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
I don't know about the funds, but it's really about the index. Both for the index funds that use the index, and the active mutual funds and index funds benchmark to that index.
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?
I don't know about the funds, but it's really about the index. Both for the index funds that use the index, and the active mutual funds and index funds benchmark to that index.
4 replies →
Yeah, the OEX is a more serious index for more serious people.