Nasdaq-100 Index Gets Special Rebalance Treatment This Month

LiquidityWizard · 2025-12-31T09:27:11+00:00

The Nasdaq-100 Index will undergo a Special Rebalance on July 24, 2023, redistributing weights among existing securities without adding or removing any. This adjustment aims to reduce overconcentration and impacts various financial products linked to the index.

LiquidityWizard

2025-12-31 09:27:11

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Nasdaq just confirmed a significant move for the Nasdaq-100 Index (NDX): a Special Rebalance kicks in before market open on July 24, 2023. Here’s what that means for investors tracking this benchmark.

What’s Actually Happening?

The Nasdaq-100 Index handles 100 of the largest non-financial companies listed on Nasdaq—both domestic and international players. The index normally gets tweaked annually in December with quarterly adjustments sprinkled throughout the year. But this Special Rebalance is different: it’s designed to dial back overconcentration by redistributing weights across the index holdings.

Key detail: no securities are getting added or removed. This is purely about reshuffling the portfolio weightings to maintain balance.

The Timeline You Need to Know

The rebalance calculations are based on index securities and outstanding shares as of July 3, 2023. The official share announcements and pro-forma file? Those drop on July 14, 2023—exactly 10 days before the new weights take effect.

Why It Matters

The Nasdaq-100 Index serves as the foundation for countless financial products globally: ETFs, mutual funds, futures, and options. When the index rebalances, ripple effects flow through all these linked products. Portfolio managers tracking this benchmark will need to adjust their positions accordingly.

This Special Rebalance represents Nasdaq’s systematic approach to keeping the index healthy and preventing any single sector or stock from becoming too dominant. For traders and long-term investors alike, staying informed about these structural changes helps clarify upcoming market movements.

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