The Nasdaq 100 index will be reformulated on Monday 24th July because it is dominated by too few large companies.
This is relevant to all investors in £EQQQ (I hold) and may very well - at least in the short term - reduce the performance of this tracker fund which is heavily loaded with big US technology companies.
Professional Spread Bettor
My purpose in buying the EQQQ was to own the Nasdaq 100. This change feels rather unnecessary and could be described as neomania i.e. change for the worse as Nassim Taleb would say.
It feels to me that I now own an artificial version of the Nasdaq 100 rather than the actual index. The only consolation may be that as the rest of the index catches up on the super seven there may be some gains forthcoming.
