1Année·

Oh Oh... I just read the news that the NASDQ 100 is to be rebalanced because the "Magnificent Seven", ie. $MSFT (-0,26 %), $AAPL (-0,51 %), $NVDA (-0,69 %), $AMZN (-0,69 %), $TSLA (-0,19 %), $META (-0,59 %) and $GOOGL (-0,4 %) currently account for over 50% of the NASDAQ 100.


The 7 largest companies in the NASDAQ 100 have had really impressive earnings this year, resulting in overrepresentation in the index. To adjust this, a special rebalancing will be made, which has only happened twice in the history of the NASDAQ 100.


The rebalancing is scheduled to take place on July 24. It will likely result in the weighting of the 5 largest companies by market capitalization (i.e. Microsoft, Apple, NVIDIA, Google, Amazon and) being reduced from 46.7% to 38.5%.


I invested in the NASDAQ 100 late last year and have been very pleased with its performance so far. Since the beginning of the year: +36%! 📈🎉 However, I must admit that I am a bit worried that the upcoming rebalancing might affect my performance. On the other hand, of course I understand why the index should be reweighted. Currently, the first 7 positions in the index already account for 51.56 percent. That is quite a statement.


Have you invested in the $XNAS (-0,4 %) and what do you think about the planned rebalancing of the index? Do you think that this will influence the performance of the index?

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24 Commentaires

Congratulations on the performance, I invested in the NASDAQ 100 3x Daily Leveraged late last year & am up 162%.
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@el_tondero Top performance! Have you already sold or do you want to hold longer?
@EarlybirdJulian last longer. The Nasdaq will continue to rise for the next few decades.
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@el_tondero Congratulations on the great time to buy. I bought too high and am still 20% down.
@TopperHarley was also really coincidence that I stumbled upon it. 52 week low is at 45 € & I'm at 46 pure :D
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@el_tondero hope you have taken proper coal in hand 🙃
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I also have exactly this ETF. In Austria via flatex without order fee, if you invest over 1000 euros. Ansosten I would have a Ausschütter. Since it is only a few %, I do not believe in a strong performance loss. Markus Koch clarifies just live in his Opening Bell.
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1Année
I'm curious whether the top 7 on 24.04. something Dippen if they are reduced in the index.
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@six as soon as it was decided, they would have already dipped.
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@NiMe ok too bad missed. Microsoft songs just fully dipped up 😢
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I think that the rebalancing should be seen rather positively. It reduces the cluster risk in an already small ETF (here small = few stocks).
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But why are positions reduced where it is clear that they will continue to rise in the future?
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@VincP3 & because it is additional nonsense to set up an ETF that wants to be broadly diversified, which is then predominantly composed of 7 stocks :D
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Actually, an equally weighted nasdaq eft should benefit from such a conversion?!
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1Année
@Moneymoney I had the same thought. But I haven't found an acceptable one in Germany.
@Epi there is also not - only if you have a foreign account. But on the equally weighted s&p it should also have an effect - just with little force. I have already bought 2 months ago times and now a little topped up
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I stock a NASDAQ 100 ETF precisely because of the weighting of the top 10. Too bad they're adjusting that.
@Salamistar Then it would make more sense for you to buy the top 10 individually... you have not quite understood the sense of an ETF that tracks indices, at least it seems so.
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Maybe it's a bit too simple, but I see it like this: The index takes profits and invests them in stocks that haven't run so hot yet. One or the other fund manager would probably do the same. I think it's actually quite good.
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@AdriInvests Sounds really not bad, now that you say it 😅
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I am 3x leveraged in the Nasdaq 100, currently in the red and find it incalculable when the position sizes are suddenly changed. Nevertheless, I do not expect too strong effects, since the changes are known and priced into the index.
Unfortunately only what I had at the time x)
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1Année
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@Mauromar You're right about that. The Magnificent Seven are still clearly overweights. I'm looking forward to seeing how they perform in the future!
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