Comment by tikhonj
12 hours ago
Because they think that a lot of people will want to get in on the historically massive and well-known companies, which would lead to outflows if the index doesn't pick them up fast enough?
12 hours ago
Because they think that a lot of people will want to get in on the historically massive and well-known companies, which would lead to outflows if the index doesn't pick them up fast enough?
It will lead to outflows either way. And I say that as someone who has been an Index fund evangelist for years, strongly considering selling my index funds to build my own collection of companies that I believe in long term.
So why not just stick to the roles we agreed on when buying in?