New Additions, Subtractions Coming for QQQ

The PowerShares QQQ (NasdaqGS: QQQ), the fifth-largest U.S. exchange traded fund by assets, will welcome some new faces and say good-bye to some current holdings later this month.

After the close of U.S. markets Friday, the NASDAQ OMX Group (NasdaqGM: NDAQ), announced it is adding five stocks to the Nasdaq 100 index, the underlying index for QQQ. The changes will become effective prior to market open on Monday, December 23, 2013, according to a statement issued by NASDAQ OMX.

The new additions to the Nasdaq 100 will be Dish Network (NasdaqGM: DISH), Illumina (NasdaqGM: ILMM), NXP Semiconductors (NasdaqGM: NXPI), TripAdvisor (NasdaqGM: TRIP) and Tractor Supply (NasdaqGM: TSCO).

Fossil (NasdaqGM: FOSL), Microchip Technology (NasdaqGM: MCHP), Nuance Communications (NasdaqGM: NUAN), Sears Holdings (NasdaqGM: SHLD) and DENTSPLY International (NasdaqGM: XRAY) are the stocks being removed from the NASDAQ 100 and QQQ. Combined, those stocks represent less than 0.8% of QQQ’s weight, according to PowerShares data.

With a market value of $24.4 billion, Dish Network is the largest of the new additions to QQQ. That makes Dish more than twice as large as Garmin (NasdaqGM: GRMN), Staples (NasdaqGM: SPLS) and Dollar Tree (NasdaqGM: DLTR), all of which are among QQQ’s current roster of consumer discretionary holdings.

In fact three of the new additions to the NASDAQ 100 – Dish, TripAdvisor and Tractor Supply – are discretionary stocks, highlighting the evolution of the Nasdaq, which includes higher weights to non-tech sectors such as discretionary and health care. [Nasdaq’s Evolution Could Stoke New Highs]