Nasdaq100 versus FTSE100

The comparison between Nasdaq100 and FTSE100 over the past 12 months, specifically from December 31, 2022, to November 27, 2023, reveals significant performance differences. The Nasdaq100 exhibited a remarkable increase of 49%, whereas the FTSE100 showed a marginal decline of 0.1%.

This stark contrast may initially suggest a robust outperformance by the Nasdaq100. However, a more nuanced analysis yields a different perspective. Upon removing the top 14 companies by market capitalization from the Nasdaq100, the index's growth rate drops to 18%. Further, excluding the largest 14 companies along with all tech-related entities (both software and hardware), the Nasdaq100's gain diminishes to a mere 6%.

This data indicates that the apparent substantial growth of the US market, as often portrayed in headlines, is primarily driven by technology and large-scale companies. This trend aligns with the pre-COVID years' patterns. Nonetheless, when these dominating sectors are excluded, the performance of the US market appears more aligned with other global markets.