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Nasdaq 100 Index Rebalancing


QQQ Weekly Chart
QQQ Weekly Chart

NQ Weekly Chart
NQ Weekly Chart

Nasdaq 100 Index Rebalancing

Currently, the top 7 stocks in the NDX account for 55% of the index's weighting. This indicates that these 7 stocks have a significant influence on the performance of the index.

  1. The adjustment aims to address this concentration of weight in the top stocks. The goal is to reduce the dominance of the largest stocks and create a more balanced representation across the index.

  2. As part of the adjustment, the weightings of the large stocks will be cut. The objective is to ensure that the top 5 stocks do not account for more than 38.5% of the index's weighting.

  3. Additionally, stocks outside the top 5 will have their weightings reduced to either 4.4% of the total index weighting or to match the weighting of the #5 stock, whichever is lower. This means that the weightings of stocks outside the top 5 will be brought closer to the weight of the fifth-largest stock.

  4. Some of the big tech stocks are Apple stock, Meta Face Book Stock, Nvidia Stock, Amazon Stock.

The full details of the adjustment, including which specific stocks will be affected and the revised weightings, will be revealed on July 14.

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