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A stationary bicycle Peloton.
Scott Heins / Getty Images
While many investors were watching closely
adzeS
the first days in
S&P 500
– the stock has fallen by 7% so far this week – changes in another pre-eminent stock index have largely fallen under the radar.
Last Friday, six new members joined
Nasdaq Index 100,
which tracks the top 100 non-financial listed companies on the Nasdaq, including some of the most innovative and fastest-growing companies in the world, such as
Amazon.com
(ticker: AMZN),
Apple
(AAPL) and
Microsoft
(MSFT).
The index has risen 45% so far, more than triple the S&P 500’s 14% gain.
Utility giant
American electricity
(AEP) is now part of the Nasdaq 100 after changing its listing on the New York Stock Exchange to the Nasdaq. Another new member is
Match group
(MTCH), which owns some of the most popular online dating apps, such as Match, Tinder and Hinge. The company went public in July as a derivative of the Interactive Group holding company, and shares have already grown by 47% since last Friday.
Home fitness company
Peloton Interactive
(PTON) also joined the Nasdaq 100. The stock took a wild ride in 2020, up 392% since last Friday, as the Covid-19 pandemic changed the way people trained and grew significantly. demand for home fitness solutions. . The stock rose 16% this week after joining the Nasdaq 100.
The other three newcomers to the Nasdaq 100 are chip makers
Marvel Technologies
(MRVL), a cyber security firm in the cloud
Okta
(OKTA) and the software company
Atlassian
(TEAM). Since last Friday, the three stocks have gained 79%, 136% and 106%, respectively, so far. Their growing size has raised them to the top 100 non-financial stocks on the Nasdaq Exchange.
While those companies joined the Nasdaq 100, six were removed from the index. Are
BioMarin Pharmaceutical
(BMRN)
Citrix Systems
(CTXS)
Expedite
(EXPE)
Liberty Global
(LBTYA and LBTYK),
Take two interactive
(TTWO) and
Ulta Beauty
(Ultra).
These changes were reflected in the $ 149 billion
Invesco QQQ Trust
(QQQ) which follows 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 US, its assets have grown sixfold in the last decade due to strong investor interest and a rapid appreciation of its holdings. In 2020 alone, the fund received more than $ 19 billion in net income.
In October,
Invesco
launched a cheaper version of QQQ with the same stock exposure: Invesco
Nasdaq 100 ETF
(QQQM), where M represents mini. While QQQ Trust initially trades 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 percentage points higher. little bit.
As QQQ is one of the most liquid ETFs in the US, with a difference of only a penny between offers and offers, many short-term traders could still use it to reap gains with reduced trading costs. The newly launched QQQM, with lower prices and commissions, would be a better choice for long-term buying and holding investors who care less about liquidity and trading margin. The fund has already raised $ 344 million in assets just two months after its October launch.
Write to Evie Liu at [email protected]