Nasdaq Composite Index Guide for Singapore Investors

By
Syfe Singapore
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If you’ve been researching how to invest in US markets from Singapore, you’ve probably come across the Nasdaq Composite Index alongside the S&P 500 and Nasdaq-100. For many investors here, “Nasdaq” is shorthand for “US tech stocks” — but the Nasdaq Composite is actually a broad, market-cap-weighted index that tracks more than 3,000 companies listed on the Nasdaq Stock Market, across technology, consumer, healthcare, financials and more.

In this guide, we’ll explain what the Nasdaq Composite index tracks and how it’s constructed, how it compares with the Nasdaq-100 and S&P 500, and practical ways a Singaporean investor can get Nasdaq Composite exposure. We’ll also look at key risks, how the index can fit into a diversified portfolio, and what to consider before adding a Nasdaq Composite ETF to your investments. By the end, you should have a clear view of how the Nasdaq Composite index can support your long-term investing plan.

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Table of Content

What Is the Nasdaq Composite Index?

Basic definition and scope

The Nasdaq Composite Index is a market-capitalisation-weighted index that includes almost all common stocks and similar securities listed on the Nasdaq Stock Market, covering both US and international companies.

Key points about the Nasdaq Composite index explained:

  • Coverage: Tracks more than 3,000 common equities listed on Nasdaq, from mega-cap tech to small-cap growth names.
  • Weighting: Each company’s weight is based on its market cap (share price × free-float shares), so larger firms have more impact on index performance.
  • Universe: Includes US and non-US companies, ADRs (American Depositary Receipts), REITs and tracking stocks that meet eligibility criteria. It excludes derivatives, preferred shares, funds, ETFs and debentures.

In other words, the Nasdaq Composite index is a broad barometer of the entire Nasdaq exchange, but one that’s still heavily influenced by its biggest, mostly tech-oriented companies.

Why it matters

Because Nasdaq is home to many of the world’s leading technology and growth companies, the Nasdaq Composite has become a key gauge of:

  • Global tech sentiment.
  • Investor appetite for high-growth, higher-valuation stocks.
  • The health of innovation-driven sectors such as cloud, semiconductors, e-commerce and AI.

For a Singaporean, the Nasdaq Composite index is often the “growth engine” slice of a diversified portfolio — a complement to more stable exposures like the STI, broad US indices (e.g. S&P 500) or global equity funds.

How the Nasdaq Composite Index Is Built

Eligibility and types of securities

The official Nasdaq Composite methodology sets security-level eligibility rules for:

  • Listing venue (must be on Nasdaq).
  • Security type (common stock / ordinary shares, certain REITs, some limited partnership units, ADRs, tracking stocks).
  • Minimum listing and reporting standards.

All securities that qualify are included in the index — there is no human selection committee deciding on sectors or themes.

This broad construction is why “Nasdaq Composite compare” searches often highlight its breadth versus more concentrated indices like the Nasdaq-100.

Market-cap weighting and daily rebalancing

The Nasdaq Composite index uses market-cap weighting:

  • Weight = price × total (or index) shares.
  • Larger companies like Apple or Microsoft have outsized influence; smaller firms contribute much less to daily moves.

Unlike indices that rebalance only quarterly, the Composite processes reconstitution and rebalancing on a daily basis. This allows the Nasdaq Composite to stay closely aligned with the evolving Nasdaq universe as companies list, delist or change size.

Sector breakdown and tech tilt

Although the index includes all 11 major industry groups, it is dominated by technology-linked companies:

  • Technology is the largest industry group, recently around 57% of index weight, followed by consumer discretionary and healthcare.
  • The top 10 constituents made up over 50% of total index weight, including Apple, Microsoft, Amazon, Nvidia and Alphabet.

This means that even though you’re indirectly holding thousands of stocks, your Nasdaq Composite index performance will still be driven heavily by mega-cap tech names — important to keep in mind when building a diversified portfolio.

Nasdaq Composite vs Nasdaq-100

A common starting point for investors evaluating US growth exposure is the comparison between these two indices. If you want a deeper breakdown of the Nasdaq-100 and how it works, check out our full Nasdaq-100 guide.

Number of constituents and concentration

Nasdaq Composite:

  • Tracks 3,000+ stocks listed on the Nasdaq exchange.
  • Includes large, mid and small caps.
  • Covers multiple sectors, though still heavily tilted to tech and growth names.

Nasdaq-100:

  • Tracks the 100 largest non-financial companies listed on Nasdaq.
  • Still market-cap weighted, so the biggest names (Apple, Microsoft, Nvidia, Alphabet, Amazon, etc.) dominate.
  • Excludes smaller and many mid-cap companies, and deliberately excludes financials.

In practice:

  • The Nasdaq-100 is more concentrated in mega-cap tech than the Composite.
  • The Nasdaq Composite is broader, but performance is still heavily driven by the same large growth leaders because of market-cap weighting.

Performance and risk implications

Historical comparisons show that Nasdaq-100-linked products have generally outperformed Nasdaq Composite trackers over long stretches since the Global Financial Crisis, mainly because they are more focused on the largest winners.

What this means:

  • If mega-cap growth companies continue to dominate, Nasdaq-100 exposure may deliver higher returns.
  • The Nasdaq Composite, however, includes smaller and mid-cap growth names that may become tomorrow’s leaders, but also adds extra volatility and stock-specific risk.

When might a Singapore investor pick each?

For a Singapore-based investor:

  • Choose the Nasdaq Composite index if you want broad Nasdaq exposure, including mid- and small-cap growth, and you’re comfortable with higher volatility.
  • Choose the Nasdaq-100 if you mainly want “blue-chip tech” exposure via the 100 largest non-financial Nasdaq companies, and you prefer popular ETFs like QQQ or QQQM that are widely traded.

Either index generally works best as a growth satellite on top of a more diversified core (e.g. S&P 500 or global equity), rather than as your entire portfolio.

Nasdaq Composite vs S&P 500

Investors also commonly look these 2 indices up when trying to determine which index works better as the foundation of their US equity allocation.

Coverage and sector mix

Nasdaq Composite:

  • Includes almost all Nasdaq-listed stocks (3,000+ names).
  • Strong tilt to technology, communication services and consumer discretionary.
  • Behaviour is similar to a growth / tech-heavy index.

S&P 500:

  • Includes 500 of the largest US companies across all major exchanges (NYSE and Nasdaq).
  • More balanced sector representation: financials, healthcare, industrials, consumer staples and energy all have meaningful weights.
  • Still has significant exposure to big tech, but with less extreme concentration compared with Nasdaq-focused indices.

In practice:

  • The Nasdaq Composite tends to be more volatile, with bigger drawdowns and stronger rallies, because of its growth and tech tilt.
  • The S&P 500 behaves more like a broad, core US equity index, and is commonly used as the main benchmark for US stocks.

Portfolio role for a Singapore investor

For someone investing from Singapore:

  • Use the S&P 500 (or a global equity index) as a potential core US equity holding, because it is broader and more diversified by sector.
  • Use the Nasdaq Composite as an add-on growth tilt if you want extra exposure to US tech and innovation.

A simple way to think about it:

  • If you want one main US index that roughly represents the US economy, the S&P 500 is usually the default choice.
  • If you already hold S&P 500 or global equity exposure and want to dial up growth, you can add a Nasdaq Composite ETF as a smaller, satellite position.

This approach lets you benefit from the upside of US tech and growth, while still anchoring your portfolio in a more stable, diversified core.

Why the Nasdaq Composite Matters for Singapore Investors

Growth exposure beyond local and regional markets

Singapore’s local market (e.g. the STI) is heavy on banks, REITs and cyclical sectors, with relatively little direct exposure to global tech leaders. The Nasdaq Composite index gives you:

  • Access to US and global innovators spanning semiconductors, cloud, AI, e-commerce, digital advertising and biotech.
  • Exposure to secular growth themes that may not be represented in Singapore or regional indices.

For a Singaporean who already owns STI ETFs, Asian funds or global broad-market ETFs, adding Nasdaq Composite exposure can tilt the portfolio towards higher growth and higher risk.

Portfolio role for Singaporeans

The Nasdaq Composite index may be suitable if you:

  • Already have a diversified core (e.g. global or S&P 500 ETFs).
  • Can tolerate short-term drawdowns of 30% or more.
  • Want a growth-oriented, tech-tilted slice for the long term.

If most of your investments are already in aggressive US growth strategies or single tech stocks, adding more Nasdaq Composite exposure could increase concentration risk, so you may need to balance it with other assets like bonds, value stocks or defensive sectors.

Ways to Get Nasdaq Composite Exposure from Singapore

US-listed Nasdaq Composite ETFs

The most direct way is a Nasdaq Composite ETF listed in the US, such as Fidelity Nasdaq Composite Index ETF (ONEQ):

  • ONEQ aims to replicate the Nasdaq Composite index, normally investing at least 80% of assets in securities included in the index.
  • As a US-domiciled ETF, it trades in USD on US exchanges and is subject to 30% US withholding tax on dividends for Singapore-based (non-US) investors.

The trade-off:

  • Pros: Direct tracking of the index, high transparency, relatively low expense ratio compared to many active funds.
  • Cons: US dividend withholding tax and potential US estate tax considerations for large holdings, FX exposure, and the need to use a broker that offers US markets.

Practical steps for Singapore investors

Step 1 — Open and fund a global brokerage account
Choose a broker that gives you access to U.S. markets. Deposit SGD, then convert to USD inside the app if required. With Syfe Brokerage, it’s even simpler: Syfe’s auto-FX functionality converts your SGD to USD at order time to complete the trade — no extra manual conversion step required. 

Step 2 — Place your order smartly
Select the ETF that gives Nasdaq Composite exposure (e.g. ONEQ). Use a limit order during U.S. market hours so you control the price you pay. If the share price is high, see if your broker offers fractional shares to invest smaller amounts.

Step 3 — Automate your plan
Set up a recurring buy (weekly or monthly) to dollar-cost average. This keeps you consistent and removes the stress of timing the market.

Step 4 — Maintain and rebalance
Review once or twice a year or when allocations drift beyond a band (e.g., ±5%). Rebalancing helps manage risk after big market moves.

Invest in ONEQ with Syfe Brokerage

Syfe’s Brokerage makes it easy to invest in Nasdaq Composite ETFs like ONEQ. 

  • Open a Syfe brokerage account, complete your KYC and transfer funds in.
  • Search for your preferred ETF using their ticker symbols.
  • Enter the amount you want to invest in. 
  • Double-check your order details and click “Buy” to place your trade.

What’s more, enjoy unlimited free U.S. trades for your first 3 months, plus at least 2 free U.S. trades monthly thereafter — no platform fees and no hidden charges. Syfe’s fractional trading also lets you start small and build up over time, making small cap ETFs more accessible than ever.

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Key Risks to Understand

Tech and mega-cap concentration risk

Although the Nasdaq Composite index includes thousands of companies, its effective risk exposure is highly concentrated:

  • Technology and related sectors make up more than half of the index.
  • The top 10 companies — including Apple, Microsoft, Amazon, Nvidia and Alphabet — collectively account for over 50% of index weight.

If a handful of mega-cap stocks experience a sustained downturn, the Nasdaq Composite index can underperform even when smaller components are doing well.

Valuation and interest-rate sensitivity

High-growth, tech-heavy indices like the Nasdaq Composite tend to be more sensitive to:

  • Interest-rate changes: Rising rates typically hurt “long-duration” growth stocks more, as future cash flows are discounted at higher rates.
  • Valuation resets: After strong runs (such as the AI-driven rally that helped push the Nasdaq Composite above 20,000 in 2024), markets can re-rate if earnings growth fails to keep up with expectations.

This means larger drawdowns are possible when macro conditions reverse, as seen during 2022’s rate-hike period.

Liquidity, tracking error and product-level risks

When you invest via an ETF or fund:

  • You take on fund-level risk — tracking error versus the index, bid-ask spreads, expense ratios and, in some cases, securities lending or derivatives usage.
  • Thinly traded ETFs may have wider spreads, especially during volatile periods.
  • Leveraged or inverse Nasdaq products (e.g. 2× or 3× daily leveraged ETFs) introduce complex compounding risks and are generally unsuitable for long-term investors.

How to Evaluate if the Nasdaq Composite Fits Your Plan

Risk profile and time horizon

Ask yourself:

  • Can you tolerate seeing your Nasdaq Composite ETF fall 30–50% during a severe downturn without panic-selling?
  • Is your investment horizon at least 7–10 years?
  • Are you adding Nasdaq Composite exposure on top of, not instead of, a diversified core?

If your answer is “yes” to these, the index can be considered as a growth satellite holding.

Example allocations (illustrative only)

Not financial advice, but here’s how some Singapore investors might conceptually use Nasdaq Composite index exposure as part of a broader portfolio:

Conservative growth

  • 60% global or US broad-market ETFs.
  • 20% bonds / income strategies.
  • 10% Singapore / Asia ex-Japan equities.
  • 10% Nasdaq Composite or Nasdaq-linked growth exposure

Balanced growth

  • 50% global / US core equity.
  • 15% bonds / income.
  • 15% Singapore / Asia.
  • 20% Nasdaq Composite index exposure.

Aggressive growth

  • 20–30% core global / US.
  • 10–20% bonds / defensive.
  • 10–20% regional or factor tilts.
  • 30–40% combined Nasdaq Composite and Nasdaq-100 exposure.

The idea is not to chase performance, but to intentionally size your Nasdaq Composite compare allocation so it aligns with your risk tolerance.

Checklist before you buy

Before clicking “buy” on a Nasdaq Composite ETF:

  • Do you understand what the Nasdaq Composite index holds and its tech / mega-cap concentration?
  • Are you clear on ETF domicile, fees and tax implications as a non-US investor?
  • Have you decided between lump sum vs dollar-cost averaging?
  • Are you comfortable with volatility and do you have a long enough time horizon to ride out cycles?

Quick Takeaways

  • The Nasdaq Composite index is a market-cap-weighted index of over 3,000 Nasdaq-listed securities, making it broader than the Nasdaq-100 but still very tech-heavy.
  • Tech giants like Apple, Microsoft, Amazon, Nvidia and Alphabet drive a large share of the index’s movements, so it behaves like a growth-focused, tech-tilted index.
  • Historically, the Nasdaq Composite has delivered strong long-term returns but with higher volatility and deeper drawdowns than broader indices like the S&P 500.
  • Singapore investors typically access it via ETFs that track the Nasdaq Composite, such as the Fidelity Nasdaq Composite Index ETF (ONEQ).
  • The index may suit long-term, growth-oriented investors who can tolerate volatility and are comfortable with US equity and tech risk.
  • Before investing, compare ETF domicile, fees, tax treatment and platform charges, especially as a Singapore-based, non-US investor.

Conclusion

The Nasdaq Composite index captures a powerful mix of innovation, growth and global tech leadership, all in a single, rules-based index. For Singapore investors used to bank- and REIT-heavy local markets, it offers a compelling way to participate in trends like AI, cloud computing, semiconductors and digital platforms that are reshaping the modern economy.

Yet this growth potential comes with clear trade-offs: higher volatility, tech concentration, and sensitivity to interest rates and valuations. If you already have a diversified foundation, and you’re comfortable with these risks, allocating a measured portion of your portfolio to a Nasdaq Composite-linked vehicle can be a meaningful growth tilt.

Before you proceed, take time to:

  • Compare platforms and products.
  • Decide your target allocation and DCA plan.
  • Ensure this exposure fits into your overall financial goals, not just current market hype.

Used thoughtfully, the Nasdaq Composite index can be a useful building block in a well-designed, globally diversified portfolio for Singaporean investors.

Frequently Asked Questions (FAQs)

1. Is the Nasdaq Composite the same as the Nasdaq-100?
No. The Nasdaq Composite tracks over 3,000 Nasdaq-listed securities across many sectors and sizes, while the Nasdaq-100 includes only the 100 largest non-financial companies on Nasdaq, mostly mega-cap growth names.

If your priority is broad coverage, the Nasdaq Composite index is more comprehensive; if you just want the top mega-cap growth stocks, Nasdaq-100 ETFs may be sufficient.

2. How can I invest in the Nasdaq Composite index from Singapore?
Common ways include:

  • Buying a Nasdaq Composite ETF like Fidelity Nasdaq Composite Index ETF (ONEQ) through a broker that offers US markets.
  • Using robo-advisors or managed portfolios that allocate to Nasdaq-linked funds.
  • Combining US and global equity ETFs that together mirror a growth-tilted Nasdaq profile.

You will typically fund in SGD, convert to USD (automatically or manually), and then buy the ETF units.

3. Is the Nasdaq Composite too risky for beginner investors
The Nasdaq Composite index is more volatile than many broad-market indices and has seen large drawdowns, including during the 2000 dot-com crash, the 2008 crisis and the 2022 rate-hike period.

For beginner investors, it’s usually better to:

  • Make it a small satellite position, not your entire portfolio.
  • Pair it with diversified core holdings and some lower-risk assets.
  • Use a long-term, dollar-cost-averaging approach instead of trying to time the market.

4. How does the Nasdaq Composite compare to the S&P 500 for long-term performance
Historically, the Nasdaq Composite has often outperformed the S&P 500 over long stretches, particularly during tech bull markets, but with higher volatility and deeper drawdowns.

For a Singapore investor:

  • The S&P 500 can serve as a core US equity holding.
  • The Nasdaq Composite can be a higher-risk, higher-potential satellite for those comfortable with tech and growth exposure.

5. What should I look at when comparing Nasdaq Composite ETFs
When choosing a Nasdaq Composite ETF or similar product, consider:

  • Domicile (e.g. US-domiciled) and related tax implications (withholding tax, estate tax thresholds).
  • Total expense ratio (TER) and any platform fees.
  • Tracking difference versus the index over time and average bid-ask spreads.

Whether the ETF’s size and liquidity fit your trade size and holding period.

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