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WisdomTree Insights
The Nasdaq-100 Index is considered by many as the default benchmark for growth. The methodology is straightforward—the 100 largest non-financial companies by market cap listed on the Nasdaq Exchange are selected for inclusion. Securities are weighted by modified market capitalisation.
One of the drawbacks to this simplicity for a growth benchmark is that mature, slow growth companies can populate the index because of the absence of fundamental selection criteria. In our view, WisdomTree has created a better way to capture growth—the WisdomTree U.S. Quality Growth Index.