Apple's weighting in the Nasdaq-100 Index is being cut in the first major reshuffle of the index since 1998, according to BusinessWeek.
Apple’s representation will be reduced to 12.33 percent of the index on May 2, from 20.49 percent, Nasdaq OMX Group Inc. said in a slide show on its website today, after previous rules caused its weighting to grow disproportionately. The amount of the measure allotted to Microsoft Corp. and Oracle Corp. will more than double.
BusinessWeek notes that Apple’s weighting was more than 6 times that of Microsoft yet its market value is only 46 percent larger.
"This would probably affect international funds, given that Apple is such a big company globally," said Tim Schroeders, a Melbourne-based money manager at Pengana Capital Ltd. "Passive funds in particular will be forced to re-weight into those stocks that have had increases in weightings, and in the short term we will see some selling pressure on Apple."
Read More [via Lewis]
Apple’s representation will be reduced to 12.33 percent of the index on May 2, from 20.49 percent, Nasdaq OMX Group Inc. said in a slide show on its website today, after previous rules caused its weighting to grow disproportionately. The amount of the measure allotted to Microsoft Corp. and Oracle Corp. will more than double.
BusinessWeek notes that Apple’s weighting was more than 6 times that of Microsoft yet its market value is only 46 percent larger.
"This would probably affect international funds, given that Apple is such a big company globally," said Tim Schroeders, a Melbourne-based money manager at Pengana Capital Ltd. "Passive funds in particular will be forced to re-weight into those stocks that have had increases in weightings, and in the short term we will see some selling pressure on Apple."
Read More [via Lewis]