Nasdaq-100 Lacking in 401(k) Plan Offerings 

Despite strong interest from 401(k) plan participants in Nasdaq-100 investment options, few plans include them. The Annual Nasdaq-100 Retirement Plan Survey by Shelton Capital Management found nearly 80% of 1,000 surveyed participants valued having a Nasdaq-100 product in their retirement plan.  

Yet, data from over 7,000 401(k) plans shows Nasdaq-100 Index mutual funds represent less than 1% of 401(k) assets, significantly trailing S&P 500 and other large-cap growth indexes, per BrightScope Beacon. Morningstar notes the Nasdaq-100 has driven $300 billion in assets over 40 years, fueling tech-driven growth. As of December 31, 2024, the Investment Company Institute reported $8.9 trillion of the $12.4 trillion in employer-sponsored defined contribution plans was in 401(k)s. 

In the survey, 45% of participants said they held a Nasdaq-100-tracking product, but 35% were unsure which funds. Half were unfamiliar with the index’s composition. The index’s “long-term, superior track record” drew investors, with 60% prioritizing Amazon, 58% Apple, and 50% Microsoft. However, 45% cited brokerage fees as a concern. 

While 35% of respondents called Nasdaq-100 access somewhat important and 18% extremely important, its scarcity in 401(k) plans highlights a gap between participant interest and plan offerings. 

“From 1994 through the end of 2024, the S&P 500 returned over 2,000%, while the Nasdaq returned over 6,000%,” Shelton Capital Management CEO Steve Rogers said. “This was a great risk/return trade-off for the additional volatility. For investors comfortable with the additional risk inside of their 401(k) account, owning funds tied to this benchmark was a great way to build wealth.” 

The survey ran from February 10 to February 14, 2025. The Nasdaq-100 Index tracks 100 of the largest non-financial companies listed on Nasdaq, such as Amazon, Apple, and Microsoft, based on market capitalization.