NASDAQ Composite Annual Returns History
Direct answer: The NASDAQ Composite is a tech-heavy index covering all NASDAQ-listed stocks. It has delivered higher average returns than the S&P 500 but with significantly more volatility. The worst single year was 2000 (−39.3%) during the dot-com bust. The best year was 1999 (+85.6%). Since inception (1971), the NASDAQ has delivered approximately 10-11% annualized returns.
NASDAQ Composite Annual Returns, 1990-2024
| Year | Annual Return |
|---|---|
| 1990 | -17.8% |
| 1991 | +56.8% |
| 1992 | +15.5% |
| 1993 | +14.8% |
| 1994 | -3.2% |
| 1995 | +39.9% |
| 1996 | +22.7% |
| 1997 | +21.6% |
| 1998 | +39.6% |
| 1999 | +85.6% (dot-com peak) |
| 2000 | -39.3% |
| 2001 | -21.1% |
| 2002 | -31.5% |
| 2003 | +50.0% |
| 2004 | +8.6% |
| 2005 | +1.4% |
| 2006 | +9.5% |
| 2007 | +9.8% |
| 2008 | -40.5% |
| 2009 | +43.9% |
| 2010 | +16.9% |
| 2011 | -1.8% |
| 2012 | +15.9% |
| 2013 | +38.3% |
| 2014 | +13.4% |
| 2015 | +5.7% |
| 2016 | +7.5% |
| 2017 | +28.2% |
| 2018 | -3.9% |
| 2019 | +35.2% |
| 2020 | +43.6% |
| 2021 | +21.4% |
| 2022 | -33.1% |
| 2023 | +43.4% |
| 2024 est. | +29% |
Source: St. Louis Fed FRED: NASDAQ Composite Index. Last verified: September 2026.
Frequently asked questions
Why does the NASDAQ outperform the S&P 500 in some years and underperform in others?
The NASDAQ is heavily weighted toward technology and growth stocks (Microsoft, Apple, NVIDIA, Amazon, Alphabet account for a large portion of its weight). Technology stocks are high-duration assets -- their value depends heavily on distant future earnings discounted at the current interest rate. When interest rates fall (good for growth stocks), NASDAQ outperforms. When rates rise, NASDAQ underperforms. In 2020-2021 (near-zero rates), NASDAQ gained +43.6% and +21.4%. In 2022 (aggressive rate hikes), NASDAQ fell −33.1% vs. S&P 500's −18.1%. The NASDAQ's volatility also reflects the technology sector's faster growth cycles and higher sensitivity to earnings disappointments.
How long did it take NASDAQ to recover from the dot-com crash?
The NASDAQ Composite peaked at 5,048.62 on March 10, 2000. It didn't recover to that level until April 2015 -- a 15-year recovery period. This is the longest major-index recovery in U.S. stock market history. By comparison, the S&P 500 recovered its 2007 peak by 2013 (6 years). Investors who bought NASDAQ index funds at the 2000 peak had to wait 15 years to break even on a nominal basis (and longer inflation-adjusted). This illustrates a key risk of concentrated technology exposure: spectacular gains in bull markets can be matched by devastating losses and extremely long recovery periods.
Is NASDAQ a better long-term investment than the S&P 500?
Over the period 1985-2024, NASDAQ has outperformed the S&P 500 in terms of total return but with dramatically higher volatility (standard deviation approximately 25-30% for NASDAQ vs. 15-18% for S&P 500). Whether it is "better" depends on: (1) time horizon (shorter horizons favor S&P 500's stability; longer horizons absorb NASDAQ's volatility); (2) risk tolerance (15-year recovery periods require strong conviction); (3) entry point (buying at peak tech valuations, like 2000, led to worse outcomes than S&P 500). Most financial planning uses S&P 500 as the equity benchmark precisely because its broader diversification produces better risk-adjusted returns than the sector-concentrated NASDAQ.