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The planned revision would allow a new listing to join the Nasdaq 100 after the first 15 trading days, which is shorter than the current waiting period of at least three months. The proposed change aims to make the index more representative of the market in a timely way and ensure the inclusion of the largest Nasdaq listed non-financial companies.
“There could be concern that passive funds will be missing out in a scenario where the new stock does rally even further and then requires higher turnover when adding it in,” said Kaasha Saini, head of index strategy at Jefferies. “The proposed change would make the index more representative of the market in a timely way.”
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