Nasdaq 100 Rebalancing: Apple and Nvidia Poised for Gains with Increased Weight?

Insights – Following the Nasdaq 100 rebalancing, Apple and Nvidia are expected to attract additional fund inflows.  

On December 23, the Nasdaq 100 Index underwent a rebalancing adjustment.  

The weightings of Tesla, Meta, and Broadcom in the index were reduced, while Apple, Nvidia, Microsoft, Amazon, and Alphabet saw their weightings increase.  

Key changes include: 

Tesla (TSLA): Reduced from 4.9% to 3.9%  

Broadcom (AVGO): Reduced from 6.3% to 4.4%  

Meta (META): Reduced from 4.9% to 3.3%  

Apple (AAPL): Increased from 9.2% to 9.8%  

Nvidia (NVDA): Increased from 7.9% to 8.4%  

Microsoft (MSFT), Amazon (AMZN), and Alphabet (GOOG):Increases of less than 0.5%  

The weightings of Nasdaq 100 components are typically determined by market capitalization. However, when the combined weighting of constituents exceeding 4.5% surpasses or equals 48%, the index triggers a rebalancing.  

This rebalancing was driven by Broadcom’s significant stock price surge, which pushed its weighting above the 4.5% threshold. Year-to-date, Broadcom has risen 116%, Meta is up 74%, and Tesla has gained 73%.  

Since most ETFs track the Nasdaq 100 Index, Apple, Nvidia, Microsoft, Amazon, and Alphabet are likely to attract increased fund inflows, while Tesla, Meta, and Broadcom could face outflows.  

As of Dec 23, the top 10 stocks by market capitalization in the Nasdaq 100 Index are: Apple, Nvidia, Microsoft, Alphabet, Amazon, Meta, Tesla, Broadcom, Costco, and Netflix.  

Source: TradingView; Top 10 Stocks by Market Cap in the Nasdaq 100 Index