Comment by lokar
6 months ago
if they weighted (fully) by float (perhaps the average float from the trailing 90 days to the re-balance) it would not be as easy to game. The Nasdaq is accounting for float, but not completely.
6 months ago
if they weighted (fully) by float (perhaps the average float from the trailing 90 days to the re-balance) it would not be as easy to game. The Nasdaq is accounting for float, but not completely.
Aren't basically all the huge serious index funds float weighted?
They are, but SpaceX is trying to get rules changed. They want the index to buy at a multiple of the float, so they release say 5% but get bought as if they had released 15% float. They also normally wouldn't be eligible for index inclusion for ~1 year, after showing multiple quarters of good stewardship, etc. They're trying to bypass all that
Yes, the MSCI World and FTSE World that many broad ETFs and funds track are float weighted.
Matt Levine wrote (uh, yesterday?) that the Nasdaq 100 was adding it (not a full linear weighting....) right now to accommodate this scam.
Ok fair, I forgot that QQQ is as big as it is.
Edit: wait, but QQQ is float adjusted?
What are the biggest not-float-adjusted index funds?
5 replies →
Yeah, the OEX is a more serious index for more serious people.