Investment Intelligence

When Performance Matters:
Nasdaq-100® vs. S&P 500

The Nasdaq-100 and S&P 500 stand as two of the most prominent equity indices in the United States.
With a significant focus on high-performing sectors like Technology, Consumer Discretionary, and HealthCare, the Nasdaq-100 has managed to outshine the S&P 500 by a considerable margin from December
31, 2007, to September 30, 2023.
Let's delve into a detailed analysis of their annual total returns, factoring in reinvested dividends. The
Nasdaq-100 Total Return™ Index has proven its mettle by outperforming in 12 out of the 16 calendar
years in our study, resulting in an impressive average return of +17.5%. In 2022, a notable exception
occurred when the Nasdaq-100 lagged the S&P 500 by -14.3%. This marked the most substantial
underperformance within our study. This downturn was primarily attributed to the global weakness
observed in the Growth stocks segment, which the Nasdaq-100 heavily comprises. However, there's
a silver lining in the more recent data. The Nasdaq-100 made a strong recovery over the first threequarters of 2023, outperforming the S&P 500 by a substantial margin of 22.3%. This resurgence was
fueled by the recovery of the Technology and Growth-related stocks within the index.

Annual Total Return
AnnualPerformance
Total Return Performance
NASDAQ-100
Nasdaq-100TOTAL
Total RETURN
ReturnCumulative Total Return Performance

S&P
500500TOTALRETURN
S&P
Total
ReturnNASDAQ-100 TOTAL RETURN

60%

1000
900

40%

800
700

20%

600
500

0%

400
300

-20%

200
100-40%

2022

2021

2020

2019

2017

2018

2015

2016

2014

2013

2011

2012

2010

2009

2008

2022

2023

2021

2019

2020

2018

2017

2015

2016

2014

2012

2013

2011

2010

2009

02008

-60%

S&P 500 TOTAL RETURN

2023 data is through 9/30/2023

nasdaqomx.com/indexes

1Historical Performance

Nasdaq-100

S&P 500

Total ReturnTotal Return

Cumulative Return

726%

301%

exceeding twice the performance of the S&P 500 Total Return

Annualized Return

14.3%

9.2%

Index.

Annualized Volatility

23%

21%

Amidst recent market volatility, the Nasdaq-100 Total Return
Index has consistently sustained cumulative total returns

Industry (ICB) Breakdown as of September 30, 2023

Rolling Volatility
NASDAQ-100 TOTAL RETURN

NASDAQ-100

S&P 500 TOTAL RETURN50%

S&P 500Technology

32%

Consumer Discretionary

40%
30%
20%
10%

12/30/2022

12/30/2021

12/30/2020

12/30/2019

12/30/2017

12/30/2018

12/30/2016

12/30/2015

12/30/2014

12/30/2012

12/30/2013

12/30/2011

12/30/2010

12/30/2009

12/30/2008

0%

14%

Health Care

7%

Telecommunications

6%
2%

Industrials

5%

Consumer Staples

4%
5%

Utilities

1%
3%

Basic Materials

0.3%
2%

Energy0.7%

Financials

0.0%Real Estate

0.3%
2%

57%

19%

13%

12%

5%
10%

Rolling Volatility (One Year)

Current Industry Weights

The one-year rolling volatility, calculated by annualizing theAs of September 30, 2023, there are notable disparities instandard deviation of daily returns, has shown a slight elevation

sector allocations between the Nasdaq-100 and the S&P

in the Nasdaq-100 compared to the S&P 500. On average,

500. As highlighted earlier, the significant weightings in theit has been just 2.6% higher over the period spanning fromTechnology and Consumer Discretionary sectors have played

December 31, 2007, to September 30, 2023. What's particularlya pivotal role in driving the Nasdaq-100 to multiple years ofnoteworthy is the impressive overall correlation of daily returns,

outperformance over the past 16 years.

which is 93%. This level of correlation is impressive, especiallyconsidering the Nasdaq-100's heavy concentration in theTechnology sector.

nasdaqomx.com/indexes2Conclusion
During the first three quarters of 2023, the Nasdaq-100 exhibited an impressive performance by gaining 35.4% on a total returnbasis, significantly surpassing the S&P 500's gain of 13.1%. This outperformance can be attributed to the Nasdaq-100's substantial
allocations in high-performing sectors like Technology, Consumer Discretionary, and Health Care. Companies within these sectors
have demonstrated notable resilience in maintaining their long-term growth trajectory, even in the face of various economicchallenges, including concerns about inflation, disruptions in the supply chain, and potential shifts in central bank policies, among
other factors. This resilience remains steadfast even in the midst of uncertainty surrounding interest rates. The pervasive influenceof technology across global industries, fostering operational efficiency and innovation, underscores the Nasdaq-100's potential tosustain its long-term trend of outperformance. The strength and adaptability of companies within the Nasdaq-100 make them wellpositioned for future growth.

Sources: Nasdaq Indexes, Bloomberg
Disclaimer:Nasdaq® is a registered trademark of Nasdaq, Inc. The information contained above is provided for informational and educational purposes only, and nothing contained herein should beconstrued as investment advice, either on behalf of a particular security or an overall investment strategy. Neither Nasdaq, Inc. nor any of its affiliates makes any recommendation to buy orsell any security or any representation about the financial condition of any company. Statements regarding Nasdaq-listed companies or Nasdaq proprietary indexes are not guarantees of futureperformance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence andcarefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.
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