The Nasdaq-100®, Evolving for What’s Next

How modernization, expansion, and innovation are redefining outcomes in annuities

Founded in 1971 as the world’s first electronic exchange, Nasdaq has always been grounded in innovation. That commitment is reflected across the business, including Nasdaq Global Indexes and its flagship offering, the Nasdaq-100 (NDX^®).

Over its 40-year history, NDX has evolved into one of the world’s most robust index-based ecosystems, delivering large cap exposure through a transparent methodology that enables a wide range of investment strategies with liquidity options. This adaptability is increasingly critical as the role of indexes continues to expand beyond traditional benchmarks.

“We’re seeing a transition from passive benchmarking to purposeful strategy design,” says James Caparosa, Director of Insurance Sales at Nasdaq. “Indexes today are being used to deliver specific outcomes that reflect how clients actually experience risk and return.”

Behind that shift is a broader transformation of the Nasdaq-100 ecosystem, shaped by three forces: a modernized index methodology, rapid adoption across annuity products, and a growing set of strategies designed to deliver more precise outcomes.

A Modern Index for a Modern Market

NDX has always evolved alongside changing markets, products, and investor expectations — and that evolution continues today.

 Following a public consultation on proposed methodology enhancements, Nasdaq updated the Nasdaq-100 methodology to keep it aligned with modern public markets. Among the changes: a new framework that allows the index to capture eligible IPOs more quickly than before, ensuring that the Nasdaq-100 remains timely and representative of the market it measures, while preserving replicability for passive managers and investors.

“Exposure to the new economy is what has driven returns over time,” says Pranay Dureja, Head of Derivatives and QIS-Based Index Research at Nasdaq. “The question is whether you want exposure to the companies of the 20th century or the ones shaping the 21st century.”

That distinction is measurable. Companies in the Nasdaq-100 invest more than 1.3 times what their broader market counterparts spend on research and development — a signal of where long-term growth is being built.

Keeping that exposure relevant requires continuous refinement. The index evolves because the economy it represents evolves.

From Benchmark to Backbone in Insurance

The Nasdaq-100 is no longer just one choice among many inside annuities. It has become a central building block, particularly as registered index-linked annuities (RILAs) continue to gain traction and surpass annual sales records per LIMRA.

“Annuities are evolving from what used to be a niche solution to a core piece of the retirement toolbox,” Caparosa says. “Advisors are integrating them into broader portfolio strategies, and indexes are a critical part of that.”

That shift has changed how indexing functions within insurance products. 

“It went from indexes being created and widely available to fund issuers, banks and insurance carriers alike,” Dureja says. “Now we are engineering solutions specifically for the annuity wrapper.”

By adopting a collaborative strategy design specific to the industry, Nasdaq has delivered a smoother experience for policyholders while helping carriers better manage risk. The impact is felt across the entire value chain; in the past two years, NDX has seen over a 50% increase in placements as a crediting option within RILAs.

Nasdaq’s role is not limited to index construction. It extends into how products are conceived and brought to market. 

“What we’ve done with HiCap is introduce a different way to improve cap rates,” Dureja adds. “Instead of targeting a certain level of volatility, it reorganizes the risk profile of the Nasdaq-100 to deliver more variability to the upside.”

“We take a very consultative approach,” Caparosa says. “We are working with carriers to design solutions that align with what they are trying to deliver, whether that is consistency, improved crediting potential, or better overall outcomes.”

Expanding the Nasdaq-100 Ecosystem

The next phase of growth is being driven by what can be built on top of the Nasdaq-100. The focus is on expanding the index ecosystem to offer multiple expressions of NDX, each tailored to meet unique retirement needs. 

That evolution includes strategies designed to respond to changing market conditions in real time, such as the Nasdaq-100 Chronos 10%™ Index, which uses intraday volatility targeting to adjust exposure up to seven times throughout the day. As markets become more dynamic, that responsiveness becomes more important while expanding the definition of innovation itself.

“The new economy is no longer limited to equities,” Dureja says. “That’s why we’ve introduced strategies like the Bitcoin Trends Index, which blends Nasdaq-100 exposure with digital assets.”

These new solutions are grounded in a clear understanding of what clients want from annuities. Nasdaq consistently adapts to the three core priorities most often cited by clients and partners: higher crediting potential, greater consistency, and fewer zero-crediting years. 

That final priority reframes a long-standing industry mindset.

“Why aim for zero? It may be the floor, but clients want the opportunity to exceed it,” Caparosa says. “Clients want to know what they are getting. They want a more predictable experience over time.”

Defining the Next Phase of Annuities

What defines the next chapter of annuities will not be protection alone. The focus is shifting toward what drives outcomes above that foundation.

“The next phase of adoption will be driven by the quality of the underlying investment strategies,” Caparosa says.

That shift is bringing two worlds closer together.

“You’re seeing the convergence of capital markets and insurance,” he says. “That is what will shape the future of retirement solutions.”

The Nasdaq-100 sits at the center of that convergence, evolving to capture what comes next and reaffirming its role as the benchmark of the 21st century.

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