^NDXT vs. NDAQ
^NDXT (NASDAQ 100 Technology Sector Index) is an index, while NDAQ (Nasdaq, Inc.) is a stock. Over the past 10 years, ^NDXT returned 23.05%/yr vs 16.09%/yr for NDAQ. A 0.51 correlation means they provide meaningful diversification when combined.
Performance
^NDXT vs. NDAQ - Performance Comparison
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Returns By Period
In the year-to-date period, ^NDXT achieves a 40.30% return, which is significantly higher than NDAQ's -19.51% return. Over the past 10 years, ^NDXT has outperformed NDAQ with an annualized return of 23.05%, while NDAQ has yielded a comparatively lower 16.09% annualized return.
^NDXT
- 1D
- 1.70%
- 1M
- 2.79%
- YTD
- 40.30%
- 6M
- 37.42%
- 1Y
- 53.65%
- 3Y*
- 31.58%
- 5Y*
- 15.71%
- 10Y*
- 23.05%
NDAQ
- 1D
- -4.85%
- 1M
- -14.25%
- YTD
- -19.51%
- 6M
- -20.75%
- 1Y
- -10.70%
- 3Y*
- 17.72%
- 5Y*
- 6.97%
- 10Y*
- 16.09%
^NDXT vs. NDAQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
^NDXT NASDAQ 100 Technology Sector Index | 40.30% | 22.46% | 7.13% | 66.70% | -39.93% | 26.98% | 38.17% | 47.28% | -5.49% | 36.68% |
NDAQ Nasdaq, Inc. | -19.51% | 27.19% | 34.85% | -3.66% | -11.19% | 60.13% | 25.99% | 33.88% | 8.21% | 16.76% |
Correlation
The correlation between ^NDXT and NDAQ is 0.30, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.30 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.37 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.49 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.47 |
Correlation (All Time) Calculated using the full available price history since Feb 22, 2006 | 0.51 |
Over the past year, the correlation between ^NDXT and NDAQ has dropped to 0.30 - well below their long-term average of 0.51, suggesting their price drivers have been diverging.
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Return for Risk
^NDXT vs. NDAQ — Risk / Return Rank
^NDXT
NDAQ
^NDXT vs. NDAQ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for NASDAQ 100 Technology Sector Index (^NDXT) and Nasdaq, Inc. (NDAQ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| ^NDXT | NDAQ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.44 | ||
| Sortino ratioReturn per unit of downside risk | +2.97 | ||
| Omega ratioGain probability vs. loss probability | 1.34 | 0.95 | +0.39 |
| Calmar ratioReturn relative to maximum drawdown | 3.35 | -0.48 | +3.83 |
| Martin ratioReturn relative to average drawdown | 10.49 | -1.08 | +11.57 |
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Drawdowns
^NDXT vs. NDAQ - Drawdown Comparison
The maximum ^NDXT drawdown since its inception was -59.34%, smaller than the maximum NDAQ drawdown of -68.48%. Use the drawdown chart below to compare losses from any high point for ^NDXT and NDAQ.
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Drawdown Indicators
| ^NDXT | NDAQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.34% | -68.48% | +9.14% |
Max Drawdown (1Y)Largest decline over 1 year | -16.08% | -22.58% | +6.50% |
Max Drawdown (3Y)Largest decline over 3 years | -29.28% | -22.58% | -6.70% |
Max Drawdown (5Y)Largest decline over 5 years | -45.71% | -32.84% | -12.87% |
Max Drawdown (10Y)Largest decline over 10 years | -45.71% | -38.31% | -7.40% |
Current DrawdownCurrent decline from peak | -3.80% | -22.58% | +18.78% |
Average DrawdownAverage peak-to-trough decline | -9.86% | -23.79% | +13.93% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.13% | 9.97% | -4.84% |
Volatility
^NDXT vs. NDAQ - Volatility Comparison
NASDAQ 100 Technology Sector Index (^NDXT) has a higher volatility of 14.32% compared to Nasdaq, Inc. (NDAQ) at 11.40%. This indicates that ^NDXT's price experiences larger fluctuations and is considered to be riskier than NDAQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ^NDXT | NDAQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 14.32% | 11.40% | +2.92% |
Volatility (6M)Calculated over the trailing 6-month period | 22.25% | 22.42% | -0.17% |
Volatility (1Y)Calculated over the trailing 1-year period | 26.51% | 26.11% | +0.40% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 30.17% | 24.27% | +5.90% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 28.11% | 24.41% | +3.70% |
Frequently Asked Questions
^NDXT and NDAQ have a correlation of 0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
^NDXT has higher volatility (14.32%) compared to NDAQ (11.40%). In terms of maximum drawdown, ^NDXT dropped -59.34% vs NDAQ's -68.48%.
^NDXT currently has the higher Sharpe Ratio (2.03 vs -0.41), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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