The Nasdaq-100®'s commitment to innovation
This article was produced in partnership with Nasdaq
Key takeaways
- Evolution and innovation. The Invesco NASDAQ 100 ETF (QQC) provides exposure to the innovative companies of the NASDAQ-100 Index which constantly evolve over time.
- Research and development (R&D). NASDAQ-100 companies’ higher R&D spending has resulted in higher revenue, earnings, and dividends over time.
- Diversified themes. Instead of concentrating on one theme, the NASDAQ-100 Index provides access to a diversified range of themes[1].
This evolving lineup of innovative companies has strongly outperformed over the last four decades
The NASDAQ-100 Index just celebrated its 40th anniversary, growing from a market cap of $58 billion in 1985 to a whopping $27 trillion as of Dec 31, 2024. The index, which consists of the 100 largest non-financial companies on the NASDAQ Stock Market, has experienced changes in its constituents over time. But its commitment to innovation — and its record of outperformance — has persisted for four decades.
Over the last four decades, the index has held more than 500 companies at different times. Now, only six of the original companies remain in the index: Apple, Micron Technologies, Intel, KLA-Tencor, PACCAR, and Costco. Since launch, the NASDAQ-100 Index has delivered a cumulative return of 19,521% or, on an annualized basis, 13.9% as of July 31, 2025 — outperforming the S&P 500 Index’s annualized return of 11.7% in Canadian dollars.
The NASDAQ-100 Index has outperformed the S&P 500 Index in the long run
Cumulative return since common inception of 01/31/1985
Source: Morningstar Direct, data as of 7/31/2025.
R&D is the key driver for innovation and sustainable growth
The NASDAQ-100 Index is, surprisingly to some, not just made of up technology companies. In fact, it’s also home to disruptors and leading names from a diverse range of industries, companies that typically spend more capital on research and development. This tactic has resulted in higher revenue, earnings, and dividends over time. Once again, this was a key factor in helping the NASDAQ-100 Index consistently outperform the S&P 500, both then and now.
NASDAQ-100 Index’s higher R&D spending has yielded higher revenue than the S&P 500
Source: Nasdaq, data as of 12/31/2024. Data in USD.
NASDAQ-100 Index has outperformed the S&P 500 for revenue, earnings, and dividends
Source: Nasdaq, as of 12/31/2013 through 12/31/2024. Most current available data available. For illustration purposes only, an investor cannot invest directly in an index. Data in USD. SPD.
Trying to pick just one winning theme is difficult
Instead of concentrating on one specific theme, the NASDAQ-100 Index provides access to a diversified range of themes such as artificial intelligence (AI) and big data, cloud computing, cybersecurity, robotics, biotechnology, clean energy, and both internet and green economies. Diversification across different themes can help mitigate investment risk. This means, when one theme is experiencing headwinds, others may have positive momentum.
A good example of risk mitigation is the AI boom in 2023. Company revenues tied to AI-related products were experiencing exponential growth, while companies in the clean energy space did not generally fare well. This illustrates how diversification over a variety of themes can benefit investors by avoiding concentration.
It is also important to note that the NASDAQ-100 Index is not entirely a technology index. Its top sectors include information technology (IT), consumer discretionary, communication services, healthcare, and consumer staples.
Top sectors in the NASDAQ-100 Index
Source: Morningstar Direct, data as of 7/31/2025.
Invesco’s work with Nasdaq
Nasdaq and Invesco have both long been associated with innovation. The Nasdaq indices cover leading-edge companies, while Invesco enables investors to access them through our efficient range of ETFs and mutual funds.
Discover Invesco NASDAQ 100 ETFs
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Pat Chiefalo, CFA®
Senior Vice President
Head of ETFs and Indexed Strategies
Pat Chiefalo is responsible for expanding Invesco’s Canada ETFs business. Prior to joining in 2021, he was a managing director and head of iShares Canada at BlackRock. Before that, he also created and led National Bank Financial’s ETF research efforts and served as the vice president of derivatives at Bank of America, Merrill Lynch.
Mr. Chiefalo earned a BASc degree in engineering from the University of Toronto and an MBA from the Schulich School of Business at York University. He is a Chartered Financial Analyst® (CFA) charterholder and previously a board member of the Canadian ETF Association and the Investment Funds Institute of Canada.
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[1] Source: Morningstar Direct, as of 7/31/2025.
