Nasdaq 100 Index: Chart, Quote, Open Times

The Nasdaq 100 is a stock market index that tracks the performance of the 100 largest non-financial companies listed on the Nasdaq Stock Market. Established in 1985, this index serves as a benchmark for technology and growth-oriented investments, representing some of the most innovative and influential companies in the global economy.

The index is market capitalization-weighted, meaning larger companies have a greater impact on the index’s overall performance. Companies must meet specific criteria to be included, including being listed on the Nasdaq Global Select Market or Nasdaq Global Market, maintaining adequate liquidity, and demonstrating financial stability.

Nasdaq 100 Index Chart (NDX)

The Structure

The Nasdaq 100 excludes traditional financial companies, which is one reason it looks so different from broader benchmarks like the S&P 500. Instead of banks and insurers, the index is dominated by companies involved in software, cloud computing, artificial intelligence, semiconductors, digital advertising, e-commerce, electric vehicles and consumer technology. This makes it a useful benchmark for investors who want exposure to the businesses shaping the global digital economy, but it also means the index can be more volatile when interest rates rise or when investors rotate away from growth stocks.

Technology remains the largest sector exposure, but the index is broader than many people assume, with exposure to areas such as digital media, biotechnology, online retail, payments infrastructure, consumer brands and advanced chip design.

• Technology Innovation: Software, hardware, and semiconductor companies
• Consumer Services: E-commerce, streaming, and digital platforms
• Biotechnology: Pharmaceutical and healthcare technology firms
• Communication Services: Social media and telecommunications companies
• Consumer Discretionary: Electric vehicles and luxury goods

Leading Companies in the Nasdaq 100

The Nasdaq 100 includes many of the world’s most recognisable companies, including NVIDIA, Apple, Microsoft, Amazon, Alphabet, Meta Platforms, Tesla, Broadcom, Costco and other large innovation-focused businesses. These companies are not just US market leaders; many earn revenue globally, which means the index provides exposure to worldwide demand for cloud computing, artificial intelligence, digital advertising, smartphones, online shopping and software.

ASX ETFs Tracking the Nasdaq 100

Australian investors can access Nasdaq 100-style exposure through several ASX-listed ETFs.

The Betashares Nasdaq 100 ETF (ASX: NDQ) aims to track the performance of the Nasdaq 100 Index before fees and expenses, giving investors unhedged exposure to the index and the US dollar. The Betashares Nasdaq 100 Currency Hedged ETF (ASX: HNDQ) aims to track a currency-hedged version of the Nasdaq 100, reducing the impact of AUD/USD currency moves.

Another option is the Global X US 100 ETF (ASX: U100), which provides exposure to 100 large innovative US-listed companies across the Nasdaq and NYSE.

Key Considerations

• Management Fees: Typically range from 0.48% to 0.51% annually
• Currency Risk: Unhedged funds expose investors to AUD/USD exchange rate movements
• Tax Implications: Consider dividend withholding taxes and capital gains treatment
• Liquidity: Both options offer strong daily trading volumes on the ASX

Trading Hours for Australian Investors

The Nasdaq Stock Market’s regular trading session runs from 9:30am to 4:00pm US Eastern Time, with pre-market trading from 4:00am to 9:30am and post-market trading from 4:00pm to 8:00pm. For Australian investors, this usually means the main US session occurs overnight.

During much of the US daylight saving period, regular Nasdaq trading runs from about 11:30pm to 6:00am AEST. During much of the Australian daylight saving period, when the US is on standard time, it is closer to 1:30am to 8:00am AEDT. ASX-listed Nasdaq ETFs trade during normal ASX hours, with continuous trading from about 10:00am to 4:00pm Sydney time, making them more convenient for local investors.

US Market Hours (Eastern Time)

• Regular Trading: 9:30 AM to 4:00 PM ET
• Pre-Market: 4:00 AM to 9:30 AM ET
• After-Hours: 4:00 PM to 8:00 PM ET

Australian Eastern Standard Time (AEST)

• Regular Trading: 11:30 PM to 6:00 AM AEST (next day)
• Pre-Market: 6:30 PM to 11:30 PM AEST
• After-Hours: 6:00 AM to 10:00 AM AEST

Australian Eastern Daylight Time (AEDT)

During daylight saving periods, trading hours shift one hour earlier:

• Regular Trading: 12:30 AM to 7:00 AM AEDT
• Pre-Market: 7:30 PM to 12:30 AM AEDT
• After-Hours: 7:00 AM to 11:00 AM AEDT

It is worth noting that ETF brokers that offer ASX listed Nasdaq 100 funds will trade during regular ASX hours (10:00 AM to 4:00 PM AEST/AEDT), providing more convenient access for local investors.

Nasdaq 100 vs Other Indices

vs S&P 500

The Nasdaq 100 is more concentrated and growth-focused than the S&P 500. The S&P 500 includes financials, industrials, utilities, energy companies, healthcare, consumer staples and a broader mix of US sectors, while the Nasdaq 100 is more heavily tilted toward technology and innovation-led businesses. This means the Nasdaq 100 can outperform strongly when mega-cap technology and growth stocks are in favour, but it can also fall harder when investors become more cautious about valuations, interest rates or earnings expectations.

vs Dow Jones Industrial Average

The Dow Jones Industrial Average tracks only 30 large US companies and is price-weighted, meaning higher-priced shares have more influence on index movements. The Nasdaq 100, by contrast, includes 100 companies and uses a modified market capitalisation approach, which generally gives more weight to larger companies by market value. For investors, the Nasdaq 100 is usually the better proxy for US growth and technology leadership, while the Dow is more often used as a traditional blue-chip market indicator.

vs ASX 200

The Nasdaq 100 and ASX 200 offer very different exposures. The ASX 200 is heavily influenced by Australian banks, miners, dividends, iron ore prices and the domestic economy, while the Nasdaq 100 is driven more by US technology earnings, artificial intelligence, cloud computing, semiconductors and global digital platforms. This difference can make Nasdaq 100 exposure useful for Australians whose portfolios are heavily concentrated in local bank and resource stocks. However, it also introduces US market risk, currency risk and greater sensitivity to growth-stock valuations.

Conclusion

The biggest risks are concentration, valuation and currency exposure. A small number of mega-cap companies can have a large impact on Nasdaq 100 performance, so investors should not assume they are getting equal exposure to 100 businesses. The index can also be sensitive to rising bond yields because many growth companies are valued on future earnings. For unhedged Australian investors, AUD/USD movements can either boost or reduce returns, even when the underlying US market performs well.

It can be a powerful long-term portfolio diversifier, especially for investors who are already heavily exposed to Australian banks, miners and income-focused shares. However, it is not a low-risk or broadly balanced global market index.