global innovation, commerce, and consumer trends. Together, the top 10 companies make up more than half of the index’s total weight, meaning their performance can significantly impact the index’s overall movement.

Below is a table showing the top 10 companies in the NASDAQ 100, along with their ticker symbols, estimated market capitalizations (as of mid-2025), and their approximate weight in the index:

Note: Market cap and index weight figures are estimates based on the most recent available data. Exact values may change as the market fluctuates or during quarterly index rebalancing.

Discover the top 10 largest companies in the world by market cap.

Historical Performance of the NASDAQ 100

The NASDAQ 100 index (NDX) has shown strong long-term growth, especially during periods of tech sector expansion. However, it can also be highly volatile in response to macroeconomic shifts.

Here’s how the index has performed in recent years:

• 2020: Gained approximately +47%, rising from around $8,800 to over $13,000 by year-end, fueled by demand for digital services during the pandemic.
• 2021: Added another +27%, reaching nearly $16,500 as tech and consumer stocks continued to rally.
• 2022: Fell about -33%, dropping to around $11,000 due to inflation concerns and rising interest rates.
• 2023: Rebounded strongly with a +43% gain, ending the year above $15,700, led by the surge in AI, semiconductors, and large-cap tech earnings.

Note: Price levels are approximate closing values of the NASDAQ 100 (NDX) and are rounded for clarity.

This historical data highlights the index’s strong growth potential, while also reminding investors of its susceptibility to volatility, particularly due to its heavy exposure to the technology sector.

How to Trade or Invest in the NASDAQ 100

If you’re looking to gain exposure to the NASDAQ 100 index, here’s a simple step-by-step guide to get started, whether you’re an investor or an active trader.

Step 1: Understand the NASDAQ 100

Start by learning what the index represents, its sector breakdown, and how its top companies influence price movement.

Step 2: Choose Your Trading Method

Decide whether to invest through ETFs, trade CFDs for flexibility and leverage, or use futures and options if you’re more advanced.

Step 3: Select a Regulated Broker

Pick a reliable broker that offers NASDAQ 100 access, strong security, and fast execution. VT Markets provides CFD trading with tight spreads and real-time tools.

Step 4: Open and Fund Your Account

Register, verify your identity, and deposit funds using your preferred payment method. Choose an amount that suits your risk appetite and goals.

Step 5: Analyze the Market

Use technical analysis (e.g., moving averages, RSI) and follow fundamental analysis (e.g., Fed news, earnings reports) to plan your entries and exits.

Explore the key differences between technical and fundamental analysis.

Step 6: Place Your Trade

Decide whether to go long (buy) or short (sell), set your trade size, apply a stop-loss and take-profit, then execute the order.

Step 7: Implement Risk Management Strategies

Protect your capital by applying risk management strategies such as keeping position sizes small, using stop-losses, and avoiding over-leverage — especially in volatile conditions.

Step 8: Monitor and Manage Your Position

Track price action, review economic updates, and adjust your trade if necessary. Close the trade when your target is met or conditions change.

NASDAQ 100 vs. Other Major Indices

The NASDAQ 100 is often compared with other major U.S. indices like the S&P 500, Dow Jones, and Russell 2000. While all of them track large portions of the U.S. stock market, each one has a different composition and market focus.

The table below highlights the key differences between these indices, helping you understand how the NASDAQ 100 fits into the broader market landscape:

The NASDAQ 100 stands out for its strong focus on high-growth and innovation-led companies, especially in technology. In contrast, the S&P 500 offers more sector diversification, while the Dow Jones reflects more mature, industrial firms, and the Russell 2000 targets smaller, emerging businesses.

In Summary

• The NASDAQ 100 is a major stock index made up of 100 of the largest non-financial companies listed on the NASDAQ exchange.
• It is dominated by technology and consumer-focused companies, many of which are global leaders.
• The index has delivered strong returns historically, but can also be volatile.
• Investors can access it through ETFs, futures, CFDs, and options.
• Understanding what is in the NASDAQ 100 helps you make informed decisions, especially if you focus on innovation-driven sectors.
• It is widely followed by traders and analysts as a benchmark for growth stocks and tech-sector performance.

Start Trading the NASDAQ 100 Today with VT Markets

VT Markets offers you direct access to the NASDAQ 100 through CFDs on both MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms. You can start risk-free with a VT Markets demo account to practice in real market conditions, and access our Help Centre anytime for guidance and support.

With competitive spreads, lightning-fast execution, and a user-friendly interface, VT Markets allows you to trade one of the world’s most influential indices confidently—whether you’re aiming for short-term price movements or long-term tech-sector exposure.

Start trading the NASDAQ 100 today with VT Markets and experience a smarter way to trade.

Frequently Asked Questions (FAQs)

1. What is the NASDAQ 100?

The NASDAQ 100 is a stock market index that includes 100 of the largest non-financial companies listed on the NASDAQ exchange. It mainly features technology, consumer, and healthcare companies.

2. What companies are in the NASDAQ 100?

Some of the top companies include Apple, Microsoft, Amazon, NVIDIA, Meta Platforms, and Alphabet. The full list is updated quarterly and reflects the largest and most traded non-financial companies on the NASDAQ.

3. How can I invest or trade in the NASDAQ 100?

You can invest via ETFs like QQQ, or trade it through futures, CFDs, and options. Platforms like VT Markets offer flexible access via CFDs with tools for both new and experienced traders.

4. Is the NASDAQ 100 only tech companies?

While the index is technology-heavy, it also includes companies from consumer services, healthcare, industrials, and communication sectors.

5. Can I trade the NASDAQ 100 with VT Markets?

Yes. VT Markets offers trading on the NASDAQ 100 through CFDs on MetaTrader 4 and MetaTrader 5 platforms, with competitive spreads and a user-friendly interface.

6. Is the NASDAQ 100 a good investment?

The NASDAQ 100 has shown strong historical performance, particularly during tech-led market cycles. However, it can be volatile, so it may suit investors who are seeking growth and can tolerate short-term fluctuations.