Nasdaq 100 Rebalancing Coming on July 24

By
Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published July 11, 2023
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Key Takeaways

  • The Nasdaq 100 Index will undergo a “Special Rebalance” prior to the market open on Monday, July 24.
  • The rebalance could bring down the weighting of the top stocks in the index.
  • The Nasdaq said the change will not involve adding or subtracting any of the securities listed.

A shakeup is coming to the Nasdaq 100 later this month.

Nasdaq said that the index will undergo a “Special Rebalance,” which will take effect prior to the market open on July 24.

The exchange said that a rebalance can occur “to address overconcentration in the index by redistributing the weights.” It pointed out that the index is typically reconstituted each year in December, “with additional rebalancing opportunities each quarter."

Currently, the five largest stocks in the Nasdaq 100—Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), Alphabet (GOOGL), and Amazon (AMZN)—make up close to 47% of the index, and this change could bring their weight down closer to 38.5%, based on Nasdaq 100 methodology. The Nasdaq said that the rebalance will not involve adding or subtracting any of the securities listed.

The Nasdaq said the changes will be based on the index securities and shares outstanding as of July 3, and the index share announcements and pro-forma file release will be on July 14. 

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  1. Nasdaq. "Nasdaq-100 Index Special Rebalance to be Effective July 24, 2023."

  2. Nasdaq. “Nasdaq 100 Index.”

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