What's New with the Nasdaq-100?

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.

Additions Ticker Company Name Net Weight Change % ICB Industry
1 WDAY Workday, Inc. 0.191 Technology
2 SNPS Synopsis, Inc. 0.178 Technology
3 TTWO Take-Two Interactive Software 0.171 Consumer Goods
4 ASML ASML Holding NY Reg 0.169 Technology
5 CDNS Cadence Design Systems, Inc. 0.167 Technology

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.

Additions Ticker Company Name ICB Industry
1 ALGN Align Technology, Inc. Health Care
2 MELI MercadoLibre, Inc. Consumer Services
3 WYNN Wynn Resorts, Ltd. Consumer Services
4 IDXX IDEXX Laboratories, Inc. Health Care
5 JBHT J.B. Hunt Transport Services, Inc. Industrials

Deletions Ticker Company Name ICB Industry
1 MAT Mattel, Inc. Consumer Goods
2 YHOO Yahoo! Inc. Technology
3 TRIP TripAdvisor, Inc. Consumer Services
4 SBAC SBA Communications Corp. Financials
5 NXPI NXP Semiconductors NV Technology

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 *
Year Nasdaq-100 S&P 500 Nasdaq-100 S&P 500
2008 -41.89% -38.49% 42.30% 40.97%
2009 53.54% 23.45% 26.52% 27.29%
2010 19.22% 12.78% 19.48% 18.05%
2011 2.70% 0.00% 23.80% 23.27%
2012 16.82% 13.41% 15.47% 12.77%
2013 34.99% 29.60% 12.36% 11.07%
2014 17.94% 11.39% 14.06% 11.37%
2015 8.43% -0.73% 17.86% 15.49%
2016 5.89% 9.54% 16.15% 13.09%
2017 31.52% 19.42% 10.28% 6.69%

What's New with the Nasdaq-100?
What's New with the Nasdaq-100?

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.

Nasdaq® is a registered trademark of Nasdaq, Inc. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. Neither Nasdaq, Inc. nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding Nasdaq-listed companies or Nasdaq proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.