Should my international portfolio be S&P 500 or Nasdaq 100?
Published 19 September 2026
I want to start investing in the US, but I’m confused between the S&P 500 and Nasdaq 100. Are they interchangeable, or do they play very different roles?
They are very different exposures.
The S&P 500 has 500 companies, covers major sectors and represents a large part of the US equity market.
For many investors, it can work more like a core US allocation.
The Nasdaq 100 has 100 large non-financial companies listed on Nasdaq and is much more tech- and growth-heavy.
It includes companies like Microsoft, Nvidia, Apple, Broadcom, Amazon and Tesla.
That can be powerful, but it can also be very concentrated.
Nasdaq should not automatically be treated as your entire international diversification. It is better thought of as a growth-oriented satellite exposure.
“Please don’t call Nasdaq global diversification.”
“For the S&P 500, think more like a core US exposure. For Nasdaq, think of it like a satellite growth exposure.”
This is not personalized investment advice. Your goals, tax situation, portfolio size and risk tolerance may be different, so assess your own situation and discuss it with your financial and tax advisor.
The S&P 500 has 500 companies, covers major sectors and represents a large part of the US equity market.
For many investors, it can work more like a core US allocation.
The Nasdaq 100 has 100 large non-financial companies listed on Nasdaq and is much more tech- and growth-heavy.
It includes companies like Microsoft, Nvidia, Apple, Broadcom, Amazon and Tesla.
That can be powerful, but it can also be very concentrated.
Nasdaq should not automatically be treated as your entire international diversification. It is better thought of as a growth-oriented satellite exposure.
“Please don’t call Nasdaq global diversification.”
“For the S&P 500, think more like a core US exposure. For Nasdaq, think of it like a satellite growth exposure.”
This is not personalized investment advice. Your goals, tax situation, portfolio size and risk tolerance may be different, so assess your own situation and discuss it with your financial and tax advisor.