NDXTMC™ Index: Accessing the Pure Tech Sector Exposure of the Nasdaq-100®

The Nasdaq-100 Technology Sector Market-Cap Weighted™ Index (NDXTMC) offers investors the option of tracking only those constituents that are considered pure Technology companies (per the Industry Classification Benchmark (ICB), the sector classification system of FTSE Russell) and, as a result, provides a concentrated approach to investing in the innovation-driven growth of the Nasdaq-100.

In the first half of 2023, NDXTMC meaningfully outperformed the Nasdaq-100, up 57.5% vs. 38.8% on a price-return basis. It also meaningfully outperformed the S&P 500 Information Technology Sector Index (S5INFT), which was up 42.1%. In contrast, the S&P 500 (SPX) was up only 15.9%.

On a trailing five-year basis, NDXTMC has also outperformed the Nasdaq-100, up 147.4% on a total-return basis vs. 125.5% for XNDX.

In the first half of 2023, the average weight of the Technology sector (per ICB) in the Nasdaq-100 was 58.6%, while contributing 76.2% of the index's performance.

With the rise of artificial intelligence (AI) as a major new secular growth driver, the Nasdaq-100 companies that make it into NDXTMC are unsurprisingly major beneficiaries. The leaders in the theme (NVIDIA, Broadcom, AMD, etc.) are all represented in NDXTMC and well-positioned to benefit from multiple new growth opportunities. As of June 30, 2023, Alphabet and Meta Platforms represented 19.43% of NDXTMC index weight, and 11.57% of NDX index weight.

AI / Big Data is the single biggest thematic exposure for both indexes, with the Nasdaq-100 registering a substantial 68.3% exposure. NDXTMC's AI exposure is even more concentrated with 82% of index weight tied to companies that are tracked by one or more of Nasdaq's AI-thematic indexes.

The Nasdaq-100 Technology Sector Market-Cap Weighted Index (NDXTMC) offers investors a concentrated approach to tracking many of the most recognizable leaders in innovation-driven growth, by selecting only those companies classified within the Technology industry as per ICB. As of June 30, 2023, the index tracked 38 such companies, including leaders in the biggest new secular growth theme of AI such as NVIDIA, Microsoft, Alphabet, Meta Platforms, Apple, Adobe, AMD, and Broadcom.