Investing

NASDAQ 100 Rebalance Explained: Picking Winners & Losers (AAPL, QQQ, CSCO, DELL, INTC, MSFT, ORCL)

The NASDAQ 100 has figured out a way to change its dependence upon and its dominance by Apple Inc. (NASDAQ: AAPL).  A good old-fashioned reweighting is that plan.  The NASDAQ confirmed this morning that it will be rebalancing the NASDAQ 100 Index.  This will not have exact price changes in the PowerShares QQQ (NASDAQ: QQQ).  While there are many changes in the weightings (about 80 lower), there are a few key standout winners at the expense of Apple and a few others.

Apple Inc. (NASDAQ: AAPL) is one of the losers.  Its previous weighting was about 20% but its new weighting will drop to about 12% of the total index.  As far as the shares per index security, the chart shows that the current shares of 2,413,718,358 will drop to 921,278,012. That is 20.49% now down to 12.33% ahead.

Cisco Systems, Inc. (NASDAQ: CSCO) will rise in the rebalance from 3,709,783,134 shares to 5,527,994,846. That is 1.56% now to 3.66% ahead.

Dell Inc. (NASDAQ: DELL) will rise from 1,333,907,561 to 1,930,291,385. That is 0.47% weighting today to 1.08% ahead.

Intel Corporation (NASDAQ: INTC) will rise from 3,609,792,537 shares to 5,488,000,000. That is 1.75% weighting now to 4.2% ahead.

Microsoft Corporation (NASDAQ: MSFT) will rise from 5,431,937,678 shares to 8,402,382,031 shares.  That is a rise from 3.41% today to 8.32% ahead.

Oracle Corporation (NASDAQ: ORCL) will rise from 3,957,187,111 shares to 5,052,420,000. That is from 3.32% today to 6.68% ahead.

  • This is impacting the shares in pre-market trading:  AAPL -1.5%; CSCO +1.0%; DELL +0.5%; INTC +0.55%; MSFT +1.4%; ORCL +1.05%.

That share count above was listed by NASDAQ and is a theoretical change per index security, but the fixed move at the rebalance that will stand out the most is the real weighting.  The full rebalance data can be seen here with more detailed explanation.

JON C. OGG

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