The term NASDAQ Financial-100 refers to a stock market index first created back in 1985 by NASDAQ, a global financial technology, trading and information services provider. The NASDAQ Financial-100 is a specialty index that tracks the performance of stocks issued by companies in the financial services sector of the economy.
The NASDAQ Financial-100 Index is a portfolio of over 100 common equites issued by 100 of the largest financial companies, in terms of market capitalization, listed on the NASDAQ stock exchange. The index is said to be a “sister” to the NASDAQ 100, which explicitly excludes financial institutions.
Companies appearing in the index include those providing financial services such as banking, insurance, loans and mortgages, real estate and even securities trading and exchanges. Performance of the index can be monitored using the stock ticker IXFIN. As is the case with the NASDAQ 100, the index is calculated using a modified capitalization-weight approach.
In addition to market capitalization, companies included in the NASDAQ Financial-100 must:
- Be listed exclusively on the NASDAQ.
- Be a publicly-offered stock on an American market for a minimum of three months.
- Remain current with respect to their annual and quarterly financial reports.
- Do business in one of the following sectors: banking, insurance, security trading, brokerage, mortgages, debt collection, or real estate.
In addition to the above criteria, companies included in the NASDAQ Financial-100 cannot be a party to a bankruptcy proceeding. Finally, if a company appearing in the NASDAQ Financial-100 has multiple classes of common stock, each of these securities will be included in the index. For this reason, the index typically contains over 100 securities.