It’s a coveted spot for the top securities listed on the Nasdaq Stock Exchange: the Nasdaq-100. The index comprises 100 of the largest domestic and international non-financial companies listed on the exchange (based on market capitalization). With a market cap of more than $5.2 Trillion as of year-end 2015, the NDX has become one of the world’s preeminent large-cap growth indexes.
The Nasdaq-100 annual evaluation goes into effect after the close of trading on the third Friday of each December. This year, there were seven issuer additions and seven issuer deletions*. The largest of the additions was T-Mobile US (NASDAQ: TMUS). The largest of the deletions was Keurig Green Mountain (NASDAQ: GMCR). For all additions and deletions associated with the 2015 annual evaluation, see below.
Outside of the annual evaluation, the Nasdaq-100 may have periodic replacements throughout the year due to corporate actions, an event initiated by a public company that affects the securities (e.g., stock splits, dividends, mergers and acquisitions, rights issues and spin offs). In 2015, there were six such occurrences that occurred over the course of the year**. The six periodic additions and replacements are listed below:
PayPal Holdings, Inc.
Skyworks Solutions, Inc.
BioMarin Pharmaceutical, Inc.
Walgreens Boots Alliance, Inc.
2015 was another solid year from a performance perspective for the Nasdaq-100. Possibly more important is the outperformance with respect to the S&P 500. Dating back to 2007, the Nasdaq-100 has outperformed the S&P 500 each year other than 2008 from as little as 2.7% (2011) to as much as 30% (2009). The trend looks to continue through 2015 with outperformance in excess of 9% through the end of December. Volatility is slightly higher in the Nasdaq-100 vs the S&P 500 with current figures standing at 17.86% (for the Nasdaq-100) vs. 15.49% (for the S&P 500). In addition to the strong price appreciation this year, the Nasdaq-100 is currently yielding 1.21%***.
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