Demystifying the Nasdaq-100: 5 Things to Know
The Nasdaq-100 Index® is a powerhouse in the world of finance, representing some of the most innovative and influential companies in the tech industry. If you’re considering investing or simply want to stay informed, here are five essential things to know about the Nasdaq-100 and the companies it encompasses:
1. Tech Dominance
The Nasdaq-100 is heavily skewed towards technology companies, with giants like Apple, Microsoft, and Amazon leading the pack. These companies are at the forefront of innovation, driving advancements in areas such as artificial intelligence, cloud computing, and e-commerce.
2. Diverse Sector Representation
While technology companies dominate the index, the Nasdaq-100 also includes firms from other sectors such as healthcare, consumer discretionary, and communication services. This diversity provides investors with exposure to a wide range of industries, reducing risk through portfolio diversification.
3. Global Reach
Many of the companies listed on the Nasdaq-100 have a global presence, generating revenue from international markets. This global reach can offer investors opportunities for growth and exposure to emerging economies, making the index a valuable addition to any investment portfolio.
4. Performance Benchmark
The Nasdaq-100 is often used as a benchmark for the performance of the technology sector and the broader market. Its performance is closely watched by investors, analysts, and economists as an indicator of economic health and market sentiment.
5. Innovation and Disruption
Companies included in the Nasdaq-100 are known for their disruptive business models and innovative technologies. From cutting-edge biotech firms to revolutionary software companies, these innovators are reshaping industries and driving future growth opportunities.
The Nasdaq-100 index offers investors exposure to some of the most dynamic and forward-thinking companies in the world. By understanding its composition and key characteristics, investors can make informed decisions to capitalize on the potential growth and innovation represented by this influential index.
Important Information
An investment in the Fund involves risk, including possible loss of principal. Fund information is not intended to represent future portfolio composition. Portfolio holdings are subject to change and should not be considered a recommendation to buy individual securities.
The Fund invests in the largest non-financial companies that are traded on the Nasdaq Stock Market. They are currently concentrated in the technology sector which has been among the volatile sectors of the U.S. stock market. During a declining stock market, this fund would lose money. It would potentially lose more money than other large cap funds.
Nasdaq®, Nasdaq-100® and Nasdaq-100 Index® are trade or service marks of The Nasdaq Stock Market, Inc. which with its affiliates are the “Corporations”) and are licensed for use by the Fund. The Fund has not been passed on by the Corporations as to their legality or suitability. The Fund is not issued, endorsed, sold, or promoted by the Corporations. The Corporations make no warranties and bear no liability with respect to the Fund.
It is not possible for individuals to invest directly in an index. Performance figures for an index do not reflect deductions for sales charges, commissions, expenses or taxes.
Shelton Funds are distributed by RFS Partners, a member of FINRA and affiliate of Shelton Capital Management.
Investors should consider a fund’s investment objectives, risks, charges, and expenses carefully before investing. The prospectus contains this and other information about the fund. To obtain a prospectus, visit www.sheltonfunds.com or call (800) 955-9988. A prospectus should be read carefully before investing. Diversification does not assure a profit or protect against lost in a declining market.
INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.