The NASDAQ-100 Index to Undergo a Special Rebalance
New York, NY, April 5, 2011 - The NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) announced today the NASDAQ-100 Index® (NASDAQ:NDX), will undergo a Special Rebalance effective prior to market open on Monday, May 2, 2011. The Special Rebalance will not change the methodology used to calculate the NASDAQ-100 Index nor the Index Securities.
After substantial research and consideration, NASDAQ OMX decided to enact a Special Rebalance in order to bring the weights of the Index Securities closer in line with their actual market capitalizations.
"The Special Rebalance reflects our commitment to ensure the NASDAQ-100 Index remains a relevant benchmark for investors around the world who track the performance of the U.S. equity market," according to John Jacobs, Executive Vice President, NASDAQ OMX Global Index Group. "The NASDAQ-100 Index will remain an objective, transparent, rules-based index and will be comprised of the same large-cap growth companies that have a legacy of leadership and innovation."
As a result of the Special Rebalance, the underlying characteristics of the NASDAQ-100 Index will remain intact and the sector weights will remain in the same relative order and magnitude. For more information about the Special Rebalance, including the results, visit https://indexes.nasdaqomx.com/docs/NDXSpecialRebalancePresentation.pdf.
The Special Rebalance of the NASDAQ-100 Index will be enacted based on Index Securities and shares outstanding as of March 31, 2011.*
The NASDAQ-100 Index is composed of the 100 largest non-financial stocks listed on The NASDAQ Stock Market® and dates to January 1985 when it was launched along with the NASDAQ Financial-100 Index®, which is comprised of the 100 largest financial stocks on NASDAQ®. These indexes act as benchmarks for financial products such as options, futures, and funds. The NASDAQ-100 Index is re-ranked each year in December, timed to coincide with the quadruple witch expiration Friday of the quarter.
On a cumulative price return basis, the NASDAQ-100 Index has returned approximately 1771% since inception, although past performance is not indicative of future performance. The NASDAQ-100 Index is the basis of the PowerShares QQQ Trust (NASDAQ:QQQ) which aims to provide investment results that, before expenses, correspond with the NASDAQ-100 Index performance. In addition, options, futures and structured products based on the NASDAQ-100 Index and the PowerShares QQQ Trust trade on various exchanges. To learn more about the criteria for inclusion to the NASDAQ-100, visit NASDAQ-100 Index.
About NASDAQ OMX Global Index Group
NASDAQ OMX Global Index Group is engaged in the design, development, calculation, licensing, and marketing of NASDAQ OMX Indexes. NASDAQ OMX Global Index Group specializes in the development of indexes focusing on NASDAQ OMX's brand themes of innovation, technology, growth, and globalization. NASDAQ OMX Global Index Group also provides custom index services and design solutions as a third-party provider to selected financial organizations. For more information about NASDAQ OMX indexes, visit www.nasdaqomx.com/indexes.
About NASDAQ OMX Group
The NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) is the world's largest exchange company. It delivers trading, exchange technology and public company services across six continents, with approximately 3,600 listed companies. NASDAQ OMX offers multiple capital raising solutions to companies around the globe, including its U.S. listings market, NASDAQ OMX Nordic, NASDAQ OMX Baltic, NASDAQ OMX First North, and the U.S. 144A sector. The company offers trading across multiple asset classes including equities, derivatives, debt, commodities, structured products and exchange-traded funds. NASDAQ OMX technology supports the operations of over 70 exchanges, clearing organizations and central securities depositories in more than 50 countries. NASDAQ OMX Nordic and NASDAQ OMX Baltic are not legal entities but describe the common offering from NASDAQ OMX exchanges in Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. For more information about NASDAQ OMX, visit http://www.nasdaqomx.com. Please follow NASDAQ OMX on Facebook (http://www.facebook.com/nasdaqomx) and Twitter (http://www.twitter.com/nasdaqomx).
*The Special Rebalance of the NASDAQ-100 Index will be enacted based on Index Securities and shares outstanding as of March 31, 2011, except for Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN), which became a component of the Index on April 4, 2011.
Cautionary Note Regarding Forward-Looking Statements
The matters described herein contain forward-looking statements that are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements about the NASDAQ-100 Index and NASDAQ OMX's other products and offerings. We caution that these statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements involve a number of risks, uncertainties or other factors beyond NASDAQ OMX's control. These factors include, but are not limited to factors detailed in NASDAQ OMX's annual report on Form 10-K, and periodic reports filed with the U.S. Securities and Exchange Commission. We undertake no obligation to release any revisions to any forward-looking statements.
Notes to editors:
NASDAQ®, NASDAQ-100®, NASDAQ-100 Index®, NASDAQ-100 Index Tracking Stock® and QQQ® are registered trademarks of The NASDAQ OMX Group, Inc. (collectively, with its affiliates "NASDAQ OMX") and are licensed for use by Invesco PowerShares Capital Management LLC. PowerShares QQQ has not been passed on by NASDAQ OMX as to its legality or suitability, and is not issued or sold by NASDAQ OMX. NASDAQ OMX makes no warranties and bears no liability with respect to PowerShares QQQ.
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