DENVER, April 24, 2025 -- According to the Annual Nasdaq-100® Retirement Plan Survey, nearly 80 percent 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.
The survey of 1,000 401(k) participants, reflecting the 2023 U.S. Census data for gender, age range, and region, found significant investor demand for the index in retirement plans. For forty 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 December 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.
CEO of Shelton Capital Management, Steve Rogers, said this about the index, "From 1994 through the end of 2024, the S&P 500 returned over 2,000 percent, while the Nasdaq returned over 6,000 percent. 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."
Survey Key Insights:
- Close to 80 percent of 401(k) plan participants believe it is important to include the Nasdaq-100 product in their investment options, with around 20 percent considering it extremely important.
- Nearly 45 percent of these participants already possess a product that tracks the Nasdaq-100 within their portfolios.
- 40 percent of 401(k) plan participants say a long-term, superior track record attracts them most to the Nasdaq-100.
- More than 90 percent 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 percent lower than the average of its Morningstar peer group. In addition, the fund's investor share class, NASDX, is available to retail investors.
About Shelton Capital Management
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 3/31/25, the firm manages over $5.4 billion. For more information, visit https://sheltoncap.com.
Research Methodology:
Shelton Capital Management surveyed more than 1,000 U.S. 401(k) plan participants, reflecting the 2023 U.S. Census data for gender, age range, and region. The study was conducted by Centiment between Feb. 10 and Feb. 14, 2025. Survey respondents were 18 years or older, with full-time active employment, and a median U.S. household income of $80,000 or higher. Based on the U.S. Census and U.S. Bureau of Labor Statistics, we estimate that 22.5 million U.S. adults fit this profile, with a 95% confidence level and a margin of error of ±3%.
Important Information
Investors should consider a fund's investment objectives, risks, charges, and expenses carefully before investing. The prospectus contains this and other information about the fund. To obtain a prospectus, CLICK HERE or call (800) 955-9988. A prospectus should be read carefully before investing.
It is possible to lose money by investing in a fund. Past performance does not guarantee future results and current performance may be lower or higher than the performance data quoted.
An investment in the Fund involves risk, including possible loss of principal. Portfolio holdings are subject to change and should not be considered a recommendation to buy individual securities.
The Fund invests in the largest non-financial companies that are traded on the Nasdaq Stock Market. They are currently concentrated in the technology sector which has been among the volatile sectors of the U.S. stock market. During a declining stock market, this fund would lose money. It would potentially lose more money than other large cap funds.
Nasdaq®, Nasdaq-100® and Nasdaq-100 Index® are trade or service marks of The Nasdaq Stock Market, Inc. which with its affiliates are the "Corporations") and are licensed for use by the Fund. The Fund has not been passed on by the Corporations as to their legality or suitability. The Fund is not issued, endorsed, sold, or promoted by the Corporations. The Corporations make no warranties and bear no liability with respect to the Fund. Diversification does not assure a profit or protect against lost in a declining market. For a list of the top 10 holdings for NASDX, visit www.nasdx100.com. It is not possible for individuals to invest directly in an index.
Performance figures for an index do not reflect deductions for sales charges, commissions, expenses or taxes.
Shelton Funds are distributed by RFS Partners, a member of FINRA and affiliate of Shelton Capital Management.
INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.
The reader should not assume that investment decisions identified and discussed were or will be profitable. Specific investment advice references provided herein are for illustrative purposes only and are not necessarily representative of investments that will be made in the future.
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