Nasdaq-100: A gauge of the modern economy

3d barchart graphic
Key takeaways

The Nasdaq-100, which is tracked by Invesco EQQQ Nasdaq-100 UCITS ETF (EQQQ), provides exposure to a wide variety of industries, including many leading technology companies.


The Nasdaq-100 Index has outperformed the S&P 500 in recent years partly due to the strength of tech companies innovating in their sectors.


Artificial intelligence (AI) and other technological advances may provide a tailwind to companies committed to research and development and disrupting their industries.

The Nasdaq-100 and S&P 500 are two of the most popular US equity indices. Exchange-traded funds (ETFs) designed to follow these two benchmarks are often used to anchor core portfolios. In EMEA, passive ETFs tracking the Nasdaq-100 have about $35 billion in assets compared with $228 billion for those tracking the S&P 500. But could that gap narrow in coming years?

It’s difficult to predict but a case could be made that the Nasdaq-100 could be the index of the future, as its constituents have a demonstrated ability to be nimble and adaptive to shifting trends in the market. Whether it’s Amazon starting as an online book retailer and expanding into web services through AWS, or Apple starting as a computer maker and becoming one of the largest cell phone manufacturers in the world, many Nasdaq-100 companies have shown the ability to diversify as consumer needs have evolved.

  • Investment risks

    For complete information on risks, refer to the legal documents. Please see below for more information. Value Fluctuation, Equity, Concentration, Securities Lending.

The benchmark to beat 

Is nearly 15 years of outperformance a fluke or a meaningful trend?

Let’s check the numbers. Since 1 January 2008, the Nasdaq-100 Index has delivered a cumulative total return of 906%, more than double the 376% return of the S&P 500 Index. That works out to an annualized return of 15.33% for the Nasdaq-100 compared with 10.13% for the S&P 500. 

Cumulative Total Return Performance: Nasdaq-100 versus the S&P 500

Source: Nasdaq Indexes, period shown is from December 31, 2007 to June 30, 2023.

Past performance does not predict future returns. Source: Nasdaq indices, period shown is from 31 December 2007 to 29 February 2024, in USD.  An investor cannot invest directly in an index. Index returns do not represent Fund returns. Please see below for standardised rolling 12-month performance for the past 5 years for the S&P 500 and Nasdaq-100 indices. 1 An investment in this fund is an acquisition of units in a passively managed, index tracking fund rather than in the underlying assets owned by the fund. 

Homing in on disruption and innovation

Why has the Nasdaq-100 historically outperformed over the past 15 years? There have been several factors at work, but one important reason has been the strong performance of innovative technology stocks over the past decade, particularly the tech leaders. For example, the technology sector in the S&P 500 has delivered a 21.73% annualized total return over the last 10 years, compared with 12.69% for the broader S&P 500. That leadership makes sense given the rapid pace of technological adoption in recent years. The Nasdaq-100 index has about 51% exposure to the tech sector versus roughly 30% for the S&P 5001.

Although the Nasdaq-100’s overweight exposure to the outperforming tech sector, when compared to the S&P 500, has been a tailwind for the past 10 years, it’s important to remember that the benchmark is much more than just a technology index. The Nasdaq-100 includes companies from other sectors such as consumer products and healthcare that are transforming their respective industries to help drive growth. After all, the technology sector doesn’t have a monopoly on innovation.

Some of the most innovative companies in the world, particularly in Silicon Valley, have opted to list their stock on the Nasdaq, a trend that doesn’t seem destined to end anytime soon. The Nasdaq-100 index is associated with innovation and many cutting-edge companies. As a result, it’s not surprising that many firms want to align their brands with the innovative stamp of Nasdaq, which introduced the world’s first electronic trading platform in 1971.

Related insights

  • ETF

    Nasdaq-100 Index: Where some of the biggest innovators live

    By Invesco

    The Nasdaq-100 is an index that tracks the 100 largest non-financial companies by market capitalization listed on the Nasdaq.

  • ETF

    Nasdaq-100: More than just a tech index

    By Invesco

    The Nasdaq-100 Index is often thought of as a “tech index,” but it’s much more than that. Listen in as two of our ETF strategists discuss why technologically focused companies choose to list on the Nasdaq stock exchange

    13 October 2023
  • Nasdaq-100: How innovation is powering your cup of coffee

    By Invesco

    Technology has disrupted just about everything. Learn how innovation is driving something as simple as your favourite cup of coffee.


  • All data: Bloomberg, as at 29 February 2024

    1.       Sector exposure uses GICS (Global Industry Classification Standard) to classify securities. Invesco, as of 29 February 2024. 



Feb '23-Feb '24

Feb '22-
Feb '23

Feb '21-Feb '22

Feb '21-Feb '22 Feb '19 -
Feb '20

YTD (last EoM)

S&P 500 Net Total Return Index







NASDAQ-100 Notional Net Total Return Index







Investment risks

  • Value Fluctuation: The value of investments, and any income from them, will fluctuate. This may partly be the result of changes in exchange rates. Investors may not get back the full amount invested.

    Equity: The value of equities and equity-related securities can be affected by a number of factors including the activities and results of the issuer and general and regional economic and market conditions. This may result in fluctuations in the value of the Fund.

    Concentration: The Fund might be concentrated in a specific region or sector or be exposed to a limited number of positions, which might result in greater fluctuations in the value of the Fund than for a fund that is more diversified.

    Securities lending: The Fund may be exposed to the risk of the borrower defaulting on its obligation to return the securities at the end of the loan period and of being unable to sell the collateral provided to it if the borrower defaults. 

Important information

  • Data as at 31 March 2024, unless otherwise stated. By accepting this material, you consent to communicate with us in English, unless you inform us otherwise. This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security, or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.

    Views and opinions are based on current market conditions and are subject to change. For information on our funds and the relevant risks, refer to the Key Information Documents/Key Investor Information Documents (local languages) and Prospectus (English, French, German), and the financial reports, available from A summary of investor rights is available in English from The management company may terminate marketing arrangements. UCITS ETF’s units / shares purchased on the secondary market cannot usually be sold directly back to UCITS ETF. Investors must buy and sell units / shares on a secondary market with the assistance of an intermediary (e.g. a stockbroker) and may incur fees for doing so. In addition, investors may pay more than the current net asset value when buying units / shares and may receive less than the current net asset value when selling them. For the full objectives and investment policy please consult the current prospectus.

    NASDAQ® and NASDAQ-100 IndexSM are trade/service marks of The Nasdaq Stock Market, Inc. (which with its affiliates is referred to as the "Corporations") and are licensed for use by Invesco. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).

    Issued by Invesco Investment Management Limited, Ground Floor, 2 Cumberland Place, Fenian Street, Dublin 2, Ireland, regulated by the Central Bank of Ireland.

    Belgium: This product is offered in Belgium under the Public Offer Exemption. This material is intended only for professional investors and may not be used for any other purpose nor passed on to any other investor in Belgium.

    Switzerland: Issued by Invesco Asset Management (Schweiz) AG, Talacker 34, 8001 Zurich, Switzerland. The representative and paying agent in Switzerland is BNP PARIBAS, Paris, Zurich Branch, Selnaustrasse 16 8002 Zürich. The Prospectus, Key Information Document, and financial reports may be obtained free of charge from the Representative. The ETFs are domiciled in Ireland.

    Germany: German investors may obtain the offering documents free of charge in paper or electronic form from the issuer or from the German information agent (Marcard, Stein & Co AG, Ballindamm 36, 20095 Hamburg, Germany).

    Italy: The publication of the supplement in Italy does not imply any judgment by CONSOB on an investment in a product. The list of products listed in Italy, and the offering documents for and the supplement of each product are available: (i) at (along with the audited annual report and the unaudited half-year reports); and (ii) on the website of the Italian Stock Exchange

    Israel: Issued by Invesco Asset Management Limited, Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire, RG9 1HH, United Kingdom.  No action has been taken or will be taken in Israel that would permit a public offering of the Fund or distribution of this document to the public in Israel. This Fund has not been approved by the Israel Securities Authority (the ISA). Accordingly, the Fund shall only be sold in Israel to an investor of the type listed in the First Schedule to the Israeli Securities Law, 1968, which has confirmed in writing that it falls within one of the categories listed therein (accompanied by external confirmation where this is required under ISA guidelines), that it is aware of the implications of being considered such an investor and consents thereto, and further that the Fund is being purchased for its own account and not for the purpose of re-sale or distribution. This document may not be reproduced or used for any other purpose, nor be furnished to any other person other than those to whom copies have been sent. Nothing in this document should be considered investment advice or investment marketing as defined in the Regulation of Investment Advice, Investment Marketing and Portfolio Management Law, 1995 (“the Investment Advice Law”). Investors are encouraged to seek competent investment advice from a locally licensed investment advisor prior to making any investment. Neither Invesco Ltd. Nor its subsidiaries are licensed under the Investment Advice Law, nor does it carry the insurance as required of a licensee thereunder. This document does not constitute an offer to sell or solicitation of an offer to buy any securities or fund units other than the fund offered hereby, nor does it constitute an offer to sell to or solicitation of an offer to buy from any person or persons in any state or other jurisdiction in which such offer or solicitation would be unlawful, or in which the person making such offer or solicitation is not qualified to do so, or to a person or persons to whom it is unlawful to make such offer or solicitation.