After the outbreak of Coronavirus pandemic final year, the stock market place across the planet crashed. Equally speedy was the rebound and worldwide markets not only regained the lost ground but the major US indices ended at close to all-time higher levels by the time 2020 ended. The worldwide stock rally was led by US Stocks with the technologies stocks at the forefront. And, the US stock market place indices that mostly represents the technologies stocks are Nasdaq one hundred and Nasdaq Composite index. The fantastic news is Indian investor can invest in Nasdaq stocks from India. You can open an international brokerage account in India immediately after fulfilling the KYC formalities and begin trading in Nasdaq stocks from India.
Nasdaq Stock Market
The most preferred and investor favourites Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Google (GOOGL) collectively referred to as FAANG stocks are listed on the Nasdaq stock market place. You may possibly obtain them on either Nasdaq one hundred or Nasdaq Composite index.
The Nasdaq Composite Index comprises of all Nasdaq domestic and international stocks listed on the Nasdaq Stock Market even though the Nasdaq one hundred index is a substantial-cap development index and incorporates one hundred of the leading domestic and international non-economic organizations primarily based on market place capitalization. One large distinction among Nasdaq one hundred and Nasdaq Composite index is that in the former there is no exposure to economic stocks.
Nasdaq – Sector allocation
The Nasdaq one hundred consists of organizations across big market groups, Industrials, Consumer Goods, Health Care, Consumer Services, Telecommunications, Utilities and Technology Noticeably, what it does not consist of are the stocks of banks and economic organizations, which includes investment organizations. The maximum allocation of almost 55.22 per cent is in the Technology sector even though Consumer Services has a weightage of almost 24.34 per cent.
On the other hand, Nasdaq Composite Index comprises of stocks from big industries such as Oil & Gas, Basic Materials, Industrials, Consumer Goods, Health Care, Consumer Services, Telecommunications, Utilities, Financials and Technology. The maximum allocation of almost 48.16 per cent is in the Technology sector even though Consumer Services has a weightage of almost 19.49 per cent.
Top stocks in indexes
The weightage of various tech stocks in Nasdaq one hundred and Nasdaq Composite index varies and some of the leading US stocks may possibly not be even in the leading ranking. The variation in the allocation is more relevant even though investing in ETF’s or index funds tracking these two indices.
Some of the leading US stock by weightage in the Nasdaq one hundred are Microsoft, Apple, Amazon, Alphabet (Google), Facebook, Intel, Cisco Systems, Comcast and Pepsico. Some of the leading US stock by weightage in the Nasdaq one hundred are Microsoft, Apple, Amazon, Alphabet (Google), Facebook, Tesla, Nvidia, Adobe and Paypal.
Nasdaq – Performance
The stock market place globally had been on a roller coaster ride in 2020 immediately after the large crash of almost 30 per cent in March final year and then the large rebound in stock rates.
The Nasdaq one hundred index was ( as on January 24) at about 13,366.40 level and is up by almost 3.71 per cent YTD and about 45.39 per cent more than the final 12 months respectively.
As on January 24, the Nasdaq Composite index was trading at about 13,543.06 level and is up by almost 5 per cent YTD and about 46.22 per cent more than the final 12 months respectively.
Investing in Nasdaq Stocks
Owning Nasdaq stocks such as Facebook, Tesla or Apple or other individuals is attainable from India. If the value in dollars is holding you back from getting any of them Fractional Investing by means of international brokerage platforms primarily based in India tends to make it easier for you. Sample this, Amazon stock trades at about 3320 dollars which tends to make it more than Rs 2 lakh to personal a single share of the firm. But, by opening a foreign trading account, you can even personal a pie by investing as low as Rs 1000 by means of fractional investing. As an Indian investor, it is much better to diversify globally and add some of the ideal performing US stocks to your portfolio in 2021.
(All figures pointed out as on December 31, 2020 unless specified)