Nearly 80% of 401(k) plan participants recognize the importance of including a Nasdaq-100 product in their investment options, suggesting a new market opportunity for retirement plans.
That’s according to today’s release of the Shelton Capital Management Annual Nasdaq-100 Retirement Plan Survey, which found significant investor demand for the index in retirement plans from the survey’s 1,000 401(k) participants.
For 40 years, the Nasdaq-100 Index has given investors access to tech-driven brands transforming industries and the global economy, amassing over $300 billion in assets tied to the index, according to Morningstar.
“The Nasdaq-100 captures the companies at the forefront of innovation—shaping how we live, work, and invest. As retirement portfolios evolve to reflect a changing economy, we’re proud to support our partners who are helping investors gain exposure to its long-term growth potential,” said Cameron Lilja, VP, Global Head of Product & Operations, Nasdaq Global Indexes.
Americans held $12.4 trillion in all employer-based defined contribution retirement plans on Dec. 31, 2024, of which $8.9 trillion was held in 401(k) plans, according to the Investment Company Institute quarterly report published March 25, 2025.
However, based on figures from the over 700,000 401(k) plans, allocation to Nasdaq-100 Index mutual funds makes up less than 1% of all 401(k) assets, a significant underrepresentation compared to the S&P 500 and other Large Cap Growth Indexes, according to BrightScope Beacon.
“From 1994 through the end of 2024, the S&P 500 returned over 2,000%, while the Nasdaq returned over 6,000%,” said Steve Rogers, CEO of Shelton Capital Management. “This was a great risk/return trade-off for the additional volatility. For investors comfortable with the additional risk inside of their 401(k) account, owning funds tied to this benchmark was a great way to build wealth.”
Key survey insights
The just-released survey found nearly 80% of 401(k) plan participants believe it is important to include the Nasdaq-100 product in their investment options, with around 20% considering it extremely important.
More key findings:
- Nearly 45% of these participants already possess a product that tracks the Nasdaq-100 within their portfolios.
- 40% of 401(k) plan participants say a long-term, superior track record attracts them most to the Nasdaq-100.
- More than 90% of the respondents have attained post-secondary education, reporting a median household income of at least $80,000.
For financial advisors and their clients, SCM’s Nasdaq-100 Index Fund, NQQQX, is an institutional share class mutual fund that seeks to replicate the performance of the Nasdaq-100 Index. It has an expense ratio of 0.27 percent, which is 64% lower than the average of its Morningstar peer group. In addition, the fund’s investor share class, NASDX, is available to retail investors.
Denver-based Shelton Capital Management (SCM) is a boutique investment firm that helps investors meet financial goals through tailored investment solutions and human-centric customer service. Founded in 1985, the company provides mutual funds and separately managed accounts to the clients of wealth managers, retirement plans, and individual investors. As of Dec. 31, 2024, the firm manages over $5.5 billion.
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Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.