Comment by throwaway2037
10 hours ago
> 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.
Not true, they collectively lose investors if they become less attractive. Probably not an overnight thing, but if people are told that index funds are not attractive anymore then increasingly fewer people will put their money in them vs a hand-picked portfolio.
But also to follow the existing rules set in place to protect passive investors, no?
SpaceX will not "win". Its current investors will win by selling at IPO and in following months at inflated prices to unwilling buyers.