Action Investments Limited: Nasdaq 100 Will Rebalance To Reduce 'Magnificent Seven' Dominance

The weighting of the Nasdaq 100 index's 100 components is about to change, with the "magnificent seven" equities
SHEUNG WAN, Hong Kong - July 17, 2023 - PRLog -- Microsoft (MSFT), Apple (AAPL), Nvidia (NVDA), Tesla (TSLA), Google parent Alphabet (GOOGL), Meta Platforms (META), and (AMZN) presently accounting for more than half of the index's weight.

The majestic seven stocks sank sharply on Monday.

The Nasdaq 100 will undergo a special rebalancing before the market opens on Monday, July 24, in order to "address overconcentration in the index by redistributing weights."

On Friday, July 14, the weighting modifications will be disclosed. There will be no new or eliminated stocks. The Nasdaq 100 index consists of the top 100 non-financial Nasdaq components.

How is the Nasdaq 100 calculated?

The Nasdaq 100 index is a market capitalization-adjusted index. Market value is the most important consideration, although there is a process in place to minimize over-concentration.

Nasdaq 100 Weights Of Magnificent Seven

Company   Ticker   Weight   Market cap, in trillions (as of July 7)

Microsoft   MSFT   12.9%   $2.51

Apple   AAPL   12.5%   $2.99

Nvidia   NVDA   7.0%   $1.05

Amazon   AMZN   6.9%   $1.33

Tesla   TSLA   4.5%   $0.87

Meta Platforms   META   4.3%   $0.75

Alphabet   GOOGL   3.7%   $1.52

Alphabet   GOOG   3.7%

The Nasdaq 100's top seven corporations make up 55% of the index. This combined weighting is probably going to be reduced. Additionally, it's possible that these seven giants' relative weights may change substantially.

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Page Updated Last on: Nov 21, 2023
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