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Historic Stock Market Volume Is Likely This Week as Tesla Goes Into the S&P 500

In addition to the S&P rebalancing, several major ETFs will also rebalance on Friday, including the Invesco QQQ Trust (QQQ), which is indexed to the red-hot NASDAQ 100, and the Renaissance Capital IPO ETF (IPO), which has been on a tear due to the rush of recent IPOs and recently hit $700 million in assets under management. What happens when indexes rebalance Rebalancings usually involve changes in the weighting of the companies listed in the indexes, but it can also involve additions or deletions to the indexes (known as reconstitution ).  Mutual funds, ETFs, and others who seek to mimic the behavior of the index must then buy or sell the stocks in proportion to their weightings in the indexes.

Annual Changes To The Nasdaq-100 Index

Annual Changes To The Nasdaq-100 Index Date 12/12/2020 Nasdaq (Nasdaq: NDAQ) today announced the results of the annual reconstitution of the Nasdaq-100 Index® (Nasdaq: NDX), which will become effective prior to market open on Monday, December 21, 2020. The following six companies will be added to the Index: American Electric Power Company, Inc. (Nasdaq: AEP), Marvell Technology Group Ltd. (Nasdaq: MRVL), Match Group, Inc. (Nasdaq: MTCH), Okta, Inc. (Nasdaq: OKTA), Peloton Interactive, Inc. (Nasdaq: PTON), Atlassian Corporation Plc (Nasdaq: TEAM). The Nasdaq-100 Index is composed of the 100 largest non-financial companies 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 is reconstituted each year in December, timed to co

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