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You cannot buy the Nasdaq directly. To invest in Nasdaq-listed companies, you can buy shares in a mutual fund or exchange-traded fund (ETF) that tracks a Nasdaq index, or select individual stocks yourself. First decide which index you mean: the Nasdaq Composite covers thousands of Nasdaq-listed companies, while the Nasdaq-100 tracks 100 of the largest non-financial companies listed there. The choice changes what your fund holds—and the risks you take.
What does “the Nasdaq” mean?
Nasdaq is an exchange operator, and “the Nasdaq” is often used loosely to refer to either the Nasdaq Composite or the Nasdaq-100. They are different indexes, not interchangeable names for the same portfolio.
Nasdaq Composite
The Composite is the broader index. Nasdaq’s June 11, 2026 explainer described it as including more than 3,000 companies listed on the Nasdaq Stock Market. Its methodology covers eligible domestic and international common-type stocks and excludes certain security types, including ETFs and preferred stocks. See Nasdaq’s Composite explainer and its published methodology.
Nasdaq-100
The Nasdaq-100 comprises 100 of the largest non-financial companies listed on Nasdaq. Nasdaq’s rules include eligibility requirements and modified market-cap weighting, with scheduled reconstitution and rebalancing. Because its membership and weights differ from the Composite, the two indexes can perform differently even when their movements look similar for a period. Review Nasdaq’s Nasdaq-100 methodology for the index rules.
Many familiar Nasdaq-branded products, including QQQ and QQQM, track the Nasdaq-100 rather than the broader Composite. Nasdaq reported in June 2026 that more than 178 Nasdaq-100-linked products traded on 18 exchanges, with over $600 billion in tracking assets and more than $623 billion in average daily traded notional value. Those are Nasdaq-reported figures for that publication, not live totals or independent measurements.
How the three ways to invest differ
An index is a calculation, not an asset you can purchase directly. A fund may seek to track an index by holding all of its securities or by sampling a selection. “Index fund” describes the investment strategy; “mutual fund” and “ETF” describe fund structures. An ETF can itself be an index fund.
Rank #2
| Route | What you own | What to compare | Main consideration |
|---|---|---|---|
| Nasdaq index mutual fund | Shares in a mutual fund seeking to track a specified Nasdaq index. | Index tracked, fees, holdings, full replication or sampling, minimums, dealing terms, and account fit. | Fees, trading costs, and tracking error can cause returns to lag the index; fund terms vary. |
| Nasdaq ETF | Exchange-traded fund shares seeking exposure to a stated index. | Index, ongoing costs, holdings, tracking difference, liquidity, and market price versus net asset value (NAV). | ETF shares can trade above or below NAV; costs and risks depend on the particular fund. |
| Individual Nasdaq-listed stocks | Direct ownership of shares in the companies you select. | Company fundamentals, valuation, diversification across holdings, position size, and the time required to research and monitor companies. | Your results depend on the selected companies; individual stock prices can fall quickly and substantially. |
A fund’s goal is to track its stated index, not to guarantee the index’s return. Fund expenses, trading costs, and tracking error all affect the result. The SEC explains these issues in its Investor Bulletin: Index Funds.
How to choose between a mutual fund, ETF, and stocks
Choose a fund by the exposure you want
- Name the index. Check whether the fund tracks the Nasdaq Composite, Nasdaq-100, or another index. A Nasdaq-100 fund is not a substitute for a fund covering the entire stock market.
- Read the current fund documents. Use the prospectus and latest shareholder report to check the objective, holdings, expenses, risks, and whether the fund holds every index security or samples them. The SEC recommends considering these details in light of your own goals.
- Compare the implementation. Look at costs, tracking difference, and—in an ETF—liquidity and the relationship between its market price and NAV. Do not assume that “index” means risk-free or that every index fund is cheaper than every actively managed fund.
- Check account and dealing terms. Minimum investments, order handling, commissions, tax treatment, and product availability depend on the fund, provider, account, and jurisdiction. Verify the current terms before investing.
Choose individual stocks only if you want company-level decisions
Buying stocks lets you choose specific businesses rather than accept an index’s constituents and weighting rules. That also means you must decide which companies to own, how much to allocate to each, and when to review your choices. A collection of a few stocks is not automatically diversified just because those companies trade on Nasdaq.
Examples of Nasdaq-100-linked funds
Nasdaq’s product listing names the following Nasdaq-100-linked examples. This is not a complete market list or an endorsement; check each provider’s current prospectus, holdings, expenses, and ticker before making a decision.
- ETFs: Invesco QQQ Trust (QQQ), Invesco Nasdaq-100 ETF (QQQM), State Street SPDR Portfolio Nasdaq 100 ETF (QNDX), and iShares Nasdaq 100 ETF (IQQ).
- Mutual-fund examples: IVNQX, NASDX, NQQQX, and USNQX.
Product listings and fund terms can change. Nasdaq’s examples appear on its How to Invest page; consult the fund issuer for current details.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Understand the risks before investing
- Market risk: Nasdaq-linked funds and stocks are equity investments. Their values can fall, and index tracking does not protect against losses.
- Concentration: Index membership and weighting determine the exposure you actually get. A Nasdaq-100 fund does not represent the whole stock market, and a small number of holdings may have a large influence on results.
- Tracking and costs: Fees, expenses, trading costs, and tracking error can make a fund’s return differ from its index.
- ETF pricing: An ETF’s exchange price can be above or below its NAV. Trading during market hours means the price you receive can differ from the fund’s underlying per-share value.
- Company-specific risk: When you buy individual stocks, news or business problems affecting a selected company can materially affect your investment.
Nasdaq describes its investing materials as educational, not a recommendation to buy or sell securities, and notes that past performance does not predict future results. No particular Nasdaq fund or stock is suitable for every investor.
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