Nasdaq 100 is one of the most prominent large-cap growth indices in the world. Many companies listed in the Nasdaq 100 operate in the tech sector. That is why many investors who are focused investing in tech stocks also invest in this index to hedge their funds.
What is Nasdaq 100?
Nasdaq 100 is a stock market index composed of the 100 largest and most actively traded companies in the United States of America in the non- financial sector and are segmented under technology, retail, industrial, biotechnology, health care, telecom, transportation, media and services sectors.
Who Should Invest in Nasdaq 100?
1. Tech stocks investors
Nasdaq 100 is home to the four iconic tech companies that reached the trillion market cap in the US. They are Apple (AAPL), Amazon (AMZN), Microsoft (MSFT) and Alphabet (GOOG, GOOGL). Another valuable tech companies such as Adobe (ADBE), Cisco (CSCO), Intel (INTC), Qualcomm (QCOM), NVIDIA (NVDA), Advanced Micro Devices (AMD), Micron (MU) and Baidu (BIDU) also contribute for the growth of Nasdaq 100.
2. Long-term investors
Historical charts reflect how Nasdaq 100 has been steadily growing every year. Although there have been some bear market trends and economy crises, Nasdaq 100 has always regained its growing momentum. Buying more shares during market crashes like that of Coronavirus era give more opportunities to long term investors.
3. Investors who like strong diversified portfolio
Since Nasdaq 100 is a basket of numerous excellent companies with large market capitalization listed in the Nasdaq stock market, investing in this index is a great way to diversify your money. This can also help an investor to minimize risk by allocating their funds to different companies instead of one.
4. Investors who like innovation and emerging markets
Nasdaq 100 companies are carefully chosen based on growth potential and innovation. These companies adapt to the ever-evolving technology and emerging markets. If you like innovation and you are confident with companies making impact towards progress in the economy like Tesla, Facebook, Microsoft, Intel, Starbucks, Netflix and many more, invest in Nasdaq 100.
List of Top Companies in Nasdaq 100 in 2020:
|Alphabet Inc. Class A||GOOGL|
|Alphabet Inc. Class C||GOOG|
|Cisco Systems Inc.||CSCO|
|PayPal Holdings Inc.||PYPL|
|Costco Wholesale Corp.||COST|
|Charter Communications Inc.||CHTR|
|Texas Instruments Inc.||TXN|
|Gilead Sciences Inc.||GILD|
|T-Mobile US Inc.||TMUS|
|Mondelez International Inc.||MDLZ|
|Vertex Pharmaceuticals Inc.||VRTX|
|Automatic Data Processing Inc.||ADP|
|Booking Holdings Inc.||BKNG|
|Advanced Micro Devices Inc.||AMD|
|Intuitive Surgical Inc.||ISRG|
|Regeneron Pharmaceuticals Inc.||REGN|
|Micron Technology Inc.||MU|
|Activision Blizzard Inc.||ATVI|
|Applied Materials Inc.||AMAT|
|JD.com Inc. (American Depository Shares)||JD|
|Analog Devices Inc.||ADI|
|Walgreens Boots Alliance Inc.||WBA|
|Kraft Heinz Co.||KHC|
|Lam Research Corp.||LRCX|
|Electronic Arts Inc.||EA|
|Xcel Energy Inc.||XEL|
|Ross Stores Inc.||ROST|
|Monster Beverage Corp.||MNST|
|Cognizant Technology Solutions Corp.||CTSH|
|O'Reilly Automotive Inc.||ORLY|
|Marriott International Inc. Class A||MAR|
|Lululemon Athletica Inc.||LULU|
|NXP Semiconductors NV||NXPI|
|Baidu Inc. (American Depository Shares)||BIDU|
|Sirius XM Holdings Inc.||SIRI|
|Seattle Genetics Inc.||SGEN|
|Verisk Analytics Inc.||VRSK|
|NetEase Inc. (ADR)||NTES|
|IDEXX Laboratories Inc.||IDXX|
|Alexion Pharmaceuticals Inc.||ALXN|
|CoStar Group Inc.||CSGP|
|Cadence Design Systems Inc.||CDNS|
|ASML Holding NV||ASML|
|Microchip Technology Inc.||MCHP|
|Dollar Tree Inc.||DLTR|
|Citrix Systems Inc.||CTXS|
|Skyworks Solutions Inc.||SWKS|
|Align Technology Inc.||ALGN|
|BioMarin Pharmaceuticals Inc.||BMRN|
|Zoom Video Communications Inc.||ZM|
|Check Point Software Technologies Ltd.||CHKP|
|Maxim Integrated Products Inc.||MXIM|
|Take-Two Interactive Software Inc.||TTWO|
|Trip.com Group Ltd. (ADR)||TCOM|
|Ulta Beauty Inc.||ULTA|
|Western Digital Corp.||WDC|
|Liberty Global PLC Class C||LBTYK|
|Expedia Group Inc.||EXPE|
|Willis Towers Watson PLC||WLTW|
|Fox Corp. Class A||FOXA|
|Fox Corp. Class B||FOX|
|United Airlines Holdings Inc.||UAL|
|Liberty Global PLC Class A||LBTYA|
Note that there are currently 103 symbols on the list because some companies listed two share classes. Example, Alphabet has GOOGL (Class A) and GOOG (Class C).
How to Invest in Nasdaq 100 Index?
1. Buy shares through a trusted broker
We use one of the world’s trusted online brokers, eToro, in trading and investing Nasdaq 100, stocks, and ETF (Exchange Traded Funds). eToro is very user-friendly and also provides other top indexes like S&P 500, Dow Jones 30, UK 100 and many more.
What we like about using eToro is that we can buy Nasdaq 100 for as low as $1000 instead of $7000.
2. Invest in ETF that tracks the Nasdaq 100
Another convenient and more affordable way to invest in Nasdaq 100 is by investing in ETF (Exchange Traded Fund that tracks the performance of Nasdaq 100 such as Invesco QQQ ETF or Powershares QQQ. For as low as $500, you can already start investing an ETF that tracks the Nasdaq 100.
Other Top Indexes in the World:
- Top 50 Companies in the S&P 500 Index
- Top 30 Companies in the Dow Jones Index
- Top 30 Companies in the PSEI Index
*This content is for information and educational purposes only and should never be considered as investment advice. Past performance is not a guarantee of future results. All investments have risks. Risk only capital you’re not afraid to lose.
*The author has no business relationship to the companies whose stocks have been mentioned.