Annual Changes to the Nasdaq-100 Index
Nasdaq (Nasdaq: NDAQ) will implement its annual reconstitution of the Nasdaq-100 Index® on December 21, 2020. Six companies will join the index, including American Electric Power Company, Marvell Technology Group, and Peloton Interactive. The reconstitution process involves adding and removing companies based on market capitalization, with the new additions replacing companies like BioMarin Pharmaceutical and Take-Two Interactive. The Nasdaq-100 Index serves as a benchmark for various financial products and is crucial for market performance tracking.
- Addition of six prominent companies enhances the diversity and potential growth of the Nasdaq-100 Index.
- Reconstitution aligns with standard practices, ensuring index relevance and performance tracking.
- Removal of six companies may indicate weaker performance or market positions compared to the new additions.
NEW YORK, Dec. 11, 2020 (GLOBE NEWSWIRE) -- Nasdaq (Nasdaq: NDAQ) today announced the results of the annual reconstitution of the Nasdaq-100 Index® (Nasdaq: NDX), which will become effective prior to market open on Monday, December 21, 2020.
The following six companies will be added to the Index: American Electric Power Company, Inc. (Nasdaq: AEP), Marvell Technology Group Ltd. (Nasdaq: MRVL), Match Group, Inc. (Nasdaq: MTCH), Okta, Inc. (Nasdaq: OKTA), Peloton Interactive, Inc. (Nasdaq: PTON), Atlassian Corporation Plc (Nasdaq: TEAM).
The Nasdaq-100 Index is composed of the 100 largest non-financial companies 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 is reconstituted each year in December, timed to coincide with the quadruple witch expiration Friday of the quarter.
The Nasdaq-100 Index is the basis of the Invesco 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 Invesco QQQ Trust trade on various exchanges.
As a result of the reconstitution, the following six companies will be removed from the Index: BioMarin Pharmaceutical Inc. (Nasdaq: BMRN), Citrix Systems, Inc. (Nasdaq: CTXS), Expedia Group, Inc. (Nasdaq: EXPE), Liberty Global plc (Nasdaq: LBTYA/LBTYK), Take-Two Interactive Software, Inc. (Nasdaq: TTWO), Ulta Beauty, Inc. (Nasdaq: ULTA).
Information
For information about the six companies to be added to the Nasdaq-100 Index, please visit the following respective company websites:
American Electric Power Company, Inc. – https://www.aep.com/
Marvell Technology Group Ltd. – https://www.marvell.com/
Match Group, Inc. – https://www.mtch.com/
Okta, Inc. – https://www.okta.com/
Peloton Interactive, Inc. – https://www.onepeloton.com/
Atlassian Corporation Plc – https://www.atlassian.com/
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The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular financial product or an overall investment strategy. Neither Nasdaq, Inc. nor any of its affiliates makes any recommendation to buy or sell any financial product or any representation about the financial condition of any company or fund. Statements regarding Nasdaq’s proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.
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