NASDAQ ETF

By: EconomyWatch   Date: 4 August 2009

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EconomyWatch

The core Content Team our economy, industry, investing and personal finance reference articles.

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NASDAQ is the largest US electronic stock market. Comprising about 3,200 domestic and international companies listed on its exchange, NASDAQ is home to leading companies spanning all business sectors such as:

  • Technology

  • Retail

  • Communications

  • Financial services

  • Transportation

  • Media

  • Biotechnology

History of NASDAQ

Founded in February, 1971, NASDAQ started out as a mere computer bulletin board system, which did connect buyers and sellers. It was referred to as the over-the-counter (OTC) by the media.

Over the years, NASDAQ revolutionized the world’s floor based markets by introducing the electronic stock market. Such a concept was unthinkable as it revolutionized the way trading happens in the stock market.  

The NASDAQ Global Platform accomplished the following:

  • Greater efficiency and speed in the execution of trade in the stock market.

  • Emerged as a beacon of change in the stock market.

  • Contributed to making the trading platform quicker and efficient by investing in it constantly.

  • Enabled global companies to access the US capital formation.

  • Helped to foster world economic growth

  • Expanded business transactions across and beyond geographical borders and cultures.

Since its inception, NASDAQ has been publishing the NASDAQ Composite index. Its purpose is to track the common stocks and similar securities listed on the stock market. Later in 1985, NASDAQ introduced the large-cap NASDAQ 100 and the NASDAQ 100 Financial Index.

In 1992, NASDAQ joined hands with the London Stock Exchange (LSE) to form the world’s first intercontinental linkage of securities markets. It also acquired the INET ECN and integrated the system with the NASDAQ and Brut systems. Following its merger with the American Stock Exchange in I998, NASDAQ became America’s largest electronic market.

NASDAQETF

The following are the NASDAQ ETFs available in the market:

  • PowerShares QQQ - Tracks the top 100 of the high-growth technology and non-financial services companies listed on the NASDAQ.

  • First Trust NASDAQ-100 Equal Weighted Index- Offers investment returns that closely correspond to the performance of the NASDAQ-100 Equal Weighted Index in terms of price and yield.

  • Fidelity Nasdaq Composite Index Tracking Stock: Provides investment returns that closely matches the price and yield performance of the Nasdaq Composite Index.

  • iShares NASDAQ Biotechnology Index Fund: Tracks the NASDAQ Biotechnology Index during the trading day.

The average daily trading volumes at the NASDAQ are higher than that on any other US market.


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