Don’t Just Follow the Markets—Follow the Innovators

The Nasdaq-100^® Is the Blueprint for Tomorrow

If you want to understand where the global economy is headed, follow the innovation. And if you want to follow the innovation, follow the Nasdaq-100^®.

For decades, advisors, investors, and insurance carriers have turned to the Nasdaq-100 to access the companies creating the technologies that define modern life, including AI, cloud computing, biotech breakthroughs, fintech disruption, e-commerce transformation, and more. But the true power of the index is not simply its performance or its roster of category-defining companies. It is the broader ecosystem Nasdaq has built around it, an ecosystem that is fueling product development, reshaping retirement strategies, and expanding the tools available to advisors.

As Mark Marex, Senior Director and Head of Index Research for the Americas at Nasdaq, puts it, “The benchmark of the 21st century isn’t just a tagline. It’s something we firmly believe because of the measurable success of the index, its performance, its innovation leadership, and its unique design.”

Today, the Nasdaq-100’s influence is moving well beyond traditional ETFs. It is now serving as the foundation for fixed indexed annuities, registered index-linked annuities (RILAs), structured notes, direct indexing solutions, and increasingly, as the bedrock of next-generation volatility-controlled indexes built for insurance. For advisors, the message is unmistakable: the future of retirement security and long-term growth is being constructed on the foundation of the Nasdaq-100.

Innovation at the Core

The Nasdaq-100 is unlike any index in the world. It is a globally recognized index of 100 of the most innovative large cap companies listed on the Nasdaq Stock Market^®. The companies consistently outspend and out-innovate the broader market. Their research and development expenditures are breathtaking: 10 times higher than their peers, both in total dollars and as a percentage of revenue. In categories such as AI, machine learning, and cloud computing, these companies account for 20% to 50% of global patent contributions among public companies.

That level of innovation is not an accident. It is the DNA of the Nasdaq-100. This is why the index has earned its reputation as the lens through which the modern economy can be understood. As Marex notes, “Most benchmarks pull from multiple exchanges. The Nasdaq-100 is different. It's an innovation-driven ecosystem of companies shaping the new economy.”

At the same time, the index offers a natural balance. With a historical average of roughly 80% exposure to technology, consumer discretionary, and biotech-heavy healthcare, it tilts toward innovation while maintaining diversification across sectors and business models. It is not explicitly built as a growth index but has consistently delivered growth characteristics with a stabilizing blend of industry exposures. This is why more advisors today view the Nasdaq-100 as a core component of forward-looking portfolios.

A Growing Ecosystem Beyond ETFs

The Invesco QQQ ETF, considered one of the largest ETFs by assets with nearly $400 billion in AUM, made the Nasdaq-100 a household name. But in recent years, the index’s reach and relevance have expanded dramatically.

With a live track record of over 40 years since its launch in 1985, the Nasdaq-100 product ecosystem has evolved to support a suite of passive and active investment products. As will be highlighted in an upcoming whitepaper on the Nasdaq-100 Product Ecosystem, market participants have created highly liquid derivatives markets while staying invested in long term investment vehicles. As of the end of 2024, the ecosystem had accumulated over $1 trillion of exposure to NDX^® through ETFs, Mutual Funds, Insurance Products, Structured Notes, and Exchange-Traded Derivatives.

“Carriers are now harnessing the innovation in the Nasdaq-100 to help clients achieve long-term retirement and life objectives,” says Pranay Dureja, Head of Derivatives & QIS-Based Index Research at Nasdaq. “The index’s risk-adjusted performance has been unparalleled, and advisors have taken notice.”

Today, index-linked insurance and financial products increasingly incorporate Nasdaq-100-based strategies. FIAs, RILAs, IULs, structured notes, and other risk-managed solutions use the index as an anchor or engine for product design. Advisors now have access to outcome-oriented strategies aimed at income generation, downside-protection, upside leverage, and tax-efficiency through a suite of traditional and volatility-controlled indexes designed to support risk-managed accumulation.

Demand continues to grow, reflecting a broader trend in the financial industry: innovation seeks innovation. The companies shaping the future are powering financial tools that help clients prepare for it.

Collaboration That Elevates the Industry

When insurance carriers or manufacturers partner with Nasdaq, they gain more than an index. They gain direct access to a research-backed, institutionally supported collaboration model.

“That’s something uniquely Nasdaq,” says Dureja. “We operate both a leading global exchange and the index suite that tracks its most innovative companies. We leverage that expertise to empower partners across the entire product life cycle, from differentiated index construction to high touch index research and marketing.”

Partners engage with Nasdaq through a range of channels, from direct collaboration to joint R&D workflows with banks. The process often includes concept development, rules-based engineering, field and marketing support, and ongoing client-education resources. The result is more efficient, more informed, and more innovative product launches.

Engineering the Next Generation of Indexes

Nasdaq is also redefining what a modern index can be. Through advanced volatility-management tools, multi-asset optimization, and rule-based engines, the firm is building solutions tailored to the evolving needs of insurers and advisors.

Consider the Nasdaq-100 Max 30™ Index, one of the earliest high-volatility-target strategies built specifically for RILAs. While many volatility-target indexes were engineered for FIAs, Max 30 was designed to deliver enhanced growth outcomes and has historically delivered leveraged outperformance relative to the Nasdaq-100.

Another cutting-edge solution, the Nasdaq MarketFlex™ Index, blends the innovation premium of the Nasdaq-100 with a risk profile mirroring the broader US large cap equity markets. “This allows you to capture innovation with a more familiar risk experience,” explains Dureja. “It’s a new generation of dynamic risk-controlled solutions.”

These tools give carriers and advisors the ability to offer customized client outcomes, stronger risk-management features, and refined exposure to the engines of economic growth.

The Blueprint for Tomorrow

From the early hardware revolution of the 1990s, to the internet boom of the 2000s, to the cloud transformation of the 2010s, and now to AI dominance, the world’s most important technologies have consistently chosen Nasdaq as their financial home.

“The index has always, and will always, provide exposure to the blueprint of tomorrow,” says Dureja. “And now, the blueprint of tomorrow is accessible for every single individual.”

For advisors, this is not simply a compelling narrative. It is a practical advantage. The Nasdaq-100 provides access to the companies shaping the future, and the ecosystem surrounding it provides the tools to build portfolios that reflect that future.

As Marex summarizes, “There is no direct peer to the Nasdaq-100. Its performance, its innovation leadership, and its unique construction make it a one-of-one benchmark. It is the benchmark of the 21st century.”

For advisors seeking to guide the next generation of investors, it’s becoming an essential building block of next-generation client portfolios.

Nasdaq^®, Nasdaq-100^®, Nasdaq-100 Index^®, NDX^®, Nasdaq-100 Max 30™, Nasdaq MarketFlex™ are trademarks of Nasdaq, Inc. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. Neither Nasdaq, Inc. nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding Nasdaq-listed companies or Nasdaq proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing.