INDEX METHODOLOGYNASDAQ-100 INDEX®
NDX®
INDEX DESCRIPTIONThe Nasdaq-100 Index® is designed to measure the performance of 100 of the largest Nasdaq-listed
non-financial companies.

SECURITY ELIGIBILITY CRITERIATo qualify for index inclusion, securities must meet the following Security Eligibility Criteria which areapplied as of the Reconstitution reference date.

Eligible security types
Eligible security types include common stocks, tracking stocks, and American Depositary Receipts(“ADRs”) including New York Registry Shares.
Real Estate Investment Trusts (“REITs”), Special Purpose Acquisition Companies (“SPACs”), and “whenissued” securities are not eligible.

Multiple classes of securities
Multiple classes of securities issued by the same company are each eligible, subject to meeting all othersecurity eligibility criteria.
For constituent selection and weighting purposes, the market capitalization of each company is the
combined market capitalization of all eligible share classes. Unless otherwise noted, unlisted shareclasses are ineligible and will not be considered in the calculation of a company’s market capitalization.

Eligible exchanges
To be eligible for index inclusion, a company’s primary US listing must be listed exclusively on the
Nasdaq Global Select Market or the Nasdaq Global Market.

1
INDEX METHODOLOGY | © Copyright 2024, Nasdaq, Inc. All Rights Reserved.

Industry or sector eligibility
To be eligible, a company must not be classified as being in the Financial Industry according to theIndustry Classification Benchmark (ICB), a product of FTSE International Limited that is used underlicense.
Companies classified as being in the Real Estate Industry, according to the ICB, are eligible unlessorganized as a REIT.

Market capitalization eligibility
There is no minimum or maximum market capitalization criterion, although the security selection
process is based in part on a ranking of companies by market capitalization.

Liquidity eligibility
A security must have a three-month average daily traded value of at least $5 million (USD).

Seasoning eligibility
To be eligible for initial index inclusion, a security must have been listed and available for trading on an
eligible exchange for at least three full calendar months, not including the month of initial listing. For
seasoning purposes, eligible exchanges include Nasdaq (Nasdaq Global Select Market, Nasdaq Global
Market, or Nasdaq Capital Market), NYSE, NYSE American and CBOE BZX. Seasoning eligibility isdetermined as of the constituent selection reference date and includes that month, therefore:•

To be considered for inclusion at the annual December Reconstitution, a security must havebeen listed and available for trading on an eligible exchange no later than the last business dayof August, with seasoning occurring over the months of September, October, and November.

•

To be considered for inclusion as a replacement, a security must be seasoned by the last day ofthe month preceding the replacement event. For example, if a replacement event were to occur
in July, the required seasoning period would include all of April, May, and June.

The trading history of a SPAC prior to its combination with an operating company will not count towards
satisfying the seasoning requirement, regardless of whether the SPAC is determined to be the acquireror the target in the transaction.
Any security that is already a member of the Index, including those added as the result of a spin-off
event, will be exempt from the seasoning requirement.

Float eligibility criteria
A security must have a free float of at least 10%.

2
INDEX METHODOLOGY | © Copyright 2024, Nasdaq, Inc. All Rights Reserved.

Other eligibility criteria
Companies that have filed for bankruptcy, or equivalent protection from creditors, will not be
considered for initial inclusion in the Index.
A company that has entered into a definitive agreement or other arrangement that is expected to makeit ineligible will not be considered for initial inclusion in the Index. Such agreements and arrangements
include, but are not limited to:•

An agreement to be purchased by another entity or to become privately owned.

•

A plan to delist or to transfer to an ineligible exchange.

•

A plan to reorganize as an ineligible security type.

•A decision to liquidate or otherwise permanently cease operations.

CONSTITUENT SELECTION
Constituent selection process
A Reconstitution is conducted on an annual basis, at which time all eligible companies are ranked basedon market capitalization, as of the Reconstitution reference date.
The market capitalization of each company is the combined market capitalization of all eligible shareclasses. For inclusion purposes, the market capitalization of an ADR will normally be determined basedon the depositary shares outstanding, as reported by the depositary banks. This means that a non-US
company represented by an ADR may be considered for inclusion in the Index at less than its full global
market capitalization. Notwithstanding the foregoing, an ADR that serves as a company’s primary global
listing (i.e., the underlying shares are not listed or available for trading elsewhere) will be considered forinclusion based on its full global market capitalization, in the same manner as a direct listing.
Once ranked, companies are selected for index inclusion based on the following order of criteria:
1. The top 75 ranked companies are selected for inclusion in the Index.
2. Any other companies that were members of the Index as of the Reconstitution reference date
and are ranked within the top 100 ranked companies are also selected for inclusion in the Index.
3. If fewer than 100 companies are selected based on the first two criteria, then the remaining
positions will first be filled, in rank order, by companies currently in the Index as of theReconstitution reference date, which are ranked in positions 101-125, as long as they were:a. ranked in the top 100 as of the reference date of the previous Reconstitution, orb. added as a replacement since the previous Reconstitution, orc. added as the result of a spinoff event since the previous Reconstitution.
4. If fewer than 100 companies are selected based on the first three criteria, the remaining
positions will be filled, in rank order, by any companies ranked in the top 100 that were notalready members of the Index as of the Reconstitution reference date.
3
INDEX METHODOLOGY | © Copyright 2024, Nasdaq, Inc. All Rights Reserved.

CONSTITUENT WEIGHTING
Constituent weighting scheme
The Index employs a modified market capitalization weighting scheme.

Constituent weighting process
The quarterly weight process uses company-level weights, which are derived using the price and Total
Shares Outstanding (“TSO”) of each security, as of the Rebalance reference date. For any company
represented by more than one eligible share class, the company weight is the combined weight of theeligible securities representing its share classes. All ADR securities selected for index inclusion will havetheir weights assigned according to the market capitalization of the depositary shares outstanding, asreported by the depositary banks.
Quarterly update
For quarterly rebalances in March, June, and September, Index Shares for each security are adjusted by
the percentage change in that company’s TSO since the previous TSO update. Following thoseadjustments, the resulting company weights are evaluated based on two constraints:•

No company’s weight may exceed 24%.

•

The aggregate weight of the companies whose weights exceed 4.5% may not exceed 48%.

If neither constraint is violated, then no further adjustments are made, and the quarterly constituent
weighting process is complete.
Only in cases where either or both of the constraints above are violated, or when the quarterly
rebalance coincides with the annual Reconstitution (i.e., December), quarterly weight adjustments are
made according to a two-stage adjustment process described below. This process uses the price and
TSO of each security, as of the Rebalance reference date, to derive the initial company-level weights.
Stage 1 adjustment
If no company’s initial weight exceeds 24% of the Index, initial weights are used as Stage 1 weights
without adjustment. Otherwise, initial weights are adjusted such that no company’s weight may exceed
20% of the Index.
Stage 2 adjustment
If the aggregate weight of the companies whose Stage 1 weights exceed 4.5% does not exceed 48%,
Stage 1 weights are used as the final weights. Otherwise, Stage 1 weights are adjusted such that:••

The aggregate weight of the companies whose Stage 1 weights exceeded 4.5% is set to 40%.
Companies with Stage 1 weights below 4.5% may also have their weights adjusted to preserve
the initial rank order of all companies.

If the two-stage process results in a violation of the weighting constraints as previously detailed in the
Quarterly update section, then the process is repeated until the company weights meet the constraints.

4
INDEX METHODOLOGY | © Copyright 2024, Nasdaq, Inc. All Rights Reserved.

Annual weight adjustment
The annual Reconstitution employs an additional two-stage weight adjustment using security-level
constraints. For any company with more than one eligible share class, the securities representing thoseshare classes are considered separately.
Final security weights from the quarterly weight adjustment are used as the initial security weights forthe annual weight adjustment process.
Stage 1 adjustment
If no security’s initial weight exceeds 15%, initial weights are used as Stage 1 weights. Otherwise, initial
weights are adjusted such that no security’s weight may exceed 14% of the Index.
Stage 2 adjustment
If the aggregate weight of the securities with the five largest Stage 1 weights does not exceed 40%,
Stage 1 weights are used as final weights. Otherwise, Stage 1 weights are adjusted such that:••

The aggregate weight of the securities with the five largest Stage 1 weights is set to 38.5%.
In order to preserve the initial rank order of the securities, the final index weight of any security
outside the five largest will be capped at the lesser of 4.4% or the weight of the fifth largest
security.

If the two-stage process results in a violation of the weighting constraints as previously detailed in the
Annual weight adjustment section, then the process is repeated until the security weights meet theconstraints.
For additional information about index weighting, see Nasdaq Index Weight Adjustment Guidelines.

5
INDEX METHODOLOGY | © Copyright 2024, Nasdaq, Inc. All Rights Reserved.

INDEX CALENDAR
Reconstitution & Rebalancing schedule
Reconstitution Frequency
Rebalance Frequency

Annually
Quarterly

Reconstitution Reference Dates

Last trading day of November

Reconstitution Announcement Dates
Reconstitution Effective Dates
Rebalance Reference Dates
Rebalance Announcement Dates
Rebalance Effective Dates

After the close on the second Friday inDecember
At market open on the first trading day following
the third Friday in December
Last trading day of February, May, August, andNovember, respectively
After the close on the second Friday in March,June, September, and December
At market open on the first trading day following
the third Friday in March, June, September, andDecemberSpecial rebalance schedule
A Special Rebalance may be triggered, if either of the following weighting restrictions are violated, basedon end-of-day (EOD) values:•

No company’s weight may exceed 24%.

•

The aggregate weight of the companies whose weights exceed 4.5% may not exceed 48%.

Notice of a Special Rebalance, including the effective date and reference date, will be published inadvance through the normal channels, and will follow the Quarterly update process described in theConstituent Weighting section.

Holiday schedules
The Indexes are calculated Monday through Friday, except on days when the US markets are closed.

Index calculation and dissemination schedule
The Indexes are calculated during the trading day based on the Last Sale Price and are disseminatedonce per second from 09:30:01 to 17:16:00 ET. The closing value of the indexes may change up until
17:15:00 ET due to corrections to the Last Sale Price of the Index Securities.

6
INDEX METHODOLOGY | © Copyright 2024, Nasdaq, Inc. All Rights Reserved.

INDEX MAINTENANCE
Deletion policy
If, at any time, it is determined that an index security is ineligible for continued inclusion, it will be
removed as soon as practicable. Advanced notice of an index security deletion, including the effective
date, will be announced through the normal channels.
Criteria for security removal include, but are not limited to:
•
•
•
•
•
•
•

Delisting or transferring to an ineligible exchange.
Reorganizing as an ineligible security type (e.g., a Real Estate Investment Trust, or “REIT”).
Reclassification as a Financial company, according to the ICB.
Involvement in a merger, acquisition, or other major corporate event that would makecontinued inclusion impossible, impractical, or inappropriate.
Failure to maintain a weight of at least 0.10% for two consecutive month ends. 1
For a security added to the Index as the result of a spin-off event, failure to establish a weight ofat least 0.10% at the end of its second day of regular-way trading as an index member.
Declaring bankruptcy, liquidating, or otherwise permanently ceasing operations.

In circumstances where it is not possible to provide sufficient advanced notification of the removal
event and/or the identity of a replacement, the security being removed may be persisted in the Index at
its last sale price, or at an appropriate “deal price”, until the effective date of the replacementcompany’s entry into the Index. In such cases, a temporary placeholder security may be utilized, and will
be denoted by adding a dollar sign to the beginning and end of the security’s ticker symbol.
Securities that are added to the Index as the result of a spin-off event are normally maintained in the
Index, subject to the removal criteria specified above. Those that are not immediately removed may beremoved at a later date to protect the integrity of the Index, for example, if a spun-off security
demonstrates liquidity characteristics that diverge materially from the security eligibility criteria.

Replacement policy
Other than at the Index Reconstitution, except for spin-offs, additions to the Index occur only when
there is a deletion that requires replacement. The company with the largest market capitalization thatmeets all eligibility criteria as of the prior month-end, and which is not already an index member, will
replace the deleted company.
For companies represented by more than one share class, the company will only be considered deleted
when all its share classes have been removed from the Index. If a security is removed, but otherAny security that fails to maintain a weight of at least 0.10% for two consecutive month-ends will be replaced,subject to the availability of a replacement security with a larger market capitalization. If no such security isavailable, the incumbent security will remain in the Index until a suitable replacement can be identified. If its
weight increases to above 0.10% before a suitable replacement security is designated, then the incumbent security
will not be replaced. This situation will be evaluated at the end of each calendar month.

1

7
INDEX METHODOLOGY | © Copyright 2024, Nasdaq, Inc. All Rights Reserved.

securities representing the same company remain in the Index, a replacement event will not be
triggered.
A security that was added to the Index as the result of a spin-off event, and then removed before thenext Reconstitution, will not be replaced.
For pending deletions set to occur soon after a Reconstitution and/or Rebalance effective date, theremoval may be accelerated to occur in conjunction with the Reconstitution and/or Rebalance event.

Corporate actions
In the periods between scheduled index reconstitution and rebalancing events, individual index
securities may be the subject to a variety of corporate actions and events that require maintenance andadjustments to the Index. The specific treatment of each type of corporate action or event is describedin Nasdaq Corporate Actions and Events Manual – Equities, which is incorporated herein by reference.
In certain cases, corporate actions and events are handled according to the weighting scheme or otherindex construction techniques employed. Wherever alternate methods are described, the Index will
follow the “Market Cap Corporate Action Method.”At the quarterly rebalancing, no changes are made to the Index from the previous month end until thequarterly share change effective date, with the exception of corporate actions with an ex-date.

Index share adjustments
For handling of changes in TSO greater than or equal to 10.0% arising from other corporate events,
please refer to Nasdaq Corporate Actions and Events Manual – Equities.

ADDITIONAL INFORMATION
Announcements
Nasdaq announces Index-related information via the Nasdaq Global Index Watch (GIW) website at
http://indexes.nasdaqomx.com.
For more information on the general Index Announcement procedures, please refer to the Nasdaq
Index Methodology Guide.

Unexpected market closures
For information on Unexpected Market Closures, please refer to the Nasdaq Index Methodology Guide.

Calculation types
For information on the Index calculation types as well as the mathematical approach used to calculate
the Index(es), please refer to the Nasdaq Index Policies & Procedures: Calculation Manual – Equities &Commodities.
8
INDEX METHODOLOGY | © Copyright 2024, Nasdaq, Inc. All Rights Reserved.

Recalculation and restatement policy
For information on the Recalculation and Restatement Policy, please refer to the Nasdaq Index
Recalculation Policy.

Data sources
For information on data sources and the classification of dividends and associated tax rates, please referto the Nasdaq Index Methodology Guide.

Contact information
For any questions regarding an Index, please contact the Nasdaq Index Client Services team atindexservices@nasdaq.com.

Index dissemination
Index values and weightings information are available through Nasdaq Global Index Watch (GIW)
website at https://indexes.nasdaqomx.com/ as well as the Nasdaq Global Index FlexFile Delivery Service(GIFFD) and Global Index Dissemination Services (GIDS). Similar to the GIDS offerings, Genium
Consolidated Feed (GCF) provides real-time Index values and weightings for the Nordic Indexes.
For more detailed information regarding Index Dissemination, see the Nasdaq Index Methodology
Guide.

WebsiteFor further information, please refer to Nasdaq GIW website at https://indexes.nasdaqomx.com/.

FTP and dissemination service
Index values and weightings are available via FTP on the Nasdaq Global Indexes FlexFile Delivery Service(GIFFD). Index values are available via Nasdaq’s Global Index Dissemination Services (GIDS).

GOVERNANCE
All Nasdaq Indexes are managed by the governance committee structure and have transparent
governance, oversight, and accountability procedures for the index determination process. For further
details on the Index Methodology and Governance overlay, refer to the Nasdaq Index Methodology
Guide.

GLOSSARY OF TERMS AS USED IN THIS DOCUMENT
For the glossary of key terms, refer to the Nasdaq Index Methodology Guide.

9
INDEX METHODOLOGY | © Copyright 2024, Nasdaq, Inc. All Rights Reserved.

APPENDIX: METHODOLOGY CHANGE LOG
Effective
Date

Methodology
SectionPrevious

6/24/2024

Security eligibility
criteria:

Eligible security types generally include
American Depositary Receipts (ADRs),
common stocks, ordinary shares, andtracking stocks.

Eligible security types include common
stocks, tracking stocks, and American
Depositary Receipts (“ADRs”) including
New York Registry Shares.

Companies organized as Real Estate
Investment Trusts (“REITs”) are noteligible for index inclusion.

Real Estate Investment Trusts (“REITs”),
Special Purpose Acquisition Companies(“SPACs”), and “when-issued” securities are
not eligible.

Eligible security
types

If the security is a depositary receipt
representing a security of a non-U.S.
issuer, then references to the “issuer”
are references to the underlying
security and the total shares
outstanding is the actual depositaryshares outstanding as reported by thedepositary banks.
6/24/2024

Security eligibility
criteria:
Geographic
eligibility

6/24/2024

Security eligibility
criteria:
Liquidity eligibility

6/24/2024

Security eligibility
criteria:

If the issuer of the security is organizedunder the laws of a jurisdiction outside
the U.S., then such security must havelisted options on a registered options
market in the U.S. or be eligible forlisted-options trading on a registeredoptions market in the U.S.

Updated[Further references to depositary receipts
have been moved to the Constituent
selection process and Constituent
weighting process sections.]--

Each security must have a minimum
average daily trading volume of
200,000 shares (measured over thethree calendar months ending with themonth that includes the Reconstitution
reference date).

A security must have a three-monthaverage daily traded value of at least $5
million (USD).

There is no float eligibility criterion.

A security must have a free float of at least
10%.

A Reconstitution is conducted on anannual basis, at which time all eligible
Issuers, ranked by market
capitalization, are considered for Index
inclusion based on the following orderof criteria.

A Reconstitution is conducted on an annual
basis, at which time all eligible companies
are ranked based on market capitalization,
as of the Reconstitution reference date.

Float eligibility
criteria
6/24/2024

Constituent
selection:
Constituent
selection process

The market capitalization of each company
is the combined market capitalization of alleligible share classes. For inclusion

10
INDEX METHODOLOGY | © Copyright 2024, Nasdaq, Inc. All Rights Reserved.

• The top 75 ranked Issuers will beselected for inclusion in the Index.
• Any other Issuers that were alreadymembers of the Index as of theReconstitution reference date and are
ranked within the top 100 are also
selected for inclusion in the Index.
• In the event that fewer than 100
issuers pass the first two criteria, theremaining positions will first be filled, inrank order, by issuers currently in theindex ranked in positions 101-125 thatwere ranked in the top 100 at theprevious Reconstitution or
replacement-or spin-off-issuers addedsince the previous Reconstitution. In
the event that fewer than 100 issuers
pass the first three criteria, theremaining positions will be filled, inrank order, by any issuers ranked in the
top 100 that were not already membersof the Index as of the Reference Date.

purposes, the market capitalization of an
ADR will normally be determined based on
the depositary shares outstanding, asreported by the depositary banks. Thismeans that a non-US company represented
by an ADR may be considered for inclusionin the Index at less than its full global
market capitalization. Notwithstanding theforegoing, an ADR that serves as acompany’s primary global listing (i.e., theunderlying shares are not listed or available
for trading elsewhere) will be considered
for inclusion based on its full global market
capitalization, in the same manner as adirect listing.
Once ranked, companies are selected forindex inclusion based on the following
order of criteria:
1.

The top 75 ranked companies are
selected for inclusion in the Index.

2.

Any other companies that weremembers of the Index as of theReconstitution reference date and are
ranked within the top 100 ranked
companies are also selected forinclusion in the Index.

3.

If fewer than 100 companies are
selected based on the first two
criteria, then the remaining positions
will first be filled, in rank order, bycompanies currently in the Index as of
the Reconstitution reference date,
which are ranked in positions 101-125,
as long as they were:a. ranked in the top 100 as of thereference date of the previous
Reconstitution, orb. added as a replacement since theprevious Reconstitution, orc. added as the result of a spinoff
event since the previous
Reconstitution.

4.

If fewer than 100 companies are
selected based on the first threecriteria, the remaining positions will
be filled, in rank order, by any
companies ranked in the top 100 that11
INDEX METHODOLOGY | © Copyright 2024, Nasdaq, Inc. All Rights Reserved.

were not already members of theIndex as of the Reconstitution
reference date.
6/24/2024

Constituent
weighting:Constituent
weighting process

Quarterly weight adjustment
NDX’s quarterly weight adjustment
employs a two-stage weight adjustment
scheme according to issuer-level
constraints.
Index Securities’ initial weights are
determined using up to two
calculations of market capitalization:
TSO-derived market capitalization andIndex Share-derived market
capitalization. TSO-derived market
capitalization is defined as a security’s
Last Sale Price times its Total Shares
Outstanding. Index Share-derived
market capitalization is defined as asecurity’s Last Sale Price times its
updated Index Shares as of the priormonth end. Both TSO-derived andIndex Share-derived market
capitalizations can be used to calculate
TSO-derived and Index Share-derived
initial index weights by dividing eachIndex Security’s (TSO- or Index Sharederived) market capitalization by theaggregate (TSO- or Index Share-derived)
market capitalization of all Index
Securities.
When the Rebalance coincides with theReconstitution, only TSO-derived initial
weights are used. When the Rebalancedoes not coincide with theReconstitution, Index Share-derived
initial weights are used when doing so
results in no weight adjustment;
otherwise, TSO-derived weights areused in both stages of the weightadjustment procedure. Issuer weights
are the aggregated weights of theissuers’ respective Index Securities.
Stage 1
If no initial issuer weight exceeds 24%,
initial weights are used as Stage 1
weights; otherwise, initial weights areadjusted to meet the following Stage 1

The quarterly weight process uses
company-level weights, which are derived
using the price and Total Shares
Outstanding (“TSO”) of each security, as of
the Rebalance reference date. For any
company represented by more than one
eligible share class, the company weight isthe combined weight of the eligible
securities representing its share classes. All
ADR securities selected for index inclusion
will have their weights assigned according
to the market capitalization of thedepositary shares outstanding, as reportedby the depositary banks.
Quarterly update
For quarterly rebalances in March, June,and September, Index Shares for eachsecurity are adjusted by the percentagechange in that company’s TSO since theprevious TSO update. Following thoseadjustments, the resulting company
weights are evaluated based on two
constraints:• No company’s weight may exceed 24%.
• The aggregate weight of the companies
whose weights exceed 4.5% may notexceed 48%.
If neither constraint is violated, then no
further adjustments are made, and thequarterly constituent weighting process iscomplete.
Only in cases where either or both of theconstraints above are violated, or when thequarterly rebalance coincides with theannual Reconstitution (i.e., December),quarterly weight adjustments are madeaccording to a two-stage adjustment
process described below. This process uses
the price and TSO of each security, as of
the Rebalance reference date, to derive theinitial company-level weights.
Stage 1 adjustment

12
INDEX METHODOLOGY | © Copyright 2024, Nasdaq, Inc. All Rights Reserved.

constraint, producing the Stage 1
weights:• No issuer weight may exceed 20% of
the index.
Stage 2
If the aggregate weight of the subset ofissuers whose Stage 1 weights exceed
4.5% does not exceed 48%, Stage 1
weights are used as final weights;
otherwise, Stage 1 weights are adjusted
to meet the following Stage 2
constraint, producing the final weights:• The aggregate weight of the subset ofissuers whose Stage 1 weights exceed
4.5% is set to 40%.
Annual weight adjustment
NDX’s annual weight adjustment
employs a two-stage weight adjustment
scheme according to security-level
constraints.

If no company’s initial weight exceeds 24%of the Index, initial weights are used asStage 1 weights without adjustment.
Otherwise, initial weights are adjusted suchthat no company’s weight may exceed 20%of the Index.
Stage 2 adjustment
If the aggregate weight of the companies
whose Stage 1 weights exceed 4.5% does
not exceed 48%, Stage 1 weights are usedas the final weights. Otherwise, Stage 1
weights are adjusted such that:• The aggregate weight of the companies
whose Stage 1 weights exceeded 4.5% is
set to 40%.
• Companies with Stage 1 weights below
4.5% may also have their weights adjusted
to preserve the initial rank order of allcompanies.

Index Securities’ initial weights are
determined via the quarterly weightadjustment procedure.

If the two-stage process results in a
violation of the weighting constraints aspreviously detailed in the Quarterly update
section, then the process is repeated until
the company weights meet the constraints.

Stage 1

Annual weight adjustment

If no initial security weight exceeds
15%, initial weights are used as Stage 1
weights; otherwise, initial weights areadjusted to meet the following Stage 1
constraint, producing the Stage 1
weights:

The annual Reconstitution employs anadditional two-stage weight adjustmentusing security-level constraints. For any
company with more than one eligible shareclass, the securities representing thoseshare classes are considered separately.

• No security weight may exceed 14%of the index.

Final security weights from the quarterly
weight adjustment are used as the initial
security weights for the annual weightadjustment process.

Stage 2
If the aggregate weight of the subset ofIndex Securities with the five largest
market capitalizations is less than 40%,
Stage 1 weights are used as final
weights; otherwise, Stage 1 weights areadjusted to meet the following
constraints, producing the final
weights:• The aggregate weight of the subset ofIndex Securities with the five largest
market capitalizations is set to 38.5%.

Stage 1 adjustment
If no security’s initial weight exceeds 15%,
initial weights are used as Stage 1 weights.
Otherwise, initial weights are adjusted suchthat no security’s weight may exceed 14%of the Index.
Stage 2 adjustment
If the aggregate weight of the securities
with the five largest Stage 1 weights does
not exceed 40%, Stage 1 weights are used

13
INDEX METHODOLOGY | © Copyright 2024, Nasdaq, Inc. All Rights Reserved.

• No security with a market
capitalization outside the largest five
may have a final index weightexceeding the lesser of 4.4% or the finalindex weight of the Index Security
ranked fifth by market capitalization.
For additional information about index
weighting, see Nasdaq Index Weight
Adjustment Guidelines.

as final weights. Otherwise, Stage 1
weights are adjusted such that:• The aggregate weight of the securities
with the five largest Stage 1 weights is set
to 38.5%.
• In order to preserve the initial rank orderof the securities, the final index weight ofany security outside the five largest will becapped at the lesser of 4.4% or the weightof the fifth largest security.
If the two-stage process results in a
violation of the weighting constraints aspreviously detailed in the Annual weightadjustment section, then the process isrepeated until the security weights meetthe constraints.
For additional information about index
weighting, see Nasdaq Index Weight
Adjustment Guidelines.

6/24/2024

Index calendar:
Reconstitution &Rebalancing
schedule:

The Security Eligibility Criteria areapplied using market data as of the endof October and total shares outstanding
as of the end of November.

Last trading day of November.

Reconstitution
Reference Dates
5/28/2021

Security eligibility
criteria:--

A security that was added to the index as
the result of a spin-off event will be exempt
from the seasoning requirement.

In the event that fewer than 100 issuers
pass the first two criteria, the remaining
positions will first be filled, in rankorder, by current index members thatwere in the top 100 at the previous
Reconstitution but are ranked inpositions 101-125 in the current
Reconstitution.

In the event that fewer than 100 issuers
pass the first two criteria, the remaining
positions will first be filled, in rank order,
by issuers currently in the index ranked inpositions 101-125 that were ranked in the
top 100 at the previous Reconstitution or
replacement- or spin-off-issuers addedsince the previous Reconstitution.

--

If a security that was added to the index as
the result of a spin-off event has an
adjusted market capitalization below 0.10%of the aggregate adjusted market
capitalization of the Index at the end of its

Seasoning
eligibility
5/28/2021

Constituent
weighting:Constituent
selection process

5/28/2021

Index
maintenance:
Deletion policy

14
INDEX METHODOLOGY | © Copyright 2024, Nasdaq, Inc. All Rights Reserved.

second day of regular way trading as anindex member.
5/28/2021

Index
maintenance:--

Securities that are added as a result of aspin-off may be deleted as soon aspracticable after being added to the index.
This may occur when Nasdaq determinesthat a security is ineligible for inclusion
because of reasons such as ineligible
exchange, security type, industry, or
adjusted market capitalization. Securities
that are added as a result of a spin-off may
be maintained in the index until a later
date and then removed, for example if aspin-off security has liquidity characteristics
that diverge materially from the security
eligibility criteria and could affect the
integrity of the index.

--

Issuers that are added as a result of a spinoff are not replaced until after they havebeen included in a Reconstitution.

Deletion policy

5/28/2021

Index
maintenance:
Replacement
policy5/28/2021

Index
maintenance:
Corporate action
exceptions

Spin-offs--

If the parent is an Index Security andthere is a when-issued market for the
spinco, the price of the parent isadjusted downward for the value of the
spinco. The value of the spinco is
calculated as the spin-off ratio
multiplied by the when-issued Last
Sales Price (“LSP”) of the spinco. Thereis no adjustment to the Index Shares ofthe parent. This will result in a divisor
adjustment. The spinco is not added tothe index.
If there is no when-issued market forthe spinco, then no price or Index Shareadjustment is made to the Index
Security. The spinco is not added to theindex.

15
INDEX METHODOLOGY | © Copyright 2024, Nasdaq, Inc. All Rights Reserved.

DISCLAIMER
Nasdaq may, from time to time, exercise reasonable discretion as it deems appropriate in order toensure Index integrity, including but not limited to, quantitative inclusion criteria. Nasdaq may also, due
to special circumstances, if deemed essential, apply discretionary adjustments to ensure and maintainthe high quality of the index construction and calculation. Nasdaq does not guarantee that any Index
accurately reflects future market performance.
Neither Nasdaq, Inc., its third-party providers, nor any of their respective affiliates (collectively“Corporations”) make any recommendation to buy or sell any security or any representation about thefinancial condition of any company. Investors should undertake their own due diligence and carefully
evaluate companies before investing. The information contained herein is provided for informationaland educational purposes only, and nothing contained herein should be construed as investment advice,
either on behalf of a particular security or an overall investment strategy. ADVICE FROM A SECURITIESPROFESSIONAL IS STRONGLY ADVISED.

16
INDEX METHODOLOGY | © Copyright 2024, Nasdaq, Inc. All Rights Reserved.