TheNasdaq Financial-100 (^IXF) is astock market index operated byNasdaq tracking the largestfinancial services companies such as banks, insurers, mortgage lenders, and securities firms. Established in 1985 as a counterpart to theNasdaq-100, it provides a sector-focused gauge of financial performance within the broader U.S. equity marketplace.
To qualify for membership in the index, the following standards must be met:[1]
It must engage in one of these categories: banking, insurance, security trading, brokerage, mortgages, debt collection, and real estate.
It must be seasoned on the Nasdaq for a period of three months.
It must be current in regards to SEC filings.
It cannot be in bankruptcy.
If a company has multiple classes of stock, all classes that meet minimum market capitalization standards will be included. At this moment, however, all companies in the index have only one class of stock in this index.
Unlike theNasdaq-100 index, there are no minimum weight requirements, and no volume minimums to meet either.
The index is rebalanced annually in June. Components ranked within the top 100 financial companies remain in the index. If a component is between positions 101 to 125, it is given a year to move into the top 100 of eligible stocks; if it cannot meet this standard, the stock is then dropped. Any component that is not in the top 125 at the time of rebalance is dropped.[1]
All vacancies resulting from acquisitions, delistings, or other corporate actions are filled by the highest ranked eligible company not currently in the index. Unlike the Nasdaq-100, Nasdaq does not publicly announce changes to the Nasdaq Financial-100 in advance.[1]
