Nasdaq 100 to undergo special rebalance to address overconcentration of 'magnificent seven'

Concerns around concentration

clock • 1 min read

The Nasdaq 100 will adjust the weighting of its constituents to address concerns surrounding the concentration of its biggest securities.

While the index is typically reconstituted at the end of each year, with additional opportunities to rebalance each quarter, a special rebalance may take place in certain circumstances.  US stocks tumble after hawkish Fed minutes signal rate rises Nasdaq may perform a special rebalance if the current weight of its largest stock exceeds 24%, or the "collective weight" of securities whose individual current weights are over 4.5% exceed 48% when added together. Currently, Microsoft, Apple, Nvidia, Tesla, Alphabet, Meta Platforms and Amazon, which are described as the "magnificent ...

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