The NASDAQ Next Gen 100 Index is an index designed to track the performance of the next tier of innovative, growth-oriented companies listed on the NASDAQ exchange. It includes the 100 largest non-financial companies that are just below the NASDAQ-100, which tracks the 100 largest non-financial companies on the exchange. Essentially, the NASDAQ Next Gen 100 features companies that have the potential to grow and eventually become part of the NASDAQ-100.

This index is important for investors interested in companies that are on the rise but may not yet be as large or well-established as those in the NASDAQ-100. It includes companies across various sectors, particularly technology, healthcare, and consumer industries, which tend to have strong growth potential.

The NASDAQ Next Gen 100 is rebalanced quarterly to ensure that it reflects the changing market dynamics and the growth of its constituent companies. It serves as a valuable tool for identifying future leaders in innovation and technology.

For investors, the index offers exposure to emerging companies with high growth potential, providing an opportunity to invest early in businesses that could become major players in the future, similar to those that dominate the NASDAQ-100 today.