The following 3 issues will be added to the NASDAQ-100 Index: Level 3 Communications Inc. (NASDAQ:LVLT), Infosys Technologies Ltd. (NASDAQ:INFY), and Vertex Pharmaceuticals Inc. (NASDAQ:VRTX).
The NASDAQ-100 Index is composed of the 100 largest non-financial stocks on The NASDAQ Stock Market and dates to January 1985 when it was launched along with the NASDAQ Financial-100 Index, which is comprised of the 100 largest financial stocks on NASDAQ. These indexes were originally designed to segment NASDAQ into two major industry groups to support media coverage and to act as benchmarks for licensed financial products such as options, futures, and funds. The NASDAQ-100 is re-ranked each year in December, timed to coincide with the quadruple witch expiration Friday of the quarter.
On a cumulative price return basis, the NASDAQ-100 Index has risen over 1,333% since inception, and it has outperformed several major domestic and international stock indexes for the ten-year period ended November 30, 2006, although past performance is not indicative of future performance. For the most recent one, five, and ten-year periods ended November 30, 2006, the cumulative return of the NASDAQ-100 Index was 7.1%, 12.2%, and 114.8% respectively.
Shares of each company in the Index are included in the NASDAQ-100 Index Tracking Stock, which is an exchange-traded fund (ETF) that trades like a stock. It is the most actively traded listed equity security in the U.S. and one of the world’s most actively traded ETFs as measured by the average daily share trading volume¹. QQQ represents ownership in the NASDAQ-100 TrustSM. The Trust holds a portfolio of equity securities that comprise the NASDAQ-100 Index and aims to provide investment results that, before expenses, correspond with the performance of the NASDAQ-100 Index. Since its inception in March 1999, the Trust’s total assets have grown to over $18 billion.
The NASDAQ-100 European Tracker Fund (EQQQSM) is listed on Borsa Italiana, SWX Swiss Exchange, Deutsche Boerse, virt-x, and London Stock Exchange. EQQQ provides European investors with low cost access to the entire range of companies in the NASDAQ-100 Index in European hours, on European markets. Since its inception in November 2002, the Fund’s total assets have grown to approximately $425 million. EQQQ is not available to U.S. investors.
As a result of the re-ranking of the NASDAQ-100 Index, the following 3 companies will be removed: JDS Uniphase Corporation (NASDAQ:JDSU), Lincare Holdings Inc. (NASDAQ:LNCR), and Urban Outfitters, Inc. (NASDAQ:URBN).
