Should my international portfolio be S&P 500 or Nasdaq 100?

Published 19 September 2026

Ridhi from Kolkata

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?

Sachin Kabra Co-founder Foliyo (SEBI RIA No: INA000023454), ex-Director HDFC Private Wealth, Business Head Motilal Oswal AMC LinkedIn

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.

Ask Sachin

Get your question answered by our partner advisors.

Related guides

More from Sachin Kabra

Ratheeh from Mumabi

As an Indian investor, do I really need international exposure if I’m already bullish on India?

If I believe India will continue to grow strongly over the next 10–20 years, is there still a reason to invest globally, or am I just diluting a good India portfolio?

Chirag from Hyderabad

Which type of SIF should I choose: hybrid, equity long-short or Ex-Top 100?

Different SIF categories seem to have completely different risk and return profiles. How should I think about which category fits my portfolio?

Chandra from Bangalore

What should I actually check before choosing an SIF?

There are now multiple SIF categories and strategies. Instead of looking at recent performance, what questions should I ask before selecting one?

Abhijit from Chennai

I have ₹10 lakh available. Does that mean I should consider investing in an SIF?

The regulatory minimum for SIFs is ₹10 lakh. If I have that amount available, what should I check before deciding whether an SIF is suitable for me?

Rakesh from Gurugram

Does a long-short SIF protect me if the market crashes?

Since long-short SIFs can short stocks, does that mean they have built-in downside protection and cannot lose as much as a normal equity fund?