The combined value of all investment products tracking the NDX® ecosystem globally exceeds $500 billion
94 Exchange Traded Products track NDX® in over 20 countries across 6 continents
NEW YORK, Jan. 31, 2025 (GLOBE NEWSWIRE) -- Nasdaq, Inc. (Nasdaq: NDAQ) proudly marks the 40th anniversary of the Nasdaq-100 Index® (NDX®), the world’s preeminent large-cap growth benchmark. Since its inception on January 31, 1985, the index has redefined innovation and transformed the global investment landscape. Over the past four decades, it has evolved into a powerful symbol of growth, resilience, and the groundbreaking spirit of its constituent companies, shaping industries, inspiring entrepreneurs and investors worldwide.
The Nasdaq-100 Index® tracks 100 of the largest, non-financial companies listed on the Nasdaq Stock Market. These companies have an enduring legacy of disruption in their respective markets, empowering growth and prosperity across the globe. The index has delivered a 14.25% compound annualized return since its inception, allowing investors around the world to share in that success. This exceptional performance underscores the transformative power of these businesses and their ability to drive long-term value for investors through public markets.
The Nasdaq-100® has had over 500 members, with six original members still in the index today: Apple, Micron Technology Inc., Intel Corporation, KLA Corporation, PACCAR, and Costco Wholesale Corporation. When the Nasdaq-100® first launched, the median market capitalization of a company in the NDX® was $455 million and the average market capitalization was $580 million. As of December 31, 2024, the median market capitalization of a company in the NDX® was $74 billion, and the average market capitalization was $268 billion.
Driving the Innovation Economy Through Research and Development
The companies in the Nasdaq-100® have a history of accelerating change. As a driving force of innovation and economic growth, they spend between 600-1,200% more on research and development compared to companies residing in broad-based US large cap equity indexes1. Moreover, companies that invest more in research and development have delivered above-average performance across much of the 21st century2, and proven to be resilient over time through different market environments.
“AMD congratulates Nasdaq on celebrating 40 years of the Nasdaq-100 Index,” said Dr. Lisa Su, Chair and Chief Executive Officer, AMD. “We share Nasdaq’s commitment to growth and innovation to deliver value for our stakeholders and are proud to stand alongside the trailblazing companies within this elite group. We look forward to continuing our collaboration with Nasdaq to drive technological and economic advancements in the years to come.”
“Over the past 40 years, the Nasdaq-100 Index® has grown into a powerful embodiment of innovation, resilience, and unparalleled growth. By providing investors with access to the groundbreaking companies shaping the global economy, the index has not only fueled innovation but also enabled the creation of generational wealth,” said Adena Friedman, Chair and CEO at Nasdaq. “From trendsetting startups to global industry giants, the index is a testament to Nasdaq’s unwavering commitment to support companies at all stages of their journey. As we celebrate this significant milestone, we are not only honored by the extraordinary achievements of the companies within the index, but also reaffirm our mission to champion innovation, empower growth and support the companies and investors that shape the future of markets worldwide."
"Today we celebrate the 40th anniversary of the Nasdaq-100 Index®, a globally recognized benchmark of the companies accelerating our economy,” said Emily Spurling, Senior Vice President and Global Head of Indexes at Nasdaq. “This milestone marks a significant moment in our journey as a transparent, rules-based index provider. By creating access to the value chain of leading technology companies across multiple industries, NDX® empowers investors to support and benefit from the next generation of innovation, ensuring they are at the forefront of transformative growth."
The Expansive Nasdaq-100® Global Ecosystem
The characteristics, strength, and significance of the Nasdaq-100® have generated considerable investor demand for access to the index. Subsequently, a global financial ecosystem has developed around NDX®, enabling investors to gain exposure through various investment vehicles tailored to market participants worldwide.
The combined value of all products tracking the NDX® ecosystem globally exceeds $500 billion. Among the investment vehicles growing at an accelerated rate are Exchange Traded Products, with 94 different Nasdaq-100® products currently trading in over 20 countries across 6 continents. The first and largest of these is the Invesco QQQ ETF, which is the second most liquid ETF in the US and has served as a foundational financial product by providing investors with access to the Nasdaq-100®3.
“Congratulations to Nasdaq on the 40th anniversary of the Nasdaq-100 Index®,” said Brian Hartigan, Global Head of ETFs and Index Investments, Invesco. “The evolution of the Nasdaq-100 Index® and Invesco QQQ mirrors the growth and development of technology and innovation, positioning the QQQ as one of the most important large-cap growth strategies with an ever-growing investment audience. We are happy that the long-standing Nasdaq and Invesco collaboration continues to contribute to success of the innovative Nasdaq-100 Index®.”
Beyond Exchange Traded Products, the NDX® ecosystem has also experienced large scale growth and evolution in other asset classes, including index options and futures. From 2023 to 2024 index options that tracked NDX® have seen a 39.5% volume increase in contracts. Additionally, CME’s Nasdaq 100® futures have seen their average notional value traded daily exceed $200 billion in 20244. These products provide investors with additional avenues to gain exposure to the index, while continuing to trade in ways that are familiar, cost effective, or provide risk management abilities.
Nasdaq Global Indexes has been creating innovative, market-leading, transparent indexes since 1971. Today, there are over 10,000 indexes that span geographies, asset classes, and diverse families. The indexes are tracked by financial product sponsors across a wide spectrum of investable products and for asset managers to measure risk and performance. Nasdaq also provides exchange listing, custom index, and design solutions to financial organizations worldwide.
To celebrate the occasion, Nasdaq will host a special closing bell ceremony on Friday, January 31, 2025, commemorating this moment with its long-time clients and partners.
To learn more about the Nasdaq-100® ecosystem, click here.
About Nasdaq Nasdaq (Nasdaq: NDAQ) is a global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at www.nasdaq.com.
The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular financial product or an overall investment strategy. Neither The Nasdaq OMX Group, Inc. nor any of its affiliates makes any recommendation to buy or sell any financial product or any representation about the financial condition of any company or fund. Statements regarding Nasdaq’s proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.
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1 Refers to the S&P 500, Nasdaq US 500 Large Cap Index, and other indexes comprised of the largest few hundred companies listed in the US weighted by market cap. 2 Refers to https://indexes.nasdaqomx.com/docs/NDX%20Extended%20Presentation.pdf. 3 According to Nasdaq ETF Intel as of January 28, 2025. 4 Refers to https://www.cmegroup.com/openmarkets/equity-index/2024/The-Growth-of-Tech-and-25-Years-of-Nasdaq-Futures.html.
