What Is the Nasdaq Composite Index?

By Matthew Frankel, CFP – Updated Sep 29, 2025 at 3:57 PM | Fact-checked by Parker Hicks

Key Points

Nasdaq Composite includes only Nasdaq-listed common stocks, excluding ETFs and preferred stocks.
It is market-cap weighted, meaning larger companies have more influence on index performance.
Investing via Nasdaq index funds offers broad tech sector exposure with streamlined management.

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An infographic showing why stocks are included — or not included — in the Nasdaq composite index. — Image source: The Motley Fool.

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Exchange-Traded Fund (ETF)

An exchange-traded fund, or ETF, allows investors to buy many stocks or bonds at once.

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Financial Securities

A tradeable asset that holds monetary value.

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About the Author

Matt Frankel, CFP, is a contributing Motley Fool stock market analyst and personal finance expert covering financial stocks, REITs, SPACs, and personal finance. Prior to The Motley Fool, Matt taught high school and college mathematics. He holds a bachelor’s degree in physics from the University of South Carolina, a master’s degree in mathematics from Nova Southeastern University, and a graduate certificate in financial planning from Florida State University. He won a SABEW award for coverage of the 2017 Tax Cuts and Jobs Act. He is also regularly interviewed by Cheddar, The National Desk, and other TV networks and publications for his financial, stock market, and investing expertise.

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Matt Frankel has positions in Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Netflix, Nvidia, and Tesla. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.