"The NASDAQ-100 Index is the basis for some 400 financial products worldwide, up from 7 products just 4 years ago, and has truly become one of the world's most closely watched barometers of financial market activity," said John L. Jacobs, chief executive officer of NASDAQ Financial Products Services, Inc. "In fact, it has outperformed every other major stock index in the U.S. on a cumulative basis since 1992."
The following 15 issues will be added to the NASDAQ-100 Index: Expeditors International of Washington, Inc. (NASDAQ:EXPD), Ross Stores, Inc. (NASDAQ:ROST), DENTSPLY International Inc. (NASDAQ:XRAY), Lamar Advertising Company (NASDAQ:LAMR), Whole Foods Market, Inc. (NASDAQ:WFMI), First Health Group Corp. (NASDAQ:FHCC), PETsMART, Inc. (NASDAQ:PETM), Pixar (NASDAQ:PIXR), Fastenal Company (NASDAQ:FAST), American Power Conversion Corporation (NASDAQ:APCC), C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW), Patterson-UTI Energy, Inc. (NASDAQ:PTEN); Gentex Corporation (NASDAQ:GNTX); Henry Schein, Inc. (NASDAQ:HSIC); and Ryanair Holdings plc (NASDAQ:RYAAY).
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 indices were originally designed to segment NASDAQ into two major industry groups to support media coverage and to act as benchmarks for financial products such as options, futures, and funds. The NASDAQ-100 is re-ranked each year in December, timed to coincide with the triple witch options expiration Friday of the quarter.
"The NASDAQ-100 Index uses a set of objective, transparent criteria to ensure that it accurately reflects the largest non-financial companies listed on NASDAQ," said Mr. Jacobs. "The companies in the Index are among the world's most dynamic, category-defining companies and have been added to the NASDAQ-100 because of their market capitalization and compliance with our strict rules-based criteria."
Shares of each company in the Index are included in the NASDAQ-100 Index Tracking StockSM (QQQ), which is an exchange-traded fund (ETF) that trades like a stock. It is the world's most actively traded ETF. On most trading days, it is also the second most actively traded security in the U.S. 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, generally correspond with the NASDAQ-100 Index performance. Since its inception in March 1999, the Trust's total assets have grown to over $18 billion.
Additionally, companies that are removed from the Index may rejoin it at a later time. This year, American Power Conversion Corporation, Fastenal Company, First Health Group Corp, PETsMART, and Ross Stores, Inc., are again becoming components of the Index.
Earlier this month, NASDAQ also launched the NASDAQ-100 European Tracker (EQQQ), which trades on NASDAQ Europe and is designed to closely follow the NASDAQ-100 Index. EQQQ provides European investors with low cost access to the entire range of companies in the NASDAQ-100 Index in European hours, on a European market.
There are also 23 domestic mutual funds and seven international funds linked to the NASDAQ-100 Index. For more information about the NASDAQ-100 Index, including eligibility criteria, visit www.nasdaq-100.com.
As a result of the re-ranking of the NASDAQ-100 Index, the following 15 companies will be removed: Abgenix, Inc. (NASDAQ: ABGX), Andrx Group (NASDAQ: ADRX), Applied Micro Circuits Corporation (NASDAQ:AMCC), Atmel Corporation (NASDAQ: ATML), Charter Communications, Inc. (NASDAQ:CHTR), Conexant Corporation (NASDAQ:CNXT), Cytyc Corporation (NASDAQ:CYTC), Integrated Device Technology, Inc. (NASDAQ:IDTI), ImClone Systems Incorporated (NASDAQ:IMCL), i2 Technologies, Inc. (NASDAQ:ITWO), Protein Design Labs, Inc. (NASDAQ:PDLI), PMC-Sierra, Inc. (NASDAQ:PMCS); Rational Software Corporation (NASDAQ:RATL); Sepracor Inc. (NASDAQ:SEPR); and Vitesse Semiconductor Corporation (NASDAQ:VTSS).
The NASDAQ-100 Index, launched in January 1985, has risen over 346% percent since inception, although past performance is not necessarily indicative of future performance.
NASDAQ (OTCBB:NDAQ) is the world's largest electronic stock market. With approximately 3,800 companies, NASDAQ lists more companies and trades more shares per day than any other U.S. market. Over the past five years, NASDAQ has outpaced all other U.S. markets in listing IPOs. It is home to category-defining companies that are leaders across all areas of business including technology, retail, communications, financial services, media and biotechnology industries. NASDAQ is a key driver of capital formation. For more information about NASDAQ, visit the NASDAQ Web site at www.nasdaq.com or the NASDAQ NewsroomSM at www.nasdaqnews.com. For more information about the NASDAQ-100, visit www.nasdaq-100.com.
To learn more about the criteria for inclusion to the NASDAQ-100, visit http://dynamic.nasdaq.com/dynamic/nasdaq100_activity.stm
