造成这一局面的主要原因是，As of the close on Monday, eight companies in the NASDAQ 100 Index had individual stock weights exceeding 4.5%, with a total weight approaching 52%, making the index overly "top-heavy". According to relevant rules, the total weight may need to be reduced to 40%. A spokesperson for NASDAQ stated that this weight adjustment will be carried out simultaneously with the annual routine balancing to be conducted on Friday.
Since July last year, $NASDAQ 100 Index (.NDX.US)$ After making adjustments to the overly weighted technology giants for just one year, the index may soon face a new round of weight adjustments.
According to Bloomberg, as of the close on Monday, there are eight companies in the NASDAQ 100 Index (including $NVIDIA (NVDA.US)$、$Amazon (AMZN.US)$、$Tesla (TSLA.US)$The weight of stocks such as these exceeds 4.5%, with the total weight approaching 52%, making the Nasdaq Index overly "top-heavy". According to Nasdaq's rules, the total weight may need to be reduced to 40%.
The main reason for this situation is the significant rise in stock prices of technology giants like Apple,$Microsoft (MSFT.US)$which rose dramatically over the past year, with an average increase of 79%, four times higher than the average increase of other stocks in the Index, while the active AI concept is the main driving force behind the rise in these companies' stock prices.
The NASDAQ 100 Index has rules to limit the weight of individual constituent stocks, one of which triggers an adjustment mechanism when the total of all individual stocks with weights over 4.5% reaches or exceeds 48%. In July of last year, the index reduced the weights of seven companies due to this rule. Recently, due to$Broadcom (AVGO.US)$The company's stock price surged, causing its weight to surpass the 4.5% threshold, which triggered this mechanism again.
A Nasdaq spokesman stated that this weight adjustment will occur simultaneously with the annual rebalancing scheduled for Friday. This means$Invesco QQQ Trust (QQQ.US)$Index tracking funds must adjust their holdings. Including$MicroStrategy (MSTR.US)$、$Palantir (PLTR.US)$and$Axon Enterprise (AXON.US)$The new members that will soon join, as well as those who will be replaced, $Illumina (ILMN.US)$ 、$Super Micro Computer (SMCI.US)$and$Moderna (MRNA.US)$will be affected.
Todd Sohn, an ETF strategist at Strategas Securities, stated:
"The market seems intent on breaking decades-old Index rules and forcing Index providers to rethink how to handle the multi-trillion dollar Market Cap world. After experiencing a brief adjustment over the summer, the dominance of large stock giants has once again emerged."
The phenomenon of tech giants continuing to dominate the market has posed challenges for Index providers, forcing some companies to reconsider the rules to adhere to long-standing diversification standards that are meant to protect investors from concentrated portfolios.
Notably, earlier this year, FTSE Russell and S&P$Dow Jones Industrial Average (.DJI.US)$both adjusted the rules of their respective indices to limit the influence of large stocks.
Analysts believe that Nasdaq's decision to turn its former special rebalancing into regular rebalancing once again highlights the role of human factors in passive investing and creates opportunities for professional hedge funds to profit.
Editor/rice