NASDAQ Financial-100

The NASDAQ Financial-100 is a specialty index operated by NASDAQ that follows stocks in the Financial services index. It was created in 1985 as the sister index to the more widely followed NASDAQ-100. As designed by NASDAQ, this index follows companies that engage in banking, insurance, mortgages, securities trading and real estate. It also has, among its components, exchanges, including NASDAQ itself.^[1]

Standards for eligibility

To qualify for membership in the index, the following standards must be met:

• It must engage in one of these categories: banking, insurance, security trading, brokerage, mortgages, debt collection, and real estate.
• It must be seasoned on the NASDAQ for a period of three months.
• It must be current in regards to SEC filings.
• It cannot be in bankruptcy.
• If a company has multiple classes of stock, all classes that meet minimum market capitalization standards will be included. At this moment, however, all companies in the index have only one class of stock in this index.
• Unlike the NASDAQ-100 index, there are no minimum weight requirements, and no volume minimums to meet either.

Like the NASDAQ-100, the index is rebalanced annually, only it's done in June. Components that are in the top 100 of financial companies are allowed to remain in the index. If a component is between positions 101 to 125, it is given a year to move into the top 100 of eligible stocks; if it cannot meet this standard, the stock is then dropped. Any component that is not in the top 125 at the time of rebalance is dropped. All vacancies, including those done whenever a corporate action makes a component ineligible, through acquisition or delisting, are filled by the highest ranked component not in the index. Unlike the NASDAQ-100, where changes are announced in advance, changes in the NASDAQ-100 are not made public by NASDAQ.

Components

For the latest component information, please refer to the NASDAQ's website.^[2]

1. Arch Capital Group
2. Equinix

References