Comment by sehansen
9 hours ago
Index funds are largely synonymous with passive, long term, buy-and-hold investors. That kind of investors are best served by slower changes to the index, especially since index funds are intended to piggy back on the price discovery that happens in public trading. An IPO price, which is the result of a private negotiation, is exactly what you don't want to buy stocks at if you're a passive, long term investor.
There's lots of different indices with different rules, and lots of different funds to implement these. Pick one that works with your preferences.
I did.
Then the rules were changed.
If it is actually growing company with growing valuation being a year late is not big deal over say 10 or 20 years. It is actually the smart move.
How is that the smart move? It's exactly what OP stated as undesirable for index fund investors. The price discovery of the public markets hasn't taken place yet.