What Happens to Stocks After Joining the Nasdaq-100 (History Has a Clear Answer)

Published July 20, 2026 · Category: Finance

Overview

Joining the Nasdaq-100 represents a big milestone, as it includes the biggest non-financial companies on the Nasdaq. The idea is, once a company joins, it may see its share price advance as managers of funds tracking this index buy shares -- since their funds must mimic the index's performance, they have to make these additions.

The Nasdaq-100 rebalances annually to remove certain members and add new ones, and it also may add members at other points in the year. And this brings me to the reason why the Nasdaq-100 has drawn attention in recent times. The index adjusted its admission rules to allow companies in sooner after their market launches than ever before -- and that resulted in Space Exploration Technologies (NASDAQ: SPCX) joining the Nasdaq-100 earlier this month.

Details

So now, with SpaceX newly in the index, investors may be wondering: What happens to stocks after joining the benchmark? History has a clear answer.

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Source

Originally published at www.fool.com.

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