Celebrating the 40-year Rise of the Nasdaq-100 Index

On January 31, 1985, Nasdaq launched the Nasdaq-100 Index® (NDX®) a new, technology, and innovation-focused index tracking 100 of the largest non-financial companies listed on the Nasdaq Stock Market®. Now, 40 years later, the Nasdaq-100® is the world’s preeminent large-cap growth index, and an entire ecosystem has grown around it. The combined value of all exchange-traded products in the NDX® ecosystem exceeds $500B. The index is globally renowned with products tracking the index available in over 20 countries across six continents.

“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.

The NDX® has always represented the economy of the future. Throughout its history, constituents of the index have emerged as disruptive forces across multiple sectors and industries. At its inception, the companies in the index were smaller, US-based, and focused on investing in growth and testing new technology; today they represent a diversified global portfolio of the 21^st century.

Bigger than just tech, the index has grown to include leaders in modern industrials, consumer discretionary, and healthcare. A few of the original members remain in the current index including Apple, Intel, and Costco with new members like Palantir and ARM joining the Nasdaq-100® in 2024.

A Research and Development Powerhouse

When the Nasdaq-100 Index® launched in 1985, the constituent companies were focused on investing in growth and testing new technology.

Today, that focus on innovation remains unchanged. Companies in the Nasdaq-100® spend on average 1.3 times more on research and development than those in the S&P 500. Companies investing in research and development have consistently outperformed and shown resilience in varying market conditions throughout the 21st century.

In 2024, 66 companies in the Nasdaq-100®, filed patents within one or more of 35 key areas of disruptive technology—including artificial intelligence, energy transition, and healthcare innovation.

As advancements in AI and machine learning continue, the demand for access to the companies and trends driving the future of technology and information will only increase. Investors are keen to participate in the innovation economy and gain exposure to these transformative themes through investment vehicles tracking sectors like cybersecurity, artificial intelligence, and smart grid infrastructure.

This growing interest reflects a desire to gain exposure to the potential of cutting-edge technologies and the companies leading these advancements.

“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," said Emily Spurling, Global Head of Index at Nasdaq.

Looking Ahead

Nasdaq’s strategy for growing its index business includes extending the NDX® ecosystem to create more opportunities for investors to gain access to many of the most important companies driving the performance of the broader equity markets.

Nasdaq works closely with key partners like Invesco, ProShares, First Trust, and CME Group, to launch exchange-traded funds (ETFs), futures, and other products based on its indexes. This includes proactively presenting new strategies, helping them bring their ideas to life, and partnering to create unique, demand-driven disruptive ideas for the investment community.

Index options also continue to be an important part of Nasdaq’s business. There has been a record rise in ETF listings using options, particularly NDX® options. Options-based strategies accounted for 9% of all ETF launches in 2023, and that rose to 13% in 2024.

These ETFs provide exposure to indexes with safeguards against downside risk—with the potential for considerable upside. This structure makes them more accessible to retail investors, allowing engagement with these investments through a familiar ETF wrapper while avoiding more complex arrangements.

Moving into 2025, the combination of heightened investor engagement with options and the ongoing evolution of financial products appear to be a recipe for new record levels of investor participation.

Beyond the NDX® ecosystem, Nasdaq is continuing to build and provide innovative indexes in key areas such as cybersecurity, AI, the electrical grid, and insurance.

“We’ll continue to operate resilient, transparent and liquid markets to attract companies that are driving the economy and represented in our indexes,” Spurling said. “And as an index business, we’ll continue to innovate beyond the Nasdaq-100® and keep developing new strategies to meet the needs of investors globally.”

Learn more about the Nasdaq-100