The Nasdaq-100 index is getting a makeover | CNN Business

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The Nasdaq-100 index is getting a fresh look

What happened: The index comprises 100 of the largest non-financial companies listed on the Nasdaq. The popular Invesco QQQ exchange-traded fund tracks the index. Seven companies listed in the Nasdaq-100 accounted for roughly 51% of the index as of June 3, according to a note by Louis Navellier, chairman of Navellier & Associates. The Nasdaq is looking to fix that problem – without changing any of the stocks in the index.

The Nasdaq can rebalance the index outside of its normal quarterly schedule so that issuers with individual weightings that exceed 4.5% don’t surpass a combined 48% of the entire index, per the company’s methodology. Special rebalances of the Nasdaq-100 have happened before in 1998 and 2011, according to Cameron Lilja, vice president and global head of index product and operations at Nasdaq.

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