The Nasdaq-100 Index (NDX) is a stock index composed of 100 of the largest domestic and international non-financial companies listed on the Nasdaq Stock Exchange. The index inclues companies in a variety of sectors, including technology, telecommunications, retail, and healthcare.

The Nasdaq-100 Index is one of the most widely-followed and traded stock indices in the world. It is designed to track the performance of leading non-financial companies listed on the Nasdaq that are not included in the S&P 500 index. Since its inception in 1985, the Nasdaq-100 has become well known for its focus on technology and new economy stocks, making it an important asset for investors looking for exposure to top-performing companies in these sectors.

The Nasdaq-100 is calculated and maintained by the Nasdaq Stock Exchange and is composed of the 100 largest non-financial stocks traded on the Nasdaq. These stocks are selected based on the market capitalization and liquidity of the stocks traded. The index is weighted by market capitalization, so the largest companies in the index have the greatest influence on the index’s direction. This weighting system makes the Nasdaq-100 less volatile than the broader market, as the top companies are more stable and reliable.

The Nasdaq-100 Index has become a popular asset for passive investors to gain access to a wide range of securities. It offers exposure to a variety of sectors and regions, giving investors the opportunity to diversify their portfolios without having to purchase and manage several individual stocks. Additionally, index investing allows for a cost-effective way to invest, as many index funds charge low management fees.

The Nasdaq-100 Index is a valuable asset for investors looking to get exposure to some of the market’s top performing stocks. By tracking the performance of 100 leading non-financial companies on the Nasdaq, it provides a cost-effective way to gain diversified exposure to many different industries without having to own and manage several individual stocks.