Facebook To Join QQQ’s Index Dec. 12

December 05, 2012

Facebook, now properly seasoned, gets ready to become part of the Nasdaq-100 Index.

Facebook is joining the Nasdaq-100 Index on Dec. 12 and will then be eligible to become part of ETFs such as the $30 billion PowerShares QQQ Trust (NasdaqGM: QQQ), replacing Infosys, as the India-based consulting and technology firm transfers its listing to the New York Stock Exchange.

Infosys’ departure has opened the way for Facebook, the $30 billion social media giant that first went public in May. Facebook will join not only join the Nasdaq-100 Index, but also the Nasdaq-100 Equal Weighted Index and the Nasdaq-100 Technology Sector Index, Nasdaq said today in a press release. It wasn't immediately clear what Facebook's respective weightings would be in the each of the indexes.

Apart from QQQ, Facebook will become part of other ETFs, including the $2 million Direxion Nasdaq-100 Equal Weighted Index Shares (NYSEArca: QQQE) and the $79 million First Trust Nasdaq-100 Equal Weighted ETF (NYSEArca: QQEW).

Many had hoped that after the Nasdaq OMX Group changed its “seasoning rules” in April for three of its most popular indexes—including the Nasdaq-100 Index—Facebook would be entering Nasdaq’s flagship index by September.

Instead, after bleeding more than half of its value in its first four months as a public company, Facebook was added to the Nasdaq Q-50 Index—the feeder index for the Nasdaq 100—and only now it has found a door to the broader index.

“Our decision to transfer our American Depositary Shares listing to NYSE is motivated by a desire to leverage the NYSE Euronext partnership to empower our investor base, increase access to our stock for European investors and broaden the trading window available for our global investors,” Infosys CEO S.D. Shibulal said in a press release issued by the company.

Infosys ADS will begin trading on the NYSE under the ticker “INFY” on Dec. 12. The firm is also looking to list its shares in Paris and London.


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