2018 NASDAQ Return

Written by:
PK

The 2018 NASDAQ return was -4.36% calculated from opening and closing prices. Using a superior calculation factoring in dividend reinvestment, the NASDAQ returned -3.33% in 2018.

The 2018 NASDAQ Return: Reinvest Your Dividends

The above numbers assume you bought the NASDAQ index at the open on January 2nd, 2018 and sold at the close on December 31, 2018. The numbers for buying at the December 29, 2017 closing price are -3.88% and -2.84%, respectively.

Here are the numbers for the 2018 NASDAQ price returns:

Price FromPriceDec 31 CloseGain/Loss
Jan 2 Open6937.656635.28-4.36%
Dec 29 Close6903.396635.28-3.88%

Reinvesting dividends on the NASDAQ in 2018 led to returns of:

Dividend Reinvested FromPriceDec 31 CloseGain/Loss
Jan 2 Open7975.237709.91-3.33%
Dec 29 Close7935.297709.91-2.84%

The NASDAQ has traditionally been a technology-heavy index. Technology companies tend towards a growth bias and often pay out fewer dividends than other economic sectors. As a result, of the most followed US indices, the NASDAQ throws off the fewest dividends.

That caveat aside, NASDAQ firms do pay dividends. They're not insignificant - 1.04% is an additional 51.2% over a average 40 year career. (That's also a reminder to minimize the fees you pay. Even small fees add up).

Dividends matter. Even on the NASDAQ.

Source on the 2018 NASDAQ Return Calculations

This data comes from NASDAQ Indexes. They also maintain many specialized indexes - biotechnology, big companies, and others.

We can't match resources with the lists in the 2018 S&P 500 Return and 2018 Dow Jones Return posts for the NASDAQ.

We have one unique post on offer though. In 2014 we estimated how buying the peak of the Tech bubble in 1999-2000 would have returned:

The 2018 NASDAQ Return

Marketwatch can get you both the NASDAQ price and total return indices for easy graphing (and historical comparisons) . Here's how it trended in 2018:

2018 NASDAQ return with dividend reinvested or price returns
2018 NASDAQ Return (Blue - dividend reinvested, black - price return)

Regardless of your choice of starting date, it was a tough year on the NASDAQ. Some individual stocks - including major names such as the FANGs of Facebook, Amazon, Netflix, and Google - were down well more than typical.

Also, remember: your mileage may vary. Slippage, dividend timing, fees, purchase timing, and other factors affect an investor's final numbers.

See NASDAQ returns in other years:

What do you see the NASDAQ doing in 2019? Want to predict a return?

      

PK

PK started DQYDJ in 2009 to research and discuss finance and investing and help answer financial questions. He's expanded DQYDJ to build visualizations, calculators, and interactive tools.

PK lives in New Hampshire with his wife, kids, and dog.

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