I don't understand what you wrote. It sounds like you are saying this is a zero-sum game of winners and losers -- SpaceX "wins" and the tracking funds "lose". The ETFs and mutual funds that track these indices don't care what stocks are added or removed. They have one job: To track the index as closely as possible with the lowest cost.
> they’ll adopt some of these proposals that are in the benefit of these companies IPOing at the expense of large funds?
Yes. And I see the argument for it. It’s hard to claim you represent the market if trillions of dollars are outside it for no reason other than newness or capital-structure weirdness. (I agree with excluding unprofitable companies.)
> Do you think it’s more or less likely that they will make the same change as the other benchmarks?
S&P has historically been more conservative. My personal guess is they won't adopt all of the proposals.
But you think they’ll adopt some of these proposals that are in the benefit of these companies IPOing at the expense of large funds?
I don't understand what you wrote. It sounds like you are saying this is a zero-sum game of winners and losers -- SpaceX "wins" and the tracking funds "lose". The ETFs and mutual funds that track these indices don't care what stocks are added or removed. They have one job: To track the index as closely as possible with the lowest cost.
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If the S&P adopt those rules would there be any index fund that is S&P without the new rules?
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> they’ll adopt some of these proposals that are in the benefit of these companies IPOing at the expense of large funds?
Yes. And I see the argument for it. It’s hard to claim you represent the market if trillions of dollars are outside it for no reason other than newness or capital-structure weirdness. (I agree with excluding unprofitable companies.)
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