The Nasdaq index rebalancing will change the weights of key stocks within the fund. Big tech stocks will have a lower concentration within the index. Some investors believe the rebalance is long overdue, with six stocks currently markup up 50% of the Nasdaq 100’s assets. The index rebalancing will reduce these corporations to 40% of the index’s portfolio.
The readjustment will be completed on July 24th, giving investors a narrow window to capitalize on the opportunity. These three Nasdaq stocks seem poised to make up a higher percentage of the popular index and reward long-term investors.
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