While many investors were watching closely
first days in the
– the stock is down 7% so far this week – changes in another prominent stock index have largely gone under the radar.
Last Friday, six new members joined the
Nasdaq 100 Index,
which tracks the 100 largest non-financial companies listed on the Nasdaq stock exchange, including some of the most innovative and dynamic companies in the world, such as
The index has climbed 45% year-to-date, more than triple the S&P 500’s 14% gains.
American Electric Power
(AEP) is now part of the Nasdaq 100 after changing its stock exchange listing from the New York Stock Exchange to Nasdaq. Another new member is
(MTCH), which owns some of the most popular online dating apps like Match, Tinder, and Hinge. The company went public in July as a spin-off of its holding company Interactive Group, and the stock has already jumped 47% last Friday.
Home fitness business
(PTON) also joined the Nasdaq 100. The title has seen a wild ride in 2020, rising 392% last Friday as the Covid-19 pandemic changed the way people work and dramatically increased demand for solutions home fitness. The stock jumped another 16% this week after joining the Nasdaq 100.
The other three newcomers to the Nasdaq 100 are chipmakers
(MRVL), cloud cybersecurity company
(OKTA) and software publisher
(TEAM). Last Friday, the three stocks gained 79%, 136% and 106% respectively since the start of the year. Their growing size has made them one of the 100 largest non-financial stocks on the Nasdaq Exchange.
While these companies joined the Nasdaq 100, six were excluded from the index. They are
(LBTYA and LBTYK),
Take two interactive
These changes were reflected in the $ 149 billion
Fiducie Invesco QQQ
(QQQ) which tracks the Nasdaq 100 Index. The exchange traded fund has been a popular choice for many investors and traders. As the fifth-largest ETF in the United States, its assets have grown six-fold over the past decade due to strong investor interest and rapid asset appreciation. In 2020 alone, the fund received more than $ 19 billion in net inflows.
launched a cheaper version of QQQ with exactly the same exposure to equities: Invesco
FNB Nasdaq 100
(QQQM), where M represents mini. While the original QQQ Trust is currently trading around $ 310 per share and charges an expense ratio of 0.20%, the new Invesco Nasdaq 100 is priced at just $ 127 per share and costs 0.05 points. percentage less.
Since QQQ is one of the most liquid ETFs in the United States with only a dime spread between offers and offers, many short-term traders could continue to use it to reap gains with low trading costs. The newly launched QQQM, with lower prices and fees, would be a better choice for long-term buy-and-hold investors who care less about liquidity and trading spreads. The fund has already raised $ 344 million in assets just two months after launching in October.
Write to Evie Liu at [email protected]