Why This Advisor Says the Nasdaq 100 is the Next S&P 500

All investors gradually learn that position size matters a lot. And with regards to these battle ETFs, all of these equity index instruments could be over 100% of our strategies when appropriate. So I call the position size category a four-way split decision.

However, we do generally favor the NASDAQ 100 over the S&P. And we often say the NASDAQ 100 is the next generation S&P. We say this because the top 10 holdings of the two indexes are mostly the same, although the NASDAQ 100 has far more exposure.

If you are a CEO launching the next Nvidia or Google, you absolutely want your stock to be on the NASDAQ so you can get allocation flows from both the S&P and the NASDAQ 100 indexes. At ETFPM, we do believe the NASDAQ 100 is the next generation S&P.