The Powershares QQQ (NasdaqGM: QQQ), the NASDAQ-100 tracking ETF, will see the addition of three new members when following the annual re-ranking of the NASDAQ-100 (Nasdaq:NDX). Those changes will become effective prior to market open on Monday, December 22, 2014, according to NASDAQ OMX Group (NasdaqGS: NDAQ).
New entries to QQQ, one of the largest U.S.-listed ETFs, are American Airlines (NasdaqGS: AAL), Electronic Arts (NasdaqGS: EA) and Lam Research (NasdaqGS: LCRX). Expedia (NasdaqGS: EXPE), F5 Networks (NasdaqGS: FFIV) and Maxim Integrated Products (NasdaqGS: MXIM) will depart the NASDAQ-100, according to NASDAQ OMX.
The three stocks departing QQQ currently combine for less than two-thirds of 1% of the ETF’s weight, according to PowerShares data.
The NASDAQ-100 and QQQ will also add three other share classes of existing index members. Comcast Corporation Class A Special (NasdaqGS: CMCSK), Twenty-First Century Fox, Inc. Class B (NasdaqGS: FOX) and Liberty Global plc Class C (NasdaqGS: LBTYK) will join the NASDAQ-100.
Earlier this year, NASDAQ-OMX said it was changing the NASDAQ-100’s methodology to accommodate multiple share classes. As such, QQQ currently holds 104 stocks, not 100.
“Effective with the December 2014 evaluation, NASDAQ OMX will modify the index methodology to allow for inclusion of all of a company’s share classes that meet inclusion criteria of the NASDAQ-100 Index. The index will therefore better reflect the entire market capitalization of the 100 largest non-financial companies listed on The NASDAQ Stock Market,” said NASDAQ OMX in a statement.
QQQ already features both classes of Google (Nasdaq: GOOG) among its top-seven holdings. Apple (NasdaqGS: AAPL) is QQQ’s largest holding with a weight of 14%. [Changes Coming for QQQ]
PowerShares QQQ
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of Apple and QQQ.