Nasdaq Next Generation 100: Index Research Highlights ...

Nasdaq Next Generation 100: Index Research Highlights October 2020

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Nasdaq Next Generation 100 Index: Methodology

Rebalanced quarterly (March, June, September, December)

Reconstituted annually (effective after the close of trading on the third Friday in December)

Global companies listed on Nasdaq, including ADRs

Modified market-cap weighting process with quarterly and annual weight adjustments

The Nasdaq Next Generation 100 Index? is designed to measure the performance of the next generation of Nasdaq-listed non-financial companies; that is, the largest 100 companies outside of the NASDAQ-100 Index?.

Constituent Weighting

Index Securities' initial weights are determined by dividing each Index Security's market capitalization by the aggregate market capitalization of all Index Securities

No index security weight may exceed 4%

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Performance & Risk

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Nasdaq Next Generation 100 Performance

600

? Index launched on 8/24/2020, and simulated performance dates back 500 to 12/18/2009

Cumulative Price Performance vs. Midcap Market Benchmarks thru September 30, 2020

? On a price return basis, 400 the index gained 391% from start date of backtest thru 9/30/2020

300

? S&P Midcap 400 Index rose only 160%

200

? Russell Mid Cap Growth Index increased 293%

100

0 12/18/2009 12/18/2010 12/18/2011 12/18/2012 12/18/2013 12/18/2014 12/18/2015 12/18/2016 12/18/2017 12/18/2018 12/18/2019

Nasdaq Next Generation 100

S&P Midcap 400

Russell Mid Cap Growth

Source: Nasdaq, Bloomberg, FactSet. Data as of 9/30/2020.

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Nasdaq Next Generation 100 Performance

Total Returns by Calendar Year vs. Midcap Market Benchmarks thru September 30, 2020

60%

50%

48.1%

40%

31.4%

30%

26.6%26.4%

20%

10%

35.7% 33.5%

20.9% 17.9% 15.8%

11.9% 10.2% 9.8%

5.3%

20.7%

30.0%

25.3%

16.2%

8.8%

7.3%

31.6%

35.5%

26.2%

13.8% 13.9%

0% -10%

-1.79%-1.7% -1.7%

-20%

2010

2011

2012

-0.2% -2.2%

-4.8%

-8.1% -11.1%

2013

2014

Nasdaq Next Generation 100

2015

S&P Midcap 400

2016

2017

Russell Mid Cap Growth

2018

2019

-8.6%

2020

Source: Nasdaq, Bloomberg, FactSet. Data as of 9/30/2020.

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