Nasdaq 100 adds six companies to stock market index, trading to begin from this date

The list of companies in the Nasdaq 100, the technology-heavy index, will witness a change. Six new companies are being added to the index while seven companies are being removed. Nasdaq has announced the results of the annual reconstitution of the Nasdaq-100 Index (Nasdaq: NDX), which will become effective prior to the market opening on Monday, December 19, 2022.

The six companies that are to be added to the Index include CoStar Group, Inc. (Nasdaq: CSGP), Rivian Automotive, Inc. (Nasdaq: RIVN), Warner Bros. Discovery, Inc. (Nasdaq: WBD), GlobalFoundries Inc. (Nasdaq: GFS), Baker Hughes Company (Nasdaq: BKR), and Diamondback Energy, Inc. (Nasdaq: FANG).

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The Nasdaq-100 Index is composed of the 100 largest non-financial companies listed on The Nasdaq Stock Market and dates to January 1985 when it was launched along with the Nasdaq Financial-100 Index, which is comprised of the 100 largest financial stocks on Nasdaq. These indexes act as benchmarks for financial products such as options, futures, and funds.

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As a result of the reconstitution, the seven companies that will be removed from the Index includes VeriSign, Inc. (Nasdaq: VRSN), Skyworks Solutions, Inc. (Nasdaq: SWKS), Splunk Inc. (SPLK), Baidu, Inc. (Nasdaq: BIDU), Match Group, Inc. (Nasdaq: MTCH), DocuSign, Inc. (Nasdaq: DOCU), and NetEase, Inc. (Nasdaq: NTES).

The Nasdaq-100 is reconstituted each year in December, timed to coincide with the quadruple witch expiration Friday of the quarter.

The Nasdaq 100 index is dominated by technology companies such as Microsoft, Apple, Amazon, Alphabet (Google), Meta (Facebook), Intel, Cisco Systems, Comcast, Pepsico, Tesla, Nvidia, Adobe, and Paypal.

The Nasdaq-100 Index is the basis of the Invesco QQQ Trust (Nasdaq: QQQ) which aims to provide investment results that, before expenses, correspond with the Nasdaq-100 Index performance. In addition, options, futures and structured products based on the Nasdaq-100 Index and the Invesco QQQ Trust trade on various exchanges.

The Nasdaq 100 index includes the 100 largest non-financial companies by market capitalization, so purchasing QQQ ETF units gives you exposure to the index itself. The Fund and Index are rebalanced quarterly and reconstituted annually, respectively.