Nasdaq Composite Index

Security types. Security or company types generally eligible include American Depositary Receipts, known as ADRs, common stocks, limited partnership interests, ordinary shares, and shares or units of beneficial interest.

Ineligible security types. Security types generally ineligible for the index include closed-end funds, convertible debentures, exchange traded funds, preferred stocks, rights, warrants, units, and other derivative securities.

Multiple classes. If a company has listed multiple security classes, all security classes are eligible, and each class must still meet all other Security Eligibility Criteria.

Listing. A security must be listed exclusively on the Nasdaq Stock Exchange.

Seasoning. The security must have traded for at least one day on the Nasdaq Stock Market and have a Nasdaq Official Closing Price.

Geography. There is no geographic or country eligibility criterion.

Industry. There is no industry or sector eligibility criterion.

Market capitalization. There is no market capitalization eligibility criterion.

Liquidity. There is no liquidity eligibility criterion.

Float. There is no float eligibility criterion.

Other criteria. There are no additional eligibility criteria.

In the Investor Bulletin on international investing, dated December 8, 2016, each ADR represents one or more shares of a foreign stock or a fraction of a share.

Weighting and Daily Maintenance

All securities that meet the applicable Security Eligibility Criteria are included in the index. An index reconstitution is conducted daily based on the reconstitution reference date, and an index rebalance is conducted daily based on the rebalance reference date.

The daily weight process uses security-level weights, which are derived using the price and total shares outstanding. Index shares are updated each day to reflect current total shares outstanding figures.

Securities that are no longer eligible are removed daily from the index. Index securities that are eligible for the index are added daily. Index securities are not replaced in the index.

Index Calendar

The index calendar in the methodology lists the following. Reconstitution frequency is daily, and rebalance frequency is daily. Reconstitution reference dates and rebalance reference dates are the previous trading day. Reconstitution announcement dates and rebalance announcement dates are listed as no announcements. Reconstitution effective dates and rebalance effective dates are at market open on each trading day.

The indexes are calculated Monday through Friday, except on days when the US markets are closed. The indexes are calculated during the trading day based on the Last Sale Price and are disseminated. Nasdaq announces index-related information via the Nasdaq Global Index Watch website. All Nasdaq indexes are managed by the governance committee structure and have transparent governance, oversight, and accountability procedures for the index determination process.

Individual index securities may be the subject of a variety of corporate actions and events. Wherever alternate methods are described, the index will follow the Market Cap Corporate Action Method.

The methodology change log entry effective May 21, 2021 records the following spinoff treatment: spinoffs must satisfy all eligibility criteria in order to be added to the index, and once added, spinoffs will remain in the index rather than being removed after the second day of trading.

Versions of the Index

The Nasdaq Composite index versions document, with a 2026 copyright, lists several versions of the index. NASDAQ Composite, with the symbol COMP, is the Price Return version. NASDAQ Composite Total Return, with the symbol XCMP, is the Gross Total Return version. Both have a base date of February 5, 1971 and a base value of 100. NASDAQ Composite Net Total Return, with the symbol XCMPNNR, is the Net Total Return version, with a base date of December 21, 2017 and a base value of 1000. The family also includes versions calculated in other currencies.

The Exchange Behind the Index

In a Nasdaq article dated February 11, 2021, the Nasdaq system launched on February 8, 1971, and Nasdaq stood for National Association of Securities Dealers Automated Quotations. The National Association of Securities Dealers, known as the NASD, was the regulator of OTC (or Over-the-Counter) brokers.

In the Securities and Exchange Commission press release 2006-9, dated January 13, 2006, the Commission approved the Nasdaq Stock Market LLC's application to become a registered national securities exchange. Since its creation in 1971, Nasdaq had operated under the supervision and control of the NASD. As a registered exchange, Nasdaq becomes a self-regulatory organization in its own right, responsible for its own and its members compliance with the federal securities laws. Nasdaq retains the ultimate responsibility to ensure that its regulatory obligations are fulfilled.

In the Nasdaq Initial Listing Guide dated January 2026, the Nasdaq Stock Market has three distinctive tiers: the Nasdaq Global Select Market, the Nasdaq Global Market and the Nasdaq Capital Market. The initial financial and liquidity requirements for the Nasdaq Global Select Market are more stringent than those of the Nasdaq Global Market.

Composition on September 30, 2026

The Nasdaq Composite factsheet with an as-of date of September 30, 2026 shows 3396 securities. The sector weights are Technology 65.77 percent, Consumer Discretionary 15.04 percent, Health Care 5.24 percent, Telecommunications 4.60 percent, Industrials 2.86 percent, Financials 2.66 percent, Consumer Staples 1.19 percent, Basic Materials 0.88 percent, Utilities 0.70 percent, Energy 0.57 percent and Real Estate 0.49 percent.

The five largest constituents are NVIDIA Corporation at 11.68 percent, Apple Inc. at 10.31 percent, Microsoft Corp at 8.08 percent, Amazon.com Inc at 5.70 percent and Alphabet Class A at 4.28 percent.

Earlier dated readings differ. As of October 31, 2023, Nasdaq reported 3,473 stocks in the index and a Technology weighting of 56.75 percent, followed by Consumer Discretionary at 18.13 percent.

In the research report with data as of September 30, 2021, the index tracks more than 3,000 companies using a straightforward market capitalization weighting scheme, and the top 20 constituents account for more than half (54 percent) of the index weightings. The report puts the combined weight of the top 10 at approximately 46 percent and the top 5 at approximately 37 percent. The performance of the Nasdaq Composite is heavily dependent on the strength of its largest members. The same report lists 650 non-US companies that choose to list on the Nasdaq Exchange, and the largest source of non-US listings tends to be China, at just over 1 percent of index weight.

In the Nasdaq article dated June 11, 2026, a small group of large-cap companies represents a significant share of the Composite's total weight.

The Nasdaq Composite and the Nasdaq-100

In the Nasdaq article Nasdaq Composite vs. Nasdaq-100: What Investors Should Know, dated June 11, 2026, the Nasdaq Composite includes virtually every security listed on the Nasdaq Stock Market, more than 3,000 companies. Each security is weighted by its total listed market capitalization, with no float adjustment and no concentration caps. There is no eligibility screen beyond basic listing requirements. The Composite includes financials, which are excluded from the Nasdaq-100.

The Nasdaq-100 includes 100 of the largest non-financial companies listed on Nasdaq. It uses a modified market capitalization weighting methodology, concentration constraints that limit the weight of any single company, and eligibility requirements including a minimum three-month seasoning period and average daily trading volume thresholds. It has an annual reconstitution in December with quarterly rebalances.

The purpose of the Composite is to reflect the overall performance of the Nasdaq-listed market. The Nasdaq-100 is designed to serve as a large-cap equity benchmark.

Using the Index as a Benchmark

In the Investor.gov glossary, a market index is a measurement of the performance of a specific basket of stocks considered to represent a particular market or sector of the US economy. The glossary names the Dow Jones Industrial Average as an index of 30 blue chip stocks of US companies.

In the investor insights article Get Off the Bench: A Look at Benchmarks, on the website of the Financial Industry Regulatory Authority, known as FINRA, benchmarks are indexes or averages that track a particular stock market or market segment, and it is important to choose the appropriate benchmark as a point of comparison. The article names the Dow Jones Industrial Average, S&P 500 and Russell 2000 as benchmarks. It does not name the Nasdaq Composite Index.

Under Item 4(b)(2)(iii) of Form N-1A, the table of average annual total returns also should show the returns of an appropriate broad-based securities market index.

Other benchmarks with entries in this dictionary include the MSCI EAFE Index, which captures large and mid cap representation across 21 Developed Markets countries, excluding the US and Canada, and the Bloomberg US Aggregate Bond Index, which measures the investment grade, US dollar-denominated, fixed-rate taxable bond market.

A Fund That Tracks the Index

The Fidelity Nasdaq Composite Index ETF seeks to provide investment returns that closely correspond to the price and yield performance of the Nasdaq Composite Index. In the prospectus dated January 29, 2026, the Nasdaq Composite Index is a widely recognized, market capitalization-weighted index. The fund is managed with a passive investment strategy, attempting to track the performance of an unmanaged index regardless of the current or projected performance of the fund's index. The fund may be concentrated in the securities of issuers in a particular industry or group of industries to approximately the same extent that the fund's index concentrates.

The prospectus lists the following among its principal risks. Stock markets and, as a result, stock market indexes, are volatile and can decline significantly. The technology industries can be significantly affected by obsolescence of existing technology and short product cycles. The performance of the fund and its underlying index may vary somewhat due to factors such as fees and expenses. Errors in the construction or calculation of the index may occur from time to time and may not be identified and corrected for some period of time. A non-diversified fund may invest a greater portion of its assets in securities of a smaller number of individual issuers. The value of securities of smaller issuers can be more volatile than that of larger issuers.

Index Data From the Federal Reserve Bank of St. Louis

The NASDAQ Composite series NASDAQCOM on the website of the Federal Reserve Bank of St. Louis lists its source as Nasdaq, Inc., its frequency as daily, close, and its units as Index Feb 5, 1971=100, Not Seasonally Adjusted. The series notes that the NASDAQ Composite Index is a market capitalization weighted index with more than 3000 common equities, and that the observations represent the daily index value at market close.

Index Funds and Exchange-Traded Funds

In the Investor Bulletin on index funds, dated August 6, 2018, an index fund is a type of mutual fund or exchange-traded fund that seeks to track the returns of a market index. Index funds have generally followed a passive, rather than active, style of investing. An index fund may not perfectly track its index. An index fund may underperform its index because of fees and expenses, trading costs, and tracking error. An index fund will be subject to the same general risks as the securities in the index it tracks. The S&P 500 Index, the Russell 2000 Index, and the Wilshire 5000 Total Market Index are among the market indexes that index funds may seek to track.

In the Investor.gov glossary, an index fund is a mutual fund, exchange-traded fund or unit investment trust that follows a passive investment strategy designed to achieve approximately the same return as a particular index before fees.

In the Investor Bulletin on the characteristics of mutual funds and exchange-traded funds, dated April 29, 2025, you can buy and sell exchange-traded fund shares on a national stock exchange at the prevailing market price throughout the trading day. While an exchange-traded fund's market price generally stays close to the end-of-day net asset value, it may vary significantly.

In the Investor Bulletin on reading a mutual fund prospectus, dated June 13, 2016, the principal strategies of the fund tell you how the fund intends to achieve its investment objective. All investments in funds involve risk of financial loss.

Exam Relevance

The Securities Industry Essentials examination content outline lists Benchmarks and indices as the sixth topic of Topic 3.1.2, Investment Returns, under 3.1, Trading, Settlement and Corporate Actions, in Section 3, Understanding Trading, Customer Accounts and Prohibited Activities. Topic 3.1.2 lists components of return, with interest, dividends, realized/unrealized gains and return on capital named in parentheses; different types of dividends, with cash and stock named in parentheses; dividend payment dates, with record date, ex-dividend date and payable date named in parentheses; concepts of measurement, with yield, yield to maturity, yield to call, total return and basis points named in parentheses; cost basis requirements; and benchmarks and indices. The outline does not name the Nasdaq Composite Index. Candidates should check the current outline before the examination.

Common Misunderstandings

The index holds only technology companies. The index has no industry or sector eligibility criterion, and the factsheet with an as-of date of September 30, 2026 shows a Technology weight of 65.77 percent.

The index holds only US companies. The index includes all domestic and international common type stocks listed on the Nasdaq Stock Market, and there is no geographic or country eligibility criterion.

The index is the same as the Nasdaq-100. The Composite includes financials, which are excluded from the Nasdaq-100, and the Nasdaq-100 includes 100 of the largest non-financial companies listed on Nasdaq.

The index holds only large companies. There is no market capitalization eligibility criterion.

The index excludes preferred stocks only when they are small. Preferred stocks are among the security types generally ineligible for the index.

The index replaces securities at set dates. Securities that are no longer eligible are removed daily, and eligible securities are added daily.

The index is calculated once per day. The indexes are calculated during the trading day based on the Last Sale Price.

The index and the Nasdaq Stock Market are the same thing. The index includes all domestic and international common type stocks listed on the Nasdaq Stock Market, and the Nasdaq Stock Market has three distinctive tiers.

The index adjusts each weight for float. In the Nasdaq article dated June 11, 2026, each security is weighted by its total listed market capitalization, with no float adjustment and no concentration caps.

A fund that tracks the index earns the index return. The performance of the fund and its underlying index may vary somewhat due to factors such as fees and expenses.

Key Points to Retain

The Nasdaq Composite Index includes all domestic and international common type stocks listed on the Nasdaq Stock Market.

The index is a market capitalization-weighted index.

There is no geographic, industry, market capitalization, liquidity or float eligibility criterion.

Reconstitution and rebalance frequency are both daily, with effective dates at market open on each trading day.

The Nasdaq Composite Index and the Nasdaq-100 differ: the Composite includes financials, which are excluded from the Nasdaq-100.

Closed-end funds, convertible debentures, exchange traded funds, preferred stocks, rights, warrants and units are among the security types generally ineligible.

The Securities Industry Essentials examination content outline lists Benchmarks and indices in Topic 3.1.2, Investment Returns.