The S&P 500 and Nasdaq-100 both track large companies, but they represent different slices of the market. The S&P 500 covers a broad range of U.S. large-cap stocks; the Nasdaq-100 selects large non-financial companies listed on Nasdaq and is much more concentrated in technology and consumer discretionary stocks. Nasdaq’s comparison for December 31, 2007, through June 30, 2026, shows higher returns and volatility for the Nasdaq-100 over that specific period—not a forecast of future results.
What’s the difference between the S&P 500 and Nasdaq-100?
The main difference is how each index selects companies. The S&P 500 is designed to represent the U.S. large-cap equity market. S&P Dow Jones Indices describes it as 500 leading companies covering approximately 80% of available U.S. market capitalization. That is a broad-market description, not a guarantee of a fixed coverage percentage.
The Nasdaq-100 tracks 100 of the largest eligible non-financial companies listed on the Nasdaq Stock Market. Nasdaq-listed companies can include non-U.S. issuers, so the index is not simply the 100 largest U.S. companies. Its Nasdaq-listing requirement also means it does not represent all large U.S. companies.
| Feature | S&P 500 | Nasdaq-100 |
|---|---|---|
| What it represents | U.S. large-cap equities | Large non-financial companies listed on Nasdaq |
| Company count | 500 leading companies in the index description (S&P Dow Jones Indices, accessed 2026) | 100 eligible companies |
| Listing and geography | Eligible U.S.-domiciled equities listed on U.S. exchanges | Nasdaq-listed companies, including some non-U.S. issuers |
| Financial companies | May be included | Excluded by design |
| Weighting approach | Float-adjusted market-cap weighted | Modified market-cap weighted, with rules that constrain concentration |
Both indexes are capitalization-oriented, not equal-weighted: larger companies carry more influence, although the Nasdaq-100’s modified weighting rules limit concentration. The S&P 500 is also not a list of companies that all trade on Nasdaq; its eligible companies can be listed on U.S. exchanges more broadly.
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Is the Nasdaq-100 just tech stocks?
No. It is not a pure technology index: it also includes companies in other industries. But its sector mix is heavily tilted toward technology and consumer discretionary compared with the S&P 500.
Nasdaq Global Indexes’ sector comparison using its ICB classification, dated June 30, 2026, reported these weights:
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| Sector | Nasdaq-100 | S&P 500 |
|---|---|---|
| Technology | 68.5% | 16.4% |
| Consumer Discretionary | 16.4% | 11.2% |
| Financials | 0% by design; Nasdaq-100 excludes financial companies | Included; sector weight not stated in this comparison |
These are dated weights, not permanent characteristics. Index membership and sector weights change over time, and the figures reflect Nasdaq’s ICB classification. The financials distinction matters for diversification: an investor holding the Nasdaq-100 does not get financial-company exposure through that index.
Which index is more diversified?
The S&P 500 is broader across companies, sectors, and eligible U.S. listings. The Nasdaq-100 has fewer constituents, a Nasdaq-listing restriction, no financial companies, and a much larger technology allocation. For exposure spread across the U.S. large-cap market, the S&P 500 is the broader benchmark. The Nasdaq-100 offers more concentrated exposure to large Nasdaq-listed non-financial companies.
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Broader does not mean risk-free or evenly balanced. Both indexes give greater weight to larger companies, so a small number of the largest constituents can have a substantial effect on performance. Their returns can also move together: Nasdaq Global Indexes reported 93% correlation in daily returns from December 31, 2007, through June 30, 2026. Correlation over that interval does not mean the indexes have identical holdings or risks.
How have their returns and volatility compared?
Nasdaq Global Indexes reported the following results for the same period, December 31, 2007, through June 30, 2026. The returns are total returns, which include dividends, and the comparison is published by Nasdaq, the Nasdaq-100’s index provider.
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| Measure | Nasdaq-100 | S&P 500 |
|---|---|---|
| Cumulative total return, Dec. 31, 2007–June 30, 2026 | 1,635% | 627% |
| Annualized total return, Dec. 31, 2007–June 30, 2026 | 16.7% | 11.3% |
| Annualized volatility, Dec. 31, 2007–June 30, 2026 | 22.9% | 19.9% |
In that window, the Nasdaq-100 delivered higher reported returns and higher annualized volatility. The result depends on the selected start and end dates, and historical performance does not establish which index will perform better next. A sound comparison should use matching dates, a consistent total-return basis, the same currency, and the same dividend treatment.
Is QQQ the Nasdaq Composite?
No. QQQ and QQQM are linked to the Nasdaq-100. In everyday usage, a label or ticker displayed as “NASDAQ” commonly refers to the Nasdaq Composite, a different index. Check the benchmark named in a fund’s official materials rather than relying on a shorthand ticker or a broad reference to “Nasdaq.”
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Nasdaq’s investor explainer and SEC-filed product disclosure describe the Nasdaq-100’s scope. Its methodology can also change: Nasdaq announced targeted methodology updates effective May 1, 2026, following public consultation, including treatment of low-float weighting. Investors comparing index-linked products should check the current methodology and product documents.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What should investors consider when choosing exposure?
An index is a benchmark, not an investment that can be purchased directly. Funds and other securities track indexes, and those products may differ in fees, taxes, domicile, liquidity, and how closely they track their benchmark.
- Choose by exposure, not by past winner: the S&P 500 is the broader U.S. large-cap benchmark; the Nasdaq-100 is more concentrated in Nasdaq-listed non-financial companies.
- Consider sector concentration: the Nasdaq-100’s dated technology allocation is much higher, and it excludes financials.
- Compare equivalent performance data: align dates, total-return treatment, currency, and dividends before drawing conclusions.
- Assess the specific product: review its fees, tax treatment, domicile, liquidity, tracking behavior, and index methodology.
For primary descriptions, see S&P Dow Jones Indices’ S&P 500 page and its U.S. Indices Methodology. Nasdaq publishes its dated comparison in “When Performance Matters: Nasdaq-100 vs. S&P 500”, along with an investor explainer and a SEC-filed product disclosure. The provider also documents its methodology update.
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