The 3 Largest Nasdaq 100 Index ETFs

The Nasdaq 100 Index is one of the most followed stock indices in the world and for many investors represents the simplest way to bet on the largest American technology companies. But the road to it isn’t just one. The three largest ETFs linked to this index together manage assets exceeding half a trillion dollars, yet they differ fundamentally in costs, structure, and risk levels. Which one makes sense for you?

Key points of the analysis:

The Nasdaq 100 includes the hundred largest non-financial companies traded on the Nasdaq exchange. In practice, it’s an index dominated by technology firms led by Nvidia $NVDA, Apple $AAPL, Microsoft $MSFT, or Amazon $AMZN, supplemented by representatives from consumer sectors, healthcare, or communication services. It is precisely the high concentration in technology and companies tied to artificial intelligence that has made it one of the world’s best-performing large indices in recent years, but also one of the most volatile.

This year is a perfect demonstration. The index first rose to record highs, then fell into a correction in the first quarter amid concerns about the return on massive AI infrastructure investments and the escalation of the Middle East conflict. This was followed by one of the steepest recoveries in its history, as April brought exceptionally strong growth supported by a calming geopolitical situation and robust results from technology giants. Those who wanted to make money on the Nasdaq 100 this year mainly needed nerves of steel.

For the vast majority of investors, the simplest path to this index is an ETF, an exchange-traded fund that passively replicates the index. However, the offering is broader than it might seem, and the differences between individual funds are far from cosmetic. Let’s take a look at the three largest of them.