The NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) announced today the NASDAQ-100 Index® (NASDAQ:NDX), will undergo a Special Rebalance effective prior to market open on Monday, May 2, 2011. The Special Rebalance will not change the methodology used to calculate the NASDAQ-100 Index nor the Index Securities.
After substantial research and consideration, NASDAQ OMX decided to enact a Special Rebalance in order to bring the weights of the Index Securities closer in line with their actual market capitalizations.
"The Special Rebalance reflects our commitment to ensure the NASDAQ-100 Index remains a relevant benchmark for investors around the world who track the performance of the U.S. equity market," according to John Jacobs, Executive Vice President, NASDAQ OMX Global Index Group. "The NASDAQ-100 Index will remain an objective, transparent, rules-based index and will be comprised of the same large-cap growth companies that have a legacy of leadership and innovation."
As a result of the Special Rebalance, the underlying characteristics of the NASDAQ-100 Index will remain intact and the sector weights will remain in the same relative order and magnitude. For more information about the Special Rebalance, including the results, visit https://indexes.nasdaqomx.com/docs/NDXSpecialRebalancePresentation.pdf.
The Special Rebalance of the NASDAQ-100 Index will be enacted based on Index Securities and shares outstanding as of March 31, 2011.*
The NASDAQ-100 Index is composed of the 100 largest non-financial stocks 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 the 100 largest financial stocks on NASDAQ®. These indexes act as benchmarks for financial products such as options, futures, and funds. The NASDAQ-100 Index is re-ranked each year in December, timed to coincide with the quadruple witch expiration Friday of the quarter.
On a cumulative price return basis, the NASDAQ-100 Index has returned approximately 1771% since inception, although past performance is not indicative of future performance. The NASDAQ-100 Index is the basis of the PowerShares QQQ Trust (NASDAQ:QQQ) which aims to provide investment results that, before expenses, correspond with the NASDAQ-100 Index performance. In addition, options, futures and structured products based on the NASDAQ-100 Index and the PowerShares QQQ Trust trade on various exchanges. To learn more about the criteria for inclusion to the NASDAQ-100, visit NASDAQ-100 Index.