How Is the Nasdaq Different From Similar Indices?
Thomas Brock explains that the S&P 500 tracks 500 large U.S. companies and the NASDAQ Composite tracks about 2,500 tech-oriented companies worldwide, and both indices enable low-cost, passive index-linked investing.
Video Transcript
The S and P five hundred and the NASDAQ Composite are probably the two most well known indices in the world. Both track large cap stocks. Now the S and P five hundred tracks about five hundred of the largest US companies. The NASDAQ is a little different. It tracks about two thousand five hundred technology oriented companies located throughout the world. Both indices are used to facilitate index linked investing. This is a low cost, passive form of investment where investors are basically getting the exposure to those markets without any judgment call by the fund administrators.
