Nasdaq‑100 Index® Methodology Update: Why Now, and What It Means

Nasdaq Global Indexes implemented targeted updates to the Nasdaq‑100 (US Tech 100) methodology effective May 1, 2026, to better reflect evolving market structure and improve investability. Key changes introduce rank‑based quarterly reviews (March, June, September) with the first quarterly rebalance on June 22, a Fast Entry pathway that evaluates very large new listings on their seventh trading day, and a graduated float‑based capping mechanism that limits initial weights for low‑float stocks (scaling up to 33 1/3% float). Nasdaq also consolidated legacy ad hoc processes into scheduled events and reduced an initially proposed five‑times cap to a more conservative three‑times cap after stakeholder feedback. The updates aim to make the index more predictable and reduce the risk passive investors face from abrupt weightings of low‑float entrants, while preserving the Nasdaq‑100’s objective as a benchmark underpinning many ETFs and derivatives.