Special rebalance for the Nasdaq 100 explained

Special rebalance for the Nasdaq 100

The US tech-heavy index Nasdaq 100 has announced a one-of-a-kind rebalance which will take place before the market opens, on Monday, 24 July 2023.

The reason behind the special rebalance is simple: the 7 top stocks have grown so much that they have reached the weight limit set by the index for each stock.

More than 50% of the index is composed only of Microsoft, Apple, Google, NVIDIA, Amazon, Tesla, and Meta.

The new rebalance will not remove any of the existing stocks and will not add any new ones, it will only help to redistribute the weight of the stocks to avoid overconcentration as well as reduce the risks.

The direct consequence of the newly announced rebalance of the Nasdaq is that mutual funds and ETFs have to sell part of their existing top 7 shares (Microsoft, Apple, Google, NVIDIA, Amazon, Tesla, and Meta) and increase their positions in the remaining 93 stocks.

On today’s news

  • Threads, the new social media launched last Wednesday by Meta Platform, has reached more than 100 million users worldwide and has exceeded the expectation of its owner Mark Zuckerberg. Meta stocks are going up.
  • Microsoft has announced a round of layoffs after the January job cut of 10,000 people. Yesterday the company announced that additional 276 people will have to leave Microsoft.

Portfolio update

I am rebalancing my portfolio gradually.

I am adding new positions and will close some in the upcoming months.

If you are already copying my portfolio, please keep the copy open.

If you are thinking of copying me, now is the right time, if you can invest for the long term (years).

Remember to copy the open trades to optimize the copy.

Remember to set the stop loss on the copy at the minimum level, so you don’t get stopped if there is a correction.

Thank you, everyone. Have a nice day!

Steps to follow to copy my portfolio automatically:

1. Create an eToro account here: https://federicamontella.com/go/etoro/

2. Verify your account and make a deposit of at least 200 USD (you can deposit in any currency, like GBP and EUR)

3. Go to my profile page: https://federicamontella.com/go/etoro-passionforprofit/

4. Start the copy (copy open trades and set the lowest stop loss possible, to allow some movement)

5. Enjoy, it’s all automatic. You will make passive income 24/7

Let me know if you have any questions.


Federica Montella

eToro Popular Investor


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Author: Federica Montella
eToro Popular Investor, food lover and blogger. Stock trader and Popular Investor at eToro. I am on a mission to find the best restaurants and food to eat.