2021 NASDAQ Return

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The NASDAQ returned 20.73% in 2021. Using a better calculation, which includes dividend reinvestment, the NASDAQ returned 22.17%.

The 2021 NASDAQ Return: Even in Tech You Should Reinvest

The above returns assumed you bought the NASDAQ index at the open on January 4th, 2021 and sold at close on December 31, 2021. That's the maximum span you could have invested in the NASDAQ while all-in the year 2021.

Prefer a "full year" of history? If you bought the closing price on December 31, 2020 and sold the closing price on December 31, 2021, your returns were 21.39% and 22.18%, respectively.

2021 NASDAQ Index Price Return

Price Based On2021 BeginDec 31 CloseReturn
Jan 4 Open12,958.5215,644.9720.731%
Dec 31 Close12,888.2815,644.9721.389%

NASDAQ Reinvested Dividend Return in 2021

Price Based On2021 BeginDec 31 CloseReturn
Jan 4 Open15,274.1818,660.0722.167%
Dec 31 Close15,272.9718,660.0722.177%

As I say annually, the exact timing doesn't matter that much. As the old joke goes, time in the market beats timing the market.

However, even investing in a tech-laden index like the NASDAQ, dividends matter. Even if you didn't reinvest the dividend checks you received, I highly doubt you discarded them - you have to account for the dividend performance in some way.

Source on the 2021 NASDAQ Return Calculations

The NASDAQ Index is owned and computed by NASDAQ Indexes. There you'll find the index level and total return data. Find NASDAQ total return data here or on investing.com.

See NASDAQ returns in other years:

Any NASDAQ predictions for 2021?



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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