HOW THE NASDAQ 100 ETF TOWERS ABOVE THE COMPETITION

Everyone is on the lookout for successful companies, and nobody is more successful than the Nasdaq 100 ETF listings.  These are the one hundred most profitable non-financial companies on the listings of the stock market, boasting names like Google, Intel, and Starbucks.  The relative health of these companies is calculated and updated frequently to be an overall barometer of the economy’s health, similar to the Dow Jones Industrial average.  It is possible to purchase shares of the Nasdaq 100 ETF since 2007, making it a very stable (but not always positive) market choice for many investors.  It is traded as the ticker “QQQ“, and has often been one of the most traded commodities in the United States, having once hit a high of $120 per share.  The value today is lower, having dropped behind shares of other ETFs like Standard and Poor’s Depositairy Receipts.

HOW A NASDAQ 100 ETF COMPILES ITS VALUE

Not just any company can be in the top 100.  Companies cannot be in any stage of bankruptcy, they must have at least a daily volume averaging quarter of a million available shares, and they must provide current reports on their fiscal health.  Often times companies drop in and out of the top Nasdaq 100 ETF, though this rarely changes the value as much as the fluctuation of the higher-value companies (like Microsoft).  Often times, companies are removed when they are de-listed, when they merge to form a new entity, or if they transfer to a new exchange on Wall Street or overseas.  The share prices on the last day of October, combined with the share totals on the last day of November, will determine the market values during the annual reviews.  Some companies are ranked from 101 to 125, but only if they were listed in the Nasdaq 100 ETF the prior year.

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