The NASDAQ OMX Group introduces annual re-ranking of the NASDAQ-100 Index effective with the market open on 22 December 2008.
The NASDAQ-100 is re-ranked each year in December, timed to coincide with the quadruple witch expiration Friday of the quarter. The NASDAQ-100 Index is composed of the 100 large non-financial stocks on The NASDAQ Stock Market(r) and dates to January 1985.
The NASDAQ-100 Index is the basis of the PowerShares QQQ Trust (Nasdaq:QQQQ), which aims to provide investment results that, before expenses, correspond with the NASDAQ-100 Index performance. In addition, options, futures and structured products based on the NASDAQ-100 Index and the PowerShares QQQ Trust trade on various exchanges.
The following 11 issues will be added to the NASDAQ-100 Index: Automatic Data Processing, Inc. (Nasdaq:ADP), First Solar, Inc. (FSLR), Life Technologies Corporation (LIFE), Ross Stores, Inc. (ROST), Maxim Integrated Products, Inc. (MXIM), Illumina, Inc. (ILMN), Pharmaceutical Product Development, Inc. (PPDI), O’Reilly Automotive, Inc. (ORLY), Urban Outfitters, Inc. (URBN), J.B. Hunt Transport Services, Inc. (JBHT), and Warner Chilcott Limited (WCRX).
On a cumulative price return basis, the NASDAQ-100 Index has returned 797% since inception.
As a result of the re-ranking of the NASDAQ-100 Index, the following 11 securities will be removed: Amylin Pharmaceuticals, Inc. (Nasdaq:AMLN), Cadence Design Systems, Inc. (CDNS), Discovery Communications, Inc.’s Class A Common Stock (DISCA), Lamar Advertising Company (LAMR), Leap Wireless International, Inc. (LEAP) Level 3 Communications, Inc. (LVLT), PetSmart, Inc. (PETM), Sirius XM Radio Inc. (SIRI), SanDisk Corporation (SNDK), Virgin Media Inc. (VMED), and Whole Foods Market, Inc. (WFMI).
Through an objective, transparent re-ranking process, the NASDAQ-100 Index continues its evolution as a relevant, investable benchmark, says John L. Jacobs, executive vice president, NASDAQ OMX. The NASDAQ-100 represents a diverse range companies and provides investors with a key measure of the performance of the world’s leading large-cap growth companies.
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