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A Demand Surge for Nasdaq-100 Index in 401(k) Plans

A new study has unveiled significant interest among 401(k) plan participants for incorporating the Nasdaq-100 Index® in their investment selections. According to the Annual Nasdaq-100® Retirement Plan Survey, approximately 80% of respondents understand the relevance of having access to a product tied to the Nasdaq-100. This trend signifies an emerging market prospect for retirement plans, particularly as the workforce increasingly seeks to optimize their investment portfolios in alignment with technology-driven market growth.

The survey, which included insights from 1,000 401(k) participants, accurately reflects demographic data from the 2023 U.S. Census, covering aspects such as gender, age, and regional distribution. Notably, the Nasdaq-100 has historically provided exposure to innovative companies that are reshaping various sectors and, in turn, the global economy. With over $300 billion in assets tied to this index, the demand for inclusion in 401(k) plans indicates a significant shift towards tech-oriented investment strategies.

Cameron Lilja, Vice President and Global Head of Product Operations at Nasdaq Global Indexes, remarked, "The Nasdaq-100 captures companies that are on the cutting edge of innovation, fundamentally changing our lifestyle, work, and investment methods. As retirement portfolios transform to keep pace with a dynamic economy, we are enthusiastic about supporting partners who provide investors with an avenue to access its long-term growth potential."

As of December 31, 2024, Americans held $12.4 trillion across all employer-sponsored defined-contribution retirement plans, with a staggering $8.9 trillion of that in 401(k) accounts, based on the latest report from the Investment Company Institute released on March 25, 2025. Surprisingly, however, the allocation of assets to Nasdaq-100 Index mutual funds in the vast array of over 700,000 401(k) plans only comprises less than 1% of the total assets, marking a stark underrepresentation compared to other indices such as the S&P 500.

Steve Rogers, CEO of Shelton Capital Management, stated, "From 1994 until the end of 2024, the S&P 500 yielded a return of over 2,000%, whereas the Nasdaq accomplished an impressive over 6,000% return. This return on investment suggests an advantageous risk/return profile for those willing to accept a bit more volatility in their 401(k) portfolios. For investors ready to embrace this additional risk, investing in funds linked to this benchmark is an effective wealth-building strategy."

Survey Insights

Key findings from this survey reveal compelling insights:

• - Nearly 80% of 401(k) plan participants agree that having access to a Nasdaq-100 product is important, with about 20% deeming it extremely critical.
• - Around 45% of these participants already hold a Nasdaq-100 tracking product in their investment portfolios.
• - Close to 40% are attracted to the Nasdaq-100 due to its long-term, robust performance record.
• - More than 90% of respondents have a post-secondary education, with a median household income of at least $80,000.

For financial advisors and their clients, the Nasdaq-100 Index Fund, denoted as NQQQX, provides an institutional share class mutual fund aiming to replicate the Nasdaq-100 Index's performance. Notably, it boasts an expense ratio of 0.27%, significantly lower—by 64%—than the average within its Morningstar peer group. Additionally, the investor share class, NASDX, is available for individual investors looking to capitalize on these promising index performances.

About Shelton Capital Management

Shelton Capital Management (SCM) is a boutique investment firm dedicated to helping clients achieve their financial aspirations through customized investment solutions and a customer-centric service approach. Established in 1985, SCM offers mutual funds and separately managed accounts for various investors, including wealth managers, retirement plans, and individuals. As of March 31, 2025, the firm manages over $5.4 billion in assets. For further inquiries, please visit Shelton Capital Management.

Research Methodology

The survey conducted by Shelton Capital Management involved over 1,000 U.S. 401(k) plan participants, reflecting the U.S. Census data for demographics. The study was executed by Centiment from February 10 to 14, 2025. This analytical approach ensures a representative sample, with respondents aged 18 and older, engaged in full-time employment and earning a median household income of $80,000 or higher. With an estimated 22.5 million U.S. adults fitting this profile, the survey results hold a 95% confidence level and a margin of error of ±3%.

Important Considerations

Potential investors should carefully evaluate investment objectives, risks, charges, and expenses associated with these funds prior to investing. A fund’s prospectus contains essential details, and individuals are encouraged to read it thoroughly before deciding on investments. While opportunities for wealth accumulation through investments exist, there are also risks involved, including the potential loss of capital. As with any financial undertaking, past performance should not be interpreted as indicative of future results.