Forgive some laymen ignorance here. I always looked at it the Nasdaq a huge diverse stock trading market. Only started looking deeper upon realizing the Nasdaq ETF QQQ is mostly tech stocks. Has the Nasdaq been more diverse before the more recent tech booms? I’m not too good at searching sorry 😅
Has Nasdaq always been tech heavy?
byu/TheGrapeRaper ininvesting
Posted by TheGrapeRaper
4 Comments
QQQ simply follows the top 100 non financial companies on the NASDAQ, since the biggest companies in the U.S. tend to be technology related you end up with a tech focused ETF.
No.
It has been this way since the late 90s
Nasdaq is an exchange where over 5,000 companies’ stocks are listed and traded. The Nasdaq 100 tracks the top 100 Nasdaq companies, weighted by market cap.
The Nasdaq 100 itself includes companies like Dollar Tree, Marriott, Pepsi, Kraft-Heinz, Walgreens, Starbucks, Coca Cola, Lululemon, etc.
Nasdaq is not a tech exchange, and the Nasdaq 100 is not a tech index. What’s happening is, in the 21st century marketplace, tech (and tech adjacent) companies simply make a ton of money. Industry in 2024 is largely tech sector. You see the same thing in the S&P 500, but that doesn’t mean it’s a tech index. The US is just a tech economy.