Nasdaq 100 rebalancing of the index shows that six new companies have been added and six stocks have been removed from the index. The Nasdaq 100 annual reconstitution with the modified list of stocks takes effect today. The annual reconstitution of the Nasdaq-100 Index will become effective before market opening on Monday, December 18, 2023.
The six companies to be added to the Index include CDW Corporation (Nasdaq: CDW), Coca-Cola Europacific Partners plc (Nasdaq: CCEP), DoorDash, Inc. (Nasdaq: DASH), MongoDB, Inc. (Nasdaq: MDB), Roper Technologies, Inc. (Nasdaq: ROP), and Splunk Inc. (Nasdaq: SPLK).
The Nasdaq 100 index has been a star performer in 2023 after rising by over 52% in 2023 so far.
Presently, almost half of the index’s weight is accounted for by the Big Tech companies, which include Amazon.com (AMZN), Apple, Netflix, Google parent Alphabet (GOOGL), Microsoft (MSFT), and Meta Platforms (META). The Magnificent Seven Stocks, which surged in 2023, are quickly gaining popularity among investors. The “Magnificient 7” stocks include Tesla, Alphabet, Apple, Microsoft, Nvidia, Amazon, Meta, and Tesla.
Approximately 90% of the gains on Wall Street’s S&P 500 this year have come from the “Magnificent Seven” stocks. The top seven Nasdaq 100 corporations make up half of the index. The ‘Magnificent 7’ group has a higher weighting in the MSCI World Index than all of the stocks in the UK, China, France and Japan combined.
The Nasdaq Stock Exchange has previously declared that a Special Rebalance would be implemented for the Nasdaq-100 Index ahead of Monday, July 24, 2023, market open. The index methodology called for a Special Rebalance to be carried out to redistribute the weights and address overconcentration in the index. There won’t be any securities added or removed as a result of the Special Rebalance.
The Nasdaq-100 Index is composed of 100 of the largest non-financial companies listed on The Nasdaq Stock Market and dates to January 1985 when it was launched along with the Nasdaq Financial-100 Index, which is comprised of 100 of the largest financial stocks on the Nasdaq. The Nasdaq-100 is reconstituted each year in December, timed to coincide with the quadruple witch expiration on Friday of the quarter.