How to trade or invest in the Nasdaq 100
The Nasdaq 100 is the world's leading benchmark for high-growth technology companies. Here is how to get exposure to it, whether you want to trade short-term price movements or invest for the longer term.
Key Takeaway
The Nasdaq 100 delivered a 21% total return in 2025, outperforming the S&P 500 by 3 percentage points, and remains the primary global index for AI and technology exposure.
With us, you can trade the Nasdaq 100 using spread bets or CFDs on the index, or invest in individual Nasdaq stocks and ETFs through our share dealing account or stocks and shares ISA.
The Nasdaq 100 is the world's most closely watched technology index. It tracks the 100 largest non-financial companies listed on the Nasdaq Stock Market, an index dominated by global technology and AI leaders including Apple, Microsoft, Nvidia, Alphabet, Amazon, and Meta.
It’s the benchmark most associated with the AI investment theme, and the one that institutional and retail investors turn to for high-growth exposure.
The index delivered a 21% total return in 2025, outperforming the S&P 500 by 3 percentage points. Technology companies — led by Alphabet, Nvidia, and Broadcom — drove 88% of the index's total return, with the technology sector averaging a 61% weight.
This guide covers what the Nasdaq 100 is, how it works, and the different ways to get exposure to it through us.
What is the Nasdaq 100?
The Nasdaq 100 is a market capitalisation-weighted index of the 100 largest non-financial companies listed on the Nasdaq Stock Market. Financial companies (banks, insurers, and investment firms) are excluded and instead tracked by the separate Nasdaq Financial 100.
On our platform, the Nasdaq 100 is traded as the US Tech 100.
The index is rebalanced quarterly and reconstituted annually. In the 2025 reconstitution, six new constituents were added, all of which had posted gains of at least 50% in the year.
As of early 2026, the top 10 holdings account for 52% of index weight, reflecting the significant concentration in mega-cap technology companies. The top performers in 2025 included Palantir Technologies, Alphabet and Broadcom, with Micron Technology the standout at 240% growth.
Trading vs investing: the key difference
There are two broad approaches to getting Nasdaq 100 exposure: trading on short-term price movements using leveraged derivatives, or investing for the longer term by owning ETFs or individual stocks outright.
| Trading (spread bets / CFDs) | Investing (ETFs / shares) | |
| Leverage | Yes | No |
| Ownership of asset | No | Yes |
| Profit from falling prices | Yes | No (without shorting) |
| CGT on profits | Spread bets exempt; CFDs taxable | Taxable (ISA shelters gains) |
| Overnight funding charges | Yes(cash positions) | No |
| Suitable for | Short to medium term | Medium to long term |
How to trade the Nasdaq 100 with spread bets or CFDs
Spread bets and CFDs allow you to speculate on Nasdaq 100 price movements without owning the underlying index. Both are leveraged products — you put up a margin deposit and gain exposure to the full value of your position. This amplifies both gains and losses. Under FCA rules, retail clients benefit from negative balance protection, meaning you cannot lose more than the funds in your account.
With us, you can trade the Nasdaq 100 as the US Tech 100 via spread bets or CFDs on cash (spot) prices or futures.
Cash (spot) trading reflects the current price of the index. Positions held overnight incur a funding charge, calculated on the full notional value of the position. This makes spot positions more cost-efficient for short-term trades.
Futures trading allows you to agree to trade the US Tech 100 at a set price on a specific date. The overnight funding cost is built into a slightly wider spread rather than charged separately, making futures more suitable for medium-term positions where you want to avoid daily funding charges accumulating.
Spread betting profits are free from capital gains tax and stamp duty for most UK residents. CFD profits are subject to CGT above the £3,000 annual allowance. For a full breakdown, see our day trading tax guide.
How to invest in the Nasdaq 100
You cannot buy the Nasdaq 100 index directly. However, there are two practical routes to investing in it: Nasdaq 100 ETFs, and individual Nasdaq 100 stocks.
Nasdaq 100 ETFs
A Nasdaq 100 ETF tracks the performance of the index, giving you exposure to all 100 constituents in a single investment. Several Nasdaq 100-specific UCITS ETFs are available and investable through our share dealing platform.
UK-listed UCITS ETFs can be held within a stocks and shares ISA, sheltering gains and income from capital gains tax and income tax up to the annual £20,000 allowance. This makes ETF investing within an ISA one of the most tax-efficient routes to long-term Nasdaq 100 exposure. You can also hold Nasdaq ETFs within a SIPP for retirement investing.
For more on ETF investing, see our guides on how to trade or invest in ETFs and how to buy US ETFs in the UK.
Individual Nasdaq 100 stocks
You can also buy shares in individual Nasdaq 100 companies through our share dealing platform, with US shares available at £0 commission per trade. This approach lets you target specific companies — whether that is Nvidia for AI chip exposure, Microsoft for cloud and enterprise AI, or Alphabet for advertising and AI search — without being tied to the full index weighting.
For guidance on evaluating individual stocks, see our guides on fundamental analysis and how to pick stocks.
What moves the Nasdaq 100?
Several factors drive Nasdaq 100 price movements. Understanding them helps you anticipate volatility and manage risk:
- Earnings reports from mega-cap constituents have outsized impact. Because the top 10 holdings account for over half the index, a major earnings miss or beat from Apple, Microsoft, or Nvidia can move the whole index significantly.
- Interest rates and Fed policy have a particularly strong influence on the Nasdaq 100 because technology companies are valued on future earnings expectations. When rates rise, the present value of those future earnings falls, putting downward pressure on valuations.
- AI and technology spending trends are the dominant thematic driver in 2026. Capital expenditure from Microsoft, Google, Amazon, and Meta on AI infrastructure has been a key support for the index. Any signals of a slowdown in AI investment would likely weigh on the index materially.
- Geopolitical and trade policy risk affects the Nasdaq 100 disproportionately given its concentration in global technology companies with significant exposure to China, semiconductors, and international supply chains.
For guidance on how to analyse index moves, see our technical analysis guide and our 10 trading indicators guide.
Nasdaq 100 trading hours
The Nasdaq Stock Market is open from 2:30pm to 9pm UK time (9:30am to 4pm EST). With us, the US Tech 100 is available to trade 24 hours a day from Sunday evening to Friday night, including out-of-hours periods, giving you access to price movements around major news events even when the underlying market is closed. For full trading hours detail, see our Nasdaq opening and closing times guide.
How to get started with us
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with us. Trading leveraged products on a concentrated, high-volatility index like the Nasdaq 100 carries significant risk. Never risk more than you can afford to lose, and always have a risk management strategy in place before opening a position. Past performance is not a reliable indicator of future results.
Ready to start?
Important to know
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Connect with us
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Professional clients trading spread bets and CFDs can lose more than they deposit.
The value of shares, ETFs and other ETPs bought through a share dealing account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results. Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing.
Crypto - Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
Share dealing and IG Smart Portfolio accounts provided by IG Trading and Investments Ltd, CFD accounts are provided by IG Markets Ltd, spread betting provided by IG Index Ltd, cryptoassets services are provided by IG Digital Assets Ltd.
IG is a trading name of IG Trading and Investments Ltd (a company registered in England and Wales under number 11628764), IG Markets Ltd (a company registered in England and Wales under number 04008957) and IG Index Ltd (a company registered in England and Wales under number 01190902). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Trading and Investments Ltd (Register Number 944492) and IG Index Ltd (Register number 114059) are authorised and regulated by the Financial Conduct Authority.
The information on this site isn’t directed at residents of the United States, Belgium or any particular country outside the UK and isn’t intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
