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What Is The Nasdaq Composite?

Views 12532022.03.02

Key takeaways

  • The Nasdaq Composite tracks nearly all of the companies that are listed on the Nasdaq stock exchange.

  • The index comprises nearly 50% of technology stocks. 

  • The index has outperformed many other stock market indexes over the past 10 years.

Understanding the Nasdaq Composite

"Today $Dow Jones Industrial Average(.DJI.US)$ slips 0.21%, $S&P 500 index(.SPX.US)$ down 0.03%, $Nasdaq(NDAQ.US)$ gains 0.21%..."  Together with the Dow Jones Industrial Average and the S&P 500, the Nasdaq Composite is one of the three most popular stock indexes reported in the financial press or as part of the evening news to represent how the stock market is performing on any given day.

The Nasdaq Composite tracks nearly all of the companies that are listed on the Nasdaq stock exchange, which includes many high-growth technology stocks. Because it comprises nearly 50% of technology stocks, the Nasdaq Composite is generally considered a stand-in for the performance of the overall tech industry. The most popular and investor favorite is $Meta Platforms(FB.US)$, $Amazon(AMZN.US)$, $Apple(AAPL.US)$, $Netflix(NFLX.US)$, and $Alphabet C(GOOG.US)$ collectively referred to as FAANG stocks are listed on the Nasdaq stock market. 

Unlike the S&P 500, which consists of companies that can only come from America, the Nasdaq Composite includes many companies from other counties. For example, $Alibaba(BABA.US)$, $Bilibili(BILI.US)$, and other outstanding technology companies listed on the Nasdaq stock market are based in China.

Over the past 10 years, the Nasdaq Composite has outperformed many other stock market indexes. Its ticker symbol is IXIC. The easiest way to invest in a way that achieves the results of the Nasdaq Composite is through a mutual fund or exchange-traded fund that passively tracks the index.

The content in this article is intended for general circulation and informational purposes only. It does not take into account the investment objectives, financial situation or needs of any particular person and should not be relied on as advice or recommendation. Information provided in this article are not specifically intended for or specially targeted at the public in any specific jurisdiction. Neither Moomoo Inc. nor its affiliates are licensed Financial Advisers and do not provide financial advice. You are advised to consult your financial adviser before making any commitment to invest in any capital markets product. The information published is not and does not constitute or form part of any offer, invitation or solicitation to subscribe or to enter into any transaction in capital markets products. Moomoo is a professional trading app offered by Moomoo Inc. In the U.S., investment products and services on Moomoo are offered by Futu Inc., Member FINRA/SIPC. In Singapore investment products and services are offered through Futu Singapore Pte. Ltd., regulated by the Monetary Authority of Singapore (MAS). This advertisement has not been reviewed by the MAS. Moomoo Inc., Futu Inc. and Futu Singapore Pte. Ltd are affiliated companies. Any illustrations, scenarios, or specific securities referenced herein are strictly for illustrative purposes. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal.

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