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The S&P 500 is a broad U.S. large-cap benchmark; the Nasdaq-100 tracks 100 large non-financial companies listed on Nasdaq. Both are market-cap-oriented indexes, but the Nasdaq-100 is much more concentrated in technology and consumer discretionary stocks and excludes financials. Nasdaq-reported historical returns favor the Nasdaq-100 over one specified period, alongside higher volatility—useful context, not a forecast.
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; S&P Dow Jones Indices says the index covers approximately 80% of available U.S. market capitalization. The figure is a high-level description, not a fixed coverage guarantee. | 100 of the largest eligible non-financial companies listed on Nasdaq. Constituents may include non-U.S. companies. |
| Eligibility | Eligible U.S.-domiciled equities listed on U.S. exchanges, selected under the index provider’s criteria. | Nasdaq listing and non-financial status are required; companies are selected based on market capitalization under index rules. |
| Financial companies | May be included. | Excluded by design. |
| Weighting | Float-adjusted market-cap weighted. | Modified market-cap weighted, with rules intended to constrain concentration. |
Neither index is equal-weighted: larger companies have greater influence. Their different listing and eligibility rules matter as much as their constituent counts. The S&P 500 is not limited to companies traded on Nasdaq, and the Nasdaq-100 is not simply the 100 largest U.S. companies. S&P Dow Jones Indices’ S&P 500 page describes the benchmark’s scope and weighting; Nasdaq’s investor explainer describes Nasdaq-100 eligibility and linked products.
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Is the Nasdaq-100 just tech stocks?
No. It is not a pure technology index, but it has substantial technology exposure and also includes companies in other sectors. Nasdaq Global Indexes’ ICB sector comparison dated June 30, 2026 reported the following weights:
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Scan for outdated or missing drivers - takes under a minuteDriver Scan →Clear out junk files and repair common Windows errorsFree Scan →| Sector | Nasdaq-100 | S&P 500 |
|---|---|---|
| Technology | 68.5% | 16.4% |
| Consumer Discretionary | 16.4% | 11.2% |
| Financials | None by design | Included |
These are Nasdaq Global Indexes’ sector weights under its ICB classification, as of June 30, 2026; weights change as prices and index constituents change. The comparison shows why the Nasdaq-100 can behave differently from a benchmark spread across more sectors. For its published sector comparison, see Nasdaq’s Nasdaq-100 vs. S&P 500 report.
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Which index is more diversified?
The S&P 500 is broader by company count and includes financial companies, while the Nasdaq-100 has fewer constituents and excludes financials. The Nasdaq-100’s high technology weight makes it more concentrated by sector. Still, a larger constituent count does not by itself reveal how much influence the largest companies have: both indexes weight companies by market capitalization, subject to their respective rules.
The two indexes have often moved in the same direction without being interchangeable. Nasdaq Global Indexes reported a 93% correlation of daily returns for December 31, 2007 through June 30, 2026. Correlation measures how returns moved in relation to one another over that period; it does not mean the indexes hold the same companies or carry the same risk.
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How have their returns and volatility compared?
For December 31, 2007 through June 30, 2026, Nasdaq Global Indexes reported these total-return figures:
| Measure | Nasdaq-100 | S&P 500 |
|---|---|---|
| Cumulative total return | 1,635% | 627% |
| Annualized return | 16.7% | 11.3% |
| Annualized volatility | 22.9% | 19.9% |
These are provider-published results for the stated interval, not a prediction or a guarantee that the same ranking will hold in another period. The Nasdaq-100’s higher reported return came with higher reported volatility in that comparison. Historical comparisons should use matching dates, a consistent total-return basis that accounts for dividends, and the same currency. Nasdaq is the Nasdaq-100’s index provider, so its comparison is best read with that attribution in mind.
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What does the comparison mean for investors?
Choosing between exposure to these indexes depends on the role it is meant to play in a portfolio, not simply which one had the higher return in a past interval.
- For broader U.S. large-cap exposure: the S&P 500 includes a wider range of sectors, including financials, and is designed to represent the U.S. large-cap segment.
- For a stronger tilt toward large Nasdaq-listed growth and technology-oriented companies: the Nasdaq-100’s sector mix gives it a more concentrated profile. It is not a pure technology index.
- For a portfolio that already owns large technology companies: check the combined exposure. Adding a Nasdaq-100-linked fund may increase the weight of companies and sectors already prominent in a portfolio.
- For a decision based on past returns: compare the same dates and return measure, then weigh volatility and concentration; historical performance alone cannot establish which index is suitable for a particular investor.
An index itself is a benchmark, not a security an investor buys directly. Funds and other securities can track an index, but their fees, taxes, domicile, liquidity, and tracking behavior may differ. Check the actual fund’s documents to see which index it follows and what costs or risks apply.
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Is QQQ the Nasdaq Composite?
No. QQQ and QQQM are linked to the Nasdaq-100, not the Nasdaq Composite. Nasdaq notes that the label commonly displayed as “NASDAQ” usually refers to the Nasdaq Composite, a separate index. Since fund tickers and index names are easy to confuse, verify the benchmark named in a fund’s official materials rather than relying on “Nasdaq” alone. Nasdaq’s investor explainer discusses the distinction and products linked to the Nasdaq-100.
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Index composition, eligibility and weights can change. The sector figures and performance comparison above end June 30, 2026; they should not be read as live weights or current-period returns. Nasdaq announced targeted methodology changes to the Nasdaq-100 effective May 1, 2026, including treatment of low-float securities; its methodology update announcement describes those changes. The S&P 500 index page also publishes dated live characteristics that can change; any reported constituent count may exceed 500 when a company has multiple share classes. Consult each provider’s current methodology and dated index data when a precise, up-to-date detail matters.
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