Nasdaq, from July 24, less weight to Microsoft, Apple and Meta
The US technology index Nasdaq 100 announced a first-of-its-kind rebalancing that will take place before the market opens on Monday, July 24, 2023. The reason for the special rebalancing is simple: the top 7 stocks have risen so much that they have reached the weight limit set by the index for each title.
Over 50% of the index is made up of only Microsoft, Apple, Google, NVIDIA, Amazon, Tesla e Meta. The new rebalancing will not remove any existing stocks or add new ones, it will only help redistribute the weight of stocks to avoid excessive concentration and reduce risk.
The direct consequence of the just announced Nasdaq rebalancing is that mutual funds and ETFs have to sell part of their existing top 7 stocks and increase their positions in the remaining 93 stocks.