The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) today announced changes to the methodology of the NASDAQ-100 Index® (Nasdaq:NDX).
The Index, which acts as a benchmark for financial products, such as options, futures and funds including the PowerShares QQQ® Trust (Nasdaq:QQQ), is re-ranked annually. The next re-ranking will occur Friday, December 19, 2014.
Effective with the December 2014 evaluation, NASDAQ OMX® will modify the index methodology to allow for inclusion of all of a company's share classes that meet inclusion criteria of the NASDAQ-100 Index. The index will therefore better reflect the entire market capitalization of the 100 largest non-financial companies listed on The NASDAQ Stock Market®.
The NASDAQ-100 Index, launched in January 1985, is composed of the 100 largest non-financial stocks listed on The NASDAQ Stock Market® and acts as a benchmark for financial products such as options, futures, and funds.
This modification also emphasizes NASDAQ OMX's commitment to ensure the NASDAQ-100 Index remains one of the most widely-followed benchmarks in the world. Multiple share classes are becoming more prevalent in today's market, which was a leading factor in making this change in methodology.
For more information about the NASDAQ-100 Index, including these funds, detailed eligibility criteria, and a complete methodology, visit https://indexes.nasdaqomx.com/Index/Overview/NDX.