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1Fix the driver behind crashes, sound loss and screen glitches2Repair Windows errors before they cause bigger problems3Scan for outdated or missing drivers - takes under a minuteThe S&P 500 is a broad U.S. large-cap benchmark; the Nasdaq-100 tracks 100 large non-financial companies listed on Nasdaq. The Nasdaq-100 is much more concentrated in technology and consumer discretionary stocks, while the S&P 500 includes financial companies and spans more sectors. Nasdaq’s reported historical comparison shows higher returns and higher volatility for the Nasdaq-100 over one specific period—not a forecast of what either index will do next.
What’s the difference between the S&P 500 and Nasdaq-100?
| Feature | S&P 500 | Nasdaq-100 |
|---|---|---|
| What it represents | 500 leading U.S. large-cap companies, covering approximately 80% of available U.S. market capitalization, according to S&P Dow Jones Indices. The coverage figure is an approximate index description, not a fixed guarantee. | 100 of the largest eligible non-financial companies listed on Nasdaq, according to Nasdaq. Some are non-U.S. companies. |
| Eligibility | Eligible U.S.-domiciled equities listed on U.S. exchanges; a committee selects constituents under the index methodology. | Nasdaq listing is required; financial companies are excluded. |
| Weighting | Float-adjusted market capitalization: larger companies generally have more influence. | Modified market-cap weighting, with rules intended to constrain concentration; larger companies still carry more influence. |
| Sector profile | Includes financials and a broader mix of sectors. | Strongly tilted toward technology and consumer discretionary; no financials by design. |
The Nasdaq-100 is not simply a list of the 100 largest U.S. companies: its rules focus on Nasdaq-listed, non-financial companies and allow non-U.S. issuers. Conversely, S&P 500 membership does not require a company to trade on Nasdaq. The S&P 500 is often described by its provider as a gauge of large-cap U.S. equities; that characterization comes from S&P Dow Jones Indices, not an independent assessment.
Is the Nasdaq-100 just tech stocks?
No. It is a cross-sector index, but its sector balance is unusually concentrated in technology and consumer discretionary companies. Nasdaq Global Indexes’ comparison using Industry Classification Benchmark (ICB) categories reported these weights as of June 30, 2026:
| Sector | Nasdaq-100 | S&P 500 |
|---|---|---|
| Technology | 68.5% | 16.4% |
| Consumer Discretionary | 16.4% | 11.2% |
| Financials | 0% by design | Included |
Source for the dated sector weights: Nasdaq Global Indexes, using ICB classification as of June 30, 2026. Sector labels and weights can change as classifications, prices, and index constituents change.
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Which index is more diversified?
The S&P 500 is more diversified by company count, sector mix, and eligibility rules. It includes financials and draws eligible companies from U.S. exchanges. The Nasdaq-100 has fewer constituents, excludes financials, and allocates a much larger share to technology. Neither index is equally weighted: both give larger companies more influence, although their weighting methodologies differ.
That difference matters if you already own a broad U.S. stock fund. Adding a Nasdaq-100 fund may increase exposure to many large companies you already hold rather than adding an entirely separate set of investments. Nasdaq Global Indexes reported a 93% correlation between the indexes’ daily returns from December 31, 2007 through June 30, 2026. Correlation describes how returns moved together in that interval; it does not mean the indexes have identical holdings or risk.
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How have their returns and volatility compared?
In Nasdaq Global Indexes’ comparison from December 31, 2007 through June 30, 2026, the Nasdaq-100 had higher cumulative and annualized total returns, as well as higher annualized volatility:
| Measure | Nasdaq-100 | S&P 500 |
|---|---|---|
| Cumulative total return | 1,635% | 627% |
| Annualized total return | 16.7% | 11.3% |
| Annualized volatility | 22.9% | 19.9% |
All figures in the table are reported by Nasdaq Global Indexes for the same period, December 31, 2007 through June 30, 2026. They are historical index results, not a promise, forecast, or comparison of any specific funds’ fees, taxes, or tracking differences. The result depends on the selected start and end dates; it does not establish which benchmark will perform better in another period.
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How should investors choose between them?
Choose based on the exposure you want, not solely on which index led over a past interval. An index itself is not directly purchasable; investment products such as funds may track it, and those products can differ in fees, tax treatment, domicile, liquidity, and tracking behavior.
- Consider the S&P 500 when you want exposure to a broad set of U.S. large-cap companies across sectors, including financials.
- Consider the Nasdaq-100 when you specifically want a Nasdaq-listed, non-financial large-company benchmark with heavier technology and consumer discretionary exposure.
- Check overlap with your existing holdings. A fund tracking the Nasdaq-100 can add concentration in companies that may already be prominent in a broad-market portfolio.
- Compare products on equal terms: underlying index, total-return versus price-return measure, dates, currency, fees, tax treatment, and tracking behavior.
Is “Nasdaq” the same as the Nasdaq-100?
No. In everyday financial coverage, “NASDAQ” often refers to the Nasdaq Composite, a different index. QQQ and QQQM are products linked to the Nasdaq-100, not the Nasdaq Composite. Check the benchmark named in a fund’s documentation rather than relying on the word “Nasdaq” alone. See Nasdaq’s investor explanation for the distinction.
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What to know about current index rules
Both indexes update their membership and weights over time. Nasdaq implemented a targeted Nasdaq-100 methodology update effective May 1, 2026 following public consultation; the change includes treatment for low-float weighting. Details are in Nasdaq’s methodology update. For the S&P 500, the provider’s U.S. Indices Methodology describes the index family and selection framework. Constituents and weights are not permanent, so consult current provider information when evaluating a specific investment.
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