Investors Find an Easy Way to Trade Nasdaq 100’s ‘Special Rebalance’

Wall Street is finding ways to trade the “special rebalance” of the Nasdaq 100 as the overconcentration of mega-cap firms breaches an upper limit in the tech-heavy gauge. They’re investing in QQQE.

The Direxion NASDAQ-100 Equal Weighted Index Shares saw investors drive $216.3 million into the fund in the latest session for which data is available, the biggest one-day increase since its inception in 2011, data compiled by Bloomberg show. The influx pushed QQQE’s assets higher by 27% to double to $1.01 billion, the highest level ever.

“With big tech stocks up so much this year, QQQE saw big inflows possibly on a leg down in some of those names and also with the Nasdaq composite rebalancing,” Mohit Bajaj, director of ETFs at WallachBeth Capital, said.

Biggest One-Day Inflow | QQQE sees assets cross $1 billion to its highest on record