#NasdaqETFUpdate A Nasdaq ETF (Exchange Traded Fund) allows investors to gain diversified exposure to companies listed on the Nasdaq stock exchange, primarily focusing on the Nasdaq-100 Index. This index tracks 100 of the largest non-financial companies, predominantly in the technology sector, but also including consumer discretionary, healthcare, and industrial firms. Investors buy shares of the ETF, which in turn holds a basket of these underlying stocks.

Benefits include ease of trading like individual stocks, diversification across innovative growth companies, and generally lower expense ratios compared to actively managed funds. However, Nasdaq ETFs carry risks such as market volatility, significant concentration in the technology sector, and potential for greater declines during bear markets.