If you're wondering how America's top 3 indices stack up against each other, we're going to show you the differences between the S&P 500 vs Nasdaq vs Dow Jone, and where you can invest.
In this data-driven guide we’ll explain (and show you) the differences between these 3 key market measures used to gauge the overall US stock market and economy. But, when comparing the S&P 500 vs Nasdaq vs Dow Jones, there are a few key details to wrap your head around first.
S&P 500 vs Nasdaq vs Dow Jones basics
Firstly, the Nasdaq is a stock exchange (a marketplace where stocks can be bought and sold). But, when people refer to “the Nasdaq”, they could also be referring to the popular Nasdaq 100 index or the Nasdaq Composite. These are both stock markets indices.
An index is just a list of stocks that’s tracked as a way to measure performance. The Nasdaq 100 is the top 100 stocks on the Nasdaq exchange, and that’s the “Nasdaq” we’ll be focusing on this guide.
The S&P 500 is also a stock marekt index, made up of 500 of the biggest and best US stocks. And finally, the Dow Jones Industrial Average (or simply “The Dow”) is a hand-picked selection of 30 US stocks and is “price-weighted” rather than “market-cap weighted” like the Nasdaq 100 and S&P 500.
At a glance
S&P 500
Nasdaq 100
Dow Jones Industrial Average
Code
GSPC
NDX
DJI
Exchange
Nasdaq & NYSE
Nasdaq
Nasdaq & NYSE
Number of companies
500
100
30
Sectors
All sectors
Non-financials
Blue-chip stocks
Index performances over time
S&P 500
Nasdaq 100
Dow Jones Industrial Average
Search companies in the 3 indices
You can use this table to see where the S&P 500, the Nasdaq 100 and the Dow Jones overlap.
Index funds and exchange-traded funds (ETF) are a way to invest in a group of stocks in one fell swoop. Here are some of the most popular funds tracking these three indices.
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Platforms to invest in the Dow, Nasdaq or S&P
These trading apps allow you to buy shares in individual companies within the 3 indices if you want to pick and choose your favourites. Or alternatively you can invest in all the stocks on each index using an index fund or exchange-traded fund (ETF).
We analysed all popular share dealing platforms in the UK using 35 data points and combined this with our expert insight from using the apps. The platforms we've selected as best for each category offer stand-out features or a unique combination of elements for a specific aspect of investing. If we show a "Promoted for" pick, it's been chosen from among our partners and is based on factors that include special features or offers, and the commission we receive. Keep in mind that our picks may not always be the best for you – it's important to compare for yourself. More details in our full methodology.
Bottom line
For UK investors eyeing the US stock market, the S&P 500 vs Nasdaq vs Dow Jones each offer a unique slice of the action (or pie if you’re into American pizza and desserts). The S&P 500 is the all-rounder, tracking 500 of America’s biggest companies across various sectors.
The Nasdaq 100, on the other hand, is the tech-lover’s dream, packed with giants like Apple, Microsoft, and Nvidia, making it more growth-focused but also more volatile. Then there’s the Dow Jones, the old-school choice, featuring just 30 blue-chip companies (that all pay dividends), often seen as a steadier, more traditional benchmark.
Whether you’re after stability, innovation, or a bit of both, there’s a US index to suit your style and risk appetite.
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
George is a deputy editor at Finder. He has previously written for The Motley Fool UK, Nasdaq, Freetrade, Investing in the Web, MoneyMagpie, Online Mortgage Advisor, Wealth, and Compare Forex Brokers. He's focused on making personal finance and investing engaging for everyone. To do this he draws from previous work and his Level 4 Diploma for Financial Advisers (DipFA), sharing what he’s learnt. When he’s not geeking out about money, you’ll find him playing sports and staying active. See full bio
George's expertise
George has written 240 Finder guides across topics including:
Find out how you can invest in the FTSE 250 with exchange traded funds (ETFs). See which 250 companies on the London Stock Exchange are in the FTSE 250.
In a nutshell, an index fund is a low-cost portfolio of shares and other assets that tracks a financial or stock market index. They’re a popular investment choice in the UK and worldwide.
Find out how you can invest in the second-oldest stock market index, the Dow Jones.
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We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
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