NASDAQ 100 Index

What is the NASDAQ 100 Index?

Contrary to what most people believe, NASDAQ isn’t the tech-savvy stock exchange. While the tech Industry is a crucial component of this world’s leading stock index, NASDAQ is not confined to the companies that work on innovative technologies.

NASDAQ 100 Index can be defined as the top 100 most popular firms in the United States that appear on the NASDAQ stock exchange. This stock exchange includes popular companies from multiple industries, excluding the banking and finance sector. The industries that are included in the NASDAQ 100 index are retail, technology, healthcare, and more. Invesco QQQ Trust is used to monitor the current financial health and overall performance of these top 100 companies listed on the NASDAQ stock exchange.

Each organization needs to be there on the stock exchanges for more than two years to be considered for NASDAQ 100. In addition to that, these companies must maintain the minimum trading volume, which is 200,000. Note that the organizations with a poor track record or a Bankruptcy history are not included in the Invesco QQQ Trust. The trust doesn’t necessarily match the Nasdaq Index, but it plays a significant role in tracking the performance of the stocks and companies mentioned on the list.

Which Industries qualify for the NASDAQ 100 Index?

As mentioned above, the Nasdaq 100 index consists of the assets from different industries (except for the financial and banking sectors). A major portion of the index features the assets from the technology sector. It contributes to 54% of the index weight. Another popular industry that ranks second on the list of the most popular sectors in the NASDAQ index is consumer service. This includes the restaurant, cafes, travel industry, retail shops, and more. A common example of consumer service is Amazon.

The constant growth of Amazon has played an important role in bringing the consumer service sector to the top of the Nasdaq 100 index. Other industries included in the index are healthcare, telecommunication, and more. Basically, this stock exchange covers the sectors that have given the biggest contribution to the Economy’s growth. NASDAQ 100 index presents the list of the leading companies listed on the NASDAQ exchange.

Eligibility criteria for Nasdaq 100 Index

For the securities to appear on the Nasdaq 100 index, they must be a part of the NASDAQ exchange. In other words, it is important for the securities to be listed on this world’s leading stock exchange. Only the companies listed on the NASDAQ exchange get a chance to make it to the top 100 index list. The securities that are listed on this stock exchange include ordinary shares, stocks, and American Depository Receipts.

The surprising fact is that the companies that appear on the 100 index are linked to more than 27 countries across the world. That means this stock exchange features the list of the organizations that dominate the global Market. liquidity, as well as market capitalization, are other important factors that help determine your eligibility for the Nasdaq 100 index.