Nasdaq-100 Index Trading Strategies (Backtest)
The Nasdaq-100 index is one of the most followed stock indexes around the globe. But what exactly is it?
The Nasdaq-100 is a stock index that tracks 100 of the largest domestic and international non-financial companies listed on the Nasdaq stock exchange based on market capitalization and other factors. It is one of the world’s preeminent large-cap growth indexes.
At the bottom of the article we provide you with several Nasdaq 100 trading strategies.
In this post, we will discuss the following:
- What Is the Nasdaq-100 index?
- What companies and stocks are included in the Nasdaq-100 index?
- When was the Nasdaq-100 index created?
- How is the Nasdaq-100 index calculated?
- Can you buy the Nasdaq-100 index?
- Where can you follow Nasdaq-100 index today?
- Pros and Cons of using the Nasdaq-100 index
- FAQs about the Nasdaq 100 Index
What Is the Nasdaq-100 index?
The Nasdaq-100 is a stock market index that tracks about 100 of the largest non-financial stocks listed on the Nasdaq stock exchange. It is a modified capitalization-weighted index — the weights of stocks in the index are based on their market capitalizations but with certain rules to cap the influence of the largest components.
The index is limited to companies from a single exchange, the Nasdaq exchange, and it does not have any financial companies.
What companies and stocks are included in the Nasdaq-100 index?
As of the time of writing, June 10, 2022, these are the top 5 stocks in the Nasdaq-100 index and their Market Caps:
- Apple Inc. (AAPL): The iPhone maker has a Market Cap of $2.707 trillion.
- Microsoft Corp. (MSFT): The popular PC giant has a Market Cap of $2.311 trillion.
- com, Inc. (AMZN): The e-commerce giant has a Market Cap of $1.427 trillion.
- Tesla, Inc. (TSLA): Tesla’s Market Cap is $902.1 billion.
- Alphabet Inc. Class A (GOOGL): The Market Cap of Alphabet Class A shares is $836.5 bi