It’s a coveted spot for the top securities listed on the Nasdaq Stock Exchange: the Nasdaq-100. The index includes 100 of the largest domestic and international non-financial companies listed on the exchange (based on market capitalization). With a market cap of more than $7.3T as of year-end 2017, the Nasdaq-100 has become one of the world’s preeminent large-cap growth indexes.
The Nasdaq-100 is rebalanced annually and goes into effect after the close of trading on the third Friday of each December. This year, after the close of trading on Friday, December 15, 2017, there were five security additions and six security deletions. The largest of the additions was Workday, Inc. (NASDAQ: WDAY). The largest of the deletions was Norwegian Cruise Line Holdings (NASDAQ: NCLH). For all security additions and deletions associated with the 2017 annual evaluation, see below.
|Deletions||Ticker||Company Name||Net Weight Change %||ICB Industry|
|1||NCLH||Norwegian Cruise Line Holdings||0.166||Consumer Services|
|2||VIAB||Viacom Inc CL B||0.144||Consumer Services|
|3||AKAM||Akamai Technologies, Inc.||0.134||Technology|
|4||TSCO||Tractor Supply Co.||0.117||Consumer Services|
|5||DISCK||Discovery Communications Inc. Class C||0.058||Consumer Services|
|6||DISCA||Discovery Communications Inc. Class A||0.044||Consumer Services|
Outside of the annual evaluation, the Nasdaq-100 may have periodic replacements throughout the year in the index due to corporate actions. In 2017, there were five such incidences that occurred over the course of the year. The periodic additions and replacements are listed below.
2017 was a stellar year for the Nasdaq-100 with a 31.52% annual price return. The Nasdaq-100 has outperformed the S&P 500 in eight out of the past ten years with the exception of 2008 and 2016 with a strong average annual excess return of 6.88% over the S&P 500 for this ten year period.
Price Return *
Annualized Volatility *
Volatility is slightly higher in the Nasdaq-100 vs the S&P 500 with figures for calendar year 2017 standing at 10.28% (for the Nasdaq-100) vs. 6.69% (for the S&P 500). In addition to the strong price appreciation in 2017, the Nasdaq-100 dividend yield as of year-end 2017 was 1.12%*.
*Price return, annualized volatility and yield calculated with data through the end of December 2017.
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