Today marks the 100th day of the year, so we’re celebrating with a nod to the NASDAQ-100®, one of the most popular indexes in the global economy.
NDX is comprised of the 100 largest non-financial securities listed on The NASDAQ Stock Market® (NASDAQ®), based on market capitalization, and is a barometer for large cap growth. The Index reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology.
The NASDAQ-100 contains the household names leading the new economy forward. Among the top holdings: Apple (AAPL), Microsoft (MSFT), Google Inc. (GOOG), Oracle Corporation (ORCL) and Amazon.com Inc. (AMZN).
The fundamental data behind NDX has drastically improved over the past few years despite a volatile economy and the greatest financial market collapse since the Great Depression.
As of year-end, earnings, the most basic number to value a company, have skyrocketed, showing maturation of the companies as they increase revenues but reduce costs. Costs have been controlled, shares were bought back, dividends have increased and P/E has contracted.
The shift in fundamentals of the NASDAQ-100 has resulted in significant outperformance over other US large cap indexes over time. Click here to see how NDX has performed these past 100 days. Also see PowerShares‘ QQQ ETF (QQQ)