Historical Total Returns for the Nasdaq-100 (1986-2016)

The Nasdaq-100 Index is one of the most widely-followed U.S. stock market indexes.  The Nasdaq-100 includes 100 of the largest domestic and international non-financial securities listed on the Nasdaq Stock Market based on market capitalization and is largely comprised of technology and biotech equities. The weightings of companies in the index are based on their respective market capitalizations, with rules capping the influence of the largest components. As of June 29, 2017, the four largest components of the index are Apple (comprising about 11.61% of the index), Microsoft (comprising about 8.23% of the index), Amazon (comprising about 7.15% of the index), and Facebook (comprising about 5.52% of the index).  Google would have been the second largest component (comprising about 9.15% of the index) if it had not been split into two different equities, Goog and Googl, a split which occurred in 2014.

The Nasdaq-100 was initiated on January 31, 1985 and became one of the most widely-followed technology indexes during the dot.com bubble. The chart below (click on the chart for a larger view) illustrates historical annual returns for the Nasdaq-100 index between the calendar years 1986 and 2016.  The Nasdaq-100 Index does not account for dividend payouts, but the Nasdaq-100 Total Return Index, which was initiated on March 4, 1999, does account for dividends.  The chart below calculated based on returns for (a) the Nasdaq-100 Index from January 1, 1986 - March 3, 1999; and (b) the Nasdaq-100 Total Return Index from March 4, 1999 - December 31, 2016. 

As shown below, the Nasdaq-100 recorded its second consecutive relatively mediocre annual return during 2016, rising 7.27%, although the index rose approximately about 338.6% during the calendar years between 2009 and 2016, an annualized return of an impressive 20.30%.  The Nasdaq-100 has rebounded in the first half of 2017, rising approximately 16.78% through the market close on June 30, 2017.

I still believe that the Nasdaq-100 is in the beginning or middle stages of a multi-year secular bull market run as investors reconsider the potential of high tech companies.  The Nasdaq-100 returned a total of about 4025.37% between 1986 and 2016, an annualized return of about 12.75%.  This greatly outperforms the total return of  about 2062.07%, or about 10.42% of the the S&P 500 Index during the same period of time.

Historical Returns for the Nasdaq-100 (1986-2014)

The Nasdaq-100 Index is one of the most widely-followed indexes of primarily technology and biotech stocks.  The Nasdaq-100 includes 100 of the largest domestic and international non-financial securities listed on the Nasdaq Stock Market based on market capitalization. The weightings of companies in the index are based on their market capitalizations, with rules capping the influence of the largest components. As of January 8, 2015, the three largest components of the index are Apple (comprising about 13.59% of the index), Microsoft (comprises about 8.33% of the index), and Intel (comprises 3.67% of the index).  Google would have been the third largest component if it had not been split into two different equities, Goog and Googl, a split which occurred on August 19, 2014.

The Nasdaq-100 was initiated on January 31, 1985 and, as I have previously discussed, has since become one of the most widely-followed technology indexes during the dot.com bubble. The chart below (click on the chart for a larger view) illustrates historical annual returns for the Nasdaq-100 index between the calendar years 1986 and 2014.  The Nasdaq-100 Index does not account for dividend payouts, but the Nasdaq-100 Total Return Index, which was initiated on March 4, 1999, does account for dividends.  The chart below calculated based on returns for (a) the Nasdaq-100 Index from January 1, 1986 - March 3, 1999; and (b) the Nasdaq-100 Total Return Index from March 4, 1999 - December 31, 2014.

As shown below, the Nasdaq-100 recorded a solid year in 2014, rising 19.40%, and has risen some about 272.5% during the calendar years between 2009 and 2013, an annualized return of about 24.5%!  

I still believe that the Nasdaq-100 is in the beginning stages of a multi-year secular bull market run as investors reconsider the potential of high tech companies.  The Nasdaq-100 returned a total of about 3403.97% between 1986 and 2014, an annualized return of about 13.05%.  This greatly outperforms the total return of  about 1804.75%, or about 10.70% of the the S&P 500 Index during the same period of time. 

* I have posted updated returns for the Nasdaq-100 through 2016 in another post.

Historical Returns for the Nasdaq-100 (1986-2013)

The Nasdaq-100 Index includes 100 of the largest domestic and international non-financial securities listed on the Nasdaq Stock Market based on market capitalization. It is a modified capitalization-weighted index. The weightings of companies in the index are based on their market capitalizations, with rules capping the influence of the largest components. As of August 29, 2014, the three largest components of the index are Apple (comprising about 13.55% of the index), Microsoft (comprises about 8.23% of the index), and Google (comprises about 4.23% of the index).

The Nasdaq-100 was initiated on January 31, 1985 and has since become one of the most widely-followed technology indexes during the dot.com bubble. The chart below (click on the chart for a larger view) illustrates historical annual returns for the Nasdaq-100 index between the calendar years 1986 and 2013.  The Nasdaq-100 Index does not account for dividend payouts, but the Nasdaq 100 Total Return Index, which was initiated on March 4, 1999, does account for dividends.  The chart below calculated based on returns for (a) the Nasdaq-100 Index from January 1, 1986 - March 3, 1999; and (b) the Nasdaq-100 Total Return Index from March 4, 1999 - December 31, 2013.

As shown below, the Nasdaq-100 soared 36.92% during 2013, its second-highest return of the past 10 calendar years.  The Nasdaq-100 rose about 212% during the calendar years between 2009 and 2013, an annualized return of an impressive 25.55%.  

I have previously stated that I believe that the Nasdaq-100 is in the beginning stages of a multi-year bull market run as investors reconsider the potential of high tech companies.  The Nasdaq-100 returned a total of about 2834.56% between 1986 and 2013, an annualized return of about 12.83%.  This greatly outperforms the total return of  about 1575.41%, or about 10.59% of the the S&P 500 Index during the same period of time. 

* I have posted updated returns for the Nasdaq-100 through 2016 in another post.

Historical Returns for the Nasdaq-100 (1986-2012)

The Nasdaq-100 Index includes 100 of the largest domestic and international non-financial securities listed on the Nasdaq Stock Market based on market capitalization. It is a modified capitalization-weighted index. The weightings of companies in the index are based on their market capitalizations, with rules capping the influence of the largest components. As of September 20, 2013, the three largest components of the index are Apple (comprises about 12.18% of the index), Microsoft (comprises about 7.72% of the index), and Google (comprises about 6.69% of the index).

The Nasdaq-100 was initiated on January 31, 1985 and quickly became one of the most widely-followed technology indexes during the dot.com bubble. The chart below (click on the chart for a larger view) illustrates historical annual returns for the Nasdaq-100 index between the calendar years 1986 and 2012.  The Nasdaq-100 Index does not account for dividend payouts, but the Nasdaq 100 Total Return Index, which was initiated on March 4, 1999, does account for dividends.  The chart below calculated based on returns for (a) the Nasdaq-100 Index from January 1, 1986 - March 3, 1999; and (b) the Nasdaq-100 Total Return Index from March 4, 1999 - December 31, 2012. 

As shown, the Nasdaq-100 soared during the 1990s, rising about 1850% between 1991 and 1999, an annualized gain of about 38.29%. Between 1986 and 1999, the Nasdaq-100 rose about 2704%, an annualized gain of about 26.89%. However, between 2000 and 2008 the Nasdaq-100 was one of the worst-performing U.S. stock indexes, dropping about 66.48%, an annualized loss of about 11.44%.

The Nasdaq-100 rocketed during the late-1990s as investors piled into technology stocks regardless of valuations. As of January 1999, the price/earnings (P/E) ratio of the Nasdaq-100 index was reportedly about 90.2 and topped well over 100 by the end of 1999 as the Nasdaq-100 rose over 102% during the year. After the dot-com bubble burst, the Nasdaq-100 plummeted about 83% between a peak on March 27, 2000 to a trough on October 7, 2002.

Many investors were burned when the dot.com bubble burst and have shunned technology stocks ever since. I personally fell into that camp myself until I reevaluated my position in 2009. Although the technology bear market that extended between March 2000 and October 2002 (or March 2009, the bottom of the financial crisis bear market) was painful, technology stocks now currently have lower valuations than non-technology stocks and are likely to outperform in the near future. For example, as of the market close on September 20, 2013, the Nasdaq-100 had a P/E ratio of about 21.19, which is probably close to 20% of what it was at the time of the Nasdaq-100 index's peak on March 27, 2000.

I have previously stated that I believe that the Nasdaq-100 is in the beginning stages of a multi-year bull market run as investors reconsider the potential of high tech companies.

* I have posted updated returns for the Nasdaq-100 through 2016 in another post.

Historical Returns for the Nasdaq-100 (1986-2011)

The Nasdaq-100 Index includes 100 of the largest domestic and international non-financial securities listed on the Nasdaq Stock Market based on market capitalization. It is a modified capitalization-weighted index. The weightings of companies in the index are based on their market capitalizations, with rules capping the influence of the largest components. As of August 24, 2012, the largest component of the index is Apple (symbol: AAPL), which comprises about 19.64% of the index.

The Nasdaq-100 was initiated on January 31, 1985. The Nasdaq-100 grew into one of the most widely-followed technology indexes during the dot.com bubble. The chart below (click on the chart for a larger view) illustrates historical annual returns for the Nasdaq-100 index between the calendar years 1986 and 2011.*

As shown, the Nasdaq-100 rocketed higher during the 1990s, rising about 1849% between 1991 and 1999, an annualized gain of about 38.28%. Between 1986 and 1999, the Nasdaq-100 rose about 2702%, an annualized gain of about 26.88%. However, between 2000 and 2008 the Nasdaq-100 was one of the worst-performing U.S. stock indexes, dropping about 68.32%, an annualized loss of about 11.69%.

The Nasdaq-100 rocketed during the late-1990s as investors piled into technology stocks regardless of valuations. As of January 1999, the price/earnings (P/E) ratio of the Nasdaq-100 index was reportedly about 90.2 and topped well over 100 by the end of 1999 as the Nasdaq-100 rose over 101% during the year. After the dot-com bubble burst, the Nasdaq-100 plummeted about from a peak closing value of about 4704.72 on March 27, 2000 to its bear market low close of 804.64 on October 7, 2002, a drop of about 82.897%.

Many investors were burned when the dot.com bubble burst and have shunned technology stocks ever since. I personally fell into that camp myself until I reevaluated my position in 2009. Although the technology bear market that extended between March 2000 and October 2002 (or March 2009, the bottom of the financial crisis bear market) was painful, technology stocks now currently have lower valuations than non-technology stocks and are likely to outperform in the near future. For example, as of the market close on August 24, 2012, the Nasdaq-100 had a P/E ratio of about 11.89, which is probably about 10% of what it was at the time of the Nasdaq-100 index's peak on March 27, 2000. The S&P 500 index, on the other hand, currently has a much higher P/E ratio of about 16.25.

It would not surprise me to see technology stocks go on a multi-year run as investors reconsider the potential of high tech companies. 

*This chart does not account for reinvested dividends as I have not been able to locate a reliable source for total dividend-adjusted returns for the Nasdaq-100.
**  I have posted updated returns for the Nasdaq-100 through 2016 in another post.