"The Nasdaq stock exchange is typically the destination of choice for technology companies looking to go public. It offers lower listing fees than the New York Stock Exchange, in addition to a smoother listing process with fewer barriers, so it's ideal for rapidly growing, early-stage companies. The Nasdaq-100 is an index of 100 of the largest non-financial companies listed on the Nasdaq, and given the nature of the exchange, it features a very high concentration of technology names."
"Many of them operate at the forefront of high-growth industries like artificial intelligence (AI), cloud computing, digital advertising, and more, driving the Nasdaq-100 to much higher annual returns than the more diversified S&P 500 (SNPINDEX: ^GSPC)."
"The Nasdaq-100 and the S&P 500 share many of the same top holdings, but the Nasdaq assigns them much higher weightings. In fact, the top five positions in the Invesco QQQ ETF represent 39.5% of the value of its entire portfolio, whereas those same stocks have a combined weighting of 30.2%"
The Nasdaq stock exchange offers lower listing fees and a smoother listing process than the New York Stock Exchange, attracting rapidly growing technology companies. The Nasdaq-100 comprises 100 of the largest non-financial Nasdaq-listed companies and is heavily concentrated in technology names. Many Nasdaq-100 firms lead high-growth industries such as artificial intelligence, cloud computing, and digital advertising, contributing to higher annual returns than the more diversified S&P 500. The Invesco QQQ Trust (QQQ) is an ETF that mirrors the Nasdaq-100 by holding the same stocks with similar weightings. The top five holdings account for roughly 39.5% of QQQ, reflecting concentrated exposure. Historical performance suggests long-term investors rarely face a bad entry point.
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