How to invest in the NASDAQ
Important information: Investing for 5+ years increases your chances of positive returns compared to cash savings. But, investments and any income they produce fall as well as rise in value, so you could get back less than you put in. You should understand what you’re investing in, specific risks, and make sure any investments you own are held as part of a diversified portfolio. You can learn about investing essentials before getting started. Tax rules can change, and benefits depend on your circumstances. If you’re not sure if an investment is right for you, please seek financial advice.
What is the NASDAQ?
The NASDAQ is a stock exchange based in the United States. It tracks the performance of around 3,500 companies, with a heavy weighting towards companies in the technology sector.
It includes major names like Apple, Microsoft, Amazon, and Alphabet.
Investing in the NASDAQ isn’t right for everyone. You should only invest if the investment's objectives are aligned with your own, and there’s a specific need for the type of investment being made. Investors should understand the specific risks before you invest, and make sure any new investment forms part of a diversified portfolio.
New to investing?
Once you've decided investing is right for you, here's how you can get started:
Open an account and add cash
You can choose from various account types, such as a Stocks and Shares ISA, a Self-Invested Personal Pension (SIPP), or a Fund and Share account. You can then add cash via bank transfer or debit card through our app or on our website.
Choose your investment
You can invest in the NASDAQ by purchasing individual shares of companies within the index or by investing in a NASDAQ index fund or exchange-traded fund (ETF). Funds can be a great way to get started in investing, as day-to-day investment decisions are taken care of by a professional fund manager.
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Review your investments
After making your investment into the NASDAQ, you can monitor its performance through your account. Review your investment portfolio and adjust it as needed, depending on your goals and attitude to risk as these can change over time.
How to invest in the NASDAQ
Investing in the NASDAQ can be a good way to gain exposure to a diverse range of companies, particularly in the technology sector.
| NASDAQ tracker funds | NASDAQ shares | NASDAQ ETFs | |
|---|---|---|---|
| When can I buy and sell? | Trades can be placed online at any time, but confirmation is at the valuation point, which is once per day. The cut-off for same-day valuation is 9:00 AM. Transactions may be processed at the end of the trading day. |
The US market is open from 9:30am to 4pm ET (Eastern Time), Monday to Friday. Please note before you can trade US shares, you must complete and return a W-8BEN form. |
HL offers ETFs that track US indices but are listed in the UK. The UK market is is open 8am to 4:30pm Monday to Friday. |
| Costs |
No HL dealing charge for funds. Fund managers charge a management charge which you'll need to factor into the cost. HL account charge of up to 0.45% per year on the value of investments. |
Online dealing charge between £5.95 and £11.95. HL account charge of up to 0.45% per year on the value of investments. Capped at £45 for ISAs and £200 for SIPPs. No account charge to hold shares or ETFs in a Fund and Share Account. You’ll pay a foreign exchange (FX) charge on US shares. |
Online dealing charge between £5.95 and £11.95. HL account charge of up to 0.45% per year on the value of investments. Capped at £45 for ISAs and £200 for SIPPs. No account charge to hold ETFs in a Fund and Share Account. ETFs have their own management charges. You may have to pay a foreign exchange (FX) charge on some US ETFs. |
NASDAQ tracker funds
- Trades can be placed online at any time, but confirmation is at the valuation point, which is once per day. The cut-off for same-day valuation is 9:00 AM. Transactions may be processed at the end of the trading day.
- No HL dealing charge for funds.
- Fund managers charge a management charge which you'll need to factor into the cost.
- HL account charge of up to 0.45% per year on the value of investments. Learn more about charges
NASDAQ shares
- The US market is open from 9:30am to 4pm ET (Eastern Time), Monday to Friday.
- Please note before you can trade US shares, you must complete and return a W-8BEN form.
- Online dealing charge between £5.95 and £11.95.
- HL account charge of up to 0.45% per year on the value of investments. Capped at £45 for ISAs and £200 for SIPPs. No account charge to hold shares or ETFs in a Fund and Share Account.
- ETFs have their own management charges.
- You’ll pay a foreign exchange (FX) charge on US shares and may have to pay them on some US ETFs. Learn more about charges
NASDAQ ETFs
- HL offers ETFs that track US indices but are listed in the UK.
- The UK market is is open 8am to 4:30pm Monday to Friday.
- Online dealing charge between £5.95 and £11.95.
- HL account charge of up to 0.45% per year on the value of investments. Capped at £45 for ISAs and £200 for SIPPs. No account charge to hold ETFs in a Fund and Share Account.
- ETFs have their own management charges. You may have to pay a foreign exchange (FX) charge on some US ETFs. Learn more about charges
How the NASDAQ works
The NASDAQ is market-capitalisation weighted, meaning companies with a larger market value (like Apple or Microsoft) have more influence on the index’s movement. The index updates continuously during US trading hours as stock prices go up and down.
Every year the index is reviewed and companies added or removed based on their eligibility.
In order to be included, companies must only be listed on the Nasdaq Stock Market and they must not be in bankruptcy proceedings.
Top companies in the NASDAQ
The NASDAQ includes a range of sectors but tends to tilt towards technology and innovation businesses.
Because of this, investors use the index to gauge market sentiment towards innovation-driven industries.
The index includes both US and non-US companies.
The top ten companies (by market capitalisation as of 17 June 2025):
| Company name | Sector |
|---|---|
| Microsoft | Technology |
| NVIDIA | Technology |
| Apple | Technology |
| Amazon.com | Services |
| Alphabet Inc | Services |
| Meta | Technology |
| Broadcom | Technology |
| Taiwan Semiconductor Manufacturing Company | Technology |
| Berkshire Hathaway | Financial |
| Tesla | Auto & Truck Manufacturers |
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Choose your investment account
To start investing in the NASDAQ you’ll need to open an account, where you can buy, sell and hold investments. Our most popular investment accounts are the HL Stocks and Shares ISA and the HL Fund and Share Account.
Tax rules for ISAs can change and their benefits depend on your circumstances.
Fund and Share Account
- Free to hold shares and ETFs, up to 0.45% to hold funds
- No investment limits but tax charges could apply
- Minimum £1 to open
Stocks and Shares ISA
- Invest up to £20,000 this tax year
- Invest free from UK income and capital gains tax
- Open with £100 lump sum or £25 monthly Direct Debit