What is the Nasdaq-100 equal weighted Index’
The Nasdaq-100 Index, an equal weighted version of the Nasdaq-100 index. Each of the securities in market capitalization of the index initially weighing in at 1 percent. The Nasdaq-100 equal weighted offers an alternative to market capitalization weighting, which is the more common method index funds weighting. Equal weighting means that small companies index to contribute as much as its larger companies. The Nasdaq-100 index is rebalanced quarterly and reconstituted annually in December. There are several etfs that track the movement of the index.
The breaking down ‘of the Nasdaq-100 equal weighted Index’
The Nasdaq 100 includes investments in various sectors, except financial services. A large part of the index covers the technology sector, which accounts for 54% of the weight of the index. The second largest sector of consumer services provided by companies such as chain restaurants, retail and tourist services. These reserves represent almost a quarter of the cap weight thanks to the continuous growth of retail giant Amazon (weekly). Rounding index, healthcare and telecommunications. The diversity of the companies included in the Nasdaq 100, which contributed to the high level of profit over the last two decades. The index is based on the modified methods of capitalization, and value of the individual weights by market capitalization restrictions, to limit the impact of the largest companies. For this, Nasdaq reviews the composition of the index each quarter and setting the weights if the distribution terms are not met.
The criteria for eligibility
For inclusion in the Nasdaq-100 index security must be exclusively listed on Nasdaq. This may include common stocks, ordinary shares, American Depositary receipts ADRs and tracking stocks. In fact, 27 countries are tied to companies represented in the index. Other bases for inclusion include market capitalization and liquidity. While there are no minimum requirements for capitalization, the index constitutes the TOP 100 largest companies listed on the Nasdaq.
The Nasdaq 100 traded through the European qqq trust designed to track the performance of the 100 largest companies on Nasdaq. Each company in the trust must be a member of the Nasdaq 100 and be listed on the exchange extension for at least two years. Some exceptions are made for new public companies which have extremely high market capitalization. In addition, the stock must have average daily trading volume of 200,000 publicly and income statement quarterly and annually. With bankruptcy, excluded from the European qqq trust. On occasion, the trust may not fully match the index, but the main purpose of oil production in the US remains to track the price and yield of the underlying index.