Why You Might Soon Own General Motors in Your Nasdaq-100 ETF

One is a carmaker. The other is a hotel operator. Yet both could soon be members of the Nasdaq-100, an index usually associated with technology.

That means an ETF tracking the Nasdaq-100, such as QQQX.TO, ZNQ.TO, or QQC.TO, also gives you exposure to businesses outside technology. If included, GM and Hilton would sit alongside companies such as Walmart, Linde, Costco, PepsiCo, and Marriott in the Nasdaq-100.

In this article, I will discuss why companies are moving to Nasdaq for index inclusion, and what this means for the exposure you actually own. I will also look at Canadian-listed ETFs that take a more explicit approach to technology.

Companies have some choice over which indices they can qualify for. Moving a stock listing, or in some cases changing the legal domicile of the parent company, can open the door to a different index. Funds that track an index need exposure to the companies it includes. Joining a widely followed index can therefore bring demand from those funds.

The sums involved are substantial. Nasdaq reported more than US$1.7 trillion of exposure linked to the Nasdaq-100 globally as of June 30, 2026. That figure covers a broader range of index-linked products, not just ETFs.

For example, Walmart transferred its listing from the New York Stock Exchange (NYSE) to Nasdaq on December 9, 2025, then joined the Nasdaq-100 on January 20, 2026. Nasdaq-100 trackers consequently needed exposure to Walmart at its index weight.

Linde provides an earlier example. When it announced its move to Nasdaq in 2023, the company explicitly identified index inclusion opportunities as one benefit, alongside cost savings.

More recently, Hilton announced that it is transferring to Nasdaq on November 5, 2026. General Motors expects to follow on November 17. GM's announcement specifically notes eligibility for potential Nasdaq-100 inclusion. Given their current market capitalizations, it is likely that these companies will soon be included in the Nasdaq-100.

The Nasdaq-100 is designed around large non-financial Nasdaq-listed companies. Its methodology does not set a target allocation to technology.

Key requirements include a primary listing on a U.S. Nasdaq-affiliated exchange, a non-financial classification under the Industry Classification Benchmark (ICB), and at least US$5 million in average daily traded value over three months. Trading history and other eligibility tests also apply. Companies do not have to be U.S.-domiciled.

A company does not automatically join just because it is larger than the smallest existing constituent. The annual selection process includes rules that retain some existing members. Since May 2026, the methodology has also included a fast-entry route for qualifying companies that rank within the top 40 existing constituents by full market capitalization.

The effect on technology exposure depends on whether Hilton or GM joins, their entry weights, any removals, and the other changes happening at the same time. GM and Hilton might each be 0.3% to 0.4% of the Nasdaq-100.

A lesson here is that while passive investing offers a convenient way to follow a set of rules, it does not promise that the resulting sector mix will stay the same. An index can continue to follow its methodology while moving further from the exposure you originally had in mind.

There are many technology-focused ETFs in Canada that do not passively track the Nasdaq-100 index, but they also use several different definitions of technology. A technology label does not ensure that two funds own the same businesses.

The Browse page's broad technology and index filters provide a starting point. Here are four examples of different approaches. This list is not an endorsement or a complete survey of the category.

1. TD Global Technology Leaders Index ETF (TEC.TO) tracks the Solactive Global Technology Leaders Index. It covers global mid- and large-cap companies related to technology, including companies in e-commerce and autonomous vehicles. It includes Amazon and Tesla as well as Alphabet and Meta. About 90% of its exposure is in the United States, with most of the remainder in Europe and Japan.
2. Hamilton Champions U.S. Technology Index ETF (QMVP.TO) tracks the Solactive HAMILTON CHAMPIONS U.S. Technology Index. The index ranks eligible U.S. technology companies by gross profit and takes the top 25. It takes a broad view of technology that includes Amazon and Tesla. At each quarterly rebalance, holdings are weighted between 2% and 6%. Compared with a less constrained market-cap-weighted index, this approach can lag when the largest companies dominate a rally.
3. BMO SPDR Technology Select Sector Index ETF (ZXLK.TO) obtains its exposure through the U.S.-listed XLK. Its benchmark is the Technology Select Sector Index, which selects S&P 500 companies classified as Information Technology under GICS. Nasdaq listing is not a requirement. This definition excludes Amazon, Tesla, Alphabet, and Meta.
4. Evolve NASDAQ Technology Index Fund (QQQT.B.TO; CAD-hedged class QQQT.TO) tracks the Nasdaq-100 Technology Sector Adjusted Market-Cap Weighted Index. It keeps only Nasdaq-100 companies classified as Technology under ICB (which includes Alphabet and Meta) and applies a 10% issuer cap at quarterly rebalances. There are 47 holdings as of October 30, 2026. Amazon and Tesla are excluded.