From anchor to growth tailwind
How to tilt more intentionally toward growth in your equity core: QNDX
For decades, the core of an equity portfolio was designed to serve as an anchor. Broad market exposure provided a stable foundation—reflecting the long-term trajectory of the overall market and serving as a neutral starting point for diversification. Growth strategies, by contrast, typically sat at the portfolio’s edges and were adjusted as market leadership rotated.
That framework made sense in an environment of diffuse, cyclical leadership.
But market leadership has become more concentrated—and more closely tied to earnings growth.
Today, a smaller group of companies accounts for a disproportionate share of earnings expansion, increasingly shaping both index composition and return outcomes. As a result, broad equity benchmarks have taken on a more structural growth bias.
That shift has subtly reshaped the equity core. What was once considered a neutral anchor now includes an embedded growth tailwind.
This doesn’t mean that the equity core has become explicitly growth-seeking. An anchor is still an anchor. But the distinction between “owning the market” and “tilting toward growth” isn’t as clear as it once was.
Introducing QNDX: A more intentional growth tilt for the equity core and only 10 bps
As the role of growth within the equity core has evolved, portfolio construction has become more intentional. Investors no longer need to choose between a neutral market allocation and a separate growth sleeve. Instead, they can decide how much growth exposure to put in the core itself.
The State Street® SPDR® Portfolio Nasdaq® 100 ETF (QNDX) reflects that shift.
QNDX can complement a broad market allocation, such as the S&P 500 Index, helping investors introduce a more deliberate growth tilt within their equity core. And priced at only 10 bps, it can help investors keep more of what they earn.
The role of the Nasdaq-100® in a growth-oriented core
QNDX seeks to track the Nasdaq-100 Index®, which includes 100 of the largest non-financial companies listed on the Nasdaq exchange. The Nasdaq-100 Index® provides exposure to large, established companies with global scale. In size terms, its weighted average market value is comparable to broad US large-cap benchmarks such as the S&P 500 and the Russell 1000.1 In fact, nine out of the ten largest companies by market capitalization in the US are in the index (Figure 1),2 reinforcing its role as a source of large-cap growth leadership.
Figure 1: Top 10 companies in the Nasdaq-100 Index®
| Name | Portfolio weight (%) | Market cap ($B) |
|---|---|---|
| NVIDIA | 8.16 | $5,110 |
| Apple | 7.28 | $4,583 |
| Alphabet | 6.78 | $4,585 |
| Microsoft | 5.32 | $3,345 |
| Micron | 4.8 | $1,095 |
| Amazon | 4.62 | $2,911 |
| AMD | 3.69 | $842 |
| Tesla | 3.46 | $1,637 |
| Broadcom | 3.37 | $2,115 |
| Meta | 2.97 | $1,606 |
| Average total market cap | $2,783 |
Source: Bloomberg Finance, L.P, as of May 29, 2026. Characteristics as of the date indicated. Alphabet includes both Class A and Class C stock combined to calculate the portfolio weight.
Different by design: Why structure matters for a consistent growth tilt
QNDX is designed to serve as a consistent source of growth exposure within the equity core—even as market leadership evolves.
The long-term impact of growth exposure is driven less by short-term shifts in sentiment and more by how that exposure is constructed and maintained over time.
That structural discipline is reflected in the design of the Nasdaq-100 Index®. By focusing on 100 of the largest non-financial companies listed on Nasdaq, the index naturally tilts toward segments of the market where growth has historically been concentrated—companies in technology, digital services, consumer platforms, and healthcare that often:
- Reinvest heavily in future growth through Research and Development (R&D) spend3
- Accelerate the growth of intangible assets and novel patent applications4
- Contribute a sizeable amount of revenue growth over the past decade5
Over time, this emphasis has functioned as a structural growth tailwind by maintaining exposure to companies and sectors that have driven faster growth across market cycles.6
Growth exposure compounds over time
Maintained throughout market cycles, an allocation to QNDX provides consistent growth exposure with the potential to support long-term compounding—without fundamentally altering the portfolio’s core-oriented equity framework.
Even a modest allocation to QNDX could:
- Increase exposure to growth-oriented sectors
- Raise a portfolio’s sensitivity to long-term growth themes
- Provide a more consistent growth tilt within the equity core
Integrating QNDX in a strategic equity core also can help investors avoid a common pitfall: increasing growth exposure after periods of strong performance, only to reduce it following periods of underperformance.
A structural approach also may offer an alternative to splitting equity allocations evenly between “core” and “growth.” While a 50/50 approach may appear balanced, it can dilute both exposures—rather than achieving a clear and consistent growth bias within the core.
By contrast, integrating QNDX into the equity core allows investors to maintain broad market exposure while introducing a more deliberate and durable growth tilt.
What makes a strong equity core?
- Broad exposure
- Long-term holdings
- Cost-efficient vehicles
These assets are designed to work together as a durable foundation—not compete for space within the portfolio.
Beyond the core: Additional ways investors may use QNDX
While QNDX is primarily designed to complement a broad market core, depending on portfolio objectives and risk tolerance, some investors may use the fund in different ways, as a:
- Standalone, growth-oriented core allocation, for investors comfortable with greater concentration, while other portfolio components provide diversification, income, or downside support
- Focused growth sleeve within a diversified portfolio
In each case, QNDX’s defining attribute remains the same: growth exposure that is structural, durable, and disciplined—rather than tactical or reactive.
Designed to compound—by staying in place
Staying invested in companies with scale, durability, and growth capacity is central to long-term compounding.
Equity cores are most effective when each allocation has a clearly defined role—and growth exposure works best when it is maintained over time.
With QNDX, the equity core remains anchored to provide stability and breadth, while a more deliberate growth tilt can contribute to long-term outcomes.
That growth exposure is designed to stay in place—supporting compounding over time, rather than shifting with market narratives.