Experience better stock trading in the R StocksTrader terminal!<\/span><\/span><\/p>\n 2021 returns on stocks of companies added to the index:<\/p>\n\n\n\n For 2021, the return on investment in these companies reached 7%, while in the NASDAQ-100 it was 27%.<\/p>\n\n\n\n Yield for 2022 on stocks of companies added to the index:<\/p>\n\n\n\n The cumulative return for 2022 of the above corporations was -46%, while the index return reached -31%.<\/p>\n\n\n\n From 2018 to 2021 inclusive, a quantitative easing<\/a> programme was in place during which the US interest rate<\/a> was lowered from 2.5% to 0.25%. This was a favourable business environment that, even during the COVID-19 pandemic, allowed stocks of firms added to the index to show positive returns.<\/p>\n\n\n\n However, in 2022, the Federal Reserve System (FED) began to raise the interest rate and launched a quantitative tightening<\/a> programme. As it turned out, these decisions had a more negative impact on stock prices than the pandemic.<\/p>\n\n\n\n Of the periods discussed above, only in 2019 were the returns on investments in the newcomers to the index higher than the ones on the NASDAQ-100. In addition, the level of return on each of the stocks listed was not correlated with the index or the other stocks on the list.<\/p>\n\n\n\n It can be concluded that the inclusion of companies in the index does not have a strong impact on their stock price. Based on data from the last four years, it can be assumed that the Fed policy has been a key factor affecting stock prices.<\/p>\n\n\n\n![\"partner-programme\"](\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2023\/09\/rst2-mobile.png\")
\n <\/div>\n Start Trading<\/a>\n <\/div>\n ![\"partner-programme\"](\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2023\/09\/rst2-desktop.png\")
\n <\/div>\n <\/div>\n\n\n\n<\/span>NASDAQ-100 rebalancing in 2020<\/span><\/h3>\n\n\n\n
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<\/span><\/a>NASDAQ-100 rebalancing in 2021<\/span><\/h3>\n\n\n\n
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<\/span><\/a>Conclusion<\/span><\/h2>\n\n\n\n
he NASDAQ-100 (NAS100) is a US stock index<\/a> comprising the 100 largest companies by capitalisation, representing various sectors of the economy other than finance. Its history began in 1985. The index is broken down as follows: the technology sector accounts for 51.2%, the communications services sector for 15.2%, the consumer sector for 13.5%, and all the other sectors do not exceed 10%.<\/p>\n\n\n\n The index is rebalanced annually in December. If at any point an issuer becomes ineligible – for example, in case of a merger or acquisition, delisting from the NASDAQ, or bankruptcy – its stock is removed from the index and replaced with another company from the waiting list without waiting until the end of the year.<\/p>\n\n\n\n The NASDAQ-100 comprised 101 firms in 2022 with Constellation Energy Corp (NASDAQ: CEG) splitting from Exelon Corporation (NASDAQ: EXC) and remaining on the index. Seven issuers – VeriSign Inc. (NASDAQ: VRSN), Skyworks Solutions Inc. (NASDAQ: SWKS), Splunk Inc. (NASDAQ: SPLK), Baidu Inc. (NASDAQ: BIDU), Match Group Inc. (NASDAQ: MTCH), DocuSign Inc. (NASDAQ: DOCU) and NetEase Inc. (NASDAQ: NTES) – left the list on 19 December.<\/p>\n\n\n\n They were replaced by six companies – 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).<\/p>\n\n\n\n When new companies are added to the index, index funds are obliged to buy their stocks. If we look at NASDAQ-100 newcomer stock charts, we can see an increase in the trading volume of their stocks during the rebalancing period.<\/p>\n\n\n\n 2019 returns on stocks added to the index companies:<\/p>\n\n\n\n The return on investment in all six companies for 2019 is 55%, which is 10% higher than the return on the NASDAQ-100 index over the same period.<\/p>\n\n\n\n 2020 returns on stocks of companies added to the index:<\/p>\n\n\n\n For 2020, the return on investment in these companies reached 35%, while in the NASDAQ-100 it was 45%.<\/p>\n\n\n\n![\"Breakdown](\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/12\/QQQ.png\")
<\/a><\/span><\/a>Criteria for selecting companies<\/span><\/h3>\n\n\n\n
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<\/span>NASDAQ-100 update in 2022<\/span><\/h2>\n\n\n\n
<\/span><\/a>Market participants’ reaction to the rebalancing of the NASDAQ-100<\/span><\/h2>\n\n\n\n
![\"Fortinet,](\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2022\/12\/2021.png\")
<\/a><\/span><\/a>NASDAQ-100 rebalancing in 2018<\/span><\/h3>\n\n\n\n
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<\/span><\/a>NASDAQ-100 rebalancing in 2019<\/span><\/h3>\n\n\n\n
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