What Is the US Tech 100 Index?

While investing your money in assets is easy, deciding where to invest is a much more difficult part. To avoid this "decision paralysis," successful investors always diversify—i.e. put their capital in a wider variety of assets and asset classes. This is exactly why indexes like the US Tech 100 and the S&P 500 exist, allowing investors to own a batch of different stock shares with just one position.

Namely, the US Tech 100 is an index from the global financial exchange NASDAQ. It tracks the performance of the 100 largest and most actively traded US technology stocks, chosen for their potential for high volatility, growth, as well as liquidity. The index captures approximately 85% of the total market capitalization of publicly listed tech companies in the United States, making it one of the potential options for investors who want to invest in the leading tech companies and also diversify their portfolios.

Let's find out more about the US Tech 100.

What Companies Are Included?

As we mentioned, the US Tech 100 index is comprised of the top companies in the tech sector that are listed on the NASDAQ stock exchange. Specifically, the index spans a variety of industries, including software, computer services, semiconductor, telecommunications services, and internet-related businesses. Some of the most notable companies included in this index are Microsoft Corporation (MSFT), Apple Inc. (AAPL), Amazon.com Inc. (AMZN), Alphabet Inc. (GOOGL), Facebook Inc. (FB), and Intel Corporation (INTC).

To see the details & full list of companies, consider visiting a reputable online platform like Business Insider.

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Should You Invest in the US Tech 100 Index?

As it represents some of the most innovative and dynamic firms in the world, investing in the US Tech 100 index can yield potential returns over time.

However, since the US Tech 100 is heavily concentrated on tech companies, it's important to remember that there are risks associated with this type of investment. Therefore, before you decide anything, do your research and make sure to understand both the potential rewards and risks involved.

» Want to learn more? Take a look at Fortrade's US Tech 100 index chart