Ever heard someone say “the NASDAQ”??

What is it?

Can you buy it?

Sit back, get your pen , and take some notes

Time to learn !

(thread)

The NASDAQ is both a stock exchange, as well as an index

The NASDAQ is a more technology based exchange, compared to the NYSE

For the sake of this thread, I am going to focus on the index portion of the NASDAQ

Remember, none of this is investing advice!

There are 2 major indexes that come from the NASDAQ

NASDAQ composite
NASDAQ 100

Both of these include both American companies, as well as companies incorporated outside of the United States

I’ll go into each of them in the following tweets

The NASDAQ composite is made up of more than 2,500+ stocks traded on the exchange

Often referred to as just “the NASDAQ”

What are some of the stocks that make up the NASDAQ composite??

Here is a short list (there are 2,500+... that would make for a long list)

$FLWS
$ALGT
$ABCB
$BJRI
$AMZN
$BSVN
$TSLA
$AAPL
$ZM
$AAL
$AIMT

2,500+ companies is A LOT to choose from

So you can also invest into some index funds that mimic the NASDAQ composite

Here are a few:

$ONEQ
$FNCMX

(there aren’t many index funds for the NASDAQ composite)

But don’t worry, there’s more!

The NASDAQ 100 is another index based off of the NASDAQ

This index includes stocks of the 100 largest non-finance companies on the exchange

These 100 companies make up more than 90% of the weight of the NASDAQ composite index

As of June 2020, majority of the NASDAQ 100 is made up of technology related stocks

But companies can be added or removed each year depending on their market value

Look at this

What are some of the companies in the NASDAQ 100?

$AAPL
$MSFT
$TSLA
$TMUS
$SBUX
$ATVI
$MAR
$COST
$FB
$GOOG

But what if you want an index fund that mimics the NASDAQ 100??

Here are a couple:

$QQQ
$USNQX

(not many here either)

Remember, just because a stock is on a major index, doesn’t mean it is a good or bad investment!

Always do your research when investing!

With that being said...

The trailing 10 yr average of the NASDAQ composite index (according to Morningstar) is

18.74%

This makes sense, because of the tech heavy weighted portion

I hope you enjoyed reading this thread and learned something new on investing!!!

I want to shout out @BWPFinance for giving me this idea to make a thread on!

Give him a follow!!

Tomorrow may be a thread on another HUGE index

Let’s connect! Send me a DM!

@DecadeInvestor