The NASDAQ 100 index (NDX) lists the largest non-financial companies, by market capitalisation, that are on the NASDAQ. Companies such as Apple Inc. and Microsoft are listed on the NASDAQ 100 and because of this, it can often be confused with the NASDAQ Composite.

    It differs from the Dow Jones Industrial Average because it will not allow financial companies to list and the companies that do, do not have to necessarily be American.
    Likewise, it differs from the Standard and Poor’s 500 because of its exclusion of financial companies.

    Trading the NASDAQ 100

    Companies included in the NASDAQ 100 are weighted according to a set of rules that prevent the largest components from having too much influence and increasing market diversification. To ensure this happens there is a once yearly rebalancing of all of the stocks listed on the index.

    Companies from the industrial, technology, retail, IT and telecoms, biotechnology, healthcare, transportation, media and service sectors are all eligible for inclusion on the NASDAQ 100.

    Investors can trade on the Nasdaq 100 using a number of extremely active exchange-traded funds.

    Further information

    NASDAQ 100 web page

    NASDAQ 100 wikipedia