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Essentially toothless because an index fund is going to invest the money either way.
by fricat1ve 9y ago
Essentially toothless because an index fund is going to invest the money either way.
- kspaans 9y agoFalse! SNAP has been explicitly excluded from the S&P500 index for exactly this reason[0]. I'm not sure if "whole market" passive funds would include it or not. At the very least VTI has 0.03% of assets in SNAP[1]. Not much to worry about. 0 - https://uk.reuters.com/article/us-snap-s-p-idUKKBN1AH2RV https://uk.reuters.com/article/us-snap-s-p-idUKKBN1AH2RV 1 - https://www.etfchannel.com/symbol/snap/ https://www.etfchannel.com/symbol/snap/
- MR4D 9y agoYou’re confusing the maintainer of the index’s ( Standard & Poors) with the implementation (Vanguard). If S&P puts a company in, Vanguard will buy the shares. Not doing so could cause problems, including lawsuits.
- kspaans 9y agoYes, and as I said the S&P500 index excludes companies like Snapchat with the founder-has-most-votes trick. I suppose the real issue here is how much money goes into which indices, and which ones exclude companies like these.