Comment by lmm
17 hours ago
> I can say with a lot of confidence that optics weren’t considered in any of this, possibly to a fault.
How can you possibly know that? Do the people on that committee have a cast-iron tenure guarantee?
17 hours ago
> I can say with a lot of confidence that optics weren’t considered in any of this, possibly to a fault.
How can you possibly know that? Do the people on that committee have a cast-iron tenure guarantee?
> How can you possibly know that?
I know folks who have been on these. They don’t have tenure. But they’re basically emeritus. If S&P wanted to do something that would cause chaos, it would be fucking with those folks because they made a decision that looks bad.
It’s a public benchmark fund that has much of its value based on its decisions being publicly stable and publicly consistent.
Who would want to invest in a benchmark fund with arcane(the literal term as opposed to mundane) rules that were privately decided? If your statement is accurate it sounds like moving out of such a fund would be prudent. I feel like it’s not accurate since they are sticking to their guns and not changing the rules to benefit oligarchs like Musk such as Nasdaq is doing.
> Who would want to invest in a benchmark fund with arcane(the literal term as opposed to mundane) rules that were privately decided?
There are lots of rules-based funds. S&P is transparently committee based. It’s why dual-class new entrants are banned, but Google and Berkshire are grandfathered in.
There is a genuine debate on rules versus committees in the index world. But S&P has stuck to its guns as a bastion of the latter. And it works. Everyone picking the S&P 500 over its competitors chooses that.
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