What is the average annual return of the Nasdaq 100?

Across the forty years from 1986 to 2026 the Nasdaq 100 averaged about 14.0% a year on a price-return basis in US dollars, excluding dividends, fees and tax. Thirty-three of those years were positive and seven were negative.

How far has the Nasdaq 100 fallen in past crashes?

Three falls stand out: about 83% from 1999 to 2002, about 42% in 2007–08, and about 33% in 2021–22. The first took roughly fifteen years to recover to its previous level.

Is investing a lump sum better than investing monthly?

Neither earned a better rate here. From January 1986, $10,000 invested once grew to about $1.91M and $500 a month grew to about $8.69M — but that reflects $240,000 paid in versus $10,000. Both compounded at roughly 14% a year.

The Nasdaq 100, Forty Years In

Nasdaq 100 annual returns from 1986 to 2026: forty years, thirty-three up years, seven down years, averaging 14.0% a year.

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Forty years. Thirty-three good, seven bad.

Each circle is one year, and the bigger the circle the bigger the move. The Nasdaq 100 is simply the 100 largest companies on the Nasdaq exchange — mostly technology.

Across those forty years it averaged 14.0% a year.

Nasdaq 100 index level on a log scale, marking three falls — 83% in 1999–2002, 42% in 2007–08 and 33% in 2021–22.

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From far away it looks like a smooth climb.

Up close it is three brutal falls: −83% in 1999–02, −42% in 2007–08, −33% in 2021–22.

The first one took fifteen years just to get back to where it started. Fifteen years — not fifteen months.

Two investors from January 1986: $10,000 invested once becomes $1.91M, while $500 a month becomes $8.69M — both compounding at about 14% a year.

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Same 14%. Two very different endings.

Two people start in January 1986 and neither ever sells. One puts in $10,000 once and ends with $1.91M. The other puts in $500 every month and ends with $8.69M.

That is not a cleverer strategy — it is a bigger deposit. $240,000 paid in instead of $10,000. Both earned the same 14% a year.

Seven losing years in forty; nobody who sold in 2002, 2008 or 2022 collected the 14% a year.

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You never had to pick the winners.

You had to still be there. Seven losing years in forty, and every one of them felt permanent while you were living through it.

Nobody who sold in 2002, 2008 or 2022 collected that 14%.

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Illustration only, not a recommendation. Nasdaq 100 price return in USD — it excludes dividends, fees and tax, and a Malaysian investor also carries currency risk. Past performance does not indicate future returns. Adezeno is a licensed Unit Trust Consultant with Eastspring Investments Berhad, FiMM No. F01029300.