I am feeling a little dense, but I can't seem to find what I am looking for. Can someone direct me to a list of stocks and number of shares for QQQ and NQ. For example, if I buy 1000 QQQ, how many shares of each component stock does that represent. If I buy 1 NQ, how many shares of each component stock does that represent. Thanks for any help. PS I am looking for number of shares, not just percentages of each component.
http://www.cboe.com/Common/PageViewer.asp?SEC=4&DIR=OPIndexComp&FILE=nas100.doc Multiply the number of shares times the percentage. Example: Since MSFT is 11.74% of QQQ, then buying 1000 shares of QQQ is like buying 11.7 shares of MSFT. 1 NQ = 800 Shares of QQQ.
Your math is way off. If MSFT splits it would still be 11.74 of QQQ. Would it that still be 11.7 shares? The place to go for Nasdaq 100 components is here: http://www.nasdaqtrader.com/static/tdhome2.stm#Nas100 Price isn't too difficult to understand. Don't ask how they calculate the DRM, I've never found any published algorithm. They publish it and post advance notices of any changes, that's enough. They multiply the DRM of each stock by the current price, that gives them what they call the Market Value of that stock. Them Market Values are summed and that's divided that by the Adjusted Base Period Market Value (which they only change when they need to change DRM's or components, they do this so that the value of ndx doesn't change after the component change.) Then they multiply by 125 (why they have this seperate number I don't know.) Divide the adjusted Base Period Value by Base Value ( 181,277,440/125=1450219.52 If you divide each stocks drm by this number that will give you the total of shares of each stock you'd have to purchase to give you the equivalent of the index (which is 40 qqq.) Microsofts drm is 6,912,702. Divide by 1450219.52, you get 4.76666 shares. Let's make sure this is correct, 4.7666 times the current price of 24.19 is 115.3, the value of the index is 999.28. 115.3/999.28*100=11.54. And that's the market percentage given in the table. You can also do it this way: 115.3=11.54*999.28/100 divide the price of microsoft shares in the index by the price of a single Microsoft share to get the total number of shares. In other words: Market Percentage of a stock (11.54 in case of MSFT) * Value of index / 100 / price of single MSFT = number of MSFT shares to purchase so that you get the equivalent of 40 QQQ (in terms of total $ risked on MSFT share price). Voodoo
I know how they calculated other indices, and I particularly made an effort to understand what percentage of the DOW's given move is attributable to a given stock. But I had no idea about the way to calc the NQ/QQQ/componets. Thanks for the explanation...interesting... nitro