Benchmarks the technology constituents of the NASDAQ-100—capturing mega-cap platform leaders and high-growth chipmakers in one fast-moving gauge.
1. What It Tracks
First and foremost, the NASDAQ-100 Technology Sector Index (ticker NDXT) includes every NASDAQ-100 company classified by ICB as Technology Hardware, Semiconductors, or Software & Services. Because it inherits the NASDAQ-100’s float-adjusted market-cap weighting, giants such as Apple and Microsoft naturally drive index moves, yet quarterly caps ensure no single stock dominates.
2. Snapshot (May 2025)
| Metric | Value |
|---|---|
| Constituents | 42 |
| Index Level (price) | 11 940 |
| Float-Adj. Market Cap | US $13 trillion |
| Dividend Yield | 0.8 % |
| Top Weights | Apple 12 %, Microsoft 11 %, Nvidia 9 %, Broadcom 6 %, Adobe 4 % |
| Sub-Industry Mix | Systems & Phones 29 %, Semis 28 %, Cloud/SAAS 26 %, Fintech & IT 17 % |
Quarterly rebalances in March, June, Sept and Dec update weights and sweep in any sector reclassifications.
3. Recent Performance (Total Return, USD)
| Year | NDXT | NASDAQ-100 | Key Drivers |
|---|---|---|---|
| 2022 | –27 % | –32 % | Rate shock trimmed growth multiples |
| 2023 | +59 % | +55 % | Generative-AI chip boom |
| 2024 | +26 % | +24 % | Cloud cap-ex rebound, smartphone refresh cycle |
| YTD 2025 | +9.7 % | +8.1 % | Edge-AI demand, semiconductor tightness |
Thus, tech’s higher beta magnifies both rallies and corrections across cycles.
4. Why Investors Use It
- Pure Tech Beta – One ETF (QTEC) mirrors NDXT, offering concentrated exposure without non-tech dilution.
- Tactical Hedging – Futures and options on the Micro NASDAQ-100 can proxy-hedge tech books thanks to high overlap.
- Sector Allocation – CIOs benchmark active U.S. tech mandates against NDXT rather than broader, more diversified indices.
- Macro Signal – Because tech earnings hinge on cap-ex and consumer gadgets, index swings often telegraph sentiment for global growth and supply-chain health.
5. Strengths & Caveats
| Strengths | Caveats |
|---|---|
| Rules-based, liquid, intraday calculation | Heavy mega-cap concentration ≈ 32 % in AAPL+MSFT |
| Quarterly caps curb single-stock risk | No small- or mid-cap disruptors—only NASDAQ-100 members |
| Long price history dating to 1998 | 90 % weight sits in U.S. listings—minimal geographic diversity |
| Deep ETF & options market aids execution | Valuation sensitive to Fed policy and chip cycles |
6. Themes to Watch
Moreover, several catalysts could re-shape index composition and returns:
- AI Edge Devices – Smartphone and laptop inference chips may boost hardware revenues by double digits.
- Semiconductor Capacity Race – Foundry CAPEX could push semiconductor weight beyond 30 % by 2026.
- Software AI Monetisation – Usage-based pricing shifts could expand SAAS margins despite slower seat growth.
- Regulation & Antitrust – Ongoing EU and U.S. cases may cap mega-cap expansion, raising mid-cap share in future reviews.
Key Takeaways
The NASDAQ-100 Technology Sector Index distills America’s tech behemoths and pace-setting chipmakers into a single, liquid benchmark. With 42 names, an 11 940 price level and volatility above the broader NASDAQ-100, it stands as the definitive yard-stick for large-cap U.S. technology exposure—ideal for tactical plays, benchmarking and thematic allocations alike.