Nasdaq 100 produces higher long-term returns, volatility than broader U.S. equities

The Nasdaq 100 index, which has a nearly 60% weight to technology, peaked at 20,675.38 on July 10. Since then, the index has lost 12.6%.

The Nasdaq 100’s 7.3% year-to-date return lags the Russell 3000 and S&P 500 by about 210 and 340 basis points, respectively. However, the Nasdaq 100 topped the other U.S. equity indexes over longer periods. Over 10 years, the index produced a 17.8% annualized return, but it had an 18.6% volatility, both higher than the other two indexes.

The Nasdaq 100 had higher swings in its annual returns. The highest return since 2018 was last year’s 55.1% after the index lost 32.4% the previous year.