The special rebalancing is adjusting index stocks to “bring the weights closer in line with their actual market capitalizations,” according to slides prepared by Nasdaq.
For every $1 billion benchmarked to the Nasdaq-100, an estimated 9.5 million shares will trade, according to the presentation. The rebalancing will be felt in markets as passive managers buy and sell stocks to reflect the new weightings. Apple shares in particular should see selling pressure due to the company’s expected dramatic reduction in the Nasdaq-100.
Apple shares were lower in Tuesday’s premarket while Microsoft traded higher.
“It’s going to be a big trade,” Nasdaq’s Jacobs told the WSJ. However, “we wanted to make this very transparent. Everyone will see what we’re doing and everyone will have a month before we do this,” he told the newspaper.
PowerShares QQQ is up about 5% so far this year.
