What Is The Average Return Of The Nasdaq: A Closer Look

The Nasdaq rate of return refers to the annual performance of the Nasdaq stock market index, which measures the returns generated by a basket of tech-heavy and growth-oriented stocks. To provide a clearer picture of its recent performance, here are the annual returns for the Nasdaq index in the last few years:

• In 2023, the Nasdaq index yielded a positive return of 41.60%.
• However, in 2022, it experienced a significant decline, posting a negative return of -32.97%.
• The year 2021 saw a notable gain with a return of 26.63%.
• In 2020, the Nasdaq had a robust performance, delivering a return of 47.58%.

These figures help gauge the performance and volatility of the Nasdaq index over the specified years, offering insights into the investment climate for tech and growth stocks during that period.

What has been the average annual return of the Nasdaq 100 index over the past 15 years? During this time period, the Nasdaq 100 index delivered an average 10-year return of approximately 9%, outperforming the S&P 500, which had an average return of about 5%. If you had invested in the Nasdaq 100, you could have potentially achieved a maximum 10-year Compound Annual Growth Rate (CAGR) return of 21%, while investing in the S&P 500 would have yielded a maximum return of 14% over the same 15-year period. This data highlights the potential for higher returns in the Nasdaq 100 compared to the broader market as represented by the S&P 500.

What has been the average annual return for the Nasdaq Composite over the past two decades, specifically from January 1, 2003, to January 1, 2023? The Nasdaq Composite Index has delivered an impressive annualized return of 10.6% during this 20-year period, reflecting its performance in the stock market. This figure helps gauge the long-term profitability of investments in the companies listed on the Nasdaq stock exchange.