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Celebrating 40 Years of the Nasdaq-100 Index® (NDX®)
NasdaqNasdaq(US:NDAQ) Newsfilter·2025-01-31 13:00

Core Insights - The Nasdaq-100 Index® (NDX®) celebrates its 40th anniversary, marking its evolution into a leading benchmark for large-cap growth companies globally [1][5] - The index has delivered a 14.25% compound annualized return since its inception, showcasing the transformative power of its constituent companies [2] - The combined value of all investment products tracking the NDX® ecosystem exceeds $500 billion, with 94 Exchange Traded Products available in over 20 countries [8] Investment Performance - The Nasdaq-100 Index® tracks 100 of the largest non-financial companies listed on the Nasdaq Stock Market, which have a legacy of market disruption and global growth [2] - The median market capitalization of companies in the NDX® has increased from $455 million at inception to $74 billion as of December 31, 2024 [3] Research and Development - Companies within the Nasdaq-100® invest significantly more in research and development, spending between 600-1,200% more compared to broader US large-cap equity indexes [4] - This investment in R&D has correlated with above-average performance and resilience across various market conditions [4] Ecosystem Growth - The NDX® ecosystem has seen substantial growth in investment vehicles, including a 39.5% increase in index options volume from 2023 to 2024 [9] - CME's Nasdaq 100® futures have an average notional value traded daily exceeding $200 billion in 2024, providing additional exposure avenues for investors [9] Industry Impact - The Nasdaq-100 Index® serves as a powerful embodiment of innovation and economic growth, enabling the creation of generational wealth for investors [5] - Nasdaq's commitment to supporting companies at all stages of their journey is reflected in the index's role in shaping the future of markets worldwide [5][9]