Nasdaq-100 Historical Annual Returns (1986-2023)


Nasdaq 100 (NDX)DATA
Index FoundedJanuary 31, 1985
Total Stocks101
Market Cap$22.1 Trillion
Biggest Gain101.95% (1999)
Biggest Fall-41.89% (2008)
Average Mean Return15% to 17%
Cumulative Return15214% (With Dividend Reinvested)
RebalancingQuarterly
Data Updated02 Feb 2023

The Nasdaq 100 index has generated an average annual return between 15% – 17% over the past 38 years, resulting in a cumulative return of over 15,214.71% including reinvestment of all cash distributions (Dividends). This means If you had invested $100 in January 1985, your portfolio would have grown to over $15,314 by end of January 2023.

Nasdaq 100 Return Chart
Nasdaq 100 Return by Year

NASDAQ 100Price Returns
YTD+ 14.93%
1 Year– 32.38%
5 Years+ 79.07%
10 Years+ 358.37%
Since Inception*+ 9958.69%
Data Source: Nasdaq.com

Nasdaq 100 Returns By Year [1986 to 2023]

YearAnnual Return
202314.93%
2022-32.97%
202126.63%
202047.58%
201937.96%
2018-1.04%
201731.52%
20165.89%
20158.43%
201417.94%
201334.99%
201216.82%
20112.70%
201019.22%
200953.54%
2008-41.89%
200718.67%
20066.79%
20051.49%
200410.44%
200349.12%
2002-37.58%
2001-32.65%
2000-36.84%
1999101.95%
199885.30%
199720.63%
199642.54%
199542.54%
19941.50%
199310.58%
19928.86%
199164.99%
1990-10.41%
198926.17%
198813.54%
198710.50%
19866.89%

S&P 500 Vs Nasdaq 100 Performance

Both the Nasdaq and the S&P 500 are widely-followed indices that gauge the performance of the US stock market. The NASDAQ 100 Companies, however, are viewed as more growth-focused compared to the S&P 500, which consists of a blend of growth and value stocks. This explains why in recent years, the NDX has outperformed the S&P 500 Returns.

Also, Checkout – Dow Jones Annual Returns

Is Nasdaq 100 A Good Investment?

Well, from a return point of view, the short answer is Yes.

Because if you just go with the price starting at $125 in January 1985, the price of the index is now close to $12,573.4, representing an increase of more than 100x (times) in the past 38 years (Without Dividend Reinvested). It’s important to note that we are not talking about any single stock, this is the tech index.

Nasdaq 100 Historical Price Chart (1985-2023)
Nasdaq 100 Index Historical Chart (Source: TradingView)

But as an investment purpose, it depends on an individual’s financial goals, risk tolerance, and investment timeline. The Nasdaq 100 may offer the potential for higher returns but also come with higher volatility compared to more traditional investment options.

How to Invest In Nasdaq 100?

Investing in an index fund is one of the best strategies for investors as the majority of mutual funds fail to generate higher returns than the benchmark index.

The Nasdaq-100 has more than 55% weight in Technology Sector and 20.8% weight in Consumer Discretionary Section. Therefore it is a good option for those investors who want to aggressively invest in tech sectors or MAANG stocks (Meta, Apple, Amazon, Netflix, and Google).

The best way to invest in Nasdaq 100 Index (NDX) is to buy Nasdaq-100 ETFs or Index funds, which allow you to invest in entire 100 companies according to their weight in just one click.

Here are the top ETFs for Nasdaq 100 Index:

1. Invesco QQQ Trust

2. Invesco NASDAQ 100 ETF

3. USAA NASDAQ-100

4. Innovator Nasdaq-100

5. Invesco Nasdaq 100 Index Fund


Thank You For Reading: If you have any queries regarding this feel free to ask in the comment box.


Disclaimer ✋

The information included on this site is for educational purposes and is not intended as a substitute for investment advice. Data on past performance, where given, is not necessarily a guide to future performance. So before investing, you should carefully consider the Fund’s investment objectives, risks, charges, and expenses.


Abheey

Abheey is a financial market enthusiast with 5 years of experience in Trading Stocks. He is an expert in simplifying financial concepts with data visualizations that helps people to create wealth.

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