The Nasdaq 100 stocks have been giving investors a real momentum run in 2021, and the momentum has been strong. After the Covid-19 pandemic, investors have poured money into the technology and digital platforms space. This has resulted in some incredibly positive returns for those who got in early.
The Nasdaq 100 index provides another opportunity to invest in tech and it’s hosted some impressive returns since the start of 2021. Indeed, thanks to the pandemic, many of the largest companies have experienced tremendous growth in value, and that’s why Nasdaq 100 has reaped such great profits for investors.
First and foremost, the index is made up of the 100 largest non-financial stocks listed on the Nasdaq exchange. The stocks that dominate the index span multiple sectors and industries and provide investors with access to world-leading technology groups, healthcare companies, and other smaller Nasdaq constituents. Some of the stocks in the index include Apple, Microsoft, Amazon, Alphabet, Facebook, and Netflix.
Moreover, there are several other impressive Nasdaq 100 stocks that give investors an opportunity to diversify their portfolios. For example, NVIDIA Corporation, the maker of graphics cards and processors, surged in value as many people and businesses have continued to depend on the cloud. Furthermore, the cybersecurity space is still booming as well, and stocks like Check Point, Symantec, and Palo Alto Networks form part of the Index.
The Nasdaq 100 is an excellent benchmark to measure the performance of the tech sector. Many of the stocks have seen their share price increase by double-digits this year. As such, it is not surprising that the index has outperformed the other major stock indices by an impressive margin.
The Nasdaq 100 is not only rewarding investors with impressive returns, but it is also diversifying their portfolios and mitigating risk. The fund may be volatile over the short-term but this is precisely why investors like it. As the Covid-19 pandemic eventually recedes, investors can feel safe in the knowledge that they have a wide variety of Nasdaq 100 stocks in their portfolios to protect them from a potential correction.
