July 24, 2023 (MLN): Nasdaq-100 Index (NDX) will undergo a Special Rebalance effective prior to the market opening on Monday, July 24, 2023, as Nasdaq announced earlier in the month.
As described in the published index methodology, a Special Rebalance may be conducted to address overconcentration in the index by redistributing the weights.
The Special Rebalance will not result in the removal or addition of any securities.
The top 10 Nasdaq stocks have soared so much this year that they’ve dominated the market.
They make up 62% of the whole index, which is an all-time high.
The rebalance will bring it down to 50%.
What is NASDAQ
The Nasdaq-100 index tracks the 100 largest non-financial stocks on the Nasdaq stock exchange. The index consists mainly of technology stocks, but a few other sectors are represented.
So far this year, the Nasdaq-100 has surged over 42%, far outpacing the 17% gain of the S&P 500, the stock market's typical benchmark.
However, this rally has presented a bit of an issue, causing Nasdaq to announce it would implement a "Special Rebalance" to the Nasdaq-100 index.
