The Nasdaq-100 is a US stock market index that tracks 100 of the largest non-financial companies listed on the Nasdaq exchange. UK investors can invest in the Nasdaq-100 by buying an ETF that tracks the index.
This guide explains what the Nasdaq-100 is, why investors use it, how Nasdaq ETFs work and the main risks to consider.
Capital at risk. The value of your investments can go down as well as up, and you may get back less than you invest. This article is for general information only and is not personal advice.
How to invest in the Nasdaq from the UK: quick answer
You cannot invest directly in the Nasdaq-100 index. You can invest in an ETF that aims to track it.
| Step | What to do |
|---|---|
| 1 | Choose a Nasdaq-100 ETF |
| 2 | Choose an account, such as an ISA, SIPP, GIA or Business Account |
| 3 | Decide whether to invest a lump sum or regularly |
| 4 | Check currency, volatility and sector concentration risk |
| 5 | Make sure it fits your wider portfolio |
What is the Nasdaq-100?
The Nasdaq-100 tracks 100 of the largest non-financial companies listed on the Nasdaq exchange.
It includes many large companies in:
- Technology
- Communication services
- Consumer discretionary
- Healthcare
- Innovation-led sectors such as AI, cloud computing and e-commerce
The Nasdaq-100 is often associated with technology and growth companies, which can bring higher growth potential but also higher volatility.
Nasdaq ETFs available on InvestEngine
Examples of Nasdaq-100 ETFs include:
| ETF | Ticker | Exposure |
|---|---|---|
| Invesco Nasdaq-100 | EQQQ | Nasdaq-100 |
| iShares Nasdaq-100 | CNX1 | Nasdaq-100 |
| Xtrackers Nasdaq-100 | XNAQ | Nasdaq-100 |
ETF costs and details can change, so check the latest fund information before investing.
ETFs featured above may include paid partners.
Why UK investors choose Nasdaq ETFs
Nasdaq ETFs can offer:
- Exposure to large US technology and growth companies
- A passive way to invest in the Nasdaq-100
- Access to innovation-led sectors
- A simple ETF structure
- ISA, SIPP, GIA and Business Account eligibility where the ETF qualifies
Past performance is not a reliable indicator of future returns.
How to buy Nasdaq ETFs with InvestEngine
InvestEngine is a UK-based ETF investing platform, authorised and regulated by the Financial Conduct Authority, built for long-term investors who want to create DIY ETF portfolios.
With InvestEngine, you can buy and sell Nasdaq ETFs with 0% dealing fees and 0% platform fee on DIY portfolios. ETF costs apply.
How it works
- Create an InvestEngine account
- Choose your account type
- Search for the Nasdaq ETF you want
- Choose how much to invest
- Set up a one-off investment or regular Savings Plan
Risks of investing in the Nasdaq
- Volatility: growth-focused indices can move sharply.
- Sector concentration: the Nasdaq-100 is heavily exposed to technology and communication services.
- Currency risk: underlying companies are mainly priced in US dollars.
- Company concentration: large companies can have a major influence on performance.
- Valuation risk: growth stocks can be sensitive to interest rates and market sentiment.
FAQs
Can UK investors buy the Nasdaq?
UK investors cannot buy the index directly, but they can buy ETFs that track the Nasdaq-100.
Can you hold a Nasdaq ETF in an ISA?
Yes. Eligible Nasdaq ETFs can be held in a Stocks and Shares ISA.
Does InvestEngine charge dealing fees for Nasdaq ETFs?
InvestEngine charges 0% dealing fees for buying and selling ETFs. DIY portfolios also have 0% platform fees. ETF costs apply.
Is the Nasdaq-100 high risk?
The Nasdaq-100 can be more volatile than broader indices because it is concentrated in growth and technology-linked companies.
In summary
Nasdaq ETFs give UK investors a way to access large US growth and technology companies through one fund. They can be useful for long-term investors, but they are concentrated and can be volatile.
Capital at risk. ETF costs apply. Tax treatment depends on your personal circumstances and may change in future. This communication is for general information only and does not constitute personal advice.