NASDAQ100 VS S&P 500: What You Need To Know

Here is the story of the two Nasdaq VS S&P 500 stock indexes that you should know. The S&P 500 Index is a good investment choice if you are looking to diversify outside of the Indian equity market. However, following the way of the S&P 500 index is not your only option. Another popular and widely tracked index of the American equity market is the Nasdaq 100. If you want to try your luck with NAS100, you can visit to hire its brokers.

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How does it compare to the S&P 500 index? Which of the two should you choose? Then what about the Nasdaq VS S&P 500?

Although the S&P 500 can help you diversify across multiple industries (fast-growing and mature industries). If you want a concentrated exposure from technology sector, US100 can give it to you.

Therefore, investing in the Nasdaq 100 proves to be very rewarding.

Let’s take a look at some data on index performance in the long run.

Better returns

We calculated 5-year rolling returns utilizing 33-year worth of data on the S&P 500 TR and Nasdaq 100 from Jan-88 to Apr-20.

The American market index, S&P 500 TR, and Nasdaq 100 have been converted to rupee equivalents (INR) using the relevant USD-INR exchange rates. TR represents the total return and includes dividends (assuming it is reinvested in the index). Nasdaq 100 (INR) returns have been adjusted to include a 1% dividend yield.

The data shows you have a greater chance of getting higher returns with the Nasdaq 100 (INR) compared to the S&P 500 TR (INR).

In the last 33 years, the Nasdaq 100 (INR) has asissted investors with a five-year annual return of 15% or even higher, It’s around 61% of the time. While S&P 500 TR (INR) has done the same but only 54% of the time. See the table for more details.

Higher volatility

We use the maximum drawdown chart to see how the two indices have performed in the years the market has fallen. The decrease in the index value each day relative to its peak value up to that day, over some time.

The more volatile an index will have the steeper drawdown. The Nasdaq 100 was more volatile and significant during the 2000s.