Nasdaq 100 to undergo Special Rebalance to curb ‘magnificent seven’ dominance

Nasdaq announced that the Nasdaq-100 Index (NDX) will undergo a Special Rebalance effective prior to the market open on Monday, July 24. 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 Nasdaq-100 Index includes 100 of the largest Nasdaq-listed domestic and international non-financial companies, and serves as the benchmark for numerous financial products around the world, including ETFs, mutual funds, futures, and options. The index is typically reconstituted annually in December, with additional rebalancing opportunities each quarter. The Special Rebalance of the index will be enacted based on the index securities and shares outstanding as of July 3, and the index share announcements and pro-forma file release will take place July 14. The Fly notes that the rebalancing of the Nasdaq 100 index is set to adjust the weighting of its 100 components. The rebalancing has come to pass because the “magnificent seven” stocks: Microsoft (MSFT), Apple (AAPL), Nvidia (NVDA), Tesla (TSLA), Google parent Alphabet (GOOGL), Meta Platforms (META) and Amazon.com (AMZN) currently accounting for more than half the index’s weight.