Oracle’s Weighting Will Double in Nasdaq 100

The Nasdaq 100 Index ($QQQ) is one of the most important indexes for tech investors. The index represents the 100 largest non-financial stocks on the Nasdaq. One of the problems with the Nasdaq 100 is that Apple ($AAPL), which I believe is some sort of fruit company, currently represents more than one-fifth of the entire index.

Such a heavy weighting isn’t good for any index and it’s greatly disproportionate to Apple’s market value. As a result, the Nasdaq has announced that it’s rebalancing the Nasdaq 100.

This rebalancing will shift Apple’s weighting from 20.49% to 12.33%. This will have a big impact on the market since tons of ETFs own Apple, and the $QQQ ETF is one of the most popular investments on Wall Street.

While Apple will be a big loser in the rebalancing, one of the big winners will be our very own Oracle ($ORCL). The Nasdaq 100’s weighting for Oracle will more than double from 3.3% to 6.7%. You can see the full details of the rebalancing here.

Posted by on April 5th, 2011 at 10:27 am


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