The Nasdaq Financial-100 (^IXF) is a stock market index operated by Nasdaq consisting of companies that are listed on the Nasdaq stock exchange and that are in the financial services industry, including banking, insurance, mortgages and securities trading.
Components that are in the top 100 of financial companies are allowed to remain in the index.
If a component is between positions 101 to 125, it is given a year to move into the top 100 of eligible stocks; if it cannot meet this standard, the stock is then dropped.
Any component that is not in the top 125 at the time of rebalance is dropped.
All vacancies, including those done whenever a corporate action makes a component ineligible, through acquisition or delisting, are filled by the highest ranked component not in the index.