America’s biggest tech companies have become too large even for the stock index tracking America’s biggest tech companies.
- The seemingly unstoppable growth of megacaps like Apple Inc. and Microsoft Corp. mean they have breached an upper limit imposed on stocks in the Nasdaq 100.
- The index provider says the July 24 adjustment will “address overconcentration in the index by redistributing the weights.”
While details on the action are sparse, a paper on the Nasdaq website says special rebalancings can be called in certain circumstances when the portion represented by the index’s biggest members exceeds a preset threshold.