^XBD vs. ^NDX

Last updated Jun 4, 2026

^XBD (NYSE Arca Securities Broker/Dealer Index) and ^NDX (NASDAQ 100 Index) are both indexes. Over the past 10 years, ^XBD returned 20.42%/yr vs 21.09%/yr for ^NDX. A 0.64 correlation means they provide meaningful diversification when combined.

Performance

^XBD vs. ^NDX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in NYSE Arca Securities Broker/Dealer Index (^XBD) and NASDAQ 100 Index (^NDX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ^XBD achieves a 3.18% return, which is significantly lower than ^NDX's 21.07% return. Both investments have delivered pretty close results over the past 10 years, with ^XBD having a 20.42% annualized return and ^NDX not far ahead at 21.09%.

^XBD

• 1D: -1.09%
• 1M: -2.18%
• YTD: 3.18%
• 6M: 2.50%
• 1Y: 15.01%
• 3Y*: 32.60%
• 5Y*: 17.24%
• 10Y*: 20.42%

^NDX

• 1D: -0.29%
• 1M: 10.56%
• YTD: 21.07%
• 6M: 19.39%
• 1Y: 41.12%
• 3Y*: 28.09%
• 5Y*: 17.29%
• 10Y*: 21.09%

*Multi-year figures are annualized to reflect compound growth (CAGR)

^XBD vs. ^NDX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
^XBD NYSE Arca Securities Broker/Dealer Index	3.18%	27.31%	44.51%	24.08%	-7.75%	28.94%	30.03%	22.35%	-10.52%	29.21%
^NDX NASDAQ 100 Index	21.07%	20.17%	24.88%	53.81%	-32.97%	26.63%	47.58%	37.96%	-1.04%	31.52%

Correlation

The correlation between ^XBD and ^NDX is 0.61, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.61
Correlation (3Y) Calculated over the trailing 3-year period	0.58
Correlation (5Y) Calculated over the trailing 5-year period	0.64
Correlation (10Y) Calculated over the trailing 10-year period	0.60
Correlation (All Time) Calculated using the full available price history since Apr 18, 1994	0.64

The correlation between ^XBD and ^NDX has been stable across timeframes, ranging from 0.58 to 0.64 - a consistent structural relationship.

Return for Risk

^XBD vs. ^NDX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

^XBD

^XBD Risk / Return Rank: 37
^XBD Sharpe Ratio Rank: 36
^XBD Sortino Ratio Rank: 35
^XBD Omega Ratio Rank: 36
^XBD Calmar Ratio Rank: 38
^XBD Martin Ratio Rank: 38

^NDX

^NDX Risk / Return Rank: 81
^NDX Sharpe Ratio Rank: 83
^NDX Sortino Ratio Rank: 82
^NDX Omega Ratio Rank: 81
^NDX Calmar Ratio Rank: 81
^NDX Martin Ratio Rank: 80

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

^XBD vs. ^NDX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for NYSE Arca Securities Broker/Dealer Index (^XBD) and NASDAQ 100 Index (^NDX). 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.

	^XBD	^NDX	Difference
Sharpe ratio Return per unit of total volatility	0.72	2.57	-1.85
Sortino ratio Return per unit of downside risk	1.12	3.37	-2.25
Omega ratio Gain probability vs. loss probability	1.13	1.44	-0.31
Calmar ratio Return relative to maximum drawdown	1.15	3.41	-2.26
Martin ratio Return relative to average drawdown	3.24	13.03	-9.79
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

^XBD vs. ^NDX - Sharpe Ratio Comparison

The current ^XBD Sharpe Ratio is 0.72, which is lower than the ^NDX Sharpe Ratio of 2.57. The chart below compares the historical Sharpe Ratios of ^XBD and ^NDX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	^XBD	^NDX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.72	2.57	-1.85
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.75	0.77	-0.02
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.84	0.94	-0.10
Sharpe Ratio (All Time) Calculated using the full available price history	0.47	0.57	-0.11

Drawdowns

^XBD vs. ^NDX - Drawdown Comparison

The maximum ^XBD drawdown since its inception was -80.20%, roughly equal to the maximum ^NDX drawdown of -82.90%. Use the drawdown chart below to compare losses from any high point for ^XBD and ^NDX.

Drawdown Indicators

	^XBD	^NDX	Difference
Max Drawdown Largest peak-to-trough decline	-80.20%	-82.90%	+2.70%
Max Drawdown (1Y) Largest decline over 1 year	-13.09%	-12.12%	-0.97%
Max Drawdown (3Y) Largest decline over 3 years	-23.69%	-22.93%	-0.76%
Max Drawdown (5Y) Largest decline over 5 years	-27.98%	-35.56%	+7.58%
Max Drawdown (10Y) Largest decline over 10 years	-41.25%	-35.56%	-5.69%
Current Drawdown Current decline from peak	-6.53%	-0.29%	-6.24%
Average Drawdown Average peak-to-trough decline	-22.31%	-24.62%	+2.31%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.65%	3.17%	+1.48%

Volatility

^XBD vs. ^NDX - Volatility Comparison

NYSE Arca Securities Broker/Dealer Index (^XBD) and NASDAQ 100 Index (^NDX) have volatilities of 4.74% and 4.52%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	^XBD	^NDX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.74%	4.52%	+0.22%
Volatility (6M) Calculated over the trailing 6-month period	16.37%	12.18%	+4.19%
Volatility (1Y) Calculated over the trailing 1-year period	20.82%	16.08%	+4.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.98%	22.60%	+0.38%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.52%	22.53%	+1.99%

Frequently Asked Questions

Can I hold both ^XBD and ^NDX in my portfolio?

^XBD and ^NDX have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ^XBD or ^NDX?

^XBD has higher volatility (4.74%) compared to ^NDX (4.52%). In terms of maximum drawdown, ^XBD dropped -80.20% vs ^NDX's -82.90%.

Which has better risk-adjusted returns?

^NDX currently has the higher Sharpe Ratio (2.57 vs 0.72), 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.