What is Nasdaq 100 Index?
The Nasdaq-100 index is a stock market index that represents the performance of the 100 largest non-financial companies listed on the Nasdaq Stock Exchange.
This index is known for its focus on technology and innovation-driven companies, making it a key benchmark for tech-heavy sectors. One of its top holdings is typically Apple Inc., a global leader in consumer electronics.
Beyond technology, the Nasdaq 100 includes companies from various sectors like consumer services, healthcare, and communication services. This diversified mix offers investors exposure to a range of industries while emphasizing the technology sector's significance.
According to Slickcharts.com, among the top 10 companies from the Nasdaq 100 companies list are companies such as Microsoft, Amazon, and Alphabet Inc, as per 30th August 2023.
Click here to find out what is the difference between S&P 500 vs Nasdaq-100.
Trading E-Mini Nasdaq 100 Futures
For traders seeking alternatives to investing in index funds, the Chicago Mercantile Exchange (CME) provides a range of Nasdaq 100 Futures Mini contracts, including futures, options, and week options.
Traders can trade these contracts through Orient Futures Singapore, offering international traders access to products around the clock, 24/5.
E-Mini Nasdaq-100 Futures Contract Specifications
The E mini Nasdaq 100 Futures have the following contract specifications:
The Futures Contract has a contract unit of $20 x Nasdaq-100 Index with a minimum price fluctuation of 0.25 index point/$5.00 outright.
Contract months are quarterly on March, June, September, and December.
The last trading day of the contract month is the third Friday of the contract month.
Chicago Board of Trade trading hours are from Sun to Friday, at these trading hours:
5:00pm - 4:00pm (Settles 3:00p.m.) CST
E-mini Nasdaq-100 Index Futures symbol: NQ
Micro E-Mini Nasdaq-100 Futures Contract Specifications
The Micro E-mini Nasdaq 100 Futures have the following contract specifications:
The Futures Contract has a contract unit of $2 x Nasdaq-100 Index with a minimum price fluctuation of 0.25 index point/$0.50 outright.
Contract months are quarterly on March, June, September, and December.
The last trading day of the contract month is the third Friday of the contract month.
Chicago Board of Trade trading hours are from Sun to Friday, at these trading hours:
5:00pm - 4:00pm (Settles 3:00p.m.) CST
Micro E-mini Nasdaq-100 Index Futures symbol: MNQ
3 Things to Know About Nasdaq 100 Index Futures
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Growth of Nasdaq 100 Companies Amid the Covid-19 Pandemic
19 February 2020, serves as a significant milestone in the stock market, representing its peak just before the outbreak of the COVID-19 pandemic. The pandemic catalysed a dramatic plummet in share prices.
While some companies faced challenges, tech companies thrived due to the changing economic landscape. According to Nasdaq, many of the largest tech companies, such as Apple, Amazon, Microsoft, Alphabet (Google), and Facebook saw their stock prices rise. The pandemic accelerated trends like remote work, e-commerce, and digital services, boosting the revenues and profitability of these companies.
Figure 1. Weightage of Industries Under Nasdaq 100
Tech companies indeed carry substantial weight within the Nasdaq 100 index, and this has led to many tech giants being featured prominently among the companies in the Nasdaq 100. This composition has resulted in the Nasdaq-100 demonstrating a remarkable streak of outperformance relative to other major U.S. equity indices, particularly during the Covid-19 pandemic.
The Nasdaq-100's emphasis on tech-related companies, which often play pivotal roles in the digital economy and have been resilient amid the pandemic, contributed significantly to its strong performance during this period. This trend underscores the importance of technology in driving the markets and the broader economy during challenging times.
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It Contains the World’s Most Innovative Top-Brand Companies
Investing in mutual funds and ETFs tied to the Nasdaq-100 offers a compelling opportunity to gain exposure to some of the world's most innovative and renowned companies in one go. These companies primarily focus on key themes such as artificial intelligence (AI), big data, cloud services, and robotics, which are at the forefront of technological advancements. Additionally, the Nasdaq-100 includes companies in biotech, fintech, and media, all of which have demonstrated remarkable growth potential in recent years.
According to Nasdaq, the 'Best Global Brands 2021' list from Interbrand consistently features Nasdaq 100 companies at the top. Apple claimed the top spot for the ninth consecutive year, followed by Amazon, Microsoft, and Google (Alphabet). Notably, these companies have maintained their strong presence in the index.
Furthermore, the "Five Fastest Growing Brands" list includes Tesla, Adobe, PayPal, and Microsoft, underlining their robust performance and global recognition. It's worth mentioning that among Japanese companies, Samsung secured fifth place, and Toyota Motor Corporation was ranked seventh in the 'Best Global Brands 2021' list.
Additionally, many of the companies in the Nasdaq 100 list of companies are driving global economic and social change. Technology giants like Apple, Cisco Systems, and Google have not only transformed consumer experiences but have also influenced businesses worldwide. In the retail sector, companies like Amazon, PayPal, and Starbucks are pioneering new technological innovations.
As the epicenter of technological innovation across various industries and global economies, the Nasdaq-100 constituents are likely to continue leading the world's advancements, not only in the next five to ten years but well into the future.
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Nasdaq 100 Historic Performance Through the Years
Figure 2. Nasdaq 100 and S&P 500 Performance Through The Years From Bloomberg, Betashares.
The Nasdaq 100 and S&P 500 are two of the most prominent stock market indices in the United States, and they offer distinct perspectives on the performance of the U.S. equity markets. These indices are frequently compared to assess the overall performance of the U.S. economy.
Betashares has reported that the Nasdaq 100 index has outperformed the S&P 500 index over the past 15 years. The Nasdaq 100 has delivered a cumulative return of 705.5% through the end of August 2022, which is nearly double the S&P 500's return of 362.4% over the same period.
Furthermore, Betashares highlighted that since 2003, the average annual growth rate of Nasdaq-100 constituent companies has been remarkable. These companies have achieved a +21% growth rate in terms of sales, a +13% growth rate in terms of earnings, and a +26% growth rate in terms of dividends, all while maintaining double-digit annual growth. This underscores the robust performance of the companies within the Nasdaq 100 index.
Start Trading With Orient Futures Singapore
Being an Overseas Intermediary of Shanghai International Energy Exchange (INE), Dalian Commodity Exchange (DCE), and Zhengzhou Commodity Exchange (ZCE), when foreign clients participate in internationalised futures contracts in these Chinese markets with us, they have direct access to trading, clearing, and settlement. Our parent company, Shanghai Orient Futures, is the largest broker in terms of aggregated volume across the five regulated exchanges in China.
Orient Futures Singapore also currently holds memberships at the Singapore Exchange (SGX), Asia Pacific Exchange (APEX), and ICE Futures Singapore (ICE SG). Starting August 2023, corporate clients can also gain access to the B3 Exchange through us.
We provide bespoke services to our professional clients, tailored to their corporate and individual needs. Our team will be there for you 24 hours on trading days to provide a one-stop portal for all your trades, with simple processes and an intuitive user interface that has low or near-to-zero latency.
