Market Structure
What is Nasdaq Composite & Nasdaq-100?
The Nasdaq Composite tracks all ~3,000+ stocks listed on the Nasdaq exchange. The Nasdaq-100 is a subset of the 100 largest non-financial Nasdaq stocks, heavily concentrated in mega-cap technology (Apple, Microsoft, NVIDIA, Amazon, Meta, Alphabet, Tesla).
Formula
Both are market-cap-weighted (modified for Nasdaq-100). Nasdaq Composite inception: 1971 (base 100). Nasdaq-100: 1985.
How to Interpret
Nasdaq-100 is tracked by QQQ (~$300B AUM), the third-most-traded ETF in the world. The composite is 'the tech and growth index', typically more volatile than the S&P 500, with higher returns in bull markets and steeper drawdowns in bear markets (e.g. -33% in 2022). India has no exact tech-heavy equivalent, closest is Nifty IT.
Typical Ranges
Long-term return: ~12–13% annually (higher beta vs S&P 500). Expect 25%+ drawdowns in tech-led sell-offs. Use QQQ for low-cost exposure.