DoorDash Inc. will be joining the Nasdaq 100 Index while Zoom Video Communications will be removed as part of the annual makeover of the tech-heavy benchmark.

Splunk Inc., MongoDB Inc., Roper Technologies Inc., CDW Corp. and Coca-Cola Europacific Partners Plc will also be added to the index. Meanwhile, Align Technology Inc., eBay Inc., Enphase Energy Inc., JD.com Inc. and Lucid Group Inc. will be removed from the Nasdaq 100.

The changes will be effective prior to market open on Monday, December 18.

The Nasdaq 100 is comprised of the largest non-financial companies listed on the Nasdaq stock exchange. There is no minimum market capitalization requirement to be eligible for inclusion, but stocks must have an average daily trading volume of at least 200,000 shares, among other criteria, to be listed.

Joining the index can benefit a company by providing increased equity trading liquidity, a lower cost of capital and heightened visibility from investors. Furthermore, a spot in the coveted Nasdaq 100 boosts a firm’s investor profile and adds to trading liquidity – factors that can potentially propel a company’s stock price higher.

Many large index funds, like the $220 billion Invesco QQQ Trust Series 1 exchange-traded fund, track the Nasdaq 100 and must own all of its members’ shares. And actively managed funds that are benchmarked against it have to buy the stocks as well.

The Nasdaq 100 is up 47 per cent this year as mega-cap technology shares lift the index. By comparison, the S&P 500 Index has gained 20 per cent, while the Dow Jones Industrial Average has risen 9.4 per cent.